Common Assessment Question

Common Assessment Question



Common Assessment Question

Marks and Spencer

Operational and Financial Issues

The food division concentrates on four main areas: fresh, natural, healthy food; special celebration products; authentic ready meal ranges and exceptional everyday food such as "Oakham" chicken. It operates a chain of 156 Simply Food owned stores and 194 Simply Food franchise stores in high streets, motorway service stations, railway stations and airports. The clothing section offers women's, men's, children's wear, accessories and footwear. The home division offers home ware, kitchen and tableware, lighting; and furniture products.

The company recorded revenues of £9,536.6 million ($15,272.9 million) during the financial year ended April 2010 (FY2010), an increase of 5.2% over 2009. The operating profit of the company was £852 million ($1,364.5 million) in FY2010, a decrease of 2.1% compared to 2009. The net profit was £526.3 million ($842.9 million) in FY2010, an increase of 3.6% over 2009.

PESTLE Analysis

PEST is a mnemonic for political, economic, social and technological factors. It is the most frequently used tool to analyze the impact of the general environment upon an organization.Political

British political system offers stability and encourages capitalism. Current legislation and market regulations favor M&S´ operations. (Bevan J., 2002)Economic

The consumption of most goods is likely to increase when the economy is booming and it tends to decline during recessionary periods. After the recession of the early 1990s, the UK and many other countries entered a period of sustained economic growth and high levels of consumer expenditure.Social

The requirements of consumers are changeable. For example, the clothing market is particularly sensitive to fashion trends. Lifestyle can also have a significant influence on our eating habits. Understanding these requirements is crucial, if M&S wants to remain competitive and increase its market share.Technological

A substantial investment in technology is necessary to operate efficiently in a competitive market. Modern IT systems can improve productivity and lower the costs (e.g. the use of computer systems has unable firms to automate and accelerate their buying procedures and reduce the supply cycle for all merchandise) Furthermore, customers are increasingly making use of the Internet and firms have to be prepared to offer online services for their home shopping.

Future Projections

The company's main objective is to be at the forefront of fashion, to do this it is also for Marks & Spencer to target specific markets in the clothing industry so that people feel that the store is designed specifically to meet their needs. Due ...