Marks and Spencer: Internal and External Analysis

mark and Spencer Internal and External AnalysisMS is a great brand. It is one of the UKs leading retailers. The confederation operates in about 41 countries intercontinental with UK as its primary food market and employs about 76,000 people. MS deals in clothing, food, home, financial services and online services.To develop the suitable business strategy for its growth particularly guidance on Plan A, there have been discussed MS internal away purlieus. Strategic impact of external environment on MS has also been discussed. study challenges facing MS and competitive advantages of MS have been discussed. MS is a market attraction so that market leader strategy and suggestions have been given. doorThe study encompasses a report about the MS, to develop the strategy for its growth focusing on Plan A. Marks Spencer launched Plan A in January 2007, tantrum out 100 commitments to achieve in 5 years. The discussion has been described in detail about the core analysis of MS inter nal and external environment, SWOT analysis of MS has been included. Debenhams has been selected closest competitor of MS because they have a comparable product base. Strengths Weaknesses of DEB have been described.It also consists upon the current economicalal obstacles and the remedies to remove these obstacles.For this reason, books, newspapers, magazines, and websites have been consulted.LITERATURE REVIEWREFERENCES SOURCESBOOKS/NEWS PAPERS/JOURNALS,MAGAZINES DIGESTSBOOKS01. fundamentals of Marketing by William J. Stanton, Michael J.Etzel, Bruce J. Walker, 10th Edition, published and Printed inThe United States of America by McGraw-Hill, Inc.02. The New Encyclopaedia Britannica, 15th Edition, Volume 7,Published by Encyclopaedia Britannica, Inc. United States ofAmerica. British Library.NEWS PAPERSThe Guardian www.guardian.co.uk/JOURNALS,MAGAZINES DIGESTEuropean retail Digest The University of Manchester www.readinglists.manchester.ac.uk/Web Sitesweb.ebscohost.com (British Library)www.marksandspencer.com/http//corporate.marksandspencer.com/aboutus/company_overviewhttp//search.ebscohost.com/login.aspx?direct=truedb=bthAN=15053580site=ehost-livehttp//www.guardian.co.uk/business/marksspencer?INTCMP=SRCHhttp//plana.marksandspencer.com/media/pdf/planA-2010.pdfhttp//corporate.marksandspencer.com/msc arers/opportunities/shared_services_admin/ssa_hrwww.datamonitor.comhttp//www.businesst all(prenominal)er.org.uk/free-marketing-essays/marketing-retail-assignment/http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/Brief History of Marks SpencerMS is a major retailer of clothing. It is headquartered in London.MS started its business in 1884 as a stall in an open market in Leeds. Then known as Marks Penny Bazaar, it was the household goods, toy, and sheet-music business of Michael Marks, a Jewish refugee from Poland. In 1894 he started partnership with Thomas Spencer. Marks son Simon transformed the business from outdoor stalls to i ndoor shops. He purchased Brookes Br new(prenominal)s, the oldest U.S. clothing retailer in 1988 but sold it in 2001. (1)MS products, including food, clothing and household goods have been selling under the St. Michael brand name in most separate of the world.(2)The New Encyclopaedia Britannica, 15th Edition, Volume 7, Published by, Encyclopaedia Britannica, Inc. Printed in The United States of America. (British Library).Aldridge, Roger, Autumn1995, Growth Strategies A Case Study in world-wideisation. online. European sell Digest, Issue 8, p25-32, Available from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=15053580site=ehost-live), Accessed 15 frame 2011 0312 PM (British Library).Marks Spencer OverviewMS is one of the UKs leading retailers. MS offer stylish, high quality, great order clothing, home products and best quality foods. There are over 75,000 people running(a) at MS in the UK and abroad, and over 600 UK stores. MS is expanding its business globally.MS is the number one offer upr of womenswear in the UK, and is rapidly growing market share in menswear, kids wear, home, and online business.(Company Overview) Available from (http//corporate.marksandspencer.com/aboutus/company_overview)Accessed 11 April 2011 at 424 PM breed Chart for MS, March 2011-April 2011One Month Chart for MARKS SP.http//www.guardian.co.uk/business/marksspencer?INTCMP=SRCHAccessed 12 April 2011 at 0309 AM onlineSomething About Plan AMarks Spencer launched Plan A in January 2007, with aim to 100 commitments to achieve in 5 years. Marks Spencer has now extended Plan A to 180 commitments to achieve by 2015. The finish of it to become the worlds number one retailer. MS has now achieved 62 of its 100 Plan A commitments set in 2007. (1)Marks Spencers 7th annual report. Published in June 2010.http//plana.marksandspencer.com/media/pdf/planA-2010.pdf(Consulted on 20/03/2011)Analysis of MSs Internal purlieuMS is the market leader in clothing due its range and qual ity. Leadership in clothing converted MS into market leader in department stores.In this section, the discussion would be on the following key pointsFinancial Resources gay ResourcesCompany ImageLearning and developmentLocationProduction Facilities (1)Strengths WeaknessesFinancial ResourcesThe company earned 9,536.6 million profit during the financial yearended April 2010. (DATAMONITOR. 2010. Marks and Spencer Group plc. Available from www.datamonitor.comAccessed 22 March 2011.Human ResourcesIn this area MS has a number of teams, including Payroll, Pensions, Learning and HR Administration. MS also has a general recruitment team who manage all store and head office recruitment.(Human Resources. http//corporate.marksandspencer.com/mscareers/opportunities/shared_services_admin/ssa_hrAccessed 09 April 2011 at 0228 AM ).William J. Stanton, Michael J. Etzel, Bruce J. WalkerFundamentals of Marketing 10th edition, International edition (1994), Page 54, McGraw-Hill, Inc. United States of A merica.Company ImageMS is a top company for responsible business. Marks Spencer has been recognised as the top company in the UK for responsible business. MS was named Company of the Year 2006, at Business in the Communitys Awardsfor Excellence. (http//corporate.marksandspencer.com/documents/press_releases/pr/businessinthecommunity.pdf)Accessed 09 April 2011 at 0240 AMLearning DevelopmentMS provide in-depth training and performance coaching to the employees for their development.(http//corporate.marksandspencer.com/mscareers/learning_development) Accessed 09 April 2011LocationMS has over600 stores throughout the UK. MSs largest store is located at Marble Arch on Londons Oxford Street.http//corporate.marksandspencer.com/aboutus/where/uk_stores Accessed 09 April 2011Production FacilitiesMS is the worlds first retailer who is using palm oil in its products.This palm oil has been used in almost 1,000 MS food, beauty and home products each year.(http//corporate.marksandspencer.com/inve stors/press_releases/sustainablepalmoil)Accessed 09 April 2011 at 0348 AMStrengths Weaknesses of MSStrengths of MSMS has a strong market position in the clothing segment. MS leads the market in womenswear, lingerie and menswear and have an expanding childrenswear business. MS has been very successful in capturing its customers segment through its different product offer, in-store service and garment quality. Some other key points areReputation/BrandMarket positionQuality productsOnline shoppingWeaknesses of MSThe average shelf life for MS products is 3 to 5 days, compared with supermarket dry shelf products with 3 to 4 weeks shelf life. It is a high price for consumers. Cost-conscious people are much concerned about the price. MS stores have competitive prejudices as compared to Tesco. Tesco stores have been carefully designed with good store layouts. MS stores have not been carefully designed with good layout. This is a clear competitive disadvantage compared to Tesco. (1)Some o ther key points areSlow to diversifyLack of newnessClothing does not appeal to younger womens tasteAnalysis of MSs External EnvironmentIn this section the discussion would be on following key pointsThere are two levels of external environmentExternal Macro environmentExternal Micro environmentMarks Spencer Group, PLC SWOT Analysis Nov2010, p1-13, DATAMONITOR Marks and Spencer Group plc. Marks Spencer Group Company Report, Available from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=58451839site=ehost-live), Accessed 15 March 2011 0255 PM, British Library.In external macro environment, key points would bePeople frugal ConditionsCompetitors AnalysisSocial and cultural Aspects governmental and legal Aspects applied scienceIn external micro environment, key points would beThe marketSuppliersMarketing Intermediaries (1)And Opportunities Threats.External Macro EnvironmentPeopleThe first external environmental component part is population because the people make up the ma rkets. We know that MS is trying to fulfill the need, want and demand of its customers by their age groups, marital status, gents, ladies, kids, old time-worn people, and brand quality conscious people and to the higher number of home shopping or internet/online shopping.Economic ConditionsEconomic conditions or changes force play the score market size. MS has strong customer segment even in this challenging economic environment. MS has increased the share of the clothing market.(1) William J. Stanton, Michael J. Etzel, Bruce J. WalkerFundamentals of Marketing 10th edition, International edition (1994), Page 42,53,54 , McGraw-Hill, Inc. United States of America.Competitors AnalysisCompetitors of MS are many. Because MS sells a lot of different products. There is spacious list of its competitors, like, BHS, Debenhams, Derrys, House of Fraser, Sainsbury, Tesco, and Morrisons. But MS is best known for its clothes. So that I have selected Debenhams closest competitor of MS. This s election has been made because they have a comparable product base.Strengths of DebenhamsReputationGood product mix and brand selectionLatest designers better up-to-date with current trends.Attractive Advertisement.Weaknesses of DebenhamsInternationally, theyre not advantageously known as compared with MS. Theyre competing mainly in the domestic market. (1)Social and Cultural AspectsLife-styles, social values, beliefs have significant marketing implications and MS has capability to contest with change.Political Legal AspectsEvery company is influenced by the political and legal processes. These forces, such as, monetary and fiscal policies, social legislation and regulation, and governmental relationships with industries.TechnologyTechnological changes, change the business style.http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/, Accessed 11 April 2011.-External Micro EnvironmentThe Market, Suppliers and Marketing Intermediaries are also effect t he organization.Opportunities Threats of MSOpportunitiesExpansion abroad (India and China), and investment in other countries. (1)ThreatsDue to strong competition MS losses market share, especially in food sector. (http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/), Accessed 11 April 2011, at 1152 PMMajor Challenges approach the MSMS has made progress, but still face some challenges to meet the original2012 targets.Government has changed the rules for renewable electricity so MS is working in partnership with BRE/Pure to meet its commitments.Marks Spencer Group, PLC SWOT Analysis Nov2010, p1-13, DATAMONITOR Marks and Spencer Group plc. Marks Spencer Group Company Report, Available from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=58451839site=ehost-live), Accessed 15 March 2011, British Library.MS has a wide range of food and sales of food have continued to decline in the current economic climate. (1)External Environmental Strategi c Impact on MSThe retail industry is generally a very dynamic, fast changing sector. Companies have to be keeping themselves to aware about the market, to know any new trend and they have to keep up with the customers increasing expectations and changing tastes.Nowadays, it is becoming to a greater extent and more difficult and challenging to keep the customer satisfied and loyal customers preferences change quickly.Above mentioned analysis of external environment of MS has a strong effect on it. MS is among the top 6 UK retailers. External issues have the strategic impact on MS asFast changing Market Economic conditions.Consumers change of taste.Marks Spencers 7th annual report. Published in June 2010.http//plana.marksandspencer.com/media/pdf/planA-2010.pdfAccessed 12 April 2011 at 333 PMSlow economy.Increased competition from locally and from outside(prenominal) companies. (1)Competitive Advantages of MS and How MS will achieve itMS is the market leader both in clothing and de partment stores. Reputation and brand of MS is globally recognised. Internationally, DEB is not well known as compared with MS. DEB is competing mainly in the domestic market.MS regularly checks the salaries against other retailers to make sure as shooting that it is competitive. For this reason MS continuously reviews the basic pay every year. MS also offer extra performance rewards to recognise individual achievement. (2)MS is continuously offering these rewards benefitsCompetitive Salary, Bonus Scheme, Holidays, Employee discount, Pension Plan, Additional benefits (like discounted gym membership, savings on tickets for amusement parks, joining fees for health clubs and reductions at a variety of UK spend resorts.). (3)(1). http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/, Accessed 12 April 2011 at 500PM.(2)(http//corporate.marksandspencer.com/mscareers/rewards_benefits), Accessed 12 April 2011 at 1143 PM.(3) (http//corporate.marksandspencer. com/mscareers/opportunities/trainee_management_scheme/trainee_benefits_rewards), Accessed 13 April 2011 at 1227 AM.NEED OF STRATEGY FOR THE GROWTH OF MSNeed of developing the strategy for the growth of MS focusing on Plan A is to make moves, plans and strategies for expanding the market or enlarging the share of existing market and keeping them secure.It helps an organization better cope with the changes that occur in market place from time to time.MS is a market leader in retail industry and under mentioned are the suitable business strategies for the MS.Market Leader StrategyThe company has the largest market share in the relevant products market. The market leader should look for new users, new uses, and more usage of its products. MS moldiness defend its market share market segment.SUGGESTIONSDistinctive CompetenceMS must determine its distinctive competence over its competitors. So that it can made strengths over them. Distinctive competence may exist in the form of utter cost of production competence.Mass production competence.Access to cheap sources of raw material.Product quality variety.Financial Technological competence.Capability to cope with change.An organizations capability to cope with change is a very good strong point. MS must continue with the market changes with better marketing policies and effective functional programmes.Name forceSubject Index..