MARKS & SPENCER

Business Strategy - Marks & Spencer

LO3 - Understand Approaches to Strategy Evaluation and Selection3

3.1 Analyse Possible Alternative Strategies Relating to Substantive Growth, Limited Growth or Retrenchment for Chosen Organisation.3

Cost Leadership4

Differentiation5

Focus5

Value System5

BCG Matrix6

Product Market Mix7

Diversification and Synergy9

Divestment Strategy9

Methods of Growth in the Local Market10

Methods of Growth in an International Market10

3.2 Select an Appropriate Future Strategy for Chosen Organisation.10

LO4 - Understand How to Implement a Chosen Strategy11

4.1 Compare the Roles and Responsibilities for Strategy Implementation for Chosen Organisation.11

4.2 Evaluate Resource Requirements to Implement New Strategy for Chosen Organisation12

Resource requirements for implementation of the plan will be as follows:12

4.3 Discuss Targets and Timescales for Achievement in your Chosen Organisation to Monitor a Recommended Future Strategy.12

References15

Business Strategy - Marks & Spencer

LO3 - Understand Approaches to Strategy Evaluation and Selection

3.1 Analyse Possible Alternative Strategies Relating to Substantive Growth, Limited Growth or Retrenchment for Chosen Organisation.

Substantive growth strategies are actualized through two principle elements. Merger is the mix of two separate organisations, commonly as equivalent partners (Johnson et al, 2011). The Marks and Spencer has more potential to implement merger as a substantive growth strategy because of its market strength. The acquisition includes one firm assuming control and responsibility for the other (Pfeffer, 2009, 79 - 105). This substantive strategy also can be implemented by Marks and Spencer since it has more market power in the industry.

Aaker (2009) presents the idea of joint ventures as limited growth. At the joint ventures, two or more associations share possession. In a joint venture, generally the competitive advantage is slim (Aaker, 2009, 2-9). Since Marks and Spencer has more market share in the industry, it is not advisable for limited growth strategy.

Retrenchment is a dependable remedial movement. These movements are taken at the phase of wastefulness, recession or solid rivalry. In the event of inefficiency, the business needs to take three retrenchment strategies, specifically a procedure of reducing assets, decrease in cost techniques and income generation methods (Pradhan, 2006, 106-116).

For retail giants such as Marks and Spencer, in order to obtain a competitive advantage that can be sustained and must follow either one of the three generic strategies, developed by Porter. The strategy focuses on the ability of Marks and Spencer to control the cost of its operations as well as the price it has to pay for its products competitively and hence it would be in a position to be able to produce high margins of profits, and therefore; have a significant competitive advantage. The last strategy approach may be a differentiation or cost leadership strategy deals on a cantered narrow market. To execute cost leadership strategy that Marks and Spencer focuses on in order to create effectiveness internally that will help them to resist pressures externally (Cuthbertson, 2011, 64-71).

According to this framework, while both the differentiation and the low cost leadership strategies helps to capture the broader market, Marks and Spencer can also choose to limit their product to market areas or may choose to offer a limited line of products to the market in ...