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Subject Edexcel ID:

Project Development and Implemention for Strategic Managers

Introduction: In this assignment I have selected an organization to discuss it planning and strategies of planning and how they made their decision by knowing their external factors. First of all, I will discuss the company nature and its work of area and afterwards I will discuss the strategic planning factors in that organization. The organization is described below: Marks and Spencer nature of work and Background: Business without planning and without effective marketing strategies cannot lead or survive in long term period. Thats why it is very important to analyze the strength and weakness while doing planning of business to survive as a leader with maximum profit in long term period. Now we will discuss the strategies with its nature of business and current situation in the market and will analyze its strategies. Marks and Spencer is the food and non food retailer having more than 350 branches in more than 39 countries. They are selling food and non food products and recently they have started energy product and they usually manage 60% of business online that includes receiving the order and dealing with customers. They are currently more reliable in United Kingdom and having large number of projects that protects the interest of general public. These projects are mentioned in Plan A. Objective of Marks and Spencer and Factors Affecting It Long term Goal of Marks and Spencer is as follows:
y

All products must have the one content of Plan or must have the quality of Plan A until 2020 and half of this should be complete until 2015 (Marks and Spencer)

Sort term Goals of Marks and Spencer: y y Developing knowledge and confidence in customers to buy our products online. Launch a Green Idea worth 100,000 that means by introducing the most environmental friendly idea by customers and M&S will give the prize to them.

Management Strategy: Now we will discuss the management strategies and its relation with other external factors that how they implement their planning to meet their long term objectives with the influence of external factors. Needs and expectations 5p Carrier Bags Strategy: Marks and recently launched an expense strategy for their customer that was charge of 5p of the carrier bags, but by doing this they did receive appreciate by the customers and the environmental agencies that help them to protect the environment. It was found in annual report of M&S last year that a big amount that fills the land is the shopping bag by taking the initiative they launched the scheme that covers one of the commitment of plan A and help environment to reduce the wastage that goes to land fill. Effect of the 5p Strategy: By implementing this strategy they became the market leader at the point of protecting environment they attract the customers by showing them the benefit of less use of carrier bags, and how their mutual action can help environment to be more protective and healthier for every one. They attract large number of customers and this strategy later on was copied by other food or non food retailers. Analysis of the Effects on strategy Yours M&S with apparitional quality: Launching new styles with affordable process and doing campaign to show that how productive and efficiently produced their products are, they actually study the nature of customers and after that they analyze the situation of the market and the policies of their competitors and implement the strategy with the name of your M&S to show them they have got the exact same, that their customers are looking for. In their annual report they showed their interest that how they

achieved the sales target by starting this campaign and their high street shops increased their motherly sale by 9% to 10%. Making the Strategy by doing Analysis and applying tools: In midterm report of Marks and Spencer they indicate the way they plan their strategy which was using of SWOT analysis and PESTLE analysis, these analysis support their business strategies not only in terms of achieving sales target but also able them to grow business in new areas more successfully. Now we will discuss the example that how these strategies able them to survive as a leader in the market even when the retailer companies have to reduce their businesses to maintain the level of profit for stake holder, how they increase their business with increasing profit and customer satisfaction? (Study Skills, 2010) SWOT Analysis: SWOT analysis is the analysis that helps organization to find out the position of their brand and the image of product in the current market they are operating this analysis helps to find out the following points of the organization in the market: y y y y Strength Weaknesses Opportunities Threat

If we do the same analysis in Marks and Spencer than following would be the results of the analysis according to the above strategic examples: Strength: Following are the strength of the M&S according to the SWOT Analysis: y y y y Brand Image Biggest Non-food retailer in United kingdom Sustainable retailer in the UK according to the British Govt. Awarding Ceremony High quality and new fashion products every week and month in high street stores

Weaknesses: Following are the weaknesses when we analyze the market position and it strategies with its competitors: y y y Competitive Price Shortage of Suppliers Lack of management at sales level

Opportunities: Below are the opportunities for Marks and Spencer extract after doing the SWOT analysis, these are as follows: y y y Enter in new market with the existing product but with excellent brand value Become a preferable fashion provider with green thinking until 2012 Have a green production plant first time in UK with the success of Plan A implemented in Marks and Spencer. Threat: These are commonly covered and overcome by the upcoming opportunities these threat could be from the govt. policies and competitors, but the advantage of SWOT analysis is this that they identified the upcoming situation and help organization to measure their performance and do strategically planning to become leader of the market. (Rapidbi, 2011) These threats could be as follows: y y Change in fashion products and garments by competitors on quick basis Change in Govt. polices in terms of monetary policies that could effect the borrowing power of M&S y y Competitive Prices Supplier bargaining power

These are the few explained analysis that helped M&S to plan their strategy. Now they have implemented the strategy to focus and attract the minds of the customers by other social

activities and allow them to come in the stores and visit their website that ultimately increase their sales and attach customers experience with it. Position of the Organization and structure Stakeholders: Stake holders are the name of group of persons or the organization that have stake in an organization directly or indirectly and have their benefit in the circle of that organization. This circle refers to profitable circle. They are also affected by the change in management and change in their strategies and policies. (Salto, 2010) Participation in Marks and Spencer: Board of Directors

These are the people who have high level of interest and any policy which is going to implement effect them in terms of annual profit or the dividend they received on their values of shares. They are also known as a superior stake holder of the company as they are the founder of the company. Suppliers Suppliers are also known as key stake holder of any organization. Especially in Marks and Spencer they have a great influence and they hold the bargaining power thats why any new strategic policy could affect them, so when M&S have new strategy or changes inside the organization they must know and discuss its related contents with their suppliers. (PDF Cast, 2010) Customers: Customer are also key stake holder of any organization because they hold the money in the stores of any company and have the power to spent it where ever they want, so the policies of the company should be form in the way that protect the interest of customers. (Change Perform, 2010)

Employees: In any organization especially if we took an example of M&S they have managers with the experience of 6 to 7 years and they are constantly working in a same environment with loyalty and progressing with the good reputation, so it is very important to take extra care of employees while doing strategic planning for organization. Structure with Importance of Stake holders in Marks & Spencer

Low

Customers
Small Shareholders

Suppliers

Analysts & Commentators

Workers and Staff

Power

BOD/Highly trusted Share holders

New trained Management

CEO & Old Management Team

High Low High

Interest
(Dur, Cultural Web for Marks & Spencer in 1998)

Comments: The above division of stake holders with their level of interest and power shows the effect they could made in the strategic planning. MISSION Following is the mission statement of Marks and Spencer. Now by considering the opportunities and coming threat we have made some changes in the mission of Marks and Spencer because of that I would suggest some changes in Strategic planning and will show a new strategic plan to achieve their future goals. Old Mission Statement: Our mission is to make apparitional quality accessible to all New Mission Statement: Our mission is to make asp irrational quality products by using no carbon machineries and by using zero landfill material In new mission statement we are not only focus towards asp irrational quality but we have added some thing new which is to create a better environment for our customers with pure and non artificial material. Before implementing this mission we will discuss the strategy that would support the mission as well as the interest of key stake holders. Supportive Strategy for Marks and Spencer, comparative strategy and options discussed for future strategy Below we will discuss the new strategies that will support our new mission as well as the interest of M&S key stake holders, these strategies are also based on the analysis SWOT we did discussed in above paragraphs. These strategies are divided with the importance of several factors such as financial importance, customers preference etc.

Perspective Financial

Results External Brand Value Financially sound business

Strategic Supportive Objectives Use of financial resource to let the people know that how we care about their lives with use of marketing tools Increase the brand value by starting competitive campaign Meet the career progression target and sound opportunities for employees and financially sound policies for the whole management Zero landfill commitment with charity organizations partners like Oxfam

Charity partnership organization

Customers

Customer Preference

Let know customers about the importance as a shipper of M&S they have Online selling and door to door delivery would increase the sales level

Market Stability Consideration of buying power

Competitive process with competitive quality at store Use of competitive policies by doing SWOT analysis Study of customer interest time by time to update the fashion and food products in store

Internal

Internal Process and meeting the

It is very important in any organization to control the task by mid term audit to check the following:

commitment of Plan A

Achievement of short term objectives Performance of each and individual employees Focus towards goals

Innovative Ideas and New Products Increase in Product Line

Productivity and development professionally and personally By regular developing new ideas and by taking the help from R&D team the company could apply the rule to increase their product line by 2 to 3% in every 3 months.

Learning & Growth

Learning stage to maturity stage

While doing mid term audit they could find any need of the following: Training process Need of Hiring and firing employees Progress of coalition of team work Creating a platform for mutual discussion of ideas

By implementing above main points they would lead internally maturity stage and they have proper management system that would only focus towards the product development and increasing the brand image in to the market. Another important point is doing mid term reviewing programs and internal audit would help them to find out the need of training it could be for strategic competitive policies or for personal and professional development. Basic Requirement: The need of basic thinking is this that every organization is currently facilitating the customers and protecting their level of interest by doing SWOT analysis M&S should carry on the scheme that shows the loyalty of customers for Marks and Spencers.

If we take an example of Pound Land they mostly providing values thing to their customers and creating the image of their brand that they have Amazing value every day this could be a important point of discussion incurrent situation, they must follow the above discussed points in table to cover the both internal market and stake holder interest. Reviewing: To understand the importance of reviewing we will in general discuss the importance of reviewing when we forget the things. There are four major theories of forgetting things: 1. Fading 2. Retrieval 3. Interference 4. Interactive Interference Now we will discuss briefly its description and will relate the importance of reviewing with it. Fading Fading theory relates to the forgetting things when they are not in practices again and again. That mean once person learned it and afterwards he didnt do any practice and with the span of time he almost forget 80% of method of the process. (the free dictionary, 2010) Retrieval It is not the same as fading but this theory explained that things are not forgotten if they labeled correctly. Interference It is theory that explains the knowledge that conflict when there is no more space to store data user need to relate it with old one to keep it remember other vise he cannot retain old data and new one together. Interactive Infrastructure Some times person remembers the title and introduction and in last he remember conclusion the rest of the material he forget to avoid this situation he need to choose only one topic at one specific time to avoid any problem that occurs to them. (Bucks, 1997)

Importance of above discussion with Marks and Spencer strategy: These all theories that tell the importance of reviewing the same knowledge again and again help employee to remember it but also help them to repeat it more efficiently and quickly. The reviewing process in above strategy is need to be placed again and again inside the organization to review the performance it time by time and to find out the need of talent needed by the employees of Marks and Spencer.

Implementation of strategy with appropriate time scale: Implementation process is not easy to understand but it needs the same above discussed process of reviewing before implementation of strategic plan it need to be measured the performance and affectively implement with the process of reviewing. Reviewing the process also includes the exact and measurement of time scale of implementation to get the desired results on designed time with exact financial and economic situation. (Nottingham, 2011) Below are the time scale that is showing the about the implementation of above strategies time by time with the process of reviewing and monitoring time by time. Importance of Time Scale: Time scale is not only need in designing the strategies but it decides the companies progress and its time of achievement, now if we take the same above discussed companys example they are currently having the time scale for long term goal that is commitment of plan A until 2020 but they have not minimized the values of this long term goals in to short term goals on time basis they need to focus their short term goals and strategies according to the time scale that would help them to get the short term goals on time that would support the long term goals to be complete on time.

Time Scale

E A C T I V I T E S C B A H G F E D

6 WEEKS

10

12

A B C D E F G H I

Analyzing the current position and competitors analysis Minimizing the cost and increasing the productivity Use of marketing tools to capture the market share Work with environmental friendly companies Review and monitoring process inside the organization and management Act according to the result of reviewing and analysis Increase the benefit for customers by introducing Loyalty schemes Short term Wins Timely external audit

In above time scale it is clearly shown that how they can implement and timely review their progress short term goals. Now we will discuss it separate to know their individual relation and importance related with each other. Analyzing the current position: In first week M&S will analyze its market position and will do SWOT analysis and Pestle analysis to find out the power or strength and weakness of their companies as well as their competitors by knowing this they can plan their action for future. For example their competitors have introduced the loyalty scheme for their customers that attract lots of other customers as well, by knowing their direction of marketing M&S could increase the level of interest by giving the voucher with the barcode that will increase the discount for the customers who have previously visit in shop or online and did shopping from their. These kinds of strategies would help them to increase the level of interest and beat the market with healthy competition. Minimizing the cost and use of marketing tools: There are several ways to lead in the market and one of the important ways is become cheaper in cost. By doing this after the analyzing the strategies of competitors they could reduce their unnecessary plans and increase the marketing exercise by using marketing tools such as 7ps or marketing mix tools. (Buzzle, 2010) Reviewing and Short Term Wins: We have already discussed the importance of reviewing the progress in Marks and Spencer and have already discusses that how it could be more useful for implementation process now we will see that how it is more useful for the policies of short term wins. Lets take the example of Marks and Spencer, suppose M&S are selling their products with excellent customer relation, M&S introduced the scheme that the sales man who reached the specific target of sales would be awarded short term wins benefit and the timely reviewing process would help org. to show their efficiency on high street chain shops and that would ultimately made them able to produce new ideas for sale. (Tutor 2 u, 2010)

This is not only implementing in sales department but also useful in production department to make them more efficient. Compare core organizational values with the current business objectives of an organization These are normally tradition and customs which company has been practicing as socially acceptable practices wherein management believes in. These values one hand reflects the management approach and on the other helps to earn empathy of public/customers. Marks and Spencers has been practicing following values and norms as part if their corporate policy. This is one of few company wherein department like social responsibility have been set up under senior management. Respect to stakeholders Team work/group formation with the employees Honesty Exchange/sharing of information Value to customers Un match- able services Commitment Professionalism Personal development

Develop Appropriate Vision and Mission statement for Marks & Spencer

MISSION It is to express the fundamental purpose of the organization. This explains the position ,a company is aiming to take in terms of market, customers ,competitors and operational outcomes. Following is the mission statement of Marks and Spencer. Now by considering the opportunities and coming threat we have made some changes in the mission of Marks and Spencer because of that I would suggest some changes in Strategic planning and will show a new strategic plan to achieve their future goals. Old Mission Statement: Our mission is to make apparitional quality accessible to all New Mission Statement: Our mission is to make aspirrational quality products by using no carbon machineries and by using zero landfill material In new mission statement we are not only focus towards asp irrational quality but we have added some thing new which is to create a better environment for our customers with pure and non artificial material. Before implementing this mission we will discuss the strategy that would support the mission as well as the interest of key stake holders.Emphasis is given on protection of environments. Vision is the level or stage where an organization sees itself on long term basis. It is long term view of organization in context of its shape, market position, competitive edge, reputation, brand development and overall success of the entity.

Produce agreed future management objectives for an organization Objective is the purpose of the organization for future .It is the reason for its existence and effective Objectives are considered with SMART composition: Specific Measurable Achievable Realistic Time frame Objective of Marks and Spencer and Factors Affecting It Long term Goal of Marks and Spencer is as follows:
y

All products must have the one content of Plan or must have the quality of Plan A until 2020 and half of this should be complete until 2015 (Marks and Spencer)

Sort term Goals of Marks and Spencer: y y Developing knowledge and confidence in customers to buy our products online. Launch a Green Idea worth 100,000 that means by introducing the most environmental friendly idea by customers and M&S will give the prize to them.

Develop measures for evaluating strategy plan Strategies are the ways to take them to their objectives. Once, developed and implemented become vital primarily for the survival and then for the growth of the business. The selected strategies are evaluated by using different tools and techniques to ascertain the right path suitable for the business to reach to desired goals/objectives. Strategies warranting performances are evaluated by setting up standards of performance using different methods for their successful implementation: Balanced Score board Competitive advantage Bench marking ISO 9000 Program evaluation Quantitative techniques Qualitative techniques The other methods of evaluation of successful implementation of strategy are the use of contemporary methods like: 1. Sales 2. Profits 3. Market share 4. Customer satisfaction 5. No of complaints 6. Stakeholder satisfaction-employees performances

Suitable structure for the strategy plan that ensures appropriate participation from all the stakeholders of an organization An organizational structure is a manner whereby operational responsibilities are coordinated and controlled to achieve the organizational goals. Different researcher have placed different degree of importance to the organizational structure. John Child says that Without good organizational structure ,good performances are almost impossible.

These structure are framed based on the chosen strategies to exercise requires span of control and degree of centralization and decentralization. The other factors for selection of organization are: y y y y y OPERTAIONALNEEDS FUNCTIONALBASIS PRODUCT DIVISION/RANGES LOCATIONS GLOBALISATION

In Marks and Spencer ,the organization hah adopted a functional structure where every department enjoys decentralization which helps them to take timely and prompt decision for day to day operations.

Develop a criteria for reviewing potential options for a strategic plan

Strategies are considered ,developed and implementation for the improvement of operating result within a business set up. In organizations, the stakeholders are internal and external and all of them have some expectation from the organization .These expectation and importance of each holder gives some ability to influence the business and management at the time of corporate decision making. The stakeholder derive /enjoy some power which is proportionate to the stakeholder position on the continuums . In Marks and Spencer ,the strategic plans are reviewed to evaluate its impact on other part of the business including impact on the internal/external business environment. Marks and spencer apply the stakeholder analysis method to analyze: 1. Stakeholders 2. Stake interest/expectation 3. Stakeholder conflict of interests 4. Stakeholders influences 5. Stakeholder power 6. Impact over business/organization 7. We have to maintain the records when anything monitor 8. The thing we are going to monitor must be relevant to our plan 9. We have a system of continuous checking 10. Technology is very important for evaluation as this is a time of technology we are going to use software for quick evaluation

11. Receive comments from stakeholders they are very helpful in evaluation of strategy plan 12. Keep eyes on the results as well. By evaluating short terms goals we monitor ourselves and it will be easy to achieve long term targets.

13. Prepare professional report for stakeholders that will help in the further evaluation process keep records of stakeholders comments as well.

Construct an agreed strategy plan that includes resource implication Every strategic decision requires the requisite resources of all kinds including but not limited to human resources, financial resources including production resources like manpower, machines, mechanism ,money ,material and methods etc. The required resources are aligned with possible means to acquire them, e:g possible sources of financial resources like financing, leasing, hire purchase, investment by share holders or investors etc. The terms and conditions and arrangement in terms of timeframe and cost and evaluated .In this process ,main emphasis is given to acquire required resources as per time line set by the strategic manager: y y y y y Listing of resources Options of acquiring resources Prioritized list of resources Comprehensive cost calculation Overview of resources

The key for success is a well-coordinated approach with clear accountability for overall implementation of resources. Exchange of information and plan takes place among the concerned departments as well as the sources. At Marks and Spencer following steps are considered for effective implication of various resources. y y Strategic manager ensures well-coordinated execution of the action plans Each department, office, and unit will assign a coordinator, who will help mainstream the required actions by each y y The budget and implementation plan will be reviewed annually Ensure an effective and efficient implication of resources

Develop a schedule for implementing a strategy plan in organization It is the process of arranging complete set of activities in a manner so that these are completed /accomplished within the available timeframe. Following steps are considered by Marks and Spencer:

y y y y y y y

Defining and setting the required operational actions Allocate the required resources Schedule of activities Assigning various tasks to concerned departments Developing Clear and Understandable measurements Overview of possible obstructions Identification of main challenges

Create Appropriate Dissemination process to gain commitment from stakeholders in an organization

It is the process of communication with stakeholders to draw positive commitment from them. It is worth noting that any strategic implementation can take out two possible out comes like positive or negative. Marks and spencer adopt an proactive approach and ensure its success by following various steps: 1. Setting up the goals of dissemination process for the stakeholders 2. Setting up specific objectives 3. Describing the details of potential audience or respondents 4. Identification of sources like primary and secondary sources of information 5. Medium of communication selected 6. Removal of barriers from Dissemination process 7. Evaluation of success of dissemination process

Designing monitoring and evaluation systems for the implementation of a strategy plan in an organization Monitoring of strategy implementation has its utmost importance as strategic managers are interested to see the results of strategic implementation. Various techniques are used using a balanced scorecard and key performance indicators. One of the most significant elements for strategy implementation involves the need to define and implement a strong process for monitoring the implementation project, including executive involvement. Monitoring processes must be preplanned, incorporating many insights that emerged from the strategic directions that defined the implementation project. An important goal is that implementation must never be an adventure, that the monitoring team has clarity from the start about the milestones and metrics that they should be assessing throughout the implementation process. The executive team of Marks and Spencer hat is overseeing the implementation process should know what killer variables might derail success, have solid ideas about what Plan B options are available. They also need to learn the changes in the external and competitive environment. The strategy team at M & S would identify priority opportunities, with a very heavy emphasis on involving customer and market inputs to such decisions. There was considerable optimism that the changes that were planned would turn around recent disappointments. The first major change that was made involved the first major stage gate. To go from concept to development at this stage gate, the process now requires the definition of the customers expected to eventually buy the product, the factors (including product features and price points) that were determined to be critical to their purchase decisions, and the identification of an external team from end customer and distributor organizations that could be involved in reviews and decisions at subsequent stage gates. The second major change that this firm implemented was formally requiring the development team to bring three options to the table at each subsequent stage gate.
1. 2. 3. 4. 5.

Communication of the strategy to all levels of the organization strategic goals and programs Focus on strategic initiatives winding down on programs which are not valuable for the company Development and monitoring of key performance indicators at all levels Involvement of staff in strategic management

6.

formation of a communication environment for discussion of strategic issues, increased responsibility of staff for the timely delivery of their work Formation of long term potential to increase business value

7.

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