MARKS AND SPENCER

Strategic Analysis of Marks and Spencer

Strategic Analysis of Marks and Spencer

Introduction

Marks and Spencer plc, also known as M&S, is a world's renowned retailer with its headquarters in Westminster, London. It has more than 300 stores across above 40 countries and more than 70 stores in UK. M&S is famous for its clothes and food products. It was found in 1884 by Thomas Spencer and Michael Marks in Leeds.

In1998, Marks and Spencer was the first British retailer to acquire pre-tax profit of more than £1 bn. However, after few years M&S faced crisis that lasted for few years. Since 2000 the company Marks & Spencer began rapidly to expand and explore other areas: household products, food, furniture, products for beauty, technology, financial services, etc. In recent years, Marks & Spencer stores act as full-scale shopping centres with huge grocery supermarkets, entertainment venues and cafes. The company is covering general merchandise sector and food sector. The general merchandise is divided into menswear, women's clothing, home and beauty. All these units have contributed in shaping up company's vision stating that they want to set a standard through which other company should be measured. These units are centralized by the values of Marks and Spencer. These include trust, service, value and innovation.

This paper is evaluating the strategic position of the organization by looking at the internal and external analysis.

Brand stretch

The company's emblem is powerful, and in 2008/09 Marks and Spencer accept as factual Marks and Spencer can construct on believe it motivates to offer their clients better service and more of what they desire through 'brand stretch'. For example, by boasting in addition to dimensions online; proposing bespoke Made to Measure tops for men; and increasing their in-store hospitality options. Additionally, while M&S will habitually be vitally an 'own brand' enterprise, Marks and Spencer accept as factual Marks and Spencer can add important additional worth, by partnering with visitor emblems that support their values. In last year, this was predominantly with trusted expertise emblems in dwelling, for example Sony and Apple. In nourishment, where Marks and Spencer face powerful affray, clients notify us that time and convenience are key drivers. During summer Marks and Spencer will thus test sale of up to 350 labelled nourishment goods - for example Marmite, Heinz tomato ketchup and other labelled 'must haves' - in the little number of stores. Marks and Spencer will roll this out if successful.

Service and store environments

In supplement to their goods, Marks and Spencer have proceeded to advance value of their service and shop environments. In service, throughout 2007/08their shop colleagues traded record volumes, while simultaneously advancing their tallies in their secret buying events - accomplishing an overhead mean tally of 86%. The company has bought into behind scenes in their IT and logistics infrastructure in alignment to sustain service efficiency. In 2007/08, as well as consigning 13% more supply to their shops than in 2006/07, their logistics mesh answered to the 63% increase in capacity from M&S ...