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Company Analysis -M&S

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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)


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.…...

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