This research will begin with the background of Marks and Spencer Company. Then the study will give detailed information about internal and external environmental analysis and gives a review on corporate culture at Marks and Spencer Company. …
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10). Strategy and Structure Significant changes were announced by Marks and Spencer in March 2001 with regards to the strategic review of the business to strategy and structure of the company. The changes that have now been implemented by the company are mentioned below. Total Focus on UK retail The aim is to sell branded products and exclusive brands to Marks and Spencer in order to guarantee quality, value and services to the customers. Moreover, significant appeals have also been developed with regards to the products offered by the company and its availability in order to build strong relationship with the customers (Thompson & Strickland 1997, pp. 10). Recovery Plan for Clothing In order to regain confidence of the customers, the company is now offering quality clothing by rebalancing the price architecture, and by increasing their range of merchandise which has been communicated to the customers (Lewis 2005, pp. 25). Expansion in Units Expansion in other units such as food, home and beauty have also been planned which has enabled the company to perform well and earn trust of the customers mainly because of quality and innovative products that are offered to the customers. The aim of the company was to enhance the future growth of the company by opting for the opportunities that enable them to expand by offering products at new locations and channels (Hill, et, al. 1998, pp. 10). Since there has been an expansion in the home business, growth in home furnishing and gifts has been observed more significantly. Although demand for beauty products has also increased but it is significantly smaller than the division of home furnishings. However,...
The intention of this study is Marks and Spencer as a company which is known worldwide and it is very successful in its operations. This is mainly because of the quality products that it offers to the customers and also because of innovation. The largest division owned by Marks and Spencer is located in the United Kingdom and it was further divided into sub divisions which represented an area of merchandise that was defined. Significant changes were implemented by the company in 2001 which included total focus on UK retail, recovery plan for clothing, expansion in units, acceleration of store renewal programme and intensive use of space which were the internal strategies that were implemented by the company. However, the external environment included being closer to the customers and closing European subsidiaries. This decision of the company made 3350 people in France, Germany, Belgium, The Netherlands, Luxembourg and Spain lose their jobs. Moreover, franchising of business by opening stores in Hong Kong, dealing with competition by purchasing raw material from Asia, the economy of UK and the social trends followed in the region serve as the factors that make the external environment. Previously the culture that was followed at Marks and Spencer was backward and the company was slow to change. However, today change in culture has been witnessed with regards to changes which have resulted in innovation. Marks and Spencer not just promotes respect and integrity but it has also developed constructive relationships with the investors and decency is a part of the corporate culture.
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A study reflects a sound business performance of the company with satisfactory revenue through its sales and this status has been maintained inspite of several challenges and difficulties that the company had to face in the light of changing economic conditions in the business world. The company focuses on maintaining its position in the industry and develops its business with increasing the revenue more than before.
This paper details about the organizational culture and explains how the corporate social responsibility of Marks and Spencer related to the organizational culture of the firm. The paper concluded that CSR has been a major strategy Marks and Spencer has implemented to succeed in its market and to achieve competitive advantage.
Its department stores sell “mid-priced apparel, food, and household items under the company's private label brands, including Autograph, Classic, per una, and Portfolio” (Bevan, 2007, p. 121). More or less 90 percent of its sales are generated from the home country, where it is considered to be leading supplier of both women- and menswear.
The basic aims of M&S are to offer at a reasonable price, high-quality products with its trade mark “St.Michael”, to compel the suppliers to engage in most efficient and modern production strategies, offering convinient shopping experience to its customers, to simplify its operations thereby enhancing its business efficiency and to develop good relations with its stakeholders namely suppliers, customers, employees and communities in which M&S operate.
With each policies given, comparison of these with Hermes Principle is given to know that either these are in accordance with these principles or not. Later and lastly, the Hermes 10 principles are provided on which the firm work to take care of the investments of their customers.
M&S has a share of 11% in value market share and 11.2% in the volume market share. Food accounts for 51.1% and a market share of 4.3 %. (www.yahoo.org). Marks and Spencer Group plc was founded in 1884 and is headquartered in London, the United Kingdom.(Business Week Dec 6,2008) The international business of M&S accounts for 7.9% of the group's turnover.
Sales decline was 4.8 % in 2000.
The tools and frameworks applied to marketing in the UK do not differ to those used to market products in other countries. Identifying these issues and assessing their effect on strategy provides the basis for the M&S to analyse the causes of sales decrease and possibility to develop a new strategic plan in order to obtain a strong market position.
This report will apply the Porter’s five force model and PESTEL in a bid to evaluate the marketing and strategic analysis being used by Marks and Spencer in a country with a population of over 60 million and with high domestic market for the company’s
The conclusion from this study states that during the last couple of decades, it has been experiencing growth, stability and declining phases as a retail industry player in the competitive market. It is also determined that strategic position and strategic choice for an enterprise play vital roles to direct its operations towards the designated growth path.