MARKETING

Marketing Principles





Marketing Principles

Assignment 1

Marks and Spencer is a major leading retailers of the many that deal in food, clothing and home ware in the United Kingdom. This company operates actively in more than forty countries all across the Europe, Asia and the Middle East. This company has its head quarters in the capital city of London, United Kingdom, with around eighty-one thousand people working for it, as of 2012. During the same year, the company's revenues went up as high as £9934 million, which was an increase of two percent over the preceding year's revenue. Marks and Spencer's operating profit, during the same year was £750 million, which was a decrease of around ten percent in the preceding year, (Alexander, 1990, pp. 4). The net profit, on the other hand, that was attributable to the shareholder's equity was around £515 million, which showed a decrease of around sixteen percent in the preceding year.

The company has a reputation of being UK's leading retailer, offering home products, foods and clothing. It has its relations with more than two thousand suppliers from all over the globe. It carries its operations from both, franchise stores and wholly owned stores, (Blois, 2003 pp. 75-95). As of 2012, the company carried its operations in more than 700 stores in the United Kingdom, with more than 350 stores franchised and owned in more than forty places in the world. The operations of Marks and Spencer can be broadly divided into two segments; general merchandise and food. The former can be further divided into two categories; clothing and Home, while the later is divided into natural food, fresh food and others such as, ready meals etc. Marks and Spencer offers its customers to shop for the products through the internet. Moreover, the company also sells its products through high street stores, flagship stores and retail park stores, for that matter, (Collins, 1995 pp. 118-128).

Industrial Analysis of Marks and Spencer

PEST Analysis

Political Factors: The Company has to keep in mind the rules and the regulations that are set up by the government. It has to abide by the laws pertaining to the health and safety standards set up by the British government. It has to assess the risks, consider risk control and has to plan for the identification of the various hazards. If Marks and Spencer doesn't abide by these regulations, it would be forced to shut its operations by the government. According to the regulations, Marks and Spencer was the first retailing company to have gone for the fair trade policies, for both clothing and food. According to this policy, the company will be cutting down fat in the food items it sells, and will also be using eco- friendly material for packaging and for the protection of the animals, (Burt, 2002 pp. 191-219).

Economical Factors: The economic view of the company happens to be uncertain and there are chances that because of this uncertainty, there will be an adverse effect on the sales of the ...