Case Study of Marks and Spencer Essay

trigger mark and Spencer is one amongst the main sellers in terra firma managing over 600 monetary pecuniary resource and handling more than workers. At present, the in corporald is that the leading supplier of womens wear and nightclothes at bottom the UK. at heart the space of different attire, these get to incurred a material quantity of ripening. The bodied do-gooder every(prenominal)y provides for solid food retail. This report has been found on strategicalalalal throwning of mark and Spencer. labor movement 11.1. Explain the impressiveness of impertinent factor affecting an system to begin your report describe how you should wont grind and rivet compendium to exempt the received context of an system of rules in your chosen case hit the books.SWOT compendSWOT compendium is that the abstract that helps agreement to search divulge the military post of their substantial and excessively the image of product deep down the legitimate mart th eyre in functioning this analysis helps to search out the subsequent points of the organisation at heart the grocery (Henry, 2008)StrengthWeaknessesOpportunitiesThreatIf we feed to do a similar analysis in tag and Spencer than pastime would be the results of the analysis in keeping with the on cover version of strategic ex adenosine monophosphatelesOpportunitiesBelow atomic number 18 the opportunities for label and Spencer on which it potentiometer non bad(p)ize its strengths recruit in unseasoned commercialize with the wonted product how eer with glorious outlay. mark and Spencer squeeze out enter in uphill marts much(prenominal) as India and China to armed ser immorality the opportunities of growth in these foodstuffplaces. Become a best-loved fashion supplier with raw thinking till 2012. Fashion intentness has authority of growth in future. mark and Spencer asshole avail this opportunity by expanding its store networks.ThreatBelow argon the threats available to M& axerophtholSChange in fashion production and clothes by competitors frequently peck concern the grocery dish out of label and Spencer. Change in polices of government in foothold of monetary policies that top executive impact the borrowing place of M& adenosine monophosphateS. change magnitude challenger in the trade place has forced the ac confederation to be rivalrous in constitute. Beca enforce of intense grocery competition, label and Spencer female genital organ face reducing in its trade parcel of land. Because of increase in inflation, deal power of guests is decreasing. This keep impact the market sh ar of comp whatsoever at life-sized scale.Political abridgmentThe government of kingdom encourages physician in its territory. This go off be in the first place seen at heart the varied corporations that modernise from completely different components of kingdom. Its whatsoever clock standard that any variety of duty is autho rized within the aforementioned role on condition that its non contrary to public constitution, public sight, or any existent laws applicable in kingdom. This can be exhilarated with the rank and file of kingdom in commerce blocs bonny ilk the Common commercialise and worldwide trade administrations like the globe throw Organization (Daft, 2010).Economic AnalysisThe UK is among the centres of commerce in Europe as an entire. Shoppers argonnt restricted to the native voters as a considerable amount of travellers congregate on the streets of its urban areas on a repeated basis. This can be correspondingly assort within the context of the retail  commerce, specifically within the neck of the woods of swish articles like fashion and attire (Collier, 2004). The knob base has the propensity to come to legion(predicate) sorts of wear betting on the public variety of weather of the realm.Technological AnalysisA lot of people in joined solid ground are resourceful of accessing within the net. This intimates that variety of the feares square meter able to maximize of their operations and protract by using e-commerce initiatives. This is a great deal primarily seen in foremost retail organizations like Tesco. Hence, on-line promoting and buys effectd within the course of meshing is popping intent on be one amongst the emulous blessings no genetic by the leading retail organizations in UK. 1.2. discover how the select and expectation of put up holder here influenced the strategic decision of the backing selected in the case discover Stakeholders absorb different expectations from the organizations. Future strategic casts of the company can impact the expectations of its situationholders and vice versa. Following are the expectations of stakeholders of mark and Spencer find outing strategic decisions of argument Shareholders They are the individuals who subscribe to confideed in the company.The shareholders of label and Spence r expect advanced sound reflection on investment from the strategic decisions interpreted by management. Employees The employees of label and Spencer expect put-on security and heights salaries. In rundown to this, the employees of tag and Spencer also expect boldness of a poseing running(a) surroundings by means of with(predicate) with(predicate) strategic decisions. Customers They are precise of the essence(p) stakeholder of label and Spencer. They demand that strategic decisions of company offer hem tone product and services at their gizmo trance maintaining price at low-priced range. Community The community is also an chief(prenominal) stakeholder of tag and Spencer. It demands that the attach and Spencer must bear towards it by dint of its strategic decisions in edges of sustainable practices. 1.3. Explain the changes in the external environs in the case study ex adenylic acidle that baffle close to happened so far. The STEEP analysis of mark and S pencer is good to crush the external environment of the company.The STEEP analysis of attach and Spencer is as follows Political Factors Within the case of mark and Spencer, one amongst the supererogatory worrying political elementary split that they rent to modify is that the issue of take regime and preservation of commercial relationship. historic period ago, the event makes an attempt sought-after by the organization are restricted by many encroachments of worker rights that primarily are against labour laws non solely within their operations in the domestic direct however additionally in their foreign endeavours (Marr, 2006). This can be significantly specify in their French operations whereas the organization was charged of grave abuse and break of serve of celebrated labour laws. Economic Factors Increasing inflation has impacted the market share of the company.The analysis of economic factors has portrayn that the buying power of customers is decreasing because of change magnitude inflation. In addition to this, increasing competition and slow growth of the exertion has impacted the market share of company. In the last 25 days, market share of mark and Spencer has declined from 14.8% to 10.8% (Zoe, 2012) Social Factors In the framework of social and cultural aspects of the messting, the unwavering United Kingdom has the tendency to be extremely loyal to a selected unanimous. The reference of bore of the deal is imperative in to each one deal however may effortlessly be defeated by a fairly competitive paygrade dodge from an opposing whole. Current observations evenly level that predilection on voguish designs over the classics looks to indicate among the United Kingdom shoppers. Technological Factors Increasing technological procession in the patience has impacted the faculty of the processes. Decrease in toll can be achieved through good use of technology. The industry analysis shows that label and Spencer h as non been efficient to respond to technological advancements.TASK 22.1. Explain the effects of its menses subscriber line externalizes on your organization.The Vision and guardianship of attach and SpencerThe company seeks to grow into a world category distri exclusivelyor. Marks and Spencer intends to get this by specializing in 5 signalise growth areas A. the corporate seeks to still invest in and grow its sum of money retail business by introducing peeled product and services B. the corporate seeks to strengthen its shoes portfolio. C. the corporate seeks to boost on its M& deoxyadenosine monophosphateS Direct businessD. the corporate seeks to expand on their international business E. the corporate seeks to integrate immature operations in doing business by incorporating their Plan A. The current business portfolio of Marks and Spencer can be accessed through BCG matrix. BCG Matrix suggests that it is good in terms of attire and has position of stars on the B CG matrix. However, in food market, the position of Marks and Spencer is at fountainhead mark. This is because market share of Marks and Spencer in food market is very low. The industry growth in fashion market of United Kingdom is also show which suggests that the position of Marks and Spencer is moving towards dogs. With substantial inflow of capital and differentiation of products and services, Marks and Spencer can take position of stars on BCG Matrix. 2.2. Review the organization present position on the market place, and consider in particular its customer base, and more generally its rivals.Marks and Spencer take a crap robust weapon in trade very robust name. This implies that their whole is related to factors like category and persona. former(a) department that the corporate hold is seen in its prosperous history in mercantilism. At some stage in the years of its functions, its obtained an honest range of thingamajigs that function coinmaking institutions for Marks a nd Spencer. on board this history is that the continuation of established partners and alliances that has been obtained by means that of over a hundred of business. Among the most flaws of the corporate square account 1st and foremost perceptible in its management. Specially, a match involving the arrangement of the corporate, the casing of its trade, and therefore the authentic management approaches has still to be established. Moreover, being a playing artist within the competitive business of retail, an organization should own active agent promoting talents (Michael, 2009).However, it seems that Marks and Spencer has been insulation in terms of selling enhancements like loyalty cards and operation of customer-focused functions. The market share of Marks and Spencer has been declining in the market of United Kingdom. In the ancient year i.e.2011, the market share of Marks and Spencer has change magnitude from 10.9% to 10.4% because of intense competition and shortfall of p urchases (Zoe, 2012). In 1989, the market share of Marks and Spencer was 14.8% in the United Kingdom which has decreased in the 25 years because of increasing competition in the market (Zoe, 2012).The strategic means of Marks and Spencer put up played important role in this regard. The strategic political programs of the competitors have worked tellingly and increased their market share. For instance, the market share of Next (competitor of Marks and Spencer) has travel from 1.5% to 7.5% in the equivalent period (Zoe, 2012). Therefore, the biggest sympathy behind decline in market share of Marks and Spencer is its strategic protrudes (Zoe, 2012). 2.3. quantify the competitive strength and flunk of your organization current business strategies.StrengthsReputation Marks and Spencer is the famous make in the United Kingdom. Strong image of brand is the major(ip) strength of the company that attracts customers. Online Shopping Marks and Spencer allows customers to purchas e through internet. Online shopping allows convenience to customers and contributes in strong position of the company.Weaknesseswearisome to change Marks and Spencer is slow in its response towards changes in customer trends and preferences. The competitors of Marks and Spencer can take returns of this weakness of the company by responding quickly to market changes. Lack of youthfulness the products and services of Marks and Spencer are not advanced and creative. Competitive deserving Low creative thinking, advancedness and response to changes in environment have reduced the competitive worth of Marks and Spencer. Shortage of Suppliers Marks and Spencer does not have wide choices of suppliers. In this way, the company is weak in its buying power. depute 33.1. Suggest strategic selection for M& angstromSThe strategic options for Marks and Spencer can be unconquerable through hard-hitting analysis of industry and competitor moves. The ANSOFF Matrix can be effective dick for suggesting strategic options for Marks and Spencer. The ANSOFF Matrix for Marks and Spencer is as follows marketplace penetration This is the dodging through which existing products are pushed in the existing market. food market education This is the system through which peeled markets are searched for the existing products of the company. Product organizement This is the dodge through which new products are real for the existing markets of the company diversification This is the dodge through which new products can be developed for new markets of Marks and Spencer. Marks and Spencer can implement this schema by adding differentiation factor in its products and pushing new products in new markets.The above strategies are effective for the Marks and Spencer to increase its market share in the United Kingdom. The company has strong capabilities which can be incorporated in the strategic plans of the company in an effective way to achieve its excogitations and objective s. 3.2. Describe the activity of business rivals which compete with your organizations and value the impact of such an activity on it. The competitors of M& international adenosine monophosphateereS are identified as departmental stores, small local retailers and supermarkets. In more specific form, the competitors of M&S are Debenhams, House of Fraser and BHS. Moreover, Tesco and Sainsbury have also been giving competition to it to some extent. The competitors of M&S are using model of shop within a shop. They have been focussing on the expansion of their businesses across United Kingdom. Tesco has adoptive a policy of offering wide price cuts to customers for increasing its cut-rate sales volume.In 2012, it has showered customers with price cut offers. These extensive discounts offered by Tesco (Wallop, 2012) may impact the business of M&S because customers tend to buy the products that are priced low. In this way a substantial customer population of M&S may stir up towards Tesco. This may result in decrease in market share of M&S. 3.3. Returning to your suggestions (3.1) for strategic option, how would you develop them get on in light of this competition? In relation to the competition, expansion strategy can be very effective for Marks and Spencer. As competitors are expanding business across the geographical boundaries in order to increase their market shares, Marks and Spencer can also excel in the market by adoption investment strategies. In real terms, this can be make by saving cost through cost leaders strategy. By adopting cost leadership strategy, Marks and Spencer can have cost and invest it for expanding its operations.Cost leaders strategyCost leadership strategy may be a strategy during which company offers low price with visor quality to the shoppers. Company pass on sale its product at average be of trade so as to suck in tall profits. The second chance is that company sells its product at lower be than the trad e cost. The concept behind this report is to drag out in elevateder(prenominal) market share. By getting price reward firms leave behind get competitive advantage within the market. Price leadership strategy exit be adopted by raising the processes of business so inefficiencies leave be aloof from the business (Pearson, 2009). preeminence Strategy preeminence may be a strategy that enables firms to supply distinctive merchandise or services that have price to the shoppers. The distinctiveness in merchandise or services should not be offered by the competitors. All the promoting methods aim to wee differentiation. Differentiation is that the prime supply of competitive advantage for firms (Porter, 1980). The differentiation strategy permits firms to draw in customers at higher costs. Differentiation strategy permits firms to charge high costs to the shoppers so as to supply distinctive merchandise and services to them. Promoting methods are designed so as to draw in cus tomers and to supply individuality to the shoppers.Focus separate strategyThis dimension is not a separate strategy in and of it, but describes the scope over that the company lack to contend supported worth leadership or differentiation. The firm can worth additional extremely to contend at intervals the mass market (like Wal-Mart) with a roomy scope, or in focused market section with a slim scope. In either case, the concept of competition depart still be either cost leadership or differentiation (Michael, 2005).Market DevelopmentThis strategy connotes investment in different markets and inception. It is only the difficult magazines when businesses get a chance to fudge and revise their current strategies and implement new ones. Apart from this, most companies may pretermit right(a) resources to implement a proper business strategy or they might just make temporary changes in their market structure and less maintenance to product basis. This reduces the chances of an in vestment strategy to be successful.TASK 44.1. Now normal these suggestions into a coherent business plan, and indicate how the structure of the plan unavoidably to be developed with participation of pertinent stakeholder. Suppliers Suppliers are called key stake holder of any organization. Particularly in Marks and Spencer they need an excellent influence and that they hold the  reproofs power thats wherefore any new strategic policy might have an effect on them, and so once M&S have new strategy or changes within the organization they need to recognize and discuss its connected confine with their suppliers (Smit, 2003). The suppliers of the company can be knotted in the strategic plans by develop partnerships with them so that consistent supply of quality materials can be ensured with cost effective buying.CustomersCustomer are key stake holder of any organization as a result of they hold the money within the stores of any company and have the facility to spend i t wherever ever they require, that the policies of the corporate ought to be kind within the means that defend the use up of consumers (Burns, 2009). The new strategic plans of the company must involve customers through effective marketing strategies.EmployeesIn any organization particularly if we tend to took an example of M&S they need managers with the expertise of six to 7 years and that they are perpetually direct in a very same setting with loyalty and proficiencying with the nice name, thus its important to require additional care of workers whereas doing strategic planning for organization. The higher than di hallucination of stake holders with their level of interest and power shows the result they may create within the strategic planning. 4.2. Describe eliminate criteria for reviewing potential options for the proposed strategic plan. The criteria selected for the evaluation and monitor of proposed plan is as follows Suitability This factors refers that whether th e boilers suit project is worthwhile and rational or not. The proposed plan for Marks and Spencer result be evaluated that whether the strategy addresses the boot of the company or not. Moreover, this factor also assesses the effectiveness of the proposed plan of the Marks and Spencer from economic point of view. SWOT analysis of the company is conducted to address this factor. feasibility This factor refers to the idea that whether the company has plenteous economic resources for achieving the aims of proposed plan. The resources admitd in this regard are market access, people capital and expertise. with cash flow, forecasting, resource deployment analysis and break even analysis leave behind be used for evaluating the worthiness of the proposed plan. acceptability This refers to the idea that stakeholders of the company have concord with the strategic aims of the proposed plan. The financial and nonfinancial outcomes of the proposed plan of Marks and Spencer are access ed through this factor. The employees would have concern about the nonfinancial outcomes of the proposed plan such as about working conditions.4.3. Describe how the plan includes an assessment of the resources call for to implement the plan. The strategic plan of any organization needs to be reviewed on regular basis so that its results can be mensural against set objectives. In order to implement the strategic plan, resources are required (Marr, 2006). Marks and Spencer needs to assess its adjacent resources for effective implementation of strategies plan pecuniary resources Marks and Spencer has strong financial resources in the form of capital and store networks. It is a listed company having plenty of funds available for expanding its operations and improving current business practices. Human resources In more than 300 stores of Marks and Spencer, huge work force is present which is qualified and efficient and has potential for achieving financial returns for the company.TAS K 55.1. analyze the core values of the organisational against its current business objectives. The core values of M&S include quality, innovation, customer values and commitment. In addition, M&S believes that it is a trusted retailer and has a strong heritage of super qualified and efficient employees. Moreover, engagement and stake of employees in the business objectives is also preferred by the M&S. The objectives of the M&S include providing quality products with high innovation. Moreover, the organization also has aim to provide customer each time a new product. In this regard, the core values i.e. innovation and quality supply are highly related with the organizational values. In order to produce innovation in the product, the employees are encouraged and entangled in the organizational processes and designs. In this way, it is express that the organizational values and objectives of M&S are aligned with each other.5.2. Develop these values into a mental imagery of the organization and suggest a mission statement that expresses these values. The core values of Marks and Spencer are stated in following vision To be the best brand against which all other competitors are measured The mission statement of the Marks and Spencer is as follow To provide quality products to customers while increasing market share 5.3. Describe how this vision can combine with the business objectives of the strategic plan, so that an exalt vision of the future of the business can involve all relevant stakeholders. The vision of the organization is to provide the best brand to customers in comparison with the competitors products and brands. On the other hand, the organizational objectives include providing high quality innovative products and services to customers.The inspiring vision of providing high quality and innovative products has been effectively distributed and transformed into organizational objectives. The employees at the lower end are app rised of the organization vision because they are devoted appropriate environment to produce innovations and creativity in the products. In the strategic plan, the organizational objectives and vision is combined to produce high quality and innovative products. In future, the strategic plan give provide highly effective because it has involved the all relevant stakeholders of the organization.The employees are involved in the strategic plan to produce creativity and innovation in the products. The customers are involved in a sense that they are provided high quality and new product products. by means of innovation and quality in products, the sales and market share of the company may increase. This may result in high profitability of the organization which leave finally contribute positively to the shareholders of the M&S. 5.4. Develop measure for evaluating your strategic plan.In order to evaluate the strategic plan, following measures are developed Ongoing observe The obj ectives of the strategic plans are sustainedly monitored on the basis of the objectives. The ongoing and completed objectives will be monitored that whether the strategic plan is engraft effectively or not. For the ongoing objectives, suggestions or appropriate actions will be interpreted to lead the overall strategic plan to appropriate accomplishment. The actions of the plan objectives will be measured on regular basis. soft and quantitative measures will be adopted for evaluating the strategic plan.TASK 66.1. Develop a schedule for implementing a strategy plan in an organization. Formulating a timetable permits the corporate to possess a close map out of the strategy. Within the case of Marks and Spencer, the population of a timetable permits them to understand the vision of the corporate by specifically pinpointing actions required to for its implementation. A timetable permits the corporate to possess a naive cut and elaborate define of the events. This is often addi tionally an honest tool to alive(p) whether or not or not the corporate is moving forward or not. The schedule for the implementation of plan is as follows First Year The research and increase activities will be effectively developed to introduce the innovation and creativity in the organization.The customer traffic will be meliorate through offering innovative and quality products. Second Year The market share will be improved through offering long term benefits to customers. The customer loyalty cards will be used for get uping customer loyalty for the organization. Third Year Finally, in the third year the company will tend to expand its market to areas where it has not shown its presence. sore stores will be unfastened by the organization. 6.2. Describe system of info dissemination most likely to inspire stakeholders commitment to the plan. Communication regarding strategic plans can be of two types (John, 2010)proactive converseReactive communicationIn this particular ca se, proactive communication instrument needs to be implemented. Before implementing plan, all stakeholders must be communicated for getting their suggestions regarding strategic plan. This will not only build trust among stakeholders but also enhances chances of effective implementation of strategic plan. Through continuous reporting and meetings, shareholders will be informed about the strategic plans of the company. The shareholders of the company will be involved as active part of the company so that they can get satisfaction regarding policies of management. The suppliers and customers will also be kept informed through reporting. The customers will be informed about the new offers of company through advertisements and marketing tactics.In this way, Marks and Spencer will be using both types of communication strategies in Marks and Spencer. Before the implementation of plans, the shareholders and employees will be taken into confidence. On the other hand, after significant ach ievements, they will be informed through reactive communication strategy. 6.3. Describe system that will continually monitor and evaluate how your strategic plan is implemented, one that anticipates future opportunities as headspring potential problem.The system for evaluation and monitor of the strategic plan must include wide range of data. The company needs to collect data from several resources regarding the progress of the plan. After data collection, results must be measured against SMART objectives designed for the plan. In order to counter with potential problems, Marks and Spencer needs to implement a finale of innovation. management by Objective tool will be used by Marks and Spencer for the monitoring of proposed strategic plan. instruction by Objective is the way through which objectives will be defined by the management and employees of Marks and Spencer in treaty with the strategic objectives of the organization (Daft, 2010). Employees will be given clear unde rstanding of the aims and objectives of the company.Through following way, this plan will be implemented in the company position Objectives In the first step, objectives are set by engaging supervisors and employees in a coordinated way Developing plans In the next step, plans are developed for the achievement of strategic objectives of Marks and Spencer. Periodic Reviews On periodic basis, evaluation will be made regarding achievement of strategic objectives. The implementation of all objectives will be assessed through effective implementation of plans. military operation approximation Lastly, the performance of employees will be appraised against the set objectives. This step will be effective for granting rewards and promotions to employees. Effective appraisal system will help the management of Marks and Spencer to incite its employees in an effective way.ReferencesMichael A. Hitt, R. Duane Ireland, Robert E. 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Management International. Illustrated. Cengage Learning EMEA John, 2010. Management. Ed. 11th . John Wiley & SonsWallop. (2012). Tesco sales improve as discounts draw in shoppers. Available at http//www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9121175/Tesco-sales-improve-as-discounts-draw-in-shoppers.html Retrieved on 20th May, 2013