According to Mr. Robert Swannell, who is the Chairman, the Organization is currently better positioned than it was three years ago. As a business thats been around since 1884, we know how important it is to look to the future. 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. The reason is that they enable Organizations to achieve their objectives. Once Facebook users like the Facebook page of the Organization, the feature directly connects Facebook to the users email accounts. For this reason, these ranges cater to different needs of the customers. The above positioning statement does not fit with all the targeted audience. M&S is also facing a high competitive environment. Due to its huge popularity, Amazon.com is capable of building brands for different products from different companies (Lunden 2012). 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. Boosting personalized selling (Thompson & Martin 2005). M&S operates in dynamic social, political, and economic environments. However, the company is vitally investing in online business marketing to boost the sales of home-use products. According to a Yougov.co.uk analysis, Marks & Spencer is the brand that British women connect with best, above competitors like John Lewis, Heinz, Boots, and BBC One. Women. Pricing strategies, for example, cant be set lower than the costs of making the products (reaching break even point). Socio-cultural environment An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. M&S operates in highly competitive environment and its competitors are more customer oriented and in tune of the customer needs and market demands. 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. The UK economy, however, does not look very optimistic, since inflation is predicted to decrease below Bank of Englands target and VAT taxes were forecasted to rise. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. M&S uses the google+ feature to market its products and services. As the students are the most valued customers due to frequent money spenders, Primark attracting them by officering cheap and fashionable clothes. PESTEL analysis gives us an idea about the external environment of M&S. Hoovers Inc: Marks & Spencer Group P.L.C. According to his assessment, the Organization has made good progress, even though it has faced some hurdles. Every organization tries to gain best position in market. 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. Primark has captured a big market in United Kingdom. M&S has to change its behaviour of slow response to consumers changing needs and preferences. Focusing on all the market segments would also enable the organization to improve customer loyalty and its brands, which would be sustainable in the long-term (The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014). In order for M&S to boost the perceived value of its products and services without changing its products and services, it needs to invest more in marketing, especially through the promotion of its products using different marketing platforms. Just like Facebook, the majority of people who are on Twitter also have email addresses. Results demonstrate that John Lewis PLC is performing well in both, the marketing and the financial perspectives. M&S faced very critical situation due to the political changes. The new government has increased the VAT from 17.5% to 20% that has cause the fall in sale in M&S business. M&S in a western world is a managerial giant (Drucker, 1974). M&S is growing in menswear and kids wear market rapidly. A Russian guy Michael Marks started M&S in 1884 after initially starting business at a small stall called Marks penny bazaar in Leeds. The company's stores and outlets are strategically located across London. We think entry of new rivals is the big factor in external environment. Following is highlighted some factors of M&A's external environment and how they effect Marks & Spencer in executing its strategies: (P)OLITICAL It also helps in adopting the new environment and response to market demands. The motivating factors of the customers in these segments include differentiation and positioning. For instance, Facebook has a feature for customizing audience using e-mail. Price has always been a big factor in the retail industry, but the last few decades have seen numerous budget retailers pop up in the United Kingdom.From budget clothing stores to budget supermarkets, these new competitors are stealing away market share from more premium brands (like Marks and Spencer), by encouraging customers to enjoy similar . Employees are selected not on the basis of friendship, but on merit and qualification. The bureaucratic structure is based on the bureaucratic theory of management. (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. External analysis tools such as Porters five forces gives a view of the immediate competitive environment to reveal market opportunities and threats. How the price war of the supermarket has affected Sainsburys and what they have changed to fight back. Introduction Tesco has expand geographically from the time early 1990s and into sections like electronics, furniture, and internet services etc. Summary. Caring about our impact on the world today and in the future is good business. Introduction of products is only possible with best marketing and advertising approaches. The approach does not encourage the mixing of friendship or family issues with Organizational business. "Marks & Spencer Company's Marketing Environment." It is preferred by many companies that want to increase their coverage and number of customers. 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. -This school emphasis on analysis and calculation can be a very strong support to the strategy development process To carry out this report we have selected a company named TESCO which is a worldwide grocery and universal products dealer founded in the year 1919. The Organization uses its Twitter account to advertise and market its business. Criteria for comparison Marks and Spencer Morrison Sales in the last five years (increment in amount) 10.300 billion 8.200 billio n Revenue of the company in last five years 481.7 million 389.8 million Presence in markets Marks and Spencer is present in various markets and it has 852 stores all over in UK. 2. Debenhams has been selected closest competitor of M&S because they have a comparable product base. M&S should operate home furniture business separate from food and clothing. M&S structured business formula is being analyse by using academic model as following:- 1. In second year they have to maintain the market shear and bring something new to business such as Indian, Chinese and Italian food. 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. 1. student. 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. Available: http://corporate.marksandspencer.com/documents/publications/2011/annual%20review%202011. This is the age of fashion and modernisation. We know its our people who make M&S successful. On the side M&S has earned reputation in meeting the customer demand. Specific needs of the management and senior management employees: What M&S would want these employees to know is that people do not only work for financial gains but also to serve the community. M&S should add one more thing to their strategy and that is modern. The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. The reason is that it makes them feel part and parcel of the Organization, which in turn increases their loyalty to the Organization. Marks and Spencer experienced a complex renegotiation of its relationship with the environment and resource use as it underwent rapid expansion and changes in the period 1968-1992. Media has played a big role in communicating new Fashion and price comparison to the customer. Through e-mail, the Organization has been able to increase its audience on social media. Furthermore, hiring young motivated staff in addition to experienced staff would increase M&S competences in terms of innovation. Every key business function has affects on marketing and physical limits on the amount that can be produced and the sorts of marketing strategies that can be implemented. Marks and Spencer (M&S) has a tough and competitive external environment. A new partnership with Ocado has cost 750m, but will at . M&S Plan A is very environment friendly. He expressed M&S will begin by focusing on the core UK business. The last three years have been useful for the Organization because it has developed a strong foundation for the growth of its business. Looking for a flexible role? In today's business . M&S can gain competitive advantage through producing different products and services from those of its competitors. In clothing market other retailers are performing aggressively with their brands to compete M&S. It is because the competitors in the market have been attempting to control the market. 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. And Marks & Spencer (M&S), despite 10 years of effort, still hasn't got anywhere near to the operating profit margin it had back in the 1990s. Of these three processes, the people process is believed to be the most critical due to the ultimate need to involve humans in each step. are all compete on price, quality, range, and service in order to strive for business success. This is the strategy for the next three years. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Marks & Spencer (M&S) : M&S is a one of the top most British Retail Organisation which is having more than 885 stores in more than 40 countries across the globe, over 600 domestic and 285 international stores [1] [2].It is the largest clothing retailer in the United Kingdom, as well as being an upmarket food retailer and as of 2009, the 43rd largest retailer in the world[3]. That is the reason why some consumers do not even care about the price offered by the Organization due to the trust they have in it (Contextsustainability.com: Report review: Marks & Spencer Plan A report 2014: Putting consumers center stage 2014). Copyright 2023 - IvyPanda is operated by, Continuing to use IvyPanda you agree to our, Marks & Spencer Companys Marketing Environment, HelpMe.com: Marks & Spencer strategic analysis, Amazon offers amazon pages for brands to customize with their own urls, and amazon posts for social media marketing, Airbus Company's Operations and Design Management, Supplier Organisation's Financial Performance, Marks & Spencer Company: Effective Specific Innovations, Marks & Spencer Company's Strategic Planning, Marks & Spencer Companys Service & Carbon Footprint, Marks & Spencer Company's Organizational Behavior Issues, Marks & Spencer Company's Carbon Management, Marks & Spencer Firm's Plan A on Carbon Emissions, How the Recent Economic Downturn Affected the Marks & Spencer Strategy, Honda Motor Company's Sustainable Management Future, Anytime Fitness vs. Jetts Firm's Business Model, Marks & Spencer Company's Strategic Analysis in 2015, India recorded the highest growth in terms of international sales, Gross margin for general merchandise decreased by 11% in the UK, The total gross margin in the UK decreased by 40% in 2013, Operating costs in the UK increased by 3.5%, Drop-in capital expenditure by 500million per annum, Significant improvement in the gross margin in general merchandise due to operational improvements which are currently underway, Significant improvement in free cash flow due to completion of the single-tier logistics network, Strength 1: The managers have the leeway to make business decisions based on the situations on the ground, Strength 2: Few centers of power in the Organizations structure, Strategy: 1 specializing in food products, clothing, home products, and other luxurious domestic products (, Strategy 2: To meet the needs of customers by providing them with high-quality products and services at affordable prices, Strategy 3: Quick procurement of business decisions, Strategy 4: Use of social media for marketing, Strategy 5: Regular review and change of business strategy, General merchandise- 41% of the UK market (, Availability of customized products and services, Availability of children-friendly services, Sensitivity to customers needs, concerns, and worries, Interactive customer care on social media, Integrated marketing communication campaigns, To make aspirational quality accessible to all, High-quality products and services at affordable prices, Taking care of the welfare of the less privileged, Doing market research to identify the gaps in sales, Understanding what the competitors are doing, which is not being done by M&S, Investing more resources in promotions and advertisements, Employing more designers at the clothing division. 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