Strategic Management- Marks and Spencer's 2011

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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 Introduction 3 Marks and Spencer 3 Strategy Definition 4 Strategic Change 1 5 Plan A: Aim of becoming the most sustainable retailer 5 Description of Strategy 5 Reasoning of Strategy 5 The Strategy 2010-2011 5 Theoretical Foundations of Strategy 6 Corporate Governance 6 Business/Corporate Level Strategy 7 Vertical Integration 7 Scope of ‘Plan A’ Strategy 8 Utilitarianism 9 Evaluation 9 Suitability 9 Strategic Change 2: 12 Multi Channel Strategy: The Internet and Mobile 12
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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 resources and competences with the aim of fulfilling stakeholder expectations’ (Johnson et al., 2005). According to this definition, the
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