Marks and spencers as the leading retailer

Mark and Spencer's are UK's leading vendors, with over 21 million people going to stores every week. Company offers stylish, high quality, great value clothing and home products, as well as excellent quality foods, responsibly sourced from around 2, 000 suppliers internationally. Tag and Spencer's make use of over 75, 000 people in the united kingdom and abroad, and have over 600 UK stores, plus an increasing international business. In 1998 it became the first English retailer to make a pre-tax income of over Ј1 billion. Company is posted on the London STOCK MARKET which is a constituent of the FTSE 100 Index. Company has Income Ј9, 062. 1 million (2009) Working income Ј870. 7 million (2009) Net income Ј506. 8 million (2009). Symbol and Spencer have abroad sourcing office buildings in, Hong Kong, India, Bangladesh, Turkey, Shanghai, Italy and Sri Lanka.

Company is also termed as number one supplier of women's wear and lingerie in the united kingdom, and are swiftly growing their market talk about in menswear, kids wear and home, due in part to our growing web business. Overall, our clothing and home ware sales account for 49% of our own business. The other 51% of the business is at food, where company sell from fresh products and groceries, to partly-prepared dishes and ready dishes.

In 2007 Make and Spencer has launched Plan A which contain aiming 100 commitments to achieve in 5 years. But due to changing environment and company's willpower has now lengthened Plan A to 180 commitments to attain by 2015, with considering becoming world's most lasting major retailer(Become carbon neutral, Send no waste material to landfill, Extend lasting sourcing, Help increase the lives of folks in their resource string and Help customers and employees live a wholesome life-style) by 2015. Despite an 18% fall in the show price in January 2008, following publication of the latest trading affirmation of Plan A, the company confirmed that they would be continuing with the program, saying that there were 'engaging commercial - as well as moral - reasons to take action Company is working hard using its customers and suppliers to overcome weather change, reduce waste products, use sustainable recycleables, trade ethically, and help our customers to lead better lifestyles.


Environment encapsulates of several different affects and widely constructs theory. Economic conditions have major impact on business's success and reaching success. These conditions also have an impact on both availability and cost of the capital to run the business. If economy does well that provide opportunities to business by increasing customer demand for the merchandise, services, careers. Factor which has direct impact on its tactical decision of the company's operation is recognized as Internal or Micro Environment factors. All tactical decisions of organization are influenced by these factors; they are as Durability, weakness, opportunities (what areas to be considered to get more market) and threat of that specific business and can be analysed through the SWOT examination. While financial conditions of the countries, trade are influenced by Political, Economic, Public, Technological, Environmental and legal factors. These factors can be duty changes, put into practice of new laws, barriers in trade, administration guidelines, labour market, work laws, interest, inflation, immigration laws and regulations, unemployment and demographic changes. They are known as Macro or Exterior Environment factors which cannot be avoided and it is analysed through PESTEL evaluation.

These environmental factors have immediate or indirect impact on each firm e. g. Managers to improve their business strategies consequently or understanding wider network of affects and relationship of computer with business environment, composition of development, how opportunities and menace may come up in future. These environmental factors help business to make their decision appropriately.

SWOT is strategic planning tool to analyse or measure the organization and its interior environment and stand for Power, Weakness, Opportunity and Threat to any firm, ventures, Task etc. This system for evaluating the business enterprise model was 1st presented by Albert Humphrey who also uses SWOT at Convention at Stanford University during 1960 to present the info from Fortune 500 Companies.


Mark and Spencer is a major British merchant throughout the country and growing its operation throughout the world. Company is also 43rd greatest retailer on the globe and despite of financial downturn Sales of clothes have stabilised, and food sales have increased, group sales has increased up 3. 3% with food sales up 2. 7%


To Practice Plan A, Business Engagement Group are said to stand for the employees and are to be consulted on regarding changes to employment conditions and conditions, used these are ineffective. BIG in addition has been blamed because of its engagement in the erosion of specific conditions and conditions of occupation which were once the envy of other retail individuals. M&S policy is now that if an employee has 8 shifts off over 26 weeks, regardless of the genuineness of the reason, they will get a Written Alert. If already on caution for absence they will progress through Final Written Warning and dismissal if they have 6 shifts off within 26 weeks. An instance of the is where a worker, who was simply absent through a significant head damage, being placed in a Written Alert and therefore her job being at risk, overlooked the Ј350 reward announced to personnel on 8 March 2010 and will also not qualify for the 2010 pay-rise until the 2011 pay review.


Rebuild the company's image with continued advertising including the successful M & S food adverts

Focus on central market

UK has an ageing people and company has regulations concentrating old people requirement

Internet food shopping but opportunities may be limited but quick online culture could be huge demand in future. However company has also started out providing other services - e. g. banking, insurance, savings etc.


They also began to sell other top quality goods like Kellogg's Corn Flakes from November 2008 and could ditch its top quality food in 2011 due to poor start beyond the 'Food to go' and 'Gastropub' lines.

General increase in internet shopping has drawn customers to go for shopping on the internet which is dispersing the online culture which may also have an impact on its business design. Competitor product ranges which directly compete with M & S food such as Tesco finest are also major obstacle for company to cope with.

Analysing Exterior/Macro environment factors we uses PESTEL model that also classify these external factors and how they impact on business. Analysing these pushes and factors will help Tag and Spencer in identifying the changes in the environment which are also called macro environment factors. Planning is manufactured on how to handle such changes and being prior to the competitors Draw and Spencer have big effect on their policies due to these factors. These are as:-

Political Factors: These consist of government rules and insurance policies which also intervene the economies. Politics decision does also have impact on business area. Following Western Integration and Free Trade Agreements, the marketplace has opened up for British Companies to purchase Eastern European countries. Tesco already has 60 Hypermarket store in Hungary. Lidl is uncompromisingly preventing to maintain its market share with an aggressive rates strategy. But due to free trade regulations Draw and Spencer's competitors has also needed features of its higher cost structure and piece off a few of its market share.

Economic Factors: These includes interest, taxation changes, development of current economic climate, disposable income, unemployment rate, inflation and exchange rates. Higher interest rate cost more to borrow. Increased inflation rate has also improve the wage demand and cost to company and goals brought up under Plan A might have an effect on scheduled to these economical and financial factors. Economic slowdown has lower nationwide income and reduces the demand and have an impact on the success. However, retail sector is fairly tough economy prone but also very hypersensitive to changes in interest levels. Since these monetary downturn world economies have experienced heavily, stocks plummeted and prices are at all-time lows. The earth overall economy is however, now improving and consumers are optimistic and the retail industry is once more booming.

Social Factors: Changes in social do have effect on demand of the customers. In United Kingdom human population is ageing that has also increased the cost to company in term of pension payment for their staffs because they live longer while changes in consumers tastes and lifestyle symbolizes both opportunities and hazards for the industry. Opportunities in conditions of new market and consumers, however, there are added dangers in terms of social acceptance to alcohol

Technological Factors: New technology changes the demand for services, new processes. Authorities insurance policies toward environment and scarcity of resources have enforced companies to modify new technology. Changes in retailing methods as such clothes sales via the Internet is now the put in place retailing. Paperless procedure, the management and administration of the business are undertaken onto it systems, that happen to be accessed through secure servers; provide flexibility in the going of the business enterprise.

Legal - Nationwide legislation for health insurance and safety both in conditions of consumer rights and also in terms of development of own natural green resources for making clothes. Factors relates to legal environment where company operate its business. Changing in U. K regulations has made significant changes that has damaged the behaviour many organizations. Introduction of age discrimination, era discrimination, disability rules and increasing in least wages has big impact on Tag and Spencer. Government laws to recycle the product in addition has increase cost to the business.

Environmental Factors: Environmental factors include factors changing the environment and weather. Global warming is good exemplory case of that and issue has led federal government to put into practice to strict guidelines and force company to comply with those guidelines. The renewable way to obtain resources found in creation, namely cotton and wool are green. The risks are in terms of legal consequences for livestock's in conditions of health insurance and safety.

Mark and Spencer need to improve its corporate and business culture to be costumer focused and dedicate to customer satisfaction by encouraging your choice making environment that was not weight down by hierarchy i. e. low hierarchy and decentralized framework. Tag and Spencer market product for both sexes however the management of the company is predominantly male. It really is advisable to achieve gender balance in management hierarchy and who understand customers well. Draw and Spencer need to carry out intense general market trends to identify the customers need to styles and product.

Mark and Spencer must develop an effective customer judgment and opinions system, ideally through the internet, being more convenient. Reviews received from the dedicated customers must be looked at seriously.

M&S need to concentrate on the top end of the clothing market but deliver stylish cloths, beautifully made out of fantastic value.

M&S focuses on its main customers, somewhat old 35-55 but neglecting younger ages comparing with its competitors. M&S should get into this market section either by starting new business or by acquiring another company such as Next who's well known for stylish clothes for children and youthful older consumers.

M&S should acquire George Davies brand "Per Una" if it has excellent performance.

M&S should show its development and create the fashion into the future.

Searching how the consumer's shopping experience can improve stores environment, by changing the construct, design, separating cloths and food to help make the stores more attractive and enjoyable. This will attract clients and improve customer satisfaction.

Improve the source chain efficiencies

M&S has to exploit technology in its stores by adding handheld communicators 'pda' to observe the cloths from the distribution onto the sales floor which really helps to know just what is in the store from stock availableness and ensure the right items will be provided the next day similar to Next.

M&S to make use of the E-commerce, the utilization of web-based purchasing system should keep your charges down.

Furthermore, the latest market fads knowledge can be communicated to the designers and makers through marketing, so a manufacturer aboard can be aware of the current fashion tendencies in UK and deliver it fast to keep ahead of its competitors very much like Zara's notion.

Develop Employees Skills

M&S needs to introduce training curriculum to have ground breaking personnel. A centralized training center would be a perfect way to train store supervisors and section managers on sales & services just like Route & World Disney notion.

Furthermore hiring young motivated personnel in addition to experienced personnel would increase M&S competences.


After middle 1990s M&S commenced to experience interior problems such as information movement breakdown and together with the fact that top management was concerned with international extension M&S was drifted from its core ideals such as consumer care and attention and customer satisfaction. M&S didn't recognize that consumers were becoming wiser and its own competitions stronger. Most of consumers consider M&S to be old fashioned company, this image needs to be changed to maintain line with the marketplace demand and regain its lost customers to other competitors. Based on the analyses, the writer seems that M&S should be reorganized in a variety of departments especially in Sales & Marketing and HRM departments. Choosing Plan A and spending so much time on it reveal that company has started out considering this problem and restructuring to become most responsible shop among its rivals while maintaining the environmental changes issue policies.

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