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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.

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Introduction

´╗┐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.

Middle

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.

Conclusion

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.

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