Marks and Spencer: Internal and External Analysis

attach and Spencer Internal and foreign AnalysisMS is a great cross out. It is one of the UKs leading retail merchants. The friendship operates in almost 41 countries worldwide with UK as its primary merchandise and employs ab come in 76,000 lot. MS deals in clothing, food, home, monetary services and online services.To develop the suitable backup strategy for its growth particularly focusing on pattern A, there imbibe been discussed MS internal supernumeraryneous surrounds. strategic impact of external environment on MS has as substantially been discussed. major challenges facing MS and war-ridden advantages of MS permit been discussed. MS is a market attractor so that market leader strategy and suggestions soak up been given.INTRODUCTIONThe study encompasses a report about the MS, to develop the strategy for its growth focusing on Plan A. Marks Spencer launched Plan A in January 2007, setting out 100 commitments to reach in 5 years. The discussion has been described in detail about the core analysis of MS internal and external environment, pulverisation analysis of MS has been included. Debenhams has been selected closest competitor of MS because they entertain a comparable product base. Strengths Weaknesses of DEB have been described.It also consists upon the electric current economic obstacles and the remedies to remove these obstacles.For this reason, books, newspapers, magazines, and websites have been consulted.LITERATURE REVIEWREFERENCES SOURCESBOOKS/NEWS written document/JOURNALS,MAGAZINES DIGESTSBOOKS01. Fundamentals of commercialiseing by William J. Stanton, Michael J.Etzel, Bruce J. go-cart, 10th Edition, print and Printed inThe unite States of America by McGraw-Hill, Inc.02. The New Encyclopaedia Britannica, 15th Edition, Volume 7, publish by Encyclopaedia Britannica, Inc. unite States ofAmerica. British Library.NEWS PAPERSThe protector www.guardian.co.uk/JOURNALS,MAGAZINES DIGESTEuropean Retail Digest The Univ ersity of Manchester www.readinglists.manchester.ac.uk/Web Sitesweb.ebscohost.com (British Library)www.marksandspencer.com/http//corporate.marksandspencer.com/aboutus/company_ everyplaceviewhttp//search.ebscohost.com/login.aspx?direct=truedb=bthAN=15053580site=ehost-livehttp//www.guardian.co.uk/ strain/marksspencer?INTCMP=SRCHhttp//plana.marksandspencer.com/media/pdf/planA-2010.pdfhttp//corporate.marksandspencer.com/mscargoners/opportunities/shared_services_admin/ssa_hrwww.datamonitor.comhttp//www. credit line organizationteacher.org.uk/free-marketing-essays/marketing-retail-assignment/http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/Brief History of Marks SpencerMS is a major retailer of clothing. It is headquartered in London.MS started its business in 1884 as a pop off in an open market in Leeds. Then known as Marks Penny Bazaar, it was the household goods, toy, and sheet-music business of Michael Marks, a Jewish refugee from Poland. In 1894 h e started partnership with Thomas Spencer. Marks son Simon transformed the business from outdoor stalls to indoor shops. He purchased Brookes Br otherwises, the oldest U.S. clothing retailer in 1988 but sold it in 2001. (1)MS products, including food, clothing and household goods have been selling under the St. Michael brand name in most move of the world.(2)The New Encyclopaedia Britannica, 15th Edition, Volume 7, Published by, Encyclopaedia Britannica, Inc. Printed in The United States of America. (British Library).Aldridge, Roger, Autumn1995, Growth Strategies A Case Study in Internationalisation. online. European Retail Digest, Issue 8, p25-32, for sale from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=15053580site=ehost-live), Accessed 15 border 2011 0312 PM (British Library).Marks Spencer OverviewMS is one of the UKs leading retailers. MS offer stylish, high gear property, great value clothing, home products and silk hat quality foods. There are over 75, 000 people working at MS in the UK and abroad, and over 600 UK stores. MS is expanding its business globally.MS is the number one contributer of womenswear in the UK, and is rapidly growing market share in menswear, kids wear, home, and online business.( caller-up Overview) Available from (http//corporate.marksandspencer.com/aboutus/company_overview)Accessed 11 April 2011 at 424 PMStock Chart for MS, March 2011-April 2011virtuoso Month Chart for MARKS SP.http//www.guardian.co.uk/business/marksspencer?INTCMP=SRCHAccessed 12 April 2011 at 0309 AM onlineSomething near Plan AMarks Spencer launched Plan A in January 2007, with designate to 100 commitments to achieve in 5 years. Marks Spencer has now lengthened Plan A to 180 commitments to achieve by 2015. The goal of it to emergence the worlds number one retailer. MS has now achieved 62 of its 100 Plan A commitments set in 2007. (1)Marks Spencers 7th annual report. Published in June 2010.http//plana.marksandspencer.com/media/pdf /planA-2010.pdf(Consulted on 20/03/2011)Analysis of MSs Internal surroundMS is the market leader in clothing due its range and quality. leaders in clothing converted MS into market leader in division stores.In this section, the discussion would be on the side by side(p) account pointsFinancial ResourcesHuman ResourcesCompany Image nurture and development pickle merchandise Facilities (1)Strengths WeaknessesFinancial ResourcesThe company earned 9,536.6 million profit during the financial yearended April 2010. (DATAMONITOR. 2010. Marks and Spencer Group plc. Available from www.datamonitor.comAccessed 22 March 2011.Human ResourcesIn this area MS has a number of squads, including Payroll, Pensions, Learning and HR Administration. MS also has a general recruitment team who manage all store and head office recruitment.(Human Resources. http//corporate.marksandspencer.com/mscareers/opportunities/shared_services_admin/ssa_hrAccessed 09 April 2011 at 0228 AM ).William J. Stanton, Michae l J. Etzel, Bruce J. WalkerFundamentals of food marketing 10th edition, International edition (1994), page 54, McGraw-Hill, Inc. United States of America.Company ImageMS is a top company for responsible business. Marks Spencer has been recognised as the top company in the UK for responsible business. MS was named Company of the Year 2006, at Business in the Communitys Awardsfor Excellence. (http//corporate.marksandspencer.com/documents/press_releases/pr/businessinthecommunity.pdf)Accessed 09 April 2011 at 0240 AMLearning DevelopmentMS provide in-depth training and performance coaching to the employees for their development.(http//corporate.marksandspencer.com/mscareers/learning_development) Accessed 09 April 2011LocationMS has over600 stores passim the UK. MSs largest store is located at Marble Arch on Londons Oxford Street.http//corporate.marksandspencer.com/aboutus/where/uk_stores Accessed 09 April 2011Production FacilitiesMS is the worlds first retailer who is using palm oi l in its products.This palm oil has been used in almost 1,000 MS food, kayo and home products each year.(http//corporate.marksandspencer.com/investors/press_releases/sustainablepalmoil)Accessed 09 April 2011 at 0348 AMStrengths Weaknesses of MSStrengths of MSMS has a strong market position in the clothing segment. MS leads the market in womenswear, lingerie and menswear and have an expanding childrenswear business. MS has been very self-made in capturing its customers segment through its dissimilar product offer, in-store service and dress quality. Some other key points areReputation/BrandMarket positionQuality productsOnline shopWeaknesses of MSThe average shelf deportment for MS products is 3 to 5 days, compared with supermarket dry shelf products with 3 to 4 weeks shelf life. It is a high price for consumers. Cost-conscious people are often concerned about the price. MS stores have competitive separates as compared to Tesco. Tesco stores have been carefully designed with good store layouts. MS stores have not been carefully designed with good layout. This is a clear competitive disadvantage compared to Tesco. (1)Some other key points areSlow to win over miss of newnessClothing does not appeal to younger womens tasteAnalysis of MSs impertinent EnvironmentIn this section the discussion would be on following key pointsThere are two levels of external environmentExternal Macro environmentExternal Micro environmentMarks Spencer Group, PLC SWOT Analysis Nov2010, p1-13, DATAMONITOR Marks and Spencer Group plc. Marks Spencer Group Company Report, Available from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=58451839site=ehost-live), Accessed 15 March 2011 0255 PM, British Library.In external macro environment, key points would bePeopleEconomic ConditionsCompetitors Analysis amicable and cultural AspectsPolitical and legal AspectsTechnologyIn external small environment, key points would beThe marketSuppliersMarketing Intermediaries (1)And Op portunities Threats.External Macro EnvironmentPeopleThe first external environmental factor is population because the people make up the markets. We know that MS is trying to fulfill the need, regard and demand of its customers by their age groups, marital status, gents, ladies, kids, old aged people, and brand quality conscious people and to the higher number of home shopping or internet/online shopping.Economic ConditionsEconomic conditions or changes effect the organic market size. MS has strong customer segment even in this challenging economic environment. MS has increased the share of the clothing market.(1) William J. Stanton, Michael J. Etzel, Bruce J. WalkerFundamentals of Marketing 10th edition, International edition (1994), Page 42,53,54 , McGraw-Hill, Inc. United States of America.Competitors AnalysisCompetitors of MS are many. Because MS sells a lot of different products. There is long list of its competitors, like, BHS, Debenhams, Derrys, House of Fraser, Sainsbur y, Tesco, and Morrisons. But MS is best known for its clothes. So that I have selected Debenhams closest competitor of MS. This survival has been made because they have a comparable product base.Strengths of DebenhamsReputation darling product mix and brand selectionLatest designers better cutting-edge with current trends.Attractive Advertisement.Weaknesses of DebenhamsInternationally, theyre not well known as compared with MS. Theyre competing generally in the domestic market. (1)Social and Cultural AspectsLife-styles, social values, beliefs have hearty marketing implications and MS has capability to cope with change.Political Legal Aspects all(prenominal) company is influenced by the political and legal processes. These forces, such as, monetary and fiscal policies, social legislation and regulation, and governmental relationships with industries.TechnologyTechnological changes, change the business style.http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail -assignment/, Accessed 11 April 2011.-External Micro EnvironmentThe Market, Suppliers and Marketing Intermediaries are also effect the organization.Opportunities Threats of MSOpportunitiesExpansion abroad (India and China), and investment in other countries. (1)ThreatsDue to strong rival MS losses market share, peculiarly in food sector. (http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/), Accessed 11 April 2011, at 1152 PMMajor Challenges Facing the MSMS has made progress, but still incline some challenges to meet the original2012 targets.Government has changed the rules for renewable electricity so MS is working in partnership with BRE/Pure to meet its commitments.Marks Spencer Group, PLC SWOT Analysis Nov2010, p1-13, DATAMONITOR Marks and Spencer Group plc. Marks Spencer Group Company Report, Available from (http//search.ebscohost.com/login.aspx?direct=truedb=bthAN=58451839site=ehost-live), Accessed 15 March 2011, British Library.MS has a w ide range of food and sales of food have move to decline in the current economic climate. (1)External Environmental Strategic Impact on MSThe retail industry is generally a very dynamic, fast changing sector. Companies have to be salvageing themselves to cognisant about the market, to know any new trend and they have to keep up with the customers increasing expectations and changing tastes.Nowadays, it is becoming more(prenominal) and more unvoiced and challenging to keep the customer satisfied and loyal customers preferences change quickly. higher up mentioned analysis of external environment of MS has a strong effect on it. MS is among the top 6 UK retailers. External issues have the strategic impact on MS asFast changing Market Economic conditions.Consumers change of taste.Marks Spencers 7th annual report. Published in June 2010.http//plana.marksandspencer.com/media/pdf/planA-2010.pdfAccessed 12 April 2011 at 333 PMSlow economy.Increased competition from locally and from foreign companies. (1) rivalrous Advantages of MS and How MS will achieve itMS is the market leader both in clothing and department stores. Reputation and brand of MS is globally recognised. Internationally, DEB is not well known as compared with MS. DEB is competing mainly in the domestic market.MS regularly checks the salaries against other retailers to make sure that it is competitive. For this reason MS perpetually reviews the basic pay every year. MS also offer extra performance rewards to recognise individual achievement. (2)MS is continuously offering these rewards benefitsCompetitive Salary, Bonus Scheme, Holidays, Employee discount, Pension Plan, Additional benefits (like discounted gym membership, savings on tickets for merriment parks, joining fees for health clubs and reductions at a variety of UK holiday resorts.). (3)(1). http//www.businessteacher.org.uk/free-marketing-essays/marketing-retail-assignment/, Accessed 12 April 2011 at 500PM.(2)(http//corporate.marksands pencer.com/mscareers/rewards_benefits), Accessed 12 April 2011 at 1143 PM.(3) (http//corporate.marksandspencer.com/mscareers/opportunities/trainee_management_scheme/trainee_benefits_rewards), Accessed 13 April 2011 at 1227 AM.NEED OF STRATEGY FOR THE GROWTH OF MSNeed of developing the strategy for the growth of MS focusing on Plan A is to make moves, plans and strategies for expanding the market or enlarging the share of lively market and keeping them secure.It helps an organization better cope with the changes that occur in market place from time to time.MS is a market leader in retail industry and under mentioned are the suitable business strategies for the MS.Market Leader StrategyThe company has the largest market share in the relevant products market. The market leader should look for new users, new uses, and more usage of its products. MS must defend its market share market segment.SUGGESTIONSDistinctive CompetenceMS must determine its distinctive competency over its compet itors. So that it can made strengths over them. Distinctive competence may exist in the form ofLow cost of exertion competence.Mass production competence.Access to cheap sources of raw material.Product quality variety.Financial Technological competence.Capability to cope with change.An organizations capability to cope with change is a very good strong point. MS must get over with the market changes with better marketing policies and effective functional programmes.Name indicatorSubject Index..