Case Study of Business Strategy Of Marks And Spencer

Case Study of Business Strategy Of Marks And Spencer Marks and Spencer is one of the biggest traders having inheritance of more than one hundred and twenty years. It has more than 895 stores in more than 40 regions all over the world. Its head office is in U.K, in the city of Westminster. Michael Marks from Slonim, Russia and Thomas Spencer a cashier from Yorkshire are the pioneers of this U.Ks biggest retailers. At Leeds (Kirkgate market) in 1884, Michael Marks started his own business by opening a penny bazaar stall. Then to develop his business he opened a shop at Manchester with the partnership of Thomas Spencer. H:st college assingmentsMS assingq no 51201445_MarksSpencerSheffieldHistory.jpg After the death of both the pioneers of the company Michael Marks Simon became the chairman of company while William Chapman took the helm until 1960. During the Era of Michael Simon Company touch the highest point .The business was floated as a public limited company after 10 years. In 1998 it was the first company of U.K who earned the profit of one billion pounds after tax deduction. Marks and Spencer prohibited smoke first time in store that later on became a legal offence to smoke at public places. Marks and Spencer mainly deals in Clothing, Home Ware, Food, Technology, Beauty, Financial Services, Energy and Hospitality. PLAN A: The Customers are becoming more conscious about natural and environmental issues, so for this Marks and Spencer launched plan A, which consists of 180 commitments to overcome the challenges. Many problems are related with Climate Change, Waste Reduction, Ethical Trading, Sustainable Raw Material and Health. To tackle these changes Marks and Spencer is doing much effort. C:UsersFaisalDesktopimagesCAXD7DW8.jpg In March 2010 Marks and Spencer expanded plan A introduced 80 more commitments and added them up with the existing ones. In these commitments their primary focus is on climate changes, waste, natural resources, fair partner, health and well being. These five main pillars are described below: C:UsersFaisalPicturesimagesCAV6T6WW.jpg CLIMATE CHANGE: Due to an increase in greenhouse gases produced by the human activities the earth is getting warmer day by day causing many damaging consequences. In 2006/07 Marks and Spencer cut their carbon emissions to 8% by reducing the usage of energy. Marks n Spencer also committed that up to 2015, they will improve their energy efficiency by 35%. C:UsersFaisalDesktopimagesCA3FRFRV.jpg WASTE: Every year the U.K has to throw away 400 tonnes of waste that comes from construction, industry, households and discarded packaging. The waste that is not recycled ends up in landfill sites which take many years to decompose. Marks and Spencer claimed that in the year of 2009/10 they have achieved the recycling level to 88% while reducing the amount of waste to 16%.They have reduced the food waste by 29% as compared to the years 2006/07.Marks and Spencer collected 133 million clothes hangers and reused 76% of them and recycled the rest. C:UsersFaisalPicturesimagesCAM1CR39.jpg They have also recycled their construction waste up to 89%.Marks and Spencer are committed to do that by 2015 they want to landfill help their customers to recycle or reuse their packaging and products. They will also help their suppliers to reduce the waste and to gain zero rates as well. NATURAL RESORCES: In plan A Marks and Spencer aimed to get as much of their raw material from their natural resources as possible. It is the U.Ks first company who has signed the WWF sea food charter, with 62 % of their wild sea food. Marks Spencer also purchased Green palm certificate to cover all the palm oil to use their Marks and Spencer product. C:UsersFaisalPicturesimagesCAG3OZ2S.jpg Fair Partner: Marks and Spencer has a vision that they are very strong in their communities and ensure good working conditions. Marks and Spencer has the lowest employee turnover rate in UK retail i.e. 14%.Marks and Spencer is offering competitive salaries, discount to their employees, bonuses and share save options to their employees. It provides different training programmes to the employees. Every employee has to undertake Marks Spencer Career Path Training and learning programmes .While the managers have to attend the different workshops to boost their capabilities. Marks and Spencer is trying to provide the best salary packages for the employees. C:UsersFaisalDesktopimagesCAF15VPV.jpg Health and Wellbeing: Unhealthy food is one of the main factors of many health problems. According to the part of the commitment of Plan A Marks and Spencer encouraged its customers and employees to get healthy and nutritious food by developing new product ranges. Marks and Spencer has launched online diet forums and health newsletters to allow active dialogue with the customers on nutrition and health. Marks and Spencer has removed artificial flavours and colours from all of its food products and soft drinks. It has also removed 90% of salt in its products. Very few of the products still does not meet the required standard of health and nutrition but Marks and Spencer is working hard to bring it in line according to the required standard. C:UsersFaisalPicturesimagesCACFVO3Z.jpg Analysis of the external environment: According to plan A Marks and Spencer has also taken into consideration the external environment of the company. External environment means the factors that directly or indirectly affect the internal function and perhaps business strategy and objectives as well. Most common factors of external environment are political, social, economic and technical. These factors are totally out of control of the organisation, but the company could be able to take some steps to overcome these challenges. Basically the external environment defines the competitive situation of an organisation and potentially can have both positive and negative impacts on businesses. Target analysis has four major categories of external factors that affect the companys capability to grow. Based on operation region, external environment is divided into three interactive segments which is remote, industrial and operational environment. External factors produce different influences on the companys productivity. On the ot her hand some influences are inter-linked with each other. For example information technology completely changed the way of work, customer behaviour and life style as well. Based on PEST analysis four major factors are going to be discussed in detail. Political Environment: Political stability in a country attracts the investors to do investment and that is a very key factor to grow business. Secondly, government trade policy, is either flexible or hard. Every organisation operates under the government policy about trade and within the legal frame work. The legal frame work covers many areas like tax rates, employees benefits, wage legislation, trade regulation and tariff. Suppliers, customers and competitors are also affected by the political environment. Economical Environment: Economic conditions also affect organisations external environment. In this regard some factors that influence business are tax rates, inflation, money supply, government need, economic growth rate and the tendency to spend at international and national level. Social Environment: In social context, normally Britain customers lean towards a specific product. In every transaction product quality matters a lot, but it could easily be beaten by offering lower pricing of the same brand. Some fresh analysis about Britains customers is that they prefer some fashionable styles over classic trends. This can be seen in Marks Spencers case because they are still struggling to get a bigger market share. This indicates that British buyers are very keen about their wealth. Technological Environment: Now a days a large number of the population is able to use the internet. It means that by using e-commerce many organisations can widen their horizons and do many more operations. This can be seen in foremost companies like Sainsbury, Tesco and ASDA as well. These days most of the trading and purchasing is done through the internet, and it has also become a competitive advantage of Marks and Spencer. Analysis of External Environment of MS: The U.K retail market is very eye-catching. The company has full support from the government. Because Marks Spencer has rich historic values and has become a very powerful organisation in the business world, new competitors are finding it very challenging to keep up with the quality of products and services that Marks Spencer provide. Analysis of the organisations internal environment and identification: In Plan A Marks and Spencer has taken internal analysis, which is also called SWOT analysis. This is a very important part of business development. SWOT analysis is a simple structure for generating strategic alternative from a situation analysis. SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. In late 1960, Edmund defined SWOT structure. Learned, C. Roland, Christiansen, Kenneth Andrews and William d Goth in Business Policy, Text and Cases (Homewood, IL; Irwin 1969).In the 1980s General Electric Growth Council used this form of analysis. Basically, it throws light on thecompanys strengths weaknesses. The strengths highlight the different aspects that bring results in market value and the weaknesses draw the attention to those areas which need improvements. SWOT analysis is fruitful where you have to tackle a complex situation in a limited time frame. Organisation of an effective strategy is based on a clear definition of the organizations mission. For the success of an organization it requires some necessary ingredients which are listed below: Strategy must be carefully verbalized, applied, manageable and accomplished. Internal analysis of the organisation is an essential part in the strategic planning process. During 2005-06 Marks and Spencer had seventy thousand employees globally. The Company changed the employees structure according to the nature of the customers that used the products and services of Marks Spencer. Marks and Spencer also pledge to promoting equal opportunities regardless of age, disability,race, views about politics, working hours and religion. Marks and Spencer arrange flexible working schedules for fatherhood, adoption and IVF treatment, child and career break to boost their employees uniformity. Marks and Spencer also runs Business Involvement Group (BIG), which is a work demonstration forum in all their stores and offices that inspire their work force to share information and develop discussion about the companys business. If we talk about salary and welfare, the company has some incentive packages that include fundamental fixed pay. As for training, in 2005-06 more than 102,000 days were fixed for training purpose in which Marks and Spencer try to develop inner aptitude and skill of their workers. Marks and Spencer proved that they have great concern about health and safety of their employees by providing a wide range of work related health services. The companys code of ethics is also developing to give guideline to their member concerning their responsibilities towards customers, workers, stockholders, dealers, societies, government and the environment. Identification of the major issues challenging Marks Spencer: Marks and Spencer is one of the UKs biggest traders, giving different services to their customers in the field of food, clothing, and house hold products. They tried at their best level to give good customer service at an affordable price, but it is not always very easy. Marks and Spencer are losing their trend towards the youngstersand their other opponents in the market are taking advantage of this weak point. This is the biggest challenge that Marks and Spencer is facing nowadays. To overcome this weak point Marks and Spencer is also taking steps to provide cheaper products to their customer, but for this they have to import their raw materials, which also lessen the Marks and Spencers image of British Goods Seller. Cards and cash methods have been used for payment since 2001. Marks and Spencer have seen very tough times during the period of recession, but now it seems as though everything is going back to normal. The companys thirteen weeks before the start of OCT (2010) was very hope full. Homeware made an astonishing growth in sales up to 7% and food stuff which was last year 3.6%, this year it increases up to 3.7%.The clothing section is also growing and is the most rapidly expanding sales item of Marks and Spencer. During the autumn the women shoes sales touched a record, which Marks and Spencer claims that it was because of their strong advertisement. External environment and the impact on the strategic direction of the organisation: Strategic direction means those incentives that a company adopts for the achievement of its target i.e. how to produce, develop and sell its products. Basically strategic direction is the planning that an organisation follows for the marketing of its products. Marks and Spencer introduced a plan that they named as PLAN A the purpose behind which is to become worlds most sustainable retailer. For the success of any organisation it is very necessary to keep an eye on the environmental changes that occurs outside the organisation. As these changes affect the strategy of any organisation, it has to alter its rules and regulations according to the environmental changes. There are four main external environmental factors that effect the strategic direction of any organisation. a) Political b) Economic c) Technological d) Social The political condition plays a vital role to put an impact on the strategy of an organisation as it refers to the government policies. If the government introduces new laws and the organisation has some policies or rules and regulations that conflicts with the existing government laws, it has to alter its rules and regulations and make them according to the governments policy. The change in the political condition can affects the strategic direction of the organisation as every government has its own policies and the organisation cannot work against the laws of the country. Economic condition has also a deep effect on the strategic direction of an organisation. The economic condition of any country has a deep rooted effect. It includes taxation rates, economic growth rate and capability to invest at national and international levels. The rapid change in technology is another factor that can affect the strategic direction of an organisation .With the passage of time new techniques and machines are coming up and it is very important to adopt new techniques for the development of a business. In the social environment the consumer plays a vital role to affect on the strategic direction of the organisation. The organisation has to provide the products and services according to the requirements of the consumer. The lifestyle trends, ethical issues, media views, law changes, buying access, brand, religion beliefs, demographics and fashion are the social factors that can affect the strategy of the organisation. What should the organisation do to achieve or maintain competitive advantage in its industries? Competitive advantage: A companys competitive advantages are the features that give permission to do best even in average industry extensive performance and free entry into the industry as a whole. Every company has some definite abilities which make it different from other companies in the same industries. It has some unique competences that cannot be replicated by the opponents. Many companies complete their management price by using effective use of skills to organise their jobs. One example of such a company is Marks and Spencer. This company use technology to locate their goods. The company also use technology to coordinate between different departments. It brings more proficiency and less expenditure, and as a result production cost is low. On -the-counter payment was also introduced by Marks Spencer. It was very beneficial for the company as they need only a small amount of employees, so as a result labour cost was minimized and profit margin were increased. Marks and Spencer with more than 100 years of experience have a competitive advantage over most of their counter parts, because the company earn the trust and reputation among the customers, their workers and suppliers. Their customers have an extensive collection and are fully confident about the companys products and services.They also get value for money as well. Marks and Spencer demonstrates a shared sense of doing things, with their strong inner structure that moves around permanent employment relationships and strong organisational routines. In the external environment Marks and Spencer fully focus on product specification and design to continue their relationship with the customer, which lasts for many years. As part of their business accountability the company has strong conservational and communal responsibilities. TSE Stated that Marks and Spencer use modern methods of management like consumer research, planning, personal management, product innovation, staff training and many more and has proved itself as a founder and outshined among all other companies (1985).Marks Spencer maintain a strong organisational structure that is run by comparatively normal employees who get excellent results over many years, although many changes have occured in the economic environment (1995). Although, over the recent years, due to the big recession the company has had to face downfalls in some of their retailing areas, but they have managed to overcome all their uncertain hurdles through flexibility, that their opponents view as unnerving. According to an analyst Terhi Halme (2008) ,Even though Marks and Spencer has carried out extensive reformation over the past years, the companys competitive advantage has not been fully revived, so the firm could be able to answerable to the current down turn in British retail market. The decline rate during the past few months has been increased in their food unit and as a result revenue has dropped. Because of this, the food sector is also losing its market share. The management have to step up marketing and promotional spending to protect the market share. Additionally the team confidence is also diminish because of changed management, and therefore not been able to generate sustainable improvements. It is possible that Asian and Middle East companies that are in search of western products will take a look at the market shares of Marks and Spencer as presenting buying opportunities at the present price, especially during this recession. Conclusion: Marks and Spencers main aim is to become the worlds most sustainable retailer by 2015. To achieve this target Marks and Spencer introduce Plan A in which it has highlighted five factors to achieve their business goal that is climate change, waste, sustainable raw material, fair partnership and health. There are some internal and external environmental factors that affect the business strategy of the organisation. Internal factors are under the control of the organisation that deals with the strengths and weaknesses. But the external environmental factors are beyond the control of the organisation. Marks and Spencer has also taken initiative to maintain and improve its position. It provides good customer services, using modern techniques, and provides products according to the demand of the customers.

Analysis of Ethics and Values Essay

Values are defined as things that are important and of some value for others. Values are of utmost importance while formulating vision. Importance of value is not just for individuals but organizations also emphasize greatly on its core values and even their vision is consistent with the values of the organization. All the decisions about right and wrong are based on the values that an individual or organization has. Thus it is said that values are the rules that one follows both in personal and professional life. Value shows what is right and what is wrong whereas doing what is right or wrong is determined by ethics. When one says that behave ethically, they mean behave in the right way. (Portman, 2010). By ethics we mean certain standards of conduct that shows how one should behave and fulfill the duties and responsibilities Professional Values and Ethics: Professional values and ethics refer to set of standards of conduct that supports the prestige of various professions that exist in the society. These set of principles indicate that how a particular professional group should behave in the society and what personal qualities they need to develop and in what way they are supposed to communicate at the workplace as well as with others in the society. For example for scientists moral principles involve integrity and patriotism. Justice and sincerity are the ethics for judiciary. Professional ethics become an important part of an organization because it increases the productivity of the organization as it indicates the way people should communicate with each other and the way they should carry out their responsibilities. Ethics for Military Organization Everyone agrees to the fact that integrity, honesty and moral conduct are important elements in a good human being but what people don’t agree is that these standards are applied equally for both personal and professional lives. An employee thinks that as long as his task are fulfilled, his employer should not care about his private conduct and he has all the rights to drinks, cheat take drugs or whatever he wants to do in his personal life. This may be true for the civilian sector but in the military there is different view. They do not tolerate drugs or alcohol. They do not allow sexual involvement with others in the workplace and severe punishments are given for dishonesty. Senior leaders say that for them private and public line are erased they cannot do what they want to do even in private as they answerable for the entire act that they do in private life as well. Military Ethics and Ethical Concepts: Military ethics refers to the code of conduct of military personnel while performing military activities. This concept of military ethics revolves around three sub concepts. The first concept refers to suitable behavior of individual for their profession, proper understanding of their standard mission and the assignments given to them and the right manner through which they can achieve their missions. The second concept underlines the suitable conduct of the military which is based on the fact that military members belong to a specific profession. The third concept specifies proper conduct of military members as a citizen of a free society where people are expected to respect the dignity of humans and adhering to the values of the democratic society. Professionalism Concept: Military ethics is based on complete professionalism which identifies the military members as professionals. Just as all other professionals are expected to perform their duties in a certain manner; the same military members are also required to adhere to the values and principles of the society. Conception of Owing: There are three Os on which the military ethics rely. These include; owing, ordering and to ought. Military officers are indebted to a lot of people such as country people, their families and comrades therefore they should realize that it is a selfless service. Conception of Ordering: Concept of ordering is also very important in military ethics. It is about priorities and moral structures. For example a top ranking officer knows that there is certain defect in a weapon that military requires badly, should the military officer reveal this information to the committee which is analyzing the weapon or he should withhold this information and go ahead in getting the weapon for his men. Here the question of ethics and priority comes. Conception of Obligations: This means what military members ought to do. According to military ethics, soldiers are expected to obey all the orders of the seniors promptly. But sometimes this happen that these orders raise ethical question therefore the military men are usually stuck between obeying the command or doing what is right and needs to be done.

Essay on Analysis of Obamas Speech About Health Care Reform

It is amazing how one person’s hour long speech can change so many American views over our health care system. In 2008, Obama states that an average of 700,000 jobs were being lost per month (Obama). That means almost a million Americans were without a job! Obama later states in his speech that we are â€Å"the only advanced democracy on Earth that allows such hardship for millions of its people† (Obama). That statement is very true especially when it comes to health care issues. If Obama’s predicted outcome of his health care reform carries through, then millions of Americans will be greatly benefited. Obama gives an example in his speech stating â€Å"one in every three Americans goes without health care coverage at some point†Ã¢â‚¬ ¦show more content†¦That is just another perfect example on the average American going into debt due to the failing economy. My favorite statement that Obama makes is when he says â€Å"We spend one and a half times mor e per person on health care than any other country, but we aren’t any healthier for it† (Obama). No one could say that any better! That statement is very true, because America is said to be one of the most obese and unhealthy countries than any other. Many Americans want unnecessary operations and the obese individuals are eating so unhealthy so that in ten years they can go and have a gastric bypass surgery when they could have prevented that in their beginning stages of eating unhealthy foods. So, they will want a good health care provider to help cut the cost of that surgery down when they never should have needed it in the first place. Granted, some Americans can not control their diet; however, they could be seeing a fitness trainer or even a doctor before it gets so out of hand. In Obama’s speech, he talks about how this new plan will not insure any illegal immigrants, but only any American living here legally (Obama). After making this statement a member f rom the audience shouts out â€Å"You Lie!† but I feel quite honestly that he is making a 100% truth statement. There is a way to find out who is here legally and who is not and I believe there are ways doctors, insurance providers, etc. can prevent any illegal immigrant from benefitting fromShow MoreRelatedThe Affordable Care Act Or Aca Is A Federal Statute Initiated By President Obama Essay1582 Words   |  7 PagesThe Affordable Care Act or ACA is a federal statute initiated by President Barack Obama, its intended effects were to supply medical coverage at a low cost to millions of Americans who could not afford access to healthcare. There are a variety of economic and scholarly opinions regarding the ACA’s effect on the healthcare market. 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Kids Must Do More Than Recite the Pledge of Allegiance Essay

Children in the United States go through many years of school reciting the Pledge of Allegiance, but does it encourage loyalty in their nation or fear of it? The years that I spent in school reciting the pledge did little to instill patriotism in me. I do not even remember the words to it. Having a more hands-on approach to community involvement would be a better way to teach children pride for their country. Encourage children to be concerned about their school, neighborhood, city and nation by letting them be a part of their community. It is the job of not just schools, but also the parents to play a part in showing the next generation what true devotion to their country is all about. True patriotism is the selfless giving of oneself†¦show more content†¦Reciting the pledge doesn’t prove loyalty and refusal to recite it doesn’t prove treason. We should take it for granted that our children love their country and nurture those ideas rather than make them recite an unnecessary, therefore meaningless pledge. I wish that my parents and my school did more to show me what true patriotism was instead of just teaching me to blindly recite the Pledge of Allegiance without asking why it was done, or what it meant. I think that if they would have encouraged me to be a part of my community, I would have more loyalty to my nation today. I would want the greater good for my country more so than I do now. Community service is a fantastic technique to show children that there is more to their world than their own backyard. Encourage them to get involved with or even plan community events such as helping to paint over graffiti in their neighborhood, cleaning up trash after an event, or help repair a run-down playground. 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