Unit 32: Business Strategy - Marks & Spencer Strategic Analysis Assignment

Introduction Of Strategic Growth Management Plan Assignment

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A strategic plan is a procedure in which companies leader describe their vision for future goals and identify their organization's objectives. The procedure includes establishing the succession in which those goals should be realized so that the company can reach its stated vision. It helps to examine its weaknesses, strengths, resources available, threats, and opportunities. Strategic development seeks to expect future business trends.The report has mentioned Marks & Spencer’s environmental examination and strategic development management plan based on external and internal factors. This typically represents medium to long-term goals with a life length of 3-5 years (Kang and Hwang, 2018).

The report has including suitable framework analyzing the influence and critically evaluates the impact of the macro surroundings on Marks & Spencer and its business strategies. The report has critically evaluated the macro environment to conclude and notify planned organization decisions. The report has highlighted the internal environment and capability of Marks & Spencer using the appropriate framework. It has significantly evaluated the internal environment to review the strength and weakness of a firm’s inner capabilities, organization, and skill set. It has covered porter’s five forces model that appraises the competitive force of a given market subdivision for an organization. The report concludes with suitable strategies to improve market position and cutthroat edge based on the outcome and range of theory to produce a strategic management plan for an organization (Stipi?, 2021). Along with this, the report has included an analysis and understanding of data and information applying competitive analysis and environmental to create a set of appropriate strategic information and objective and tactical action.

Figure 1: Marks & Spencers

The influence and impact of the macro environment and its strategies

Marks and Spencer includes the retail of food, clothes, home, and many other products. It operates its business in the UK and international geographical segment. The segment consists of retail commerce operations and franchise operations. The worldwide segment includes the company's owned business in Asia and Europe, and the global franchise operations (Frei, et. al. 2020). The company is operated in 1884 and has headquartered in the UK. Strategy of the corporation is to outlook a energetic strength that incessantly looks for opportunities and identifies initiatives which will take advantage and complete that initiative quickly and efficiently. Strategic planning is an enduring process by which a business sets its onward path by conveying all of its stakeholders mutually to look at the current reality and describe its vision for future goals (Ayarza, and Godoi, 2021).A strategic business organization is a continuous process by which a company creates and sustains a successful path that moves the corporation in the way it needs to move for long-term success. It spans from formulation and research to evaluation, execution, and adjustment.

Critically analyze macro environment to determine strategic management decision

Marks and Spencer is the oldest retail store which is operated in the UK dealing with products such as household products, food, clothing, and many more. However, in the recent era, the corporation has announced the closing of several stores (Dunn, et. al. 2018). The company’s macro examination is a planned device to revise the macro environment of the association. PESTEL stands for economic, social, political, technological, environmental, and legal factors that force the macro environment of the crowd (Olagunju, 2018). The transform in the macro-environment factor has a throughout impact on the company and also can impact further company in the Retail business.They can impact an company’s competitive advantage and on the whole profitability level of the customer services industry.

• Political: this factor plays a crucial position in formatting the factor that can impact Marks & Spencer in long-term productivity in the market. The company is in service its retail in many countries and exposes itself to diverse types of political systems and environmental risks. To achieve accomplishment, in such a retail business across various global markets is to diversify the organized risk of the political environment. The company can intimately examine the following factor before spending in a certain market.
• Economic: this factor includes the saving rate, inflation rate, interest rate, foreign exchange, and financial sequence to conclude the collective demand and investment in an economy.The micro environment factors include rivalry norm which impact the cutthroat advantage of the firm. The firm can use the nation's factors like price rises and industry’s economic indicator, growth rate, customer expenditure, etc to approximate the growth route of the sector and the organization.
• Social: different cultures and means of responsibility things impact the company in an environment. The attitudes and shared belief of the people plays an immense role in how marketer at Marks & Spencer will appreciate the consumers of the marketplace and how they plan the marketing message for retail industry consumers.
• Technology: it is fastest innovative factor that is disordering various industries across the world. A company should not merely do a technological examination of the industry but as well the speediness at which knowledge disrupt that business (Christodoulou and Cullinane, 2019). The slower rapidity will give additional time whereas the quick pace of technological disturbance may give a corporation a small time to cope and be profitable.
• Environmental: the dissimilar market has different standards and norm which can impact the productivity and profits of the firm. Even inside a country often state can have dissimilar laws and regulations. Before ingoing new markets or opening a new industry in its obtainable market the company should suspiciously analyze and assess the environmental norms and standards that are necessary to purpose in those markets.
• Legal: these legal frameworks and institution are not healthy sufficient to defend the academic property rights of the company. A business should cautiously assess before ingoing such markets, as it can guide to stealing of company’s secret pulp thus the overall competitive edging.

The internal capabilities and environment of using appropriate frameworks

Marks & Spencer is functioning in a tremendously focused situation and there are lots of variables that influence the company. As they work in many products like cloth food, and home and splendor things they require managing a lot of contenders. The case company’s customer helps in stand for of the corporate workforce that provides high-quality service with their eagerness and obligation to make sure they convey the service according to the customer’s prospectus. The introduction of goods is only achievable with the best advertising and marketing approaches. The company attracts its consumers by advertising its products at every event and occasion. The company's online platform includes a website, marksandspencer.com which is another fundamental source of encouraging its products and diverse offers. Significantly, the company promotes its website outlet and in-store to the public that is not aspiring to shop primarily but later might desire to look through the website and turn out to be valuable customers (Salim, et. al. 2019). Customer satisfaction and assistance is the main concern for Marks & Spencer. The company without satisfying consumers' businesses cannot run its trade operations for a long time. The case company is providing good consumer services at the outlets. The Customers at the company’s stores can depart their feedback freely, which helps the company to attract a large number of customers.

The internal environment to evaluate the strength and weakness of an organization inner capabilities, structure, and skill set

SWOT analysis is an established organization framework that enables Marks & Spencer to standardize its performance and business as compared to the competitors. The company is one of the leading brands in the retail and lifestyle sector. The company can use SWOT analysis which will help in focusing on constructing its opportunity and strength while addressing its weakness as well as threat to improve its market position.

Strength: the company is well-experienced and has been in the marketplace for the past 135 years. It is a leading retail business in the UK and has begun its retail business in the global market. The company has made big partnerships across the world. It is a recognized brand with a good reputation in the global market. They have a good name for providing superior products to their customers in the market. It is a multinational company and has operated its business in many parts of the globe. Marks & Spencer does not only have an online store, other than that it also got an offline physical store (Voskresenskaya, et. al. 2020). These store outlets have helped the company to enlarge its business worldwide. The case company offers a variety ofinnovative and up-to-date productsto its customers. The firm has made very good relations with a local farmer to transport fresh products and serve up to customers. The company supply chain shows that it has about over 500 suppliers with 700 sites located in 45 countries worldwide. They have given a position to a large number of well-known designers of different brands at its stores.

Weakness: There is a perception in the middle of the citizens that Marks & Spencer does not offer garments to teenagers and young age groups. Many recognize that the firm serves only older customers. Although this observation is wrong it has affected the company a lot. Another weakness of the company is that it heavily relies on physical operations. It consumes a lot of time and is costly. A lot of old firms and organizations have now adopted the newest technology to automate various processes. If the firm adopts the newest tech, then it will help the brand to save cost and time, and become more efficient.

Opportunities: the company is a multinational brand and has opened up stores in areas like Russia, India, Brazil, Poland, Indonesia, and many other countries. Now the firm needs to make bigger business in those countries. The brand has to play a dynamic role by growing more and more franchises in those countries. It also has an online store located in different areas. But when we evaluate the firms position with other globes leading online retaile-commerce outlets like Amazon, Etsy, and eBay. Then the company is distant behind in the competition. Yet the company is well experienced, old, and innovative and has a strong brand image. Market segmentationis the procedure of separating the customer segment based on different groups which have the same characteristics (Benzaghta, et. al. 2021). Looking at the strategy of the company it follows a similar principle of opening up extra-large stores everywhere. If the firm follows the consumer segmentation strategy of the contribution of products based on the need of customers.

Threats: Theretailindustry in the UK and all across the globe is getting very competitive. several main competitors of the case company are Tesco and eBay. Amazon, John Lewis, and many other high competitors. If the firm does not change its marketing strategy, then it will weaken in the market slowly because the company’s competitors are very strong.

Porter’s five forces model to appraise the competitive forces

Porter’s 5 forces analysis of the case company covers the firm’s competitive background and factor affecting its industry. The examination focus on determining the firm’s situation based on services like the threat of substitutes, the threat of new entrants, the bargaining influence of buyers, bargaining influence of suppliers, and cutthroat rivalry. The company's five forces study helps to examine its present situation in the marketplace on the basis of multiple external and internal factors such as customer, supplier, competitor, financial strength, future scope, and interchange solution.

threat of entry: is tough for the company to have a innovative competitor in its industry because of the high outlay of entrance and continuation needed in entering the garments market. The company is knowledgeable and innovative in its field for a long-time and has division channels and price advantages over new entrant due to its information in this field.

Bargaining power of buyers: it is high in the case of Marks & Spencer. The customers were moreover looking for traditional clothing that became cost sensitive or looking for high reflection to became fashion responsive. The company’s competitors were more focused on consumers which take away its potential customers.

Bargaining power of suppliers: The case company has bought directly from a few UK supplier all the supply that they construct which shaped circumstances where the contractor was dependent on Marks & Spencer and vice versa (Bruijl and Gerard, 2018). The bargaining influence of suppliers is moderately low because a company was intense purchases from a small number of suppliers simply.

Of Strategic Management Plan AssignmentThe threat of substitutes: It reduces consumers demand for a particular group of product because consumers can exchange the substitutes. In the clothing retail firms, there is a lot of retailer working with import at a lower price.

Competitive Rivalry: it is probably high because there is the danger of substitute goods and buyers and suppliers in the market effort to control. The company has face the threat of competitive competition due to other firms entering its market with similar quality products and with affordable prices and innovative fashion.

Appropriate strategy to get better market position and competitive edge

Strategy development is the future map of the company, and where they want to move. The analysis of the plan development of Marks & Spencer is explained in theory by using Ansoff matrix. The company is selling its brand products where its goal is to provide quality products and customer fulfillment. Market penetration has been contributing to the company for a long time. Market dispersion is an expansion strategy where the company focuses on selling its existing products into an existing market. It looks to accomplish 4 main objectives i.e. to maintain market share of existing products which can be achieved by a mixture of competition, advertising, pricing strategy sales promotion, and possibly more resource devoted to personal selling.Market expansion is a plan where the company looks to put up for sale its existing product into new markets. (Dawes, 2018). This might entail an investigation of the new segment of a market, new use for the firm’s services and products, and new geographical areas to attract new customers (Chikwe and Biriowu, 2020). Product development is a plan where a company aims to carry new product into existing market. This strategy may need the expansion of new competition and require the company to develop modified products that can appeal to exist market. Diversification is an intrinsically more risky plan because the company is moving into a market in which it has small or no knowledge, which can be hazardous in terms of which strategy to use.

Theories, models, and concepts, interpret and devise strategic planning

Strategic management involves the procedure of defining a company’s strategy, monitoring, and implementation to make sure the strategy achieves gives desired results. It involves a procedure that involves the agreement on the importance of the procedure and the beginning of the strategic management procedure. It provides clarification of the firm’s mission, objectives, and current market and business strategy. This provides an analysis of the company’s external environment which engage the opportunities and threats available to recognize stakeholder and importantly their major interests (Kubiniy, et. al. 2019). It helps in assessing strategic issue which faces up to the company in generating strategic option and selecting those wanted for accomplishment and the eventual realization of the chosen strategy and a monitoring review of the performance of the chosen strategies.

Marks & Spencer has invested in huge number of in-store, sub-brands, and has enhanced customer experience in-store, thus gathering the altering need and demand of its customers. Outbound logistic is apprehensive with the storage space, transfer, and delivery of products going out of a company. The company has numerous channels of operation that allows customers flexibility in terms of delivery and order options, including online shopping. The advertising strategy of a company is to emphasize the style and superiority of its products. Despite several drawbacks in-store, such as a growing amount of out-of-stock items and online services, the case company has set its cutthroat rivalry position base on some significant factor that offers a tough edge over rivals as well as a competitorin the consumer markets.

Model used for strategic planning

A value chain examination is a strategicTheories, models, and concepts, interpret and devise strategic planning framework that is used to recognize the activities of an organization that guides the formation of a product or a service.Inbound logistic is apprehensive with the storage space, convey, and release of product approaching into a business. The firm is in front of its rivalry as regards the environmental and social impact of company (Muflikh, et. al. 2021). Its supply chain is connected to target and back by a financial incentive for its trade team including moral energy competence, trade, and sustainable foundation, and is helping to make the company world’s most sustainable retailer.

Theories used for strategic planning

Marks & Spencer's competitive advantage strategy can be implicit in porter’s generic and concentrated growth form. The consumer base sales growth and expansion objectives are gained by the focus on the most suitable concentrated growth strategy based on 3 generic strategy streams i.e. differentiation, cost, and focus (Suleman, et. al. 2019). the concentrated growth strategies adopted by Marks & Spencer is to achieve growth target including product development, market penetration, market development, and diversification.

• Cost leadership is the major general approach that the company uses in a variety of customer markets. The main purpose of by means of this plan is to protect the marketplace leadership situation through well-organized value chain management. This approach allow the company to make bigger the market share and value by aiming at the middle-class segment, which make the main fraction of the overall customer market mix in the majority of the countries.
• The company uses differentiation in a mixture by means of the cost leadership approach to accomplish growth objectives to develop the consumer base by emphasizing distinctive produce features.
• Focus is the 3^rd competitive strategy to encourage firms to focus on their resources on increasing the scarcely targeted segments (Islami, et. al. 2020). When a company adopts the focus approach, they supply particular market segment and base its competitive advantage on recess marketing. The case company adopts the focus plan both in conditions of contributing the best value and low cost.

Figure 2: porter's generic strategy

Strategic management plan that has tactical and tangible strategic priority and objectives

Planningis a necessary part of every organization, whether it is in the form of laying out a planned framework or making unforeseen event plan for an emergency. Companies that are not well-planned may face severe consequences. Strategic planning looks at the long-term goal and issues of the company and also helps to develop a plan for growth and change of business operations. Operations development focuses on day-to-day operations and issues which include staffing levels and inventory quantity.Tactical development is used to achieve the goals set out by operational and strategic planning. Tactical planning includes short-term goals, objectives, and tasks intended to generate specific results within a partial period. Strategic planningis an organization process that is important for a company's long-term direction, vision, and actions (George, 2019). If the organization wants to expand its business globally, it will need to describe its present situation which may include map out all its resources, setting goals for what they want to achieve, and assessing how many resources are available in a variety of areas.

Recommendation

Marks & Spencer is doing well in their retail business all around the world while generating good revenue and sales. But for making the future secure and safe a firm needs to advance its business, as the company's competitors are well-sustaining their business in the global market by using a variety of promotional technologies and tools. The firm should provide innovative services to its consumers by using the most modern technologies in the business segment through e-business and e-commerce. They need to expand their business all over the globe, especially in countries like India Nepal, and China. There is an immense need for the case company to get better its measures on its suppliers, operations, logistics, store designing, outline, and many more. The company's warehouse should take complete clear of old stock to provide a way to new up-to-date goods. The wrapping of the firm’s product should also be specified due consideration to attract a large number of customers to the brand. It is recommended for the case company to consider purchasing supplies from the global market to save costs, and to provide customer products at affordable and less prices (Kurpiela and Teuteberg, 2022). There is also a need for the company to revamp its store in the way and new areas that give convenience, space, and comfort to consumers while fitting browsing, and shopping. The company’s management should get rid of delay in the decision creation and the effective use of digital manufacturing systems. The companies need to hire perfect, enthusiastic, punctual, innovative, honest, and responsible employees within the organization to accomplish common goals.

Conclusion

The above report has concluded with the strategic growth management and macro as well as the microenvironment of Marks & Spencers. The above report has stated SWOT analysis and PESTLE of an organization which helps the corporation make their strategic goals and objectives and accomplish them. The report has assessed porter's five forces framework which helps the firm to gain a competitive advantage and improve its market position. The range of theories and concepts are estimated which include porter's generic strategy and Ansoff matrix to produce a strategic management plan. The report has concluded the explanation of data and information to provide a set of suitable strategic direction and objective.

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