Impact of Digital technology on the sales of retail industry- A case study on Marks and Spencer
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This assignment explores the impact of digital technology on the sales of the retail industry, with a case study on Marks and Spencer. It includes project aim and objectives, project management plan, work breakdown structure, Gantt chart, small scale research, evaluation of research data, and recommendations.
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Contents INTRODUCTION.................................................................................................................................3 TASK 1.................................................................................................................................................3 P1: Project aim and objectives...........................................................................................................3 P2 Project management plan with cost aspects, scope, time, quality and communication risk........4 P3: Work breakdown structure and a Gantt chart.............................................................................6 TASK 2.................................................................................................................................................8 P4: Small scale research by implementation qualitative and quantitative research..........................8 TASK 3...............................................................................................................................................10 P5 Evaluation research and data using appropriate tools and techniques......................................10 P6 Appropriate recommendation as a result of data and research analysis....................................18 TASK 4...............................................................................................................................................19 P7 Reflection upon undertakings to attain objectives.....................................................................19 CONCLUSION...................................................................................................................................20 REFERENCES....................................................................................................................................21 APPENDIX.........................................................................................................................................22
Title: “Impact of Digital technology on the sales of retail industry- A case study on Marks and Spencer”. INTRODUCTION Globalisation includes the process by which an organisation operates its business activities at global level through exchanging goods and services with other countries.Thus, to manage any business project more successfully it is important for the management to analyse the external factors and accordingly formulate an aim and objectives so that their employees get right direction to perform. The present assignment is based on Marks and Spencer (M&S) which is engaged in providing multiple of products such as clothing, home products and luxury food products. The project includes the aims and objectives, project management plan, breakdown structure, Gantt chart, small scale research, methods and techniques to analyse data etc. The project also explains the recommendation and reflection upon undertakings. TASK 1 P1: Project aim and objectives Marks and Spencer (M&S) is a UK-based retail company which is engaged in selling wide range of products such as clothing, home products and luxury food products. The company was established in the year 1884 by Michael Marks and Thomas Spencer in Leeds. It has operated over 900 stores in which 615 stores are only for selling food products across UK. Therefore, the company is operated at global level due to which it has been affected by several factors such as economic, cultural and ethical. For this, the management has decided to adopt digital technology in their business operations so as to capture large market share and attained skilled workforce. The present report is based on the digital technology adopted by Retail Company named as M&S so as to enhance their business activities at global level (Adzic, 2011). Topic: “Impact of Digital technology on the sales of retail industry- A case study on Marks and Spencer”. According to the present case study, globalisation containing influencing factors which can affect the business operations of organisations operated at global level therefore to
increase sales figure in such circumstances, the retail global companies such as M&S decide to bring innovation in their business process as to compete with rivals more effectively. Aim: Impact of mobile technology as digital technology to increase sales of retail industry- A case study on Marks and Spencer. The main purpose of the examination report is to identify the effectiveness of mobile technology implemented in business process so as to achieve huge sales and revenue at global market. Research objectives: To identify the concept of mobile technology in regards of Marks and Spencer. To identify the impact of mobile technology in increasing sales figure of M&S. To analysis the relationship between mobile technology and sales of Marks and Spencer. Research Questions: Define the concept of mobile technology in regards of Marks and Spencer? What is the major impact of mobile technology in increasing sales figure of M&S? How mobile technology is interconnected with the sales of Marks and Spencer? P2 Project management plan with cost aspects, scope, time, quality and communication risk Project management plan is a preparation of execution of project activities in which all plans and actions are written in advance with the purpose of giving right direction and guidance to the employees without facing any future contingencies. It increases the chances of making business project more successful through determining project activities, resources utilised, manpower needed etc. in advance. Apart from this, scope, time, quality, risk etc. are included in such project management plan which is further understood as under: Scope:Investing money in adoption of digital technology always brings maximum returntocompanyinnearfuture.Itsupportscompanyinenhancingsalesrevenues, employee’s satisfaction, efficiency in business activities etc. M&S is a retail company decided to adopt mobile technology which gives a platform for their customers of UK and outside of UK to buy their wide range of products without visiting at their physical stores. This will bring internet and buying behaviour of customers which directly makes huge impact
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on the sales figure of company. Therefore, the scope of adoption of mobile technology is much wider(Basu, 2014). Cost:It refers to the amount which is incurred or sacrificed to gain something. M&S adopts mobile technology which requires huge amount of funds without which the business activities will not be executed according to the desired plans. Therefore, it is important for management of M&S to analyse financial reports and on the basis of which manage funds from different sources such as raising funds from investors, or reserve funds.For this, the management required to prepare an effective budget in advance so as to identify the cost allocated to different project activities. For example cost required to incur in making skilled workforce through providing training and development programs.The sample of such budget statement showing total cost incurred is given as under: Total forecasted budget Particular2017-18($) Implementing technology cost17000 Promotional expense7000 Advertisement expense5500 Catalogues1800 Training charges7500 Total cost38800 Time:It is another important factor which assist organisation to achieve competitive opportunities among their rivals if project activities are executed within limited period of time.M&S decided to adopt mobile technology in their business process so as to facilitate customers to buy their products without visiting at their stores thus implementing such digital technology within limited period of time increases the chances of sales figure of company as it may adopted by their rivals as well in future which can decreases their competitiveness in
market. Therefore, time play an important role in sustaining in global market(Davies and Hughes, 2014). Risk:It always present in any project activities which can affect the aims and objectives of an organisation as well. For this the management is held responsible to forecast the risk in advance which can be related with shortage of funds, lack of support of employees, inadequate resources etc. Adoption of mobile technology involves huge risk which should be tackled by the management of M&S through conducting research about such aspects that causes risk in advance. It assists management to make effective strategies and plans in order to deal with future complexities in more effective way. Communication:Mutual help gotten by employees can be conceivable only when the management of M&S can build up a decent communication channel at work environment. The employee’s feels motivated when they unmistakably comprehend the organization main objective behind the adoption of mobile technology alongside their jobs and obligations thus it is more essential for management to bring transparency in communication and give a stage to workers to speak with best specialist specifically. This will make positive impact on the execution of project activities of M&S. Resources:It is essential necessity which motivates management of M&S to choose to actualize some innovation changes in their business procedure. Having adequate measure of resources, for example, capitals, reserves, talented employees and so forth urges organization to work on execution of their innovation decisions. Hence, the management of M&S Should initially arranged resources through taking help from various divisions and oversee them as needs be(Harish and Kumar, 2014). P3: Work breakdown structure and a Gantt chart Work breakdown structure: It is somewhat graph which demonstrates the connections among the project activities executed in finishing of undertakings. The graphical idea of work breakdown structure can encourage management of M&S to foresee results dependent on different situations which guides management to reconsider about their current arrangements and choose whether to roll out a few improvements or not in order to accomplish beneficial results.
Gantt chart:It is a viable horizontal bar chart created as production control technique in the year 1917 by Henry L. Gantt who is an American architect and social researcher. It help project management of M&S to utilize Gantt chart as a huge representation of a calendar that assistance in making suitable planning, coordinating and following particular tasks in an undertaking. It is otherwise called visual project presentation where all project activities that ought to be executed are shown and separated on a chart. It motivates workers to perform allotted tasks inside given time frame to help organization in accomplishing its desired objectives and goals(Heger and Rohrbeck, 2012).
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Previously mentioned tools are more valuable to adopt by M&S in order to accomplish its aims and objectives inside given time span and achieve intensity among their opponents in more powerful way. TASK 2 P4: Small scale research by implementation qualitative and quantitative research Research is essential need of every organisation in order to determine the effectiveness of decisions made by the management for the betterment of an organisation. As M&S adopts mobile technology in their business operations so as to increase sales figure of company but before implementing such technology, it is important for management to conduct research in order to analyse the interest and behaviour of their buyers as well as employees as the success of such technology is very much based on them. For this purpose, the management has hired a researcher who conducts research for the company. The appointed researcher has two options to conduct research such as qualitative and quantitative. It is explained as under: Qualitative research:It is effective research method which assist researcher to collect data in the form of symbol, name, number code or literature and so on.It is most preferred research method by an organisation as it helps them in receiving accurate and reliable information about the views and perceptions of their respondents. There are different frameworks which can be utilized under this strategy in order to collect relevant information. For example, interviews, questionnaire, poll etc. This will make easy for researcher to
analyse the behaviour of customers as well as employees regarding adoption of mobile technology in business process of M&S(Primary source and secondary source,2018) Quantitative research:It is traditionally another important technique which also can be adopted by the researcher with the purpose of collecting information into statistical data and figures. It is mostly adopted by the researcher when they are having less time and money. M&S may adopt such tool if they required to adopt mobile technology within minimum time period. Under this method, the information can be collected through online sources, web, journals etc. Both such types of research methods assist M&S to make an effective decisions regarding adoption of digital technology in their business operations. Through analysing the outcomes received by the research, the management is successfully able to forecast the impact of mobile technology on the sales figure of company. In the present research, 40 respondents are selected whose views and opinions are considered. Questionnaire Name: Gender: Age: Q1. Does people took interest on purchasing products through using online platform? Yes No Q2. What types of digital technologies that may adopt by M&S to increase sales figure and revenue? E-commerce Mobile technology Cloud techniques Q3) Does people aware about the benefits received by them while buying company’s products through mobile technology? Yes No Q4) Does M&S has skilled manpower or invests money in conducting training and learning programs at workplace?
Have skilled manpower Requires training and learning programs Q5) What are the impact of mobile technology in sales and revenue of M&S? Positive Negative Q6) What are the challenges that restrict Marks and Spencer to adopt mobile technology? Lack of skilled staff Lack of time Lack of knowledgeable customers Q7). Does M&S have marketing plans to promote mobile technology in competitive market? Yes No Q8). Does mobile technology is interconnected with the sales of M&S? Agree Disagree Q9. Does M&S receive maximum support from its employees in adoption of mobile technology in business operations? Yes No Q10. Provide some recommendation to deal with difficulties that comes while adoption of mobile technology? TASK 3 P5 Evaluation research and data using appropriate tools and techniques In the present research, the researcher of M&S has conducted qualitative research in which primary source of data has been collected with an objective of collecting accurate and reliable information about the topic of research. It consumes more time and money but instead it provides genuine data which increases the effectiveness of decisions taken by the management which in results achieving huge benefits in near future. Apart from this, there are different tools of research as well which also can be adopted by the researcher such as
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researchdesign,dataanalysis,datacollection,philosophyetc.Undertheresearch, Questionnaire has been formed which contains the list if relevant questions related with the topic of research which is further asked from the 40 respondents that is taken as sample of population(Kowalkowski, Kindström and Brehmer, 2011) Theme 1: Behaviour of targeted customers towards purchasing online products Q1. Does people took interest on purchasing products through using online platform? Frequency Yes25 No15 ·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:From the 40 respondents, there are 25 respondents who thinks that people are more preferred to buy products online whereas remaining 15 respondents doesn’t agree with the same. Theme 2: Different kinds of Digital Technologies Q2. What types of digital technologies that may adopt by M&S to increase sales figure and revenue? Frequency
E-commerce10 Mobile technology25 Cloud techniques5 ·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:: From the 40 respondents, there are 10 respondents who thinks that people are more preferred to visit online through using websites instead of using mobile. The remaining 25 respondents preferred mobile to buy products whereas other 5 respondents preferred cloud technology as an effective digital technology for M&S. Theme 3: Benefits of customers while buying product using online platform Q3)Doespeopleawareaboutthebenefits receivedbythemwhilebuyingcompany’s products through mobile technology? Frequency Yes15 No25
·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:Out of the 40 respondents, there are 15 respondents who thinks that people are aware about the benefits received while buying products online whereas remaining 25 respondents doesn’t agree with the same. Theme 4: Requirement of training and learning programs Q4)DoesM&Shasskilledmanpoweror investsmoneyinconductingtrainingand learning programs at workplace? Frequency Have skilled manpower15 Requiredtrainingandlearning programs 25
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·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:From the 40 respondents, there are 15 respondents who thinks that M&S has skilled manpower to work on mobile technologywhereas remaining 25 respondents conducting training and learning programs at workplace. Theme 5:Impact of mobile technology in sales and revenue of M&S Q5) What are the impact of mobile technology in sales and revenue of M&S? Frequency Positive30 Negative10 ·Yes·No 0 5 10 15 20 25 30 Frequency Frequency
Interpretation:Out of the 40 respondents, there are 30 respondents who thinks that the impact of mobile technology in sales and revenue of M&S will be positivewhereas remaining 10 respondentsassume negative impact. Theme 6: Challenges arises while implementation of digital technology Q6) What are the challenges that restrict Marks and Spencer to adopt mobile technology? Frequency Lack of skilled staff10 Lack of time10 Lack of knowledgeable customers20 ·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:Out of the 40 respondents, there are 10 respondents who thinks that Lack of skilled staff is the biggest challenge for M&S to adopt mobile technologywhereas remaining10 and 20 respondentsassume lackof timeand knowledgeablecustomers respectively are the biggest challenge. Theme 7: Marketing plans to promote mobile technology Q7).DoesM&Shavemarketingplansto promotemobiletechnologyincompetitive market? Frequency
Yes25 No15 ·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:Among 40 respondents, there are 25 respondents who thinks that M&S have marketing plans to promote mobile technology in competitive market whereas remaining 15 doesn’t agree with the same. Theme 8: Interconnection of mobile technology with sales of organisation Q8). Does mobile technology is interconnected with the sales of M&S? Frequency Agree28 Disagree12
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·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:Among 40 respondents, there are 28 respondents who thinks that mobile technology is interconnected with the sales of M&S whereas remaining 12 doesn’t agree with the same. Theme 9: Support from employees in adoption of digital technology Q9.DoesM&Sreceivemaximumsupport fromitsemployeesinadoptionofmobile technology in business operations? Frequency Yes26 No14
·Yes·No 0 5 10 15 20 25 30 Frequency Frequency Interpretation:Among 40 respondents, there are 26 respondents who thinks that M&S receive maximum support from its employees in adoption of mobile technology in business operations whereas remaining 14 doesn’t agree with the same. P6 Appropriate recommendation as a result of data and research analysis From the data interpreted above, it has been identified clearly that most of the respondents are in favour of company’s decisions related with adoption of mobile technology in their business process to increase sales and revenue. Therefore, it has been suggested to the Marks and Spencer to continue with their decisions and make strategies accordingly. As it has been observed that the employees of company requires training and learning programs in order to work on mobile technology therefore it must required for the management to conduct such programs at workplace so as to increase their capabilities. It is also identified from the above analysis that the employees are less aware about the benefits they received while buying company’s products online as they have concern about the quality f products. Therefore, it has been recommended to the management of M&S to form a marketing team which should be responsible to communicate with the customers and inform them about their benefits through using various promotional tools such as social media, email etc. Apart from this, the company also have an alternative options to adopt such as cloud technology Cloud technologyasitassistthemtostorevaluableandconfidentialinformationaboutits employees, customers, suppliers, financial position etc. which makes easy to identify the customers taste an preferences which in results increasing sales figure and revenue of company.
TASK 4 P7 Reflection upon undertakings to attain objectives While carrying out research, as a researcher I have been observed so many things which should be developed by me through engaging in various development programs. Here are the skills which I need to be developed: CompetencyHow I have developed in this area Why I need to do to develop further in the area Analytical skillsThis is one of the skill which I needtodevelopthrough engaging in research activities moreandanalysethe relevancy of data with the help ofothersresearcherhaving lots of experience in research fields. I usedto improveanalytical skills as to build my career in research field. Report writingInthisfield,Ijoinedsome workshops, meet up and also took writing class for further development of myself. Whilewritingimportant contentandinformation,my skills should be good. So my developmentisrequiredin order to write well. Communication SkillIfIneedtoenhancemy communicationskillsand work, I will use ways like Scrolldown,bodylanguage and hand gestures. Ineedgoodcommunication skills in order to interact others having differentculturesand backgrounds so that collection of data would be easy for me while carrying out research for company.
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CONCLUSION It has been concluded from the above project report that digital technology plays an important for retail companies in terms of increasing their sales figures and revenue at global market. It requires an effective management who are more capable to make decisions regarding selection of digital technology which assist organisation to achieve further growth and success globally. In the present research, M&S has opted mobile technology to increase sales which is well supported by the results achieved by the research. Therefore, it brings maximum profitable outcome to the sales of company after adoption of mobile technology in their business process.
REFERENCES Books and Journals Adzic, G., 2011. Specification by example: how successful teams deliver the right software. Manning Publications Co. Basu, R., 2014. Managing quality in projects: An empirical study.International journal of project management.32(1). pp.178-187. Davies, M.B. and Hughes, N., 2014.Doing a successful research project: Using qualitative or quantitative methods. Macmillan International Higher Education. Harish, V. S. K. V. and Kumar, A., 2014. Demand side management in India: action plan, policies and regulations.Renewable and Sustainable Energy Reviews.33. pp.613- 624. Heger, T. and Rohrbeck, R., 2012. Strategic foresight for collaborative exploration of new business fields.Technological Forecasting and Social Change.79(5). pp.819-831. Kowalkowski, C., Kindström, D. and Brehmer, P. O., 2011. Managing industrial service offeringsinglobalbusinessmarkets.JournalofBusiness&Industrial Marketing.26(3). pp.181-192. Nicholas, J. M. and Steyn, H., 2017. Project management for engineering, business and technology. Routledge. Porwal, A. and Hewage, K. N., 2013. Building Information Modeling (BIM) partnering framework for public construction projects.Automation in Construction. 31. pp.204- 214. Pryke, S. and Smyth, H., 2012.The management of complex projects: A relationship approach. John Wiley & Sons.S Spender, J.C., 2014.Business strategy: Managing uncertainty, opportunity, and enterprise. Oxford University Press. Verzuh, E., 2015.The fast forward MBA in project management. John Wiley & Sons. Online Primarysourceandsecondarysource,2018.[online]Availablethrough; <https://businesscasestudies.co.uk/food-standards-agency/market-research-and- consumer-protection/primary-and-secondary-research.html>.
APPENDIX Project Logbook Name: Project title: Update on weekly research/tasks achieved. I have completed research on the Impact of new product development to support organisation in expanding business at global level. Yes, I on track and able to complete project on time. I don't need any changes in project management plan. Any risks and/or issues identified? Yes I have issue in performing research. Uninterested respondents is one of the biggest issue. Problems encountered Personal problems among team mates is also issues which arise at work place. I conduct various entertainment activities so harmony can be achieved among them. New ideas and change of project direction What have I learnt about myself this week? I complete my all task within specified limit/. This help me to perform research project in appropriate manner. I plan research activities for next week. Tasks planned for next week I am able to complete my operations in effective and signifiant manner. Project plan status to date (on, ahead, behind) my project was on time. Supervisor comments to address Performance Review
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What was the project supposed to accomplish? Research project is done forImpact of new product development to support organisation in expanding business at global level. Did the project succeed in its aims? How do you know? Specifically, please outline any evaluation and assessment undertaken. Yes I am able to achieve aims and objectives of research. What things do you think worked well and why? Evaluate all aspects of the project (e.g. initial inception, project activities and project outcomes) from a range of perspectives. Team sprite and group working are the best things which gives positive results. What problems emerged during the project and how were they tackled? Was there timely identification of issues and resolution during the project process? Time mismanagement and conflict among team works are issues which arise while performing research. What did you learn from undertaking the project? I am able to enhance my knowledge related to launching a new product into new market and able to know importance for an organisation. How would you rate your performance as project manager? I rate my performance 9 out of 10. What strengths and weaknesses of your performance did you identify? My strength was futuristic approach for solving problem and weakness is lack of confidence. How will this inform and support your continuous professional development? Continuous professional development is helpful in achieving targets and this is helpful in future activities also.