STRATEGIC MANAGEMENT

STRATEGIC MANAGEMENT



STRATEGIC MANAGEMENT

Introduction

Marks & Spencer is one of the UK's major suppliers of outfits, foods, home ware and financial services, offering a regular usage of thousands of products in hundreds of UK shops. Marks & Spencer works in 30 nations globally, and has net income of £8 thousand.

The company has battled, compromising its renowned top quality and personnel friendly lifestyle to make the personal financial savings needed to keep revenue growing. M&S problem started in Oct 1998 when it stopped its development program in European countries and The united states (Alexander, 1990). In November that same year M&S declared a 23 percent decrease in first half revenue producing its stocks to fall drastically- this was organized responsible on a strong aggressive atmosphere from its opponents who were providing identical priced products, yet more design focus with up-to-date fashion, and of which compares could be made against the more conventional M&S products. (Nardine Collin 2004).

PESTEL Analysis

Social

Changes in customer flavour and way of life signify both possibilities and risks for the market. Opportunities with regards to new market and customers, however, there are added risks with regards to social acceptance to alcohol (Alexander, 1997).

Political

Due to the global financial crisis, the taxation and wages has increase. Moreover, due to inflation the purchasing power has decreased causing low profit margin and production, because of less demand.

Economic

The Retail store industry is at economic downturn prawn and very delicate to changes in rates. Since the activities of Sept Eleventh the community financial systems have experienced intensely, the company shares dropped; however, the prices of the products that it sells remained same along with other operations. The community economic climate is however, now on the up post Sept Eleventh. Customers are positive and the retail market is once again flourishing.

Technical

Changes in existing methods as such clothing sales via the Internet is now a habit in going. Electronic function, the management and management of the company are performed on IT systems, which are utilized through secure servers; provide versatility in the running of the business.

Environmental

Currently, the system changes fast, and most companies has designed their own websites, websites, and directories to help them to increase their revenue from on the internet clients. They gather details and analyze their clients to know their consumer's needs and wants (Beaver, 2001). Therefore, M&S has spent such as website in 1999. In addition, most shops in the UK and European countries were running a test of the EPOS (Electronic Point of Sale systems).

SWOT Analysis

Strengths

High Quality

High quality is the major factor that makes the product's image in the market. Clients always discover high quality products such as fruit, clean veggies, and other excellent products in M&S's foods lounge (Briggs, 1992). With many individuals turning to eat veggie foods, M&S has grasped the consumers' need. M&S has high quality of items that baby items and some women lingerie.

Customer Services

M&S has high popularity for concentrating on customer assistance (Kay, 2005). This is one of the most important methods ...