Strategic Management BMP6002: M&S Strategic Plan Review & Action Plan

This report provides a comprehensive analysis of Marks and Spencer's strategic management approach. It begins by defining strategic management and then critically assesses the processes used by organizations, particularly Marks and Spencer, to determine their strategies. The report further evaluates the impact of internal and external environmental variations on the organization's strategy, utilizing tools like SWOT and PESTLE analysis to understand the competitive landscape and environmental factors. Finally, it reviews Marks and Spencer's business plan, offering an action plan based on potential changes in either the internal or external environment. The analysis considers the company's vision, mission, and strategic objectives, highlighting the importance of adapting to market dynamics and ensuring sustainable business practices. Desklib offers a wealth of similar reports and solved assignments for students seeking further insights into strategic management.

Business Management
BMP6002 Strategic Management
Strategic Planning
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Contents
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Introduction p
Definition of strategic management p
A critical assessment of the process used by organisations to
determine their strategy p
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy p
A review of an organisation’s strategic plan (Business Plan),
providing an action plan for the organisation on the basis of a
change in either the internal OR external environment. (The
Business Plan is included as an Appendix) p
Conclusion p
References p
Appendix p
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Introduction
Strategic management is said to be the process by which an organization
formulates its objectives and manages to achieve them with the help of
management. The report will highlight the assessment of the process which is used
by chosen organizations to determine their strategy and the chosen company for the
report is Marks and Spencer which is a British multinational company in the field of
retail which was founded by the Marks and Thomas in the year of 1884. The report
will further elaborate on the impact of the internal and external environment on the
strategies of the organization. Moreover, it will present the business plan of the
chosen company that will define the objectives of the company (Carr and Leknes,
2020).
Definition of strategic management
Strategic management is defined as the whole process of evaluation,
planning, and implementation in order to maintain and improve the competitive
advantage. The process of evaluation is related and linked with the assessment of
both external and internal environments. In which planning involves developing the
models of the business so that the direction can be provided to make the
collaborative action. By implementing the strategies, results will be visible in the
profit, market shares, and return on investment for stakeholders. The result will affect
the both external and internal environment of the organization. Strategic
management is said to be the process by which an organization formulates its
objectives and manages to achieve them with the help of management (Elg, Hultman
and Welinder, 2020).
Strategic management is considered to be the important part of the
management in which the management has the main focus on various areas of the
company for example monitoring, planning, analysing and assessing the avaible
resources of the organization with the aim of meeting the goals and objective of the
firm .As the market is changing constantly due to the marketing environment which is
one of the most crucial factor in the strategy of the company which comprise of the
external and internal environment of the company.
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A critical assessment of the process used by
organisations to determine their strategy
A manager plays a crucial role in terms of making and implementing the strategy
in the current business model of the company. The chosen company has a strong
management team and managers who will develop a new set of strategies in the
business in order to achieve the set objectives and goals of the company. The
ultimate objective of the strategic process is to assist the company in the reference
to achieving measurable and realistic goals along with the preparation and building
of an action plan through which the objective will be achieved. The strategic process
is a key process and integral part that helps in terms of strategic planning and the
focus is to increase the potential of the company in terms of attaining the desired set
of goals.
Marks and Spencer should hold a significant value of strategy in order to come up
with a common set of living places that will help in terms of sustainability in offering
services and products in the market. Along with it, Marks and Spencer are focusing
on using and contributing significant steps to contribute more to the environmental
and social cause which will enhance the living standards of people and society.
Marks and Spencer also take care of its customers, employees, and stakeholders.
The process trailed in the strategic plan is to recognize the best set of chances
available for assessing the external and internal environment. Marks and Spencer
has been in the market for a long period of time and they have the ability to adapt to
the environment according to the changes. The strategy of Marks and Spencer
revolves around the SMART objectives that the firm has set for the near future
(Henry, 2021). The best opportunities that are available for the company in terms of
external and internal environment can be grabbed if the company applies a proper
strategical approach in the business model. Marks and Spencer wanted to revolve
their process around the environmental and social issues that are faced by people of
the UK. They came up with a sustainable economic model in their clothing line which
helped in terms of improving the environmental aspects of the UK. The external
environment in which the company deals play a major role in driving the objective of
the firm. Environmental and social aspects deemed to be included with respect to
external environment for the stated company. For the purpose being delivering
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quality of frameworks guides better working of the business firm under complex
business situations. Further, the potential opportunities of the market are converted
by them so that the organization can use the several opportunities in delivering the
desired result in the company (Mariani and Nambisan, 2021). The components of the
strategic planning process are explained below-
Initial Assessment- The first stage of the process is the initial assessment in which
managers must clearly state and identify the vision and mission statements of the
company.
 Situation Analysis- When the company identifies its vision and mission it must
monitor its current situation in the market and it also includes evaluating the
both external and internal environments of the company.
 Strategy Formulation- In order to implement the situation analysis, that can be
done by the creation of long-term objectives. In which long-term objectives are
helpful in enhancing the competitive position of the company in the long run.
 Strategy Implementation- Strategic plans must be implemented for the
purpose of creating a competitive advantage for a company in the market.
Under this, managerial skills play an important role for example
communication is important in the implementation of the strategy as it is
essential for making new strategies must get support all over the organization
for effective implementation of the strategies.
Strategy Monitoring- Monitoring the strategy is a must for the success of the
company. As the external and internal conditions are constantly changing the
managers must make sure and review various factors such as both environments
and their new strengths, weaknesses, opportunities, and threats that can take place
in the future. For dealing with the risk and various circumstances, the management is
required to take corrective actions as soon as possible (Martyanov, 2018).
A critical evaluation of the impact of internal and external
environmental variation on organisational strategy
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SWOT Analysis
Strengths
 It is one of the leading company
in the market and It has many big
partnerships over the years
across the world.
 The company also provides a
wide range of products to the
customers.
Weakness
 The company is mainly relying
on manual operations which is
consumes a lot of time.
 As the chosen company is a
popular brand so, it is required to
protect the brand from fake
users.
Opportunities
 Marks and spencer is a
multinational brand so, it can also
expand to other countries.
 The company can also make use
of its website and implement the
ways to develop it.
Threats
 The company is required to
follow the different political
situations of the countries that
can be dangerous for the
organization.
 It has strong competitors like
Sainsbury, ASDA, Tesco,
Amazon, and many others.
After the analysis of the company, it can be analyzed that the company has a
strong brand image in the market and provides the best quality products to its
customers. Also, the threats are real and the company can adopt new techniques
with the aim of moving forward (Ng and Yee, 2020).
PESTLE Analysis
It is a framework that is used by the company to study the external environment of
the market. It also supports in analyzing the external factors of the market such as
political, economic, social, technological, and many others. Marks and Spencer has
a strong brand image in the market and it has stores all over the world
 Political factors- In the global market, the chosen company has a strong
brand image that has expanded in many other countries too. That is why
the company has to make sure about all the political aspects of the country
with the aim of smooth functioning of the operations of the business. Risk
assessment is said to be the main factor of the political
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 Economic factors- In reference to the chosen company, there are
various economic factors that can create a major impact on the operations
of the business of Marks and Spencer. For example, a rise in the inflation
rate will negatively affect the productivity and profitability of businesses.
There are also other factors too such as inflation rates, foreign exchange
rates and economic growth of the country in which Marks and Spencer are
operating will impact the operations of the country (Phillips and Moutinho,
2018).
 Social Factors- These are the factors that are related to the social
aspects of the environment as the chosen company deals with the clothing
industry and that is why it has to focus on social aspects and the behavior
of the customers with the aim of maintaining their revenue and profitability.
For example, changes in the behavior and taste of the consumer are
factors that directly impact the sales structure and future of Marks and
Spencer.
 Technological factors- Marks and Spencer can also focus on its
innovation such as the technological advancement in the various areas in
order to survive in the market for a longer period of time with the
competitors. Along with it, advancement in the technological field is crucial
as almost every company is bringing changes and new modifications in its
business. With the ultimate goal to perform better in the market. Marks and
Spencer must focus on the implementation of new technology
improvement and advancement in order to cope with the market.
 Legal factors- Every country has a different set of rules and legislation in
that is why the chosen company has to monitor and evaluate the legal
terms of every country for the purpose of smooth functioning of the
operations of the business. The company should value the laws that are
imposed by the government regarding the business in order to get rid of a
penalty and any legal issues.
 Environmental factors- This factor comprises of various range of factors
that are linked to the environment of the country in which the business is
managing and operating. Marks and Spencer should adopt a sustainable
approach in the manufacturing process so that they can sustain the
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environment in the best possible manner. This can be beneficial for both
the people and society.
A review of an organisation’s strategic plan (Business
Plan), providing an action plan for the organisation on the
basis of a change in either the internal OR external
environment. (The Business Plan is included as an
Appendix)
A business plan is the road map that helps the business to have direction and better
clarity in the decision-making process. A good business plan supports the
organization to be well aware of the changes in political trends and their impact on
the business at both the national and international level (Slater and Demangeot,
2021).
Vision Statement- The vision statement of Marks and Spencer is to provide a
standard against which the performance of competitors can be measured. The
company is looking forward to enhancing the customer experience with the aim of
taking care of the environment and community (Prabavathi and Vanathi, 2019).
Mission statement- The mission statement of Mark and spencer is to build on
quality, service, innovation, and trust with the customers. The mission of the
company is to provide the best quality products to the customers which are easily
accessible to every person with the help of a range of products which are offered by
the company.
Core values- The core value of the company is to assure service, quality, quality,
innovation, and trust for the customers (Varley and et. al., 2018).
Long term goals-
 Long term goal of the company is to be the leading company in the retail
sector in order to keep the customers engaged in sustainable living.
 Another goal is to be the leading company in the fair practices with
transforming 1000 communities
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Yearly objective-
 The yearly objective of the company is to increase the profit by two percent in
the coming 2 years.
 The company is also looking forward to doing packaging all the products in
such a way that they can be further used and recycled by the customers in
order to save the environment.
 The short-term objective of the company is to increase sales by four percent
in the coming 2 years.
Action plan- A action plan is defined as the detailed plan which allows the company
to achieve desired goals. It consists of five sets of characteristics through which the
goal can be accomplished. In which the objectives should be specific, measurable,
attainable, relevant, and time-based. This will help in terms of defining the right
objectives for the company which will be clear and easy. The objectives that are
made by Marks and Spencer in the action plan should be able to fulfill the SMART
criteria for the attainment of objectives. The budget plan for Marks and Spencer is
attached in the Appendix (Salmon and Tordjman, 2020).
Conclusion
It can be concluded from the above report that Strategic management is a
powerful process that has a stepwise collection of various activities which are
arranged in sequential order. Internal and external environments also play a major
role in terms of affecting the business structure and functioning. The organization
must implement and adopt such techniques so that it can manage and deal with both
micro and macro environments with the aim of increasing the profit of the business.
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References
Carr, C. and Leknes, H., 2020. Global Configuration Analysis: The Case of Retail
Fashion. In Global Oligopoly (pp. 80-105). Routledge.
Elg, U., Hultman, J. and Welinder, A., 2020. Competing corporate sustainability
perceptions in a global retail organization. International Journal of Retail &
Distribution Management.
Henry, A., 2021. Understanding strategic management. Oxford University Press.
Mariani, M.M. and Nambisan, S., 2021. Innovation analytics and digital innovation
experimentation: the rise of research-driven online review platforms.
Technological Forecasting and Social Change, 172, p.121009.
Martyanov, A., 2018. Losing military supremacy: The myopia of American strategic
planning. SCB Distributors.
Ng, K.H. and Yee, R.W., 2020. Technological affordance discovery in enterprise
social media success. Industrial Management & Data Systems.
Phillips, P. and Moutinho, L., 2018. Contemporary issues in strategic management.
Routledge.
Prabavathi, V. and Vanathi, R., 2019. Role of Supply Chain Management in Indian
Textile Industry and the key issues faced by the Textile Supply Chain.
Journal of Contemporary Research in Management, 14(2).
Salmon, W.J. and Tordjman, A., 2020. The internationalisation of retailing. The
Retailing Reader, p.364.
Slater, S. and Demangeot, C., 2021. Marketer acculturation to diversity needs: The
case of modest fashion across two multicultural contexts. Journal of
Business Research, 134, pp.702-715.
Varley, R., Roncha, A., Radclyffe-Thomas, N. and Gee, L., 2018. Fashion
management: A strategic approach. Macmillan International Higher
Education.
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Appendix: The Business Plan
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