Essays on Marks & Spencer: Is This As Good As It Gets Case Study

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The paper "Marks & Spencer: Is This As Good As It Gets" is a perfect example of a business case study.   The objective of this report is to engage in an in-depth analysis on how different external and internal factors affect the strategies of Marks and Spencer and the role they play in the implementation of the company’ s strategies relative to the environment and its competitors. According to this report Marks and Spencer appears to be using an effective strategy and marketing plan but it has failed in using it for its advantage.

The report will also go into details on how the macro and micro environmental factors affecting the strategies of the organization. The report uses frameworks such as SWOT, PESTLE, Porters five forces, value chain analysis, and VRIO in understanding the current position of the company and in making strategic recommendations for the development of the firm. Organizational overview Marks and Spencer is Britain’ s leading general retailer in the sale of clothes, gifts, home furnishings, and food products. The company operates in Europe, the Far East, and the Americas under the brand name St.

Michaels. Mark ad Spencer was founded in 1884 and currently operates more than 300 stores in the United Kingdom. It the country’ s largest retailer considering that it owns about 17% of the clothing market share (Dutta 2014, p. 2). The company’ s vision is to offer its consumers with high-quality products value and services. Core values: service delivery, affordability, and quality, innovation, trust Mission: To ensure that aspirational quality is accessible to all The company’ s main competitors in the clothing industry are Top Shop, Next and Gap whose success in the market is defined by their ability to provide customers with fashionable and trendy designs.

In the food chain industry, the company faces competition from Tesco, Waitrose, and Sainsbury, which are currently providing frozen and readymade food for their customers. From this case study, it is noticeable that Marks and Spencer are facing challenges from all segments in the market but the company has not interested in changes that are sufficient in making it highly competitive. This explains why in early 2000 the company lost its profit and majority market share (Bevan 2011, p.

5). External analysis PESTLE Political The European Union and the Free Trade Agreements that define market operations in Europe play an important role in boosting the growth of the retail market. This also helps British based companies in acquiring goods from other countries at cheaper prices compared to the high-cost structures developed by Marks and Spencer. Labor law issues also affect the ability of the company to harmonize the minimum wage due to differences in the dictates of the law in different countries of operation. Economic The retail sector is highly sensitive to any alterations to taxation and interest rates.

The industry faced challenges during the 2008/2009 economic recession period, this affected the profitability of companies such as Marks and Spencer considering that the consumers were shifting their tastes and preferences to relatively cheaper alternatives (http: //www. marksandspencer. eu/). In terms of the acquisition, competitors such as Top Shop and Gap import their products from other countries as a cost-cutting initiative. This has been considered as economically disadvantageous to Marks and Spencer considering that it sources its products from the UK making them relatively expensive (http: //www. marksandspencer. eu/)


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