LUBM304: Strategic Management in Global Context Report for M&S

This report provides a comprehensive strategic management analysis of Marks & Spencer (M&S), a major British multinational retailer. It begins with an introduction to strategic management and its importance, followed by an internal and external analysis of M&S using SWOT and PESTLE frameworks, identifying opportunities and threats in the market. The report then explores three modes of market entry, recommending franchising as the most appropriate option for M&S, and discusses the extent to which the selected business unit should be standardized or adapted. Furthermore, it examines Porter's generic strategies to determine how M&S can gain a competitive advantage, and concludes with a strategic business plan, assessing how M&S can measure its success and improve in the future. The report highlights key considerations for global expansion and strategic decision-making, offering valuable insights for business students and professionals alike.

STRATEGIC MANAGEMENT IN
GLOBAL CONTEXT

Contents
INTRODUCTION...........................................................................................................................3
Internal and external analysis explaining the possible opportunities as well as threats your
client could face within the market..............................................................................................3
Three modes of market entry with justification to most appropriate one....................................5
To what extent should the selected business unit be standardized or adapted............................7
Porter’s generic strategy to explain how your client could gain competitive advantage by
adopting one of the generic strategies in your recommended market.........................................8
Produce a strategic business plan and critically assess how your client could measure its
success in this market and how it could improve in the future....................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic management is the ongoing planning, monitoring, analysis and assessment of all
necessities an organization needs to meet its goals and objectives. Changes in business
environments will require organizations to constantly assess their strategies for success. Marks
and Spencer Group plc is a major British multinational retailer with headquarters in London,
England, that specializes in selling clothing, home products and food products, mostly of its own
label. This report contains issues such as Internal and external analysis explaining the possible
opportunities as well as threats. Three modes of market entry, strategy of standardization and
adoption, porter’s generic strategies to gain competitive advantage and a business plan which
evaluate how they can achieve growth in future.
Internal and external analysis explaining the possible opportunities as well as threats your client
could face within the market
SWOT Analysis
Strength-
Marks & Spencer have a trustful and respectful image in the market. They are known for
their innovative ideas and creative measures that bring they bring into market.
Weakness-
They are not able to achieve success in foreign markets such as some of the Asian and
European markets as they deal only in western goods which limits their variety. Other than that
many of their customers are not satisfied with the service they provide to them.
Opportunities-
Company has the option to enter different categories and segments so that they can target
more audience and deal in more markets. This can be done if they start dealing in traditional and
ethnic wear (Luo and Shenkar, 2017).
Threats-

As company deals on high level it is difficult for them to maintain their operations as they
have to face lot of threats from the existing competitors who plays on their level such as zara,
United colors of Benetton.
Pestle Analysis
Political Factors-
There are some decisions which are taken by government of country which can leave an
impact on business. Due to the political instability and increase in rate of taxes has affected the
rate of growth and their sales are decreasing. Earlier company used to have many benefits in
EC’s agreement of trade as they were able to reduce the cost of sourcing. They work closely with
the government so that they have the insight about the pricing and regulation policies (Ongaro
and Ferlie, 2020).
Economic Factors-
Company has to work up with a strategy so that they can align their objectives with the
concerned rate of inflation. Although due to crisis of economy company had to reduce their rate
of employment which is affecting their image in the market. Consumers are not buying their
products because of less disposable income their purchasing power has reduced.
Social Factors-
Management of Marks and Spencer had to work with new ideas as purchases of
consumers are influenced by cultural, psychological and personal changes in the market. They
deal in fashion line and in order to succeed they have to comply with the changes in trends.
Marks and Spencer deal in high end clothing but now preference of customers have changed as
they want more affordable products because the current trend is to have variety and not everyone
can afford luxury goods (Trigeorgis and Reuer, 2017).
Technological Factors
They have announced a program through which they will become first ever business that
will be digital in serving their customers. Focus of company is building on new models of
operations that help them to remain up to date. It has been possible because management of

company have understood the value of technology as it helps them to deliver and complete their
operations successfully. It also helps them to deal and offer products that are customer focused.
Legal Factors
Marks and Spencer maintains their operations in different countries and they have to
comply their decisions on the basis of different legislations. This is why they train their
employees on the basis of that and make sure that their program involves every aspect of it. They
came into legal issues when they were not able to save the jobs of their employees and face
continuous threat in the market. Other than that their infrastructure broke down due to
involvement of cancer causing material which affected their image.
Environmental Factors-
Company has taken initiative in order to sustain the environment and they are rapidly
spreading it through television and other media to promote it. They are calling it as Plan A which
is their own green policy. They believe that with this strategy they can leave a positive impact on
the communities so that they can get their support to safeguard the planet. They work closely so
that they can develop more practices that are sustainable (Hansen, 2020).
Three modes of market entry with justification to most appropriate one
Franchising-
In order to enter with this model of business Marks and Spencer will have to find
franchisees in other markets who are ready to invest in their brand. It is sort of easy for them as
they are a established brand in the market. but in return franchisees will have to pay royalty and
some fees in return as they are using their trademark and this is the format of this model. There
are other packages of rights and resources which usually include systems of management,
equipment, operation manual, trainings that are initial, approval on site which is needed to be
done by the franchisor. Although franchisee needs to keep in mind that they may have the
advantage of using their brand image but they won’t have the power to make any decisions also
sometimes it leads to conflicts between them which affects their relations. Other than it is
important that company finds the right franchisee for them as they offer their brand image to

operate with it and if they do not offer customer service up to the mark then it can affect their
reputation (Koberg and Longoni, 2019).
Wholly owned subsidiaries-
This form of entrance in market involves two types of strategies that are Greenfield
investment and acquisitions. Greenfield investment is the establishment of this aspect as it turns
out to be complex and costly but they can have the full control and have the most potential so
that average rate of return can be assessed. This form of aspect is considered when company has
to plan capital intensive plants which require high cost to set it up.
On the other hand with the help of acquisition they can attain greater form of market
power, this determines that more power they have more share will be possessed by that business.
Many MNCs look for this option to enter as with it they have the chance to achieve great power
because they can buy out their competitor through which they can get competitive advantage in
the market. Apart from that this method is considered to be one of the fastest methods to enter
and make place in other markets. Risk involved in this method is less than compared to
Greenfield investment. Marks and Spencer can make an investment in those companies that have
some value in the eyes of audience so that they can easily enter it (Teece, 2019).
Joint Venture-
Marks and Spencer can also consider this method to enter in different markets. This
model involves aspects such as sharing of rewards, sharing of technology and joint product
development and work as per the guidelines provided by the government. This mode of entrance
can give many benefits to Marks and Spencer such as getting more connections with
government, increasing their channel of distribution that may depend on relationships with their
suppliers. In order to be successful with this mode of entrance into other markets Marks and
Spencer need to make sure that they find companies whose goals strategically converge with the
diversion of competitive goals. They need to consider the size of the partner they are coming in
force with as they cannot choose more powerful leader than them because it will create conflicts
among them. Also they need to assess the sharing and investment of their resources into the
markets. Both of them will be getting more knowledge of different markets and the ways in
which they operate. Other than it is important for them to assess all the issues that are related

with this form of entry factor so that they do not face many difficulties ahead. There are areas in
which they can get into a problem such as investing in new areas and getting into conflict over it.
Mistrusting the other party on some decisions taken, getting support from each other on different
issues until they agree on it. Clashing on factors that are cultural as both of them are from
different cultures. When things don’t work out between both the parties then they get in conflict
to when and how to terminate their relationship.
On the basis of analysis of market and different styles of entering into different markets it can be
clearly stated that franchising mode of entrance is the best way for Marks and Spencer to
consider and enter into the markets. This is because they are a multinational corporation and a
successful brand in the market which means that they do not have less resources or power which
they need from other brands they can easily invest in any markets they want to. They just need to
find out different investors that are ready to invest in their brand which is easy as there are many
markets where demand of their brand is high which means that they can easily achieve success
(Shedage, Shrivastava and Behara, 2019).
To what extent should the selected business unit be standardized or adapted
Standardization is best when there are less cultural differences and same level of customer
demand across the area company deals in. firms dealing with this approach are stating that
barriers to trade are low. Although there is less advancement in the field of technological aspects
with this approach they will have to work with similar strategy for all the markets. They believe
that with this they can achieve consistency so that they can serve as per low costs. They believe
that with this they can achieve long term success if they deal as per the wants of people rather
than their thought process (O’Shannassy, 2017).
On the other hand adaptation approach focuses on customization as per the environment
and market they are dealing in. they evaluate all the forces when they enter into markets such as
race, language, climate etc. there are some areas in which researchers face difficulty to evaluate
and assess the pattern of consumers. Marks and Spencer have to assess the new trends and
demands so that they can adjust to their strategy of marketing (Poesche, 2019).
As per the nature of business and the level of scale of operations they have to work with
adaptation strategy as tastes and preferences of customers keep on changing. Other than that they

have to face high level of competition and if they keep working with same approach then they
won’t be able to survive in the market. Although standardization must be implemented for one
extent that is to be consistent on maintaining their quality of business (Durand, Grant and
Madsen, 2017).
Porter’s generic strategy to explain how your client could gain competitive advantage by
adopting one of the generic strategies in your recommended market
The strategies that were provided by Porter was to help in gaining the competitive advantage and
develop the edge through which they can get far away from the competitors.
Cost leadership strategy-
In order to work with this strategy they will have to focus on increasing their profits by
decreasing their costs. For that they will need to charge average prices to consumers. They will
have to earn by increasing their share in market and by setting low price they can easily achieve
that. This strategy states that company can easily be the leader of the market if they set their cost
this way. This will not be enough for them as if any other company reduces their price lower
than them then they can take away the share of market. in order to be successful with that they
will need to invest their capital in technologies that helps them to reduce their cost, low cost of
labor (DesJardine, Bansal and Yang, 2019).
Differentiation Strategy-
This strategy states that companies will have to make different products from their
competitors so that they can attract customers because of unique attributes to their products.
They will have to look for the factors such as functions, durability, image of the company and
value to customers. in order to do this successfully they will need to research and develop on
good level so that they can innovate. They need to deliver them products that are o high quality
and invest more in marketing and sales so that customers are aware about their product.
Companies such as Marks and Spencer have to keep their ideas secret so that no other company
steals it and launch before them.
Focus Strategy-

For this strategy companies will have to targets those markets that are niche so that they
can understand the dynamics of the market and its unique needs of customers within it.
Companies have to develop unique but low cost products as they have to serve with unique
approach. Focus is on building image of the brand and its loyalty in front of their customers. this
makes their segment of market less attractive to their competitors. If the company wants to
expand their business then they will have to implement and work with one more strategy so that
they can add and offer something extra to their consumers. It is believed that companies need to
work with more strategies if they are serving in different markets.
For the markets that they deal in it will be helpful for Marks and Spencer to work with
differentiation strategy because they cannot work with cost leadership as they charge very high
prices for their products and in order to live up to that they need to offer something unique and
new that keeps them loyal to the brand and they can remain consistent in serving top quality
products to them. If they evaluate these approaches and keep on adding something extra to it
with time as per the needs and wants of people they can easily gain competitive advantage in
their market which will help them to succeed and stay ahead from their competitors (Sullivan,
Thomas and Rosano, 2018).
Produce a strategic business plan and critically assess how your client could measure its success
in this market and how it could improve in the future
Executive summary
This plan of Marks and Spencer gives outlines to areas through which they can achieve
growth and maintain consistency by implementation of right strategies. It is important for them
to cater as per the needs and trends of the market so that they can increase their scale of
operations.
Vision
Vision of the company is to remain standard against those which others need to set it up or
consider as benchmarking.
Mission
Inspirational quality that is accessible to others.

Objectives
 To increase profit and generate more revenue up to 10 per cent in different markets.
 To increase the scale of employment so that they can improve their customer service
(Crane, Matten and Spence, 2019).
 To invest in research and development so that they can keep on introducing new and
unique products to their customers.
Pest Analysis
Political Factors-
Marks and Spencer complies with the decisions that are taken by government so that they
can have their support in order to expand and have some insight which helps them to change and
sustain their business.
Economical Factors-
Due to Covid-19 and Brexit company has already seen a downfall because people do not
have purchasing power of that sort right now which has reduced their expenditure and affected
the sales of company.
Social Factors-
It is important for them to serve as per the culture and religion of market they are dealing
in so that they can gain acceptance quickly and gain recognition in their markets which will help
them to increase the scale of their operations.
Technological Factors-
They have introduced digital operations so that they can serve their customers digitally
and online, at the time of pandemic this was the most helpful for them as people were scared to
buy from store so the sales from this measure saw a rapid rise.
SWOT
Strength-

Marks and Spencer have kept their brand for high end and rich individuals which creates
and urge in other audience to buy it out. Other than that they are present through stores and
online options to their audience.
Weakness-
They are not able to maintain their chain of supply successfully which is creating
problems to deliver their products in markets where they deal in. Other than that they are not
successful in every foreign market which is creating difficulties for them to manage the
operations.
Opportunities-
Company has the opportunity to offer and innovate new style of products to their
audience so that they retain them from their competitors.
Threats-
They have to come up with something new or unique as they are losing their value in
many markets because of high level of competition.
STP
Segmentation-
Marks and Spencer has divided their markets in some segments so that they can manage
and sustain its operations. They have divided their audience in few of the parameters such as
demographics they have divided their audience as per their age, gender, education etc.
geographically they have divided them by city, state or country. Other than that they also analyze
the attitude and values of customers so that they can provide them with optimum level of
satisfaction.
Targeting-
They maintain their operations ethically which has helped them to cover large area in
market but it will be helpful if they target their audience so that they can sustain. It needs to be
done on the basis of size and the potential of market. This will help them to develop strategies as

per the threats and opportunities they have in the market. Other than that they need to set up a
budget so that they can invest as per that (Collings, Mellahi and Cascio, 2019).
Positioning-
In order to position their brand and products successfully they use the approach of
marketing mix. It will be helpful to them if they focus on their elements thoroughly and then set
the strategies so that they can influence and convince them into making a purchase.
Marketing mix-
Product-
Marks and Spencer has innovated co friendly products and they trade their products with
fair approaches, they have a big portfolio which covers the categories for all men, women, kids,
beauty, home, furniture, wine, food and flowers.
Place-
Marks and Spencer originated in London but with time they were successful in expanding
their operations to various countries and in those countries they sells their products by stores so
that they can increase and spread the visibility and awareness of their brand. They are considered
to be one of the largest employers and it is done so that they can provide better services to their
audience. Apart from that they also deal online.
Price-
They charge high price for their products because they target high end audience and offer
them with high quality products which has many varieties. Still many people considers it value
for money because of its range and quality. in order to reduce competition they have
implemented competitive pricing (Basile, Kaufmann and Savastano, 2018).
Promotion-
Marks and Spencer invest highly in this aspect through digital and visible media with
both above and below line strategies so that they can spread more awareness. They have left no