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Case Study - Marks & Spencer

University: The University of Northampton Northampton Business School

  • Unit No: 9
  • Level: Diploma
  • Pages: 10
  • Words: 2500
  • Paper Type: Case Study
  • Course Code:

    BMA547

  • Country: UK
  • Downloads: 0
Question :

Explanation of complexities faced by the business of multinationals.

  • Researching key challenges faced by international business.
  • Explanation of ways in which resources are being utilised by businesses operating at a multinational level.

Demonstration of reflection of own skills.

Answer :
Organization Selected : Marks & Spencer

INTRODUCTION

Every organisation that operated their business operation in competitive market has their own strengths and weaknesses which affect their stability among their rivals as well. The management of an organisation are thus held liable to identify their actual strengths and weaknesses so to improve them through making an effective decisions and strategies. The present study is based on Marks & Spencer, one of the largest retailer company which deals in providing expensive clothing, home and food products to the people of United kingdom and across worldwide. The present study includes strengths and weaknesses of M&S company along with the strategies that will be formulated to gain competitive advantage. Strategic process model has also been discussed under this study (Cairns and et. al., 2010).

PART A:

Evaluating the internal and external strengths and weaknesses of M&S

M&S company is a multinational UK company which deals in offering clothing, home and food products across worldwide due to which they attain strong brand image in competitive market environment. Therefore, in order to maintain their exist brand image the management are liable to analyse the internal and external strengths and weaknesses so that they are able to take corrective measures in order to improve them so as to achieve competitive advantage as well. Fro this, the management of M&S need to conduct SWOT analyses which are as follows:

Human resource: As M&S is multinational retailer company who operated their business operation across worldwide. Therefore, to operate business functions in different countries the company has attained large number of employees. According to the international report, it has been observed that the company has attained more than 84,939 employees in 2017 which contribute more efforts in achieving growth and success of an organisation (Charles, Bustard and Black, 2011).

Financial resources: M&S deals in multiple products such as clothing, home and food products due to which they have generate huge revenues every year. According to the report, M&S becomes the first British Retailer who made pre-tax profit of over £1 billion in 1998. The company has generated 9.536.6 million profit during every financial period.

Company's image: M&S is one of largest retailer and responsible business has been easily recognised by the customers of different countries. The company has also been awarded as Top retailer company in the year 2006 which increases their brand image in competitive market.

Weaknesses:

Poor management: M&S have an ineffective management ho sometimes failed to recognise the changing market trends due to which their sales may affected. As the taste and preferences of customers changes frequently which need to be identified on regular basis and provide quality products and services accordingly. If failed then it will make negative impact on company's customer strengths.

Focused on brand rather than products itself: M&S attained strong brand image in competitive market on the basis of which they provide products and services. Thus, they are not focused on enhancing their quality of their products due to which customers may show less interest in purchasing their products (Docherty and et. al., 2010).

Lack of marketing strategy: The advertising strategies of M&S has been poor due to which their sales goes down even during Christmas. This will negatively impact on their revenue as well.

Opportunities:

Changes in technology: The management of M&S should required to implement advanced technology in their process of executing business activities due to which their production cost has also been minimised. It also help in producing quality products due to which they can able to attract large number of customers through providing goods at an affordable prices. Therefore, the management of M&S required to invest funds in adopting modern IT systems and advanced technologies which help them in reducing cost of process of different business activities.

Producing cloths on the basis of their age: As M&S fails to attract interest and buying behaviour of young women as they offered old fashionable clothing products. Therefore, in order to attract them the management of M&S need to produce clothe according to the taste and preferences of customers.

Focuses on product diversification: The customers of UK prefer to consume international dished such as Indian and Chinese as compared to local dishes. Therefore, the company need to focus on producing international dished in order to attain huge customer strengths.

 

Threats:

High competition: There are large number of competitors which gives tough competition to M&S such as Sainsbury, Tesco etc. due to which their sales and revenue may affected. The company faces competition from both supermarket such as Tesco, ALDI as well as retailer companies such as John Lewis, Zara due to which they find difficulties in attracting large number of

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