There were many reports that M&S no longer understood the customers' needs and had misread its target market. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. M&S trades in clothing, ready meals, bakery, and households. (2021, April 26). 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. Marks & Spencer Resources, Capabilities & Competitive Advantage Compiled for Paull Robathan. The drop in sales in the clothing division has been taken by the management of M&S as an incentive for it to strengthen the marketing of the division. M&S trades in clothing, ready meals, bakery, and households. For example, low-income earners are motivated by the following: On the other hand, the high-income earners, who consider themselves as the affluent are motivated by the following factors: The youth are motivated by the following factors: Currently, M&Ss focus is on women with high-income. However, its main target is women who earn a high income. This system reduces the cost of business transactions and brings the business more close to the customers. BCG matrix is the matrix which determines the level industry relative share of the industry and the business with the help of four dimensions. Due to its huge popularity, Amazon.com is capable of building brands for different products from different companies (Lunden 2012). Once they follow, they are able to access the Organizations business information. M&S is growing in menswear and kids wear market rapidly. Stuart Machin, Chief Executive of M&S commented: "Stores are a core part of M&S's omni-channel future and serve as a competitive advantage for how customers want to shop today. It has a diversified product portfolio that includes. The reason is that many people use their e-mail addresses to register with Twitter and Facebook. 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. Consumer concept in the market place has been changed. Mission And Goals Of Marks And Spencer Commerce Essay. This is IvyPanda's free database of academic paper samples. Third year should be for the growth, they have to expand the business in every field. For the customers it means that clothing products will improve core M&S ranges, so that the unique quality, style and fashion of the M&S brand stands out. M&Ss communication strategies interface with the prospective consumer in the following ways: M&Ss communication strategies interface with the actual customers in the following ways: The following are the communication strands used by M&S: M&S has incorporated technology in its business and as a result; it has been able to boost its revenues by 40% in the past decade. But we cant do it alone; were collaborating with industry experts and inviting all our customers and colleagues to help us. Debenhams has been selected closest competitor of M&S because they have a comparable product base. Proposals include eight full-line stores in shopping centres, such . Methods of analysis include examining the following: the companys marketing strategy, the percentage of its market share in comparison to 6 competitors, its position in the market over 5 consecutive years, its marketing goals and predictions for the future, its survival during 2008-2009 recession, companys turnover over 4 consecutive years, the percentage of its turnover in terms of 6 competitors, expectations of the future of UK economy, and the firms predicted turnover for 2012 and 2013. Ten years later he was joined by Tom Spencer, and the partnership grew into the company known today as Marks & Spencer (Marks In Time n.d.). Its main competitors include NEXT PLC, GAP, and H&M. For instance, Facebook has a feature for customizing audience using e-mail. In food, M&S needs to build a clear position as a specialist of food retailer. 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). The reason is that it has established a good rapport with all its suppliers, who supply it with products at cheap prices (Business case studies: Using supplier relationships to serve customers better 2013). This assessment on Marks & Spencer Companys Marketing Environment was written and submitted by your fellow This includes having an organisational culture which promotes diversity, inclusivity, personal development and respect. 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. According to the scientific theory of management, employees are remunerated according to their positions and qualifications, meaning that those at the top of the hierarchy get higher remuneration than those at the bottom (Taylor 2008). Reinventing strategic management: New theory and practice for competence-based competition. The reason is that those women have expressed a lot of interest in womens outfits which are currently sweeping across the UK and in other markets. 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. M&S has to change its behaviour of slow response to consumers changing needs and preferences. The VRIO Framework or VRIO Model is part of the Resource-Based View (RBV), which is a perspective that examines the link between a company's internal characteristics and its performance. Public spending cut is another political decision that is a big hurdle in the business growth too. 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. It has also differentiated its products and services to suit the specific needs of customers in different segments. A new partnership with Ocado has cost 750m, but will at . Foremost companies must allocate funds for research and development, the conventional way is the percent of sales technique. Company Overview The Organization, therefore, needs come up with strategies which would boost customers confidence in its clothe-ware. 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. In an effort to increase audiences for various advertisements, Twitter has a tailored audience feature that enables those with email addresses to get updates from Twitter via their e-mail addresses. M&S is selling product and making sure how these products are being used and disposed by consumer. This feature enables the company to store videos and pictures of various products. In November 2010 Marc Boland new chief Executive announced the next five years plans. As they operate in many segments like food cloths and home and beauty products they have to deal with a lot of competitors. The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. Marks and Spencer follow each and every primary business ethics of the business environment. Consequently, their perception of M&Ss brands has been strengthened. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. 3. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Jones, S.K & Silverstein, B 2009, Business-to-business internet marketing: seven proven strategies for increasing profits through Internet direct marketing, Maximum Press, Gulf Breeze, FL. The employee segments named above have specific needs and concerns as shown below: What M&S would want employees in this segment to know is that they need to humble themselves and work hard. If done well, differentiation enables customers to purchase specific products or services in a market flooded with many varieties of products and services (Thompson & Martin 2010). 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. M&S entered the market in the late 1880s with a 'no frills' strategy (Johnson G & Scholes K. 2002. pp320-323). New M&S home stores should open to capture more furniture market. 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. It can be said that by means of organisations competitive strategy, it can achieve an upper hand in the business market over its rivals. Responsible sourcing and human rights are fundamental in allowing individuals to lead a dignified and independent life, free from abuse and violation. In clothing each business has to modernise the clothes according to the latest fashion. Need more investment in new technologies. M&S is lacking the ability to understand the changes in social trends. The company has 979 stores around the United Kingdom plus 454 stores on the international field. Marks and Spencer believes in eco-friendly goods and fair-trade products and hence has worked wholeheartedly towards achieving it. M&S trades in clothing, ready meals, bakery, and households. 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. (2021, April 26). Due to these circumstances, some recommendations for John Lewis are to take all or most of taxes on itself and be aware of new entrants. As a result, it is not easy to micromanage the work of the suppliers for them to manufacture customized products. However, the management of the company is predominantly male, and so, a balance of male and female management would help meet the needs of its customers and product consumers. The physical aspect of brand image has to do with how products appear. This statement is based on the Organizations business model. 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). New technology can also be used to identify the new fashion in and trend change in different parts of the world. 1997 - European Management Journal. M&S targeting the customers of middle to upper class. Changing store environment, design, fashion, food and change in lay out can attract more customers. There are six of these forces, Political, Economic, Sociological, Technological, Legal and Environmental factors. In 2021, we reset our Plan A mission to become a net zero business across our entire value chain by 2040. The aim of this report Is to identify the key factors that allowed M&S to outperform its competitors up to the mold asses. As external environment is one of the most important factors for businesses, it cannot be ignored. To serve such a high number of valued customers visiting 600 stores in the UK the company employs more than 75,000 staff worldwide (Company Overview | MarksandSpencer.com) . 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. M&S relies on differentiation and positioning to attract and retain its customers. This process is started while idea generation and financial planning as well as continue to the process of implementation. 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. The new government has increased the VAT from 17.5% to 20% that has cause the fall in sale in M&S business. The UK clothing retail industry has experienced significant growth, which has focused attention on studies in the field with this sector being considered as the one of the most competitive markets in Europe. Under the 480m investment plan M&S is to open 12 new food halls in communities including Stockport, Barnsley and the seaside town of Largs in North Ayrshire, Scotland. The company has good relationship with employees. In terms, if age, the customers are segmented as follows: Among all these segments, those that are most attractive to M&S include the following: The reason is that the M&S brand is perceived as expensive by its customers. If business is running in loss then it is better to close that business. ' Evidence to support this quote comes in the form of Marks and Spencer . One of the interesting features of google+ is YouTube. Annual review and summary. In the world Coles and Woolworths ranked 19th and 15th among the selling retailers (Knox, 2014). And the second target of M&S is the well paid job holders. April 26, 2021. https://ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. M&S: 2015 A year in preview for sustainable business 2015, Web. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. M&S also enjoys a friendly social environment in all the countries where it operates. We will write a custom Assessment on Marks & Spencer Companys Marketing Environment specifically for you for only $16.05 $11/page. The company should improve its presence in countries like India, China, Brazil, and South Africa. How they are opening even more stores within different areas and how their profit is rising., businesses. How Sainsburys have capitalized on their sales. Marks and spencer is operating in a very competitive environment and there are many factors that affect the company in the outside environment. These products actually attract the customers and helpful in gaining competitive advantage. Although M&S has very good quality of the clothes but on the other hand their clothes are very expensive and old fashioned. Specifically, in Q4 2018's revenue was $3.9B. In terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. Marks & Spencer launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. professional specifically for you? At M&S, we know there is no Plan B when it comes to our planet. Even though most of the customers are motivated by positioning and differentiation, there are other specific factors that motivate them. In this case, Nordstrom uses these types of tool in developing their strategic plans which are the BCG matrix and SOAR analysis. (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. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. For the assessment of business strategic feasibility company before new product development should en sure whether they have enough technological and human resources to manage business functions effectively or not. The company is employing approximately 80000 people in 2020. M&S: From transformation to delivery 2014, Web. For example, the food industry outperformed all other retailers in the UK. The Organization uses its Twitter account to advertise and market its business. Written by Md. RBV is therefore complementary to the Industrial Organization (I/O) perspectives that look more at . M&S uses the google+ feature to market its products and services. IvyPanda. As a result, the closure of the division due to poor performance is not the best solution to deal with the problem. 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). M&S has to control the prices of their products to compete in the market. At M&S you can shop around many things for your daily life use and life-style i.e. Women. Competitive Advantage offers a beneficial position to business organisations over rivals in regards of some measure like expense, quality, or velocity. 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. 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. McDonalds is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. Marks & Spencer, purveyor of 10% of the nation's clothing and specialist in foodie treats, is hurting. As a result, it is important for Organizations to ensure that they have elaborate communication strategies to reach their customers effectively. If you need assistance with writing your essay, our professional essay writing service is here to help! 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. This has yet to be addressed by academics, especially in relation to the notable growth in environmental concern at this time. Cost Leadership: In cost leadership, an organisation aims to become the low cost provider in its industry. Marks and Spencer acknowledges the fact that consumer is the real king of market. The net income of the competitors decreases because of the COVID-19. 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. Also, the forecast for the British economy does not always remain constant, leaving the future unknown., Talk of a consumer downturn has resonated about the City and government in recent weeks. Armstrong, G & Kotler, P 2009, Marketing. The positioning statement is, however suitable for the following market segments: In 2007, M&S launched an initiative known as Plan A. The motivating factors of the customers in these segments include differentiation and positioning. In 2008, the world underwent a global recession, which was the biggest since the great depression of the 1930s. M&S needs to show its innovation and create the fashion style in clothing. The company's stores and outlets are strategically located across London. 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. Following is highlighted some factors of M&A's external environment and how they effect Marks & Spencer in executing its strategies: (P)OLITICAL Marks & Spencer's An analysis on HRM 2. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. 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. First year to refocus on the business by changing its corporate culture to be customer oriented. M&S has to make plans for future recession and how to cope with recession if it happens again. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The reason is that some of its targeted customers, like the high-income earners with high social status require customized products and services. The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014, Web. Human resource cannot be imitated and helpful to firms value. Abroad, it sells goods and services in more than 320 stores in over 40 countries. We think M&S should work on three years plan to regain the dominance of the market. The Organization has adopted technology in most of its operations and service delivery. Taylor, F.D 2008, The principles of scientific management, Digireads.com Publishing, Philadelphia, PA. External analysis tools such as Porters five forces gives a view of the immediate competitive environment to reveal market opportunities and threats. An in-depth SWOT analysis that assesses both the internal (strengths and weaknesses) and external (opportunities and threats) environment of the company is given. The Institute for Retail Studies's research (2003) reports that retail industry in the UK is quite competitive, dynamic, and innovative in recent years. 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. The core strategy of M&S is quality, value, better service, innovation and trust. The strategy has also enabled the Organization to constantly update its customers and stakeholders on its undertakings. Strategic business plans are set by considering the growth rate of the industry and current situation of the business. Political decisions and circumstances are very important for the M&S. Marks & Spencer's main products and services are clothes, food and edible items, and home products. The whole idea behind differentiation is to create a market niche for that particular product or service. Political, Social, Technological factors are favorable, while Environmental factors are neutral and Economic and Legal factors are slightly unfavorable As a result, it has been able to open many stores in the UK and in other countries. They always take in to account of the legal issues of the business like customer and staff safety, selling alcohol and tobacco to young people. M&S is very sensitive to technological, social and economic factors. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. The external environment of Marks & Spencer is comprised of all the elements that determine what the it needs to compete in its respective industry. 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. 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. VRIO: From Firm Resources to Competitive Advantage. M&S uses email for advertisement purposes. Coles has started first supermarket in 1960 and till 1973 company achieved its primary aim of having supermarket in every Australian city. In other words, it should avoid operating at the extremes and embrace modesty. 4, no. Socio-cultural environment (Murray, 2013) . However, the retail company's top competitors are Waitrose & Partners, Next, TESCO, ASDA, Aldi UK, John Lewis Partnership, Macy's, Walmart, and Debenhams. All work is written to order. M&S in a western world is a managerial giant (Drucker, 1974). The reason is that once employees welfare is taken care of, they become motivated and dedicate themselves to the success of the Organizations. 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. M&S needs to change the technology in its stores by introducing hand held communicators PDA to track the clothes from the distribution onto the sales floor that enables to know the exact amount of inventory and ensure the right items will be delivered on next day similar to Next. In other words, the Organization uses Twitter for acquiring and retaining customers (Jones & Silverstein 2009). The main aim of marks and spencer is to maximize profit and become the worlds most sustainable major retailer by 2015. M&S should introduce new non-M&S food brands without increasing cost. For You For Only $13.90/page! Group Members Davis D Parakal ( 3357394) Ehigiator, Osamudiamen (3314607) Inu-Umoru, Zekeri (3362859) Prandzioch, Aleksandra Teresa(2896971) Abdullah M Almurabt , Sultan(3333929) ANIM, Edmond(3378827) 3. Something else which M&S would want them to know is that the Organization has a potential for growth and as a result, they should dedicate all their efforts to help the Organization grow (Gattorna 2009). M&S News See all articles Today 5:36 AM M&S believes that advertising on Amazon.com not only makes it known but also makes it appear fashionable. The reason is that the Organization always aims at treating all its customers equally.
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