Topics: Marketing, Retailing, Strategic management Pages: 9 (3093 words) Published: May 17, 2011
Marks & Spencer Group Plc is an international organization which doing business through Europe, North America and Asia. The located headquarter is in City of Westminster, London. The company sales clothing, footwear, gifts, house appliances, and food in over 600 stores in UK and over 300 stores across more than 40 countries in the world (Source online: Web1). The consumer’s confidence in the Marks and Spencer brand remains second to none By the way, the company can achieve many opportunities from global market and at the same time, they also need to build ability to face with many internal and external aspects which influence directly to the organization. In this report, I will use SWOT analysis to assess M&S’s market that can be look at the internal strength and weaknesses of the business, as well as external opportunities and threats in the marketplace. Also, I will use PESTE analysis to evaluate all the macro-environmental factors which affect company’s operation. SUMMARY

Macro environment factors affecting Business Marketing decision are variables of economic markets like, Marketing intermediaries, political stability (or instability), new technologies or natural forces inflation, rate of exchange, fiscal policies and monetary policies all of this fall under macro environment factors. They affect Marks and Spencer businesses, their marketing efforts and decision as well. The purpose of this report is to evaluate how M&S survives in the changeable market. Moreover, its concludes how macro- and micro-environment affect M&S to make its marketing plans and investigates the strengths, weaknesses, opportunities and threats of M&S. By analysing current situation Marks and Spencer will need revise it is marketing segmentation and divide it is product into different target market and serves consumers effectively This report critically analyses the impact of external and internal influences on the business strategies of Marks and Spencer (M&S) between 1996 and 2002, evaluates the factors, and modifies it is business strategies.

1.SWOT analysis
An Internal and External analysis in terms of strengths, weaknesses, opportunities and threats (SWOT) will evaluate the operating of where Marks & Spencer is currently in terms of strengths and which improvement is required within the business and what the outside environmental threats they might face as well as what new opportunities are achievable for the company in the short and long terms. Strengths Weaknesses

-High quality and diverse ranges of products
-Largest retailer in the United Kingdom by sales
-Strong cash flow position
-Increase turnover and trading profits
-Leading Premium Quality Food Retailer
-International and famous brand
-Good human resources
-Capabilities to turn resources into advantages
-Leadership in clothing converted into M&S becoming a market leader in department stores-Perception of high prices -Unfashionable clothing products
-Environmental issues: pollutions, energy waste...
-Poor substitute products
-Not much efficient e-commerce by selling products online
-Food offering has weak relevance and might not be able to sustain the competition - 20/20 plan will stretch the balance sheet amid weak return on invested capital with high debt and pension deficits M&S legacy stores and systems are a competitive disadvantage

-New entry products
-Market shift to globalisation
-Customers demand
-Diversification of products and markets
-Development of overseas supply chain
-Online channel continues to boom and will enable M&S to boost revenues. -New & existing competition -Volatility in price of raw products
-Differences in legislations from different host countries. -Economic recession and crisis since late of 2008 in Britain -Diverse culture need to adapt as international business
-Extremely high competition for customers and resources
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