A Business Study Report On Marks & Spencers Plc.
STUDENT ID: 3583591
Submission Date: 20 June 2011
Word Count: 2096(Without References & Appendix)
This document/report throws light on the business environment of Marks and Spencers and the analysis of strategic position, strategic direction, success criteria and backed up by future recommendations for the company based on all the mentioned aspects. The frameworks used to analyse the company are: PESTEL Analysis.
Porter’s Five Forces.
Porter’s generic Strategy.
Bowman’s strategy clock.
Table of Contents
Sr. No. :| Contents| Page no.|
1| Introduction/Background| 4|
2| Strategic Position| 5-7|
3| Strategic Direction| 8-11|
4| Success Criteria| 12|
5| Recommendations| 13|
6| Conclusion| 14|
7| References| 15|
8| Appendix| 16-25|
The aim of this report is to analyse the Strategic position (Internal and External Environment) , the Strategic direction ,the Current strategy and the Success Criteria of Marks & Spencers Plc. And how they are managing and sustaining in this retail industry. Based on the analysis, I tried to draw some relevant conclusions and recommendations for Marks & Spencers for future. Background of M&S
Marks and Spencers Plc is one of the Uk’s leading retailers and claim to have over 21 million people visiting their stores each week. It specializes in stylish, high quality clothing,home products, good quality food with around 2,000 suppliers worldwide.It employs around 75,000 people all over and has 700 stores in UK and expanding internationally with 300 stores in more than 40 countries. Its store in Marble arch London is in the Guiness Book of World records as the store that takes in more revenue per square foot than any other in the world.They are the number one providers on womenswear and lingerie in UK and are still growing their market share in kidswear,menswear and home accessories. Their clothing and homeware sales account for 49% and remaining 51% of their business is in food, where they deal in everything from fresh produce and groceries, to partly-prepared meals and ready meals.They hold around 11%(Annual Report April 2011) share in the UK clothing market They are also known for their green credentials as a result of their step towards a five-year eco plan, Plan A, which will see them, amongst other things, become carbon neutral and send no waste to landfill by 2012. (Marks & Spencers-Company overview 2011)
I have used different frameworks and models that I came across during my course to analyse Marks & Spencers which include Pestel Analysis,Porter’s five forces, Stakeholder mapping,Swot Analysis, Ansoff Matrix,BCG Matrix,Bowman’s strategy clock.
2. Strategic Position of M&S|
In order to understand the environment in which a company works, we have to analyse the impact or effect of external and internal factors on it. To determine the strategic position of a M&S I analysed its external environment (Macro and Micro) and Internal environment too. External environment:
To analyse the internal and external environment of Marks and Spencers Plc., I’ve used and applied the frameworks which helped in determining its strategic position.I’ve used PESTEL Analysis to analyse the Macro-environment of M&S(Appendix 1) and Porter’s Five Forces model(Appendix 2) for Micro-environment. Applying PESTEL helped me understand the factors like Political,Economic,Socio-cultural,Technological,Environmental and Legal factors which affect the performance of M&S.Some of the key points that I found out after carrying out PESTEL analysis on M&S are highlighted below and their description can be found in Appendix 1:
P Free Trade policy and European integration.
EThreats due to recession,Currency...