Strategic Management Report: Analysis of Marks and Spencer (SIM336)

This report provides a detailed strategic management analysis of Marks and Spencer, a British multinational retailer. It begins with an introduction to strategic management and its importance in achieving organizational goals. The main analysis includes a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting the company. A SWOT analysis evaluates Marks and Spencer's strengths, weaknesses, opportunities, and threats. The report also applies Porter’s five forces and generic model to assess the competitive landscape and strategic positioning of the company within the retail industry. The conclusion summarizes the key findings and implications for Marks and Spencer's strategic direction. The report highlights the challenges and opportunities faced by the company, such as competition, technological advancements, and changing consumer preferences. It also considers the impact of external factors like Brexit and free trade policies. Overall, the analysis provides a comprehensive overview of Marks and Spencer's strategic management approach and its ability to adapt to a dynamic business environment.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN ANALYSIS..........................................................................................................................4
PESTLE analysis.........................................................................................................................4
SWOT Analysis...........................................................................................................................6
Porter’s five forces.......................................................................................................................6
Porter’s generic model.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management describes the management of the company and arrangement of the
prominent resources that are useful in achieving desired goals and objectives. Strategic
management consider the overall settings of the objectives determination of competitive
environment identification of internal factors analysing Strategies and making sure that
management perform and implement all the strategies across the organisation. Moreover it
includes the suitable formulation and implementation of the suitable goals and also takes
initiatives for the betterment and development of the company (Ansoff and et. al., 2018). At also
consider the managerial theories and practice that make suitable difference among the strategic
management and operational management considering the enhancement of efficiency and
controlling the prominent cost within the boundaries in order to set the strategy for the company.
Along with this in order to formulate the strategies the top level management always analyse
the overall environment before taking their decision in order to compete with other companies.
In terms of this Marks and Spencer is considered which is the British multinational retailer
headquarters in London and specialised in selling clothes food and home products. Moreover
company has approximately 959 stores across the UK including around 615 only deals in food
products. Therefore the report is going to cover the comparison about the various theories and
practice my reflective the prominent issues and examine the success and failure of the company.
MAIN ANALYSIS
PESTLE analysis
PESTLE analysis is a Framework which is useful in describing the external factors and
tactics by considering the environmental scanning and its related components for the strategic
management. It is the part of external analysis which is useful in organising the strategic analysis
by conducting prominent market research (Rothaermel, 2016). It is considered as the strategic
tool which is useful in understanding the growth of market and decline by considering the
business position potential and operational directions. It includes six prominent elements that are
evaluated as under:
Political: This factor includes the analysis and impact of government decisions and political
stability on the company. By considering this the positive aspect of current politics describes the
free trade that is established among various countries in order to develop healthy relations with

them. In terms of Marks and Spencer they prominently operate in UK and also deal in other
countries as well in order to earn suitable benefit and profit. Free trade allows company to import
its product for sale in their stores at cheaper price in comparison to other as it maintains the
healthy profit margin (Schilling and Shankar, 2019). Along with this free trade policies are only
implemented in few countries especially for the European brands after the decision of brexit.
Moreover the decision of United Kingdom leave the European Union usually impact Marks and
Spencer and its operations specifically in terms of trade regulations and tariffs as because of this
possible outcomes are less than the ideal for the retailers of UK (Marks and Spencer PESTLE
Analysis, 2020).
Economical: It describe the various economic factors including inflation rate interest
fluctuation cost and many more. In relation with this price has always become the biggest factor
within the Retail Industry as by considering the past two decades that has suitable budget
retailers within the United Kingdom. In terms of this UK has a prominent new local retailer in
terms of clothing industry that gives tough competition to Marks and Spencer in terms of price
and cost as they provide good quality products in terms of low prices (Marks and Spencer
PESTLE Analysis, 2020). Despite from this these new competitors Steel the market share and
customers of Marks and Spencer and also encourage customers to enjoy the same products at the
lower prices that impact the running and functioning of company.
Social: It describes the social cultural factors of the company by considering the values
culture attitude and preferences of customers (Ginter, Duncan and Swayne, 2018). In terms of
Marks and Spencer it has huge name within the market and also has great reputation among the
youth. In terms of this the new and trendy retail chains arrive each and every year within the UK
that become threat for the functioning and reputation of Marks and Spencer and makes it less
trendy among its customers specially among the youth. Moreover Marks and Spencer is also
ready to provide it Services within the food sector that increases the consumption of ready meals.
Technological: This factor includes the automation Technology research and
development and many more other factors that are become trending within the retail sector. In
relation with this the self checkout is the trendy technology that is adopted by many retailers and
Marks and Spencer as well. This technology is designed to help the companies and retailers to
save money that are spent on the cashier by offering the customers a self checkout experience
that is faster despite from cashier (Marks and Spencer PESTLE Analysis, 2020). Moreover

company also deals in online shopping that prominently develop the strong E-Commerce
presence in terms of clothing and food stuff as the online shopping enhances the overall
experience and deliver the food item to the prominent customers and save their time and cost.
Legal: It describe the legal laws and registrations that should be followed by Marks and
Spencer in order to run its business and also keep up to date with the current legislations and
issues considering the health and safety to make sure the legal protection for them (Hitt and
Duane Ireland, 2017). In relation with this company suitability adopt and implement the fair
packaging and labeling and its product to develop the knowledge of their customers. As
packaging helps the company and its customers by describing the prominent ingredients that are
helpful for the optimum utilization.
Environmental: It describes the environmental conditions and considering factors that
maintain the image of company. In terms of this Marks and Spencer pledged to become the most
sustainable retailer among the prominent location and also initiate suitable plans and policies to
make the environment clean cream and free from carbon emission. In terms of this company
develop suitable plan regarding the green policy named “plan A” to control and eliminate the
carbon emission that describe the zero waste to landfill ethical trading health promoting
businesses and many more (Marks and Spencer PESTLE Analysis, 2020).
SWOT Analysis
Strengths: Marks and Spencer has prominent strengths that put emphasis on the brand value
of the company different products and services. The company has high brand value and because
of this many customers prefer to go to Marks and Spencer regarding their whole shopping along
with this company has wide variety of products that help the customers to select the best for
them because it deals in clothing, home ware and food products as well (Meyer, Neck and
Meeks, 2017). Despite from this Marks and Spencer also spend it’s time and money both in order
to analyse the needs and requirements of their customers and also give more than 3 years on the
testing of its product before launching it within the market. Moreover it has High Street history
as company has about 900 stores across the world in which 600 within the UK and around 300 in
other countries (SWOT analysis of Marks & Spencer, 2020).
Weaknesses: In respect of this Marks and Spencer has a prominent drawback as it has bad
publicity feature that goes out of fashion and even not in the trend. Despite from this company
has wide range of products and different brands that give the wrong assumption towards the

people and it leads to make the business low. According to this the management of the Marks
and Spencer need to develop new prominent Strategies and also focus on the sales by
considering the young people (SWOT analysis of Marks & Spencer, 2020). Along with this in
order to overcome with the current issues the management of Marks and Spencer need to come
up with the new strategies in order to attract all age groups that lead to develop the reputation of
company within the market. Apart from this Marks and Spencer has backdrop which describes
that company use old technique instead of advanced technology that impacts the time and money
factor of its customers. In respect of this, Marks and Spencer need to focus on the new
technologies in order to increase its efficiency of the work.
Opportunities: Marks and Spencer has the prominent opportunity regarding the
internationalisation that leads to increase its Global presence across the world by opening its
number of stores in various countries (Bryce, 2017). Along with this Marks and Spencer has
already reached in the various countries considering India, Russia, Indonesia and many more.
Along with this other countries like Brazil and Poland can become the biggest opportunity for
the company regarding its expansion. In addition to this, company also has good online presence
that does not have other big retail company within the UK. Moreover, company currently reveal
its plan to move to the third of the clothing and home sale online at the digital first future.
Threats: Marks and Spencer face increased and tough competition with the market that
become the biggest threat for the company as it start losing its scope in the market. Moreover
increased competition in the retail sector become the biggest stress and tension for the other
retailers including Asda, Sainsbury’s Tesco and many more. Along with this company can also
face prominent law suits in various Market by considering their different laws and legislation
that continuously fluctuate considering the product standards in those markets (SWOT analysis of
Marks & Spencer, 2020). Moreover growing strength of the local distributor also becomes a
threat for the Marks and Spencer because the local retailers provide good quality of product at
cheap prices.
Therefore by considering the above discussion it is analyse that SWOT analysis is helpful
for the company in order to analyse the internal factors and elements that can become future
opportunities for the company regarding it expansion and also helps in analysing the present risk
factor and leads to develop prominent strategies in order to eliminate risk factor.

Porter’s five forces
This model is useful in describing the competitive forces that are present within the
business environment by considering various competitive forces. It is considered as the Holistic
strategy framework that helps in developing and taking strategic decisions by considering the
present competition. It is also useful in exploring the profitable opportunities by considering the
customer service sector. Few prominent forces are evaluated below:
Threats of new entrants: It is quite difficult for the Marks and Spencer to have new
entrants in the clothing industry because it requires use investment to take entry and maintenance
within the clothing market. Despite from this Marks and Spencer has lot of experience in this
sector for the long time and also has lights market area and distribution channels that can become
the cost advantage on the new entrants. Moreover the new entrants do not have suitable
knowledge in this sector in order to expand their business (Trigeorgis and Reuer, 2017).
Therefore the threat of new entrant is quite low because of the requirement of fuse capital and
confidence of customers that describe the significant barriers in order to take entry in the market
as it also consider the sensitive reputation of the company. Along with this Marks and Spencer

take prominent advantage of the economies of scale within the country in order to fight against
the new entrants. Along with this company also focus on innovation to differentiate it product
from the new arrivals and also spend more money on the marketing to develop strong brand
identification. Therefore it will help in retaining the customers for the longer period of time.
Threats of substitutes: Substitution of product leads to reduce the demand of particular
product among the customers because of the substitute and alternatives customers are capable to
switch to the alternative of the product. Moreover within the retail sector of clothes there are
number of retailers that operate within the foreign imports by eliminating their prices and
offering good quality product (Engert, Rauter and Baumgartner, 2016). In this context customers
are quite prepared to pay the premium price for the label and some of them also bye similar
products at the low prices that can snatch the market of Marks and Spencer. Therefore in terms
of Marks and Spencer the threat of substitutes is high.
Bargaining power of buyers: Within the clothing sector the bargaining power of buyers
is always high because customers always have various alternatives and if they does not get
product according to their demand taste and prices then they can easily switch from the other
brand (Michael, Storey and Thomas, 2017). In terms of this classical clothing became the price
sensitive and leads to develop high image for the company. Along with this Marks and Spencer
need to put more impressive on its customers and protect them from their competitors that took
away their potential customers. Therefore Marks and Spencer need to target suitable market and
customers that are willing to pay the premium prices as the customers of UK are not willing to
pay the premium prices in order to support the British products.
Bargaining power of suppliers: Marks and Spencer has British suppliers and directly
purchase their stock from the UK suppliers that they manufacture and create a situation in which
the suppliers are reliant on Marks and Spencer. Because of this the bargaining power of suppliers
is low because Marks and Spencer always put emphasis on purchasing the raw materials only
from the few suppliers. From the perspective of suppliers it becomes the biggest opportunity for
them to supply their product to the biggest company named Marks and Spencer.
Competitive rivalry: Competitive rivalry is quite high within the market because there are
many alternative and substitute present within the market that can give tough competition to
Marks and Spencer and get full control over the market. In terms of this Marks and Spencer face

threat from its competitors as other companies enter into its market by offering similar quality of
products at the affordable prices (Hitt, Ireland and Hoskisson, 2016).
Therefore by considering the above discussion it is analyzed that porter’s five Force
model is useful in analyzing and identifying the competition that are present within the market.
As because of this analysis the expertise and specialist of the company has prominent advantage
to study about the market and develop prominent strategies to overcome from the risk factor.
Moreover in comparison to SWOT analysis porter’s five forces is quite effective as it
significantly describe all the competitive forces that are present within the market.
Porter’s generic model
Porter’s generic model is the useful Framework which is helpful to identify the potential
market Marks and Spencer in order to achieve the competitive advantage within the industry
(Zhao and et. al., 2017). Marks and Spencer has adopted the combination of cost leadership
differentiation and focus strategies in order to handle the competitive pressure. Therefore few
prominent strategies are mentioned below:
Cost leadership: It describe achieving the competitive advantage by eliminating the cost of
the products. The basic objective of adopting the strategy is to capture the market leadership
position by considering the prominent value chain management. Along with this it allows the
respective company to expand the market share by targeting the middle class customers and
giving huge importance to price factor as it is the best strategy to fulfill the requirements of
customers (Baumgartner and Rauter, 2017). Marks and Spencer also focus on the easy
accessibility and affordability of its products across the world that leads to develop high brand
awareness and sales growth in order to provide the strong competitive advantage within the
market. Along with these charging low prices also leads to eliminate the production cost and
increase in supply chain efficiency and because of this Marks and Spencer significantly offer
discount and sales on its product to achieve the desired outcomes and also tackle the competitive
pressure and also tackle the competitive pressure against its rivals (Marks Spencer Generic and
Intensive Growth Strategies, 2019). Therefore the desired outcome of this discounts and
promotional campaigns leads to increase the brand popularity and also motivate the consumption
of products among the customers.
Differentiation: Differentiation is the important factor that leads to develop the competitive
advantage by using differentiation strategies and also include the cost in order to achieve the

growth objectives. Adoption of differentiation strategy helps Marks and Spencer in order to
expand their customer base by focusing on the unique product features that embedded the
innovation and helps in increasing the customer area (Peppard and Ward, 2016). In terms of this
before developing any product Marks and Spencer need to significantly study the changing
requirements and interest of customers in order to expand its scope and develop opportunities for
itself. Despite from this Marks and Spencer prominently get position for its product offerings by
providing different and unique product from the available alternatives that does not have any
substitute within the market. Along with this the brand logo of the Marks and Spencer also leads
to set the differentiation from the any other brand and also establish the strong brand image
within the mind of customers (Marks Spencer Generic and Intensive Growth Strategies, 2019).
Focus strategy: It is the third generic strategy that motivates the company to concentrate on
the various sources that helps expending the narrow targeted area. In this context, organization
needs to adopt the focus strategy by serving the particular market area that becomes the base for
the competitive advantage (Aguinis, Edwards and Bradley, 2017). In terms of this Marks and
Spencer need to adopt the focus and strategy by considering the low cost and providing the best
value of its product and also serve and fulfill the requirement of its target market. Along with this
company to focus on the product attributes by revising its strategies and brings out the prominent
changes within the product that leads to satisfy the Expectations of customers (Marks
Spencer Generic and Intensive Growth Strategies, 2019).
CONCLUSION
By considering the above information it is analysed that strategic management is important
for the smooth functioning of an organisation. Moreover, it describes the overall management of
the various functions of the company which is useful in achieving desired goals and objectives
within the stipulated period of time. Despite from this, it includes various frameworks that are
useful in determining the prominent opportunities and threats for the company. Along with this,
these frameworks are useful in identifying both internal and external factors that are present
within the business environment and also impact the growth and success factor of company.

REFERENCES
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Online
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<https://pestleanalysis.com/marks-and-spencer-pestle-analysis/>./
Marks Spencer Generic and Intensive Growth Strategies. 2019. [Online] Available through
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Strategies#:~:text=Marks%20Spencer's%20competitive%20advantage%20strategies,to
%20handle%20the%20competitive%20pressure.>./
SWOT analysis of Marks & Spencer. 2020. [Online] Available through
<https://www.marketing91.com/swot-analysis-of-marks-spencer/>.