Marks And Spencer: An Analysis


Marks and Spencer is one of the UK's leading merchants. MandS was founded by way of a partnership between Michael grades, a polish immigrant from Slonim and Thomas Spencer in the early years 1884 to 1949. Then your next few years Michael marks opened some market stalls in many locations like North Western world of Britain. In 1984, Thomas Spencer invested in Markings activities and the plan to open up the first store in partnership at 20, Cheetham Hill Highway, Manchester. And that was the first founding of today's Tag and Spencer retail company.

They started their business with a straightforward business strategy that was to market quality products under the label of "St Michael". M&S lingerie, women's clothes and girl's university uniform

Task 1:

Strategic Formulation:

According to G Johnson & K Scholes, Strategy is the course and scope of the organisation over the future, which achieves advantages in a changing environment through its construction of resources and competences with the purpose of fulfilling stakeholder anticipations.

In simple words, business strategy is an idea which is defined by an company in terms of future performance. In addition, it gathers what exactly are the plans needed to get the goals establish. Whenever embryonic your strategy it is important to understand which position you want to start from in terms of the current performance levels.

In addition it is important to consider the critical indicators which can affect the capability to achieve the strategy. In order M&S strategy is like the following components they may be vision, mission and goals.

As M&S Vision is "to be standard against which others are measured"

M&S Quest is "to make aspirational quality accessible to all or any"


M&S Prices are "Quality, value, service, invention and trust"

Meaning of Stakeholder:

Stakeholders are individuals, groups or organization with interest in a job or programme. Stakeholder evaluation helps to find out the eye of stakeholder with regards to the project, to identify the turmoil of interest and understand the relationships between stakeholders for the task interest is attracted.

M&S's management provided a great support that helped in its progress. But just lately M&S's mangers seems to fail on leading the group to lower and lower profits and their tactical decisions. Shareholders are sensing insecure for future because the share prices are slipping down. Hence, M&S needs to undertake various steps to keep the market show and preserve its stakeholder available for future years expansion and success.

Stakeholder management has two important elements Stakeholder Research and Stakeholder Planning. Stakeholder evaluation is a method used to identify the key and important people who are necessary for the job whereas stakeholder planning is a support that would help to be successful the programs.

Importances of Stakeholder Evaluation that is transported by M&S are as follow:

To understand the partnership with the stakeholder.

To understand the stakeholder's place in the business.

To understand the value of the stakeholder in the organization.

Stakeholder's power

Stakeholder's priorities

Associated risk areas.

To help determine better strategies and decision

To help accept the strategy and decision of the organization.

http://www. actuaries. org. uk/?a=161691

take the diagram from this for stakeholder of M&S

What is Stakeholder Mapping? Description

During the Stakeholder evaluation process, it pays to to classify the various stakeholders by sketching pictures of what stakeholder's interest they signify, what groups they can be in, the quantity of vitality they process, whether they symbolize inhabiting or following factors for the company to recognize its targets, or which methods they should be dealt with. Stakeholder Mapping is the procedure to build such pictures to clarify the position.

Business strategy classification:

Strategic or institutional management is the conduct of drafting, employing and evaluating combination functional decision that will enable an organization to accomplish its long term.

According to Arieu (2007), " there exists strategic consistency when the activities of a business are consistence with the expectation of management, and these subsequently are with the market segments and the context. "

As M&S is the UK's leading suppliers, M&S offers stylish, great value clothing and home products, as it also deliver excellent quality food, reliably sourced from around 2, 000 suppliers globally. M&S has a committed action as to provide advanced quality products at a reasonable price which has built a 8 billion turnover, M&S hire 68, 000 employees in 30 countries, and has more than 500 stores and providing ten millions of customers each and every week.

M&S have put in the previous five years investing in place rough foundations good long term strategies. M&S have introduced new products and services in the central business of basic merchandising (GM) and food, increasing the international business, broadening the multi-national portfolio, and putting the program A in the center in our business. M&S also respond to the changing needs of the clients by increasing the ideals without composed of on quality; something M&S keep browsing the short term pain for a long term gain. M&S with its strong brand, providing the right products and with the exclusive experienced management team, M&S are now

Operational professional and increase in the tempo of change in the business

Increasing M&S direct by structuring more programs to market segments.

M&S keep building their international portfolio to be able to develop the global customer base

M&S keeps updating with the current brand communication.

As M&S rejoice their 125th anniversary they have discovered reputation for Trust, Quality, Service, Value and Development. These central part prices of M&S are as important today as they ever before have been.

M&S has almost 300 stores in UK which is the shop keeping head. It really is country's largest retailer and the main business is Clothing which contribute 17% on market share price. M&S has always targeted the center aged category especially their clothing office and specifically the women's wear. Per Una is the brand that is extremely popular in UK. M&S has decided to grow and explore new market in Malaysia. M&S show price is also dropping due to downturn; hence investors come to mind about it. Therefore a detail research is completed to solve the challenge and to kick off a fresh clothing range in Malaysia as per the enlargement plan.

M&S has completed the environmental and organizational audit to be able implement its extension plan with strong clothing range and extensive range of products to retain the market position and improve the share price.

Following is the SWOT research that is transported by M&S to first decide it strengths, weakness, opportunities and hazards of getting into in new market for starting a range of new clothing in women's wear.

SWOT Evaluation for M&S.




Own top quality products under own labels.

Best Quality service

Having their own farm which gives Fresh/ Quality Food.

Large Range of products

Understands customer trends and preferences.


Existing store coverage is resulting in difficulties

High price as compare to competitors

Very reliant on the performance of own labels




Expansion in to the new market segments.

Retail Partnerships

Internet shopping

Available technology to boost their working.

Cheap-chains concentrating on the top quality market

Overseas groups joining the market

Threats from discount store that provides same price with trendy clothing range.

With above analysis it is clear that M&S can use a strategy that will allow them to enter into new market like Malaysia. M&S can simply use its brand image and name to get familiar in the market and face your competition. Though there is certainly risks and weakness that needs to be taken care and attention by M&S to become successful in the extension plan to keep up with the market talk about price.

Table 2 - M&S Industry, Infestation Analysis



European Integration and Free Trade Arrangement.

Open market for British companies to purchase European.

Competition Commission

EU Competition Law

2009 Market value 5. 66bn

Relative Recession facts industry

Optimistic customer

Booming retail industry

Socio Cultural


Change in consumer style and lifestyle.

Organics and healthy eating

Environmental conscious

Internet selling.

IT and Communication

Supply String Optimization

Cool Storage space and Transport

Stock Management and Club Code

Above analysis gives a clear picture about the Western market as a part of growth for M&S.


M&S has made a decision to carry out the Organizational audit through Porter's Common Value string.

Porter's Generic Value Chain





















Firm Infrastructure

HR Management

Technology Development


Diagram 1: http://www. netmba. com/strategy/value-chain/

M&S goal behind these activities is to give the customers the worthiness that exceeds the cost of activities and thereby this offer will result in the profit percentage.

The value string activities make clear M&S's

Inbound Logistic: This make clear the distribution to production of M&S and even warehousing of the recycleables.

Operations: Operation explains the procedure of transforming recycleables into completed products and service to market them in M&S outlet stores.

Outbound Logistics: The processing and syndication of completed goods.

Marketing and Sales: carrying out the marketplace research to identify the customers 'need and necessity to face its competition in the market.

Service: Following the product and services are sold M&S has a solid support of customers. M&S can take every complaint very seriously because no issue is small running a business in this modern competitive world.

M&S helps these activities with:

The infrastructure of the M&S company is led with organizational composition, control system and company culture.

Put Diagram please to explain

Human tool management: M&S takes additional care and attention in selecting its workforce to make that it keeps the values and market position.


Table 2 - M&S - Boston Consulting Group Matrix

Relative Market Share



Rate of Market Growth



Question Marks

Organic foods

Clothing range

Online shopping#

Indian own brand foods




Cash Cows


'Perfectly Balanced' Own Brand Label Products

Wines & Delicatessen

Counter sales (Fish, Cheese, Pattisserie, Meats)

Frozen uncooked foods


Entertainment goods


There are six steps in strategic planning, M&S has covered few step as talked about above with various analysis carried out.

In this we will discuss the strategies to be used for entering in new market as part expansion plan.

M&S and every companies has three main general strategies available either become the lowest cost merchant or differentiate product and services in such a way that the clients in order that they will pay a premium price. Generic strategies effect

Cost Authority, Differentiation and Concentration.

M&S's primary products ( food and clothing ), it emphasis a focus general Strategies as it concentrates on a small segment

A particular group of categories such as executives

Market segmentation such as high end

Product feature such as freshness and within the chosen sections M&S attempts to accomplish differentiation from Tesco, Asda and any traditional retailer. Needs that can be better serviced by centering entirely on it.

Competitive Strategy:

Competitive Strategy is about being different. This means deliberately choosing to execute activities differently or even to perform different activities than rivals to deliver a specialized mixture of value ( Michael E Porter)

The essence of strategy is based on creating tomorrow's competitive advantages faster than rivals mimic the methods you posses today (Gary Hamel & C K Prahalad)

Porter's four generic Competitive Strategies

M&S Universal Strategies:

As per these strategies it is argued that to determine its competitive advantage the business must make two important decisions which can be

Whether to compete on Cost.

Its competitive opportunity.

Cost Control:

As M&S has decided to enter the market which is more competitive at price. To be able to enter broad mix section of the marketplace by presenting products and service at low price. M&S would like to preserve and sustain customers in Western market; hence they have kept its cost as low as possible to keep low prices for the merchandise and service. MS has to make certain that its quality or the top features of the product are untouched with the work being at low priced.

Market place is more dominated by price, as the merchandise is same from owner to seller.


M&S will be bringing out its product with differentiated feature. M&S own brand such according to Una is extremely popular within UK that allures customers frmom aged 35, M&S will launch its a fresh clothing range that will get customers from aged 20 to 25. It will have a fresh clothing range with low prices to draw in young customer.

New Group Strategy and Composition:

Based on these examination and research and tactical review, the panel of M&S released in Apr 29 of 2009 significant changes to the framework group and strategy. Highlighting the new strategies which will be used to retain the customers and increase the share price in the market

More give attention to UK retail:

Own brands will be modified and you will be made more stylish to appeal to young group of men and women as well. M&S will be selling more of its own brand and products exclusive to M&S so that customers can be snooze assure that the products are quality, value and service.

Recovery plan for selection of clothes

There is a huge progress in products like Home, food and Beauty.

Store improvement Programme

Focused customer service

Closure of damage making business, Cost reducing steps and realisation of value:

M&S is an enormous company, customer, entrepreneur and everyone has great expectation from them. Therefore M&S intend to merge or close business which is making deficits. M&S plan to close the subsidiary in the Western european rather than the Irish one. Offering of brooks in ruler brothers market and ultra markets in america as there are no appropriate program for future international expansion by M&S in US. M&S has opened up a fresh store in China through franchising.

M&S intends to close its reduction making business including a dedicated call centre with about 340 careers altogether.

Cost cutting is among the best ways to reduce the expenses of goods sold by using foreign suppliers and less dealer mainly to Asia.


Lately, M&S has confronted some difficult competition and that's how it's time for M&S to come up with new market for progress.

In order to analyse the marketplace and find a new market M&S has used the Ansoff's product - market matrix.

Table 4 - M&S - The Ansoff Matrix; Growth Vector Components






Market Penetration

Product Development

Improve service and quality



Expand Own Brand Labels

Introduce new products

Expand to non-food sector


Market Development


Internationalising & Globalization

Expand abroad

Online shopping



Above Ansoff matrix suggest that M&S can use this as a base to plot its growth plan for future.

In order to build up a new online marketing strategy, M&S carried out market research.

M&S market research shows that the ultimate way to bring new customers in their existing range would be by exploiting new market segments (market development). The business when carried out the research in both most important and secondary so when a results, they find the possibility to target between your ages 18-25 which also includes the students (three million) as potential customers, with a spending percentage of 12 billion.

To aim the youngsters (students) in order that they start shopping for their early college student days, M&S placed a new strategy. 90 colleges were contacted and the business used variety of strategies to entice the students like give free gifts at fresher's good, free voucher, direct email flyers and we banners. This might help the students to maintain their commitment over degree course and forward in working life.

To raise the understanding about the M&S value and products, the business create a marketing campaign. This campaign was really helpful where M&S achieved business aims, including growth and a fresh market (students, young people).

"Trendy with less price" catalogue was another step towards substantive expansion. It was launched in '09 2009 with an target so it benefits the business as well as the clients which offers a number of product, free home delivery, and online service as well.

To maintain this speedy development, M&S is also planning to take reduced offers internationally with opening new stores in different countries, to help expand expand the expansion running a business with a distinctive selling proposition.

M&S general market trends gives the consequence that the prevailing product into new market segments was the best route to have further


In Addition, M&S is to look at a fresh system to manage resource. M&S is adding products lifecycle software (Trade Natural stone Software system) which will support its global sourcing initiatives. This software will certainly reduce the time that may take to bring services to advertise, increase imports over an unspecified timeframe and broaden its product selection.

And with the advantages of the CPR (Customer Pulled Replenishment), M&S is likely to put into practice on the financial strategy by reducing labour costs and stock handling.

Accordingly, M&S will be keeping different degrees of implementations of strategies.

Following the functional technique for M&S Below is a cashflow declaration for M&S development plan in Western european Market with new clothing range and new product line.

Above is the GAP analysis can help M&S to create realistic goals so that as a basis for identifying the amount to which existing strategies will fail to meet performance aims in the foreseeable future.

GAP analysis can help M&S to understand the requirement and effort necessary to complete the Difference from where we have been to where we want to go, this space between this two questions will help M&S to fill up the gap with all resources that is needed. While planning the strategies M&S has forecasted desired income/profits.

It is then possible to consider how this distance may be bridged, as M&S has made a decision to complete the space with enlargement and launching a new clothing kick off for appealing to customers from 20-25 years.

Expectancy Theory (Vroom)




Leads to



Leads to

Outcome (Praise)


Personal Goals

After a extraordinary amount of research over the last couple of years it shows an increasing realisation of the customer satisfaction and customer concentration in the business, M&S made a decision to rebrand few of its stores through the use of during the last couple of years it shows a growing realisation of the customer satisfaction and customer emphasis in the business, M&S made a decision to rebrand handful of its stores through the use of whole new theory design to adopt M&S ahead.

With the new merchandising techniques and displays M&S have found a real positive change in the customers hopping environment.

Additionally, to raise the work towards its modernised offer M&S is also mulling a revamp of few of its stores.

Moreover, M&S also is constantly on the fine-tune its collection, transferring its existing store into much larger sites such as Oxford Street store, which required over a site formerly occupied by C&A in 2002.

In order to handle the marketplace surreys and research, M&S is analyzing systems in their company. To create the budget of the business M&S are opening new stores and departments. Aswell, the business is focusing on the limitations to attain the targets. For instance M&S has assessed a recycling approach (Plan A) through which it is producing a great deal of money.


http://books. google. co. uk/literature?id=8KS4gKNgLysC&pg=PT29&dq=G+Johnson+%26+K+Scholes&cd=1#v=onepage&q=G%20Johnson%20%26%20K%20Scholes&f=false

http://en. wikipedia. org/wiki/Business_Strategy

http://www. scribd. com/doc/6586668/Marks-and-Spencer-12-Full

http://www. coursework4you. co. uk/essays-and-dissertations/bcg-growth-sharemarket. php

http://www. netmba. com/strategy/matrix/bcg/

http://www. examstutor. com/business/resources/companyprofiles/marksandspencer/strategyinsight. php (about m&s details and information. . . . . . . )

http://www. echeat. com/essay. php?t=29922

http://www. thinkingmanagers. com/management/market-strategy. php

http://www. oxbridgewriters. com/essays/marketing/marks-spencers-corporate-objectives. php

http://www. coursework4you. co. uk/essays-and-dissertations/ansoff-analysis. php

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