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Greenwich London College




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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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).

1. Importance of external factors affecting the M&S

Marks and Spencer is the leading retailer company in the UK and expanding its business
globally (M&S, 2013). All its activities and daily operations are directly affected by external
factors. So external environment is important for M&S to identify opportunities and threats in
the market. However, good understanding of those areas helps to minimise the effects in
M&Ss strategy plan.
It is extremely important that external factors helps to identify the customers needs and
expectation on retail market and response promptly by providing variety of products based on
their culture and religions. Which helps it to obtain trust from customers.
The external factor enables M&S to identify competitive in their business and implement new
strategies such as quality improvement, lower in price and higher availability of goods that
retain their position in the market.
The external factors helps to improve performance of M&S so it will capable to achieve
organisational goals and objectives accordingly.
The external factor is important because it helps to identify new legislation, rules and regulation
imposed by the current government as well as policies introduced by international trade
organisation. So it can implement appropriate strategies for dealing with those situation.
The external factor helps M&S to understand how their business are hampering the community
and environment so it will develop appropriate plan to protect environment and support
community to sustain their business (Spencer, 2013).
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1.2 Analyse the needs and expectations of stakeholders of M&S

Carrolls (1993) defining Stakeholders are group of people or individuals with whom
organisation interacts or has interdependencies and any individuals or group who can affect
or is affected by the actions, decisions, policies, practices and goals of the organisation
(Polonsky, 2005). Employees, Shareholders and union are the internal stakeholders whereas
government, customers, community, Environment and animal welfare groups and media are
the external stakeholders of M&S. Those stakeholders are directly or indirectly influenced the
performance and effectiveness of the M&S strategic plan.
The strategy of M&S is differentiation. It always eager to provide quality and unique products
and services to the stakeholders.
Customer: Customers are expecting M&S sell high quality of products at affordable prices,
and fulfil their needs. . If M&S unable to fulfil their demand, that may cause impacts on sales
strategy. Though it produced unique products, latest in design and styles, to satisfy customer.
It conducts various research programs and collecting feedback from customers to find out
customers desires and needs. That gives great ideas to develop appropriate strategies to attract
them. Moreover, M&S listening what the customer said and improved the products as their
Employees: Employees are expecting M&S paid good salary with mix of benefits such as cash
bonuses, rewards, share values etc. They need training and development for better performance
and self-development. They wants job security, well recognitions and work place are suitable
according to Health and safety. The higher performance of employees means M&S is very
achieving its objectives.
Community: M&S is responsible and duty toward community and take care of service
provisions, waste disposal, potential danger from pollution and eco-friendly logistics.
Therefore M&S should consider those expectations and operate their business without harming
natural resources and protect the environment. For example, M&S is operating a carbon neutral
project that minimise the environmental damage cause of carbon emissions. It also running
various activities such as energy and water usage, waste disposal, recycling, donations to
charities. So it will gain community support and trust to running their business smoothly.
Supplier: Supplier expects M&S paid their payment on time and wants long term business
with good relation. They need to know and update about supplied goods are in good quality
and informed timely if something missing during deliveries. To fulfil the expectation of
supplier M&S has introduced new supply chain system and running advanced distribution
centre which helps to reduce the delivery time and systematize the order process (Spencer,
Government: The government wants M&S paid tax regularly and operate their business fairly
as well as follows all rules, regulation and law as imposed. M&S should complete all
government compliances and fulfil the process of legal entities willingly and cooperate while
the government will impose new policies.

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1.3 Analyse external environment that affect the strategy of M&S

M&S has implemented a focus differentiation and product development strategy; they produce
the highest quality products with affordable price ((not low cost). They are committed to
provide excellent quality of product than their competitive (Alon, 2012). M&S are dedicated
towards achievement of their strategy and strictly follows the company policies and
regulations. The external environment such as political, economic, social, technological,
ecological and legal affects the strategy of M&S (Mennen,

a) Political: The coalition government of UK constantly

changing rules, regulation and policies such as increase tax
rate, living wages and VAT. This changes directly affecting
the strategy of sustainability, growth and sales. The
increasing of VAT associated with higher cost price. And
increment of national wages it need to spend more on
business which is adversely affecting the strategy plan.



for M&S



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

2.1 Tools to analyse the effects of current business plans of M&S

M&S is leading multi-channel retailer in the market. It is necessary to analyse the current
business plan to find out the strength and weakness.
Boston Consulting Group is a leading management group designed a BCG matrix tools into
four categories. This tool is widely used to analyse the business plan of M&S. It used Porters
3 generic strategies of differentiation strategy for holding the market. As per that strategy they
developed unique products such as clothing (classic, Per Una , Autographic ranges), Home
ware, Food and Finance which are differ from competitor based on quality and price. BCG
helps to analyse how current situation affects this plan to move forward in the market (Splusk,
2008). This provides adequate information about strength and where company need to develop
new strategy plan.

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.

2.2 The position of M&S in current market

M&S is well-known as international multi-channel
retailer. It has a strong position in using technology
in a different way to leading market (Today, 2012).
Therefore, M&S multi-channel revenue rose by
16.6% in 2012/13. M&S is one-step ahead in product
portfolio (Clothes, Home ware, Food and Finance) as
well because of their differentiate strategy. It sells
unique products, high quality, innovative than competitors, therefore it looks like different from
its competitor (M&S, 2013).
According to The Times 10: Business case study, M&S has a 40% share in the lingerie market
therefore it is seen as a clear market leader (TheTimes100, 2013). BBC, Business news reports
that M&S, the UKs biggest clothing retailer, group sales were up 0.9% to 4.7bn, growth
coming from the food side of the business. Food sales increased 3.4%, or 1.1% on a like-forlike basis, which strips out the effect of rolling out new stores (BBC, 2012). The recent annual
report shows that M&S still remain the UK market leader in Clothing (11.2% value) but it
experienced slightly decreased by 0.4% pts in market share this year. Sales of International
business were up 4.5% to 1.1bn this year, reflecting unexpected growth in priority markets.
However, operating profit was down 9.9%, due to the impact of currency translation, prevailing
macroeconomic conditions and start-up costs in key market(Spencer, 2013). The new
improved stores, food stalls, M&S Beauty and Home concepts attract customers to visit M&S

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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.

2.3 Evaluate the competitive strengths and weakness of M&S

M&S is famous for brand positioning, quality, value, innovation and trust in the retail market.
It sells high quality, unique product with a value price than their competitors. According to
Kazmi (2008), comparative analysis thus methods the keystone of the evaluate strength and
weakness of M&S (Kazmi, 2008).
The long period of trading history is strength of M&S and its differentiation strategy creates
unique images of M&S among the customers. It has a strong financial backup and strong brand
reputation for quality, innovation and value establish M&S as a leading multi-channel retailer
in the competitive market. It sells the products with higher quality than Sainsbury, Waitrose
and ASDA. The restructured supply chain has improved its stock management and availability
of products in the store at same quantity. Along with long lasting partnership and alliances
creates more opportunity in the global market. In addition, M&S stores are located in the major
high street. Employees were highly trained and experienced as well as good manner in
communication to deal with customer gently. Therefore, M&S succeeded in achieving its
corporate goals. However successfully upgraded IT system, which is designed to improve the
accuracy and flexibility of HR service, it helps to deliver better resource planning, fewer pay
queries and reduction in paper usage.
The weakness of M&S is its management team, lack of coordination and effectiveness of
performance, operating profit is decreasing gradually from 679m to 658m (-3.1%), however its
competitor Sainsbury successes to increase its operating profit by 6.9% in 2011/12(Sainsbury,
2012). M&S have lack of self-checkout machines, therefore little bit delay in customer service
during checkout. M&S is backward in customer loyalty programme while all their competitors
introduced a customer loyalty scheme such as Tesco club card, Sainsbury nectar etc. In
addition, competitors are grown like a shark in business and operates their stores as long as
possible but M&S still operates the stores in normal hour, which directly affect in their
operating strategy.

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3.1 Modelling tools to develop strategic options for M&S

3.1.1 Competitive strategy tools
Michael Porters propose three generic strategies that any company can seek a competitive
advantage to compete with competitors. Cost Leadership, Differentiation and focus options
assume to be widely applicable to gain competitive advantage in the market (Griffin, 2013).
Cost Leadership Strategy: Cost leadership strategy gives a competitive advantage by seeking
to reduce operating and production costs lower than competitors. Thus, M&S need to source
raw materials and other resources at competitive prices and operate efficiently whilst
maintaining profitability. Cost leadership may be a suitable competitive strategy for M&S to
boost its market share, which declined by 0.4% this year (Spencer, 2013).
Differentiation: This option gives the competitive advantage of differentiating products and
services in terms of quality, price, design and style. For example, Autographic quality product
is very high in quality and price. In order to sell this product M&S focus on a tentative group
of people, who are high earners and age falling between 30-50(Spencer, 2013).
Focus: This option is focusing on a niche market and a small group of people to sell products
and services. The competitive strength of this option is comparatively high in price because of
less competition. For example, M&S produced the special kind of products (designer dress,
ornament, financial product), which is intended to sell only rich people and celebrities.
3.1.2 Growth Strategic tools
An Ansoff Matrix also used to identify strategic options. This is a growth strategy, it helps to
grow the market and develop the products for existing or new market (Kotler, et al., 2010). It
incorporates the four options for growth, market penetration, market development, product
development, and diversification.
Market Penetration: If there are virtually no opportunities in the existing markets and inhouse product expertise is limited, a strategy of market penetration is an appropriate option
(Kotler, et al., 2010). For example: M&S increases the number of stores, alliances and
partnership for secure a position of market, re-launch the products, aggressive promotion and
price cut strategy penetrating the market. To compete the market, provide discount and
continue offering such as buy one get one free, dine two for 10. Introduce the pricing strategy
and market segment to penetrate, it helps to gain competitive advantage and increase the market
Product Development: The opportunities in existing market are not good but internal product
expertise is strong, M&S should pursue a strategy of product development; offering a brand
new set of products and new product lines in the existing market. Customer feedback and
market survey are conducted to identify customers need and expectation for development of
new product. As a new product, the cost price is increased, so M&S reach at breakeven point
quickly to cover its cost. Suppose, M&S new packed meat product, organic vegetables etc.

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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.

3.2 Review the comparative analysis of M&S

Benchmarking is a great tool for comparison between two companies, in terms of
performance, profitability and other marketing activities. Furthermore, it gives more ideas
about how competitor adopts the different strategy and policies to capture market share.
Store Development: Fletcher (2011) posted in The Guardian that, John Lewis owned
Waitrose roll out a network of smaller shops within the M25 and enlarge its department store
chain with a new flexible format. In other hand, Tesco has been expanding their full range store
and local store across the UK. These development activities directly affect the sales of M&S
over the longer term (Fletcher, 2011). In order to compete with Waitrose, M&S also rolling out
its stores in very new layout (Spencer, 2013).
Comparative Profitability: Baxter (2013) reported that, John Lewis sales up by 13% and
online were 44% in the five weeks to 29 December 2012. In the same way, Sainsbury also
increased sales by 4.6% in last year (Sainsbury, 2012). But, M&S sales down 3.8% in the 13
weeks to 29 December. Moreover, the food section of M&S sales jumps 0.3% (Baxter, 2013).
This indicates that M&S performance is weaker than their competitor.
Portfolio Analysis: John Lewis, Fraser and Tesco sales solid and well-made furniture in their
stores and variety of choice where many branches of M&S do not sale the furniture. However
this strategic decision of removing Home ware products in some stores divert the customer
in competitor.
Employee engagement Strategy: John Lewis provides great customer services. Staffs are
partners of John Lewis and they can take part in decision-making and get annual bonuses so
staff is most helpful and well-informed. Whether M&S staffs were incorporated with Share
Marketing Policy: John Lewis, Sainsbury and ASDA provides facility of delivering products
in the doorstep of customer whereas M&S discontinued delivery from the store a year ago
(Hardy, 2010)

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3.3 Options for M&S future strategy

There are various strategy available for M&S such as differentiation (own brand and premium
brand), product development and market development. While I consider the current situation,
differentiation focus and product development are suitable for M&S future strategy.
The differentiation focus strategy provides great opportunities for M&S. It is planning to
refocus on clothing strategy to repositioning its brand and sub-brand of clothing product, which
is elegant in design, rich heritage with modern styles (M&S, 2013). M&S are rich in portfolio
and cause of strong positioning this strategy is very suitable. Furthermore they have already
invested huge fund for improvement system and updating new technology. So further heavy
investment is not required and only need to improve quality of products.
Product development is another suitable strategy for future growth. M&S is strong in market
and lots of loyal customer. It is not necessary to penetrate market because it has holding the
good market share. In addition, it already installed advance machinery in their product house
and improved in logistics. It only need to maintain the quality of fabric, new design, stylish and
easy to wear as well as good packaging. Which is economically sound and acceptable for
shareholders. This strategy concentrate on seasonal wear and trend of London such as bold red
and black checks, sleek leathers and animal prints to the Modern Elegance trend encompassing
clean, simple tailoring with luxury fabrics and muted colours(M&S, 2013). The new products
easily attract the youngster and existing customer. However this strategy able to generate more
revenue in the future business.

4.1 Propose Organisational Structure for M&S

Organisational Structure is necessary to implement plans in the M&S that maximises efficiency
and profitability. It clarifies all roles and responsibilities as well as level of authority in the
company. All the employees are aware about structure can reduce the conflict. However, it
helps to increase the performance and success of the plan. There are different kinds of structure
available for companies such as Functional, Divisional, Matrix and geographical (Anon.,
Functional Structure is choosing for M&S which ensures all their stakeholder are easily
participated. This structure is suitable for M&S because it covers all stakeholder and give an
equal priority. The functional structure gives some advantages so this structure is appropriate
for M&S.
a) Functional structure have different unit, it like a ladder where new entrant working
under experienced worker and got chance to obtain good knowledge and skills. Such a
way specialization are developed over the time and capable to holding higher position
as career progression.
b) The highly motivated and specialized workers operates the activities effectively and
efficiently so it increases the M&S productivity.

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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

Chief Finance

Director of Human

ED- General



Trading Director



Director of IT

Director of Supply


Director Retail



Director of
Communications and
Investor Relations



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.

4.3 Strategic plan for M&S

M&S has agreed to use differentiation and product development strategy which need to be
planned appropriately for achieving organisational goals. It should involve stakeholder by
established well communication and having a less disputes between individuals in the
1) Analyse current situation: strong position in sales of women clothes, growing food
market and classic range is most popular to attract customer. Whereas Autographic
range is declining its market share (M&S, 2013). Furthermore home product like a
furniture also not able to hold the market share. Lack in good Customer support and
need to update old system and technology.
2) Key issues:
a) The continuously fall in sales of autographic range clothes is major concern for
management because of high investment in this product.
b) The decreasing market share of home furniture and difficult in holding the long
history of best retailer position.
c) The quality of home furniture could not compete with competitors.
d) Staff are not fully supportive with customer and lack of customer service.
3) Strategies to address the issues: To address those problem and repositioning the
market share following strategy plan is necessary.
Implement new marketing strategy and running promotion campaign within
2013 which will highlight the quality and usefulness of Autographic range and
home furniture.
Replace old technologies such as packaging, new designing machine by end of
2013 which will increase the quality of products.
The training and development programme ensures employees performance are
enhanced by 90% at the end of 2013 in the customer service.
To implement strategy M&S can invest further 10 million for 2013.
M&S should recruit skilled worker through right selection procedure and on
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4) Measures: The following indicators should be applied for measure the achievement of
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
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
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.





Thus, M&S deliver the standard of services to its customer,

as their expectation. They takes seriously about costumers
suggestion and develop appropriate strategies to address
their want and needs. So M&S build the trust among their
customers. It used multi-channels such as- TV advert,
Social media, online gateway and advertisement campaign to provide relevant information
about products, design and offers. However, M&S employees are dedicated to provide
excellent services to the customers and helps customers to shopping more enjoyable. They are
fully cooperate with colleagues and helps each other to make good working environment.
M&S believe in their norms and value. It runs a business ethics with a great theme Do the
right things. Transparency in business and avoid the cutthroat competition represents the good
ethics. They developed the culture, where every individuals ideas and innovation are taken
seriously in order to develop appropriate strategies. It works hard to maintain a high level of
trust and transparency with all their stakeholders. It established good communication between
employees through various channel and measure employee engagement quarterly. It is running
training and support activities, which improving employee skills and product knowledge. It
also involves in various social activities to get support from community for grow their business
Furthermore, M&S introduced the new vacuum packaging system to maintain the quality of
meat and food product, which is targeting to meet its objectives of innovation.

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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.

5.2 Develop appropriate Vision and Mission statement for M&S

Henry, (2008) explained that, A vision is often associated with the founder of an organisation
and represents a desired state which the organisation aspires to achieve in the future (Henry,
Sir Stuart Rose, Executive Chairman expressed the vision of M&S, Becoming the worlds
most sustainable major retailer by 2015. M&S propose the new vision is to involve around
21 million customers in Plan A through the products they buy from it, by enabling them to
make a difference to the community and by providing information on how they can live more
sustainable lives(M&S, 2010).
A mission statement can be defined as a way in which the organisation communicate the
business it is into the outside world, which seeks to answer the question as to why an
organisation exists(Henry, 2008). Making aspirational quality accessible to all(M&S,
2013). This statement describes the mission of M&S. Moreover, M&S set new mission, as one
of the UKs leading retailers, sells stylish, high quality, great value clothing and home
products, as well as outstanding quality food, responsibly sourced from around 2,000 suppliers
The M&S main concern is providing excellent service and quality products to their customers
as well as best shopping experience, whether in stores, online or by phone.

5.3 Produce agreed future management objectives for M&S

According to Peter F. Drucker, Management by objective is regarded as a system for
improving performance, both of the individual managers and the enterprise as a whole, by
setting of objectives at the corporate, departmental and individual managers level(Singla,
M&S has been running its big ambitious project Plan A in order to achieve its organisational
objectives of sustainability, market focus in the UK and expand globally. It was success to
reduce 75% of packaging and deliver fresher, better quality meat product to the customers,
through sustainability programme. M&S has achieved good performance in food, sales rose
by 4.9 billion. They are succeed in achieving targets of 40% quality improvement of products
in this year, which they sold. Furthermore, M&S will plan for product development strategy,
logistics and value chain to get back into the same marketing position by providing quality
goods and services. M&S laid down another great plan for future business success.
These are the future management objectives set by M&S:
M&S plan to improve 50% of products have a Plan A quality (fair trade and fresh product)
by 2015 and 25% of cotton fabrics directly supply from sustainable suppliers by 2015. It plans
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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.

5.4 Develop measures for evaluating strategy plan

M&S should develop the measures for the evaluation strategy plan that in light on the efficiency
and effectiveness of the comprehensive plans in achieving the desired results. It helps to
develop ideas for new strategic planning, urge for feedback, appraisal and reward etc.

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
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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6.1. Schedule for implementing a strategy plan in M&S

The following schedule is constructed to implementing the differentiation and product
development strategy in M&S.

No. Schedule



Conduct Environmental Analysis

01/01/2013 31/01/2013

Construct strategy and future plans

01/02/2013 15/02/2013

Formulate goals and objectives and get approval from 16/03/2013 31/03/2013
board to implement.

Formulate group of team members for implementing 01/04/2013 31/04/2013


Implementation of strategy plan

Communication and sharing the progress as well as collect 01/11/2013 10/11/2013

feedback from stakeholder

Submit progress report to the board of director and get 11/11/2013 30/11/2013
suggestion and feedback for further development

Review and evaluation the plan

Compare outcomes with objectives. If objectives are not 16/11/2013 31/12/2013

met, the new strategy and plan should be developed to
resolve above issues identified.

01/05/2013 31/10/2013

01/12/2013 15/12/2013


6.2 Create appropriate dissemination processes to gain commitment from

Dissemination is known as a process that involves a results and experiences with the intention
of influencing the way others think and act, or of making them aware of a new strategy, product
or service (Culture, 2012).
The stakeholder plays major role in implementing new strategies, so appropriate fact and
figures should dissemination to aware them about strategy plan.

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a) Management and employees are the internal

stakeholder, Informal person-to-person meeting, seminars,
and briefings are appropriate methods to disseminate the
information about new strategy.
b) General Meeting, sending letter and email is used to
inform shareholder about future plan and strategy.
c) Website and email is another way to inform employees
about progress of strategy plan implemented and updates
about new strategy under taking in future.


d) Office notice board is used to inform new strategy and future plan to get feedback from
e) Newsletter, TV advert and newspaper can be used to inform external stakeholder about
achievement of strategy plan. (M&S, 2013).

6.3 Monitoring and evaluate the success

Monitoring and evaluating the system indicates the progress and achievement, assessing the
success of the strategy plan (Pettinger, 2004). Annual review, working document, feedback,
customer comment and performance indicators are used to monitor the inputs, process and
outcomes as well as achievement of short-term or long-term objectives of M&S.
Working Document: M&S will use a working document like activity table to measure what
are completed and what are left to achieve.
Milestone: M&S can use milestone to monitor defined jobs are achieved on time or not. If,
there is higher in risk to implement the strategy, draw the critical path diagram to monitor each
and every stage of activities.
Feedback: Regularly collecting the feedback from employees and customers to find out, how
the new strategy affects inside and outside the organisation. The performance increased in
employees and sales growth represents the strategy is working effectively.
Annual review: Organising the annual review meeting shows the how success business area.
For example: Sales revenue is uplifted by 4% which is likely close to a target of 5% indicates
the company has succeeded in achieving target objectives.
Furthermore, performance appraisal measures the skills and knowledge achieved by
employees. Suppose performance review charts show employees' performance is increased by
10% than the previous stage represent a new strategy helps to boost their performance.

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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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