Choose one FTSE 100 company that has restructured either its business portfolio or its financing within the past ten years and perform the following tasks:
analyse the reasons for the restructuring and ;
assess the outcome of the restructuring using company and other relevant data
Marks and Spencers: Company Reconstruction Analysis
The restructuring and re-engineering taking place in organization as part of revolutionary process to realign resources with organizational goals. By continues improvement in process and communications, organization will maintain its reputation. And by advertising and public relations (PR) can gain competitive advantages and lead the other competitors in the industry. Many changes have occurred in recent years. The movement for this change has probably been Strongest in organizations such as the large, globally companies in their search for international integration of their promotions.
One of the big organizations in the retail business is Marks and Spencer (M&S). It is one of the UK's leading retailers of clothing, foods, home ware and financial services, serving 10 million customers a week on over 300 UK stores. M&S is headquartered in London, UK.
M&S has been through a lot and faced a lot of struggles. Troubled in recent years and suffering from slipping market share, the company had divested itself of non-core and overseas interests and had begun to show signs of improvement. By understanding M&S's strategic position, it will help to understand their marketing plan as they are directly connected to each other. It is best to start by analysing; SWOT and PEST analysis as a way of the strategic capability of an organisation. Second, an external analysis will be recognized
Background to Marks and Spencer Plc
Marks and Spencer (M&S) was founded by Michael Mark, which became one of the most recognised brands in the UK and across the world eventually. Michael has form a partnership with Tom Spencer in 1894. Both partners died in 1900s leaving the business to be succeeded by Michael Mark's son, Simon and Israel Sieff, who together established a business philosophy based on quality, value and service and cooperation with customers, suppliers and community. (Johnson; Scholes, 2002). They became a public company in 1926. M&S principles are quality, value, and service. 'Lord Marks was obsessed with the product he was selling and the service he was giving (Bevan, 2002).
Problem Area in Marks and Spencer
By conducting a SWOT analysis (See Appendix 1), areas in microenvironment will be identified. This considered a starting point for the MC plan is assessing M&S's current situation. In addition, the use of the PEST analysis (See Appendix 2) provide the external factors or macro-environment which any organization can be affected by and should take into consideration in their situation analysis.
Strategic capabilities and proposed marketing position
From the findings of the SWOT analysis that the marketing strategy that is implemented by M&S (Rose, 2004), does not cover all the opportunities that are open to the company such as the development of online retailing, database marketing options. Besides, it does not specify the way the company will improve its ...