As a business thats been around since 1884, we know how important it is to look to the future. It also has to do with the choice of colors for the products and how the products are packaged. Doing the right thing is in our nature and as a company, embedded in our values. The net income of the competitors decreases because of the COVID-19. It has also taken initiatives to strengthen its foundation and improve customer satisfaction. It is the multinational retailer that operates various retail stores. This gives the organization a picture of what strengths to exploit and develop further, and what weaknesses should be corrected to reduce market liability (Hill and Jones 2012). Dahlen, M & Lange, F 2008, Marketing communications, John Wiley, Hoboken, N.J. Ferrell, O.C & Hartline, M 2010, Marketing strategy, Cengage Learning, Farmington. M&S targeting the customers of middle to upper class. Marks and Spencer acknowledges the fact that consumer is the real king of market. -Particularly useful in early stage of strategy development, when date is analyzed M&S trades in clothing, ready meals, bakery, and households. The motivating factors of the customers in these segments include differentiation and positioning. Marks & Spencer Company's Marketing Environment. Funding it will require M&S to release development value that exists in some of its older sites across the UK. As a result, the closure of the division due to poor performance is not the best solution to deal with the problem. Kmart is retailer formed by the purchase of Coles group. As they operate in many. Results demonstrate that John Lewis PLC is performing well in both, the marketing and the financial perspectives. Specific needs of the middle-level employees: What M&S would want the employees in this segment to know is that personal, professional, and career growth are based on the commitment to the set goals and objectives. M&S is making investment in customer services and assistance section. 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. The second most important thing is price control. He expressed M&S will begin by focusing on the core UK business. 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. "Marks & Spencer Company's Marketing Environment." HelpMe.com: Marks & Spencer strategic analysis 2015, Web. M&S is very sensitive to technological, social and economic factors. M&S is in a unique position to unlock this value, as it owns around 40% of its estate - including its Marble Arch site. BCG matrix is the matrix which determines the level industry relative share of the industry and the business with the help of four dimensions. Sainsbury's was set up in 1869 and since then, it has changed into the second most vital store chain in the UK, it works in more than 1200 general stores and solace stores where it uses more than 161,000 partners to facilitate the deliverance of the goods and services of the supermarket. External Forces Marks and Spencer has many external forces that affect the company. To compete based on cost, the company must address labour, materials, overheads, and other costs, and to design a system that lowers the cost per unit of the product or service. In other words, it should avoid operating at the extremes and embrace modesty. 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. Despite this fact, the market environment has remained relatively stable, meaning there have not been major changes. Weakness of Marks & Spencer - Internal Strategic Factors . The company should improve its presence in countries like India, China, Brazil, and South Africa. Abroad, it sells goods and services in more than 320 stores in over 40 countries. 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 . MARKS AND SPENCER GROUP PLC QUARTER 2 2010/11 TRADING STATEMENT [Online], The company that our group has chosen to analyse is Tesco. Study for free with our range of university lectures! M&S needs to focus on the top end of the clothing market but deliver stylish cloths, beautifully made with fantastic value. Ill evaluate each of the three core process and how they impacted J. C. Penneys strategy. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. M&S is a listed company under the London Stock Exchange. Through e-mail, the Organization has been able to increase its audience on social media. 1. Responsible Sourcing & Human Rights in Foods, Responsible Sourcing & Human Rights in Clothing & Home, Sustainability Report 2022 - Resetting Plan A to Deliver a Net Zero M&S, Results, Reports, Webcasts & Presentations, M&S Teams Up With Agrisound To Boost Pollinator Activity On British Farms. This is the age of fashion and modernisation. Travel around the world and meet our suppliers in our interactive map. However, this report shall have a focus of the food sector in the United Kingdom., Introduction: Below I have written about how Sainsburys met their sales targets. 0 1 0. M&S also enjoys a friendly social environment in all the countries where it operates. professional specifically for you? Primark has captured a big market in United Kingdom. Coles service has more than 18 million transactions each week. Your privacy is extremely important to us. Lunden, I 2012, Amazon offers amazon pages for brands to customize with their own urls, and amazon posts for social media marketing, Web. Discuss this statement with reference to the performance of the UK retailer Marks & Spencer over the last 10 years. Key Findings External Environment ? 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. The employee market sector has various segments. The Organization uses its Twitter account to advertise and market its business. But it can help in making appropriate business decisions as management will be aware of all the advantages as well as difficulties that lies in incorporating specific changes. How they are opening even more stores within different areas and how their profit is rising., businesses. The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014, Web. Thompson, J & Martin, F 2010, Strategic management: awareness and change, Cengage Learning, South Western. It is through the chain of command that authority and power to make decisions are entrenched (Sims 2007). 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. In today's business . Competition 2015, Web. Its main competitors include NEXT PLC, GAP, and H&M. The last three years have been useful for the Organization because it has developed a strong foundation for the growth of its business. And its UK success has been built on low prices, cultivating customer loyalty, unbeatable quality, offering a range of different store concepts and expanding into retailing services (Tesco Plc annual review, 2005). 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. The assessment and evaluation of cost data in the aspects of launching new product by Marks and Spencer is about gaining insights and learning ways for achieving the goals of organisation in most effective manner. Third year should be for the growth, they have to expand the business in every field. Through differentiation and positioning, the Organization plans to become a global leader in the retail industry. The company has 979 stores around the United Kingdom plus 454 stores on the international field. M&S needs to return its clothing sub-brands into real brand. M&S attracts its customers by promoting its products on every occasion and event by hanging promotional offers posters, sign boards and confetti. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Marks and Spencer is a general retailer that sells clothes, gifts, home furnishings and foods. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. 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. . Media has played a big role in communicating new Fashion and price comparison to the customer. In food industry Tesco, Iceland are the main competitors of M&S. RECENT STRATEGIC DEVELOPMENT HISTORY 2.1 Background Marks and Spencer, commonly referred to as M&S was founded by Michael Marks who opened a penny bazaar at Leeds market stall in 1884. Examples are Aldi, Lidl, Ryan Air etc As a result, it becomes easy and convenient for the Organization to reach many customers with comprehensive information about their products and services (Harman 2014). 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. As a result, companies need to keep on marketing their products on Amazon.com for the products to be properly known by customers (Lunden 2012). At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position. Developing a vision, mission and values is the foundation for the log term success, as demonstrated by Collins & Porras in Built to Last. 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 initiative has been restructured to reflect the Organizations new four pillars namely below: This initiative is highly valuable to consumers. They prefer to import their products from abroad for cost savings, this fact puts M&S in a cost disadvantage for a perceived "higher quality". We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. We listen to our customers, colleagues, and local stakeholders to make sure we understand their changing needs and support the communities we serve. The bureaucratic structure is based on the bureaucratic theory of management. In this book, along with an in depth analysis of the competitive strategies which are Cost leadership, differentiation and Focus, he also concentrates on the firms value chain. The Organization also enjoys the goodwill of the host governments, which has enabled it to invest heavily without the fears associated with political risks (Slideshare.net: Marks & Spencer strategic analysis 2015). 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. We utilize security vendors that protect and "Marks & Spencer Company's Marketing Environment." Retrieved from https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. (Murray, 2013) . These forces and factors are very vital for M&S survival and growth in the competitive market. 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. This feature enables the company to store videos and pictures of various products. Its main strategy is to sell goods and services of high quality at affordable prices. According to the Chief Executive, Mr. Marc Bolland, the Organizations focus over the last 3 years has been to strengthen its foundation by investing in areas that improve customer satisfaction. They should also internalize the Organizations core values and embrace them at all times. In this case, Nordstrom uses these types of tool in developing their strategic plans which are the BCG matrix and SOAR analysis. M&S entered the market in the late 1880s with a 'no frills' strategy (Johnson G & Scholes K. 2002. pp320-323). It also looks at a critical analysis and evaluation of the main future directions for strategic growth of the firm. Just like other multinational corporations, M&S was not exempt from the effects of the recession (Slideshare.net: Marks & Spencer strategic analysis 2015). Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 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. 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. Increase in number of food stores is required with British and world flavours. M&S targets various segments of customers such as the youth, low-income earners, high-income earners, and the elderly. Newstatesman.com: Marks & Spencer: great food, bad clothes 2013, Web. Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. We employ around 65,000 colleagues across our stores, support centres, logistics operations and international teams. Lowering costs lead to lowering prices, which can increase demand for products or services, but if the product or services cannot be produced at a lower cost it also reduces profit margins. M&S is also famous for high quality and great value for mens garments with unique classic styles. Generic Strategy Porter (1980) describes generic competitive strategies to sustain competitive advantage (1) cost leadership, (2) differentiation, (3) Focus Cost Leadership, (4) Focus Cost leadership. Boosting personalized selling (Thompson & Martin 2005). Political decisions and circumstances are very important for the M&S. Environmental analysis To make the analysis of external environment of Marks and Spencer, this report will cover two key model that are PESTLE and Porter's five forces. Do you have a 2:1 degree or higher? New-look Foodhall at M&S Chesterfield. This initiative was aimed at helping the Organization attain sustainable customer satisfaction (Smith & Cockburn 2013). 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. M&S in a western world is a managerial giant (Drucker, 1974). 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. The core strategy of M&S is quality, value, better service, innovation and trust. Marks and spencer is a public limited company because they sell shares to the public. 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. Most of them are pensioners and upper class people would like to pay a lot for their clothes and food. One prime issue as a result of globalisation is that there are more and more retailers sourcing globally aiming to provide competitive prices and quality products in the market. There were many reports that M&S no longer understood the customers' needs and had misread its target market. Marks & Spencer is set to open 20 new stores, creating 3,400 jobs, as part of a 480million investment to overhaul its estate. Within this intense competition of retail industry, Tesco can stand at market-leading position in recent years has mainly come from its strategies of expanding overseas, shifting to 'higher margin' non-food market and maintaining a strong core UK business (Corporate Watch UK, 2004). A new partnership with Ocado has cost 750m, but will at . Today, the economic environment -- in UK especially, but also globe wide -- raises the threats of higher credit costs (Floud and Johnson, 2004). Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. 3. Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. When customers are made to understand the unique characteristics of different products and services, they are able to make informed decisions regarding different products and services. Here is the Pestle Analysis of Marks and Spencer. After analysing M&S business environment we come know that M&S should have to make some changes in its operations and research and development department. The paper also through light on critique of created IT plan for Kmart and comparison with another plan. Giant Hypermarket also popularly known as Giant is a subsidiary of Dairy Farm International. That's why in 2007 we launched Plan A, our industry-leading sustainability programme. In other words, the Organization uses Twitter for acquiring and retaining customers (Jones & Silverstein 2009). Employees are selected not on the basis of friendship, but on merit and qualification. 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. An introduction, Pearson Education Company, Prentice-Hall. The reason is that there are many products that resemble each other and therefore, it is easy for customers to shift loyalty from one product to another. The organization also engages in charity work and other corporate social responsibility activities, thus creating a very conducive social environment for its operations. The reason is that they enable Organizations to achieve their objectives. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. The reason is that over 85% of people who have an e-mail account are also on social media. It can be said that by means of organisations competitive strategy, it can achieve an upper hand in the business market over its rivals. Consequently, their perception of M&Ss brands has been strengthened. 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. Pearson & Saunders 2013, Strategic management of information systems, John Wiley & Sons, Hoboken. The other reason is that M&S derives most of its profits from selling expensive clothes, especially to middle-aged men and women with high-income. You are free to use it for research and reference purposes in order to write your own paper; however, you It depicts that for Marks and Spencer the proposed business strategies in reference to new product development must be scaled. The penny bazaars were a huge success . Keeping in mind PESTEL analysis and competitors, it is being summarized that M&S has to make the strategies taking into considers its weakness. It is a chain of discount departmental stores around, Company Q is having few grocery stores in a metropolitan city. 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. As a business thats been around since 1884, we know how important it is to look to the future. M&S is the first company in UK that introduced self customer service. 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. 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. (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. However, that does not mean that it has neglected the other segments such as low-income earners. External environment in which M&S operates can be identified through PESTEL analysis that shows what is exactly happening outside the organization. Out of all the stores, two stores were not making any profits, so Company Q has recently closed those two stores. Been restructured to reflect the Organizations new four pillars namely below: this is an example of a written... 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