This study examines the Marks and Spencer Group Plc. It begins with the chief aims and intent of the administration and follows with the cardinal characteristics of the administrations Business Environment. It so goes on to analyze the impact of European economic and political integrating in footings of trade.
Marks and Spencer Group Plc was founded in 1884 by Michael Marks with the gap of a Penny Bazaar stall at Leeds Kirkgate Market. Today it is one of the UK ‘s taking retail merchants with over 600 shops countrywide. In add-on to its successful UK concern it holds an spread outing international concern which comprises of over 295 shops throughout 41 districts.
Marks and Spencer ‘s nucleus concern is general selling ( vesture and place ) and nutrient. Its chief rivals are Waitrose, Tesco, Asda and Primark.
2. Define, list and explicate the chief aims and intent of the administration
Marks and Spencer has five key principals which define how it runs its concern these are:
These five principals are cardinal to the success of the concern and they remain as of import today as they have done over the past 125 old ages.
Marks and Spencer ‘s nucleus aim is to guarantee their trade name will go on to offer Quality, Value, Service, Innovation and Trust.
One of the purposes of the concern is to better value, without compromising on quality.
Mark and Spencer ‘s topmost precedence is to take the concern through the recession whilst go oning to put for the long term. Six aims were put in topographic point in November 2008 In order to accomplish this and are as follow:
Retain their market taking place in GM
Better their public presentation in nutrient
Drive their international concern
Optimise borders and tightly command cost
Keep a strong balance sheet
Uphold high ethical criterions
Marks and Spencer intend to be the universe ‘s most sustainable concern by 2015. This mark is to be achieved through their Plan A committednesss.
( 187 )
3. Identify and explicate the cardinal characteristics of the Business Environment
The Business Environment is a combination of internal and external factors that affect an administrations ability to run, turn and go on to be. The Business Environment can be divided into the micro-environment which consists of ; clients, employees, providers, stockholders, media and rivals and the macro-environment which includes ordinances, authorities activities, the economic system, demographics, societal and cultural factors, inventions, and technological developments.
In order to determine the Business Environment of an administration a figure of strategic tools can be used. A SWOT analysis can be effectual in placing an administrations strengths, failings, chances and menaces, whilst a PESTLE analysis can be valuable in analyzing an administrations macro-environment.
( 106 )
SWOT analysis of Marks and Spencer Group Plc
Unrivalled repute for Quality, Value, Service, Innovation and Trust
UK ‘s biggest vesture retail merchant
Top UK retail web site
Diverse scope of merchandises – vesture, nutrient and vino, place and furniture, engineering, flowers and gifts and fiscal merchandises
Leading premium quality nutrient retail merchant
Consumers perceptual experience of M & A ; S is that their merchandises are extremely
Consumers perceptual experience of M & A ; S is that they are non ever in touch with the latest manner tendencies
Decrease in money back warrant – whilst rivals are increasing theirs
Leading stockholders ferocious over Rose and Bolland wage bundles
Growth of international markets – in peculiar India
The universe has an ageing population – M & A ; S ‘s nucleus mark market is already the older coevals
Merchandise variegation into Home Energy Services, Telecoms and M & A ; S-branded cosmetics
Ability to make new mark market through new advertisement runs – aimed at younger coevals
Economic conditions remain unsure
Decline of the high street – due to consumers making more of their shopping online
Competitor merchandise ranges which straight compete with M & A ; S nutrient such as Tesco finest
Competitor Asda to offer 100 twenty-four hours money back warrant on it ‘s George vesture
Coup d’etat commands
( 204 )
PESTEL analysis of Marks and Spencer Group Plc
Cardinal political factors that are of relevancy to Marks and Spencer are as follow:
Government type and stableness
The at hand general elections are to some extent traveling to go forth many concerns experiencing a high grade of uncertainness. Trading will acquire tougher this twelvemonth as revenue enhancements rise and public disbursement falls to convey down authorities debt.
( 51 )
Cardinal economic factors that are relevant to Marks and Spencer are as follow:
Economic conditions affect how easy or how hard it is to be successful and profitable at any clip because they affect both capital handiness and cost, and demand.
( 28 )
Key societal factors that are relevant to Marks and Spencer are as follow:
Marks and Spencer ‘s has ever been seen as an administration whose mark market is the older coevals. The population of the UK and the universe in general is go oning to age. Figure 1 below shows the addition in which the UK population will age by 2033.
( 46 )
Fastest addition in the ‘oldest old ‘
Population by age, UK, 1983, 2008 and 2033
Office for National Statistics ( 2009 )
Key technological factors that are relevant in measuring Marks and Spencer are as follow:
Marks and Spencer were the first company in the universe to utilize radical teardrop trucks. The dawdlers are capable of transporting up to 16 % more burden and the aerodynamic form offers a 10 % decrease in fuel ingestion.
Xerox solid ink engineering helps Marks and Spencer with Plan A committednesss.
( 49 )
Key environmental factors that are relevant to Marks and Spencer are as follow:
Adverse conditions conditions in the UK have had a annihilating consequence on concerns up and down the state.
( 18 )
Cardinal legal factors that are relevant to Marks and Spencer are as follow:
EU statute law has late been introduced to protect the
Marks and Spencer has become the first high-profile retail merchant to be hit by new Prosecco ordinances after 14,400 bottles of its Rosecco trade name were seized.
The market construction of Marks and Spencer can be considered as perfect competition. ( 13 )
Porters 5 FORCES analysis of Marks and Spencer Group Plc
Competitive competition within the industry
Menace of new entrants
Cortefiel: establishing standalone shops in competitory United kingdom market
( 8 )
Dickering power of providers
Dickering power of clients
Menace of replacements
4. Analyze the impact of European economic and political integrating in footings of trade