Strategic Analysis

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Strategic Analysis of Marks & Spencer

Word Count: 3212


Company Background1

Analysis of Macro-Environment2

Political and Legal2



Analysis of Micro-Environment4





SWOT Analysis6


High Quality6

Strong Brand Image6

Shopping Environment6


Lack in Clothing Designs and Colors6

Stock Control7

Internet Technology7

Developing New Markets7

Targeting Younger Generation7


Strong Competition8

Change in Social Environment8

Strategy Formulation8

Strategy Implementation10




Strategic Analysis of Marks & Spencer


In this world of change and competition, building strong strategies are very important for an organization in order to survive. In this report we will discuss how the internal and external forces influence the strategies of a business of the company Marks and Spencer. It will tell us about how the critical decision making is done at the organization and how business strategies are evaluated and modified. The important findings of this report are that Marks and Spencer has successful marketing plans and business strategies which have helped them to grow and maintain their position in the market and how they have used different strategies to attract customers around the globe.

Company Background

Marks and Spencer is a leading British multi-national retailer. It was founded in 1884 and the headquarters is located in City of Westminster, London. It spreads through Asia, North America and Europe. It has more than 350 stores, and around 66,000 employees. They started their business as a small stall in Leeds where all of their products were sold for a penny. Today, the company deals in household products, clothes and food. The food segment gives tremendous growth to the company, but the segment which is worth improving and has led the company to slow down its profits is the women's wear (Bolland, 2013, p.8), about 49% of their sales is generated from clothing business where as 51% of the sales is generated from their food business. The company has a record of holding a successful business since it is established and has good reputation in making quality products. It is famous for its innovation and reasonable price which creates value for their customers (Company overview, 2014). The company has a working environment which is free from all kinds of discrimination and harassment; it provides equal opportunities for every employee (Grayson, 2010, pp. 1017-1026). They also have adopted a provision of giving incentives to employees in order to motivate them (Mellahi, 2002, p.16).

Analysis of Macro-Environment

There are several factors which are broad and present in the external environment and has a direct impact on any organization. These factors include political, technological, legal, social and economic. It is also known as PEST analysis. By looking at these factors it will help an organization to analyze how much these factors can affect Marks and Spencer in building their business strategies and decision making.

Political and Legal

It involves following the Government rules, regulations and policies. Before making any decision organization must look around for government policies and global organization systems.


Several organizations become a victim of Economic factors ,as it affects them to expand their business or to retrench it. Taking an example of the 9/11 incident, the United States has caused many companies to face the recession in Europe ...
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