Several shifts in the consumer market such as the increasing price sensitivity of customers seeking classical designs, increasing preference for fashionable items or the disloyalty of UK consumers to British products are increasingly affecting the retailer (Cunningham, 2016). With sustainability becoming an increasingly necessary and lucrative strategy, the company is ahead of its competitors in this area. than two thirds of its stock market value. Last accessed 30 Dec 2009. Considering the operations like stock management, supply management, cash management & capacity management there were many risk or challenges associated with these processes which needed to be taken care by M&S team. Back in 1998, clothing, footwear and gift sales accounted for almost two thirds of revenue, with food around one third, whereas just over two decades later these non-food and food shares of total M&S sales have completely reversed. This is what volume means, one should not run of the stock when it is in high demand. In addition, Porters Five Forces Analysis discusses the industrys competitiveness and the firms competitive positioning in the marketplace. In 2015, this strategy helped the company maintain its market share in most of its markets and achieve strong sales in key owned markets such as Hong Kong or India (Marks & Spencer, 2015). Consequently, Sales were reduced by 4.3%, with some improvement on a third-quarter decline of 7.1%. Operations and Process Management: Principles and Practices for Strategic Impact, Operations and Processes, Second Edition, pp. An effective competitive strategy is critical. On Saturday Steve Rowe takes over from Marc Bolland as chief. London: PricewaterhouseCoopers/TNS Retail Forward. Its premium position is threatened by shifting customer preferences; they might prefer to shop for a label or look for similar quality products offered at a better price elsewhere (The Marketing Society, 2010). Porters model was designed and developed by Michael Porter in the 1980s to determine the competitive intensity and attractiveness of an industry (Spencer, 2015). In the case of M&S, the five forces that influence the industry are as follows: 1. Introduction The proposed study is focused on analyzing the concept of Marks and Spencer strategic management. This website uses cookies to enhance your user experience. However, weaker consumer confidence following the Brexit vote (Reuters, 2016) is likely to affect sales growth and result in the company cutting its prices and focussing on its consumer needs. Fashion Retail 2016: The future of fashion retailing in a digital age. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. It has moved from a platform hosted by Amazon to its own web platform which was launched at the end of 2014 to provide more delivery options and streamlined multichannel services. No plagiarism, guaranteed! Strategic Business Analysis of Marks & Spencer. This growing demand of customers has made it more difficult for the retailers to survive in the market. Retrieved July 2016, from Marketing Week: http://www.marketingweek.com/2015/07/15/marks-spencer-brand-perceptions-on-the-rise-as-it-israted-one-of-the-uks-top-brands/, Whitehead, T., & Foster, P. (2015, February 22). Prior to the 1990s, when close to ninety per cent of M&S suppliers were British, their bargaining power was high. The Telegraph. At the end of 2015 the company had to temporarily shut down its website due to a security breach (Curtis, 2015) and in 2016, poorly integrated IT systems in the company are still being experienced. Plan A, the companys social, ethical and environmental business commitments, have also helped the retailer build a strong brand positioning centred on responsible sourcing, waste reduction and community care (Marks & Spencer, 2016). Monday Thursday 8.30 am 5 pm Let us try to elaborate the above 4 Vs in day to day operations of M&S. All work is written to order. According to analysts, a steeper fall is expected in the coming years (Macalister, 2015). Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Nottingham Business School (NBS) has been ranked as one of the worlds top business schools for executive education by the Financial Times. Its 180 supply chainrelated targets backed by financial incentives for its buying teams include ethical trade, energy efficiency and sustainable sourcing and are helping make M&S the worlds most sustainable retailer (Purt, 2012). London: Dentons. Marks & Spencer plc is an iconic brand which has been trading since 1884 and is still considered one of the UKs top ten brands today (Vizard, 2015). However, post the 1990s M&S experienced a rapid decline in sales and was forced to outsource globally and work with overseas suppliers who offered much more competitive pricing. They also need to change their marketing segmentations its a must that they should divide their existing target market and serve their customers in a more effective and efficient manner. having too much space dedicated to fashion. Macroeconomic factors and a weakening euro are still considered to be a challenge, especially in the Middle East (Marks & Spencer, 2016). However, the business was forced to cancel 100 millions of late summer orders after it shut non-food stores and has put 200 million of unsold seasonal stock in warehouses until Spring 2021. Retrieved July 2016, from The Guardian: https://www.theguardian.com/money/2016/jan/05/ms-raises stakes-battle-current-accounts-marks-spencer, Butler, S. (2015, May 20). There are many other problems which M&S is facing, for example, stores have cultivated the reputation of being too big and too clustered making it difficult for customers to find what theyre looking for. M&S is in a good strategic position to enjoy the benefits of an altering media landscape, the proliferation of social networks and a rising mobile wave. An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. Strategic Planning and SWOT Analysis. Potential entrants would be discouraged by the strong loyalty of M&S customers, the companys strategy of focusing on quality products and a long-established and well-developed supply chain network (Vizard, 2015). Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Despite several setbacks in its in-store service, such as an increasing number of out-of-stock items (Ruddick, 2016) and online service (Curtis, 2015) M&S is investing in customer service. (2011, July 28). To modernise, simplify and create a distinct brand across its various offerings, in 20142015 the company created a unified storytelling-based brand identity for its food and clothing markets via Only M&S while preserving Est. M&S is to become Ocado's key partner from the end of August and will offer 2,000 more food products than Waitrose, which currently works with the website. PDF Shaping the FUTURE - Marks & Spencer This would allow in other products, which would create more interest. However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors. This resulted in customers cancelling delayed orders (Butler, 2015). Major Issues Challenges Facing The Mark Spencers Marketing Essay Marks & Spencer also work closely with the franchise partner to help them gain maximum value from one of the worlds greatest brands. ntu.ac.uk/about-us/news/news-articles/2023/06/study-aims-to-tackle-stigma-of-prep-use. In recent years UKs retailing industry has been facing fierce competition to keep their profits and recent sign of improvement growing in the course of strong opposition from companies like Tesco and its core retail operation. M&S operates in a market in which innovation is paramount to keeping ones brand consistent and in line with the requirements of an ever-changing customer base (PWC, 2015). Slack, N. et al. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). The marketing strategy of M&S is to emphasise the quality and style of its products. already has 12 million shoppers on its database. The paper concludes with a value chain analysis which examines inbound logistics, operations, outbound logistics, marketing, and sales and services. How to access and leverage the best external sources of innovation, such as start-ups, scale-ups, universities, research institutes and other organisations? Last year M&S said Vangarde "aims to reduce waste and . The Marketing Society. This paper examines Marks & Spencer Plc an iconic brand and one of the UKs leading retailers. The retailing sector has a low threat of new entrants due to high capital investment costs needed to enter the market, market maturity and strong brands names which have gained customers loyalty. enquiries@ntu.ac.uk, Lines are open: M&S reports worst clothing sales fall for a decade. it still has more than 1,000 shops and employs more than 80,000 staff. London: Marks & Spencer. Available: http://www.deloitte.com/dtt/press_release/0,1014,cid%253D196099,00.html. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/business/2016/05/22/the-week-ahead-in-business-and-finance/, Curtis, S. (2015, October 28). The companys strong food business managed to deliver like-for-like growth in every quarter in the last financial year, maintaining its margins and outperforming the market by 3.5% due to its distinct and differentiated specialist strategy (Marks & Spencer, 2015). Major Issues Challenges Facing The Mark Spencers Marketing Essay (2009). In the foods department, rivals like Aldi, Lidl, and Waitrose have upped their game with more varieties of foods at cheaper rates. M&S working to improve 'outdated supply chains' In 2019, the company's total operating profit before adjustments was 726m. The timing is certainly fortuitous as many of those who had never shopped online before may have been converted during lockdown. The main values considered by the Marks and Spencer marketing strategy include services, quality, trust, and innovation. Once the biggest clothing retailer by volume, M&S has now dropped to third position after Primark and Asda (Butler, 2015). It is one of the largest British retailers that sold clothes, home furnishings, food, gifts etc. They are trendy and go along with market requirement. Yet, the prolonged financial crisis has also increased the price sensitivity of once loyal M&S customers. Systems : The franchise partner also benefits from some of the worlds most advanced systems for managing every aspect of a fast moving retail business, as well as access to Marks & Spencers leading IT support team. M&S aims to become worlds most sustainable retailer. This is an example of the high standards by which the company abides. During this report I will also cover the general strategies used by Marks and Spencer. ntu.ac.uk/about-us/news/news-articles/2023/05/the-seven-ages-of-genx-women. Available: http://www.econ.upf.edu/docs/case_studies/16.doc. We can say that it act as pillar for getting a success in a business. On revenues of just over 6 billionn, the adjusted operating profit in food came in 11.2% up at 237 million. By 2008 this had fallen to 9.7% and by 2018 it had dipped further to 7.6%. (2013, April 11). Some of their larger high street units could also be repurposed as they have several big stores in key locations in city centres which would provide a variety of redevelopment options. Available: http://www.examstutor.com/business/resources/companyprofiles/marksandspencer/strategyinsight.php Last accessed 30 Dec 2009, Peer Papers. Founded in 1884 by Michael Marks and Thomas Spencer, Marks & Spencer Group Plc is a multinational retail chain that specializes in the sale of clothing, homewares, and luxury food items. The critical element in the business development is the trust and relationship between the suppliers and Marks & Spencer. The company has traditionally invested in TV and magazine advertising as well as in-store visual merchandising. Approximately 50% of John Lewiss sales are made online compared to just 20% of M&S clothing and home sales. Marks & Spencer is to cut 950 jobs in a retail management shake-up marking the first phase of a major transformation programme. Online fashion retailer, ASOS, has been one of the companys main competitors in recent years (Davey, 2016). Marks and Spencer needs to prove itself with overhaul strategy The equivalent earnings on clothing were down 37% to 224 million on sales of 3.2 billion. Health and safety regulations, consumer rights, environmental, antitrust and other legal factors affect the company. Whether the company is well enough prepared to preserve its spot as the leading food and clothing retailer in the UK market and abroad remains to be seen. Retrieved July 2016, from The Guardian: https://www.theguardian.com/business/2016/jul/07/welcome-to-the-ms-merry-go-round. Should M&S give up on clothes and focus on food? At the post . But a return to the former dividend level seems possible. Reuters. In its food sector, the company has introduced staff zoning across food halls and is increasing the number of staff in the store on an ongoing basis. Different generations bring perceptible shifts in consumer behaviour, from the way customers do their shopping, the channels and technology they use to how products are perceived. face the facts about the state of a business. Nigel Slack, Stuart Chambers, Robert Johnston & Alan Betts. Marks and Spencer Group plcAnnual Report & Financial Statements + Notice of Annual General Meeting 2020. The strategic management empowers the organisations to endure in the competition of market. Hence it is very much important that one should have thorough knowledge about branding strategy, so that they can come with an extraordinary products. Basically Operation and Process Management is the activity of managing the resources and processes that produce products and services[4].. Marks & Spencer. Weakened consumer confidence and a decrease in the buying power of the pound have already had an impact on sales growth, whilst the decision is expected to affect the retailer in various other ways in future years.
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