...Executive Summary M&S as an organization has faced a number of challenges in its 130 year existence, but has successfully weathered each challenge as it presents itself with relative aplomb. The foundation upon which the whole business has rested since its inception in 1884 was in its initial form, involved selling carefully chosen, good quality goods with low margins, and achieving volume sales (relatively speaking, at least) through Michael Marks' Penny Bazaars in the North West of England. This strategy was overwhelmingly successful, and continued to be the central tenet of M&S strategy for many years. M&S sailed through the depression and several recessions, but at the end of the 1990's something went severely wrong. Profits were falling year on year and the footfall in the stores was lower than it had been for several years. From the year of 1991 to 1998 it started to regain its profit again. But from 1999 the situation started to worsen again. This report sets out many of the reasons for that failure then concludes by suggesting and evaluating the strategic options open to the organization going forward. The report concludes that drawing on the substantial capital resources of M&S, brand and product development are the appropriate measures to take in order to put M&S back on the retail map. 1|Page Part 02 Strategic Profile and Case Analysis Purpose Strategic Profile The case study provided several descriptions on the basic elements of the company. It has been...
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...Planning of Marks and Spencer Group Executive Summary: In this report a step by step analysis of Marks and Spencer group strategic planning is presented. Mark and Spencer is one of the biggest retail company in UK and leading company producing women apparels. The report is begun with analyzing various external environment of the company that includes STEEP analysis and it helps to understand the external environment of the company. After that the report covers the business plan of the company with its strategic planning section, and how the company is able to implement its strategic planning. Whereas the focus of strategic planning is on the whole organization and the focus of the business plan is on a particular product or service. Contents Executive Summary: 2 Introduction and Company background: 4 Task 1 5 1.1 The importance of external factors affecting Marks and Spencer Group: 5 1.2 Analyze the needs and expectations of stakeholders of Marks and Spencer Group: 7 1.3 Analyze the major changes taking place in the external environment that will affect strategy of M&S: 8 Task 2 8 2.1 Use appropriate tools to analyze the effects of current business plans 8 2.2 Review the position of M&S in its current market 9 2.3 Evaluate the competitive strengths and weaknesses of M&S 10 Task 3 10 3.1 Use modeling tools to develop strategic options for M&S 10 3.2 Develop a comparative understanding of activity from organization which competes...
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...2.The Situation 3 2.1 Background of M&S 3 2.2 A Fiercely Competitive Clothing Market of M&S 3 2.3 The Rationale: Why does HRM Contribute to Increasing Competitiveness? 4 3 Analysis of Current Situation 5 4. Respond to the HRM Weakness 9 5. Evaluation on HRM Approach Implemented by M&S 10 6. Conclusion 11 References 12 1.Introduction In recent business environment, competition has become a core issue due to its crucial impacts on company development in terms of market and profits. This dissertation will introduce proper and effective strategies to overcome the problems so that the company would be turned into higher competitive stance. Additionally, this article aims to analyze the competitive environment from both internal and external of Marks and Spencer plc (M&S), to evaluate the reasons why it has gone wrong ever since 1997 and to identify how the changes of human resources management could help M&S sharpen its competitive edge. This paper is divided into four parts. The first part focuses on the background M&S has been facing ever since 1997 that the company is suffering from a great crisis. The current situation is analyzed in the second part by using the SWOT model to examine the positions and environment of M&S. The third part emphasizes on discussing the human resources management policies that M&S used to respond the weakness discussion during the SWOT analysis. The final part aims to evaluate the HRM...
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...An analysis of the results of For the year ended 2nd April 2006 Report devised and prepared by Duncan Williamson www.duncanwil.co.uk May, June and July 2006 3rd Edition Marks and Spencer Analysis Introduction This article concerns Marks and Spencer and came about following the publication of their annual financial results. There is nothing extraordinary about the results apart from two things! • • They were very big news in the business and ordinary press They have been prepared under International Financial Reporting Standards rather than under UK Financial Reporting Standards The second point took me a little by surprise for the simple reason that it didn’t seem to cause a fuss. I expected a few more explanations by accountants and analysts over the restatement of 2005’s results and the potential impact on 2005 and 2006 and beyond of the application of IFRS. Of course, M&S published comparative figures for the IFRS based results for the latest year and they restated the previous year as they should. However, I seem to be the only person who is worried or concerned or bothered in the slightest about the potential for smoke and mirrors lying behind some or all of what was revealed. Why am I worried? Well, M&S is still trying to work its way out of a fairly tough trading period and coming at the end of the transition to IFRS I wanted to hear what analysts thought about what I was worried about. This is the second edition of this article and the final section...
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...and group revenue of £9.7bn in 2011, Marks&Spencer (M&S) is one of the most important UK retailers. Expanded all across Europe, Asia and Middle East, M&S has a store network of 152 wholly-owned and partlyowned locations and 209 franchises (2011), transforming more and more into a strong international business presence that offers great value clothing, extremely high quality food and a variety of home products. M&S strategy is to become a global multi-channel retailer (Bolland, 2011) in order to reduce its dependency on the UK market conditions and economic climate and to create a powerful brand serving a worldwide customer base. With an extraordinary understanding of customers selective needs based on a complex combination of market analyses and research feedback to identify trends and factors influencing their choices and decisions, M&S provides quality, value and innovation, positioning customers at the heart of the entire business. This report presents an overview of M&S activity and perspectives using a) a comprehensive PESTEL analysis to point out the trends and the environmental influences affecting the business, b) Porter’s five forces framework to explore and evaluate M&S attractiveness, c) a detailed SWOT analysis to highlight the company’ main advantages and hot spots and to identify any opportunity it can capitalize on and challenges that may endanger its future evolution and d) a value chain analysis. PESTEL Analysis According to Fahey and Narayanan (1986), macro–environmental...
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...which includes: The company at present, Background of the Study, Case Background, Problem, SWOT Analysis, Alternative Courses of Action, Recommendation, Conclusion. A Case Study on Marks and Spencer The Company at Present Marks and Spencer has over 450 stores located throughout the UK, this includes the largest store at Marble Arch, London. In addition, the Company has 150 stores worldwide, including over 130 franchise businesses, operating in 30 countries. Background of the Company * Marks and Spencer (M&S) of Britain (often referred to as Marks & Sparks by locals) is a general retailer that sells clothes, gifts, home furnishings, and foods under the St. Michael trademark in the UK, Europe, the Americas and Far East. * The company also operates financial services segment, which accounted for about 3% of the company’s 1998 profits (Dow Jones Industrial 1999) * Marks & Spencer started as a stall in 1884 by Michael Marks in the Leads market using an L5 loan from a wholesaler * Its philosophy is to sell durable merchandise at a moderate price. It has merchandise made to its specifications. * By 1901, the company acquired 35 Outlets as well as a new partner, Tom Spencer * By 1949 all the company’s stores carried mostly private label (St. Michael) products produced by British suppliers (De Nardi-Cole 1998). Case Background * Britain has often been called a country of shopkeepers, and Marks & Spencer (M&S) is undoubtedly the shop...
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...EXCUTIVE SUMMARY Marks and Spencer Group plc (M&S) is one of the famous British retailers in the world and the largest clothing retailer in the UK. Unfortunately, M&S did not change their strategic to adapt to a continuously changing economy, so that it suffered from strategic drift. From 2000, Luc Vandevelde and his management team attempt to turn the business around, with M&S’ unique resource and competence. This report identifies and analyses strategic capabilities and competitive advantages of M&S by using “threshold and distinctive capabilities” table and value chain model. Following this, there is a ratio analysis from 2000 to 2006, including Return on Capital Employed, Return on Assets, Net Profit Margin, Current Ratio and Debt to Asset Ratio. It also provides recommendations for M&S management which believed it vital for M&S’ obtain sustainable development and success. INTRODUCTION Marks and Spencer Group plc (M&S) is one of the British leading retailers and it specialises in the selling of high quality cloths and food. Since it was founded in 1884, and till the late 1990s, M&S is popular brand base on its unique strategic. However, the manager of M&S did not change its strategic to keep pace with the highly competitive economic environment, so that it lost its sales and market share to competitors. According to the case study, things started to improve since the CEO Luc Vandevelde changed the management style in 2001. He...
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...4 Factors affecting financial Performance: 5 Analysis of Data Available 6 Revenue and Growth: 6 Profitability Ratios: 6 Gross Profit: 7 ROCE: 7 Net Profit Margin 8 Net Asset Turnover 8 EBITDA/Capital employed 9 Activity Ratios 9 Debtor days 9 Creditor days 10 Stock days 10 Cash Conversation Cycle 11 Sales/net current assets 12 Liquidity ratios 13 Current Ratio 13 Quick Ratio 13 Gearing Ratios 13 Capital Gear Ratio 13 Debt/Equity Ratio 14 Interest cover and interest gearing 14 Investor ratios 14 Return on equity 14 Dividend per share 14 Earnings per share 15 Dividend cover 15 Price/earnings ratio 15 Dividend yield 15 Earnings yield 15 Appendix: 18 Key Facts 19 Introduction Mark and Spencer: History: The foundation of Marks and Spencer plc was laid when Michael Marks, a small retailer, entered into a partnership with Tom Spencer, who was a cashier at a wholesale company, in 1894. In 1901, they acquired a warehouse in Manchester and in 1904, acquired retail premises in Leeds. In 1914, when the company was being run by their successors, Marks & Spencer bought the Penny Bazaar Company in London. In 1920, they adopted a policy change, and instead of buying from wholesalers started buying directly from manufacturers. In 1926, they started selling textiles, and in 1930 opened their flagship store at Marble Arch in London. Their food department was opened up in 1931. Between 1930 and 1955, the company tried many innovative things such as opening...
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... Christian McKinlay 32851855 Demetris Messios Shivani Modasia Content: | Page | Executive Summary | 3 | Introduction | 4 | Company Analysis | 5-7 | Event Analysis | 8-10 | Competitors Analysis | 11-13 | Conclusion | 14 | References | 15 | | | Executive Summary: Marks and Spencer has been described in the "FTSE UK Series, which measure the performance of the 100 largest companies traded on the London Stock Exchange that pass screening for size and liquidity, as a nationally recognized, well-established and financially secure company" (FTSE.com). Although Marks and Spencer has a good financial position and reputation in the market, there are times where the price of its shares fluctuate as on the 27th February UBS – a financial services company - included Marks and Spencer to its “buy” list, as a result the share price of Marks and Spencer raised from 353.4 to 360.1 (Financial Times (a)) and there was a fall in the share price in the beginning of October, mid November and at the launch of March caused by the fall in the market value. The increase in Marks and Spencer share price on the 27th February and the UBS decision to put M&S on its buying list could be linked to announcement of the Interim Management Statement on the 10th of January which indicated the glowing performance that M&S done in the 3rd quarter of its financial year. Marks and Spencer have many competitors, Sainsbury’s as they offer same standard of Marks and...
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...Spencer IB209 Marketing Analysis Anshul Maini 1036526 Marks and spencer also called as M&S and Marks and Sparks was found in the year 1884 by two people Michael Marks and Tom spencer (Bevan, 2007). Ever since then marks and spencer has delivered goods of the best quality and now to day it stands as one of the best retail chains in the UK. They primarily deal in Clothing and food. The company is headquartered in London, UK and is the one of the biggest companies in the world. It’s ranked #725 in the Forbes 2000 list (Marks and Spencer on Forbes 2000 list, 2011) and is amongst the top 5 retail firms in the country. Currently the chairman of the company is Robert Swanell and the Chief Executive is Marc Bolland. (Annual Report, 2011). Over the years Marks and Spencer has gone through ups and downs. It is the first British Retail firm to make a Profit before tax of over £1 Billion which was in the year 1998.After that the company had hit rock-bottom which was due to heavy competition and the company’s inability to satisfy its customers, it went into heavy losses in its turnover. After amending a few policies and the change of the Chief executive, the company looked more closely at the customer’s needs, wants and demands and modelled their strategies around it, thus rising it from the ashes. However again in 2008, the company went into a credit crunch which was mainly because of the recession. (M&S shares dive on gloomy outlook, 2008) (Bevan, 2007).Although M&S has faced many challenges...
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...Introduction I chose topic 8 because analysis and interpretation of business and financial performance has interested me and I want to learn more about and it is the topic I feel most comfortable with having completed my ACCA studies. Writing reports and analysing business performance was covered in papers F7 and P3 and through this report I will have the opportunity to enforce practically the knowledge acquired. Moreover undertaking this research project will improve my performance at work and enhance my professional and communication skills. I work in accountancy practice and this project will be invaluable experience. I decide to write a research project on Marks & Spencer plc. and the reason being is that I had carried out an investigation on this company before and I have preliminary knowledge on its activities and the sector in which operates. Marks & Spencer is well known and reputable retailer which I personally favour as a customer. Marks and Spencer Group plc. is an international multi-channel retailer with headquarters in London, in the City of Westminster .It carries out the retailing of apparel, home products and food items. It was started as a Penny Bazar 1884 in Leeds selling only British made goods (Enc. Britannica,2004) As of 30 March 2013 the Company’s product were sold through 766 UK stores and 418 stores internationally (www.marksandspencer.com, 2013) 1.1.2 The reason for choosing the John Lewis Plc. as the comparator company John Lewis was selected...
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...evaluationn of costs and benefits of the marketing orientation. Marketing is a procedure of planning and conducting ideas and strategies in order to satisfy consumers and organizations. The marketing process contains: * Situation analysis * 5c analysis. Company, customers, competitors, collaborators, climate. * PEST analysis. For macro-environmental political, economic, societal, and technological factors * SWOT analysis. Strengths, weaknesses, opportunities, and threats-for the internal and external situation. * Marketing strategy * Once the best opportunity to satisfy unfulfilled customer needs is identified, strategic plan for opportunity can be developed. * Marketing mix decisions * Product development- specifying, and production the first nuits of the Product * Priming décisions * Distribution contacts * Promotional campaign development * Implementation and control At this point in the process, the marketing plan has been developed and the product has been launched. Given that few environments are static, the result of the marketing effort should be monitored closely. * The advanatges and disavantages of marketing orientation are A company with a marketing orientation has a strategic focus centered on awareness and understanding of the marketing concept. The marketing concept indicates that building long-term customer relationships requires putting the needs and wants of...
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...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: 1 WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience ...
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...Ola abiola 11634 Business strategy INTRODUCTION Marks and Special background M&S otherwise known as Marks and spencer was founded in 1884 by Michael Marks was born in 1859 in Slonim, Belarus. In 1882 ,he moved to England to escape anti-Semitic discriminate , but had few friends and little money. He came to Leeds, a growing industrial town with a population of over 160,000. He was attracted by its large Jewish community and job opportunities in the thriving clothing trade. At the time Marks couldn't speak English and had no money or particular skill but had a very sharp mind for business and understood what customers wanted and needed . Initially he travelled the towns and villages of West Yorkshire, selling wares from his bag. He later set up a permanent market stall in Leeds, the latter which developed into a successful retail business. Unusually, he always displayed all his goods with clearly priced labels. He started hiring sales assistants to run the stalls. , Selling simple stock such as haberdashery and hardware goods, he adopted the slogan 'Don't ask the price, it's a penny'. This fixed price system and the open display of goods made him very popular. In Leeds as Customers liked being able to inspect the goods and knowing exactly the cost, with no need for haggling. In 1890 Dewhirst a cloth manufacturer offered Marks a £5 loan with this Michael Marks was able to buy his first stock for...
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...MBA 405 - Global Organisational Environment Content |1. Abstract |Page 4 | |2. Task 1: Learning log |Page 5 - 12 | |3. Task 1: Summary of academic journal |Page 13 -14 | |4. Task 1: Reference |Page 15 | |5. Task 1: Indexes |PDF file | |6. Task 2: Marks and Spencer operation report |Page 16 - 26 | |7. Task 2: Reference |Page 27 - 28 | ABSTRACT MBA 405 - Global Organisational Environment Probably everyone will agree that at the beginning of the 21st century, the impact of globalisation on countries, societies, businesses and individuals have been much more evident than ever before. Especially for businesses and organizations, globalization has impacted considerably on the way businesses are operated, managed and developed. Success of businesses and organizations have been so dependent on how well and proactively they have responded to the global organizational environment...
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