Managing Information and Technology Marks and Spencer
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This report analyzes the competitive environment of Marks and Spencer, applies Porter's five forces, and analyzes inbound operations and outbound logistics using Porter's value chain analysis.
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Managing Information and Technology - Marks and Spencer
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................4 1) Analyses of competitive environment and apply porter's five forces...................................4 2) Analyse inbound operations and outbound logistics with the help of Porter's value chain analysis........................................................................................................................................6 3) Summarize the information technology used by M&S company and suggestion.................9 CONCLUSION..............................................................................................................................10 REFERENCES.............................................................................................................................12
INTRODUCTION Information technology is use of computers to transfer, manipulate, stores data or any useful information (Ilmudeen and Bao., 2018).Technology become necessary fro the every business now a days, without technology company or any small business cannot be successful in the market. This make important for every business to adopt technology trendsintheir workplace, so they can gain comparative advantages. Overview of the company This report will take Marks and Spencer for this case study , it is one f the most reputed retailer company in UK, and they are selling product such ashigh quality clothing, food products and home appliance.It was founded by the Mchaek Marks Thomas Spencerand Marks and Spencerhave huge reputation in the United Kingdom marketbecause of their product quality and chip prices of their product ad services.. This is listed in the London stock exchange and it constituent of the FTSE 250 Indexes , having previously been in the FTSE 100 indexes from their certain until 2019 (Busse, Meinlschmidt and Foerstl., 2017).Another country where they have successfully expanded their business is Indian. After the UK expansion, Marks and Spencer company hold most of the market in India which was huge achievement for this company and help them to grow in the market. There are some other brands which are associated with this company and some are their own such as Rosie,Marks and Spencer energy,Marks and Spencer collection, Blue Harbour, autograph, Per Unaand Limited. This company makes total 10 million revenue in 2019their operating income is 601 millionin 2019.more than 80000 employees are working in this company currently, and they are having almost 1400 location in worldwide and still their company is expanding their busne3ss in other countries. Background Marks and Spencer was founded in 1884 by the Michael marks and Thomus Spencer in Leeds. This company become 1stretailer companyto make pre Tax profit is over the 1 million in 1998.it was huge achievement for this company and increase their popularity in the other markets as well. Although subsequently this went into a sudden slump, which took the company and their stakeholders by surprise. In 2009 officials of this company announced their Chip executive Chairman Stuart Roseand Rose remain in the role of non-executive until Robert Swannel replace him in 2011. In 2018Marks and Spencer confirm, that estimated 100 stores will have closed till the end of 2022 in the Radical plan. Still, there are chances to close more
than 100 shops of this company which is yet to be confirmed by the officials of Marks and Spencer company. Product and services They are selling quality clothes in cheap price which attracts customers to buy their products (Barak., 2017). Other products of this company are home appliances and food product. They are successful in their food product market because of their ready meal products which is useful for the people who are busy in their office life, and they do not have time to make food. MAIN BODY 1) Analyses of competitive environment and apply porter's five forces. There are some internal and external factors which can affect the business of the Marks and Spencer company so it is important for the superiors of this company to analyses those factors and gain competitive advantages in their market (Yuan, Wang and Zeng., 2017). There are tools to analyses internal and the external environment factors which are PESTEL and Porter's five analyses. This helps to gain competitive advantages andMarks and Spencer company can become successful in their business. PESTEL Analysis of Marks and Spencer company Political factors one of the most valuable aspect from the polices is the free trade which has been implicated on some countries on the bases of agreement. Because of free tradeMarks and Spencer import product from the other foreign counties in cheap prices. Economical Price been always a factor in this industry, other brands and try to steal market from the Marks and Spencer (Jambulingam, Joshi and Kathuria., 2018). They are providing similar product in the cheap priceswhich is attracting customers to switchingtheir brand. Marks and Spencer need to bring new technology which can minimize waste from the product, and they can provide quality product to the customers in law prices. Social Marks and Spencer company have huge advantage of their ready meal products and this is for the people who are busy in their offline life and not getting time to make their morning lunch and lunch as well. This product is useful for those people, and they can take their meal on timewithout wasting their time. This is providing themcompetitive advantages because many
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people in the UK are not able to make their meal for morning and evening. They are not able to make because they go to the office in morning and not get time to make food. Technological Marks and Spencer company have their online stores which helps them to increase their growth and profitability both. They provide offers and discount on the product which attract the customers. Best thing about this technology is that they do not need to go anywhere, they just have to order their productand their team, will deliver their product at their home.Their are many other technology trends they have implemented in their workplacewhich have their ow advantages. They provide card facility to their customers because many person wants to pay their bill digitally. This helps them to pay their bill immediately without having any problem. Environmental they have implemented trees near their stores so people who come there can get fresh air. This shows their contribution towards the environmentand this is also helping them to make their image good in the customers mind and encourage them to but their p-products from stores (Kaplan,Naori and Raz., 2020).They also bring many Eco friendly products which does not affect on the environment and their manufacturing process is also Eco friendly which makes this companysuccessful, and they are able to maintain their image in the market where they are operating their business. Legal They are following all the legal rules of the counties where they have expanded their business, and they have all the legal rights and agreement of the company. Porter's five forces Threat of new entrant New entrants in the retail bring innovation and new technology in the market. This things are putting pressure for theMarks and Spencer company. New technology is making their business more effective and steeling their customers (Jeyanthi and Chandrasekar., 2017). New entrants in this business can take competitive advantages and overtake this company so it is important for them to adopt new technology and built pricing strategies. Bargaining power of supplier all most every company in this industry buy their raw material from the numerous suppliers. This mean supplier have strong control over the prices and they take huge amount
from the companies likeMarks and Spencer. This is important for the company to make good relationship with the suppliers, so they can get raw material in less price, and they can add some value in their product and satisfy their customers. Implementation of new technology in the Marks and Spencer's workplace which reduce waste from the companies resources. Bargaining power of Buyers There are many retailers in this industry who are selling product which are similar to the products of theMarks and Spencercompany so customers have bargaining power sothis company have to bargain with the customers and provide them product in affordable price otherwise they have more option to go the other retailers.Marks and Spencer is use Artificial technology in their stores which attracts the customers to visit their shop and buy products. Threat from substitute products products and services are similar in this industry which creates threat for the Marks and Spencer, but they are continually developing their products by the market research and able to attract customer to by their production (Ayguen and Oeser., 2017). They advertise their product on the social media and convene customers to but their product by showing differentiation in their product with another products. Revelry among the existing players competition in the industry is very high because there are many retail companies on the goals level have strong hold on markets which makes treat for this company. They have strong hold on the UKmarket and most of the contribution they get from their online website. This helps them to be top retailer ion the UK, and they are gaining comparative advantages in this market. There are some competitors of theMarks and Spencer company are Walmart, TESCO and many more who are gaining them huge competition. It is important for theMarks and Spencer toupdate their work by implementing new technology which can help them to stay in competition. 2) Analyse inbound operations and outbound logistics with the help of Porter's value chain analysis The value chain analyses forces strategies to think from the prospective of the companies activities primary activities of the company are those which are concerned with the delivery of the services or their products and this included outbound logistics, inbound logistics, marketing and sales and services.
Primary activities Primary activities of theMarks and Spencercompany are involved in producing their product and selling directly to the customers. Analysis of these activities can help this company to improve their performance, and they can take competitive advantages. Inbound Logistics Traditionallyinboundlogisticsareactivitiesandtheprocessconcernedwiththe distributing receiving and storing the outputs that go into the products of companies good and their services (da Silva Guabiroba And et.al., 2017). Marks and Spencer company has won the GBS supply achievement and has they also take significant lead just because of their plan A sustainability program to create proper step changes in their supply chain on the international market. This company also has got commendation from the European counties which provide it European business Award for the environment. Marks and Spencer has thus a stronghold on the sustainability which is providing them a huge advantage in this competitive market, and they are overtaking emerging retailer companies. This is important forMarks and Spencer company to build strong relationship with their product supplier which can help themto get necessary support store, distribute and receive the product. Without analyzing their Inbound logistic , this company can face various challenges in their developed of the product. Operations This is necessary of theMarks and Spencer company toanalysestheir operational activities raises when the raw material arrives, and they are ready to process the raw material into the end of the product and launch their product in the market, so they can satisfy their customers and make profit and increasing their growth (Dubey And tt.al., 2019).Some of the example of operational activities are testing, assembling , machining, packing etc. repairing and maintaining equipment which are present in the workplace of theMarks and Spencer are also come in this category. Operations include both service operation and manufacturing processstudy of the operation activities by the companies superior is importantbecause it helps to improve productivity of the company and also maximize the efficiencyand ensure the competitive success of Marks and Spencer company. Growth in the productivity of this company also boost their profitability, and they can able to achieve their goals and objectives and show their presence in the global market with strong brand name.
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Outbound logistics Outbound logistics is the process in which company deliver goods to the customers by passing through different channels. Some of the outbound logistics activities are warehousing, order purchasing, transporting and handling and inthe last delivering goods to the customers. Marketing and sales Marks And Spencer Group company will show the benefits andproduct specialization points of offering products to influence the buyersthat its offering is better than the other companies in the retailer industry. Only makinga advanced quality product at low-cost costs and classifiable features cannot make value until Marks and Spencer company invests on the marketing and sales activities. The sales agents and marketers play an essential role in this. Services Services are provided by the employees to the customers for their product. If customers are facing any problem in the product the employees who are present in the stores help them to solve their problem and satisfy their needs. Secondary activities This activities play supporting role in the coordinating and assist the primary activities of theMarks and Spencer company. Company can have benefits from the secondary activities as well Firm infrastructure Firm infrastructure of theMarks and Spencer company denotes range of activitieslike legal matters handling, quality management, planning, accounting, financing and strategic management (Simatupang, Ginardy and Handayati., 2018). Effective infrastructure can enable this company to optimize the value to their value chain.Marks and Spencer company can control the infrastructure activities the activities of firm, infrastructureto take competitive advantages in the market. HRM Marks and Spencer company can also analyze the HRM through implementing some HR aspects which includes selecting, recruiting, performance management, rewardingand other many personalmanagementactivities.EffectiveHr managementin theworkplaceenablethis company to deduct pressure of the competition in the marketthrough motivating their employees and developed skills in their workforce.Hrmanagementofthecompanyprovide
training and development to the employees I which employees get chance to increase their kill and potential in the task. This can leadMarks and Spencer company to achieve competitive advantages in the market. Technology development Every area of the value chain need support of the technology.Marks and Spencer company need technology in their production department, so they can increase their production and provide their product to the customers. Distribution of the product also need technology like vehicleand all. It is important for the HRM of theMarks and Spencer company to understand needs of technology, so they can develop and make their business more profitable. Marks and Spencer company also using online website in which they sell their product to the customers by taking their orders and their delivery team deliver customers product to their home. This means technology have huge role in the value chain o the Marks and Spencer company, so they should develop new technology to gain competitive advantages. Some of the technologies can be used in the company are product design research and data analysis automotive software, customers cares service technology to support customers and provide them facilities. procurement The procurement in the companies value chain include in the purchasing the inputs which are range from the Raw material, equipment, suppliersand other items which are necessary to produce goods (Das and Ghosh., 2016). Due to the link between the value chain activities, this company carefully considerstheir procurementactivities so the can optimize the operation, inbound and outbound value chain. As mentioned above, the utilization of Porter Value Chain analyses depends on understanding the importance of all activities. After understanding the relative importance of found out value chain activities, Marks And Spencer company should show the areas where value can be add, cost efficiency can be accomplished, differentiation base can be set, or procedure can be optimized. 3) Summarize the information technology used by M&S company and suggestion Marks and Spencer is emerging who are showing their presence in the global level effectively. Information technology have huge role to make this company effective and almost every area of the company have It technology which make operations done effectively. Here are some technologies use by the Marks and Spencer- Online shopping
Marks and Spencer is earning huge amount of revenue from offline stores but online shopping site also give their contribution. Many people like top shopping sites of the Marks and Spencer company because they get huge discount and offers. Recently company also have launch new scrams in which people get points for their shopping, and they can use those point for their next shopping. This is attracting customers and company is earning profitability through online selling of products, Advantages of online side is that customers do not need to visit their online site they can order their products and delivery team of the Marks and Spencer will delivery their product at their home. Artificial intelligence Presence of artificial technology at their workplace is attracting customers to visit their stores. This technology they have implemented in their workplace just to attract customers and this increase the crowd in their stores (Suriyantphupha and Bourlakis., 2019). This technology help customers to make good experience. Billing Marks and Spencer company is using billing machines which make bill of their product without doing any mistake. This makes work more easy and company is providing fast services to the customers. They are also having credit card swipe machines which helps to pay customers bill digitally. Not every person carry cash I their pockets so this helps those people to pay their bills through their cards and enjoy shopping. Suggestion for Marks and Spencer Marks and Spencer can bring newer technology in their workplace which can help them to take competitive advantages. They can make bring inventory management software which can help them to control their resources in the inventory, and they can also find how many resources they need more resources to run their productivity. This is helpful, and they will have full control over their inventory and company can earn profit through it. CONCLUSION As per the report has been analyses case study ofMarks and Spencer company on the basis of Information technology. This report has beenprovided competitive analyses of the Marks and Spencer and this includes PESTEL and Porter's five force's. This helps to know impact of technology on the company and how this helping them to gain competitive advantages in the market. This report has been analyses porter's value chain analyses of theMarks and
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Spencer company. In the end of the company have explained the benefits company is getting from the Information technology and give suggestion related to the new technology.
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Simatupang, T.M., Ginardy, R. and Handayati, Y., 2018. New framework for value chain thinking.International Journal of Value Chain Management,9(3), pp.289-309. Das, J. K. and Ghosh, S., 2016, April. Stress Caused by Retrenchment and Attrition in Information Technology and Retail Sectors: A Critical Review Based on Case Studies. InGlobsyn Management Conference 2015(Vol. 1, p. 91). Allied Publishers. Suriyantphupha, P. and Bourlakis, M., 2019. Information Technology in a Traditional Retail Supply Chain: A Structured Literature Review.Projectics/Proyectica/Projectique.(1). pp.89-102.