An Overview of Strategic Management

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1. What were the main issues that the incoming CEO [Mark Bolland] faced in 2010? What capabilities could he make use of to deal with these?

External issues:
P: -------
E: UK economy decreased 4.9% in 2009, unemployment rate more than 8% S: People who aging over 65 years old spend less food and drink T: Rapid development in E-commerce as well as M-commerce
E: -------
L: Food laws, new tax laws, the VAT 20% in 2010

Porter’s five forces model Analysis:

Threat of entry (medium): it is cheap to make a start through online shop Threat of substitutes(high): many other stores can offer high quality food The bargaining power of buyers(medium): as can easily switch but cannot make bargain for the price. The bargaining power of suppliers(low): the company has high power from supplier systems The extent of rivalry between competitors(high): competitive pricing and low profit

Internal issues:
. Leadership style: top-down and autocratic management style . Aging customers: M&S was still failing to be a hit with the mid-age range demographic and that 2/3 of its customers were still 55 years+ and that not much has changed. . Financial: expect for cost savings, M&S had made little financial progress since Rose took over in 2004, he called for change to be more far-reaching. . International growth: Very little international capability. . Food: Its ready-meal bias, which once set it apart, is no longer special. Waitrose in particular is on the attack and has recently overtaken M&S in market share for the first time. . Distribution problem: The network of 110 warehouses, for instance, has to be reduced to four "mega-shed" distribution centres. The retailer also has too many stores in the wrong place – on high streets rather than retail parks – and its internet sales are far lower than they should be. . Poor online and multichannel capability.

. New challenge: The GIVe stores presented M&S with new and direct competition.

Bolland’s capabilities:
Food: This...
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