The company is employing approximately 80000 people in 2020. Iceland is offering wide and best range of food products. Companies next have to organize the process of development. New technology can also be used to identify the new fashion in and trend change in different parts of the world. The external environment analysis pays attention to the factors affecting the company and is often referred to as the macro environment. Conducting surveys on website is very good technique to get the customers feedback and understanding their demands. External Forces Marks and Spencer has many external forces that affect the company. In other words, the Organization operates an online suggestion box, which it uses to improve its services (Bodnar & Cohen 2012). For this reason, these ranges cater to different needs of the customers. The company will follow the same pricing strategy by highlighting its off-prices on different platforms. Responsible sourcing and human rights are fundamental in allowing individuals to lead a dignified and independent life, free from abuse and violation. Giant Hypermarket also popularly known as Giant is a subsidiary of Dairy Farm International. Introduction of products is only possible with best marketing and advertising approaches. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. The approach does not encourage the mixing of friendship or family issues with Organizational business. The paper concludes by presenting the final strategic position of Marks & Spencer using the SPACE analysis and providing recommendations for future growth. It also operates a website where it posts business information for access by potential customers (M&S: student information 2010). M&S has to change its behaviour of slow response to consumers changing needs and preferences. However, that does not mean that it has neglected the other segments such as low-income earners. Marks and Spencer (M&S) has a tough and competitive external environment. Our store rotation programme is about making sure we have the right stores, in the right place, with the right space and we're aiming to rotate from the 247 stores we have today to . The report presents an interesting business case and competitive analysis for M&S which illustrates that only an educated business strategy for implementing market segmentation, bolstering online presence and reducing reliance on UK market will help M&S overcome its present challenges and tread on a trajectory of growth and success. Lunden, I 2012, Amazon offers amazon pages for brands to customize with their own urls, and amazon posts for social media marketing, Web. IvyPanda. M&S operates in highly competitive environment and its competitors are more customer oriented and in tune of the customer needs and market demands. According to Mr. Robert Swannell, who is the Chairman, the Organization is currently better positioned than it was three years ago. Recycling is the most important part in Plan A. M&S sells the products of high standards to its customers. Also, the forecast for the British economy does not always remain constant, leaving the future unknown., Talk of a consumer downturn has resonated about the City and government in recent weeks. Human resources can be source of competitive advantage. In an effort to increase audiences for various advertisements, Twitter has a tailored audience feature that enables those with email addresses to get updates from Twitter via their e-mail addresses. Environmental analysis To make the analysis of external environment of Marks and Spencer, this report will cover two key model that are PESTLE and Porter's five forces. For example, low-income earners are motivated by the following: On the other hand, the high-income earners, who consider themselves as the affluent are motivated by the following factors: The youth are motivated by the following factors: Currently, M&Ss focus is on women with high-income. IvyPanda. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. It did not represent the modern womans taste for a more casual look. Over the last three years, the following are some of the Organizations statistics: According to the projections by the chairman of M&S, the Organization expects to realize the following over the next three years: Some of the factors in the retail environment which have affected the performance of M&S include increased cost of promotions and production, efficient supply chains, inflation, the decline in general merchandise sales, and effective management of promotions (M&S: From transformation to delivery 2014). One of the interesting features of google+ is YouTube. These techniques show the strengths and weaknesses of the organization and as well as their opportunities and threats that are possible to the business in order to form an effective developed strategic plan during the process of operation. All work is written to order. M&S should add one more thing to their strategy and that is modern. M&S can achieve better competitive advantage through managing the people at work in other words utilising human resources. Public spending cut is another political decision that is a big hurdle in the business growth too. Quality and care are at the heart of everything we do especially when it comes to making our products. The above positioning statement does not fit with all the targeted audience. Marks and Spencer, does benefit from expanding its business internationally. Employees are selected not on the basis of friendship, but on merit and qualification. M&S will also clarify the position of its sub-brands, moving them from labels to real brands, According to him In Food, M&S will gain a clear market position as a specialist high-quality retailer, inspiring customers with unrivalled quality and innovation. Customer Assistant (Customer Interaction), To join M&S workforce, company offers the. Funding it will require M&S to release development value that exists in some of its older sites across the UK. Marks & Spencer's An analysis on HRM 2. Whereas, it is estimated that each week, the number of people who visit M&S is more than 21 million all around the UK (Company Overview | MarksandSpencer.com). M&Ss e-business model is focused on marketing and sales (Strinfellow 2010). The retailer focuses mainly on manufacturing of the clothes, furnishings and homeware accessories, luxurious food. The psychological aspect has to do with the mental interpretation of various products by customers in terms of what the products mean to them (Lunden 2012). Employees are considered essential assets by all Organizations. M&S is using less packaging and less bags to save environment and natural resources. It is associated with lifestyle and Retail since it operates in the retail sector. Even though focusing on specific segments may enable the Organization to make huge profits within a short period of time, it may not be sustainable in the long-term. Most of them are pensioners and upper class people would like to pay a lot for their clothes and food. Therefore, Tesco's business success indicates that effective operations strategies have played a vital part in supporting and driving its whole business objectives which is "to create value for customers to earn their lifetime loyalty"., The following report analyzes marketing and financial performances of John Lewis PLC. M&S provides colleagues in the UK and overseas with a safe and healthy working environment. M&S operates in dynamic social, political, and economic environments. No plagiarism, guaranteed! Smith, P.A & Cockburn, T 2013, Dynamic leadership models for global business : enhancing digitally connected environments, Business Science Reference, Hershey, PA. Stanford, N 2007, Guide to Organization design: creating high performance and adaptable enterprises, The economist Newspaper Ltd., New York, NY. Leat, M 2012, Exploring employee relations, Routledge, London. The other reason is that M&S derives most of its profits from selling expensive clothes, especially to middle-aged men and women with high-income. For Mark & Spencer that is offering multiple product range with its quality, approachable range for customers, it is not always easy to maintain a competitive advantage at all the time. One of the most effective ways that the Marks & Spencer brand has evolved to adopt new ideas of "value" in the modern world, is with their "Plan A" strategy. The penny bazaars were a huge success . 1997 - European Management Journal. (2011). To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! 2021, ivypanda.com/essays/marks-amp-spencer-companys-marketing-environment/. ' Evidence to support this quote comes in the form of Marks and Spencer . This is the age of fashion and modernisation. Marks & Spencer as such then is challenged by this trend particularly from rival discount and supermarket competitors., Marks & Spencer: Competitive Advanteges and Future Stragegies. M&S Quarterly and Annual Revenue Trailing 12-Months Trend (TTM) Annual Revenue $14.3B M&S's revenue is the ranked 3rd among it's top 10 competitors. Reinventing strategic management: New theory and practice for competence-based competition. But it can help in making appropriate business decisions as management will be aware of all the advantages as well as difficulties that lies in incorporating specific changes. Marks and spencer 1. As a result, it is important for Organizations to ensure that they have elaborate communication strategies to reach their customers effectively. At M&S, we know there is no Plan B when it comes to our planet. This is primarily as a result of the concentrated power of larger retailers such as Marks & Spencer. The Organizations positioning initiatives are likely to remain the same over the next 12 months. M&S competitors are specialised in niche markets and consumers' focus which make them to provide a much better consumers satisfaction. The Organizations strengths and internal resources can be summarised as shown below: Some of the key issues which the marketing department of the Organization must address over the next 3 years are as follows: M&Ss overall objective is to become a global leader in the retail industry over the next decade. This feature enables the company to store videos and pictures of various products. Annual review and summary. M&S News See all articles Today 5:36 AM 1. The discussion has been described in detail about the core analysis of M&S' internal and external environment, SWOT analysis of M&S has been included. Social The last three years have been useful for the Organization because it has developed a strong foundation for the growth of its business. . (Drummond and Ensor, Strategic Marketing Management, p. 149, Butterworth Heinemann) Marks & Spencer is a perfect example of a company that had a successful strategy but failed to adapt to the changing environment and have therefore suffered from strategic wear-out. 1. It can also be both costly and disastrous if you arent up to par with others in your particular business or industry. Marks and Spencer Marketing Mix: Marks and Spencer, commonly called M&S, is a public limited company of British origin. Through differentiation and positioning, the Organization plans to become a global leader in the retail industry. Strinfellow, A 2010, About flat Organization structure, Web. We listen to our customers, colleagues, and local stakeholders to make sure we understand their changing needs and support the communities we serve. M&S trades in clothing, ready meals, bakery, and households. Socio-cultural environment One prime issue as a result of globalisation is that there are more and more retailers sourcing globally aiming to provide competitive prices and quality products in the market. Marks & Spencer's main products and services are clothes, food and edible items, and home products. The employee market sector has various segments. Managing Supply Chain Management: Coles/Woolworths vs. The initiative has been praised for enabling M&S to achieve some milestones, especially increasing customer satisfaction. The retailer said eight 'full-line' shops selling food, clothing and . M&S can gain competitive advantage through producing different products and services from those of its competitors. Now M&S has to figure out the new fashion and customer taste. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. As the students are the most valued customers due to frequent money spenders, Primark attracting them by officering cheap and fashionable clothes. Moreover, according to Business Engine, Inc. (2006), it reports that close control of internal resources and diligent monitoring of all expenditures are also the critical aspects for Tesco to maintain its leading position in the market. Worldwide in terms of profit it is considered as third leading retailer and in terms of revenue it is regarded to be the ninth leading retailer. Furthermore, hiring young motivated staff in addition to experienced staff would increase M&S competences in terms of innovation. New media technologies can be used for efficient delivery of new taste and fashion trends from factory to store displays, better communication with designers, producers and suppliers is very important for the company, Zara is one of the fast market changing competitors of M&S, it is important that M&S be ahead of any of its competitors while keeping its classic touch of style in some range of products. The company has good relationship with employees. Marks & Spencer is one of the UK's leading retailers with over 21 million people visiting their stores each week. This is IvyPanda's free database of academic paper samples. The objectives of the study is to advise the Board of Directors into a possibility to revisit and redesign the current business strategy based on the blue ocean strategy (Kim and Mauborgne, 2005) to provide value based innovation via cost reduction with increased value for buyers and to ensure sustainable business operation in Malaysia. Over the last 3 years, the marketing environment for M&S has had a mixture of fortunes and misfortunes. As a result, the closure of the division due to poor performance is not the best solution to deal with the problem. Some of the M&Ss products need to be redesigned according to customers demand. Due to its good reputation in online marketing, Amazon.com is the leading online retail company in the globe. A positioning statement for M&S would be to improve customer service through excellent relationships with suppliers. We know its our people who make M&S successful. M&S targets various segments of customers such as the youth, low-income earners, high-income earners, and the elderly. The Organization has a Facebook page where it posts information about what it does, the kind of services and products it deals with, its uniqueness, and how customers may get its products and services. Today, we'll discuss the swot analysis of Marks and Spencer. As M&S has more almost 800 stores throughout . We're here to answer any questions you have about our services. M&S also enjoys a friendly social environment in all the countries where it operates. Coles service has more than 18 million transactions each week. Gattorna, J 2009, Dynamic supply chain alignment : a new business model for peak performance in enterprise supply chains across all geographies, Gower Pub, Burlington, VT. Harman, W 2014, 5 google+ tips to improve your networking, Web. This has yet to be addressed by academics, especially in relation to the notable growth in environmental concern at this time. (2021) 'Marks & Spencer Company's Marketing Environment'. As well as that, M&S can hire trained staff from its competitors in order to gain business knowledge from a different perspective. To have a skilful workforce, M&S could begin training programs. The Organization, therefore, needs come up with strategies which would boost customers confidence in its clothe-ware. These products actually attract the customers and helpful in gaining competitive advantage. However, the retail company's top competitors are Waitrose & Partners, Next, TESCO, ASDA, Aldi UK, John Lewis Partnership, Macy's, Walmart, and Debenhams. Due to its huge popularity, Amazon.com is capable of building brands for different products from different companies (Lunden 2012). Dahlen, M & Lange, F 2008, Marketing communications, John Wiley, Hoboken, N.J. Ferrell, O.C & Hartline, M 2010, Marketing strategy, Cengage Learning, Farmington. It is remarkable that M&S promotes its website in-store to the people that are not aiming to shop initially but later they might wish to browse the website and become valuable customers. M&S uses email for advertisement purposes. Do you have a 2:1 degree or higher? The initiative has been restructured to reflect the Organizations new four pillars namely below: This initiative is highly valuable to consumers. Following the standards of environment and quality, Coutaulds textiles have become one of the successful textile organizations. The second most important thing is price control. At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position. M&S should enter this market segment either by starting new business or by acquiring another company such as Next who is well known for stylish clothes for children and younger aged consumers. Strategic business plans are set by considering the growth rate of the industry and current situation of the business. M&S: 2015 A year in preview for sustainable business 2015, Web. Keep up to date with all the latest news from M&S. In order for M&S to boost the perceived value of its products and services without changing its products and services, it needs to invest more in marketing, especially through the promotion of its products using different marketing platforms. M&S is very sensitive to technological, social and economic factors. Scanning and monitoring the general environment are activities they cannot afford to ignore. "Marks & Spencer Company's Marketing Environment." These are known as macro environmental factors. M&S in a western world is a managerial giant (Drucker, 1974). When people like the page they are able to access the Organizations business information such as services offered, physical addresses, the Organizations mission and vision among other information. Operates a website where it operates this has yet to be redesigned to! Million transactions each week S operates in the business to technological, social economic... 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