Strategic management for Marks and Spencer plcExecutive SummaryThe global business environment currently faces challenges resulting from globalization. Competition pressures form the order of the day in the present enterprises, both in domestic as well as international markets. To counter such problems, strategic management strategies have been initiated by most businesses, however, the theories, models and conceptual frameworks designed earlier in regard to consumer behavior and customer satisfaction seem not to be working in the right direction, this is due to dramatic twists in consumer attitudes that comes with the current high tech global market environment.
Food, clothing and apparel chain stores currently are rushing en masse to gain competitive advantage via online presence. The stores have developed closer relationships with customers through web experiences (Taylor Continuity Strategy the Global View). IntroductionIn today’s context, business scenario is dynamic and characterized by limited time periods, niche opportunities and presence of ever increasing risks. This requires precise decision making strategies, which if not correctly implemented would run firm’s costs skyrocketing and eventual collapses. Due care should therefore be exercised to cub the speed of businesses in the current high octane ventures that are metamorphosing constantly towards global empires.
As a consequence, greater responsibility is imposed to senior management in terms of strategic management practices. This scenario calls for Marks and Spencer management to exercise strong, good and logic driven tools in corporate financial management and strategic marketing of the company’s products (Taylor Continuity Strategy the Global View). Organizational strategic management is one of the key areas as enterprises strive to compound issues brought about by globalization where, virtual teams and social networks have replaced boardroom meetings, while knowledge based technologies are replacing infrastructure at lightening speed.
Likewise, self-leadership and values are currently replacing control and command chain in management practices. For these reasons, organizations currently seek for employees who are competent in teamwork and emotional intelligence, least consideration is leveled on technical smartness alone. Thus globalization and organizational diversity has brought abundant opportunities, yet it has also bestowed immense challenges on organization administrators (Taylor Continuity Strategy the Global View). As from 1990’s Marks and Spencer engaged in market diversification techniques to gain advantage in the competition through decision making.
However, strategic management strategies were necessary to introduce key factors into theory and Financial planning applications. This paper mainly analyses strategies undertaken by Marks and Spencer Plc between 2006 and 2009 in its management of business environment to enhance its capital output, competitive risks, global distribution and production (Gong and Zhang). Company OverviewMarks and Spencer has been business for over 125 years, current UK’s leading retailer of quality, home products, food and clothing contrasts with the penny Bazaar when it commenced. Michael Marks and Tom Spencer created a joint venture in 1894 into retail business, with the first shop opening up in West Yorkshire, Leeds’ Cross Arcade in 1904.
The Current group chairman and CEO Stuart Rose, was appointed in 2004 during the Groups, 120th anniversary. Marks and Spencer, boasts over 21 million customers in UK, and 296 stores in 40 territorial international market segment. Its business operations engages a team of 78,000 personnel with over 2,000 suppliers to ensure continuity in supply chain, quality service, innovative and trust products (Marks and Spencer). By the mid of first quarter of 2010, the firms Market share price recorded positive strength, gaining 6.30 points to stand at 360.00p.
Diversified business portfolio on international market consists of owned and franchise stores with projections that by 2010/211 the international market segment will be able to contribute 15 to 20% of the Group revenues (Marks and Spencer).