This term paper deals with the strategic management of the company Marks and Spencer which has become a leading British retail icon since its conception more than a hundred years ago. The book deals in the first part with the company profile, the industry evolution, the current strategic position. The second part contains an industry analysis and market failures. It ends with re-strategizing.
Table of Contents
1. Company Profile
1.1 Industry Evolution
1.2 Current Strategic Position
2.0 Industry Analysis
2.1 PESTEL Analysis
2.2 Market Failures
2.2 Mintzberg’s 5 Ps Concept
2.3 Risk Analysis
3.0 Strategic Drift
3.1 SWOT Analysis
3.2 Blue Ocean to Red Ocean
3.3 Sustainability
4.0 Re-Strategising
4.1 Strategic Objectives
4.2 Ansoff Matrix
5.0 Resource Management
Objectives and Topics
This work examines the strategic challenges faced by Marks & Spencer, focusing on its market performance and the need for organizational realignment. The primary research goal is to identify strategic deficiencies in the retail giant's operations, particularly within the women's wear segment, and to propose a five-year plan for regaining competitive advantage through improved value chains, consumer-oriented PR strategies, and effective utilization of digital resources.
- Strategic analysis of the retail industry and market positioning.
- Evaluation of internal and external factors using PESTEL and SWOT frameworks.
- Assessment of strategic drift and the transition from Blue Ocean to Red Ocean competition.
- Formulation of strategic objectives for cost reduction and quality improvement.
- Strategic direction recommendations using the Ansoff Matrix.
Excerpt from the Book
2.0 Industry Analysis
The retail market sphere has undergone a tremendous transformation over the last 2 decades that can be attributed to a variety of factors that include but not limited to societal forces, technological advances, deregulations and globalization. As iterated by Kotler, these primal forces have introduced new market and consumer behaviours and challenges as the average consumers increasingly anticipate higher quality, better services and better prices (Kotler, 2003).
The internet is a source for obtaining extensive product information that allows consumers to shop more intelligently due to the information they have on what is best in terms of price and quality against maximum satisfaction. Brands such as Marks and Spencer are faced with intense competition from both domestic and foreign brands that have direct impacts on promotion costs added to the burden of recoiling profits. Companies cannot just make decisions based on what the competition is doing; companies need to be innovative to cope with the constantly evolving retail market (Obaga et al., 2013).
Chapter Summary
1. Company Profile: Provides an overview of M&S's historical background, financial performance, and its current position as a leading British retailer.
1.1 Industry Evolution: Examines the multifaceted nature of the retail sector and the specific challenges of product life cycles in women’s wear.
1.2 Current Strategic Position: Analyzes the company’s shift toward sustainability and its attempts to regain customer loyalty through the 'SPARKS' program.
2.0 Industry Analysis: Explores the transformation of the global retail market due to globalization, technological advances, and changing consumer expectations.
2.1 PESTEL Analysis: Evaluates the macroeconomic factors (political, economic, social, technological, environmental, legal) impacting M&S's business environment.
2.2 Market Failures: Discusses the decline in market share for women's wear and the impact of internal management conflicts.
2.2 Mintzberg’s 5 Ps Concept: Applies Mintzberg’s strategy model to evaluate the company's diversion toward the grocery sector at the expense of its merchandising segment.
2.3 Risk Analysis: Highlights the risks associated with the company’s lack of innovation and inability to adapt to changing consumer behaviors.
3.0 Strategic Drift: Discusses the importance of aligning vision and mission to prevent strategic drift within large organizations.
3.1 SWOT Analysis: Outlines the strengths, weaknesses, opportunities, and threats currently shaping the organization.
3.2 Blue Ocean to Red Ocean: Analyzes the strategic miscalculations that pushed M&S into a competitive Red Ocean environment.
3.3 Sustainability: Addresses the credibility challenges the company faces regarding its sustainability claims following negative publicity.
4.0 Re-Strategising: Outlines the necessity for structural reorientation to recapture lost market share in the women's wear category.
4.1 Strategic Objectives: Sets out critical objectives for cost reduction, improved quality, and consumer-oriented PR.
4.2 Ansoff Matrix: Uses the Ansoff framework to determine strategic directions for market penetration and product development.
5.0 Resource Management: Concludes that the company possesses sufficient resources but suffers from incompetent management of those assets.
Keywords
Strategic Management, Marks & Spencer, Retail Industry, PESTEL Analysis, SWOT Analysis, Strategic Drift, Women's Wear, Market Share, Competitive Advantage, Generation Y, Consumer Behaviour, Sustainability, Ansoff Matrix, Business Model, Resource Management.
Frequently Asked Questions
What is the core focus of this publication?
This work focuses on the strategic management and operational challenges of Marks & Spencer, particularly its struggle to maintain its status as a market leader in the competitive UK retail sector.
What are the primary themes discussed?
The primary themes include industry evolution, strategic alignment, market failure analysis, sustainability, and the necessity for organizational reorientation to meet contemporary consumer demands.
What is the main research objective?
The goal is to analyze why M&S has lost ground in the women's wear sector and to formulate strategic recommendations that leverage the brand's existing resources to improve future profitability.
Which scientific methods are applied?
The author utilizes standard strategic management frameworks, including PESTEL analysis, SWOT analysis, Mintzberg’s 5 Ps, and the Ansoff Matrix, to evaluate the company’s position.
What does the main body cover?
The main body covers the situational analysis of the company, an assessment of its current market failures, a risk analysis, and a proposal for strategic objectives and resource management to ensure future success.
What are the characterizing keywords of the work?
Key terms include Strategic Management, Market Share, Competitive Advantage, Strategic Drift, and Consumer Behaviour.
How does the author view M&S’s online presence?
The author identifies the weak online presence as a critical weakness that hinders the company's ability to capture the Generation Y consumer segment.
What role does the 'Per Una' brand play in the analysis?
The 'Per Una' brand is highlighted as an area where reconfiguration and development could help the company gain a competitive edge in fashion retail.
Why does the author consider M&S to be in a "Red Ocean"?
The author argues that due to strategic miscalculations and intense competition, the company is trapped in a crowded "Red Ocean" market, struggling against aggressive rivals like Next, Zara, and H&M.
- Citar trabajo
- Ravi Sivalingam (Autor), 2015, Strategic Management. Industry Analysis, Strategic Drift and Re-Strategizing, Múnich, GRIN Verlag, https://www.grin.com/document/415823
