Marks and Spencer Critical Analysis - Case Study Example

Marks and Spencer Sustainability Analysis by + Marks and Spencer Sustainability Analysis Introduction Marks and Spencer Company operates under 3 P’s including profit, people and planet hence, it is said to be a sustainable company. The paper addresses the problems associated with sustainable operations at M & S by examining various aspects including reverse logistics, supply chain, quality systems management and operation policy. The Supply Chain Monczka, Handfield, Giunipero, & Patterson (2011) describe supply chain management as a set of three or more institutions directly integrated by one or more of the upstream or downstream course of products, funds, services, and information from a reliable source to a customer. A critical analysis of the company’s supply chain including sourcing of raw materials is crucial to this essay and will be considered together with the firm’s relationship with suppliers and its means of transportation. Raw Materials M&S was production-led than design-led and had established many close relationships with its suppliers but with the mounting competition from low-cost suppliers in the global market, M&S were disadvantaged than their competitors (Zsidisin & Ritchie, 2010). Consequently, the company significantly changed its supply base strategy from having a bulk of suppliers in Britain and few in the Far East to significantly increased sourcing from countries including Mauritius, China, Cambodia, Sri Lanka, and Bangladesh. The company changed its strategies to ensure that its primary raw materials are obtained from the most sustainable source possible, so as to ensure environmental conservation and the world’s natural resources, (Gattorna, 2009). Produce such as milk, fruits and vegetables that are produced through organic methods are supplied locally to cut down the shipping costs. Ekstrom (2015), state that the company’s clothing packaging and supply declined by 46% especially through the hanger recycling. Relationship with Suppliers Baldwin et al., (2008) note that M&S runs a bilateral communication hence, it observes an open and honest discussion as an indication of a healthy relationship and support its suppliers to becoming proactive and open in identifying the company’s weaknesses. As a way of motivating its suppliers, M&S organizes joint trips with the suppliers to attend trade shows and visiting transnational suppliers of raw materials (Baldwin et al., 2008). Baker and Bass (2004), state that the company obtains support from ZIP that is designed to provide the company with a high competitive advantage in children’s garments through advanced supply chain management. Changing its relationship with suppliers has helped M&S to improve its cost saving strategy (Baker and Bass, 2004). Transportation M&S relies on vans for major transportation services. Coyle et al., (2002) state that the company partnered with Joint Retail Logistics to produce and assemble a light weight automobile to cut down fuel consumption by 16%. The move to manufacturing a vehicle is sustainable and can help the company to minimize the trips if the vehicles deck is increased by 70%. It can also improve transportation by using trucks or Lorries to carry bulky loads and minimize the cost and fuel. Reverse Logistics and Sustainability In 2012, Muthu (2015), explains that the Marks & Spencer organized a popular event in partnership with Oxfam referred to as Shwopping. The primary purpose of this event is to encourage its consumers to donate second-hand clothes for reuse or to be remodeled. M&S alongside other companies engage reverse logistics from a green perspective to control the flow of products meant for manufacturing, reuse or disposal (Muthu, 2015). The company also recycles plastic bags and boxes to make tissue papers that are sold in stores. It also promotes organic farming by converting the organic waste from fruits and vegetables into renewable energy. Quality Management System M&S were extensive and cautious global retailers that ensured “Quality, Value and Service,” (Williamson, 2004). The company’s implementation of the ISO 14001 in 2007 resulted in the establishment of Plan A as a sustainability strategy. The plan was established as an economic and environmental approach consisting 100 goals that are set to be realized by 2015. Brokaw (2012) note that successful implementation of plan A enabled M&S to reduce total carbon emissions by 23%, increase energy efficiency by 31%, shrink waste by 28%, decrease water consumption by 27% and decrease plastic carrier bags by 80%. Kelly (2006) state that M&S actively takes part in initiatives such as Back To Work Program in which M&S provide employment opportunities for disadvantaged people such as the elderly and disabled. Operation Strategy and Sustainability M&S adheres to Fit Operations Resources in relation to marketing theories thus; its base of product users maintain a conscious environment with high alerts and murmurs concerning global warming caused by the emission of greenhouse gasses. Its reliance on Plan A operation and sustainability policy have resulted in some explicit business benefits for M&S (Yudelson, 2009). Conclusion Conclusively, the paper established that M&S employs the 3p’s hence; it is a sustainable company. M&S also proved to be sustainable by increasing returns through low-cost raw materials and energy consumption. It promotes the use of the second p [planet] by ensuring operations that are environmentally friendly. M&S undertakes social responsibilities through its social initiatives through the creation of jobs to the society. References BAKER, S., & BASS, M. (2003). New consumer marketing: managing a living demand system. Chichester, West Sussex, England, John Wiley & Sons. p. 155 Baldwin, Y.C., Clack, B.K., Magretta, H.J., and Fisher, L.M., (2008). Harvard Business Review on Managing the Value Chain. Boston, Harvard Business School Press. p. 107 - 108 EKSTRÖM, K. M. (2015). Waste management and sustainable consumption: reflections on consumer waste. p. 172 Gattorna, J. (2009). Dynamic supply chain alignment. Farnham, UK: Gower. p. 308 MONCZKA, R. M., HANDFIELD, R. B., GIUNIPERO, L. C., & PATTERSON, J. L. (2011). Purchasing and supply chain management. Mason (Ohio), South Western Cengage Learning. p. 13 MUTHU, S. S. (2015). Roadmap to sustainable textiles and clothing: environmental and social aspects of textiles and clothing supply chain. p. 256 WILLIAMSON, D. (2004). Strategic management and business analysis. Oxford, Butterworth-Heinemann. p. 186 YUDELSON, J. (2009). Sustainable retail development: new success strategies. Dordrecht [etc.], Springer. p. 13 ZSIDISIN, G. A., & RITCHIE, B. (2010). Supply chain risk: a handbook of assessment, management, and performance. New York, Springer. P. 144 Read More