Critically Evaluate Change at Marks & Spencer

Topics: Marketing, Customer service, Customer relationship management Pages: 16 (5311 words) Published: October 2, 2008
Marks and Spencer (M&S) p.l.c. is one of the largest retailers in the United Kingdom with a selling space of 12.5 million square feet, was established in 1884 as ‘Penny bazaar’. M&S sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. The company’s wholly own and franchise stores operates in Europe, Hong Kong, Far East, Australia, Middle East, the Bahamas and Bermuda making a total of 34 countries.

This report critically evaluates the changes at M&S from the mid 1980s to current day. Initially it assesses and outlines the macro and micro environmental factors. Under macro environment the substantial competitive growth is explained using internet technology and globalisation. Under micro environment Porter’s (1985) five-force analytical tools are investigated, the changing customer needs are verified, suppliers and retailers strategic partnership to face the competitor in the market are studied. Then the key organisational and strategic changes are evaluated from period to period. The cost cut, supplier’s relationship, marketing strategies and acquisition are analysed.

Subsequently the internal and the external factors influencing the decline of M&S’s are specified. Mainly the internal organizational conflicts because of Autocracy, small vision and bias because of patriarchy, negligence of competitor, discontent of customers because of poor service and product are subjected in the decline. However the emphasize on efficient marketing campaigns, customer focus, revamping of shops, customer satisfaction and fresh ideas on product are lighted for turnover. The future strategy is advised based upon internal and external factors where the stability of management team, redesigning business Process and Structure comes under internal factors and market Segmentation, Globalization and Localization comes under external factors. Finally after studying the environmental factors, to continue with the sustainable business M&S should keep phase with the customers.

List of Contents
List of Contents2
List of Figures2
1. Introduction3
2. Environment Analysis4
2.1. Macro Environment4
2.2. Micro Environment5
3. Key Organisational and Strategic Changes6
3.1. Employee Relationship7
3.2. Supplier’s Relationship8
3.3. Marketing Strategy9
4. Factors Cause the Decline of M&S10
4.1. Autocracy and patriarchy10
4.2. The Gradually Stronger Competitors10
4.3. Poor Products and Services11
5. Factors Cause the Rise of M&S12
5.1. Refreshment of Shops12
5.2. Improvement of Sales Service13
5.3. New Fresh Ideas13
5.4. Production Innovation14
6. Future Strategy15
6.1. Internal Strategies15
6.2. External Strategies16
7. Conclusion and Recommendation17
Appendix - Group Work Record20

List of Figures
Figure 1: GDP growth of the UK since 2002 4
Figure 2: Comparison of old structure and new ‘Flatter Structure’7
1. Introduction
History and Background
Michael Marks, a Russian immigrant established a “penny bazaar” at Kirkgate open market in Leeds in 1884. Ten years later, he invited Tom Spencer to join in his Penny bazaars, which created M&S's glorious milestone.

In 1903, M&S became a limited company that had thirty-six bazaars and shops. It continually grew and in 1926 the business floated on the London stock exchange as a public company. Its profits hit 1 million GBP for the first time in 1935 and by 1939 the number of stores rose to 234 (Bevan, 2002). In the late 1980s, the company became one of the UK’s leading retailers of fashion and food, with more than 300,000 shareholders (Whitehead, 1994). Moreover, M&S was the world’s most successful retailer in terms of sales per square meter in the early 1990s. This growth continued by 1997, breaking the 1,000 million pre-tax profits barrier. Thus, the company announced they were to spend 2,100 million GBP on global expansion plans.

Nevertheless, 1998 was catastrophic,...
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