Marks And Spencer Case Study

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Marks And Spencer Case Study

Company Name

Marks And Spencer

Type of Industry

Retail

Headquarters

London, United Kingdom

Sales/Revenue

£10,377.3 million 

Area Served

Worldwide

Number of Stores

300 stores in some 40 overseas locations

Competition

Debenhams, Macy's, John Lewis Partnership, Aldi UK, Asda, Tesco, Next and Waitrose & Partners

USP

Diversified product range

Target Group

People who are style-conscious and health-conscious

Products

High quality clothing, home products and food products

Website

www.marksandspencer.com

Marks And Spencer Introduction

The British multinational retail giant, Marks and Spencer is known for selling high quality clothing, food products and home appliances/products. Being a constituent of the FTSE 100 Index, the Company is listed on the London Stock Exchange, and is considered to be one of the world’s leading retail brands. A SWOT and PESTLE analysis of the Company is essential to strengthen the Marks and Spencer case study and to determine how the Company is operating within a given business environment adapting to overcoming different business challenges. It is in order to review the effectiveness of the business position of Marks and Spencer that the Marks and Spencer case study has become an imperative.

Marks And Spencer Swot Analysis

The Marks and Spencer case study should have its inception with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Amway. This beginning is needed to make certain a logical flow in the Marks and Spencer case study.

Strengths

The Marks and Spencer case study reveals that the primary strength of the Company is its leading brand image that has helped the Company to expand its business globally. It should also be noted that strong free cash flows have provided resources to the Company to strengthen its market presence worldwide. Another strengthening feature of Marks and Spencer is its knack of indulging in product innovation. Successful mergers and acquisitions in the past have also added to Marks and Spencer’s business strength. Moreover, and the Marks and Spencer case study reveals, the Company’s success in building a reliable supply chain should also be considered its strength.

Weakness

A high attrition rate in workforce has been considered as a setback for Marks and Spencer that has contributed to its weakness. Moreover, lack of intention in investing in new technologies, on the part of the Company’s top management, should also be considered a weakness of Marks and Spencer. Besides, Marks and Spencer’s less success rate in integrating firms with different work cultures should also be taken into account as a factor contributing to its weakness. Furthermore, as the Marks and Spencer case study reveals, lack of proper financial planning is yet another weakness of Marks and Spencer.

Opportunities

The emerging new segments within the fashion industry provide opportunities to Marks and Spencer to expand its business and increase its product diversity. Such provisions and opportunities have the potential to ensure Marks and Spencer’s business growth and development on a global basis. The huge market of ethnic and traditional wear in Asia, and the Marks and Spencer case study reveals, in specific, provides ample opportunity to Marks and Spencer to capitalize on the scope and spread to new markets in the concerned region. Moreover, as the Marks and Spencer case study reveals, the Company has the opportunity to utilize new technologies to eventually indulge in the process of practicing differentiated pricing strategy in newly penetrated markets.

Threats

Past failure in integrating firms with different cultures pose a serious threat to the merger and acquisition propositions of the Company in the future. It should also be noted that the Company is faced with the threat of the growing strength of local distributors in many of the markets in which Marks and Spencer is operating. Such threat has the potential to reduce the cost-effectiveness of the Company’s business. Moreover, fluctuating product standards in different countries also pose a serious threat to Marks and Spencer. Furthermore, it should be taken into account that exposure to currency fluctuations while operating in different countries is also a threat to the Company’s business growth and expansion.

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Marks And Spencer Pestle Analysis

To make sure that the completion of the Marks and Spencer case study is done effectively, it becomes essential to conduct a thorough analysis of the political, economic, social, technological, and legal environments in which Marks and Spencer operates. Evaluation of the aforesaid factors against the backdrop of some precise environmental factors will provide a deeper insight into Marks and Spencer’s global business position.

Political Environment

The political environment, in which a business operates, plays a critical role in ascertaining if the business is going to succeed or fail in its endeavors and ventures. This truth is very much applicable to Marks and Spencer’s business proposition. It should be noted, as revealed by the Marks and Spencer case study, that the Company has to rely on the political stability of those countries in which it operates owing to the fact that such stability ensures the prosperity of the retail sector in the particular country’s economy. The degree of government interference into the practices of the retail industry also impacts the business of Marks and Spencer on a global basis.

Economic Environment

Threat of currency fluctuation should be considered an important factor to be considered by Marks and Spencer while operating in different economic environments of different countries of operation. The Marks and Spencer case study reveals that the degree of government intervention in the free market is yet another factor that impacts the economic environment of a country and this factor also impacts largely on the business of Marks and Spencer. Marks and Spencer should also keep a through watch on the economic growth rate of a certain country of operation in order to ensure its business success in the respective country.

Social/Socio-Cultural Environment

To establish itself as a reputed business organization, it is an imperative for a company to cater to the social and cultural needs of the community around which the business is operating. This truth thoroughly applies to Marks and Spencer. In this respect the Marks and Spencer case study reveals that the Company has rendered arduous efforts in making charities to promote welfare and wellbeing of different communities across the globe (M&S, 2019). The Company strives for sustainable raw material management, relating its efforts to environment-protection objectives. Such activities have helped Marks and Spencer to establish itself as a socially responsible Company.

Technological Environment

Marks and Spencer, as revealed by the Marks and Spencer case study, has succeeded thoroughly in utilizing advanced communication technologies to cater to the business and personal needs of its customers. It should be noted that the Company has been able to employee different social networking platforms to market its product and business in a thorough manner on a global basis. This has added to the opportunities of business growth and development quite explicitly.

Legal Environment

Till date, Marks and Spencer has been successful in establishing itself as a key player in context of legal compliance. In this respect it should be noted, as revealed by the Marks and Spencer case study, that in every country where the Company operates, Marks and Spencer has been able to comply thoroughly with the anti-trust law in the retail industry. Moreover, the Company has also been successful in complying with laws that are meant for promoting anti-discriminatory practices in the retail industry. Besides, along with complying with copyright laws, Marks and Spencer has also shown its efficacy in terms of complying with consumer protection laws of different countries of operation.

Environmental Factors

It should be noted that Marks and Spencer, being an industry leader, has rendered painstaking efforts in promoting sustainable business practices to contribute to the emergence of a greener economy. The Company practices use of sustainable raw materials and it also eyes at establishing itself as an energy efficient Company (“M&S Energy: Community Energy Fund Report 2016”, 2016).

Conclusion

The Marks and Spencer case study has revealed that the Company has been able to establish its market reputation through investing in social, legal, and environment needs. Both the SWOT and PESTLE analyses suggested the fact that Marks and Spencer is continuing to emerge as a leader within its industry, promoting itself as a customer and community-oriented, environmental-friendly, and energy-efficient business entity.

References

M&S (2019). Sustainability. Retrieved August 10, 2019, from https://corporate.marksandspencer.com/sustainability

M&S Energy: Community Energy Fund Report 2016 (2016). Retrieved August 10, 2019, from https://corporate.marksandspencer.com/documents/plan-a-our-approach/mns-energy-community-energy-report-2016.pdf

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