Now M&S has to figure out the new fashion and customer taste. 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. Written by Md. Customer service staff members are the representative of any company, Marks and Spencer Customer Assistance is the face of corporate staff that provides high quality services with their commitment and enthusiasm to make sure they deliver the service according to the customers expectations. At M&S you can shop around many things for your daily life use and life-style i.e. Pearson & Saunders 2013, Strategic management of information systems, John Wiley & Sons, Hoboken. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Whereas, it is estimated that each week, the number of people who visit M&S is more than 21 million all around the UK (Company Overview | MarksandSpencer.com). As a result, the closure of the division due to poor performance is not the best solution to deal with the problem. How they are opening even more stores within different areas and how their profit is rising., businesses. Read our latest Family Matters Index report here. Once that happens, the users are able to receive updates on various products and services in their e-mail inbox (Pearson & Saunders 2013). As a business thats been around since 1884, we know how important it is to look to the future. As the students are the most valued customers due to frequent money spenders, Primark attracting them by officering cheap and fashionable clothes. Marks and Spencer, does benefit from expanding its business internationally. Our people bring our values to life. 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. Today, we'll discuss the swot analysis of Marks and Spencer. M&S in a western world is a managerial giant (Drucker, 1974). However, pre-eminent retailer the John Lewis Partnership ('the group'), with its partnership structure so unusual in retail, seems to be fitted with some kind of antigravity device. The employee market sector has various segments. These products actually attract the customers and helpful in gaining competitive advantage. Mission, Objectives and Responsibilities of Mark & Spencer with its environment. But sustainability of that position is very hard challenge for every organization. We're here to answer any questions you have about our services. The main competitors of M&S are listed below: The main strength of these competitors is that they focus on trendy fashion. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. Marks and Spencer is a major British multinational retailer headquartered in Westminster, London. Proposals include eight full-line stores in shopping centres, such . When a brand is advertised on Amazon.com, it is accessed by millions of people across the globe and as a result, Amazon.com is capable of strengthening its brand identity. Marks and Spencer follow each and every primary business ethics of the business environment. They have to consider the bottom up planning. Therefore, Tesco's business success indicates that effective operations strategies have played a vital part in supporting and driving its whole business objectives which is "to create value for customers to earn their lifetime loyalty"., The following report analyzes marketing and financial performances of John Lewis PLC. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. New media technologies can be used for efficient delivery of new taste and fashion trends from factory to store displays, better communication with designers, producers and suppliers is very important for the company, Zara is one of the fast market changing competitors of M&S, it is important that M&S be ahead of any of its competitors while keeping its classic touch of style in some range of products. It is preferred by many companies that want to increase their coverage and number of customers. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning. The reason is that the closure would negatively affect customers loyalty to the clothe ware products of the Organization. Weakness are the areas where Marks & Spencer can improve upon. Caring about our impact on the world today and in the future is good business. The strategy has also enabled the Organization to constantly update its customers and stakeholders on its undertakings. As a result, it is not easy to micromanage the work of the suppliers for them to manufacture customized products. Positioning seeks to stabilize and retain the positions of the differentiated products for a particular Company so as to retain the competitive advantage of the Company in regard to those products (Ferrell & Hartline 2010). 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. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. The Organization has a Facebook page where it posts information about what it does, the kind of services and products it deals with, its uniqueness, and how customers may get its products and services. The analysis of external environment enables M&S to understand the changes in business environment and brings ahead of its competitors. The basis of obtaining competitive advantage is to derive a competitive strategy that provides the customers with what they need or want in a more effective way than the competitors. (2021) 'Marks & Spencer Company's Marketing Environment'. At M&S, we know there is no Plan B when it comes to our planet. M&s needs to use the advanced technology to introduce its products more widely in the market like online shopping and fast delivery. And the second target of M&S is the well paid job holders. The retailer focuses mainly on manufacturing of the clothes, furnishings and homeware accessories, luxurious food. Some of the M&Ss products need to be redesigned according to customers demand. M&S can achieve better competitive advantage through managing the people at work in other words utilising human resources. Out of all the stores, two stores were not making any profits, so Company Q has recently closed those two stores. There were many reports that M&S no longer understood the customers' needs and had misread its target market. Political decisions and circumstances are very important for the M&S. The Organization, therefore, needs to establish a division to deal with the designing and production of the customized products for customers who need such products. How Sainsburys have capitalized on their sales. The company will follow the same pricing strategy by highlighting its off-prices on different platforms. By analyzing the strategic analysis of the company, we will be able to survey the strengths, opportunities, weakness and threats in the relationship with its structure and operations in the UK and general markets concerning its retail business. Responsible sourcing and human rights are fundamental in allowing individuals to lead a dignified and independent life, free from abuse and violation. The company is employing approximately 80000 people in 2020. A little competition can be a healthy thing. Almost no food online M&S will begin selling its main food ranges online on 1 September, after missing out on the market for years. The external environment analysis pays attention to the factors affecting the company and is often referred to as the macro environment. 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. Introduction M&S hopes to make huge profits from the sale of womens outfits (M&S: transforming M&S 2014). Those three processes are people, strategy, and operations. Marks &Spencer: company profile 2013, Web. Shadequr Rahaman Email: circlebiz96@gmail.com Like this: Loading. The competitors of Marks and Spencer are Macy's, John Lewis Partnership, Asda, Debenhams and Tesco. For any brand to be popular among customers, it does not only need to be marketed on popular sites like Amazon.com but it also needs the development of an excellent brand image. Reinventing strategic management: New theory and practice for competence-based competition. Once they follow, they are able to access the Organizations business information. M&S Quarterly and Annual Revenue Trailing 12-Months Trend (TTM) Annual Revenue $14.3B M&S's revenue is the ranked 3rd among it's top 10 competitors. IvyPanda. M&S is growing in menswear and kids wear market rapidly. Summary. The initiative has been restructured to reflect the Organizations new four pillars namely below: This initiative is highly valuable to consumers. Within 10 years Michael Marks had at least 12 premises, his business skills took him to his friends in the search of potential business partner, he approached one of his friends Isaac Dewhirst, whose money had loaned towards his original costs at start up, refused his offer but referred Mark to Thomas Spencer who was working for Isaac as a senior cashier. In consideration to qualitative and quantitative aspects of strategic proposal it is evaluated that with new product and market Development Company can. The reason is that some of its targeted customers, like the high-income earners with high social status require customized products and services. Employees are selected not on the basis of friendship, but on merit and qualification. Marks and Spencer, originally known as Penny Bazaars, was founded by Michael Marks in 1884 as a clothing sales company in Northern England. Opening more store and bringing in more variety in the products. As they operate in many. But we cant do it alone; were collaborating with industry experts and inviting all our customers and colleagues to help us. The marketing strategies of the Organization involve advertisement on various platforms on the internet. A general overview of Marks & Spencer is followed by a PESTEL analysis which offers a comprehensive look at the company's strategic business environment. M&S needs to focus on the top end of the clothing market but deliver stylish cloths, beautifully made with fantastic value. M&S can gain competitive advantage through producing different products and services from those of its competitors. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. Spencer Marks has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network. The brand image has both physical and psychological aspects. Analysis. However, in terms of responsibilities, those at the bottom are mostly involved with the daily activities of Organizations while those at the top are mostly involved with policy issues and public relations activities. It is because the competitors in the market have been attempting to control the market. With "Plan A," Marks & Spencer redefined corporate social responsibility UK retailer Marks & Spencer's "Plan A" - a massive effort launched ten years ago to restructure its operations and become the world's most sustainable retailer, is close to succeeding. Strinfellow, A 2010, About flat Organization structure, Web. Big brands like NEXT, Gap, BHS and Burton are attacking M&S in clothing business. The core strategy of M&S is quality, value, better service, innovation and trust. For example, the food industry outperformed all other retailers in the UK. 3.1 PESTLE Analysis It stands for Political, Environmental, Social, Technological, Legal and Economical factors that are within environment. Woolworths started fresh food stores around 80 years back in 1924 at Sydney Australia (Kahwaji, 2014). In today's business . 26 April. Iceland is the big player in food market and captured the big market in UK and emerging as a main rival for M&S. These factors affect Marks and Spencer's marketing position, low price theory and . When people like the page they are able to access the Organizations business information such as services offered, physical addresses, the Organizations mission and vision among other information. 1997 - European Management Journal. The bureaucratic approach views Organizations as being guided by rationality (Stanford 2007). Armstrong, G & Kotler, P 2009, Marketing. 1. Competition 2015, Web. In the world Coles and Woolworths ranked 19th and 15th among the selling retailers (Knox, 2014). M&S also enjoys a friendly social environment in all the countries where it operates. Its competitors have faced a financial crisis in 2020. 2. Currently M&S is regaining its better position as economic conditions are moving positively. M&S relies on differentiation and positioning to attract and retain its customers. In reference to Marks and Spencer, it is essential for organisation before making use of best-in-class benchmarking to measure organisational performance by analysing internal as well as external competition. It would therefore advise them to engage in charity work as a way of giving back to the community (Jeremy & Steve 2012). Due to its huge popularity, Amazon.com is capable of building brands for different products from different companies (Lunden 2012). All employees are therefore selected through a transparent and competitive process (Strinfellow 2010). However, its main target is women who earn a high income. Similarly, in the food section, although they have retained their market position, sales were less significant - this means that competitors are quickly catching up (Interim results presentation 2004)., The clothing retail industry has been and is undergoing significant changes resulting from processes of globalisation, changes in consumer demand as well as changing corporate activities in terms of strategic marketing decisions. -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. Strategic business plans are set by considering the growth rate of the industry and current situation of the business. M&S can increase its growth through offering new kitchenware and bedding products. Some objectives that they have set are to:, Marks and Spencer. Kmart is retailer formed by the purchase of Coles group. are all compete on price, quality, range, and service in order to strive for business success. - Spencer Marks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Marks and Spencer should focus on developing economies throughout the world for expanding their business and gaining sustainable competitive advantage. The bureaucratic structure is based on the bureaucratic theory of management. M&S is also facing a high competitive environment. We know our customers want to do the right thing for the planet and the people who make our products, so we make it easy for them. These techniques show the strengths and weaknesses of the organization and as well as their opportunities and threats that are possible to the business in order to form an effective developed strategic plan during the process of operation. The main aim of marks and spencer is to maximize profit and become the worlds most sustainable major retailer by 2015. The reason is that over 85% of people who have an e-mail account are also on social media. Operation decisions are influenced by marketing strategies while marketing strategies are affected by the outcomes of other KBFs. It simply means that M&S has positioned itself to attract all types of customers. The reason is that they enable Organizations to achieve their objectives. It depicts that role of best-in-class benchmarking data play efficient role in decision making process which is dependent on the business requirements of Marks and Spencer (Shao L. P., Similarly, it is also essential to assess the feasibility of the constructed business strategy to determine whether it can be implemented to new product concept development successfully or not. Public spending cut is another political decision that is a big hurdle in the business growth too. M&S is making investment in customer services and assistance section. Following is highlighted some factors of M&A's external environment and how they effect Marks & Spencer in executing its strategies: (P)OLITICAL As M&S products are older fashioned and expensive, they have to make a strategy that deliver more customer oriented product on less prices. Bodnar, K & Cohen, J.L 2012, The B2B social media book: become a marketing superstar by generating leads with blogging, LinkedIn, Twitter, Facebook, e-mail, and more, Wiley, Hoboken, N.J. Business case studies: Using supplier relationships to serve customers better 2013, Web. It did not represent the modern womans taste for a more casual look. Coles and Woolworths are too leading supermarket giants in Australia. The first priority is UK business. 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. Customer Assistant (Customer Interaction), To join M&S workforce, company offers the. M&S has been acknowledged as a legendary UK retailing organization and therefore they are exemplars of best practice in society. 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. . Tesco has come a long way since then and is now one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people. Political, Social, Technological factors are favorable, while Environmental factors are neutral and Economic and Legal factors are slightly unfavorable Superior organizational strategy are generated by the top level management whereas the middle level management and lower level management of the company implements objectives and strategies to accomplish the complete strategy gradually. Strategic position: Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. It also uses it to update customers on new products and services. IvyPanda. Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. Leat, M 2012, Exploring employee relations, Routledge, London. The price sensitivity of the customer has produced more competitive environment. Apparel- Jackets, coats, trousers, t-shirts, tops, beachwear, swimwear, workwear, suits, sportswear, skirts, shorts, blouses, shirts, leggings, joggers, cardigans, jumpers, jeans and dresses Coles service has more than 18 million transactions each week. *You can also browse our support articles here >. Especially in the home furniture department, well trained staff is required. In 1985, Harvard Business School Professor Michael Porter published his new book The Competitive Advantage which focuses the organisation internal environment. Discount competitors of Marks and Spencer. Noticeably, M&S is competing in the tough market of home-use products, and also in the food selling in comparison to others food companies, where they are selling products from freshly produced groceries items and meals both partly and ready meal. Innovation in Marks & Spencer is also synonymous with creativity and communication and people across levels are encouraged to think out of the box and suggest ideas wherever they feel necessary, This free spirit of innovation is the company's biggest strength. Marks & Spencer is set to open 20 new stores, creating 3,400 jobs, as part of a 480million investment to overhaul its estate. In 2021, we reset our Plan A mission to become a net zero business across our entire value chain by 2040. The last three years have been useful for the Organization because it has developed a strong foundation for the growth of its business. It is true to say that under globalization, firm will have to meet competitive environment which for some company, it is hard for them to survive, but like what we always know: "competing makes developing" so they . 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