For Mark & Spencer that is offering multiple product range with its quality, approachable range for customers, it is not always easy to maintain a competitive advantage at all the time. The report presents an interesting business case and competitive analysis for M&S which illustrates that only an educated business strategy for implementing market segmentation, bolstering online presence and reducing reliance on UK market will help M&S overcome its present challenges and tread on a trajectory of growth and success. But how do we get other companies on board? However, in terms of responsibilities, those at the bottom are mostly involved with the daily activities of Organizations while those at the top are mostly involved with policy issues and public relations activities. However, that does not mean that it has neglected the other segments such as low-income earners. Developing a vision, mission and values is the foundation for the log term success, as demonstrated by Collins & Porras in Built to Last. M&S is selling product and making sure how these products are being used and disposed by consumer. How Sainsburys have capitalized on their sales. . As a result, it is important for Organizations to ensure that they have elaborate communication strategies to reach their customers effectively. Human resources can be source of competitive advantage. Superior organizational strategy are generated by the top level management whereas the middle level management and lower level management of the company implements objectives and strategies to accomplish the complete strategy gradually. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The database is updated daily, so anyone can easily find a relevant essay example. If done well, differentiation enables customers to purchase specific products or services in a market flooded with many varieties of products and services (Thompson & Martin 2010). It has been analyzed that Marks and Spencer have been working in a highly competitive market where the degree of rivalry among competing firms is high because of the similar price and quality products produced by other retailers in the industry. It can be said that by means of organisations competitive strategy, it can achieve an upper hand in the business market over its rivals. For You For Only $13.90/page! Our store rotation programme is about making sure we have the right stores, in the right place, with the right space and we're aiming to rotate from the 247 stores we have today to . For this reason, these ranges cater to different needs of the customers. The bureaucratic approach views Organizations as being guided by rationality (Stanford 2007). All employees are therefore selected through a transparent and competitive process (Strinfellow 2010). The initiative was designed to incorporate the customers in making decisions about product development. Stuart Machin, the chief. In food, M&S needs to build a clear position as a specialist of food retailer. The external environment analysis pays attention to the factors affecting the company and is often referred to as the macro environment. In each part of the business M&S has a lot of competitors like BHS, NEXT, Burton and Gap. Moreover, M&S should give more importance to the aspect of the internet and online sales. Iraq war was one of the biggest cause of slowing down the UK economy. The management believes in collecting and assigning cost data that is being shifted away from control. M&S News See all articles Today 5:36 AM Similarly, in the food section, although they have retained their market position, sales were less significant - this means that competitors are quickly catching up (Interim results presentation 2004)., The clothing retail industry has been and is undergoing significant changes resulting from processes of globalisation, changes in consumer demand as well as changing corporate activities in terms of strategic marketing decisions. Last accessed 16 May 2011., In this assignment, there will be a critical comparison of the UKs biggest retailers Tesco and Sainsburys, outlining their marketing strategy, the key factors of their success and also the advantages and disadvantages of both companies. Changes like VAT increase and spending cuts should be taken seriously. Marks and Spencer known also as M&S is a constituent of the London Stock Exchange's list and is present in the FTSE 100 Index. Not only has Tesco managed to monopolise the food sector, they have also diversified into a number of other sectors, some of which being insurance, mobile networks, clothing, and electronics. Marks and Spencer acknowledges the fact that consumer is the real king of market. Discuss this statement with reference to the performance of the UK retailer Marks & Spencer over the last 10 years. Although M&S has very good quality of the clothes but on the other hand their clothes are very expensive and old fashioned. The discussion has been described in detail about the core analysis of M&S' internal and external environment, SWOT analysis of M&S has been included. Woolworths started fresh food stores around 80 years back in 1924 at Sydney Australia (Kahwaji, 2014). It did not represent the modern womans taste for a more casual look. It would therefore advise them to engage in charity work as a way of giving back to the community (Jeremy & Steve 2012). Introduction (Drummond and Ensor, Strategic Marketing Management, p. 149, Butterworth Heinemann) Marks & Spencer is a perfect example of a company that had a successful strategy but failed to adapt to the changing environment and have therefore suffered from strategic wear-out. At the local level, it has taken various measures aimed at boosting growth in the UK. A little competition can be a healthy thing. M&S also enjoys a friendly social environment in all the countries where it operates. Companies next have to organize the process of development. Marks & Spencer launched Plan A in January 2007, setting out 100 commitments to achieve in 5 years. In-text: (Sanchez and Heene, 1997) Your Bibliography: Sanchez, R. and Heene, A., 1997. Reinventing strategic management: New theory and practice for competence-based competition. As a business thats been around since 1884, we know how important it is to look to the future. Jones, S.K & Silverstein, B 2009, Business-to-business internet marketing: seven proven strategies for increasing profits through Internet direct marketing, Maximum Press, Gulf Breeze, FL. Jeremy, H & Steve, P 2012, Beyond performance management: why, when, and how to use 40 tools and best practices for superior business performance, Harvard Business Review Press, New York. To compete based on cost, the company must address labour, materials, overheads, and other costs, and to design a system that lowers the cost per unit of the product or service. IvyPanda, 26 Apr. Human resource cannot be imitated and helpful to firms value. M&S is the first company in UK that introduced self customer service. Caring about our impact on the world today and in the future is good business. M&S Plan A is very environment friendly. In second year they have to maintain the market shear and bring something new to business such as Indian, Chinese and Italian food. Marks & Spencer's An analysis on HRM 2. M&S should introduce e-commerce, the use of web-based ordering system. Don't waste time Get Your Custom Essay on "Marks & Spencer Operations Management" One prime issue as a result of globalisation is that there are more and more retailers sourcing globally aiming to provide competitive prices and quality products in the market. Smith, P.A & Cockburn, T 2013, Dynamic leadership models for global business : enhancing digitally connected environments, Business Science Reference, Hershey, PA. Stanford, N 2007, Guide to Organization design: creating high performance and adaptable enterprises, The economist Newspaper Ltd., New York, NY. Responsible sourcing and human rights are fundamental in allowing individuals to lead a dignified and independent life, free from abuse and violation. M&S Quarterly and Annual Revenue Trailing 12-Months Trend (TTM) Annual Revenue $14.3B M&S's revenue is the ranked 3rd among it's top 10 competitors. The friendly social environment has been achieved through the sensitivity of the Organization to the needs of the local customers as well as the provision of very friendly goods and services at affordable prices. are all compete on price, quality, range, and service in order to strive for business success. For instance, their clothing range - especially womenswear - has suffered from lack of novelty. Opening more store and bringing in more variety in the products. However, its main target is women who earn a high income. The telegraph: Analysis: Marks & Spencer making progress, but sales still falling 2014, Web. Despite this fact, the market environment has remained relatively stable, meaning there have not been major changes. Over the last three years, the following are some of the Organizations statistics: According to the projections by the chairman of M&S, the Organization expects to realize the following over the next three years: Some of the factors in the retail environment which have affected the performance of M&S include increased cost of promotions and production, efficient supply chains, inflation, the decline in general merchandise sales, and effective management of promotions (M&S: From transformation to delivery 2014). Doing the right thing is in our nature and as a company, embedded in our values. Over the last 3 years, the marketing environment for M&S has had a mixture of fortunes and misfortunes. M&S has been acknowledged as a legendary UK retailing organization and therefore they are exemplars of best practice in society. Marks and spencer is a public limited company because they sell shares to the public. To serve such a high number of valued customers visiting 600 stores in the UK the company employs more than 75,000 staff worldwide (Company Overview | MarksandSpencer.com) . The basic business pillars of M&S are Trust, Values, Quality, Service and Innovation. IvyPanda. Out of all the stores, two stores were not making any profits, so Company Q has recently closed those two stores. In other words, the Organization operates an online suggestion box, which it uses to improve its services (Bodnar & Cohen 2012). No plagiarism, guaranteed! Iceland is offering wide and best range of food products. The company has good relationship with employees. In other words, the Organization uses Twitter for acquiring and retaining customers (Jones & Silverstein 2009). It is true to say that under globalization, firm will have to meet competitive environment which for some company, it is hard for them to survive, but like what we always know: "competing makes developing" so they . 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