Marks and Spencer - PEST and Information Systems case study
Marks and Spencer
Company Background and Mission Statement.
Marks and spencer was mainly founded by Michael Marks and Paul Myners in the year 1884 as a market stall in Leeds.. Later it became a partnership in 1894 when Spencer joined them in the business. They started as a clothing retailer and later they diversified their business into other categories such as food, finance, etc. Today it’s one of the biggest British retailers which has its presence in more than 30 countries with 379 stores worldwide selling its own line of clothing, food, and household items. The company’s mission statement is “Making aspirational quality accessible to all”. It is one of the shortest mission statement yet one of the powerful mission statement a company could ever have. It emphasises mainly on quality, making clear to everybody that quality is most important priority of the company. Environmental Analysis
Let us now do an analysis of the environmental factors that affects the company in terms of Political factors Technological factors
The political factors that can affect Marks and Spencer in political and legal side are: industrial, employment and consumer law, taxation, policies, government stability, competition policy, war in their trade country and foreign trade regulations. If any of these factors change then it would affect the company. In order to face these problems two types of guidances are required, policy guidance and competition guidance. Economical
The economical factors that could affect the business of marks and spencer are inflation, unemployment, income, interest rate, economic growth, exchange rate and price of factors of production. These factors are to be considered and taken care of while they are operating for their business. However relative recession and proof industry can be adopted to face the above mention factors. Social
There are many social factors could affect M&S, some of the major things are: Level of education, lifestyle, mobility of population and income distribution,.. Marks and Spencer is a well positioned and a competitive player in its market segment.Goods progress has been made in setting up an online shopping facility. It should continue this path, but also to be care about their elderly customer base. It sells organics and healthy eating food to its customers. Eating out and take away is available. Besides being environmental conscious, it is also expanding its operations. Technological
Technology have been rapidly changing, bringing in revolutionary ways of shooping and security.Marks and Spencer has to move along with the new technology in order to grow their business, make their business more secure, and compete with the competitors. The following factors should be considered to keep in pace with the upcoming technological changes: Technological transfer, technology development and rate of obsolescence. Internet technology has advanced and spread further, more people use and trust online shopping. This store is making use of latest technology to offer good and cost efficient service. Legal
Whenever there are any changes in legal environment or in law it affects an organization in many ways. For instance, if there is a tightening of health and safety legislation and regulations it will increase costs, premises failing to meet the higher standards may be closed down etc. Sometimes, an imposition of complete ban on a particular product can adversely affect the organization’s profitability. Marks & Spencer knows that it is responsible not just for what it actually owns, but also for the total footprint of its business through the manufacture, use and disposal of its products. This has required it to work in partnership with its stakeholders to define new limits for business behavior. SWOT Analysis
Marks and Spencer is the British multinational retail company that specializes on producing clothing and high-quality food. Being the dominant force on the UK market Marks and Spencer owns 600 stores in the home country and over 225 stores worldwide. Bird (1986) claims Marks and Spencer to be the most powerful image of Great Britain; the company currently being the most profitable UK organization also is one of the most innovative in the world. Two main features of the Marks and Spencer are centralization and simplicity. The firm tends to use centralized organizational structure and tries to keep everything simple avoiding the complexity in any aspect of systematic applications (Howells, 1981).
Marks and Spencer has been known for its highest standards of fair-trading, which include acquiring strong contacts with current suppliers, producing and proposing high-quality food, being friendly to the staff and having a flexible exchange policy for existing customers (Grayson, 2011). Having a stable and positive reputation is inevitable for the big worldwide brands. The company being initially only focused on producing garments lately diversified its market to the other sectors, such as food, electronics and furniture (Hamil, Crosbie, 1990). Diversification guaranteed bigger amount of customers for the company and expanded...
...Marks and Spencer Ltd
Company Overview + Status
* M&S had grown to be the largest and most profitable retail organization in the UK.
* products: selective range of textiles, housewares, footwear, and food items aimed at rapid turn-over under private St. Michael label.
* Textile: women/men/children’s clothing; 48% of sales; 55% of profits
* Food: produce, meat, prepared foods, French wines; 40% of sales; 55% of profits
* Others: floor coverings, footwear, etc… 12% of sales and profits
* value proposition: very high quality at moderate, rather than low, prices; ie: good value
* Stores (1988): UK=289, EU=11, Canada=267, US=4 small stores, extensions of Canada
* Management: buying, merchandising, distribution, finance for UK centralized in London
* EU + NA operations autonomous with guidance from UK
* UK doing very well (11% profit); EU OK but stagnant; Can + ROW: not so good (2%?)
Philosophy + History
* 1884: Founder - Michael Marks philosophy: ‘Don’t ask the price – It’s one penny’
* Streamlined accounting to focus more on search for high-quality products
* High-turn over counterbalanced low profit margins
* 1903: took Thomas Spencer into partnership and M&S was born
* 1914-1955: son builds on founding father’s strategy
* emphasis on new technologies, social service to customers & employees
* influenced by...
1.1 Company overview
Marks and Spencer, also known as M&S, is a major British retailer. It currently specializes in selling of apparel and luxury food items. M&S was founded in 1884 by Michael Marks and Spencer Leeds. The establishment started out as market stalls throughout England. In the beginning, M&S built its reputation on the policy of only selling British made merchandise and using British suppliers and M&S’s emphasis became on quality and getting value for your money. M&S established its label, St. Michael and by the 1950’s, nearly all goods were sold under the St. Michael’s brand. Women’s and girl’s apparel were branded and sold under the label St. Margaret. In the 1970’s, M&S makes strategic plans toward international expansion. In the 1990’s M&S held position as UK’s most successful, well known and profitable companies.
M&S took a sudden and unexpected turn for the worse and its profit share fell down to as much as 2/3. This fall would take several years to recover from and required a change in strategic management. In an attempt to obtain a cutting edge, M&S created a new department dedicated to new opportunities such as the food sector and the financial services sector. By 2002, the company changed its strategy of using primarily British suppliers and began outsourcing overseas. Due to uncertain competition in the market, the key focus on strategy became obsolete and caused...
...A Case Study on Marks and Spencer
by stoked, Jul 24, 2008
A case study on Marks and Spencer which includes: The company at present, Background of the Study, Case Background, Problem, SWOT Analysis, Alternative Courses of Action, Recommendation, Conclusion.
A Case Study on Marks and Spencer
The Company at Present
Marks and Spencer has over 450 stores located throughout the UK, this includes the largest store at Marble Arch, London.
In addition, the Company has 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries.
Background of the Company
* Marks and Spencer (M&S) of Britain (often referred to as Marks & Sparks by locals) is a general retailer that sells clothes, gifts, home furnishings, and foods under the St. Michael trademark in the UK, Europe, the Americas and Far East.
* The company also operates financial services segment, which accounted for about 3% of the company's 1998 profits (Dow Jones Industrial 1999)
* Marks & Spencer started as a stall in 1884 by Michael Marks in the Leads market using an L5 loan from a wholesaler
* Its philosophy is to sell durable merchandise at a moderate price. It has merchandise made to its specifications.
* By 1901, the company acquired 35 Outlets as well as a new...
...The level of retention of staff can vary from different sectors, from
research I found that many companies had internal issues that caused
staff turnover. So from that I was interested to see if this affected
company that I work for, Marks and Spencer. So as we know Marks and
is one the most well known retailers in the uk with over 450 stores and
turn employees over 65000 people. But over the last few years it has
more compaction in the retail sector, so with that a new strategy had
developed to meet their customers need and expectations and to keep
ahead, so Marks and Spencer developed the promotional campaign based on
new slogan “Your M&S” which helped the customers connect with business.
with this did Marks and Spencer let their staff in the process, from my
reseach I would have to agree that Marks and Spencer have let there
down because they have staff turnover. So from my research I wanted to
investigate why marks and Spencer had a high staff turnover like what
the main reason why their staffs were leaving and what they could do if
anything to try and reduce it. So from my research I wanted to
and understand why marks and Spencer has a high staff turn over and in
...Marks and Spencer Report
The retail industry is a very dynamic and fast changing sector as it is constantly trying to appeal to customers and compete with competition. It is regarded as highly commercial; driven by sales and profit. It is vital to monitor performance; the strengths and weaknesses as well as what the competitors are getting up to. Moreover, with constant changes of demand; customers expect new innovative products and services. Therefore, it becomes the company’s responsibility to develop it. Marketing is a key aspect to promoting any company and supplying the innovations to the public. I will be analysing Marks and Spencer (M&S) in order to show how they tackle these four areas.
Marks and Spencer has become one of the UK’s leading retailers with around 21 million customers visiting their store each week! It is renowned for its high quality and great value products including clothing and food. (Annual Report 2011)
To start off with, I will look at the revenue figures for the past 5 years to give a clearer idea of the progress M&S are having. From the bar chart on the left, it is apparent to see that there revenue has been increasing. 2008-2009; the period of recession saw a little increase in revenue. But revenue are at a peak this year with roughly 9750 million revenue.
Sale growth has also shown an upward trend as shown on the graph (right). It...
...The World Business Council for Sustainable Development defines CSR as ‘the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.’
Marks and Spencer are the UK’s leading retailer of quality clothing, food and home products with over 21 million UK customers. They have a team of 78,000 employees and over 2,000 suppliers. In January 2007 Marks and Spencer launched ‘Plan A’ (because there is no Plan B). Plan A is their five year, 100 point eco plan to combat climate change, reduce waste, safeguard natural resources, trade ethically and build a healthier nation. Plan A is based on five pillars. These pillars represent five key areas where they believe they can make their business more sustainable and kinder to the environment. The five key pillars are: Climate change, Waste, Sustainable raw materials, Fair Partner and Health. Each pillar has a primary end target these being: to become carbon neutral, send no waste to landfill, extend sustainable sourcing, help improve the lives of people in their supply chain, help customers and employees live a healthier life style. A brief overview of these pillars can be found in Appendix A. Plan A has been incorporated into the day to day working routine and become integral at every level.
...on Marks & Spencer
Student ID No. 08498890
1st December 2008
Page 1 – Cover
Page 2 – Contents
Page 3 – Introduction
Page 4 – Political Factors
Page 4 – Economical factors
Page 4 – Sociological Factors
Page 5 – Technological Factors
Page 5 – Legal Factors
Page 5 – Environmental Factors
Page 6 – Conclusion
Marks & Spencer is a British retailer with over 800 stores in more than 30 countries around the world. It is the largest clothing retailer in the UK, aswell as being a food retailer. Most of it’s domestic stores sell both clothing & food, and since the year 2000 Marks & Spencer have started to expand into other ranges such as homewares, furniture & technology.
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.
There are plenty of observers who will claim that Marks & Spencer is dying, and I'm inclined to agree. I'm not suggesting that the retail monolith is going bust, or is about to be bought by Wal-Mart and rolled into one brand with Asda. It's just that the old M&S is dying and a new Marks &...