strategic challenges faced by marks and spencer

There are many other problems which M&S is facing, for example, stores have cultivated the reputation of being too big and too clustered making it difficult for customers to find what theyre looking for. (2011, July 28). These changes in the competitive landscape of UK fashion retailing would cause problems for M&S who were at the same time losing touch with their customer base and new consumer behaviors. M&S clothing market share stood at 13.5% in 1997. The newly launched M&S site has yet to gain a foothold in its own High Street consumers who are currently shopping online with its competitors (The Telegraph, 2014). In 2019, the company's total operating profit before adjustments was 726m. The companys food business is being rivalled by supermarkets such as Tesco, Sainsburys and Asda, and it is competing with clothing and homewear retailers such as Topshop, Zara and John Lewis (Retail Week, 2016). (2009). Marks & Spencer brand perceptions on the rise as it is rated one of the UKs top brands. Considering the operations like stock management, supply management, cash management & capacity management there were many risk or challenges associated with these processes which needed to be taken care by M&S team. The thing that also matters a lot is the pre occupied thoughts of the customer about the product their opinion the purpose. The companys new focus on providing customers with a superb experience including in the online sector on top of its High Street chains has enabled the growth of M&S.com in the last quarter of 2014 (Marks & Spencer, 2015). MARKS AND SPENCER GROUP PLC In September 2017 I took over as Chairman of M&S in the belief that, despite years of decline, a far-reaching turnaround . Monday Thursday 8.30 am 5 pm The M&S website currently has six million online customers and has yet to reach, engage and convert 14.5 million customers who engage with the company only at its High Street stores and shop online with its competitors (The Telegraph, 2014). Strategic Planning and SWOT Analysis. younger customers were also turning to etailers, invested heavily in multichannel during the credit crunch. Marks and Spencer needs to prove itself with overhaul strategy value, quality and services) and the values that Marks & Spencer emphasised on (i.e. Retrieved July 2016, from The Guardian: http://www.theguardian.com/business/2015/may/20/marks-spencer-profits-jump-mark-bolland, Cunningham, T. (2016, May). Here variation can be in terms of cost, quality etc. Retrieved July 2016, from The Guardian: https://www.theguardian.com/business/2016/jul/07/welcome-to-the-ms-merry-go-round. Al-Shabaab calls for attacks on Oxford Street and Westfield centres in new terror threat. To create a more efficient capital structure and improve the potential for a faster rate of earnings growth Marks & Spencer intended to return 2 billion to shareholders by the end of March 2002. (2014, February 18). This growing demand of customers has made it more difficult for the retailers to survive in the market. Discussion On Marks And Spencer Strategic Management M&S working to improve 'outdated supply chains' Marks & Spencer plc is an iconic brand which has been trading since 1884 and is still considered one of the UKs top ten brands today (Vizard, 2015). The customers wont see any difference, whether they own or rent the property in which they operate. The launch of a members club called Sparks at the end of 2015 with four million registered members is expected to drive online footfall through the introduction of a personalised shopping experience and individually tailored loyalty schemes. Online sales remained flat in its financial year to March 28. teething issues as it shifted to a more contemporary style and fit in menswear. Increase franchise space. M&S profit seen crashing 90% in "lost year" of pandemic What were the challenges faced by Marks and Spencer in the competitive environment. The paper "The Major Challenges Marks and Spencer's Facing" highlights that company removed harmful chemicals used in children's clothing and removed hydrogenated fats, artificial colors, favour enhancers, and flavorings from all ready meals marketed by them Download full paper File format: .doc, available for editing In their bid to leave no stone unturned, M&S has also tied up with Indian IT giant, Tata Consultancy Services (TCS) as a part of its 5-year plan. Retrieved July 2016, from The Telegraph: http://www.telegraph.co.uk/business/2016/05/22/the-week-ahead-in-business-and-finance/, Curtis, S. (2015, October 28). This will not only result in the company having to invest in the recruitment, hiring and training of new employees, but also in the company facing the risk of its show how, know-how and contacts (related to current or potential contracts and business) becoming readily available to competitors (Davey, 2016). And they are currently working closely with more than 20 companies around the world, to help them exploit the potential of the Marks & Spencer brand in their local territories. Sales of suits have also fallen off a cliff and unsurprisingly M&S tie sales were 98 per cent. The greatest of all the issues faced by the global supply chain is the sudden and ever changing preference and taste towards a particular product. As regards its clothing business, the threat of substitutes is high copying or imitating existing designs is becoming ever easier. Brand Management : Clear guidance is provided on how to use the Marks & Spencer brand to ensure maximum impact. FOR OVER 135 YEARS OUR EXTRAORDINARY COLLEAGUES AND CUSTOMERS HAVE FACED. All Rights Reserved, Essay on School Violence Trauma: Bullying. (12 March 2008). In the case of M&S, the company has placed considerable emphasis on its social agenda. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. At the end of 2015 the company had to temporarily shut down its website due to a security breach (Curtis, 2015) and in 2016, poorly integrated IT systems in the company are still being experienced. In addition, the recent Brexit vote is likely to have a substantial impact on the retailer in both its home stores and abroad. During the financial crisis of 2008, while competitors such as Aldi, Asos or Tesco followed a strategy of discounted pricing, M&S emphasised higher quality products and better consumer satisfaction (The Marketing Society, 2010). So they decided that they will only sell their products, not like before, where they used to sell the products Orange mobile phones. Due to a comparatively higher cost structure, the company has also suffered market share losses when entering new markets (Marks & Spencer, 2015). M&S management headed by Rowe has come up with various quick solutions to cut down on costs and increase profits. In light of the above concerns, this essay critically evaluates the key issues that Marks and Spencer faced in developing and implementing its strategic plan. Analysis of the Current Strategic Situation facing Marks & Spencer On revenues of just over 6 billionn, the adjusted operating profit in food came in 11.2% up at 237 million. Sample Report | The Strategic HRM of Marks & Spencer - 15 Writers However, the latest respective operating margins (3.9% in food and 7% in clothing, the latter down from 10% the previous year) demonstrate how important it is for M&S to focus on restoring and enhancing its fashion credentials which remains their biggest challenge. The challenges facing Marks & Spencer's new chief This paper examines Marks & Spencer Plc an iconic brand and one of the UKs leading retailers. Therefore one who is doing business should know how to impart different branding techniques. The company is losing key employees to its main competitors, including product developers, food technologists and General Merchandise design team members. Retrieved July 2016, from Marks & Spencer: http://corporate.marksandspencer.com/blog/stories/thinkinnovation-how-we%E2%80%99re-encouraging-innovation-across-mands%E2%80%99. The changeover to Ocado is the centrepiece of its plan to boost its online business and draw younger shoppers. Demand used to be covered with in the time constraint. Last accessed 30 Dec 2009. Following were the main performance objectives. Retrieved July 2016, from Monica Krish: https://monicakrish.wordpress.com/category/porter-five-forces-analysis-fortelecom-industry/, Macalister, T. (2015, July 16). Marks & Spencer plans to spend 200 million over the next five years on going green strategy as the battle to become the most environmentally friendly retailer steps up. Following the return of cash to shareholders, Marks & Spencer retained the financial strength and flexibility to fund future growth. Whilst this strategy led to a short-term decrease in sales, it resulted in a long-term increase in consumer confidence due to British customers preference and desire to seek both value and quality. M&S offers clothing, home products and luxury food products both in store and online (Marks &Spencer, 2015). PDF FOR OVER 135 YEARS OUR EXTRAORDINARY COLLEAGUES AND - Marks & Spencer Thats not to say they turned their back on younger shoppers. If you need assistance with writing your essay, our professional essay writing service is here to help! Threat of new entrants (barriers to entry). In addition, the company experienced technical difficulties and privacy breaches on its website when introducing their members club and card scheme at the end of 2015, leading to a temporary website shutdown (Curtis, 2015). M&S performance graph has been low for the last decade or so. Its very necessary that the customers have a firm belief in the organisation and for this to happen its necessary that the pricing strategy of the organisation dont vary much in respect with other retail stores in the market. The international franchise businesses of M&S in the Middle East, Russia and Ukraine also suffered significant decline due to geopolitical instability, local currency fluctuations and decreased consumer demand (Marks & Spencer, 2015). Keep an eye on the expiry date of the stuffs. Further investments are being made in GM IT systems and a logistics network with the aim of delivering better supply chain flexibility and customer availability. Marks and Spencer is continuing to roll out an improvement programme to address "outdated supply chains" after posting losses of 201.2m. Operation Management plays a vital role in making or breaking of an organisation. Marks & Spencer. M&S is to become Ocado's key partner from the end of August and will offer 2,000 more food products than Waitrose, which currently works with the website. Major Issues Challenges Facing The Mark Spencers Marketing Essay To do that they focused their teams on the classically stylish, core customer. Further listed are the main issues that were awaiting the management team of M&S, There was a lack of product variation it was a major issue since they got wedged up with the same product for quite a long it was the need of the hour to bring in a variety in the list of the product, To stand in and make a mark in this growing industry its essential to have an excellent relationship with the concerned customers. Strategic issues faced by Marks & Spencer and how it plans - LinkedIn In 2015, this strategy helped the company maintain its market share in most of its markets and achieve strong sales in key owned markets such as Hong Kong or India (Marks & Spencer, 2015). and was formerly known as St. Michael. Dentons. Despite several setbacks in its in-store service, such as an increasing number of out-of-stock items (Ruddick, 2016) and online service (Curtis, 2015) M&S is investing in customer service. The company has closed its smaller regional warehouses and in 2010 it opened a super warehouse in Bradford. Retrieved July 2016, from BBC: http://www.bbc.com/news/business-22104228, Brignall, M. (2016, January 5). Welcome to the M&S merry-go-round. In the industries within which M&S operates, customers bargaining power is high. M&S raises the stakes in battle over current accounts. It is one of the largest British retailers that sold clothes, home furnishings, food, gifts etc. The Company intends to close its loss-making business in Continental Europe, affecting some 3,350 jobs, subject to consultation. Everything from M&S must be distinctive and must conform to the Companys uniquely high standards. London: Routledge. M&S shares closed up nearly 31p, or 12%. The idea of this detail is to estimate how they help themselves to survive in this ever changing market scenario it also analysis the SWOT of M&S. The main values considered by the Marks and Spencer marketing strategy include services, quality, trust, and innovation. Purpose: This Impact Pathways paper aims to provide a timely and structured discussion of real-world problems at Marks & Spencer and in retail in general, evoked through the current COVID-19. Introduction The proposed study is focused on analyzing the concept of Marks and Spencer strategic management. The company has traditionally invested in TV and magazine advertising as well as in-store visual merchandising. It is expected to launch a redeveloped Bradford National Distribution Centre in 2016 (Marks & Spencer, 2016). So its a must that the companys customer service must be absolutely excellent at dealing with the customers. Approximately 50% of John Lewiss sales are made online compared to just 20% of M&S clothing and home sales. Generation X women experience age in seven different ways according to a new study by Nottingham Business School (NBS), part of Nottingham Trent University. Strategic Analysis of Marks & Spencer Plc | Ivory Research Continuous investment in the scheme has resulted in numerous Plan A products, a Plan A incubator for the development of sustainable products and services as well as the first UK ecofactory (European Commission, 2011). Since M&S does not depend on any one particular supplier chain, its bargaining power in this regard has always been low. Marks & Spencer plc is known through its 1,382 stores worldwide.
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