Strategic Management- Marks and Spencer’s 2011

BSP028 Strategic Management| Paul Ioannides A764027| | Describe and evaluate the main strategic changes of Marks and Spencer since the beginning of Stuart Rose’s Chairmanship. | | | 8/19/2011| | Contents Introduction3 Marks and Spencer3 Strategy Definition4 Strategic Change 15 Plan A: Aim of becoming the most sustainable retailer5 Description of Strategy5 Reasoning of Strategy5 The Strategy 2010-20115 Theoretical Foundations of Strategy6 Corporate Governance6 Business/Corporate Level Strategy7 Vertical Integration7 Scope of ‘Plan A’ Strategy8 Utilitarianism9 Evaluation9 Suitability9 Strategic Change 2:12

Multi Channel Strategy: The Internet and Mobile12 Description of Strategy12 Reasoning of the Strategy12 Theoretical Foundations of Strategy12 Business/Corporate Level Strategy12 Ansoff Matrix13 Evaluation14 Suitability14 Feasibility14 Acceptability15 Conclusion15 Introduction The aim of this report is to outline the chosen strategic changes that Marks and Spencer have incurred since the beginning of Stuart Rose’s chairmanship. The first section of the report will focus on outlining the specific strategic changes that were implemented, including a description of them whilst relating them to theoretical concepts studied.

A brief explanation will then be included to explain the reasoning behind the strategic change. The latter half evaluates each of the strategic changes in accordance with the evaluation criteria. For the purpose of this report, Marks and Spencer (M&S) will be considered as a single unit as opposed to treating each constituent of its business as a single entity e. g. clothing, home, food. However, if necessary, the report will explicitly state when appropriate details in relation to individual parts of the business.

In order to contextualise the importance of examining the strategic changes of Marks and Spencer, the UK supermarket industry is forecasted to increase by 17. 9% from 2009 to 2014 to give a total market value of $219. 3 billion (DataMonitor, 2011). To gain maximum market share from the resulting increases, it is crucial for Marks and Spencer to continually monitor and adapt their strategies in accordance with the dynamic conditions it operates within. Marks and Spencer As this report is solely based on M&S plc, it is initially necessary to provide a brief background to the organisation to set a basis for the strategic changes.

M&S became the first British retailer in 1997 to make a pre-tax profit of over ? 1 billion (BBC News Website, 1998). However, from this hugely successful period, the company plunged into crisis for numerous years. The company had long suffered due to incremental change as CEO’s prior to Sir Stuart Rose were ignorant to changing external environments that required more ‘Big-Bang’ changes. Beer et al (2000) acknowledged this threat to organisations through their theory of ‘change or die’ attitude. However, due to a number of successful strategic rame-breaking changes in more recent years from Sir Stuart Rose, they have once again established their formerly successful brand name. In 2004 his first job was to fight a takeover bid from Sir Phillip Green. He managed to bring full-year profits back to ? 1bn, not witnessed since 1997 levels. The organisation is one of the UK leading retailers, with approximately 21 million people visiting their stores weekly. The business plan includes products in clothing range, home range and food range, supplied from 2,000 sources globally. The large retailer generated ? 9. billion of revenue in 2011 with a resultant underlying group operating profit of ? 824. 9 million (M&S Corporate Website, 2011). ?8. 7 billion of the revenue was generated in the UK alone, demonstrating Marks and Spencer’s focus on the domestic market. However, the retailer is an international operator also and this will be discussed more in depth later in the report in relation to relevant strategic changes. In 2007 M&S tied up with Amazon and an online store was inaugurated on 23 March 2007. The internet revenue earned by Marks and Spencer Group plc reached ? 100 million in the year 2007 (Anon A, 2011).

This strategic decision will also be discussed in more detail later in this report. As a final significant event on the company timeline, in November 2009 it was announced Marc Bolland would take over as Executive Chairman from Stuart Rose in early 2010. M&S outlined their strategic plan between 2010 and 2015 and thus the strategy changes chosen in this report will partly follow this. (Source: M&S Annual Report, 2011) Strategy Definition Before the individual strategic changes are described and evaluated, it is necessary to fully understand the definition of the term strategy and strategic management. The flame of competition has changed from he smokey yellow to intense white heat. For companies to survive and prosper they will have to have a vision, a mission and strategy’ (Johnson, 2001). The use of strategy in this well known quote from the Chief Executive of Lloyds TSB Peter Elwood shows the importance strategic decisions plan in the modern era for organisations. To supplement this, strategy is theoretically defined as ‘the direction and scope of an organisation over the long term, which achieves advantages in a changing environment through its configuration of esources and competences with the aim of fulfilling stakeholder expectations’ (Johnson et al. , 2005). According to this definition, the strategy change has a duty to ‘achieve advantage’, thus produce increased revenue and profit as a result. Further theory agrees with the added value concept in that the purpose of corporate strategy is to create conditions under which the organisation is able to create this crucial additional value (Lynch, 2006). Since this concept has been stressed in many theoretical contexts, the chosen strategic changes have been specifically decided upon according to the most value added to the organisation.

Strategic Change 1 Plan A: Aim of becoming the most sustainable retailer Description of Strategy A strategic change named ‘Plan A’ was implemented by Marks and Spencer in 2007 in order to work simultaneously with their customers in achieving steps towards combating climate change, reducing their waste disposals, increase the sustainability of their raw materials, trading ethically and showing concern towards the health of their customers lifestyles. Launched in the January of that year, the initial commitment was setting 100 targets to achieve in 5 years, of which an additional 80 (totalling 180) have been added for achievement by 2015.

The overall aim of the strategic decision was to become the world’s most sustainable major retailer. Reasoning of Strategy ‘We’re doing this because it’s what you want us to do. It’s also the right thing to do. We’re calling it Plan A because we believe it’s now the only way to do business. There is no Plan B’ (M;S a), 2011). Further reasoning can be explained from a survey carried out by ComRes (2010), commissioned by Marks and Spencer itself, whereby 72% of people surveyed were worried about the environment issues surrounding the retailer, with 73% saying the tougher economic climate did not change their stance.

The Strategy 2010-2011 Additional changes to the initial strategy introduced in 2007 have taken place in the year 2010-2011. This year there is a greater level of board involvement with the strategy, with the addition of bi-monthly meetings to ensure the executive level board define the strategy in accordance with the changing external environment. To ensure this is executed efficiently and this new addition to the previous strategy is implemented to maximise output, the executive directors and management committee all receive personal bonuses if Plan A targets are met.

To further refine the strategy, in March 2011 the organisation decided to establish an external advisory board to support the aim of becoming the ‘world’s most sustainable retailer. ’ The panel includes members from Non-Governmental Organisations (NGO’s) as well and academics and industry experts to maintain their growing green status (M;S Annual Report 2011). In addition to the 80 new commitments added in from 2010 onwards as mentioned, the altered strategy of Plan A to the current date has further involved strengthening the governance of the initial strategy, including greater board level involvement than ever.

The consequences of the strategy will be outlined according to critical financial data examined and the effect each of the sub-categories within Plan A has had thus far. This is to enhance the decision upon whether the strategy was a success. From information subscribed by GreenBiz. (2010), significant areas such as energy, emissions and waste goals have been improved since the introduction in 2007; however areas that have struggled more include travel emissions, organic food sales and water tracking. Results taken from the 2011 annual ‘How We Do Business Report (2011)’ verify this. 95 commitments achieved, 77 on plan, seven behind and one on-hold; * Two million customers directly involved in Plan A activities; * Net benefit of over ? 70 million delivered in 10/11 (up from ? 50m in 09/10); * Nine sustainability leaders recruited for new Plan A Advisory Board. Marc Bolland, Chief Executive of Marks & Spencer, says: “Plan A is now delivering more for our customers than ever before. It is creating great products with eco and ethical benefits like the world’s first Fairtrade vegetable and the Indigo Green fashion range.

Over 180,000 people recycled their unwanted clothes with the Oxfam Clothes Exchange. ” (M;S b), 2011) Therefore, according to the positive results of the strategy, it has been a successfully implemented strategy, and therefore with an explanation of the strategy in place, the relevant theory relating to it can now be applied. Theoretical Foundations of Strategy Corporate Governance Due to the higher involvement of the board in Plan A executions, and the retailer more conscious of involving all stakeholders to ensure their expectations are met, the role of corporate governance is very apparent.

Corporate governance refers to the influence and power of the stakeholders to control the strategic decision of the organisation (Lynch, 2006). In recognition of Sir Stuart Rose’s dual responsibilities as both Chairman and Chief Executive until 31st July 2010, on its role of corporate governance, Marks and Spencer declared the following: ‘We recognise that Stuart’s role as Chairman and Chief Executive was out of line with best practice as was his independence criteria on appointment as Chairman.

We understand the concerns of our shareholders, but maintain that robust governance structures were in place, while benefiting from retaining Stuart at the helm’ (M;S c), 2011). Business/Corporate Level Strategy In order to justify ‘Plan A’ as a strategic application, the theory of corporate and business level strategy will be discussed to determine which category this strategic change best fits into. Corporate level strategy and business level strategy are operationalized in terms of ‘inter-industry’ and ‘intra-industry’ respectively (Beard and Dess, 1981).

For the purpose of examining the business level strategy aspects, the retailer is divided into its food, clothing and homeware strategic business units (SBU’s). Since each SBU within the organisation has a distinct external market, each market will require a different strategy. Therefore in relation to Plan A, this is important since the strategic aspects that will be required to achieve targets will have to alter across each SBU.

Thus decisions regarding targets for each SBU are of a business level strategy; however, since the overall target is to become the world’s greenest supermarket, each SBU has the same desired outcome as defined initially by this corporate level strategy that was first introduced in January 2007. Vertical Integration Linked into Ansoff’s 1988 matrix, corporate strategy can take the direction of vertical integration which describes activities in which the organisation is its own supplier or customer, operating at another stage of the value network (Johnson et al. , 2011).

Vertical integration involves a variety of decisions concerning whether corporations, through their business units, should provide certain goods or services in-house or purchase them from outsiders instead (Harrigan, 1985). It can be further sub-categorised into backward and forward integration. Forward integration is the process whereby ‘suppliers extend their operations to carry out the conversion process being undertaken by their customers’ (Finlay, 2000). Backward integration is the development of activities concerned with inputs into the company’s current business (Johnson et al. 2011) and hence is further back in the value network. M;S’s ‘Plan A’ strategy demonstrates backwards integration. Since part of the reason Sir Stuart Rose initialising ‘Plan A’ was to cut company costs and hence coming into closer contact with the suppliers. This was considered a method to ensure assure pricing, quality, availability of supplies and efficiency. As a result of this backwards integration, costs in the supply chain were reduced by ? 100 million and the strategy generated ? 50 million additional profit, which was re-processed into the business (Carbon Trust, 2011).

This is an example of ‘related diversification’ since initially it was beyond the current products and markets, but was well within the capabilities and value network of the organisation. Scope of ‘Plan A’ Strategy Incremental changes can be used to avoid strategic drift as demonstrated by De Wit and Meyer’s representation. This sort of strategic change was very common with Marks and Spencer’s throughout its history and it alters the ‘outer ring’ of the ‘cultural onion’ e. g. behaviours, without affecting the core functions of the organisation.

Transformational (often referred to as ‘Big Bang’) change alters the underlying assumptions in the organisation paradigm, whereas incremental change does not. The ‘Plan A’ strategy demonstrates incremental changes introduced by Sir Stuart Rose; since the results of the strategy were designed to be improved upon year by year until the retailer became the most sustainable in the world. The strategy involved analysing the performance annually of the aims and objectives, and altering them in line with the changing external environment, hence incremental. (Source: Wit and Meyer, 1998) Utilitarianism

Utilitarianism is concerned with the usefulness of actions (Finlay, 2000) and is defined as the view that makes an action right is the good consequences it creates (Michael Gillette). In article published in the Financial Times by Sir Stuart Rose himself, he stated that ‘we know there a significant commercial return for going green, not just a moral one. It is almost classic utilitarian greatest good for the greatest number. ’ (Stuart Rose, 3rd June 2010). In a further statement from the now former Chairmen, he expands on this concept saying ‘This month we publish our audited report on Plan A for 2009-2010.

It shows additional profits of ? 50m rather than a planned cost of ? 40m… and from new income streams such as M;S Energy’ (Stuart Rose, 3rd June 2010). Interestingly, this utilitarianism behaviour is also linked to the incremental change previously described that Plan A brought about. Since Plan A was put at the forefront of the business, it drove cultural change within M;S, hence changing operating procedures to result in incremental savings within the organisation. These small aggregated changes in behaviour lead to a large saving in energy and thus a significant impact is felt commercially.

Evaluation Although much of the strategy for Plan A has been analysed and applied in the theoretical section above, a more comprehensive evaluation will now be applied using a selection of evaluation tools. The methods available are suitability, acceptability and feasibility. There are also consistency and validity, however for the purpose of this report; the latter two tools will be inter-twined with the first three major evaluation methods that are specified by Johnson et al (2011). Suitability The foremost important evaluation method for Plan A is the suitability aspect.

This is concerned with assessing which proposed strategies address the key issues relating to the opportunities and constraints an organisation faces (Johnson et al. , 2011). In order to fully understand the strategic position of the organisation, an external PEST and SWOT analysis were conducted. The relevant aspects from latter two tools will be elaborated on further in this section. By conducting a suitability analysis, the report aims to fully evaluate Plan A whilst justifying it according to the dynamics of the external environment.

The remote environment can be modelled through several frameworks that aid the analysis. For the purpose of this report a PESTEL checklist was implemented. Analysis at this stage of the report is crucial because the assessment of the environment and subsequent strategic actions will inevitably modify the levels of corporate success. The outcome of this particular analysis will identify the specific environmental factors that led to the initialisation of Plan A and identify the reasons behind the continuation of its implementation.

The results will then identify the strengths and weaknesses of the retailer and the opportunities and threats in the market from a SWOT analysis conducted. Only the most relevant aspects will be discussed in regards to the strategic changes. ‘Plan A’ falls under the environmental aspects of the PESTEL specifically, but also the socio-cultural and economic factors. Outlined below is a simplified SWOT analysis for Marks and Spencer in 2011, provided by DataMonitor (2011). Source: DataMonitor (2011) Clearly identified by this source is the highly effective CSR strategy that the retailer implements.

To confirm its reliability quantitatively M;S have reported in 2011 that 95 commitments have been achieved, with 77 on schedule to be achieved, thus 172 out of 180 commitments are successful (M;S Annual Report 2011). This confirms that their CSR strategy is one of their strengths. Furthermore, from an economic perspective, and according to Richard Gilles (Director of Plan A), net benefits from the CSR strategy have increased to over ? 70 million in 2011 due to a combination of efficiency savings and new business e. g. M;S Energy.

Therefore, due to emerging opportunities from the initial strategy, the retailer has implemented ‘diversification’ to exploit strategic capabilities in new arenas. Additionally, various factors from the PESTLE are significant. From research, it is evident that in the modern era an increased pressure has been experienced upon organisations from the consumers to acknowledge their societal responsibilities further, and move towards operational methods that benefit society overall (Lindgreen and Hingley, 2003). From a political aspect, the government have recently been ebating the idea of a ‘fat tax’ which would help combat obesity in the UK, whilst also aiding the government financially (Daily Mail, 10th May 2010). One scenario would include basic products such as full fat milk, butter and cheese having VAT included at 20% additional cost to encourage consumers to use less saturated fat products (N. B food is currently exempt from VAT, hence the extremity of this scenario). From PESTLE research, findings show that changing eating habits caused by a ‘fat tax’ could prevent 3000 deaths a year.

From this threat, Marks and Spencer aimed to triple the amount of organic produce it buys in 2006. Thus the suitability of Plan A is further justified. However, according to Marketing Week (9th June 2011) Marks and Spencer have actually started scaling back on the original organic produce targets due to lower than expected customer demand, and sales of organic produce falling below the 2005/2006 levels which were the baseline of which the target was initiated. From this perspective, the strategy is therefore less suitable and should be altered in line with the dynamic environment.

With the extension of ‘Plan A’ in the year 2010-2011 for a further 80 commitments, further money will be saved by the company, indicating its suitability, however, the extension of commitments could have major implications for its supply chain (Marketing Week, 3rd March 2010). From a political and socio-cultural perspective, the extra commitments were warmly welcomed, however retail analysts question whether the strict commitments will make the retailer ‘less nimble’ with added pressure to its supplier.

Further social aspects from the PESTEL include the high profile presence of Plan A in advertising campaigns and general awareness schemes, thus providing the consumer with high social responsibility perceptions (E. g. in 2008 the launch of their TV advertising campaign aimed to highlight healthy, environmentally concerned consumers). By sculpting the CSR campaign so effectively, this outlines the high suitability the strategy has offered. Finally, environmentally the campaign is vast.

From research carried out by ‘Verdict’, Datamonitor (2011) many consumers will pay higher prices for products that contribute to the sustainability of natural resources, with 63. 4% of consumers agreeing. Since M;S target market are higher end consumers, this adds to the suitability of the strategy. In terms of stakeholder expectations, in line with the corporate governance theory provided, the ‘How We do Business Committee’ is co-ordinated by current

Chairman Marc Bolland who drives the social, environmental and ethical commitments that form Plan A, in line with stakeholder expectations. This is implemented by ensuring the activities are integrated into everyday activities that promote the aim of becoming the world’s most sustainable retailer. Strategic Change 2: Multi Channel Strategy: The Internet and Mobile Description of Strategy In the last decade there has been a sharp increase in customer traffic on the internet. Customer expectations have become higher as e-commerce is perceived as the norm.

This has resulted in the need for consumers to require access to brands at any time of the day and from any location. Marks and Spencer have therefore developed their online strategy significantly since 2007, introducing M;S Direct which now foresees their new ‘mobile’ strategy and ‘Shop Your Way’ facilities. According to their 2011 annual report, they have used the website to engage more customers, showcase more products and run unique web promotions, with Shop Your Way allowing their products to be even more accessible for consumers.

Sales in M;S Direct have increased by 31% to ? 543m, with ? 150m total investment expect in multi-channels by 2013/2014 resulting in predicted revenue growths of ? 300m-? 500m by the same year (M;S Annual Report, 2011). Their partnership with Amazon was confirmed on the 23rd March 2007 in developing a fully transactional website, reacting quickly to competitors such as Next who announced in the same week that online sales from the year ending January had reached ? 350m.

However, announced in 2011, the agreement with Amazon ends in 2013/2014, with M;S now working on their own ‘bricks and clicks’ international website platform, outlining the ambition of their internet strategy, as well as the appointment of Laura Wade-Gery as Executive Director of multi-channel e-commerce to help promote the growth of the strategy. Reasoning of the Strategy The m-commerce-enabled mobile internet site was introduced by M;S on the 12th May 2010, consulting with MIG (Mobile Interactive Group) for user experience, and design and functionality to launch in joint partnership with Usablenet.

The aim was product extension for the mobile channel, allowing access on the move. According to Marketing Week (3rd February 2011) its mobile commerce site recently came top of the second annual eDigitalResearch league table, demonstrating its success as a strategy. In an article published by computing. co. uk, Nicola Brittain claimed analyst firm Gartner predicted that mobile browsing will outstrip internet browsing by 2013, thus most retailers aiming to target this market niche (Brittain, 2010).

Furthermore, the need for a specific m-commerce site was necessary due to problems arising from viewing a standard web page via Smartphone’s, such as the hardware inbuilt on the phone restricting many data heavy pages. Theoretical Foundations of Strategy Business/Corporate Level Strategy The internet and mobile strategies describes previously both aim at increasing revenues for the retailer as a unit. Since the mobile platform and internet platform will sell products across the range of M;S’s SBU’s, they are both considered corporate level strategies. Ansoff Matrix

Strategic development directions are the ‘strategic options available to an organisation, in terms of products and market coverage, taking into account the strategic capability of the organisation and the expectation of stakeholders. In analysing the corporate level strategy, the Ansoff matrix will be further examined, to help summarise the strategic direction the retailer is facing, and using factors from the suitability analysis to do so. Source: Qwik Step, 2011 To determine the location of M;S on the matrix, other factors need to be considered also.

For example, when M;S suffered a decline in sales due to not being able to keep up with trends, due to competitor advancement such as Next, M;S also needed to considered situational analysis results to determine which strategy to opt for to promote company growth. Details of the situational analysis will be discussed in the evaluation section. This relates to M;S’s internet/mobile strategy since a PEST and SWOT would have helped indentify the opportunities available online and hence promote this strategy and determine their ocation on the Ansoff matrix, whilst capturing a holistic view of the strategic scenario of the retailer. Product development occurs with engaging existing customers with new products. Related to this strategy though is M;S offering its products to the online market through their transactional and mobile facilities. Market development is also implemented through selling their existing products to new consumers. For example the new services that ‘Shop Your Way’ offers such as flower and wine delivery, showing a change in strategic path.

Most significant of market development is the online strategy deployed which now engages new consumers through its world wide audience, a segment that was previously not targeted online. Diversification is evident through the retailers attempt at entering the UK energy and financial markets. Evaluation Suitability Following definitions previously set, a suitability evaluation will now be discussed. In terms of a competitor industry analysis, M;S needs to plan risks around its strategic choices, due to changes in target segments and dynamics of the environment.

Since ASDA, Tesco etc have the same portfolio of products and services as M;S; M;S needs to ensure a contingency plan is designed regarding cost-leadership rather than only focusing on differentiation as a counter to the competitive rivalry from other retailers. M;S Direct was therefore a response to competitor online facilities in order to protect their market shares and increase them as part of their market development strategy. From a technical perspective from the PESTEL, online retail sales in the UK have been increasing over the last few years, including a record ? 3,091 million in 2010, thus increasing by 16. 8% from the previous year. Furthermore from a social viewpoint, convenience has become a major factor for consumers, as well as the net providing the consumer with more control, ensuring they are savvy by nature due to awareness of competitor prices that the online facilities provide. Due to these factors, online sales are expected to reach ? 26,321 million at the end of 2011 and ? 30,088 million at the end of 2012 (Anon B, 2011).

Therefore, with these statistics and facts considered, the online strategy is very suitable as it is a growing sector that cannot be ignored. From an economic side of the external environment, it is evident M;S Direct has been a successful strategy since its beginning in 2007, with sales increasing to 31% in 2010/2011, reaching nearly ? 543million. Clearly this additional revenue through the implementation of the strategy shows it was a highly suitable change. Creating the ‘disintermediation’ effect for the customer, whereby M;S has cut out the middleman (i. e. liminating the need for the consumer to enter the shop, and instead the product going from manufacturer to consumer), has been well received if the financial results are analysed. Feasibility Feasibility is concerned with whether a strategy could work in practice, and whether the organisation has the capabilities to deliver the strategy (Johnson et al. , 2011). From a financial perspective the internet/mobile strategy is feasible since as mentioned in the 2011 Annual Report, the total investment in multi-channelling by 2013/2014 will be ? 150m with an expected revenue increase of ? 300m-? 00m. The feasibility of the people and skills involved with the strategy also suggest the strategy is viable. To ensure this, the initial online strategy venture was as mentioned, with Amazon, to ensure experience was on board to assist the strategy. Hence the feasibility is strong, and with M;S cutting ties with Amazon in 2013/2014, this shows the knowledge gained is sufficient for the retailer to go alone and pursue higher profits from the revenue streams. Furthermore, in order to increase the feasibility of their internet/mobile strategy, M;S have turned to social media (Web 2. ) methods. Although this is strongly linked into the technological side of the PESTEL, it is also a method that will ensure the internet strategy is more feasible as it looks to join in the conversation and better engage with its consumers. According to Sienne Viet, the business development manager for M;S, she said that ‘we use reviews for product-led customer feedback, Facebook for community building and rich media and Twitter for promotions, notifications and an instant feedback’ (Sienne Viet, 2009).

This process is managed by the M;S Direct team and shows that by engaging with the consumers, the strategy becomes more feasible and improvements can be made regularly to avoid strategic drift and ensure the strategy is a success. One of the manifestations of the internet transformation strategy is the increased capability M;S now have to engage in one-to-one marketing with the consumer by collecting end user data from the Web 2. 0 media.

This enhances their marketing and allows tailoring of products to suit the majority of their consumers, and in this manner the strategy is also demonstrated high suitability. Conclusion This report has predominantly focused on two of M;S’s many strategies in place in the current environment. Other strategies exist such as their internationalisation growth strategy and their focus on the UK market strategy and it is important to note that this report does not include all strategies.

Plan A and internet/mobile strategy were chosen since they were regarded as the most significant in today’s dynamic environment. From evaluation it has been seen they both offer high suitability, with clear capabilities to deliver as a result of some feasibility evaluation. The mix of strategies observed show a clever range of incremental and transformational approaches that Sir Stuart Rose implemented during his tenure, with Marc Bolland continuing furthermore. Plan A shows that incremental change can improve the organisation on a financial basis and from the viewpoint of the public eye.

It is also a clever method is saving the company money through incentives, whilst gaining profits as a resultant. Whereas the mobile/internet strategy shows the organisation was not afraid to make large scale strategic changes in order to boost their organisational performance, both domestically and abroad. Strategies introduced by Sir Stuart show that by analysing the external environment in its current state can allow the retailer to make better strategic decisions and reduce their chances of strategic drift along the way. Word Count: 4969

December 1, 2017