Marks & Spencer: Strategy, Competitive Drivers, and Analysis Report

This report provides a comprehensive strategic analysis of Marks & Spencer, a retail business founded in 1884. It delves into various aspects of strategic management, including different types of strategies in relation to schools of strategy and strategic concepts. The report examines competitive drivers and their impact on Marks & Spencer's competitive position, using tools like PESTLE and Porter's Five Forces. It also explores internal analysis tools, such as SWOT analysis, to draw appropriate conclusions about the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report discusses strategic choice models to sustain the company's competitive position and analyzes the resource implications of recommendations, along with the application of strategic implementation models. The analysis aims to provide insights into how Marks & Spencer can navigate its business environment and achieve its long-term performance goals.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Types of strategy in relation to schools of strategy and strategic concepts............................3
TASK 2............................................................................................................................................4
Competitive drivers and the impact on competitive position of company.............................4
TASK 3 ...........................................................................................................................................7
Internal analysis tools to draw appropriate conclusions.........................................................7
TASK 4 ...........................................................................................................................................9
Strategic choice models to sustain the company’s competitive position...............................9
TASK 5 .........................................................................................................................................12
Resource implications of recommendations that company has to address and critical analysis
and application of strategic implementation models............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Management is referred as integration of action and decisions of manager that
assist in determining long term achievement of performance of enterprise in effectual and
efficacious way (Abreu Pederzini, 2016). It scan internal as well as business environment,
implementing and formulating strategy, evaluation and controlling of it. It is important to study
strategic management as it mainly focus on evaluation and monitor of different market
opportunities and threats for identification of strong and weak points. This provide proper
direction to enterprise for achievement of objectives, development of plans, strategies and
policies with attainment and allocation of resources in appropriate manner. The given report is
based on Marks and Spencer which was founded in 1884 by Thomas Spencer and Michael
Marks. It is retail business that manufacture various types of products such as foot wear,
accessories, luxury, home appliance and so on. The aim of report is to discuss about several
aspects of strategy related with school of strategy and strategic concepts. It has covered
competitive drivers and their impact on competitive position of company. This has highlighted
internal analysis tools for providing appropriate conclusions. The strategic choices models are
used for sustaining company's competitive position along with application of strategic
implementation models.
TASK 1
Types of strategy in relation to schools of strategy and strategic concepts
Strategy is defined as action plan which is made for achieving set goals and objectives in
an effective and efficient manner of company (Alizadeh and et. al., 2016). This is essential for
Marks and Spencer to develop strong strategies in order to perform operations and activities of
business in an effectual way. Strategies plays very essential role in business which affect overall
functions of enterprise. It will assist in identifying uncertainty and development of plan that
enhances performance of business and rise in profits and gains. This is crucial for Marks and
Spencer to develop strategies as it assist in foreseeing future of organisation and making
decisions that leads to deal with challenges in appropriate manner. It will aid in attainment of
goals and objectives successfully and employees will work in positive manner. The strategies
which are developed by Marks and Spencer will influence large number of customers for
business goal and objectives. It also leads to gain competitive advantages from their rivalry

companies. The strategies are concept which are used by companies in identification of business
environment and collection of data and information in order to develop plan that will provide
direction in accomplishment of desired objectives and targets. The various kinds of strategies are
applied by Marks and Spencer for running their business activities as well as operations in
positive manner. The significant strategies that helps in development of business and applied by
respective organisation are described below:
Creating Values- The organisation has to create value for their business in order to serve
their consumers with high quality products and services (Barney, 2017). In order to implement
such strategies, respective organisation has to provide positive and friendly environment to their
working forces. It will leads to enhance overall productivity and performance of business. The
respective organisation uses differentiation strategy in order to provide high quality and
innovative products and services to consumers which helps in gaining competitive edge from
their rivalry.
Transforming Business- It is the most strategy which should be used by organisation for
their business so that set outcome can be attained in an positive manner. Marks and Spencer can
transform business with help of risk management, performance, brand values heritage and
working on plan A (Strategies of Marks and Spencer, 2019). They can rise their profits and gains
by taking risk and performing those in an effective manner. With such strategy, respective
organisation can develop capabilities and skills of employees for enhancement of overall
performance. It is important to make two plans and apply first one to achieve set outcomes.
TASK 2
Competitive drivers and the impact on competitive position of company
It is essential for Marks and Spencer to perform activities and operations of business in
effectual way. The proper strategies has to be developed by respective organisation in order to
accomplish set objectives and goal. It is important to analyse and evaluate business environment.
The components of external surrounding are measured through help of PESTLE analysis and
their impact on business are described below:
PESTLE Analysis
It is regarded as framework which helps in analysing various components of external
environment. This offers HR practices which insight external factors that impact organisation.

The factors includes political, social, technological, environmental, economic and legal. There
are as follows:
Political Factors- This factor consists of policies, strategies and rules which are made by
government and political party for influencing working style of business (Bergh and et. al.,
2017). The government of UK is stable which is easy for respective organisation to conduct
their business activities and operations. It includes restriction, taxation rules and so on which has
to be followed by business while running enterprise at marketplace.
Economic Factors- It includes exchange rates, growth rate, interest rate and others.
United Kingdom is regarding as growing GDP that has positive impact on business activities and
operations of Marks and Spencer. The high growth of economic will enhance performance of
business in positive way.
Social Factors- This factors includes behaviour, population size, culture, occupation and
many more. It has direct impact on activities and operations of respective organisation. In
context of social factors, Marks and Spencer is providing premium valued products for satisfying
need and demand of consumers. Due to change in trends, it has negative impact to business. So it
is very important to analyse market and requirement of consumers so that their demand can be
fulfilled and attainment of profits.
Technological Factors- United Kingdom market is regarded as innovative and advanced
technology that assist in performing activities and operations in positive manner. The respective
organisation is advanced in technology and manufacturing products with use of highly equipped
machines and equipments. This helps in attainment of high profit margin and profitability ratio
with following of technological factors in business.
Environmental Factors- It is defined as factors and components that are related with
environment (Carroll, Primo and Richter, 2016). This includes climate, pollution, weather,
ecological system and others. The respective organisation need to follow all legal laws and
regulations which are implemented by government of UK for enhancement of environment
components. Marks and Spencer is following corporate social responsibility for fulfilment of
need and demand of society, consumers and environment.
Legal Factors- It is defined as that factors or component which focus on following of
legal laws and legalisation for carrying out business activities and operations in an effective and
efficient manner. These factors has direct and in direct impact on enterprise. The various laws

and legalisation are implemented by government which should be applied by respective
organisation while manufacturing products and providing equal treatment to all working forces.
Porter's Five Force Model
It is defined as framework which assist in development of business strategies for
organisation (Eskerod and Jepsen, 2016). This has applied by Marks and Spencer in order to
understand competitive position at marketplace. It was developed by Michael Porter in order to
identify competitive position and strategies development. It includes following:
Threats of New Entrants- Marks and Spencer is renowned business that has build
market image and brand value through providing high quality products and services. The new
entrants need more time for entering into retail sector and developing their image and brand
value. Marks and Spencer has moderate impact of such strategy.
Bargaining Power of Suppliers- Marks and Spencer is buying their products from
various suppliers. The rise in number of suppliers will reduce and impact on enterprise. Due to
large number of supplier, Marks and Spencer has an opportunity to switch their supplier and buy
from other. Therefore, bargaining power of supplier is low in context of respective organisation.
Bargaining Power of Buyers- In order to increase brand value and goodwill at
marketplace, it is very important to attract large number of consumers. There are many options
available to buyers so their bargaining power is high which impact on performance of business.
Mark and Spencer has high bargaining power of buyers which is impacting their profits and
gains.
Threats of Substitute Products- The different types of products are manufactured by
companies that has substitute products of respective organisation. It will create impact on overall
performance and business in an effective and efficient manner. This will leads customers for
buying of goods and services that has substitute products offered by other companies. The threat
of substitute product is high for respective business.
Competitive of Rivalry- The respective organisation is operating business in competitive
market that has strong companies dealing in retail sector (Favoreu, Carassus and Maurel, 2016).
It is essential to make strategies for gaining competitive advantages over competitors. Marks and
Spencer has high threats from their competition which impact their business.

From the above analysis, it has concluded that respective organisation can identify their
market position at environment with help of Porter's five force model. Company need to use
innovative technology for attracting large number of customers for their business.
TASK 3
Internal analysis tools to draw appropriate conclusions
This is so much vital for organisation to examine and assess the overall internal factors
that will has effects upon entities (Flotemersch and et. al., 2016). As M&S deals with more
competitive atmosphere as well as this is crucial for respective firm to examine their internal
factors as it aids them to formulate efficacious strategies. There are several internal strengths as
well as weaknesses that impacts the whole organisational performance. There are various kinds
of opportunities which is available for respective organisation which will drive them towards
maximising their market share. Moreover, this is important for firm to find as well as examine
their several threats in order to make efficacious strategies as well as minimise their pessimistic
affects.
M&S Vision statement
The respective organisation vision statement involves that it wants to build as well as
form goods or services that drives towards developing standards for fashionable sector. Its
develops products according to consumers needs as well as facilitates standard quality products
to clients.
M&S Mission statement
Its mission statement is categorised into three parts that are Vision, mission and values.
Vision: To become standardised against that another one are evaluated. Mission: To create
aspirational quality approachable to whole. Values: Service, quality, innovation, faith and
importance (What Is Marks and Spencers' Mission Statement?. 2019).
SWOT Analysis
This is regarded as efficacious framework for examining and assessing internal entities
atmosphere. It is so much vital for Marks & Spencer to effectually examine their strengths,
weaknesses, opportunities and threats for the accomplishment of desired objectives. SWOT
analysis of respective company are discussed below:

Strengths- As M&S is renowned organisation that deals into fashion retail industry. It
develop products or services according the requirements of clients. Their staff are regarded as
their main strengths as it performs in appropriate and effectual way for attaining its expected
objectives. They have board product line that accomplish the wants of their potential consumers.
Weaknesses- Its main weaknesses is they can not able to maintain their monetary
resources in efficacious way for performing their business practices appropriately (Fynn and et.
al., 2016). Moreover, it is vital for Marks and Spencer to effectually maintain their overall
monetary resources in order to attained expected goals. Respective organisation can not capable
to utilise advanced technology that is impacting their whole organisational performance as well
as productivity.
Opportunities- As there are several opportunities which is available within marketplace
that will drives to maximise their entities practices and market share into competitive market.
Marks & Spencer has to formulate goods according to requirements of consumers. They has to
utilised innovative technology within their operations of entities. It will maximises their profit
and productivity. Respective organisation will become competent to obtain share of market
through formulating efficacious strategies of enterprises.
Threats- The main threats of Marks & Spencer is their competitors. They are operating
into high competitive atmosphere that will has major affects upon entities. Moreover, they has
threats from their business as in case any modification into its strategies or decisions may has
pessimistic effects upon entities.
VRIO Analysis
This regarded as an analytical tool that is brilliant which is useful for the assessment of
organisational resources as well as the competitive advantage (Haynes, 2018). Moreover, this is
an efficacious framework that will aids Marks and Spencer to examine and evaluate internal
sources effectually. It is categorised in valuable, rare, imitable and organised. The respective
organisation VRIO analysis is discussed below:
Resources Valuable Rare Imitable Organized Impact of Competitive
Advantage
Quality as well as
designs
Yes - - - Competitive
Disadvantage

Supply Chain
networks
Yes Yes - - Temporary competitive
advantage
Potential staff Yes Yes Yes - Unused competitive
advantage
Monetary
resources
Yes Yes Yes Yes Long term advantage
Quality as well as design- Respective organisation is creating standard quality of
products according to the requirements of their potential clients. Their products quality and
designs are so much innovative as well as they can capable to facilitate valuable goods to firm.
Supply chain network- Supply chain is the vital part of respective organisation business
as they are facilitating their products to across the world (James, 2016). Marks and Spencer have
very effective supply chain network that drives towards product distribution at appropriate time.
The respective firm have utilise the supply chain network which is rare and so much valuable in
providing their products to its targeted clients.
Proficient staff- Respective organisation have proficient as well as capable personnel
that assists them to perform their business practices efficaciously and appropriately. The M&S
have capable and skilled staff which is very much valuable for them. Their workers may also be
imitated through another competitive firm as there are possibilities that their staff may switch its
jobs.
Monetary resources- The Marks and Spencer have relevant monetary resources which
aids them to perform their business practices efficaciously and appropriately. Their monetary
resources are valuable to its entities as well as this is organised effectively. It will assists in
utilising innovative technology into their business practices.
TASK 4
Strategic choice models to sustain the company’s competitive position
For supporting the firm's core business, it is so much essential for them to obey unique
strategies as well as creative techniques for achieving their desired goals effectually (Koseoglu,
2016). Within current economy, there are advanced level of rivalry among organisation so that
an overall firm tried to formulate appropriate strategies by which they can able to influence

ample number of person as well as become efficient to build loyal consumers efficaciously. So,
there are various strategies but some of them are comply by respective organisation which are
discussed underneath:
Ansoff matrix
This is regarded as the important framework for developing the strategic management
plan in which it may be applied to seek several opportunities for formulating effectual revenues
for business through making new goods and services into new market area (Meyer and Xin,
2018). Several times. It is also known as the product marketing matrix. This model aids firm to
concerned about their overall development of entities and competent to assess opportunities for
firm to increase their sales by having alternate choices for new marketplace like geographical
location, clients segmentation and others. There are strategies that states regarding framework as
well as aids M&S to understand the circumstances of market that are explained below: Market penetration: It is defined as the type of efficaciously selling of goods or services
within respective marketplace. On other side, it can be evaluated by overall amount of
existing sales volume in comparison to whole targeted market for that particular products.
In context of M&S, for efficacious growth it can choose this particular strategy by which
it can implement any thing new and capable to sell its goods into existing marketplace.
By using market penetration strategy, they may become more competent to grab more
market share without going through with any forms of issues at competitive market. Market development: This is also regarded as the growth strategy where entities
formulate as well as finds new segment of new market with its similar existent goods
(Teece, 2019). Basically it concentrates upon introducing new market with existent
goods. While adapting this particular strategy M&S can able to examine new market, its
potential clients, geographic areas and many others appropriately and efficaciously.
Within this strategy, they can enter into regional as well as international marketplace.
Moreover, they also adapt respective strategy through entering into new market such as
Monaco with its existent products. This will aids in maximisation of business profitability
and expansions efficaciously. Product development: According to this strategy, organisation may make and creates
several goods with creative characteristics that generally render added advantages to
consumers at competitive market area. In relation to M&S, it applied this strategy in

order to modify the existent products procedures as well as its images with forming new
goods that will satisfy the new consumers. Therefore, this is known as the effectual way
for accessing the niche markets and current market circumstances.
 Diversification: This is regarded as the most vital for firm as it facilitates the
opportunities of growth to them (Thiry, 2016). Through utilising this, company may
explore its entities as well as their associated projects after performing R&D activities in
efficacious way. In respect of Marks and Spencer, it may explore into another
marketplace which possess huge opportunities for gaining possible results positively in
order to gained competitive advantages effectively.
As per the above model, respective organisation have to applied market development
strategy as this assists them to explore its entities at another market such as Monaco. In addition
to this, they also formulate new goods as well as influence their people in optimistic manner as
well as defend their core enterprises efficaciously.
Porter's generic strategy
It is a framework of three concepts (cost leadership, differentiation and focus) that are
interconnected with each other that is used by most of the organisations today in order to develop
key procedures against competitors. The name “generic” implies that these strategies are not
dependent on any company or industry and can be applied to products and services across all
industries. Marks and Spencer can use these strategies to have a competitive advantage.
Cost leadership- This strategy recommends that competitive advantage can be gained by
having lowest of production possible for a product or service (Morden, 2017). The organisation
aspires to be the lowest cost producer in its respective industry. This is often achieved by
producing products in mass quantities. This allows the organisations to produce products that are
priced below the average price and as a result earn high profits.
Differentiation- The primary focus of the organizations leading differentiated strategy is
to produce products that are different yet appealing to the customers in order to gain competitive
advantage. Marks and Spencer uses a variety of methods to differentiate its products from those
of its competitors. The organizations following the differentiation strategy often charge premium
prices for their products and services in order to be differentiated for having high class and
quality products.

Focus- This strategy defines having a restricted and determined piece of the market,
known as a 'niche' segment. Marks and Spencer generally selects its target segment within the
industry and tailors its strategies accordingly. Since the target segment is small, hence the
company is able to focus more on its customers. Therefore, as a result the company has
customers who understand the company's products, their quality and are ready to pay premium.
But there is a threat that the brand's niche may not grow and may fade away with time.
It can be seen that following differentiation and focus strategies will be beneficial for
Marks and Spencer as they will help the company in differentiating its products and creating a
new community with new potential customers (Percy, 2016).
TASK 5
Resource implications of recommendations that company has to address and critical analysis and
application of strategic implementation models
This is very much vital for organisation to assess and examine their entities atmosphere
for building enterprise strategies (Shujahat and et. al., 2017). Respective firm have several
valuable goods that required to be find in appropriate as well as efficacious way. It will also aids
in formation of efficacious strategies and assists to conduct business practices effectually. Marks
and Spencer main strengths are their staff as well as they have to be effectually maintain their
workers and accomplish its needs in effective way. It will has direct affects upon their business
activities as well as aids in maximising performance of entities. Moreover, respective
organisation have strong monetary resources that will drive to has optimistic affects upon
development into their enterprises performance and attainment of goals (Simandan, 2019).
As per the above business environment assessment and industry analysis, there are few
recommendation facilitated for Marks and Spencer for enhancing their entities. Recommendation
are given below:
 This is crucial for respective organisation to comply overall regulation for performing
their business practices efficaciously. As this will drive them to do their operations
smoothly for attaining expected objectives.
 Moreover, Marks & Spencer have to facilitate continuous training to their staff for
enhancing their performance. As it will assist them to develop its abilities, knowledge