Customer Relationship Management (CRM) Technology Impact

Customer Relationship Management (CRM) Technology ImpactTHE IMPACT OF CUSTOMER kin MANAGEMENT TECHNOLOGY ON INFORMATION AND STRATEGY IN THE RETAIL IndustryEXECUTIVE SUMMARYThis report examines CRMs trespass on nurture physical exertion and system in the sell arena. Regarding CRMs impact on study do the reports reveal that CRMs data warehousing, automation, mining, noesis allotment and companionship sharing capabilities arrive at significantly impacted how giving medications retain, share and disseminate information to relevant areas of the business. Key information on buying trends, client profiles can be kindle so that captivate modifications can be made regarding pricing, harvest-festival, promotional and other elements to fork out enhanced products and services. CRM, for many retail organizations, has meant information is now practise as a mention of competitive advantage. Examining CRMs impact on strategy, the report illustrates by the MIT90s framework that strategic conjunctive amidst CRM technology and the arrangings social structure, its strategy, its people and finale is essential for technology to be integrated utilely.The reports findings reveal many barriers to CRM. These centre on an over focus on the technical-requirements than on business strategy, a lack of swing out-functional coordination, failure to support oversee and evaluate CRM implementation, an unreceptive organisational culture to proficient change and an inability to see CRM implementation from a holistic approach. An unwillingness to share information and knowledge was alike highlighted as a potential inhibitor to unlocking CRM potential. Evidence illustrates that barriers essenti on the wholey fall under a strategic misalignment between technology, structure, strategy or culture of an organisation. In response, a number of recommendations to aid retail organisations in unlocking CRM potential are provided. These include a holistic perspective towards CRM implementation a focus on strategic alignment between CRM and the organisations strategy, structure, item-by-items and culture a CRM strategy, outlining its strategic objectives understanding the organisations data needs encouraging organisational agility to provide a more alterable structure that CRM technology can be integrated more easily into introducing tailored enlisting and training programs to foster the right CRM competencies backed with an effective incentive outline and the facilitating a communal culture organisational culture emphasising teamwork, empowerment, communicating, innovation and a strong customer orientation.INTRODUCTIONWith managing customer relationships now central to organisational success (Kohli et al, 2001 OHalloran, 2003 Nguyen et al, 2007), developing long-term customer relationships through delectationr enabling Customer Relationship Management (CRM) technology has moved to the top of the corporate priority list for many retail organ isations (Smith, 200687). But what precisely are the target implications CRM has on information and on strategy? and why is that many CRM projects in the past have failed? What can retail organisations do to ensure CRM success? It is these areas that this report essays to explore within a retail sector context. The author has selected to investigate these areas in a retail sector context due to its sheer growth, impact and scale of usage within this industry (Anon, 2009). It has revolutionised the charge retail companies utilise data to identify call information trends and thus create and apply this knowledge to potentially increase profits (Miller, 1999). The reports main body is therefore split into two sections, with section one examining the impact CRM technology has on information use and section two, using the MIT90s framework, exploring the potential consequences CRM has on strategy for retail organisations. Lastly, barriers associated to successful CRM implementation ar e considered and recommendations presented as to how retail organisations can fully unlock and capitalise on their CRM capabilities.SECTION 1 USE OF TECHNOLOGYThe side by side(p) section provides an explanation of CRM from a theoretical standpoint, through an compendium of literature definitions and a practical one, in terms of hardware, software and data structures.1.1 Explanation of TechnologyThe range of CRM definitions emerging over the years have provided many interpretations of what precisely CRM is and does (McKie, 2000). Broader, arguably looser definitions view CRM as a natural progression from relationship marketing (Light, 2001), where information ashessenable organisations to realise a customer focus (Bull, 2005593). Richer, complex definitions view CRM technology enabling organisations via the utilisation of customer related information to foster closer relationships with their customers (Levine, 2000 Hsieh, 2009416). More specifically, McNally (2007169) defines CRM as a strategic service addressing all aspects associated with identifying customers, creating customer knowledge, building customer relationships, and shaping organisation and product perceptions. Nguyen (et al, 2007103) echoes this, but provides a more simplified version, CRM is a strategic process that helps companies better understand their customers needs so they can provide these needs to their customers at the right time while improving the companys processes. The emphasis on strategic process in the former two definitions fits particularly well when explaining how CRM works in the retail sector in terms of hardware, software and data structures. here transactional data from EPOS sales systems, web systems, sales contact systems systems and loyalty schemes (data) through automated data capture is sent to the client server central processor at head office (hardware) where an analysis of relationships (using software) is conducted (Mutch, 2008). It is whence data warehoused and structured in a way that allows the user (with the use of CRM tools) to extract patterns and relationships on chief(prenominal) trends, such as information on particular customer profile groups and their purchasing habits, average spend, preference for offers etc. This can then be utilise to identify potential ways of improving profitability and disseminated back to relevant departments.1.2 Impact of CRM on Information use in the Retail SectorThe following section analyses CRM technologys impact on information use in the retail sector. Information here is broken down into three main elements data be unexampled statistics, symbols, numbers, information processed data considered and knowledge the application of data and information (Beynon-Davies, 2009). The relationship between one another is also presented throughout.1.2.1 Impact of CRM on data useA. Provided more efficient and effective use of data, through warehousing, mining and cross-functional integration.CRMs capabilit y for integrating multiple databases across different areas of the retail organisation has impacted data use in the sense that it has enabled users to have access to real time, relevant and accurate customer data. Fallon (2008) and Kaplan (2009) indicate that CRM allows retail companies to absorb raw customer data from multiple lineages and integrate it into a centralised CRM system. There it is warehoused and later mined so important trends and information can be elicited and utilised (as applied knowledge) to improve customer relationships (Park and Kim, 2003 Chowdhury, 2009). Where CRMs impact on data use lies is that through data warehousing, users with the aid of CRM mining tools, can analyse good deal of real time transactional data such as sales amount, transaction time, place and buyer and non-transactional data, such as customer inquiries/feedback and separate this out into key information on product lines, pricing and customer profile and trends, down to each specific r etail department and individual store (Miller, 1999). They can then filter back important information and knowledge to management and provide so that the right people at different organisational levels have the necessary know-how to provide enhanced levels of customer service, solve problems and increase profitability (Park and Kim, 2003).B. Negatively impact as a form of customers surveillanceAmid growing concerns over data aesthesia and the increasing cross-referencing sale of data CRM has negatively impacted data use (Bodenberg, 2001 Mutch 2008). writings indicates that CRM technology, with its capability to collect vast amounts of customer data for own strategic purposes, has led to a mass surveillance and monitoring of customer behaviour (Park and Kim, 2003). Consequently, data access and exchange has become more restricted due to demanding data protection legislation and company guidelines over the storage, access and lawful use of personnel customer information (Mutch, 20 08).1.2.2 Impact of CRM on information useA. Information now used as a source of competitive advantageusing real time data and information enable a real time responseA CRM system allows retail organisations to pull all the transactional and non transactional data together and through the use of CRM tools, extracts key information slender to help coordinate sales, marketing, and customer service departments to better and faster serve customers needs (Smith 2006). In the retail industry CRM has particularly impacted on the way information is used to formulate customer profiles. Organisations can now quickly identify who there customers are, what they buy, how often, the quantities in which they buy etc and use this information to modify pricing, product or service offerings and other elements such as customer service to create an in-depth understanding of customer needs and provide fair value to all customers (Park and Kim, 2003). Put simply, CRM has impacted information use in that users can quickly provide comprehensive summary reports on critical business information to shake off informed decisions and responses to reduce costs and increase profitability at a much faster rate (McLuhan, 2001).1.1.3 Impact of CRM on how knowledge is usedA. CRM impacts on organisations potential for improving knowledge retention, management and sharing.knowledge as a choiceLiterature advocates that CRM has enhanced organisations ability to share and utilise knowledge (Krebs, 1998 fan and Ku, 2010). Reychav (2009235) concurs CRM has improved employees ability to share knowledge both tacit and explicit and thus develop a customer orientation right throughout the business. This is back up by Krebs (1998) although he argues that codifying and storing tacit knowledge to be a much more intricate process. Irrespective, a wealth of evidence indicates CRM has changed the way knowledge is used in terms of how it is shared (Krebs, 1998). For example, in the retail sector, knowledge on particular buying habits of customer groups can be stored on a CRM system at head office where it is accessed by relevant departments (marketing, accounts, sales) who design appropriate promotional deals or joint offers on product lines to increase sales and profitability. This knowledge can than be disseminated to appropriate retail outlets/stores to be implemented.SECTION 2 STRATEGYThe following section examines CRMs impact on strategy within the retail sector and begins with a short outline of the key issues of CRM that prevent CRM from fulfilling its potential capabilities in practice. These are conceptualised in the following sections using Scott-Mortons (1991) MIT90s framework (see below), which stresses strategic alignment and integration of CRM technology within all areas of the business is essential to capitalise on CRM potential.2.1 ContextThe key issues of implementing CRM technology and its impact on business strategy are1. Strategic alignment between CRM technology and business retail strategy2. Ensuring the organisations structure works synonymously with CRM technology3. The provision of individual training, recruitment and within this revised job descriptions to ensure the development of necessary competencies to maximise CRM potential4. How organisational culture positively or negatively affect an organisations and its employees ability to use information elicited from CRM technologyThese are now explored in more depth in the following sections using the MIT90s framework model illustrated below.2.1 Strategy story is littered with past CRM failures, Carsdirect.com (Anon, 2000) and Lexmark (Songini, 2002) being perfect examples. McLuhan (2001) and Ramsey (2003) indicate most CRM failures are due to focusing overly on technical-requirements (technological determinism) rather than on the business strategy and the organisations needs. A lack of cross functional coordination, failure to support monitor and evaluate CRM performance and a failure to a pproach CRM implementation from a holistic approach are some of the other cited reasons as to why CRM projects fail (McLuhan, 2001 Bull, 2003). Other academics argue an unreceptive organisational culture to technological change coupled with an unwillingness to share information and knowledge as inhibitors to unlocking the potential benefits that CRM offers (Kotorov, 2003 Pavlovets, 2005).Essentially the problems cited by literature come under the central issue of strategic alignment, a stamp stressed in Henderson and Venkatramans (1993) Strategic Alignment Model and Turbans, et al. (1999) pagan model, though arguably conceptualised to greater effect in the MIT90s framework (Scott-Morton, 1991) which is predominantly the main framework used in this report. The model advocates that for IT change to be successful, technology must be aligned to the company as a whole, so that organisational strategy, infrastructure, existing technology, individual roles, training programs, management and the organisations culture work synonymously with each other (Scott-Morton, 1991). Macredie et al. (1998), supports this perspective, concurring that CRM success is dependent on alignment between organisational strategy, structure and culture. Misalignment between these areas prevents CRM from fully delivering its potential capabilities. For example, if a retail organisations structure restricts CRM access to marketing and senior management only than it is unlikely that crucial information will be fed down to middle management and employees at in operation(p) level (those who interact with customers on a day to day basis) who require it most. Conversely, if the CRM system is not complemented with a recruitment and training policy that is designed to source and develop pump competencies required to use CRM technology efectively, than it will most likely fail. Thus, a strategically aligned approach to information strategy (see appendix figure 1), ensuring information systems str ategy, information management strategy, information technology strategy and information resource strategy are connected to each other and the overall organizations strategy is a critical success factor for integrating CRM effectively throughout the organisation (Earl, 2000 Van Bentum, 2005). The following sections now turn towards ensuring alignment within other areas of the organisation.2.2 StructureNumerous writers cite the sheer importance of aligning organisational structure with strategy, technology, the environs and its organisational culture (Mintzberg, 1989 Miller, 1989). In other words, to maximise your IT capabilities, an organisations structure must fit with its environment (Burns and Stalker, 1991 Senge, 1994). Over the years, this has led many retail organisations to shift away from handed-down large-scale bureaucratic and hierarchical organisational forms to less traditional divsionalised structures facilitated by business process reengineering. However, evidence sug gests such structures not only lose the benefits associated with large-scale bureaucratic organisations such as functional specialism and data interpretation from middle level managers, but also often fail to build strong relate between divisions of the business, leading to a loss of shared core competencies and knowledge (Mabey, Saloman and Storey, 2001 Mutch, 2008). Literature is therefore indicative neither structure is particularly appropriate when integrating CRM technology. More recently, de-structured organisational forms, with an emphasis on high performance, knowledge creation and the empowerment of teams reflect a more suitable organisational structure in aiding retail organisations to elicit the potential their CRM application offers (Mabey, Saloman and Storey, 2001). Here, structure is built with speed, integration, innovation and flexibility in mind and an adhoc, boundaryless approach more receptive to technology change is instilled throughout the organisation. This en courages a free flowing information exchange throughout strategic, tactical and operational levels, structuring the organisation in a way where senior and middle management staff at retail organisations disseminate key important information and knowledge to employees at operational level. Where CRM role comes into play, is that it can be used to support these networked/ hoop forms of organisations (Zuboff, 1988).It therefore appears that organisational agility, termed by Gunneson (19973) as a flat, fast, flexible organisation, with continuous interaction, support, and communications among various disciplines, with highly decentralized management that recognises what its knowledge base is and how it can manage that base most effectively, is an essential component of structure. To achieve this, retail organisations must adopt a lattice/network like structure that has a desegregate of stability and flexibility to support the organisations capabilities and the empowerment of team worki ng through cross functional teams with a focus on developing the collective intelligence service of teams to meet the complexity of the dynamic environment (see Lorrimar, 1999). Such a structure is typically flat with large spans of control, features lateral communication and helps develop and maintain a project teamwork ethos and customer focus to ensure decision-making is guided by customer satisfaction (Friesen, 200533). This increases employee involvement, enhances communication, speeds up decision-making and breaks down boundaries thus enhancing flexibility and capacity to adapt (Clayton, 2006).2.3 RolesLiterature advocates that it is organisational peoples use of CRM, not the technology itself, which is where organisations truly capitalise on opening up CRMs full capabilities (McNally, 2007169). Accordingly, recruitment, job descriptions and individual training should be amend in order to ensure the retail organisations have the right processes and programs in place to ascert ain the competencies needed to utilise CRM technology. Job specifications for staff or librarians accessing CRM should be amended to encourage a proactive approach towards their duties (Owens, Wilson and Abell, 1996). In addition, selection criteria should be adjusted to identify candidates who possess CRM capabilities through IT/CRM related qualification/certificates or direct experience gained through previous employment. Various levels of CRM training programs tailored to each department, and manager should be introduced and should centre on themes which retail procedure and policies regarding data analysis (McKean, 1999), communication competence, such as the use of emails (Ciaborra and Patriotta, 1996) and the ethical use of information to protect the identification of individual customers (Mason, Mason and Culnan, 1995), as well as CRM operational and functional use and how it works across the organisation (Mutch, 2008). The above changes should help retail organisations foste r the necessary competencies to ensure CRMs correct use throughout the organisation (Alter, 2009). It is argued that these changes (jobs, processes and a lattice/network like structure), supporting richer communication and information sharing, allow workers to become informated by CRM and view the organisation in its totality, making information and processes once hidden, transparent (Zuboff, 1988).2.4 CultureDifferent aspects of organisational culture impact CRM use both positively and negatively in numerous ways. Van Bentum, (2005) analysis of organisational culture distinguishes between several variants of culture. Of these more mercenary (characterised by heavy inward competition and intense internal and external rivalry) types of culture, often lend themselves to a communication framework that does not match with the knowledge management, knowledge retention and sharing capabilities that CRM offers. This impacts CRM use negatively, creating reluctance on behalf of the individua l to use a system that transfers their core knowledge to an internal rival. It is this mismatch between culture and technology that is why many CRM projects fail. Such organisational cultures restrict CRMs knowledge sharing capability and discourage its use by workers (Van Bentum, 2005). Sub-cultures operating within departments or functions of the organisation are also seen to negatively hinder CRM use, often displaying resistance and an unwillingness to change and adapt to CRMs integration (Leverick, et al. 1998). In illustrating a more positive impact culture can have on CRM use, Van Bentum, (2005) advocates a communal culture based on openness, innovation and continuous learning. Here culture positively impacts CRM in the sense that it is embraced by organisational people with a clear customer orientation, who in turn seek to utilise its capabilities to the fullest in their day-to-day activities. It is this type of culture that retail sector organisations currently operating a m ercenary type culture, should move towards.Another ethnic aspect impacting CRM use is that organisational peoples belief system regarding CRM ease-of-use and usefulness can have a significant impact on its performance highlighted (Avlontis and Panagopoulous, 2005). If perceived useful and easy-to-use, CRM leads to performance improvements. Conversely, if perceived as not useful and difficult to use, CRM will have little impact on performance and on fulfilling its strategic objectives (Avlontis and Panagopoulous, 2005).The above cultural impacts on CRM use are indicative of a clear correlation between the type of organisational culture and IT performance (Davis, 1989 Avlontis and Panagopoulous, 2005). Literature indicates that retail organisations (particularly management spearheading/championing CRM) must nurture a communal CRM culture through an environment of teamwork, innovation, trust and a receptivity towards CRM technology in order to ensure its embracement throughout the or ganisation (Avlontis and Panagopoulous, 2005Van Bentum, 2005). an appropriate cultural foundation, is prerequisite to CRM success.SECTION 3 CONCLUSIONS RECOMMENDATIONSThis report has sought to examine CRMs impact on information use and strategy in the retail sector, revealing some of the reasons was as to why CRM projects fail and recommendations to capitalise on CRM potential. The reports main findings and recommendations are summarised below3.1 KEY FINDINGS1. CRM technology has significantly impacted the relationship between data, information and knowledge and their use in the retail industry. Data and information are now used as a source of competitive advantage. Knowledge is now seen as a resource through retention and sharing.2. Strategic alignment is a critical for CRM success.3. There are numerous barriers to successful CRM often attributable to a strategic misalignment (summarised in appendix figure 2).3.2 RECCOMENDATIONS1. A holistic perspective towards CRM implementation and strategic alignment between CRM and the organisations strategy, structure, individuals and culture is a critical for CRM success (Scott-Morton, 1991 Macredie, et al. 1998 Bull, 2003).2. A CRM strategy, outlining its strategic objectives and a clear plan for integrating it into the organisations business processes and systems are perquisites for any successful CRM implementation project.3. Understanding data needs and how the data will be used to extract information and elicit knowledge to increase profitability is critical.4. Organisational agility to adapt to contextual factors such as new CRM technology is essential. De-structural changes in specific departments such as implementing flatter structures, introducing cross-functional teams and lateral communication channels is more suited to unlocking CRM potential (Lorrimar, 1999 Mabey, Saloman and Storey, 2001).5. Organisational peoples role in how CRM is used is a major determinant of its success (McNally, 2007). Tailored rec ruitment and training programs to foster the right CRM competencies supported with an effective incentive system are critical (Avlontis and Panagopoulous, 2005).A communal organisational culture emphasising a strong customer orientation, teamwork, empowerment, communication, innovation, accurate expectations regarding system usage and a receptiveness towards new technology is crucial to elicit employee commitment to CRM (Van Bentum, 2005).APPENDIX* Open focussing on technical-requirements reather than on the business strategy and organisations needs (McLuhan, 2001 Ramsey, 2003)* Lack of cross functional coordination (McLuhan, 2001)* Failure to support monitor and evaluate CRM performance (McLuhan, 2001 Bull, 2003)* Failure to approach CRM implementation from a holistic approach (McLuhan, 2001 Bull, 2003)* An unreceptive organisational culture to technological change (Kotorov, 2003) and sub cultures displaying resistance and an unwillingness to change and adapt to how CRM fits into t heir working duties acts as a barrier to unlocking CRM potential (Leverick, et al. 1998)* An unwillingness to share information and knowledge as inhibiting CRM potential (Kotorov, 2003 Pavlovets, 2005)

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