Analysis of Marks and Spencer

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This is a report on Marks and Spencer a well known retail company in

the UK. Marks and Spencer has also recently been in the news for

falling profit and sales in 1999/2000. So Marks and Spencer is now on

its way to recovery. It’s famous for setting the highest of standards

in the retail industry, pioneering its own charge card and generating

such snob value on its products, yet controlling prices to bring their

products within most people's reach. Marks and Spencer has extended

its brand overseas where it continues to achieve substantial growth.

This is likely to be its main source of growth in the near and long

term future as the company develops its franchise business.

There are around 628 locations for Marks and Spencer’s. The company

makes great weight of how it is run - first class customer service,

operating efficiency (through economies of scale), long-term

partnership with suppliers, financial services, staff rewards and

overall packages the best in the high street. Following a wide-ranging

and detailed strategic review of its business, the Board of Marks &

Spencer has announced significant changes to the Group strategy and

structure. The Board and management team is committed to restoring

profitable growth. This will be achieved by total focus on the

recovery of the UK Retail business.

The organisation has always monitored its performance by first making

clear objectives for the business. Without clear objectives it is

difficult to evaluate what a marketing plan is trying to achieve or

whether the plan has been successful. It is usual to translate

marketing objectives into quantifiable “result areas”, such as market

share, market penetration or growth of sales. Some of these may be

further broken down into specific sales volumes, value goals or

geographical targets. Marketing objectives allow Marks and Spencer to

have a basis for evaluation which can then be analysed after a certain

period of time. Each department most make sure that the organisational

activities are co-ordinated in such a way that marketing objectives

are met.

Every organisation including Marks and Spencer involved in a marketing

activity is faced with a number of constraints which seem to hinder

their performances when monitored. Internal constraints relate to the

resources available for Marks and Spencer, while External constraints

involve a series of factors within the business environment that limit

in one way or another, the organisation’s activities. Examples are

below:

Ø Consumers

Ø Competitors

Ø Economy

Ø The law

Marks and Spencer seem to monitor their performance by being market

focused as they research all these constraints fully and will try to

find solutions that enable it to turn weaknesses into their strengths

threats into opportunities.
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