Premium Essay

Company Analysis -M&S

In: Business and Management

Submitted By carys
Words 1305
Pages 6
Introduction

Marks and Spencer was described by Tse (1985) to be “ widely recognised as one of the best managed companies in Europe ”. Since the end of the 1990s, they have suffered some serious problems. However, now they are still one of the most successful retailers in the UK, which specialize in clothing, foods and homewares. The company, employing over 81,000 people, headquarters in London. They have more than 700 UK stores and almost 400 international stores across the world. In 2012, the company had an increase in revenues of 2% to £9.9billion. (Marks & Spencer Group
2012) This essay will carry out a company analysis by firstly presenting the key development of M&S and then a SWOT analysis. Finally, several recommendations will be made.

Key development

M&S was found in 1894 by Michael Marks and Tom Spencer in Leeds. Due to innovative management approaches and quality products, the company expanded quickly and became a public limited company in 1926. By the 1980s, it had been the largest retailer in Britain with more than 260 stores. However, by 1990s, the company had been facing fierce competition, and also its market share in clothing and food dropped dramatically. Moreover, its rigid and out-of-touch management brought M&S into a dangerous situation by the end of 1990s. Its share price tumbled by 4 times from over £0.800 to £0.2 per share in the period between 1998 and 2002. (Yahoo! Finance, 2012)

Strengths

After experiencing a difficult time, M&S remains as one of the largest clothing retailers in the UK with more than 10% market share in both womenswear and menswear. (Marks & Spencer Group 2012) This strong customer base may be brought buy its superior in-store services and quality clothing. According to the Institute of Customer Service (2011), M&S ranked second for UK Customer Satisfaction Index in non-food retail sector.…...

Similar Documents

Premium Essay

M&S Marketing Strategy

... Chapter 1: Project Objectives and Overall Research Approach 1.1 Introduction 1.2 Reasons for choosing the company 1.3 Reasons for choosing the project topic 1.4 Project objectives 1.5 Research questions 1.6 Research approach Chapter 2: Information Gathering and Accounting/ Business Techniques 2.1 Methods used for information gathering 2.2 Sources of information 2.3 Limitation of information gathering 2.4 Explanation of the business and/ or marketing techniques used Chapter 3: Analysis, Conclusions and Recommendations 3.1 Analysis and evaluation using SWOT, PESTEL, Porter’s Five Forces, and Marketing Mix 3.2 Conclusions and Recommendations Chapter 1: Project Objectives and Overall Research Approach Introduction M&S - Marks and Spencer plc, one of the UK’s leading retailers, started life more than 125 years ago. It was founded as a bazaar by Michael Marks using a slogan of ‘Don’t ask the price, it’s a penny’, it soon became very successful. Because of its fast growing, Michael wanted someone’s help to manage the growth; he went into partnership with Thomas Spencer in 1894 and built around the five key principles of Quality, Value, Service, Innovation and Trust. M&S was growing and innovating between 1900 and 1920 as living conditions were improving, it bought up a number of competitors and became a public company selling biscuits, mending wools, pins, combs and socks; it offered cheap, simple and friendly shopping to......

Words: 773 - Pages: 4

Premium Essay

Swot Analysis for M&S

.... SWOT Analysis Strengths • M&S were eminent for their meticulousness regarding supplier control, stock and store layout • The victory of M&S under Simon Marks was frequently credited his grasping of client inclination and movements • Provide most noteworthy principles of value • Suppliers use the most current and effective processing procedures Weaknesses • Stocked generic clothing range with wide appeal to the public: buyers often had to make choices, which would outlast the fashion and trends seen in other high street retailers • This lagging behind in case of introducing up-to-dated fashionable clothing to keep pace with the environment actually made them vulnerable to their competitors • They always used British suppliers believing that it would give them highest quality with low costs but actually sometimes made them weak to challenge its competitors Some competitors are using overseas suppliers to keep the costs down Opportunities To survive in today’s world globalization is important. M&S have a wide opportunity to go more global to improve and expand its business They also have the opportunity to consider more overseas supplier which will actually give them cost advantage, rather than suppliers available on a local level. They also have the opportunity to maximize the use of available technology to improve their functioning and to gain competitive advantage. Threats They are in strong competition with Gap, Oasis......

Words: 517 - Pages: 3

Premium Essay

The Management of M&S

...managed and admired businesses in the world’ (Mellahi et al 2002). The company had enjoyed a great success in the retail sector. Marks and Spencer commenced its business activity in Leeds in the late 19th century, as a family-run shop, with strong values. Since then and for many years after, it became popular for its alternative way of business, in comparison to other British retailers (Mellahi et al 2002). It established a good relationship with customers based on loyalty and trust. The firm also gained high respect from the British people; it was considered the biggest corporate charity donor within the UK (Mellahi et al 2002). Not only consumers, but staff and shareholders could share this great success. According to Wallop (2012) the company has been the most important British clothing retailer for decades, and also the first retailer in the UK to publish annual profits of £ 1bn. Lately Marks and Spencer has undergone a difficult period. The latest management changes have once again disrupted stability. In July 2012, M&S announced widespread changes across the company, including a new head of general merchandise, style director and a new head of food. A number of external and internal factors explain these changes. External Factors Consumer spending & Competition External factors can be described as things affecting the company beyond its control. Firstly, the retail industry in which M&S operates has weakened as a result of low consumer spending.......

Words: 1312 - Pages: 6

Premium Essay

M and S Essay

...& M&S Financial Analysis and Annual Reports I. Company Background The first M&S store was originally only a market stall in Kirkgate Market, Leeds, which was started by Michael Marks in 1884 (Timeline, 2012). But the continuing success of the penny section led to a partnership with Tom Spencer in September of 1894 (Timeline, 2012). The new company was based on the principle of quality, value, service, innovation and trust (Timeline, 2012). M&S’s main business was primarily on the sale of food products but during 1920 to 1940 the company had expanded into clothing with one of its most popular product, the underwear (Timeline, 2012). The current M&S developed a strategy that aims to become an international, multi-channel retailer which was initially set out by Marc Bolland in November, 2010 (2012, 2012, p.2). The strategy was to enhance the brand by developing the clothing, home and food offerings while improving the store design to make it easier to shop (2012, 2012, p.8). The strategy also includes the development and expansion of the multi-channel distribution along with the commitment to deliver consistent returns to its shareholders (2012, 2012, p.2). The strategy was further divided into the three revenue segments which are clothing & home, multi-channel and international (2012, 2012, p.ii). The clothing & home segment is composed of Food and General Merchandise which includes clothing and home products (2012, 2012, p.ii). The clothing segment was further divided......

Words: 3555 - Pages: 15

Free Essay

M&S Analysis

...Introduction I chose topic 8 because analysis and interpretation of business and financial performance has interested me and I want to learn more about and it is the topic I feel most comfortable with having completed my ACCA studies. Writing reports and analysing business performance was covered in papers F7 and P3 and through this report I will have the opportunity to enforce practically the knowledge acquired. Moreover undertaking this research project will improve my performance at work and enhance my professional and communication skills. I work in accountancy practice and this project will be invaluable experience. I decide to write a research project on Marks & Spencer plc. and the reason being is that I had carried out an investigation on this company before and I have preliminary knowledge on its activities and the sector in which operates. Marks & Spencer is well known and reputable retailer which I personally favour as a customer. Marks and Spencer Group plc. is an international multi-channel retailer with headquarters in London, in the City of Westminster .It carries out the retailing of apparel, home products and food items. It was started as a Penny Bazar 1884 in Leeds selling only British made goods (Enc. Britannica,2004) As of 30 March 2013 the Company’s product were sold through 766 UK stores and 418 stores internationally (www.marksandspencer.com, 2013) 1.1.2 The reason for choosing the John Lewis Plc. as the comparator company John Lewis......

Words: 2277 - Pages: 10

Premium Essay

M&S Report Strategy

...Introduction To be continue to the second part, in this report I present about the Strategic position for Marks & Spencer Company in UK clothing industry. First of all, I summarise the external environment of M&S. According to the portfolio, there are three factors that have influences in UK clothing industry: new entrants, suppliers and rivalry. In terms of future trends, the corporation tax decrease and the inflation rate remain are the signals of the recovery of UK economy, hence customers will focus on their needs and they are willing to pay. Next, the majority of UK population is 41.2% of people from 25 to 54 years old. Besides, eco system is a new trend for clothing retailers when both the government and the retailers want to protect the environment and customers. Last but not least, the development of technology creates a new buying behaviour. Therefore, almost all of clothing retailers have to develop their online shopping. Factors and trends of UK clothing industry lead to the result that the market is attractive for both existing retailers and new entrants to have profit. In terms of internal environment, Marks and Spencer has their own distinctive advantages that are valuable, rare, inimitable and non-substitutable. According to Marc Bolland, Marks and Spencer is 130 years brand name and that is the reason for trustworthy brand, employee loyalty and special culture. The fourth advantage is ownership based on the annual report of Marks and Spencer......

Words: 1938 - Pages: 8

Premium Essay

M & S Business Strategy

...and group revenue of £9.7bn in 2011, Marks&Spencer (M&S) is one of the most important UK retailers. Expanded all across Europe, Asia and Middle East, M&S has a store network of 152 wholly-owned and partlyowned locations and 209 franchises (2011), transforming more and more into a strong international business presence that offers great value clothing, extremely high quality food and a variety of home products. M&S strategy is to become a global multi-channel retailer (Bolland, 2011) in order to reduce its dependency on the UK market conditions and economic climate and to create a powerful brand serving a worldwide customer base. With an extraordinary understanding of customers selective needs based on a complex combination of market analyses and research feedback to identify trends and factors influencing their choices and decisions, M&S provides quality, value and innovation, positioning customers at the heart of the entire business. This report presents an overview of M&S activity and perspectives using a) a comprehensive PESTEL analysis to point out the trends and the environmental influences affecting the business, b) Porter’s five forces framework to explore and evaluate M&S attractiveness, c) a detailed SWOT analysis to highlight the company’ main advantages and hot spots and to identify any opportunity it can capitalize on and challenges that may endanger its future evolution and d) a value chain analysis. PESTEL Analysis According to Fahey and Narayanan (1986),......

Words: 2407 - Pages: 10

Premium Essay

M&S Hr Analyses

...2.The Situation 3 2.1 Background of M&S 3 2.2 A Fiercely Competitive Clothing Market of M&S 3 2.3 The Rationale: Why does HRM Contribute to Increasing Competitiveness? 4 3 Analysis of Current Situation 5 4. Respond to the HRM Weakness 9 5. Evaluation on HRM Approach Implemented by M&S 10 6. Conclusion 11 References 12 1.Introduction In recent business environment, competition has become a core issue due to its crucial impacts on company development in terms of market and profits. This dissertation will introduce proper and effective strategies to overcome the problems so that the company would be turned into higher competitive stance. Additionally, this article aims to analyze the competitive environment from both internal and external of Marks and Spencer plc (M&S), to evaluate the reasons why it has gone wrong ever since 1997 and to identify how the changes of human resources management could help M&S sharpen its competitive edge. This paper is divided into four parts. The first part focuses on the background M&S has been facing ever since 1997 that the company is suffering from a great crisis. The current situation is analyzed in the second part by using the SWOT model to examine the positions and environment of M&S. The third part emphasizes on discussing the human resources management policies that M&S used to respond the weakness discussion during the SWOT analysis. The final part aims to evaluate the......

Words: 2351 - Pages: 10

Premium Essay

M and S

...MARKS AND SPENCER Marks & spencer was founded in the year 1884,it was a private limited company. It has grown with a single market.It was an international and multi channel retailer company where this company sell all stylish, high quality ,home proudcts and all luxurious goods across the world. M&S aims to provides quality and best shopping experience to all the customers. SWOT ANALYSIS OF MARKS & SPENCER STRENGTH: M&S was a reputed company and it has competition in an international market.We deliver quality manufacturing and innovative and unique way of shopping infrastructure. WEAKNESSES: The cost of the products are high compare to other brands and there was a lack of fashionable trends to attract the younger generation of the 21st century.M&S are taking longer time to forecast and bring changes in their business. OPPORTUNITIES: M&S are targeting to linked up or merger with the international companies to grow at the faster rate globally.This company are needed to identify and overcome to attract not only the youngsters but also the older generation. THREATS: Economic changes are slightly down because of the changing needs of the customers.Due to the varities of retail markets the competition level has increased at a higher rate. Customers demand are increasing but somehow they are unwilling to fulfill needs and wants of the customers demands. PEST ANALYSIS OF M&S POLITICAL FACTOR: In modern organization there was a lage affects of the global......

Words: 408 - Pages: 2

Premium Essay

M&S and Zara

...Defining the Market The industry that M&S are operating in is the textile apparel industry. This is a highly competitive industry that is constantly changing and it is crucial for companies in this industry to adapt to new trends and customer needs. M&S have a strong focus on consistent quality and high standards. They have been aware of technological factors and social changes within this market and have reacted in particular to the technological evolutions effectively, helping them to achieve one of their core competencies that is, quality. Driving forces in this industry proved difficult for M&S, globalization, the development of casual trends, and accelerating fashion cycles were major evolutions that became prevalent in the textile apparel industry, M&S were not reacting to these factors well and so they were becoming quite lost in their own market. Macro Economic Factors/PEST Analysis. Technological Issues The textile apparel industry is becoming to rely on technology for faster production systems and better quality products. We have seen that M&S have had a successful technological component to their organization, close co-operation with suppliers and the use of the latest technology has been the foundation for achieving the highest quality in their products. The fashion industry is going to keep evolving with the newest technology, it is vital that brands react to this macro-economic factor as it will be what may differentiate you from......

Words: 1878 - Pages: 8

Free Essay

Marks and Spencer (M&S) Is

...Introduction Marks and Spencer (M&S) is a leading British based multinational retailer specializes in selling clothing ,home and food products. This essay would be discussing and examining the operation strategy of the company through studying the case “New supply chain strategies at old M&S”. Product ranges and market segmentations M&S classified its products by establishing a number of brands for attracting different customers who has different lifestyles. They are: The perfection collection, The classic collection, The Autograph range and per una. Each of the brands has been segmented carefully in order to highlight the features and design philosophy of the brand and satisfy particular needs for customer. The perfection collection and The classic collection essentially serve for customers who are mature and have high loyalty to M&S products. The products of two collections shared lots of similarities and the chief aims is to provide wide-range of ‘timeless essentials’ clothes to customers who focus on its own clothing style and finesse. The core principle of The Autograph range is to incorporate cutting-edge design to products under the brand. Product categories encompass womenswear, menswear and related accessories. It features supreme design by industry top tier designers with a very pricy price tag. It targets customer who values product design is first and foremost. The per una feature products with high-end designs and acceptably priced. The......

Words: 586 - Pages: 3

Free Essay

M&S Pestel Annaylysis

...Marks and Spencers Pestel Analysis Political - Marks and Spencers have cut salt and fat intake in many foods as part of fair trade. They have also make sure to support animal welfare and they recycle reusable goods. The government sets regulations for companies to follow such as Health and Safety, planning for hazard identificationa and risk control. If companies do not follow these regulations they will be fined or be forced to close down. Marks and Spencer did not abide by the British Standards as they were charged for neglecting health and safety regulations after a door fell on an employee. Marks and Spencer are alleged to have ignored repair requests, allowing the door to fall intodisrepair. Marks and Spencer pled not guilty to this; there is still no outcome of this trial. Econimical – Marks and Spencers revenue growth was around 2% in 2012 and its Uk retail market growth was at 1.2% which is the third lowest in the last 40 years. Marks and Spencers reported a 1% drop in underlying profits to £705.9m for the year. Although slightly ahead of predictions of £694m, it marked the retailer's first decline in three years. Sales increased by £194m to £9.9bn; the original plan required sales to ratchet up by around £800m a year. Social – Marks and Spencers keeps up to date with the social needs of customers most recently by creating low price versions of their products. Marks and Spencer aims to become a fair partner by working closely with suppliers in order to ensure that......

Words: 447 - Pages: 2

Free Essay

M&S Analysis - Finance for Managers

...d in the balance sheet  for  a  company  like  Marks  and  Spencer.  It  includes  ‘all  the  resources  that  are  reasonably  expected  to  be  converted  into  cash  within  one  year  in  the  normal  course  of  the  business’  (Weetman). It is important to look at the current assets in relation to the current liabilities to  get  a  feel  for  the  company’s  liquidity.  This  is,  the  company’s  ability  to  meet  its  short‐term  obligations, such as its working capital needs and its debt obligations. The two most common  used ratios when assessing an entity’s liquidity are the ‘current ratio’ and the ‘quick ratio’ or  ‘acid test’.     �������������� ���������� =   �������������� ������������ 1,641.7 �� =  = ��. ���� �������������� ���������������������� 2,210.2 �� ���������� ���������� =     �������������� ������������ − ���������������������� 1,641.7 �� −  685.3 �� =  = ��. ���� �������������� ���������������������� 2,210.2 �� Although a 2:1 current ratio and 1:1 quick ratio tend to be considered ’ideal’, lower ratios can  be  understandable  for  retail  companies  due  to  the  nature  of  their  business.  Nevertheless,  0.74:1 current ratio and 0.43:1 quick ratio that M&S reported suggest that the firm may have  difficulty meeting current obligations. Low values, however, are not always fatal. As suggested  in  the  academic  article  “Zero  income  survival  times  for  ten  fashion  retailers”,  if  the  company      Page 2  ......

Words: 1085 - Pages: 5

Premium Essay

M&S Solutions

...Joel A Alvarado Perez 1. Why are M&S in this predicament? Has increased overseas sourcing helped or hindered their marketplace performance? Business was only getting worse for M&S through the 1990’s. The company started off on top of the department store chain, but by 1998, sales began dropping. By 1998, sales had dropped by 6%. As oppose to helping themselves by increasing the sourcing overseas, they spread out too fast and were not able to manage all of their new factories. 5 Factories were closed in that same time period. As they were losing control of their business, competitors made their arrival and easily took over the fashion industry knocking M&S off their throne for some years 2. Given that costs must be reduced, how can M&S capture the potential benefits of low-cost sourcing whilst still improving responsiveness? * M&S was one of the first companies to buy directly from the manufacturer, which reduced some costs. On top of that, worked with the largest suppliers in order to reduce the cost of manufacturing and shipping the goods, thus allowing the reduced costs. By having a consolidation warehouse, it was easier and more efficient for M&S to be able to ship it’s own product to its stores as oppose to having to set up different ship locations with the manufacturer. M&S was then able to perfect this Supply chain as they were more in control of the distribution of their goods 3. Is the current one-size-fits all......

Words: 517 - Pages: 3

Free Essay

M&S Case

...Introduction Marks & Spencer Plc (from now on M&S) is an international retailer with 718 locations across 34 countries. The group sells clothing, footwear, gifts, home furnishings and foods under the St. Michael trademark in its chain of 294 stores in the United Kingdom. Approximately half of the group's overseas stores are franchised to local partners. The group also owns the clothing retailer Brooks Brothers and the Kings Super Markets chain in the United States of America. Direct mail helps M&S meet the core objective of providing customers with wider, easier access to their products such as home furnishings, flowers, hampers and wine. The financial services comprise of operations of the groups financial services companies providing account cards, personal loans, unit trust management, life assurance and pensions. Retailing accounted for 96% of fiscal 2000 revenues and financial services, 4%. The company was always considered to have a great management support that helped in its growth. But the last years, M&S’s managers seem to fail on their strategic decisions, leading the group to lower and lower sales and profits. The share price is also dropping and shareholders feel insecure for the future (figure 2). Group structure and financial performance The group’s performance measures for the year ended at 31 March were disappointing (figure-5). The return on equity ratio and the earnings per share were zero as the company had only £1.3m profit this year. For......

Words: 2968 - Pages: 12

Trail Adventure N°16 – Janvier-Mars 2019 | Quien Esta Matando a Los Monec.. BluRay-Screeener | Télécharger / Regarder