MARKS AND SPENCER

Marks and Spencer

Marks and Spencer

Referring to the case scenario the first objective of Marks and Spencer is to offer customers a selective range of high quality, well designed, and attractive merchandise at reasonable prices. In order to accomplish this Marks and Spencer sells all of its products exclusively under the St. Michael label. The second objective is to encourage suppliers to use modern and efficient techniques of production and quality control dictated by the latest discoveries in science and technology. Marks and Spencer's strategy for achieving this was by employing a large number of scientists, engineers, and support staff whom along with merchandising and suppliers establish product specifications and monitor quality. Another objective is to expand stores for a better display of a range of merchandise and for the convenience of customers. Bevan, Judy (2001) The Rise and Fall of Marks and Spencer, London, Profile Books. Pp. 23-26.

The strategy to accomplish this is by modernizing all of Marks and Spencer stores and adding satellite stores where expansion of existing locations is not feasible due to space restrictions. The final objective is to promote good human relations with customers, suppliers, and employees. The strategy to achieve this is by fulfillment of customer's needs, a strong partnership with suppliers, and a paternalistic relationship with employees. (Lury, Celia 2004 Pp. 77)

These objectives have proved to be successful and Marks and Spencer has grown to be the largest and most profitable retail organization in the United Kingdom. Marks and Spencers has had a consistent record of success and profitability until recently when they were suddenly hit by falling sales. Marks and Spencers were totally unprepared for this and while they were developing new stores and expanding the business their competitors were strengthening. Marks and Spencers has had a consistent record of success and profitability until recently when they were suddenly hit by falling sales. Marks and Spencers were totally unprepared for this and while they were developing new stores and expanding the business their competitors were strengthening. (Bevan, Judy 2007 Pp.65)

Because Marks and Spencers have been highly successful and competitive for so long theirwas no pressure to improve the business and now its competitors have overtaken and underlying problems have arisen, something needs to be done. The business needs a complete overhaul management needs to be streamlined, the business structure needs to be re-organised to make it more efficient and the marketing mix need to be changed to begin with. Measures need to be initiated to boost sales in the clothing sector of the business; new styles and new products could be introduced. Market research into what styles and products to introduce needs to be done to find out what the public wants.

The financial summary shows that the business has more square footage so there are more shops this should mean that turnover goes up, but in 1999 when there is a lot more retail space there is a slight loss in turnover. So the business has increased costs and lost turnover this ...