• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

M&S case study. From this analysis, strategic options for M&S will be recommended with analyzing the pros and cons of each strategy and compatible ability to M&S capability and capacity.

Extracts from this document...


´╗┐Mark & Spencer Case Study Marks & Spencer Case Study 4/27/2012 ________________ Table of Contents Introduction Company Background/ Capability and Capacity External Analysis Stakeholders PESTLE Analysis of M&S Political factors Economic factors Social factors Technology Legal factors Environment SWOT Analysis Portfolio Matrices BCG Matrix Ansoff Matrix Porter?s Generic Strategy Strategy Recommendations Takeover Mergers & Acquisitions Business Alliance Conclusion References Introduction Marks & Spencer Plc. (M&S) is popular as the largest clothing retailer in UK with 885 stores in 40 geographic locations (Gerry J., Richard W. & Kevan S. 2011). Established in the late 1880s with family-style operation management, M&S has achieved many achievements in occupying the large market share in clothing sectors and becoming familiar brand name with older people segmentation. Furthermore, M&S brand name is also recognized with high quality products. However, M&S faced many financial and business problems during period between 1999 and 2006 when the sales and market share decreased despite of many new product lines launched, good services to customers and investors were unhappy with falling share price. In 2006, new CEO Sir Stuart Rose saved M&S from the recession and launched a recovery campaign with more effective strategies and clearer plans. Unfortunately, he seemed to be on the same path of previous CEO as M&S?s sales and market share fell dramatically again, which pose much challenge for incoming CEO, Mark Bolland, who officially took the position from 2010. This paper will study Mark & Spencer from a strategic and change management perspective. We will examine challenges that new CEO must face through internal and external analysis. From this analysis, strategic options for M&S will be recommended with analyzing the pros and cons of each strategy and compatible ability to M&S capability and capacity. ...read more.


It could be big challenge for Mark Bolland to recover M&S from declining net profit and sales revenue. Social factors The trend of clothing is always changing fast. Therefore, M&S needs to update the trend frequently to satisfy customers and compete to competitors in this industry. What is more, focusing on customers over 30 year olds, M&S must concentrate on providing clothes made from good fabric, smart cut and other high qualified materials (Modernwomenworld 2011). Technology At this modern age, advertisement is the most effective means to get loyalty of existing customers and attract new customers. As a result, the content of adverts should be invested and M&S must use innovative means to bring the brand name to customers and maintain relationship with existing customers by offering vouchers, promotion campaigns, updating their point in their loyal card. Furthermore, convenience is the most consideration to shoppers. Therefore, self-service machine maintenance and effective distribution channel could satisfy customers. Legal factors Most of legislation affecting M&S operation relates to taxation, new regulation relating to Health and Safety for consumers because M&S provide foods product. For example, M&S must follow with the regulation for standard packaging to ensure to use safe containers for foods. Environment Similar to other companies, M&S is under pressure for eco-friendly materials and process of manufacturing which are promoted daily on television, newspaper with protecting environment purpose. Therefore, they must be careful with every action in production. SWOT Analysis Strengths 1. Good reputation as leading retailer in UK 2. Strong brand name recognition with effective advert with monopolistic celebrities; customers could recognize easily advertisement of M&S when see those celebrities 3. ...read more.


The operational level strategy will be conducted effectively. According to Sarah S. (2011), M&S had a good year with rising market share by recruiting an experienced executive staff from Tesco for more advice with international operation. It is a good signal and good example of changing organizational culture. Continuing with the use of franchising in international market is a sufficient mean to not only expand market, introduce M&S brand name over the world, but also to control the brand name and core business better. M&S could also effectively and efficiently take advantage of their capacity and capability to maximize the profits. Furthermore, with business alliance, M&S could develop innovation with win-win situation and use it as means to widening market all over the world. Conclusion By analysing external factors and M&S?s capability and capacity, M&S totally has all factors to be a leading retailer in UK. With 800 stores in UK with high qualified products and service, M&S could completely satisfy customers in food and clothes with five cores which are quality, value, service, innovation and trust. The main issues for M&S is working culture and market segmentation focusing on customers choosing differentiation not cheap products and failure in achieving clothing for 30+ year-old market. M&S has taken many strategies and their profit has been fluctuated during many years. However, with new CEO, Mark Bolland, there is a hope that M&S?s profit could be increased. There are some strategies recommended for M&S with analyzing pros and cons of each strategy to get along with their objectives. It is found that takeover seems to be good strategy and suitable for capacity and capability of M&S which assists M&S could get highest achievement in both domestic and international market. Based on this, there is hope for brighter future for M&S next years. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Marks & Spencer China

    Thus suppliers may choose to select only the local retailers (seen their impressive number). Regarding Carrefour, there is no real threat because with a high purchasing power, it is too important for suppliers. Especially since the Chinese appreciates foreign retailers.

  2. General Electric Strategic Plan

    Organic revenue growth was 9%, surpassing our goal of growing at 2 to 3 times GDP growth. Earnings per share (EPS) from continuing operations grew 18%, well above our double-digit goal. Our operating profit margin grew 70 basis points, below our 100-basis-point goal, but we made good progress.

  1. Jollibee case study

    He hired 32 employees in his division to help each franchise store in different countries, in order to find out what the local customer needs and what is their preference. Kitchner felt that Jollibee needed to present itself as "world Class, not "local" (Bartlett & Connell, 1998).

  2. A Case Analysis: Starbucks Growth Destroyed Brand Value?

    recent performance, vote on some business proposals and ask some questions they have in mind with answers given. - Business networking with stakeholders could be formed through Internet by the Starbucks Digital Network. The Starbucks Digital Network, in partnership with Yahoo!, The Economist, ESPN Insider and other websites yet to

  1. Nestle stakeholders analysis

    Moreover, the company will provide technical assistance to coffee growers so that they can provide better quality and have higher income About labor at the factory the company will cooperate with Vietnamese Ministry of Labor to learn about the workforce in Vietnam or the company will cooperate with the local

  2. Entrepreneurship Case Study - Bill Gates.

    I don't mean to discount intelligence. I value it highly, and it is essential to many kinds of success. But even when intelligence appears to be the reason for a success, hard work probably had a lot to do with it, too.

  1. We will perform a SWOT Analysis to determine Ben & Jerrys strengths, weaknesses, opportunities, ...

    Shifting focus away from important business matters and not being able to capitalize on new markets if they do not fit in with their social beliefs 2. Adding unnecessary costs; the money spent on social issues may be better invested in a strategic management team Opportunities 1.

  2. Billabong Case Study. This report provides an analysis of Billabongs current situation and both ...

    It affects people's spending, shopping patterns and behaviour. For an international retailer like Billabong who is distributed in over 100 countries evaluating the economic status in each of these countries is highly important. - Rising levels of living costs and decreased consumer income The Australian retail market is under a

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work