Mark and Spencer's Strategic Management: A Comprehensive Report

This report provides a detailed analysis of Mark and Spencer's business strategy, focusing on the impact of the macro environment, internal capabilities, and competitive forces. It employs frameworks such as PESTLE analysis, stakeholder analysis, VRIO analysis, and McKinsey 7S model to evaluate the company's strategic management decisions. The report assesses the political, economic, social, technological, legal, and environmental factors affecting Mark and Spencer, along with an examination of their internal strengths and weaknesses. Porter's five forces model is applied to understand the competitive landscape and devise strategies for improving market position. Furthermore, the report explores theories and models for implementing a strategic plan, culminating in a strategic management plan with tangible objectives and tactical priorities. It critiques and interprets data to produce valid strategic directions and actions for Mark and Spencer.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1Frameworks to analyse the impact and influence of macro environment and strategies...4
M1 Analyse the macro environment to determine and infor strategic management decisions:. 6
TASK 2............................................................................................................................................7
P2 Internal environment and capabilities of an organisation.................................................7
M2 Analyse the internal environment to asses the streghnts and weaknesses of an
organisation's internal capabilities:........................................................................................9
TASK 3..........................................................................................................................................10
P3 Porter’s five force model.................................................................................................10
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes:........................................................................................................................11
TASK 4..........................................................................................................................................12
P4 Theories and models to implement a strategic plan........................................................12
M4 Produce strategic management plan that has tangible and tactical strategic priorities and
objectives:.............................................................................................................................13
D1: Critique and interpret information and data, applying environmental and competitive
analysis to produce a set of valid strategic directions objectives and tactical actions:........15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy is defined as a long term plan that is implemented for a company in
order to reach desired goals and objectives. In context with strategic management, it is involved
with the preparation and execution of all targets and certain initiatives on the behalf of
stakeholders. As the competition gets increased, the importance of business strategy got more
enhanced and led to the increment in the types of business strategies. In context with strategic
management plan, it refers to a document which is used to interact in concern with setting up
priorities, strengthen operations and assuring that all stakeholders are working towards common
goals (Ahmad and Krishnan, 2017). The report is based on Mark and Spencer which is a British
multinational retailer with headquarters in London. The company specialises in providing
clothing, food or home products. The report involves impact and influence of the macro
environment on organisation, analysation of internal environment and capabilities, Porter's five
forces model and usage of theories and models and interpretation of strategic planning.
TASK 1
P1Frameworks to analyse the impact and influence of macro environment and strategies
Mark and Spencer is a British multinational corporation which has around 900 stores
within entire United Kingdom and has a turnover of around 41 billion. The company is organised
within three divisions which are home care; clothing and food products.
 Vision: - The vision of Mark and Spencer has always been to provide a standard against
which their competitors may be measured and to take care of entire working environment
for employees.
 Mission: - The mission of Mark and Spencer is to make efficient and desired quality
accessible to everyone throughout the range of products.
 Core values: - The values are associated with quality, innovation and trust.
PESTLE Analysis: - It refers to a model of macro-environmental elements which are
used in the entire scanning element of strategic management. In context with the chosen
organisation, it is described below: -
 Political factors: - These factors are involved with the relation between both government
and business organisation (Alberti and Garrido, 2017). There are several political factors
like security control, legislation around employment, political stability and many more. In

context with Mark and Spencer, the government set up certain regulations for their
organisation like in the form of health and safety British standards and risk control. The
company always believed that it is significant for them to work closely with the
government and communicate with them in order to protect all their legitimate interests.
The two political factors which created on impact on their company was taxes and
political stability. If government increases taxes at a point of time, then the prices of
company products also get increased which created a negative impact on their business.
 Economic factors: - It refers to those factors which create an impact on the economy and
includes wages, interest rates and certain governmental activities also. In context with
Mark and Spencer, they made a strategy to provide best quality products to all the
customers but company got affected by financial crisis due to which they faced a
decrease in the demand for all their high quality goods and the main reason behind this
was the low income of consumers.
 Social factors: - These factors are involved with cultural standards, career attitudes,
population growth rates and many more. These factors are helpful for business
organisations to make better and efficient plans concerned with marketing analytics.
Consumer purchases are always influenced by social and psychological changes taking
place in the market. In present scenario, maximum number of people prefers to do the
payment with the help of credit cards. So, Mark and Spencer took the advantage and
allowed all their customers to do the payment from credit cards.
 Technological factors: - It refers to the variables which are in relation with the
development of technology. These factors includes internet connectivity, automation and
so on. In present scenario, it is very significant for a business organisation to adopt new
technologies in order to attract maximum number of customers (Buller and McEvoy,
2016). In context with Mark and Spencer, they introduced new and multiple check out
stores and also established an e-commerce store which is considered effective within
entire United Kingdom.
 Legal factors: - It refers to the legal forces which describes about what a business can do
or cannot do. These factors are involved with employment laws, intellectual property
laws, civil rights laws and many more. In relation with Mark and Spencer, they have been
involved with many legal disputes which became difficult for them to maintain their

brand image for long period of time. One of the legal factors which affected company
was changes in Britain trade laws after Brexit took place. In United Kingdom,
legislations gets changed on continuous basis on the basis of which Mark and Spencer
implements several training sessions on areas like health and safety laws which gets
updated with all the current laws and legislations.
 Environmental factors: - In context with these factors, they are involved with ecological
aspects like climate, weather, pollutants and many more. In context with Mark and
Spencer, they have always concerned about environmental effects which might affect
their brand in future (Gattorna 2017). There were several issues regarding climatic
conditions so the company established a new green policy in order to have a positive
impact on entire well-being and communities.
Stakeholder analysis: -
The stakeholders of a business organisation are the individuals who have an interest in
the company outcomes from all commercial activities. It refers to a process of identification of
all stakeholders of a company in accordance with their interests. In context with Mark and
Spencer, it is described below: -
 High power, high interest: - In context with section, all stakeholders has the capability to
influence decision making procedure and take interest in entire business activities of the
organisation. In accordance with Mark and Spencer, their biggest shareholders are
Parametric Portfolio associates and Cap financial partners (Hajiha, 2017). Besides this, it
also comes under the category of public investment fund.
 High power, low interest: - In this section, target customer base is included as individuals
carry on high power because the profit of company completely depends on them. On the
other hand
M1 Analyse the macro environment to determine and infor strategic management decisions:
In context to Marks and Spencer, firm is functioning its working with many competitors of same
product segments. By analysing the external factors of the company which is PESTLE analysis
its strengthens and weaknesses has been analysed. After evaluating all the factors, political,
legal, social and technological factors can be the strengthens of the company but economic and
environmental factors can be a threat to the company so in order to smooth working of the
business company should maintain their strength and eliminates threats by working on it.

Moreover, it assist in achieving the perks from the value of external factors where Marks &
Spencer, is a reputed brand by providing quality products like home, food and clothing which
makes it special and different from its competitors. Company is generating more and more
revenues as company is focuses on its target marketplace and company can also minimise its
weaknesses by executing different strategies which can support them. It has been critically
evaluated that M&S Company faces the issues of rumour among customer and in the market. It
is found that the company is criticized for its products and services that it specialises only for
young ones but not the older age ones. Somehow, company try to overcome the issue but it has
impacted the sell of the business. Thus, social factor is also a threat to the company.
TASK 2
P2 Internal environment and capabilities of an organisation
Internal capabilities and talents of a business organisation plays a very important role in
the overall development of a company. It is essential that business strategy needs to be efficiently
get implemented after considering all the factors as they help in acquiring a effective position
and receiving a stable growth rate for a long period of time. In context with Mark and Spencer,
McKinsey 7 S model and VRIO analysis has been used.
VRIO Analysis: -
In accordance with this analysis, the information related to a company about all their
internal resources is provided and in a detailed way. There are several resources which are
divided on the basis of value, rarity, ability to exploit all resources and to get imitated in
accordance with highest capability. In context with Mark and Spencer, it is defined below: -
Resources Valuable Rare Inimitable Organized
Brand Value ✔
Technological
Infrastructure
✔ ✔
Market Presence ✔ ✔ ✔
HR ✔ ✔ ✔ ✔

 Valuable: - Mark and Spencer financial resources as well as its food products are highly
valuable which helped the company in enhancing their brand image. In context with
financial resources, it helped the company to make investment into all external
opportunities that might take place (Keung and Shen, 2017). The reason behind valuable
food products is that they are highly differentiated. Besides this, their distribution
network is also valuable which became helpful for them to reach out to maximum
number of customers. With the help of this, it became easy for the company to increase
their revenue and promotion in a more efficient way.
 Rare: - The employees working in Mark and Spencer are considered as a rare resources
because they are highly skilled and talented which doesn't take place in other
organisations. At the same point of time, the patents of their organisation are also
identified as a rare resource as they are not easily possessed by competitors.
 Imitable: - The food products of Mark and Spencer could be imitated because it doesn't
involve much cost and can be acquired from competitors if they do effective amount of
investment (Macchi, Savino and Roda, 2020). Besides this, the company employees
could also be imitated because other business organisations can also train their workers
and enhance their skills.
 Organisation: - In context with the chosen company, their distribution network is
organised enough as they uses their efficient network to reach out to all maximum
number of consumers. It helped the company in receiving leading position in entire
industry even while facing large competition.
McKinsey 7S Model: -
It refers to an organisational tool that assess the well-being and success of business
organisation in terms of their future aspects. In context with chosen company, it is described
below: -
 Strategy: - In context with Mark and Spencer, they use competitive pricing strategy for its
product portfolio (Krueger and et. al., 2021). This helps the company to enhance their
profits and achieve progression. Besides this, their flexibility provided the company to
achieve benefits with respect to all consumer patterns that gets modified globally.
 Structure: - Mark and Spencer follows organisational hierarchy which is entirely
supported by learning organisations. By following this structure, it help a company to

make quick decisions and enhance the organisational commitment within all the
employees.
 Systems: - In context of chosen organisation, they have well-defined system to assure that
the business organisation are being managed in an effective way and no kind of conflicts
takes place. Mark and Spencer analyses all their systems with the help of designed
control which is helpful for the company to provide proper services.
 Skills: - In context with the chosen company, employees are provided continuous training
that enhance their skills and lead to growth and development. All workers are recruited
based on their qualifications.
 Staff: - Mark and Spencer has adequate number of workers across all its global operations
and they are hired both internally as well as on external basis. All employees are provided
with efficient in-house training through which they get to know about the company and
all its values.
 Style: - In terms of selected company, they has a participative leadership style through
which they are able to get involved all their employees in the process of decision making
(Ransbotham and et.al, 2017). Besides this, a company is also able to increase their
workers motivation level and their commitment.
 Shared values: - In context with Mark and Spencer, their shared values are creativity,
quality, accountability through which they assure that all their activities are being
performed with high standards.
M2 Analyse the internal environment to asses the streghnts and weaknesses of an organisation's
internal capabilities:
After the evaluation of the internal environment of the organisation, it has been evaluated that
Marks and Spencer stay with in its bonding with the consumers and by providing high quality
products and services. The benefits of its strengths is that it helps Marks and Spencer, in getting
new consumer base and holding the existing ones by providing best products and services.
Moreover, it has critically represent that to maintain its strength company need to focus on
spending on technological, human and financial resources which is a major threat related with its
strengths. It has been evaluated that high dependency on the market of the UK which has lead to
appear as one of the biggest weakness of Marks and Spencer. The perk of this weakness is that it
is giving the organisation with a suitable opportunity to become more skilled in a specific market

segment and improve the effectual of its functions into its market share. It is important that
company must strategise as per the preferences and tastes of consumers. They should conduct a
deep research and analysis regarding the demands and choices of customers so that the company
can better serve the customers. While employees are the asset of M&S Company as they are
highly trained and developed in their specialised areas and skills which makes company to
deliver effective results and make profit for the business growth.
TASK 3
P3 Porter’s five force model
It is defined as a strategical framework that help an organisation to understand the
competitiveness level prevailing at marketplace. In addition to this, it describes why different
industries are able to survive at various levels of profitability. The higher authorities of Marks
and Spencer make adopted porter’s five force model in order to identify level of competition and
to develop strategies for attaining competitive edge at marketplace. This model involves five
aspects which are as follows:
 Threat of new entrants: It is analysed that the threat of new entrants for Marks and
Spencer is low to moderate as there is a high capital requirement to enter in the market in
which company deals. In addition to this, the level of economies of scale and cost
efficiencies that company has is difficult to gain by new player (Drobyazko and et. al.,
2019). It is researched that Amazon Fresh is coming in the UK market which is becoming
a threat of new entrant for the Marks and Spencer. Hence, the M&S needs to ensure its
quality on the goods and services and also indulge various offers in the stores so that
customer remain attractive by the company.
 Threat of substitutes: The threat of substitute for the company is moderate as there are
lot of competitors who offer the same product at less price. It is important for Marks and
Spencer to bring continuous innovation with in the offerings and process in order to
remain competitive and to fulfil requirements of customer as well. Moreover, it is
determined that food business of company is on attack of large stores such as Asda,
Sainsbury, Tesco and so on. This, it is vital for higher authorities of Marks and Spencer
to emphasis on offering its food line as a manner that help to attain competitive edge over
rivals.

 Bargaining power of buyers: Customers are the king of market and to retain them is
important for gaining growth and success in the industry. This threat of Marks and
Spencer is high as it offer the products which is similar to its competitors. In addition to
this, the switching cost of customers is also low and alternatives is easily available to
them (Putra and et. al., 2019). It is vital for Marks and Spencer to emphasis on customer
relationship that requires to be effective and vigilant. It help in retaining customers for
longer time period and also assist to minimise such threat as well.
 Bargaining power of suppliers: Marks and Spencer is a huge listed and renowned
company that have massive number of suppliers which shows that bargaining power of
suppliers is low for the company. In addition to this, it is analysed that company is not
highly dependent on suppliers as compare to others as it sells own branded goods and
services.
 Competitive rivalry: It is determined that industry in which Marks and Spencer deals
consist of high and strong competition, which state that Marks and Spencer has high
competitive rivalry. There are various competitors of respective organisation such as
Tesco, Asda and many more which provide similar offerings. For this, it is significant for
Marks and Spencer to offer quality products and service, bring innovation and ensure
customer service timely as it help in fighting with rivals in an effective and appropriate
manner.
M3 Devise appropriate strategies to improve competitive edge and market position based on the
outcomes:
To enhance the market position and competitive edge of the organisation, it can be referred that
creation and operation is one of the best way which can adopt by the Marks and Spencer, after
analysing porter five forces, it has been understood that increasing new competition can be the
weakness and threat for the company and to overcome with these threats, Marks and Spencer can
work on implementing on its products and services. The firm can try to focus on evaluating and
supplying creative services and products which has no other competition in the market. This
strategy is very efficacious for the company as it will give the organisation a possibility to
enhance advantage of competition over its rival such as Amazon Fresh. Moreover, it plays an
essential role in helping the company in getting new consumers and keeping hold on to the
consumers which are already loyal to the brand. Hence the brand can work on giving the services

and products at the cheapest price in the sector by minimising its cost and margins. Moreover, it
is recommended to create differentiation in their products and services so that customers do not
get bored with the indulged services. It is seen that when customers finds new offers and some
kind of uniqueness at the same time, they tend to remain stick with the company and less try
products from other companies in the similar market.
TASK 4
P4 Theories and models to implement a strategic plan
Porter's generic strategies:- In terms of these generic strategies, they defines how an
organisation pursues competitive advantage within its market scope. It is involved with three
strategies which are cost leadership, differentiation and focus. In context with chosen company,
it is described below: -
 Cost leadership: - It refers to a strategy which mainly focus on decreasing the cost of
products and services in order to become more profitable and could add the value of
shareholders. In context with selected company, they used this strategy by targeting
middle class people and expanding the market share. Besides this, they also offer several
coupons in order to achieve all targets and increment of brand popularity.
 Differentiation: - It accordance with this strategy, the business focuses on distinguishing
their products from competitors (Syaniardi and Shihab, 2016). In context with chosen
company, they also positioned their products in such a way that they look unique from
other business organisations. So, the company used the way effective advertisements,
huge amount of investment in order to look different.
 Focus: - This strategy is related to satisfy all target customers who has different kinds of
needs and expectations. All business organisations can use this strategy by decreasing
costs or by creating differentiated products. In relation to Mark and Spencer, they also
focused on both offering unique products and low price. So, they constant changes in the
product designs in order to build up satisfaction level of customers and also increasing
the value for money.
Bowman's strategic clock: -