Formation and Early Stages of Marks & Spencer

This report examines the formation and the early stages of Marks & Spencer. It discusses the entrepreneurial stages, the growth and establishment, and the expansion of the company.

INDIVIDUAL
REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Formation and Early stages of Marks & Spencer........................................................................2
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Entrepreneurship denotes to the concept of evolving and managing a business enterprise
concerning to gain profit by taking no. of risks in the corporate world. It plays a crucial role in
the economic development of country and enlarging global market. Entrepreneur is a person who
undertakes the responsibility and risk to start new venture by involving capital and labour to
produce goods and generate profits by selling those goods and services.
Marks & Spencer Plc frequently known as M&S is the Britain’s multinational retail company
offering superior quality clothing, home and food products. Company was founded by Michael
Marks and Thomas Spencer and is headquartered in London, England, UK. Marks & Spencer
has number stores across the world and also sells its food products online food and beverages
delivery app and sells its clothing and home products through its own website and app and by
collaborating with other e-commerce websites. This report examines the formation and the early
stages of Marks & Spencer.
MAIN BODY
Formation and Early stages of Marks & Spencer
Marks & Spencer plc was started in 1884 in an open market as a stall in Leeds, Yorkshire
(Marks and Spencer History, 2020). At that time, the business was run by the Michael Marks as
Marks Penny bazaar offering toys, home products, and haberdashery. At the early stage, when he
came in Yorkshire as a Jewish refugee he just acquired product from someone and sell them
saying everything cost a penny. Michael to expand and grow his business decided to look for
partner who can invest in his business, initially he contacted Isaac Dewhirst, who lend him
money for setting up stall business but he declined and referred to contact Thomas Spencer who
may invest in his business. In 1894, Michael Marks did partnership with Thomas Spenser and
Marks & Spencer came into existence. Thomas invested £300 and had good accounting and
administrative skills which benefitted Michael in business and helped him with selling and
dealing extremely well to people (Marks & Spencer Plc, 2020). Marks & Spencer at their stores
which they called “penny bazaars”, keep the stores slogan as penny price product with the
addition to it Admission free, this was there successful marketing strategy at that time which
encouraged customers to browse the products at stores without any obligation of buying them, it
was innovative and unheard at that time, made every possible customers stop at their stores and
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they buy something or other everytime. Michael Marks son Simon transformed their business
from the no. of outdoor stalls business to the indoor shops in Northern England. This is the short
overview that how Marks & Spencer began their business. The formation of the company was
the lengthy and long process, from the single outdoor store to stores and from Indoor store in
North England to several stores, and becoming one of the leading global retail Company in UK
took hundreds of years and huge process (Toms and Zhang, 2016). Developing a company or
formation of company was not so simple process for the Marks & Spencer. Company is leader
because of their good business plan and innovative ideas with the years of hard work and
consistent efforts of the managers and employees, who have contributed their part from the
beginning for the growth and success of Marks & Spencer. Any business to become successful
corporate, undergoes various stages in its business lifecycle. There are a lot of changes which
have come in the market and in M&S according to the changes in the market which is a great
factor. There are a lot of measures and methods which are coming up in M&S which have to be
analysed effectively and adapted in the company so that there is going to be higher functioning
which is going to be present. Marks and Spencer started as an entrepreneur venture which had
not a lot of experience but knowledge was present in the organisation to be able to operate the
company effectively and efficiently. Tara, Is the head of merchandising department who knows
the company inside out making sure that the company is exploring different platforms and
methods in order to achieve the success which the company has set for themselves (Li, Fang and
Liu, 2019). It is very important to have experience in this industry to make sure that the
competitors are being taken care of and the profit margins are going to be stable. There are a lot
of attributes and satisfaction which are being provided to the employees in the present so that the
company can operate effectively and match the demands. When Marks and Spencer started in the
market the organisation had a control over the employees and customers which are present in the
organisation but overtime things changed and the company had to adapt to the changes and make
sure that their customers and employees are being satisfied and loyal to the organisation. The
further report is going discuss the life cycle venture which Marks and Spencer has experienced in
the past affecting the present and the future of the company and also a detailed understanding of
the company which helped the organisation to be able to grow and set standards for themselves
in the market (Xie and et.al., 2016).
Seed and development
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Before the organisation is set in the market there has to be effective ideas and potential
opportunities which have to be developed by the company. Marks and Spencer was a venture but
the idea which the business had to be able to enter this industry was effective therefore the
company has been able to develop over the years. It is very important for the company to
understand the financial foundation which the company would need in order to be able to
provide the products and services to the customers. The company will have to understand the
risks and the problems which the organisation can have in the future. There are a lot of advises
which are required by the organization in order to make sure that they are able to give in their
best in the company so that there is going to be higher functioning which is going to be present
(Toth and et.al., 2020). There are a lot of sources like friends, family, business associates,
industrial specialists and colleagues from whom an individual can take advises so that they
would be able to put their idea into action which is going to be able to helpful for them. There
are a lot of ideas which are present in the market therefore taking help is never bad because there
are a lot of risks and going in this industry without knowledge is going to be very affective for
the company to stay strong in the market.
Start up
It is very rare to see any organisation to reach the 25th success party in the market. The
company needs to have a little idea of the customers they are going to target and the employees
which are going to be required for the products and services qualities and demands to be
fulfilled. There are a lot of confusions which are going to start and be present in a venture which
have to be solved and made sure that there is going to be higher productivity. Conflicts always
make the clarity of working be affected and that is not good for the company to be able to make a
place and make the portfolio of the organisation stronger in the market. Marks and Spencer has
been in the market from a long run therefore they have the right idea of the methods and
strategies which the company should be using. The companies are bound to take the feedbacks
off the customers initially so that the products and services can we improved accordingly making
the organisation be able to make a place for them in the market effectively and efficiently
(Winch and et.al., 2020). There are a lot of keys which have to be understood by the entrepreneur
of the business like Michael Marks and Thomas Spencer had to have for the company so that the
organization will be able to operate effectively in the market which is a very essential factor.
M&S did not do well in the market initially therefore Thomas and Michael had to sell off their
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shares in the organization in order to save the business which was running in the market from a
long run.
Growth and establishment
It is very important for the business to understand how to generate the income level
source of the company since there are a lot of investments which they have to do. Cash flow has
to be present in the company so that though profits and steady growth of the company is going to
be present since there are a lot of ongoing expenses which the organisation will have from the
revenue which is being generated. There are a lot of challenges which are present in adventure to
be able to have this factor but they have to deal with the competition accommodating an
expanding workforce attending the customers, managing the revenue levelled. It is very
important for the company to hire the right employees so that there is going to be right spending
and measures which are going to be taken in the company. Marks and Spencer was very lucky in
this aspect since they got in the right employees and make sure that the company is being able to
have higher standards for themselves. There was a good communication which was present in
the organisation which made the clarity of working possible and the goals were being achieved.
That has to be good distribution of roles and responsibilities and Marks and Spencer from the
very beginning has been able to do that but there was a lot of control on the employees which is
not tolerated in today’s world (Diogo and et.al., 2018). The company has developed their ideas
and way of working over the years since they want their internal and external factors to be
balanced and satisfied with the products and services of the company.
Expansion
All the businesses which are able to have stability in the market have a future goal of
expanding themselves globally. For this factor the company needs to have a good management
and managers which are going to present and perform the acceptance of the changes which are
coming in the company. There has to be good offering and capitalising which needs to be present
in the company so that they would be able to have a higher growth. The company also needs to
make sure that they have a good cash flow so that the blueprints which the company had
established on planned before they entered the market can be achieved (Toms and Zhang, 2016).
The company has to move forward therefore they have goals and targets each time so that they
keep developing and improving and achieving the success which they always plan to have in the
market. Careful and realistic planning is very important in the market so that their company will
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be able to have a current standard and reputation in the market. There are a lot of challenges risks
and problems which are going to rise in the company which have to be dealt well so that the best
secure method can be present in the company for higher success.
Maturity and possible exit
There are a lot of times when the business does struggle and the management must have
an exit strategy as well which is going to make the company be able to have stability. The
employees and customers of M&S are very dependent on the products and services of the
company and if the organization does go in loss then they have to make sure that they are taking
the right measures in order to be able to operate effectively. M&S had good observation in the
market therefore they have been able to have such a strong base and portfolio for themselves
over years. Business life cycle is not always successful and stable because the profit margins
changing from year to year. It is important for the company to be able to have the right standards
and functioning for themselves in order to be able to achieve higher success in the market. Since
the demands of the customers are increasing in the market therefore these planning are of exit
strategies are not present in the company since all the companies in the market are being able to
have a good profit margin (Reynolds, Segovia and Vickers, 2017). The entrepreneur has to be
sure about the ideas and measures they have in mind so that there is going to be effective
working which is going to be present in the company and that is a great factor for the overall
growth of the company in the market.
These cycles have to be developed and understood by all the employees and businesses
which are present in the market so that that is going to be better opportunities which are going to
be present. Life cycles of all the businesses before entering the market have to be present so that
they know how to exit and enter the market effectively and there is also going to be higher clarity
and direction of the organisation is going to be present and be successful to achieve their targets
and goals (González, 2019). There are feedback’s which are taken by the employees so that the
companies will be able to have a higher productivity level and satisfaction which is going to be
present for the employees and other aspects of the company. Lifecycle of businesses is very must
the same for all kind of businesses therefore it is very important for the companies to make sure
that they understand the market before they enter and when they do enter also they need to have
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a strong functioning otherwise a method to be able to exit the market without affecting the
workforce or the customers.
CONCLUSION
The following report elaborates about how the company came into existence; how the
process of formation of company began with the single person who was Jewish refugee from
Poland Michael lending his money for establishing just stall selling things for penny, to do
partnership with Thomas Spencer and their marketing strategies. It explains in detail the early
stages of the company with the help of different entrepreneurial stages that Marks & Spencer
have gone through in years. This report further explains the business lifecycle of Marks &
Spencer which shows their different stages from selling different varieties of products initially to
selling good quality clothing, home products and food products. From offering this specific
product line, to expanding their business in United Kingdom as the chain of stores. Marks &
Spencer made their supply chain network strong, successfully run their retail business
internationally and becoming one of the leading retail company.
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REFERENCES
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Sustainable Development Take Hong Kong Esquel as an Example. Journal of Advanced
Management Science Vol. 7(4).
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obesity and neuroendocrine programming of metabolic disorders in offspring. Frontiers
in Endocrinology. 8. p.245.
Scott, P. and Walker, J.T., 2017. Barriers to ‘industrialisation’for interwar British retailing? The
case of Marks & Spencer Ltd. Business History. 59(2). pp.179-201.
Toms, S. and Zhang, Q., 2016. Marks & Spencer and the decline of the British textile industry,
1950–2000. Business history review. 90(1). pp.3-30.
Toms, S. and Zhang, Q., 2016. Marks & Spencer and the decline of the British textile industry,
1950–2000. Business history review. 90(1). pp.3-30.
Toth, K and et.al., 2020. Filociclovir is a potent in vitro and in vivo inhibitor of human
adenoviruses. Antimicrobial Agents and Chemotherapy. 64(11).
Winch, R and et.al., 2020. Making the case for green infrastructure: lessons from best practice.
Xie, Y and et.al., 2016. The different oscillation patterns of alpha band in the early and later
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Online
Marks & Spencer Plc, 2020[Online]. Available through: <
https://www.britannica.com/topic/Marks-and-Spencer-PLC>
Marks and Spencer History, 2020[Online]. Available through: <
https://corporate.marksandspencer.com/aboutus/history>
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