Marks And Spencer: An Analysis

Marks And Spencer An AnalysisIntroductionMarks and Spencer is one of the UKs leading retailers. MandS was founded by a partnership between Michael marks, a glitter immigrant from Slonim and Thomas Spencer in the early years 1884 to 1949. Then the next few years Michael marks loose some market stalls in many another(prenominal) locations like North West of England. In 1984, Thomas Spencer invested in Marks activities and the contrive to open the first investment firm in partnership at 20, Cheetham pitchers mound Road, Manchester. And that was the first founding of the present Mark and Spencer retail company.They started their disdain with a simple business strategy which was to sell quality increases under the label of St Michael. MS lingerie, womens clothes and girls school uniformTask 1Strategic FormulationAccording to G Johnson K Scholes, Strategy is the direction and scope of an organisation all over the long term, which gets advantage in a changing environment through i ts configuration of resources and competences with the aim of fulfilling stakeholder expectations.In simple words, business strategy is a plan which is set by an organisation in terms of future work outance. It also gathers what are the plans needed to get the goals set. Whenever embryonic your strategy it is important to regard which moorage you want to start from in terms of the current performance levels.In addition it is important to consider the important factors which can influence the ability to achieve the strategy. So as MS strategy is including the following components they are vision, mission and goals.As MS Vision is to be standard against which all others are carefulMS Mission is to make aspirational quality accessible to allAndMS rates are Quality, value, service, innovation and trustMeaning of StakeholderStakeholders are persons, aggroups or formation with interest in a project or programme. Stakeholder summary helps to muster out the interest of stakeholder in relation to the project, to identify the conflict of interest and understand the relations between stakeholders for the project interest is drawn.MSs management gave a great support that helped in its growth. But recently MSs mangers seems to fail on leading the group to lower and lower sales and profits and their strategical decisions. Shareholders are feeling insecure for future because the share hurts are falling down. Hence, MS needs to sign on various steps to maintain the market share and retain its stakeholder in the business for the future growth and success.Stakeholder management has two important elements Stakeholder Analysis and Stakeholder Planning. Stakeholder abridgment is a technique used to identify the key and important people who are needed for the project whereas stakeholder planning is a support that would help to gain ground the plans.Importances of Stakeholder Analysis that is carried by MS are as followTo understand the relationship with the stakeholder .To understand the stakeholders place in the organization.To understand the importance of the stakeholder in the organization.Stakeholders agencyStakeholders prioritiesAssociated risk areas.To help decide better strategies and decisionTo help accept the strategy and decision of the organization.http//www.actuaries.org.uk/?a=161691take the diagram from this for stakeholder of MSWhat is Stakeholder Mapping? explanationDuring the Stakeholder psychoanalysis process, it is useful to classify the various stakeholders by drawing pictures of what stakeholders interest they represent, what groups they are in, the amount of power they process, whether they symbolize inhabiting or following factors for the organisation to actualize its objectives, or which methods they should be dealt with. Stakeholder Mapping is the process to create such pictures to clarify the position.Business strategy definitionStrategic or institutional management is the head of drafting, implementing and evaluatin g cross functional decision that will enable an organization to achieve its long term.According to Arieu (2007), there is strategic consistency when the actions of an organization are organic structure with the expectation of management, and these in turn are with the markets and the context.As MS is the UKs leading retailers, MS sells stylish, great value clothe and home products, as it also keep excellent quality food, reliably sourced from around 2,000 suppliers globally. MS has a commitment as to provide advanced quality products at a reasonable harm which has built a 8 billion turnover, MS employ 68,000 employees in 30 countries, and has more than 500 stores and serving ten millions of customers each and every week.MS rescue spent the last five years putting in place tough foundations in line with the long term plans. MS have introduced advancedly products and services in the core business of general merchandising (GM) and food, refineing the transnational business, b roadening the multi-national portfolio, and putting the plan A in the heart of our business. MS also respond to the changing needs of the customers by improving the values without comprising on quality something MS keep viewing the short term bruise for a long term gain. MS with its strong brand, delivering the right products and with the max experienced management team, MS are nowOperational executive and attach in the pace of limiting in the businessIncreasing MS direct by structuring more channels to markets.MS keep building their international portfolio so as to grow the global customer baseMS keeps updating with the current brand communication.As MS celebrate their 125th day of remembrance they have revealed reputation for Trust, Quality, Service, Value and Innovation. These central part values of MS are as important today as they ever have been.MS has nearly 300 stores in UK which is the shop keeping leader. It is countrys largest retailer and the main business is Clothing which contribute 17% on market share price. MS has always targeted the middle old class especially their clothing department and specifically the womens wear. Per Una is the brand that is very popular in UK. MS has decided to expand and explore bare-ass market in Malaysia. MS share price is also falling due to recession hence investors are worried most it. Therefore a detail explore is carried out to solve the problem and to launch a current clothing needywheel in Malaysia as per the involution plan.MS has carried out the environmental and organizational audit in order implement its expansion plan with strong clothing range and wide range of products to retain the market position and growth the share price.Following is the SWOT analysis that is carried by MS to first decide it strengths, weakness, opportunities and threats of incoming in new market for launching a range of new clothing in womens wear.SWOT Analysis for MS.InternalStrengthsWeaknessesOwn branded products und er own labels. better(p) Quality serviceHaving their own farm which gives Fresh/ Quality Food.Large Range of productsUnderstands customer trends and preferences.Online-ShoppingExisting store coverage is leading to difficultiesHigh price as compare to competitorsVery dependent on the performance of own labelsExternalOpportunitiesThreatsExpansion into the new markets.Retail PartnershipsInternet shopAvailable applied science to improve their functioning.Cheap-chains targeting the high end marketOverseas groups entering the marketThreats from discount store which offers same price with trendy clothing range.With above analysis it is clear that MS can use a strategy that will allow them to enter new market like Malaysia. MS can for sure use its brand image and name to get familiar in the market and to face the competition. Though there is threats and weakness that needs to be taken care by MS in order to be successful in the expansion plan to maintain the market share price.Table 2 M S Industry, PEST AnalysisPoliticalEconomicEuropean Integration and Free Trade Agreement.Open market for British companies to invest in European. contestation CommissionEU Competition Law2009 Market value 5.66bnRelative Recession proof fabricationOptimistic customerBooming retail industrySocio CulturalTechnologicalChange in consumer taste and lifestyle. completes and healthy eatingEnvironmental consciousInternet selling.IT and CommunicationSupply Chain Optimization unruffled Storage and TransportStock Management and Bar CodeAbove analysis gives a clear picture about the European market as a part of expansion for MS.INTERNAL AUDITMS has decided to conduct the Organizational audit through Porters Generic Value chain.Porters Generic Value Chain InboundLogisticsOperationsOutboundLogisticsMarketinggross revenueServiceMARGINFirm alkaliHR ManagementTechnology DevelopmentProcurementDiagram 1 http//www.netmba.com/strategy/value-chain/MS goal behind these activities is to give the customers the value that exceeds the cost of activities and thereby this offer will result in the profit margin.The value chain activities explain MSsInbound Logistic This explain the distribution to manufacturing of MS and even computer storage of the raw materials.Operations Operation explains the process of transforming raw materials into finished products and service to sell them in MS outlets.Outbound Logistics The manufacturing and distribution of finished goods.Marketing and Sales keep backing out the market research to identify the customers need and requirement to face the competition in the market.Service After the product and services are sell MS has a strong support of customers. MS takes every complaint seriously because no problem is small in business in this in advance(p) competitive world.MS supports these activities withThe infrastructure of the MS firm is guided with organizational structure, control system and company culture.Put Diagram please to explain world resource management MS takes additional care in selecting its workforce to make that it keeps the values and market position.TASK 2Table 2 MS Boston Consulting Group intercellular substanceRelative Market ShareHighLowRate of Market GrowthHighStarsQuestion MarksOrganic foodsClothing rangeOnline shoppingIndian own brand foodsServicesBakeryLowCash CowsDogsPerfectly Balanced Own disfigurement Label ProductsWines DelicatessenCounter sales (Fish, Cheese, Pattisserie, Meat)Frozen uncooked foodsFlowersEntertainment goodsSTRATEGIC PLANNINGThere are six steps in strategic planning, MS has covered few step as discussed above with various analysis carried out.In this task we will discuss the strategies to be used for entering in new market as part expansion plan.MS and every companies has three main generic strategies available either become the terminal cost retailer or differentiate product and services in such a way that the customers so that they will pay a agio price. Generic strategies resul tCost Leadership, Differentiation and Focus.MSs core products ( food and clothing ), it emphasis a focus generic Strategies as it concentrates on a designate segmentA particular set of groups such as executivesMarket segmentation such as high endProduct feature such as freshness and within the chosen segments MS attempts to achieve differentiation from Tesco, Asda and any high street retailer. Needs that can be better serviced by focusing entirely on it.Competitive StrategyCompetitive Strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value ( Michael E Porter)The essence of strategy lies in creating tomorrows competitive advantages faster than competitors mimic the ones you posses today (Gary Hamel C K Prahalad)Porters four generic Competitive StrategiesMS Generic StrategiesAs per these strategies it is argued that to establish its competitive advantage the bu siness needs to make two radical decisions which areWhether to compete on Cost.Its competitive scope.Cost LeadershipAs MS has decided to enter the market which is more competitive at price. In order to enter broad cross section of the market by introducing products and service at low price. MS wants to sustain and retain customers in European market hence it has kept its cost as low as practicable to keep low prices for the products and service. MS has to make sure that its quality or the features of the product are untouched with the efforts being at low cost.Market place is more dominated by price, as the product is same from vendor to seller.DifferentiationMS will be introducing its product with differentiated feature. MS own brand such as Per Una is very popular within UK that attracts customers frmom aged 35, MS will launch its a new clothing range that will attract customers from aged 20 to 25. It will have a new clothing range with low prices to attract young customer.New Group Strategy and StructureBased on the above analysis and research and strategic review, the board of MS announced in April 29 of 2009 significant changes to the structure group and strategy. Highlighting the new plans which will be used to retain the customers and increase the share price in the marketMore focus on UK retailOwn brands will be modified and will be make more stylish to attract young group of people as well. MS will be selling more of its own brand and products exclusive to MS so that customers can be rest assure that the products are quality, value and service.Recovery plan for range of clothesThere is a bulky growth in products like Home, food and Beauty.Store improvement ProgrammeFocused customer serviceClosure of loss devising business, Cost snub measures and realisation of valueMS is a huge company, customer, investor and everyone has great expectation from them. Therefore MS intend to merge or close business which is making losses. MS intend to close the su bsidiary in the European rather than the Irish one. Selling of brooks in king brothers market and super markets in the US as there are no suitable platform for future international expansion by MS in US. MS has opened a new store in China through franchising.MS intends to close its loss making business including a dedicated call pump with about 340 jobs in total.Cost cutting is one of the best ways to reduce the costs of goods sold by using foreign suppliers and less supplier mainly to Asia.TASK 3Lately, MS has faced some tough competition and thats how its time for MS to come up with new market for growth.In order to analyse the market and find a new market MS has adopted the Ansoffs product market matrix.Table 4 MS The Ansoff Matrix Growth Vector ComponentsProductsExistingNewMarketsExistingMarket PenetrationProduct DevelopmentImprove service and qualityRepositioningWithdrawalelaborate Own Brand LabelsIntroduce new productsExpand to non-food sectorNewMarket DevelopmentDiversifi cationInternationalising GlobalizationExpand abroadOnline shopping gatherAcquisitionsAbove Ansoff matrix suggest that MS can use this as a base to plot its expansion plan for future.In order to let a new marketing strategy, MS carried out a market research.MS market research shows that the best way to bring new customers in their existing range would be by exploiting new markets (market development). The company when carried out the research in both primary and secondary and as a outcome, they find the opportunity to target between the ages 18-25 which also includes the students (three million) as potential customers, with a spending ratio of 12 billion.To aim the youth (students) so that they start shopping for their early student days, MS set a new strategy. 90 universities were contacted and the company used variety of tactics to attract the students like give free gifts at freshers fair, free voucher, direct mail flyers and we banners. This would help the students to maintain their loyalty over degree course and ahead in working life.To increase the sentience about the MS value and products, the company set up a campaign. This campaign was really helpful where MS achieved business aims, including growth and a new market (students, youngsters).Trendy with less price catalogue was another step towards substantive growth. It was launched in 2009 with an aim that it benefits the company as well as the customers which offers a variety of product, free home delivery, and online service as well.To maintain this rapid growth, MS is also planning to take discounted offers internationally with opening new stores in different countries, to further expand the growth in business with a unique selling proposition.MS market research gives the result that the existing product into new markets was the best direction to take furtherTASK 4In Addition, MS is to adopt a new system to manage supply. MS is introducing merchandise lifecycle software (Trade Stone Software syste m) which will support its global sourcing initiatives. This software will reduce the time which will take to bring new products to market, increase imports over an unspecified timeframe and expand its product selection.And with the introduction of the CPR (Customer Pulled Replenishment), MS is planning to implement on the financial strategy by cut down labour costs and stock handling.Accordingly, MS will be maintaining different levels of implementations of strategies.Following the operational strategy for MS Below is a cash geological period statement for MS expansion plan in European Market with new clothing range and new product line.Above is the GAP analysis will help MS to set realistic goals and as a basis for identifying the extent to which existing strategies will fail to meet performance objectives in the future.GAP analysis will help MS to realise the requirement and effort required to fill in the GAP from where we are to where we want to go, this bed cover between this two questions will help MS to fill the gap with all resources that is needed. While planning the strategies MS has forecasted desired revenue/profits.It is then possible to consider how this gap may be bridged, as MS has decided to fill in the gap with expansion and launching a new clothing launch for attracting customers from 20-25 years.Expectancy Theory (Vroom)EfforthhExpectancy?Leads toPerformanceInstrumentalityLeads toOutcome (Reward)Valence?Personal GoalsAfter a extraordinary amount of research over the last few years it shows an increasing realisation of the customer satisfaction and customer focus in the company, MS decided to rebrand few of its stores by applying over the last few years it shows an increasing realisation of the customer satisfaction and customer focus in the company, MS decided to rebrand few of its stores by applying whole new concept design to take MS forward.With the new merchandising techniques and displays MS have found a real positive change in the c ustomers hopping environment.Additionally, to increase the effort towards its modernised offer MS is also mulling a revamp of few of its stores.Moreover, MS also continues to fine-tune its portfolio, transferring its existing store into larger sites such as Oxford Street store, which took over a site formerly occupied by CA in 2002.In order to carry out the market surreys and research, MS is evaluating systems in their organisation. To form the budget of the company MS are opening new stores and departments. As well, the company is working on the limitations to achieve the targets. For example MS has recently evaluated a recycling technique (Plan A) through which it is generating quite a lot of money.Referencinghttp//books.google.co.uk/books?id=8KS4gKNgLysCpg=PT29dq=G+Johnson+%26+K+Scholescd=1v=onepageq=G%20Johnson%20%26%20K%20Scholesf=falsehttp//en.wikipedia.org/wiki/Business_Strategy (function() var scribd = document.createElement(script) scribd.type = text/javascript sc ribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() http//www.coursework4you.co.uk/essays-and-dissertations/bcg-growth-sharemarket.phphttp//www.netmba.com/strategy/matrix/bcg/http//www.examstutor.com/business/resources/companyprofiles/marksandspencer/strategyinsight.php (about ms details and information.)http//www.echeat.com/essay.php?t=29922http//www.thinkingmanagers.com/management/market-strategy.phphttp//www.oxbridgewriters.com/essays/marketing/marks-spencers-corporate-objectives.phphttp//www.coursework4you.co.uk/essays-and-dissertations/ansoff-analysis.php