Author: Kerry Sheehan Monday, 02 February 2004 1EXECUTIVE SUMMARY In the period up until the mid 1990's M&S had a market leading share of the clothing market. The bureaucratic approach views Organizations as being guided by rationality (Stanford 2007). All these communication strands carry consistent brand messages such as: The key brand values include the following: All these values apply to the internal market as well as the external market. Travel around the world and meet our suppliers in our interactive map. One of the interesting features of google+ is YouTube. The company's stores and outlets are strategically located across London. Over the last one quarters, M&S's revenue has decreased by 0%. Price has always been a big factor in the retail industry, but the last few decades have seen numerous budget retailers pop up in the United Kingdom.From budget clothing stores to budget supermarkets, these new competitors are stealing away market share from more premium brands (like Marks and Spencer), by encouraging customers to enjoy similar . For example, the food industry outperformed all other retailers in the UK. Discuss this statement with reference to the performance of the UK retailer Marks & Spencer over the last 10 years. The net income of the competitors decreases because of the COVID-19. The core strategy of M&S is quality, value, better service, innovation and trust. Such rules govern things like working hours, holidays, and communication protocols within the companies. April 26, 2021. https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. M&S operates as a family of businesses, selling high-quality, great-value, own-brand products and services, alongside a carefully selected range of third-party brands. Marks & Spencer Resources, Capabilities & Competitive Advantage Compiled for Paull Robathan. However, its main target is women who earn a high income. Debenhams has been selected closest competitor of M&S because they have a comparable product base. Basically external environment defines the competitive situation of organisation and potentially have both positive and negative impact on businesses analysis targets four major categories of external factors that affects company's capability to grow. Through differentiation and positioning, the Organization plans to become a global leader in the retail industry. 1. Introduction This has yet to be addressed by academics, especially in relation to the notable growth in environmental concern at this time. M&S clothes are mostly for the people of 35-55 ages and ignoring the younger ages. Jones, S.K & Silverstein, B 2009, Business-to-business internet marketing: seven proven strategies for increasing profits through Internet direct marketing, Maximum Press, Gulf Breeze, FL. Iceland is the big player in food market and captured the big market in UK and emerging as a main rival for M&S. However, that does not mean that it has neglected the other segments such as low-income earners. It also has to do with the choice of colors for the products and how the products are packaged. Communication is an essential component of business strategy because it enables organizations to reach their customers. The discussion has been described in detail about the core analysis of M&S' internal and external environment, SWOT analysis of M&S has been included. These products actually attract the customers and helpful in gaining competitive advantage. The following are the stakeholder groups with an interest in M&S: The employee market sector is broadly categorized into: The skilled employees are further categorized into the following segment: In terms of Organizational design, M&S is structured in a bureaucratic manner, that is, it has a chain of command. In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. It also helps in adopting the new environment and response to market demands. Diversity: Marks& Spencer have around80,000 employees who work in their showrooms . You are free to use it for research and reference purposes in order to write your own paper; however, you are all compete on price, quality, range, and service in order to strive for business success. Marks and Spencer Environmental Analysis SWOT Analysis Strengths M&S markets high quality and competitive products. As per economical responsibility, business should make some profit and provide a return on investment to their investors. The reason is that once employees welfare is taken care of, they become motivated and dedicate themselves to the success of the Organizations. The assets and ventures of the organization together ought to be utilized to eradicate the failures and the threats so as to build up a demanding philosophy against the dangers seen as threatening the progress of the company. Resource-based strategic analysis is based on the assumption that strategic resources can provide Plan Spencer an opportunity to build a sustainable competitive advantage over its rivals in the industry. Study for free with our range of university lectures! The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. Discover M&S and our different businesses, including Food and Clothing & Home. Advantages: The political environment under which the Organization operates is very stable. Marks and Spencer (M&S) has a tough and competitive external environment. It is remarkable that M&S promotes its website in-store to the people that are not aiming to shop initially but later they might wish to browse the website and become valuable customers. (Drummond and Ensor, Strategic Marketing Management, p. 149, Butterworth Heinemann) Marks & Spencer is a perfect example of a company that had a successful strategy but failed to adapt to the changing environment and have therefore suffered from strategic wear-out. M&s needs to use the advanced technology to introduce its products more widely in the market like online shopping and fast delivery. Women. The brand image has both physical and psychological aspects. Human resource cannot be imitated and helpful to firms value. The main reason for not to attract the new customer is high price and old fashioned clothes. MARKS AND SPENCER GROUP PLC QUARTER 2 2010/11 TRADING STATEMENT [Online], The company that our group has chosen to analyse is Tesco. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. This is the age of fashion and modernisation. Coles has started first supermarket in 1960 and till 1973 company achieved its primary aim of having supermarket in every Australian city. predictable outlook of their business and shift from process-focused to customer-centred is an important leap towards competitive edge and service efficiency. M&S is very sensitive to technological, social and economic factors. Media has played a big role in communicating new Fashion and price comparison to the customer. VRIO: From Firm Resources to Competitive Advantage. Free resources to assist you with your university studies! Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. Marks and spencer 1. In clothing market other retailers are performing aggressively with their brands to compete M&S. Marks &Spencer: company profile 2013, Web. The company has good relationship with employees. Jeremy, H & Steve, P 2012, Beyond performance management: why, when, and how to use 40 tools and best practices for superior business performance, Harvard Business Review Press, New York. Yudelson, J 2009, Sustainable retail development: new success strategies, Springer, New York. In 1894, Thomas invested 300 at that time and Marks and Spencer Ltd. was born (Our History | MarksandSpencer.com). The retailer focuses mainly on manufacturing of the clothes, furnishings and homeware accessories, luxurious food. However, Marks and Spence assessed all of these aspects at the planning phase of new product line which ensured that organisation have feasibility to manage specific strategic changes effectively with respect to timing. It is a chain of discount departmental stores around, Company Q is having few grocery stores in a metropolitan city. Key Findings External Environment ? Sims, R 2007, Human resource management: contemporary issues, challenges and opportunities, Information Age Publishers, Greenwich, Conn. Slideshare.net: Marks & Spencer strategic analysis 2015, Web. In order to achieve competitive advantage M&S needs to focus on the following steps: M&S is offering different kinds of products like food, clothing and furniture. The VRIO Framework or VRIO Model is part of the Resource-Based View (RBV), which is a perspective that examines the link between a company's internal characteristics and its performance. Marks and Spencer Marketing Mix: Marks and Spencer, commonly called M&S, is a public limited company of British origin. Iceland sell very cheap food as compare to M&S. It has a diversified product portfolio that includes. Here there are number of aspects that are necessary to take in consideration such as company should make sure can the developed business strategy be funded, organisation have the capability to meet the required level of performance in terms of products quality, store services and other. A little competition can be a healthy thing. HelpMe.com: Marks & Spencer strategic analysis 2015, Web. The Organization has rules of conduct at the workplace. (2021, April 26). Big brands like NEXT, Gap, BHS and Burton are attacking M&S in clothing business. The reason is that they enable Organizations to achieve their objectives. M&S should add one more thing to their strategy and that is modern. This includes having an organisational culture which promotes diversity, inclusivity, personal development and respect. To serve such a high number of valued customers visiting 600 stores in the UK the company employs more than 75,000 staff worldwide (Company Overview | MarksandSpencer.com) . The Organization also has a Twitter handle where those who want to know more about it are requested to follow the Twitter handle. Sustainability | Marks & Spencer Sustainability As a business that's been around since 1884, we know how important it is to look to the future. Marks & Spencer is one of the UK's leading retailers with over 21 million people visiting their stores each week. The external environment of Marks & Spencer is comprised of all the elements that determine what the it needs to compete in its respective industry. Marks and spencer is a public limited company because they sell shares to the public. This model has enabled the Organization to satisfy the shopping needs of many customers within a short time without incurring huge costs. M&S is providing good customer services at the stores. The management believes in collecting and assigning . Strinfellow, A 2010, About flat Organization structure, Web. Marks & Spencer is set to open 20 new stores, creating 3,400 jobs, as part of a 480million investment to overhaul its estate. Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. Marks and Spencer experienced a complex renegotiation of its relationship with the environment and resource use as it underwent rapid expansion and changes in the period 1968-1992. In the field of strategic management, the concept of differentiation refers to the process of making a product or a service popular among customers. The company has 979 stores around the United Kingdom plus 454 stores on the international field. The reason is that the customers in this age bracket are usually attracted to fashion trends. Thompson, J & Martin, F 2005, Strategic management : awareness and change, Thomson Learning, London. In food, M&S needs to build a clear position as a specialist of food retailer. Marks and Spencer is a major British multinational retailer headquartered in Westminster, London. Mark and Spencer mission statement as former times and still is 'Good quality for the penny' whereby the penny turned . (Murray, 2013) . M&S should enter this market segment either by starting new business or by acquiring another company such as Next who is well known for stylish clothes for children and younger aged consumers. The analysis as a whole, however, has a number of limitations, including the fact that the companys financial factors for 2011 are not available. We know its our people who make M&S successful. 3. M&S is lacking the ability to understand the changes in social trends. As external environment is one of the most important factors for businesses, it cannot be ignored. Even though focusing on specific segments may enable the Organization to make huge profits within a short period of time, it may not be sustainable in the long-term. Most of them are pensioners and upper class people would like to pay a lot for their clothes and food. It has been identified as one of the best managed companies in Europe (Tse, 1985). The new government has increased the VAT from 17.5% to 20% that has cause the fall in sale in M&S business. Operation decisions are influenced by marketing strategies while marketing strategies are affected by the outcomes of other KBFs. Leat, M 2012, Exploring employee relations, Routledge, London. Reinventing strategic management: New theory and practice for competence-based competition. As the students are the most valued customers due to frequent money spenders, Primark attracting them by officering cheap and fashionable clothes. (2021, April 26). Due to these circumstances, some recommendations for John Lewis are to take all or most of taxes on itself and be aware of new entrants. Customer Assistant (Customer Interaction), To join M&S workforce, company offers the. The company is employing approximately 80000 people in 2020. Contextsustainability.com: Report review: Marks & Spencer Plan A report 2014: Putting consumers centre stage 2014, Web. professional specifically for you? Something else which M&S would want them to know is that the Organization has a potential for growth and as a result, they should dedicate all their efforts to help the Organization grow (Gattorna 2009). The reason is that it aims at delivering quality and affordable products and services to all its customers over the next three years. Suppliers These forces and factors are very vital for M&S survival and growth in the competitive market. Marks and Spencer known also as M&S is a constituent of the London Stock Exchange's list and is present in the FTSE 100 Index. Armstrong, G & Kotler, P 2009, Marketing. The basic business pillars of M&S are Trust, Values, Quality, Service and Innovation. Marks & Spencer's main products and services are clothes, food and edible items, and home products. The reason is that the Organization always aims at treating all its customers equally. Worldwide in terms of profit it is considered as third leading retailer and in terms of revenue it is regarded to be the ninth leading retailer. Organizational set up has to be favourable to support new product development. Thompson, J & Martin, F 2010, Strategic management: awareness and change, Cengage Learning, South Western. Introduction. The reason is that some of its targeted customers, like the high-income earners with high social status require customized products and services. P PoliticalExternal environment scanning is concerned with the forces and factors that impact on M&Ss business. The price sensitivity of the customer has produced more competitive environment. If done well, differentiation enables customers to purchase specific products or services in a market flooded with many varieties of products and services (Thompson & Martin 2010). The Marks & Spencer (M & S), celebrated their 120th anniversary in the year 2004 and for company's chief Executive position, Stuart Rose was appointed. M&S: 2015 A year in preview for sustainable business 2015, Web. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Doing the right thing is in our nature and as a company, embedded in our values. "Marks & Spencer Company's Marketing Environment." Boosting personalized selling (Thompson & Martin 2005). M&S needs to focus on the top end of the clothing market but deliver stylish cloths, beautifully made with fantastic value. Pricing strategies, for example, cant be set lower than the costs of making the products (reaching break even point). The Organizations strengths and internal resources can be summarised as shown below: Some of the key issues which the marketing department of the Organization must address over the next 3 years are as follows: M&Ss overall objective is to become a global leader in the retail industry over the next decade. As a result, it is not easy to micromanage the work of the suppliers for them to manufacture customized products. Facebook has a function that allows people to like the Organizations page by clicking on the like button. The reason is that it makes them feel part and parcel of the Organization, which in turn increases their loyalty to the Organization. The strategy has also enabled the Organization to constantly update its customers and stakeholders on its undertakings. M&S is a listed company under the London Stock Exchange. The reason is that those women have expressed a lot of interest in womens outfits which are currently sweeping across the UK and in other markets. M&S can increase its growth through offering new kitchenware and bedding products. Just like Facebook, the majority of people who are on Twitter also have email addresses. Its competitors have faced a financial crisis in 2020. After two years of growth, the food and fashion giant has been stopped in its tracks by a grim combination of economic factors, ranging from bad mortgages in the US to rising petrol prices and the mountainous personal debts of British shoppers., Marks & Spencer became the first British retailer to make a pre-tax profit of over 1 billion BBC News online 1998 Though a few years later Marks & Spencer were hit by the credit crunch which has had a dramatic effect on the company as they struggle in the current economical climate., References: Marks & Spencers Press Release, 2010. Coles service has more than 18 million transactions each week. An efficient strategy can help an organisation to achieve an upper hand through commitment to its strategic objectives and the capacity to significantly expand execution and profitability (Bartlett & Ghoshal, The paper highlights an SLA and business case for a new business application proposed for Kmart New Zealand. 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