Strategic Analysis of Marks and Spencer: Business Report, 2024

This report offers a detailed strategic analysis of Marks and Spencer (M&S), a leading UK fashion retailer. It examines the company's strategic direction over the past five years, focusing on its commitment to sustainable resource use, social equality, and healthier lifestyles. The report evaluates M&S's internal capabilities and weaknesses using SWOT analysis, assessing its strengths in global retail presence and food market success, while highlighting weaknesses in its clothing sector and stock control. Furthermore, it applies Porter's Five Forces model to assess the competitive landscape, analyzing threats from new entrants, substitute products, and the bargaining power of buyers and suppliers. The report also employs PESTLE analysis to evaluate the macro-environment, considering political, economic, sociological, technological, legal, and environmental factors influencing M&S's operations. Finally, the report touches upon the company's mission and vision statements and goals. The report provides a comprehensive overview of M&S's strategic position, challenges, and potential future strategies.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
The strategic direction of Marks and Spencer has followed in the past 5 years....................1
TASK 2............................................................................................................................................2
Evaluate the frameworks for strategic analysis......................................................................2
Assess competitive advantage among its direct competitors.................................................3
Explain the probable industry scenarios facing the company within its existing market......5
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................8
Explain the possible strategies that the company can follow to defend its core business......8
TASK 5............................................................................................................................................9
Recommend the resource's implication to the firm................................................................9
CONCLUSIONS..............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is developing and implementing goals with the use of strategic
tools. These strategic tools act as pillar for the company development in the competitive market.
Further, this report will analyse the strategic tools and techniques used by Marks and Spencer.
M&S is the leading fashion retailer of UK, selling its products and services across the globe.
Moreover, the report will evaluate strategic capabilities and strategic frame work of the company
which will through light in more possible strategies which company can use to improve its
functioning and customer services. Hence, this report will assess over micro and macro
environment of Marks and Spencer.
TASK 1
The strategic direction of Marks and Spencer has followed in the past 5 years.
The company is following 3 strategical direction from past many years to maintain its
leadership and to have stable control over its customers. M&S focuses on establishing stability
among three factors which are as follows: Sustainable use of finite resources: The company's major motive is to make optimum
utilization of resources as the earth have limited resources so the firm believes that there
should be a finite use of resources in order to protect the environmental condition. M&S
ensure that the resources are utilized properly instead of wastage which can lead to
scarcity of water, electricity etc. Promote social equality: The retailer do not support discrimination on any behalf, so for
maintaining equality within in the organization, M&S from past many years is following
the legal framework of UK which supports equality. The firm has gained lot of customer
loyalty and market image because of supporting equality act. In contrast, the policies and
framework of M&S includes, The Equality Pay 1970, The Sec Discrimination Act 1970,
The Disability discrimination act 1995, The employment Equality Regulations 2003, The
Race Relations Act 1995 and many more.
 Promote healthier and sustainable lifestyles: M&S even tries to use renewable resources
which are easily accepted by the society as it protect the environmental creates healthy
environment to live. Moreover, the organization follows changing trends to stand out in
the market and to attract maximum number of buyers. Hence, to compete with the
1

changes and other retailers the manager follows the technique of evaluating the market
fluctuations on regular basis from past 5 years.
M&S focuses on becoming most sustainable retailer globally and for that the firm follows
and maintain its involvement with customers, avoids wastage, make maximum use of natural
resources. The manager of the company ensures the health and safety of its employees and keeps
a check over climatic changes which can affect the functioning of organization. Henceforth, the
success plans of M&S are segregated with two major key points which are deadlines and the
market demand every year. Moreover, the manager updates the strategic tools and techniques
every year as per the market fluctuations (Wheelen and Hunger, 2011).
TASK 2
Evaluate the frameworks for strategic analysis.
M&S analyse its internal capabilities and weakness with the help of strategic tool which
is SWOT analysis. The SWOT techniques to evaluate micro environment of the organisation
comprises factors which are described under: Strength: The company holds more than a thousand retail stores globally, slow and
gradual expansion of firm is increasing competition in UK retail industry. Further, the
M&S is operating and selling its services in 59 territories across Asia, Middle east and
Europe. Moreover, the company has expanded its market in food industry and its food
business is gaining the major market of Europe and Hong Kong. Besides, The company
has shifted its focus to delivering its services online which has increased the net turnover
of M&S and its distribution channels with increasing customer satisfaction (Teece,
Pisano, and Shuen, 2010). Weakness: The major weakness of M&S is its clothing section, the company holds many
segments but lacks the branded costumes and today's generation prefer only branded
clothes, so the company need to develop its brand market in order to serve customer
satisfaction. Moreover, the company do not have stock control system like sometimes
when there is bulk of stock in for delivery than the firm losses its control over stock and
information technology system and customers complaints that the item in the ordered list
are either missing or defective which affected the market image of Marks and Spence for
long term. Besides, the retail company hold many stores which are not needed and
2

because of which the organisations has to pay rents for the stores which are not even
required. Opportunities: Since the clothing industry is slowly loosing its sales, still the Marks and
Spencer have a strong hold over its profits and customers. Further, the expansion in food
industry services has benefited the sales of the organisation for long term, so the
company has a chance to provide its food services online to grab the opportunity and to
increase its food distribution channel. The firm has six million online buyers connected
with the company and still counting. Hence, the company has started its market in 1985,
and till now it has covered most of the global market which shows the development in
growth and opportunities for the company.
 Threats: The company is majorly affected by the recession in the economy which has
decreased it sales in 2009 and continuous decline till four years has affected the net
turnover of Marks and Spencer. Moreover, the leading company has dropped its position
according to its competitors like Asda and Primark. Besides, the fluctuation in political
and economic factors is affecting the growth of business from past many years. In
contrast, the major threat is faced by the stores of M&S which are located at attractive
locations as those places are first target of terrorism attacks.
Assess competitive advantage among its direct competitors.
The company uses Porter's five forces model to measure its competitions and
attractiveness in retail industry. The influence of model for the company is as follows:
Threats of new entrants: Basically, the retail companies have new entrants as the UK
economy has no barrier for entry and exit but still there are less new entrants as entering in retail
market need lot of capital investment and risk as establishing market in new economy can be
risky. Besides, if there are new entrants than they are affected by the loyalty of customers
towards Marks and Spencer. Hence, online fashion retailers are giving major competition to the
company from past 5-6 years.
Threat of substitute products: Retail market is based on regular innovation and creation
and it is difficult of one company to manage with all the changes in market trends. Moreover, the
clothing business faces the risk of copying or imitating the designs and selling them at lower
price according to market leaders which affects the probability of Marks and Spencer.
3

Bargaining power of buyers: In retail industry bargaining power of buyers are high,
according to this power of consumers M&S faces the shift in customers towards other stores as
they are price sensitive. Hence, the weaker costumer confidence affects the growth and
development of the company as it has to sown down its prices according to customers needs and
wants.
Bargaining power of suppliers: In Marks and Spencer maximum suppliers were British
and their bargaining power was very high from comparatively from local suppliers. Further,
according to the figure, it has been noticed that 1990 the company faced a decline in its sales
which lead them to outsource globally with overseas suppliers at more competitive prices.
Henceforth, it has been noted that now the bargaining power is low comparatively from past 4-5
years.
Intensity of competitive rivalry: The company deals in the industry which has strong and
continuous growing competition from other retail and supermarket firms. The major competition
of M&S is Tesco, Morrisons, Asda, Aldi and Sainsbury. Moreover, the competition is increasing
as these companies are selling its similar goods and services at almost same price through online
platform. Online shopping gives the buyers chance to compare the prices and quality of similar
products which affects the profitability and growth of organisation.
4

Illustration 1: Porter's 5 Forces model
Source: Ethiraj, Gambardella and Helfat, 2017.
Explain the probable industry scenarios facing the company within its existing market
It is necessary for the companies like Marks and Spencer to analyse its external
environment. Further, the company uses strategic tool to evaluate its macro environment which
is PESTLE analysis. Pestle factors of the firm are as follows:
Political factors : The company follows the set of regulation as per the health and safety
standards of the British government which includes the identification of hazard, assessment and
control of risk. Further, if the company does not follow the regulation the company will be
forced to shut down. Marks and Spencer did not follow the Health and safety standards and were
charged for this.
Economic factors : As people do not have spare cash to spend on the luxury items like
clothes and foods the retail market was heavily affected by this. M&S have faced problems and
beard heavy losses as a result they have to close many stores and have cut their staff. M&S is
affected by its competitors discounted price. They emphasis on high quality product and can bear
short term losses. The customer faith and confidence towards the brand has encouraged them to
provide the best quality.
5

Sociological factors : These factors cannot be controlled directly but can defiantly affect
the business and its marketing strategies. M&S wanted to stretch the business so they thought to
sell online food to become a multi chain retailer and to keep the competitive market. They need
to keep the factors in mind which influence their business like demographics, culture, age, etc.
Technical factors : Technologies keep changing very rapidly so to keep the brand at first
in customers mind the companies should continuously communicate to their customers. The big
brands or markets like M&N often spends or have a huge budget for advertisements for the brand
awareness among their customers to retain the old one and to connect to the new. Brands like
M&N has celebrity for the advertisement through TV, websites modelling, Magazines. The
customers are now more focused and prefers the mobile commerce and online retailing to
purchase. M&S should build a digit medium to take full advantages.
Legal factors : M&S makes sure that their laws of legislation and all the issues related to
the health and safety are updated and retrained as the laws of legislation keeps on changing.
Retraining involves the changes in taxes, changes in business policies, changes in product selling
polices and in many more things. M&S thinks that the methods and the objectives should be
changed timely for better development.
Environment factors : M&S introduced their own green policy which they named as ''
plan A '' as the chief executive of the company says that they have no '' plan B ''. They have
recently extended their plan to 180 countries to become worlds most suitable retailer. To re-
engineer M&S has announced a 5 year 100 point plans to recovery from the carbon neutral, zero
waste to the land, suitable sources and heath promoting business.
TASK 3
Discuss the mission, vision statement and goals of the organisation.
Mission Statement of Marks and Spencer focuses on “developing the inspirational quality
attainable to its customers”
Vision M&S is to “set standards which are reflects values and inspire emotion”
The mission and vision statement of the M&S company supports their employees to
provide the services as per the market demands of their customers to met the competition and to
6

hold their existing employees and to make the new one. The mission of the company is to
provide an innovative and excellent quality of products to their customers. M&S tries to provide
the best quality products make its customers feel that there is high value of spending so much
money. They provide quality services to their customers to experience the difference. The
organisation has introduced the range of 20 million garments and acquired the worlds third
position in supply of pure cotton (Winter, 2014).
M&S has made planning to face and beat the competitors and for to provide their quality
services to its customers to focus on the encouraging standard for developing. The vision of the
company is to sets the standards of living and shows the emotions. The company is providing its
best services and quality to its customers but it also wants to become food specialist to grab the
food market (Trigeorgis and Reuer, 2017).Moreover, the firm has the strong tradition of
corporate its social responsibilities and will not compromise with the quality, value, services,
innovation and trust. The retail company wants their customers to stop and see at their workforce
as an important part of their plan.
Hence, M&S follows all the legislation and the laws by the government to make sure
quality of their product should remain the same. They also spend a lot of amounts in advertising
their products to have an increase in sells and to position their products in existing as well as new
customers mind at the first (Beske and Seuring, 2014). M&S has the mission and vision to serve
their customers with the best product with all the measures keeping in mind that the quality of
their product should not decrease.
Explain the strategic capabilities of the firm
M&S uses value chain analysis to analyses its internal capabilities. Strategic analysis of
the firm is follows:
Inbound logistics:Theses are activities which are related with storing, receiving and
distribution of resources for production process. Besides, the company also won the Global
business services supply chain award of following the strategical direction like, sustainability,
and equality (Harrison, Bosse and Phillips, 2010).
Operations: The organisation is continuously focusing on improving its customer
services and as per the strategic consultant M&S has developed its customers since 2016 through
inspiring and effortless experience. The company is investing capital for improving its
7

information technology system so that it can enhance the supply chain management of the firm
(Melville, 2010).
Outbound logistics: Theses are activities which are related with storing, receiving and
distribution of goods and services to the consumers. Marks and Spencer provides services on
online platform as well as it also have stores across the globe. The company even focuses on
investing in warehousing and according to the data collected by Strategic consultant M&S has
secured a warehouse in Bradford which will serve as an automated retail store, National
Distribution centre of food and clothing business (McWilliams and Siegel, 2011).
Marketing and sales: The firm make use of strategic marketing techniques to promote
and convince customer to buy its product and services. M&S provides different ways to buyers
to access over their products like, stores or by using online services through mobile phones, or by
catalogue. Strategic consultant also noted that the organisation has 60 percent of its buyers
shopping through web services.
Services: This aspect of the firm include every feature which will enhance the quality of
products and services offered by M&S to its consumers (Madsen and Walker, 2017). The
organisation also understands that it is essential for the retail industry to have brand loyal
customers which can be only possible by offering great and attractive customer services.
Besides, the company also improved its delivery services by offering customer free delivery on
and above the order of 50 pounds in free return policy within 35 days.
TASK 4
Explain the possible strategies that the company can follow to defend its core business
In order to defend the business competition M&S can use SPACE matrix to evaluate its
position in market which includes:
Internal Factor
 Financial Strength comprises three sub-factors of the company which are, revenue
growth, liquidity and return on assets.
 Competitive Advantage consists of market share, brand image and product quality which
the company is offering to its buyers.
External factors
8

 Environment Stability of the Marks and Spencer comprises Inflation, environment and
demand.
 Industry strength of retail company consists of barriers, growth and competition
Strategic consultant have evaluated these factors of M&S company and analyzed that
recently the strategic position of company is Aggressive while the strength is moderate. Hence,
this states that the firm need to innovate new products and services in order to establish stability
in market and enhance the growth and development. Besides, the organization can execute the
new market plan for improving its market share where it should focus on building the brand
value. (Igartua, Garrigós and Hervas-Oliver, 2010).
TASK 5
Recommend the resource's implication to the firm.
It was a pleasure being a strategic consultant of Marks and Spencer, It was amazing to
know that company follows so many strategic tools to analyse its market factors. However, the
except all these strategies company need to focus more on its promotional campaigns and
marketing plan. Instead of focusing on acquiring stores in every country M&S should enhance its
web services. Moreover, the firm should offer products and services on discounted prices orb on
schemes to attract more and more customers. Further, the organisation can also focus on
revaluation of its goods and services and even on reducing, recycling, and reusing. Henceforth,
using more strategic tools like, Value, rarity, imitability, and organisation (VRIO) and
Segmentation, targeting, positioning (STP) can help in growth and development of the company.
CONCLUSIONS
The report summarized that, Markers and Spencer the retail company who basically deals
with clothing has now expanded its market into food industry. Further, with the advancement of
technology the company is now offering its services online to its buyers but this development has
led to increase in competition within retail industry and supermarket chains. However, to reduce
the competition and to maintain the stability in the M&S uses several strategic tools and
techniques. Hence, the use of tools like Pestle analysis, Swot analysis and Porter five forces
model has helped the company in measuring its market performance and calculating threats
which helps to overcome risk.
9

PowerPoint Presentation
Slide 2
INTRODUCTION
 Strategic management is developing and implementing goals with the use of strategic
tools. These strategic tools act as pillar for the company development in the competitive
market.
 Further, this report will analyses the strategic tools and techniques used by Marks and
Spencer. M&S is the leading fashion retailer of UK, selling its products and services
across the globe.
 Moreover, the report will evaluate strategic capabilities and strategic frame work of the
company which will through light in more possible strategies which company can use to
improve its functioning and customer services.
 Hence, this report will assess over micro and macro environment of Marks and Spencer.
Slide 3
Strategic direction of Marks and Spencer
The company is following 3 strategical direction from past many years to maintain its
leadership and to have stable control over its customers. M&S focuses on establishing stability
among three factors which are as follows: Sustainable use of finite resources: The company's major motive is to make optimum
utilization of resources as the earth have limited resources so the firm believes that there
should be a finite use of resources in order to protect the environmental condition. M&S
ensure that the resources are utilized properly instead of wastage which can lead to
scarcity of water, electricity etc. Promote social equality: The retailer do not support discrimination on any behalf, so for
maintaining equality within in the organization, M&S from past many years is following
the legal framework of UK which supports equality. The firm has gained lot of customer
loyalty and market image because of supporting equality act. In contrast, the policies and
framework of M&S includes, The Equality Pay 1970, The Sec Discrimination Act 1970,
The Disability discrimination act 1995, The employment Equality Regulations 2003, The
Race Relations Act 1995 and many more.
10

 Promote healthier and sustainable lifestyles: M&S even tries to use renewable resources
which are easily accepted by the society as it protect the environmental creates healthy
environment to live. Moreover, the organization follows changing trends to stand out in
the market and to attract maximum number of buyers. Hence, to compete with the
changes and other retailers the manager follows the technique of evaluating the market
fluctuations on regular basis from past 5 years.
M&S focuses on becoming most sustainable retailer globally and for that the firm follows
and maintain its involvement with customers, avoids wastage, make maximum use of natural
resources. The manager of the company ensures the health and safety of its employees and keeps
a check over climatic changes which can affect the functioning of organization. Henceforth, the
success plans of M&S are segregated with two major key points which are deadlines and the
market demand every year. Moreover, the manager updates the strategic tools and techniques
every year as per the market fluctuations
Slide 4
Frameworks for strategic analysis
M&S analyse its internal capabilities and weakness with the help of strategic tool which is
SWOT analysis. The SWOT techniques to evaluate micro environment of the organisation
comprises factors which are described under: Strength: The company holds more than a thousand retail stores globally, slow and
gradual expansion of firm is increasing competition in UK retail industry. Further, the
M&S is operating and selling its services in 59 territories across Asia, Middle east and
Europe. Moreover, the company has expanded its market in food industry and its food
business is gaining the major market of Europe and Hong Kong. Besides, The company
has shifted its focus to delivering its services online which has increased the net turnover
of M&S and its distribution channels with increasing customer satisfaction (Teece,
Pisano, and Shuen, 2010).
 Weakness: The major weakness of M&S is its clothing section, the company holds many
segments but lacks the branded costumes and today's generation prefer only branded
clothes, so the company need to develop its brand market in order to serve customer
satisfaction. Moreover, the company do not have stock control system like sometimes
when there is bulk of stock in for delivery than the firm losses its control over stock and
11

information technology system and customers complaints that the item in the ordered list
are either missing or defective which affected the market image of Marks and Spence for
long term. Besides, the retail company hold many stores which are not needed and
because of which the organisations has to pay rents for the stores which are not even
required.
 Slide 5
Continue.
 Opportunities: Since the clothing industry is slowly loosing its sales, still the Marks and
Spencer have a strong hold over its profits and customers. Further, the expansion in food
industry services has benefited the sales of the organisation for long term, so the
company has a chance to provide its food services online to grab the opportunity and to
increase its food distribution channel. The firm has six million online buyers connected
with the company and still counting. Hence, the company has started its market in 1985,
and till now it has covered most of the global market which shows the development in
growth and opportunities for the company.
Slide 6  Threats: The company is majorly affected by the recession in the economy which
has decreased it sales in 2009 and continuous decline till four years has affected the net
turnover of Marks and Spencer. Moreover, the leading company has dropped its position
according to its competitors like Asda and Primark. Besides, the fluctuation in political
and economic factors is affecting the growth of business from past many years. In
contrast, the major threat is faced by the stores of M&S which are located at attractive
locations as those places are first target of terrorism attacks.
Slide 7
Competitive advantage among its direct competitors
• Threats of new entrants: Basically, the retail companies have new entrants as the UK
economy has no barrier for entry and exit but still there are less new entrants as entering
in retail market need lot of capital investment and risk as establishing market in new
economy can be risky. Besides, if there are new entrants than they are affected by the
12

loyalty of customers towards Marks and Spencer. Hence, online fashion retailers are
giving major competition to the company from past 5-6 years.
Slide 8
Continue….
 Threat of substitute products: Retail market is based on regular innovation and creation
and it is difficult of one company to manage with all the changes in market trends.
Moreover, the clothing business faces the risk of copying or imitating the designs and
selling them at lower price according to market leaders which affects the probability of
Marks and Spencer.
Slide 9 Bargaining power of buyers: In retail industry bargaining power of buyers are high,
according to this power of consumers M&S faces the shift in customers towards other
stores as they are price sensitive. Hence, the weaker costumer confidence affects the
growth and development of the company as it has to sown down its prices according to
customers needs and wants. Bargaining power of suppliers: In Marks and Spencer maximum suppliers were British
and their bargaining power was very high from comparatively from local suppliers.
Further, according to the figure, it has been noticed that 1990 the company faced a
decline in its sales which lead them to outsource globally with overseas suppliers at more
competitive prices. Henceforth, it has been noted that now the bargaining power is low
comparatively from past 4-5 years.
 Intensity of competitive rivalry: The company deals in the industry which has strong and
continuous growing competition from other retail and supermarket firms. The major
competition of M&S is Tesco, Morrisons, Asda, Aldi and Sainsbury. Moreover, the
competition is increasing as these companies are selling its similar goods and services at
almost same price through online platform. Online shopping gives the buyers chance to
compare the prices and quality of similar products which affects the profitability and
growth of organisation.
Slide 10
13

Mission, vision of M&S
• Mission Statement of Marks and Spencer focuses on “developing the inspirational quality
attainable to its customers”
• Vision M&S is to “set standards which are reflects values and inspire emotion”
Slide 11
Continue….
• The mission and vision statement of the M&S company supports their employees to
provide the services as per the market demands of their customers to meet the
competition and to hold their existing employees and to make the new one.
• The mission of the company is to provide an innovative and excellent quality of products
to their customers. M&S tries to provide the best quality products make its customers feel
that there is high value of spending so much money.
• M&S has made planning to face and beat the competitors and for to provide their quality
services to its customers to focus on the encouraging standard for developing. The vision
of the company is to sets the standards of living and shows the emotions. The company is
providing its best services and quality to its customers but it also wants to become food
specialist to grab the food market (Trigeorgis and Reuer, 2017). Moreover, the firm has
the strong tradition of corporate its social responsibilities and will not compromise with
the quality, value, services, innovation and trust. The retail company wants their
customers to stop and see at their workforce as an important part of their plan.
• Hence, M&S follows all the legislation and the laws by the government to make sure
quality of their product should remain the same. They also spend a lot of amounts in
advertising their products to have an increase in sells and to position their products in
existing as well as new customers mind at the first (Beske and Seuring, 2014). M&S has
the mission and vision to serve their customers with the best product with all the
measures keeping in mind that the quality of their product should not decrease.
Slide 12
14

It is necessary for the companies like Marks and Spencer to analyse its external
environment. Further, the company uses strategic tool to evaluate its macro environment which
is PESTLE analysis. Pestle factors of the firm are as follows:
Political factors : The company follows the set of regulation as per the health and safety
standards of the British government which includes the identification of hazard, assessment and
control of risk. Further, if the company does not follow the regulation the company will be
forced to shut down. Marks and Spencer did not follow the Health and safety standards and were
charged for this.
Economic factors : As people do not have spare cash to spend on the luxury items like
clothes and foods the retail market was heavily affected by this. M&S have faced problems and
beard heavy losses as a result they have to close many stores and have cut their staff. M&S is
affected by its competitors discounted price. They emphasis on high quality product and can bear
short term losses. The customer faith and confidence towards the brand has encouraged them to
provide the best quality.
Sociological factors : These factors cannot be controlled directly but can defiantly affect
the business and its marketing strategies. M&S wanted to stretch the business so they thought to
sell online food to become a multi chain retailer and to keep the competitive market. They need
to keep the factors in mind which influence their business like demographics, culture, age, etc.
Technical factors : Technologies keep changing very rapidly so to keep the brand at first
in customers mind the companies should continuously communicate to their customers. The big
brands or markets like M&N often spends or have a huge budget for advertisements for the brand
awareness among their customers to retain the old one and to connect to the new. Brands like
M&N has celebrity for the advertisement through TV, websites modelling, Magazines. The
customers are now more focused and prefers the mobile commerce and online retailing to
purchase. M&S should build a digit medium to take full advantages.
Legal factors : M&S makes sure that their laws of legislation and all the issues related to
the health and safety are updated and retrained as the laws of legislation keeps on changing.
Retraining involves the changes in taxes, changes in business policies, changes in product selling
polices and in many more things. M&S thinks that the methods and the objectives should be
changed timely for better development.
15

Environment factors : M&S introduced their own green policy which they named as ''
plan A '' as the chief executive of the company says that they have no '' plan B ''. They have
recently extended their plan to 180 countries to become worlds most suitable retailer. To re-
engineer M&S has announced a 5 year 100 point plans to recovery from the carbon neutral, zero
waste to the land, suitable sources and heath promoting business.
Slide 13
Strategic capabilities of the firm
• M&S uses value chain analysis to analyses its internal capabilities. Strategic analysis of
the firm is follows:
• Inbound logistics:Theses are activities which are related with storing, receiving and
distribution of resources for production process. Besides, the company also won the
Global business services supply chain award of following the strategical direction like,
sustainability, and equality (Harrison, Bosse and Phillips, 2010).
• Operations: The organisation is continuously focusing on improving its customer
services and as per the strategic consultant M&S has developed its customers since 2016
through inspiring and effortless experience. The company is investing capital for
improving its information technology system so that it can enhance the supply chain
management of the firm (Melville, 2010).
• Outbound logistics: Theses are activities which are related with storing, receiving and
distribution of goods and services to the consumers. Marks and Spencer provides services
on online platform as well as it also have stores across the globe. The company even
focuses on investing in warehousing and according to the data collected by Strategic
consultant M&S has secured a warehouse in Bradford which will serve as an automated
retail store, National Distribution centre of food and clothing business (McWilliams and
Siegel, 2011).
Slide 14
Continue.
• Marketing and sales: The firm make use of strategic marketing techniques to promote
and convince customer to buy its product and services.
16

• M&S provides different ways to buyers to access over their products like, stores or by
using online services through mobile phones, or by catalogue. Strategic consultant also
noted that the organisation has 60 percent of its buyers shopping through web services.
• Services: This aspect of the firm include every feature which will enhance the quality of
products and services offered by M&S to its consumers (Madsen and Walker, 2017). The
organisation also understands that it is essential for the retail industry to have brand
loyal customers which can be only possible by offering great and attractive customer
services.
• Besides, the company also improved its delivery services by offering customer free
delivery on and above the order of 50 pounds in free return policy within 35 days.
Slide 14
Possible strategies
• Internal Factor
• Financial Strength comprises three sub-factors of the company which are, revenue
growth, liquidity and return on assets.
• Competitive Advantage consists of market share, brand image and product quality which
the company is offering to its buyers.
• External factors
• Industry strength of retail company consists of barriers, growth and competition
• Environment Stability of the Marks and Spencer comprises Inflation, environment and
demand.
Strategic consultant has evaluated these factors of M&S company and analysed
that recently the strategic position of company is Aggressive while the strength is
moderate. Hence, this states that the firm need to innovate new products and services in
order to establish stability in market and enhance the growth and development. Besides,
the organization can execute the new market plan for improving its market share where it
should focus on building the brand value.
• Competitive Advantage consists of market share, brand image and product quality
which the company is offering to its buyers.
• Industry strength of retail company consists of barriers, growth and competition
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Slide 15
Recommend the resource's implication to the firm.
• It was a pleasure being a strategic consultant of Marks and Spencer, It was amazing to
know that company follows so many strategic tools to analyses its market factors.
• However, the except all these strategies company need to focus more on its promotional
campaigns and marketing plan. Instead of focusing on acquiring stores in every country
M&S should enhance its web services.
• Moreover, the firm should offer products and services on discounted prices orb on
schemes to attract more and more customers. Further, the organisation can also focus on
revaluation of its goods and services and even on reducing, recycling, and reusing.
Henceforth, using more strategic tools like, Value, rarity, imitability, and organisation
(VRIO) and Segmentation, targeting, positioning (STP) can help in growth and
development of the company.
Slide 16
CONCLUSION
• The report summarized that, Markers and Spencer the retail company who basically deals
with clothing has now expanded its market into food industry.
• Further, with the advancement of technology the company is now offering its services
online to its buyers but this development has led to increase in competition within retail
industry and supermarket chains.
• However, to reduce the competition and to maintain the stability in the M&S uses several
strategic tools and techniques. Hence, the use of tools like Pestle analysis, Swot analysis
and Porter five forces model has helped the company in measuring its market
performance and calculating threats which helps to overcome risk.
Slide 16
References
 McWilliams, A. and Siegel, D. S., 2011. Creating and capturing value: Strategic
corporate social responsibility, resource-based theory, and sustainable competitive
advantage. Journal of Management. 37(5). pp.1480-1495.
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 Melville, N. P., 2010. Information systems innovation for environmental sustainability.
MIS quarterly. 34(1). pp.1-21.
• Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management.
Supply Chain Management: an international journal. 19(3). pp.322-331.
• Ethiraj, S. K., Gambardella, A. and Helfat, C. E., 2017. Reviews of strategic management
research. Strategic Management Journal. 38(1). pp.3-3.
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REFERENCES
Books and journals
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Management. 37(5). pp.1480-1495.
Melville, N. P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly. 34(1). pp.1-21.
Teece, D. J., Pisano, G. and Shuen, A., 2010. Dynamic capabilities and strategic management.
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Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management. Strategic
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Winter, S. G., 2014. Understanding dynamic capabilities. Strategic management journal. 24(10).
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Online
SWOT Analysis of Marks and Spencer 2016. [ONLINE]. Available through <http://research-
methodology.net/marks-spencer-ms-swot-analysis/>. [Accessed on 26th July 2017].
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