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ASSIGNMENT TITLE
The Production of Strategy Plan for M&S
UNIT CODE: H/602/2330
JUNE, 2013
Assessor: AlhassanYahaya
Submit by:
Shyam HariMaharjan
Student ID: 4481
Table of Contents
Introduction ................................................................................................................................ 2
1. Importance of external factors affecting the M&S ................................................................ 2
1.2 Analyse the needs and expectations of stakeholders of M&S ............................................. 3
1.3 Analyse external environment that affect the strategy of M&S .......................................... 4
2.1 Tools to analyse the effects of current business plans of M&S ........................................... 5
2.2 The position of M&S in current market ............................................................................... 6
2.3 Evaluate the competitive strengths and weakness of M&S ................................................. 7
3.1 Modelling tools to develop strategic options for M&S ....................................................... 8
3.2 Review the comparative analysis of M&S........................................................................... 9
3.3 Options for M&S future strategy ....................................................................................... 10
4.1 Propose Organisational Structure for M&S ....................................................................... 10
4.2. Develop criteria for reviewing potential options for a strategic plan ............................... 11
4.3 Strategic plan for M&S ...................................................................................................... 12
5.1 Compare core organisational values with the current business objectives of M&S .......... 13
5.2 Develop appropriate Vision and Mission statement for M&S........................................... 14
5.3 Produce agreed future management objectives for M&S .................................................. 14
5.4 Develop measures for evaluating strategy plan ................................................................. 15
6.1. Develop a schedule for implementing a strategy plan in M&S ........................................ 16
6.2 Create appropriate dissemination processes to gain commitment from stakeholders ....... 16
6.3 Monitoring and evaluate the success ................................................................................. 17
Conclusion ............................................................................................................................... 18
References ................................................................................................................................ 19
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Introduction
This report is focuses in the external environment of business and how it affects the operation
and business plans of Marks and Spencer. It used various modelling tools for developing the
best alternatives during strategic planning. Furthermore, it evaluates various impacts of the
strategic plan in the business. Todays market is highly competitive, so that proper plan and
implementing at the right time gives the best opportunity for M&S.
Marks & Spencer are one of the UKs leading retailers, with over 78,000 people working across
the 700 UK stores. It offers stylish, high quality, great value clothing, home products, as well
as outstanding quality foods.
Marks & Spencers leading position in the highly competitive marketplace depend on its ability
to stay one step ahead of other retailers, because of highly imaginative people, who can set
objectives, establish priorities and allocate proper amounts of time to achieve business
objectives (Spencer, 2013).
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Envir
onme
ntal
Tech
nolog
ical
Politi
cal
PESTEL
Analysis
for M&S
Econ
omic
al
Social
b) Economical: The UK economy has still not fully recovered so it is threats for M&S. The
rise in the unemployment rate, freezing payees and benefit cuts might decrease the spending
habit of customers. It is adversely effects on sales of M&S. However it impact on operating
profit which hamper in commencement of new project.
c) Social: UK is the place of mix culture and races. Therefore, their lifestyles, attitudes, needs
and expectations are vary from each other. European people like ready meals whereas Asian
people likes fresh and quality foods. These changing behaviour of customer impact on selling
products. Although M&S launched different variety of foods in store to attract those
community. M&S is selling fresh, hygienic, high quality and competitive pricing items to
satisfy customer (Spencer, 2013).
d) Technological: The new technology is introducing constantly. So M&S need to update their
existing system with the latest design which helps to increase its performance. For example Emarket and social network bring this world in finger tips. This is the great platform to attract
their customers by promoting products on those network and providing various buying options
such as online shopping, mobile apps and convenient M&S getting success in achieving
objectives. However, the easy accessible website, greater choice and exclusive ranges and
offers boosted online sales by 16.6% in 2012/13 (Spencer, 2013).
e) Environmental: Environment regulators are more concerning on green environment and
climate change which is threat for M&S. It should spend more money on equipment that
prevent the environmental damage from use of various chemical in production house. But it
could be changed as opportunity by doing environmental awareness programme and
developing climate change strategy. Furthermore, implementing a carbon neutral program
across its stores, offices and warehouse could minimise the danger from carbon emission.
f) Legal: The legal entity ensures that every employees treated as equally without
discrimination, equal wages and wellbeing. M&S should need to comply all legal entities in
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the daily operations. Therefore, M&S paid competitive wages for their employees than national
minimum wages and develop a good working environment in the stores to implied health and
safety act. This increase the operating expense of M&S
Source:http://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-matrix/
1. Stars have high market shares and operate their business in competitive market. It holds the
leading position in the market, invest huge sum of money and generating positive return back.
Example: Lingerie M&S is holding as star position in the market because it was the place for
ladies underware at a time when choice was limited. Lingerie is still the UKs market leader
and a likewise high demands by customer with high growth and high market share (Hanlon,
2013). It gives huge high return back of cash.
2. Cash cow is the high revenue earning which does not required more investment. The growth
level is slightly going down. For M&S Classic range is cash cow. A medium priced range
affordable clothes of male and female which has low growth and high market share. It could
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not generate huge return as cash cow but has strong supports. Therefore its business plan is not
heavily degrade and only need to invest little bit to maintain the position. The strategy in this
position to be hold strongly and it gives a high return in near future.
3. Dogs represents a company has slow growth and its market share is continuously shrinking
(raina1988, 2009). For example: Autographic range is dogs for M&S because of premium price
range of men and women clothing. It has low market share and low growth so M&S need to
contribute more finance in the company. The dogs is affecting the plan so decision should be
discontinue the product or furter promotion to increase the sales.
4. Question Marks denotes company have low in operation cost because its marketing position
is decreasing so decision should be made on further investment or close some stores. Food is
Question marks for M&S. Few years before M&S ready to remove food stall from stores but
now it operating more than 400 Simply Food stores across the UK. M&S Simply Food
demonstrates high growth and low market share. This position supports the current business
plan but M&S still need to invest capital for increase market share. Which could be generated
cash in future.
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Chief Executive Bollard expressed that We have made good progress as we transform M&S
from a traditional British retailer into an international, multi-channel retailer. It means M&S
increasing their business globally.
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Market Development: If M&S have strongly in product quality then it sells their products in
very new market. Where competitive is null. Suppose, M&S plan to sell existing high quality
products in those countries, where an existing competitor is not in that market.
Diversification: In this strategy, M&S need to develop new product and focus onnew areas.
This option is high in risk. The primary market research is necessary to identify, customer
lifestyle, needs and income status to develop new products. For example, M&S will run the
restaurant business and selling the financial services in the financial market is a process of
diversification strategy.
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In addition, it transfers roles and responsibilities to the employees in different unit; therefore
they can make a quick decisions to grab opportunities (TheTimes100, 2013). However, it
eliminates the gap between top-level management and lower level staff because of establishing
well communication system. This structure is straight forward to flow adequate information
effectively between shareholder, suppliers and customers. Therefore, stakeholders are highly
supportive for new strategy.
Structure proposed to M&S
Chief Executive
Officer
Chief Finance
Officer
Director of Human
Resource
ED- General
Merchandise
ED-Food
Director
Trading Director
Food
Manager
ED-Multi-Channel
E-Commerce
Director of IT
Director of Supply
Chain
ED-Marketing
Director Retail
Manager
Manager
Director of
Communications and
Investor Relations
Manager
Supplier
Customers
4.2. Develop criteria for reviewing potential options for a strategic plan
Product Development is a potential option adopted by M&S for strategic planning. M&S
should improve some sort of technological intervention and training needs to workforce for
product development.
Acceptability: This observe whether the mission is possible with strategy proposed. The
strategy would be acceptable for stakeholder so that M&S applied various strategies and current
plans ensure that the future plan is achievable.
For example, M&S investing 100 million on an innovation as a product development strategy
in order to sustain the long run business. In return, it will improve product quality and increase
the sales, therefore strategy is acceptable.
Feasibility: Product development plan is feasible in term of availability of resources and
strategy plan provides the access to technological, financial and personal resources. The new
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strategy would be feasible because M&S is a well-established company and its stakeholders
are more interested to participate in new plan.
For example, Cotton is a major raw material for clothing. M&S running a better cotton project
in India and other Asian countries. In fact, M&S already developed infrastructure for material
and it does not necessary for further big investment. Thus, this strategy plan is feasible.
Suitability: The new strategy is suitable for M&S because it have highly skilled manpower
and internally strong in finance. Furthermore the new strategy is eco-friendly and matching
with organisational objectives. For example, resources like a good fabrics enhanced the quality
of clothes and latest stylish design provides great satisfaction to the customers. However, new
strategy highly influence the buying behaviour of customers that improve the market share and
brand position of M&S.
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4) Measures: The following indicators should be applied for measure the achievement of
plan.
a) Feedback: Feedback from stakeholder measure the quality improvement in
autographic range.
b) Performance appraisal: A performance appraisal measures the performance of
employees in customer service by end of 2013.
c) Review: Conduct review meeting with stakeholder which measures actual
outcomes with targeted objectives of increase sales and develop new strategy for
future.
d) Success indicator : Increase in operating profit measures the marketing strategy is
successful to achieve sales target.
5.1 Compare core organisational values with the current business objectives of
M&S
Quality, Value, Innovation, Trust and service are the core
value of M&S. Which has remained unchanged since the
establishment (M&S, 2013).M&S changes different
business strategy in mean time being to achieve its
objectives according to defined core values.
Quality
Service
M&S
Core
Values
Value
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In addition, M&S objectives is deliver quality, value and innovation to the customer, minimise
the carbon emission in the store and offices. Therefore, the core value of M&S is favourable to
achieve its organisational objectives.
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to increase 5% profit at the end of 2014 and reducing 35% of operational carbon emission by
2015. Furthermore, M&S will operate new distribution centre, London gateway port on the
Thames River at the end of 2013.
Performance measurement: It provides the detail information about M&S strategy plan
performance of products. However it inform the top management about whether the objectives
are achieved or not.
Feedback: The feedback and suggestion collected from stakeholder assist M&S to evaluate
the strategy plan. Suppose determine the objectives setting by M&S is fulfilled or not? If not
achieved the target, it helps to find out what further improvement is essential to address those
needs.
Balance Scorecard: This workbook can provide clear view of M&S operation status. Thus it
helps M&S to monitor and evaluate strategy plan sequentially. However M&S monitor the
available resources within organisation easily. The availability of details workforce history,
management can mobilize them effectively and appropriately.
M&S should need to pay attention in these areas to evaluate the strategy plan
a) Looking at Return on Capital to know how efficiently utilised the capital, if fund is
shortage there should be invested more capital.
b) Carefully looking employee turnover, retention, output and quality of product.
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No. Schedule
Start
Finish
01/01/2013 31/01/2013
01/02/2013 15/02/2013
Formulate goals and objectives and get approval from 16/03/2013 31/03/2013
board to implement.
Submit progress report to the board of director and get 11/11/2013 30/11/2013
suggestion and feedback for further development
01/05/2013 31/10/2013
01/12/2013 15/12/2013
Source:http://f1websitejournal.blogspot.co.uk/2010/01/my-production-schedule_08.html
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Source: http://csr-reporting.blogspot.co.uk/2011_03_01_archive.html
d) Office notice board is used to inform new strategy and future plan to get feedback from
employees.
e) Newsletter, TV advert and newspaper can be used to inform external stakeholder about
achievement of strategy plan. (M&S, 2013).
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Conclusion
M&S is leading retailer in the UK and expanding globally. It sells high quality products with
value pricing. M&S developed the strategic Plan for new product development, which helps
them to increase the market share, repositioning the brand and high in revenue. By analysing
internal and external environment, these factors are favourable for M&S to grow the business.
Furthermore, M&S adopted focus differentiation strategy, and dedicated to provide quality,
value and innovative products which are unique than competitors.
M&S aims that all the products are in one Plan A quality. However, minimise the waste and
carbon emissions for better community life. The strong management team developed the
appropriate strategic plan and implementing effectively with great support by stakeholders. In
addition, M&S used the excellent dissemination process to flow information in the right place
and right time in order to implement a new strategy plan successfully.
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