Mark s and Spencer – Management and Marketing Analyse

Context of Business

Table of Contents

Introduction ...........................................................................................3
About Mark and Spencer ....................................................................3
Market Leadership ...........................................................................4
 PESTLE Analyse ..........................................................................6
Structural Organization ..............................................................8
Management Style ......................................................................8
Recommendations ...................................................................9
Conclusion ............................................................................9
References ........................................................................10

This report follows the retailer Mark and Spencer. This retailer is one of British origin. The
reason this retailer has been chosen is that it is well known in the UK, as well as in other
countries in Europe or Asia. The last years brought phenomenal growth to Mark and Spencer.
If at first it deals with retail only with clothes, now the retailer is recognized for both food and
home-based products.

Keywords: Mark and Spencer, distributor, commerce, retail, management style, marketing
analyse.
Introduction

This brand was born a few hundred years ago, around 1884, in the UK, more precisely
in Leeds. This was formed by Michael Marks and Thomas Spencer, and hence the name of the
brand, the name of the founders Marks and Spencer. If at the beginning of this brand, it had the
sales area only on the territory of the UK, now this brand has its scope of activity worldwide.
There are over 1200 Mark and Spencer locations in the world, or M & S abbreviated, all of
which have the same original air as at the beginning of their training.

The company has several clear objectives including: a series of high-end clients, the
development of activities and operations as efficient as possible for clients as well as the
existence of a fair management, the conclusion of long-lasting partnerships as well as a profit
as much as possible in relation to sales and services. For now, the existence of many Mark and
Spencer stores in the world brings a few threats. Thanks to quality management and
professional leadership, decisions have been made on some stores in Europe and beyond. This
would result in a reconfiguration of the brand as well as an improvement in the services,
depending on the area where the shops are located. (Rogers, T. (2012, October 4).

About Mark and Spencer

According to their reports, Mark and Spencer is a public limited company, and it can
also be called an embedded business. The field of activity of this company is to provide goods
and services to several clients around the world. The domain in which it acts is a private one,
obtaining a declared profit and paying taxes and duties to the state where the store is located.
The benefits that this company obtains are largely financial, high profits that are then
reinvested. Most investments are made in infrastructure as well as in the development of new
outlets. The company has the maximum freedom and to intervene at the level of the production
factors respecting the quality standards imposed on the products.
 The main objectives of Mark and Spencer are the same as any other company:
maximizing profits, expanding stores, attracting new investors and new alliances, increasing
the quality of products and services offered. For Mark and Spencer, not only the quality of the
products, but also the way they are intermediate, are important, so there is a great emphasis and
human resource on employees. Being a private-sector company, the maximum profit it
obtained was in the country of origin, that is Britain. Many statistics show more than 10 million
pounds profit for UK space alone. At international level, Mark and Spencer operates over 126
franchises located in over 25 countries. It's also on the international market has brought him
several colossal benefits, including even profit, this has increased several times compared to
the amounts obtained in the UK.

Market Leadership

In view of Mark and Spencer's profits as well as the outlets in which it operates, it wants
to achieve the goal of being a market leader. This goal can be achieved through the way they
produce and intermediate products. At this level, leadership has a decisive role in making not
the most accurate decisions but rather the most appropriate. Being known for the quality of the
products they sell, they will continue to do so, according to the reports they regularly issue. At
the same time, clients' surveys are also present in these reports. They bring positive feedback,
clients mention that the atmosphere in the shops is very friendly and the services and products
are of high quality. At the same time, at the quality / price ratio, they say they are satisfied,
saying they buy their products from Mark and Spencer. (Makos, 2014)

The positioning of stores also contributes to these responses. Some shops even have
very large spaces inside the big shopping centres, others are in classic style. Considering the
variety of products, it offers at this moment, it is natural for the size of the shops to be large
and very large. Considering that they are also found globally, there is really no classification
of people who buy Mark and Spencer products on a regular day. From tourists to residents of
the area, we all enjoy the quality of our products. Even if statistics show that this brand is a
well-known and very used brand, it also has competitors of the same class. Contestants like
Zara, Massimo Dutti, Burberry are potentially serious threats. As they maintain their
expansionary policies, the significant increases will be made, avoiding possible threats from
competition. (Rogers, T. (2012, October 4).

The Swot analysis includes internal and external factors that influence in one measure
or another the functional and decisional processes for Mark and Spencer. This SWOT analysis
covers the four major points for Mark and Spencer: strengths, weaknesses, opportunities and
threats.

Strengths

At the strengths, Mark and Spencer are distinguished by a very strong offer of high-
quality products. This is a recognized one and cannot be challenged so far. At the same time,
it has a well-established infrastructure, both online and offline. Another fact is that of corporate
social responsibility. This concept, even if it is a new one, is used and put into practice by
countless multinationals, sometimes part of the marketing strategy. Special attention and care
to meet customer requirements is one of the strong points for Mark and Spencer.

Weaknesses

Even if on an overall analysis it seems that no weaknesses can be found, at a more careful
analysis these really exist. They materialize even through expansion. Some outlets have caused
significant losses for Mark and Spencer. Because of the inflationist phenomenon in some
countries, the stores had revenue below the expectations. Also related to the spaces in which
these stores are found, it is noted that products are still introduced under the quality standards.
This has led to complaints from customers, providing some negative feedback to certain stores
and products.

Opportunities

Even if expansion is also a weak point for Mark and Spencer, choosing an economically
fair market can be a real opportunity. Expansion of the company in India can be a new
beginning for Mark and Spencer and even a new opportunity for innovation and restructuring.
The more active presence in the online environment or better said the fruition of this
opportunity brings to Mark and Spencer the benefit and market awareness. Reconfiguring the
shops and their design can be a real opportunity to grow. It is true that keeping classic store
style offers Mark and Spencer authenticity and the idea of continuity, but small changes can
even bring great benefits.
Threats

These are everywhere and can occur at any time, but their awareness can mitigate
possible losses and not only. The emergence of new trends in the clothing market can be a real
danger, so periodic fashion analyses and customer preferences are indicated to avoid such
dangers. Possible economic crises or financial depreciations are also present, especially today
that global changes are changing from one moment to the next.

Finally, competition or over-competition can seriously affect Mark and Spencer's well-
being and the evolution of this brand. The presence of an unfair competitor as well as economic
instability can strongly destabilize the brand and its activity.

PESTLE Analyse
According to (Makos, 2014), PESTLE analysis offers the possibility to create a research
framework for external factors that cannot be controlled. Given this company, Mark and
Spencer, a PESTLE analysis can be carried out to avoid threats.

Political Factors

In a first phase there are the political factors. Free trade agreements in recent years have
provided the retailer with opportunities for expansion and growth. This has had a positive
impact until the Brexit phenomenon either recognizes or has affected both sales in the UK and
continued expansion that Mark and Spencer began years ago. At the international level, the
presence of either physical or formal conflicts has shaken the company's activity. This has
resulted in a decrease in consumption of products from areas such as the Middle East, Russia,
Ukraine. (Marks Spencer, 2015), and at the same time, environmental policies have been
noticed, and this was forced to give up plastic bags a few years ago because they were harmful
to the environment. which led to very large discrepancies between stores. The measures taken
by the company at that time were sustained, respecting these provisions for a better image of
pro-nature activists (Vaughan, 2012).

Economic factors

The economic crises in the past years have represented both opportunities and real
dangers for M & S. Maintaining products at higher quality standards but at a lower price has
led to consumer satisfaction and a drop-in profit. But after the crisis has passed, both sales and
profits have increased. But this has not happened internationally. In the Middle East, the drop-
in oil prices affected the performance of the stores while the emergence of the BREXIT
phenomenon in 2016 brought major changes at both structural and investment levels. (The
Marketing Society, 2010).

Socio-cultural factors

Age differences that generate and different behaviours represent real obstacles if there
are no clear solutions to meeting customer needs. Keep in mind that the new generation is very
keen on its image, and from the multitude of retailers currently on the market they have a
choice. This reality is not good for M & S, they need to look for what is being worn, what's up
and how to attract the next generation to be customers for a long time. (Experian, 2015).
According to M & S reports, they place great emphasis on the ecological component, the
component that is strongly debated and criticized by today's young people. That's why M & S
needs to focus its attention on the ecological component, which is essential for a good business
development not only for M & A in general.

Technological factors

At infrastructure and technology level, M & S occupies a leading position. This is found
on both media platforms and online platforms. The Amazon-hosted platform for Mark and
Spencer sales was a real opportunity and openness to online sales. Rapidity, consistency and
real-world improvements have made M & S a real retailer, reaching a large sales account in
the online environment. This has benefited both consumers and the benefit of the brand and
can also get accurate data on the number of consumers and their preferences. (Thomson, 2014);

Environmental factors
 The new regulations both locally and internationally have made M & S more attentive
to the quality of products and the way they are marketed. They had to consider both the product
creation stage and how it was removed from use. Through some company-implemented
policies, they have tried to some extent educate their customers about clothes and the products
they buy from M & S stores. This has even worked to increase brand confidence and the way
it behaves concerning the customer and the environment.

Legal Factors

One of the company's initiatives, Behind the Barcode, offers consumers an omni-
channel experience, allowing them to order online articles for home delivery or store collection
by scanning a product in the store. This is an example of the high standards that the company
respects. M & S must ensure that it does not impede laws and regulations both on the domestic
and international markets during the expansion, as well as in countries alongside its value
chain. Following the United Kingdom's decision to leave the EU, the company, like other UK
retailers, is likely to face legal problems. Loss of access to the common market will affect
supply chains, free movement of persons, intellectual property rights, international contracts
and much more. (Thomson, 2012).

Structural Organization
Regarding the organizational structure, this brand is very important. A clear and
efficient structure only brings benefits. Here the characteristics are considered: one is
represented by the management hierarchy and the other is the control duration. Culture within
this company is very important because this aspect concerns how people in the organization
interact with each other. Otherwise, if people do not interact well with one another, decisions
could be taken badly, and this would be damaging to the whole company. Positivity is the
underlying element of Mark and Spencer. (Annual Report 2018" (PDF).

Management Style

As far as management is concerned, this is an advisory one, which means that the leader
consults with other members before deciding. This is a general principle. There is this brand at
the international level that has made management styles different according to the culture in
which they are found. In some countries democratic governance is used, in which case people
can do what they feel is right, and in others the autocratic style is used, here are the directors
who tell the staff what to do and no opinion is required. The multitude of existing styles inside
this company has made it work so well. There has never been a style, but it has been attempted
to adapt the brand society. (Annual Report 2018" (PDF).

Recommendations

M&S is a successful multinational corporation for today. Offering quality services and
products over the years, it has won a lot of loyal consumers. However, there is a need for
changes in the design of shops and certain products. They must turn to the young audience,
respecting the requirements of the young audience. Segmenting stocks by age category is one
thing to consider for a better young woman under product control. The next periods of crisis
should steer M & S from now on to the target of the new market, calculating the potential as
realistic as possible and assessing all possible losses.

Conclusion

M&S is one of Britain's leading retailers. Starting with the year of establishment, in
1884 it was a symbol of quality and colossal investment. Despite this countless crises and
technological processes that have passed, M & S has suffered major drawbacks in the face of
colossal quirks. Given the politically unstable situation in the past, M & S will suffer major
shifts both locally and internationally. The company faces serious macro and microeconomic
problems, despite its strong brand, its solid position in the food sector and continued innovation
in the digital transformation of its operations. Whether the company is well prepared to
maintain its position of retailer of food and clothing in the UK and abroad market, it remains
to be seen.

References

1) The Marketing Society. (2010). Marks & Spencer: Quality worth paying more
for. Marketing Excellence 2
2) Rogers, T. (2012, October 4). Comment: Retailers must heed Marks &
Spencer’s international strength. Retrieved July 2016, from Retail Week:
http://www.retail-week.com/comment/comment-retailers-mustheed-marks-
and-spencers-international-strength/5041479.article
3) Macalister, T. (2015, July 16). Marks & Spencer’s head of clothing quits retailer
after sales slip. Retrieved July 2016, from The Guardian:
http://www.theguardian.com/business/2015/jul/16/marks-spencersclothing-
director-set-to-quit-after-sales-slip
4) Makos, J. (2014, September 1). Analyse PESTEL for Monitoring your Business
or Organization. Retrieved July 2016, from Pestle analysis:
http://pestleanalysis.com/category/pest-analysis/
5) Annual Report 2018" (PDF). Marks & Spencer. Retrieved 4 March 2019.
6) "The History of Marks and Spencer". BBC News. Retrieved 18 April 2011.
7) https://www.marksandspencer.com/