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Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION

   

Added on  2020-06-03

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Business Project
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_1

Table of ContentsINTRODUCTION...........................................................................................................2PART 1........................................................................................................................3a) Comparative analysis of how the company is competing and its competitiveposition? Does the company’s activity result in gaining an advantage?............3b) Challenges faced by company doing trade across borders............................9PART 2......................................................................................................................13Needs of company to grow their business by using different theories.............13CONCLUSION ...........................................................................................................16REFERENCES.............................................................................................................181
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_2

INTRODUCTIONA business project is specifically intended to achieve organizational goals byaiming at the key area that can impact on it. In the present study, a research designfor business is prepared for Marks & Spencer (M & S). Marks and Spencer isproviding its products and services in different countries to attract customers fromdifferent countires. The global organization was founded 133 years ago in the year1884 and headquartered in the City of Westminster, London, United Kingdom. Theestablishment is having specialization in the merchandising of clothing, homeproducts, and food products. Majorly the stores of the firm include clothing, shoeoutlet, home furniture, housewares, retail stores, home furnishing, grocery outletsand furniture stores (Shen, Qian and Choi, 2017.). Marks and Spencer provideclothing for Womens, men and kids. Total revenue of M & S from April 2016 to April2017 is £10,622 million. The international market share of the group is 1.26% andin context to the UK, it is 5.5% (M & S, 2017). Thus, in order to maintain such ahuge system effective business project is required to be followed. Marks andSpencer is providing its products through different channels to attract morecustomers such as it provide its products through its web portal.However, the factor that affects the entity mostly in performing well is thehigh level of competition present in the clothing, home products, and food products'sector (Barberia and et.al., 2016). There is a tough competition existing in thisindustry as number of retailers are increasing due to which competition isincreasing day by day. In this report there is description of competitive position andchallenges faced by M&S, types of consideration and its future prospects. Differenttypes of models are used for its analysis. Considerations of M&S are illustrated inorder to create a social impact. Future prospects of M & S have also been discussedin this report. Furthermore, this assignment will provide with various challenges which arefaced by organisation while trading across borders which will provide with factorssuch as political factors, economic situation, customers taste and preference etc. Itwill also provide with different theories which will assist in growth of business.Moreover, this report will provide with comparative analysis of organisation and itscompetitive position. This will include about porter's five forces model to providewith comparative analysis which will include cost leadership, differentiation etc.2
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_3

Grand unified theory of business development will be included in this report toaccess the growth of organisation.The key competitors in the M & S group are NEXT Plc., ALDI, ASDA GroupLimited, TESCO Plc. All these entities are performing well on the international leveland at national standard too. Some of them have really good competitors that canharm the business of Marks and Spencer. Hence, effective competitive strategiesare required to achieve a competitive advantage over them (Ashraf and et.al.,2017). Marks and Spencer in order to gain competitive advantage have to adoptvarious strategies which will be included in this report.PART 1a) Comparative analysis of how the company is competing and its competitiveposition? Does the company’s activity result in gaining an advantage?According to Rothaermel, (2016), competition plays the most crucial role inthe global business. In context to present project, the selected organization belongsto retail sector where high level of competition is present. It is thus essential for theMarks & Spencer which possess effective competitive strategies. The company canresultingaininganadvantage3Illustration 1: Marks & Spencer Long-term financial results
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_4

in competition by using proper techniques, policies and processes. Regardless ofconsiderable recession in the business value of the firm, it held its nerves bymaintaining its premium prices and brand-building advertising. Further,communication is the most significant strategy that is used by the entity inmultiplying the customer figures. In addition to this, with the excellence in the services provided to theconsumers, the firm holds a special place in their heart. It may be recognized thatfrom past 3 years the market share in food and clothing has remained virtuallystatic with the help of its strong branding and immense buying power (Drucker,2017). Also, Marks and Spencer are more interested in having franchisees ratherthan any other partnership method. This activity will help them in engaging localpeople with their business which are familiar with the regional cultures and thus,more profit can be earned by developing customised service and products. Porters five force modelThreats of new entrant:In retail market there is high entry barrier becauseto enter in this market a company need to invest a lot. Along with this otherfirms popularity can also create barrier in increasing the sale of the products(Gunn and Mintrom, (2017). Marks and Spencer face this difficulty due towhich its market share can be reduced because of new entrants which aregiving tough competition to the organisation.Threat of substitute products:Marks and Spencer continuous innovationhelp in making a strong position in the market. It is easy to copy the design ofthe firm and reduce cost elsewhere. Along with this, food business is alreadyundertaken by another firm such as Tesco, Sainsbury etc. However, Marksand Spencer private label on its product with different offer help in gainingcompetitive advantage. Bargaining power of buyers: Bargaining power of customer is importantas if different firm sell similar products at different price then it provideschance to customer to switch from one brand to other (Dey, 2016). There aremany alternatives available for the customers so Marks and Spencer need tobuild up its loyalty and offer its customers something different. Bargaining power of supplier: Bargaining power of supplier reduce qualityby effecting prices of women wear. They minimize profitability through which4
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_5

they are unable to recover increase in their own prices. Bargaining power ofsupplier reduce the profitability of the firm and also affect the cost of product.For example, there are many competitors of Marks and Spencer who areselling similar product but selling them product through adding some additionalfeature can make easy to survive in competitive market (Daghigh and et.al., 2016).The key competitors in clothes and food sections of the M & S are the chainssuch as Next, Gap, BHS, etc. Some of them are using low pricing structure as theircompetitive advantage against the cited firm where few if they have the similarconcept as the chosen entity that is good brand image an immense branding (Dey,2016). As per the views of Laszlo and Zhexembayeva, (2017), the most effectivemethod which will assist the Marks and Spencer for gaining competitive advantageis Benchmarking. In this tool, the best entity in the industry is chosen for evaluationof the policies so that they can be implemented. It has been observed that thecompanies like ALDI and TESCO are dealing with similar products but at low prices.This strategy of them is effective enough to draw attraction of a large number ofcustomers. By using this tool and cutting down high prices, M & S can definitely gaincompetitive advantage. In contrary to this Davis and Davis, (2017), explained thatcustomers can bear extra price spend if companies assure quality in the services. Itmay be however recognized that the firm is more concentrated on the quality andservices of the products they offer with its premium pricing structure. Also, M & S isconsidered far better than the competitors like Primark which sell their products at5
Business Project INTRODUCTION 213 Needs of Company to Grow Their Business Using Different Theories 13 CONCLUSIONS 16 REFERENCES 18 INTRODUCTION_6

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