Managing Information and Technology: A Case Study of Marks and Spencer

This case study explores the competitive environment analysis and Porter's Value Chain Analysis of Marks and Spencer in the context of managing information and technology. It discusses the organization introduction, background information, product and service details, and analyzes the competitive environment using Porter's Five Forces model. Additionally, it examines the value chain activities of Marks and Spencer, including inbound logistics, operations, and outbound logistics, as well as the support activities of technology development and human resource management.

MANAGING
INFORMATION AND
TECHNOLOGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Organization Introduction...........................................................................................................3
Competitive environment analysis..............................................................................................4
Porter's Value Chain Analysis of Marks and Spencer................................................................6
Reflection and Recommendation................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Information technology is considered as utilizing technology for operating business
functions. It also involves utilizing computers, technology, networking and other associated
devices in operating business operations of the company.
Organization Introduction
Marks and Spencer is a multinational retail company based in United Kingdom.
Company was established in the year 1884 by Michael Marks and Thomas Spencer in Leeds.
Headquarter of the Marks and Spencer is located in London, United Kingdom. Company deals in
high quality clothing, home products and food products. Major brands in retail sector is
associated with the Marks and Spencer. Brands like Per Una, Autograph Limited, Rosie, Blue
Harbour, M&S collection and M&S Energy are associated with the company from a very long
time. Company is serving its services across the globe by having a retail outlets in more than
1400 locations.
Background Information of Marks and Spencer
Marks and Spencer is a retail company based in United Kingdom. In 1998 the company
became the first retail organization witnessing pre-tax profitability of more than £1billion which
also enable the company management to project the dignity of the company in front of all its
stakeholders. Marks and Spencer is a listed organization under London Stock Exchange and the
company is also a part of the FTSE 250 Index (Jin, Miao and Park, 2018). Company was
initiated because of the partnership between Michael Marks and Thomas Spencer. Michael
Marks was migrated to England in early 1880s and Thomas Spencer was the cashier of English
Market Town of Skipton in North Yorkshire. Initially Marks was working with Barron in Leeds.
Latter on Marks opened a stall in Leeds and offered a partnership to Thomas Spencer. Marks and
Spencer made a huge reputation in the retail sector in early 20th century only by framing a policy
about to sale only British made products. Due to the policy of selling only British made products
company associated with long term partnership with British manufacturers in order to sale
clothing and food products under the brand name of St Michael the brand was established in the
year 1928. Directors of the company put an specific attention over the quality products in 1957
under stock size measuring system. Company started its international expansion in 1973 by
opening stores in Canada (Rašić Jelavić and Brkić, 2016). Latter on company expanded in
France retail market by launching stores in Paris. Company has also witnessed financial decline

many times but effective business strategies enabled the company to expand globally. Today the
company is having a retail outlet at more than 1400 locations across the globe.
Product and Service detail of Marks and Spencer
Product range of the company is well diversified. All leading brands are a part of
business operations of the company. Company offers brands like Limited collection, Per Una,
North Coast, Portfolio, Indigo collection, Autograph, Marks and Spencer collection, Classic
collection, Blue Harbour, shoes, cosmetics, Harvard, Wood Spice, Blue Energy. IN women
range company offers brands like Isis, Tess Daly Beauty, Florentyna, Natural Beauty, Earth Spa.
Other than all the above brands company also offer domestic technology products like
Technology- audio and video equipment.
Competitive environment analysis
Competitive environment is recognized as an external business environment associated
with the company. It is more like an external system in which company needs to operate its
business operations. To analyse about the competitive environment of Marks and Spencer model
of Porter Five Forces is used. This model is a dynamic approach in order to analyse the
competitiveness of the business environment. This model involves five forces that put an impact
over company's market presence. Such factors involve competition in the industry, power of
supplier, power of customer, threat of substitute product and power of new entrants.
Competition in the Industry (High): Marks and Spencer operates its business operations in
retail sector. Retail industry is among the major competitive industry sector in the business
environment (Novikov, 2018). Retail sector also carry a huge contribution in the economic
growth of the country as it contains high profitability and sales turnover as well. Due to immense
profitability opportunities in the sector retail industry is among the highly competitive industry
sector covered under business environment. M&S needs to deal with many other leading
competitors like Sainsbury, Asda and others. Company also needs to deal with small retail
companies that also influence the retail market by attracting decision-making of customers. Asda
has a leading market share in retail market that also a huge threat for the Marks and Spencer.
Due to increasing population across the globe the sales turnover of the retail industry is also
witnessing an increasing trend and immense growth rate. It is expected that the retail market will
expand its market share from the existing 12% to 24% till 2024 (Steidle, 2016). Based on the
predictions about the retail sector growth many new entrants will also come and be a part of the

sector that will also improve the competition in the market. Marks and Spencer carry the
business outlets across the globe at more than 1400 locations that also involve competition for
the company in both international and regional market. IN regional market small companies also
dominate by offering products at lower price range. Due to all the above factors this force is high
for the company.
Power of Supplier (Medium): Suppliers are also an important stakeholder involved in
company's operations. Suppliers play a crucial role in making the products reachable for the
target customers as they involve in supplying company's products in every retail outlets across
the globe. Marks and Spencer has a business operation in more than 1400 locations globally that
also involve a huge supplier base to meet the product availability at all such places (Bruijl,
2018). Apart from the operational requirements of the company Marks and Spencer is a huge
brand that also provide opportunities to supplier to earn high profitability from the business
operations. Suppliers are more dependent over big brands in term of raising organisation
profitability rather than dependency of big brands over suppliers. Due to the fact the effect of
power of supplier is medium in nature for big corporate like Marks and Spencer.
Power of Customer (High): Company's market share and growth rate is highly depends upon
the potential buyers of the company. Customers not just involve in company's growth but it also
carries the huge involvement in the sustainability of the organization in the target market. Retail
sector is among the highly competitive market sector that also enable various options to buy
retail products in the most affordable price structure. All strategies of company in respect to
business development and growth are highly depends upon the potential customers of the
company's products. Management of Marks and Spencer also launch products based on the
suitability of company's target customers. Due to heavy involvement of consumers in framing
strategies and company's growth and profitability the power of this force is high.
Threat of Substitute product (High): All such products that can replaced the utilization of
Marks and Spencer products range is considered as substitute products. This force is high in
retail sector as every day something new in coming in the sector that also improves the market
competition for the retail companies (Straková, 2017). M&S deals in clothing, food products and
electric products. The power of this force is high in case of clothing and electric segment as
every day something new is launching in the industry due to market demands and customers
expectations. Clothing sector is highly depends upon fashion and trends that is highly fluctuating

market sector. New inventions are also changing constantly to electric product segment. Based
on the changing trends this force is high for both the segment. In case of food segment this force
is low as food is not much innovative as compare to other segment. Based on the customers
requirements substitute products also launch in the food industry but the sector do not see the
constant development in food segment. Due to the fact the power of substitute products is low in
case of food segment but this force is high for other product segments of Marks and Spencer.
Power of new entrants (Low): New entrants are considered as all the new organizations coming
in retail sector. All such companies that aims to operate business operations in food, clothing and
electric product segment can be called new entrants for the M&S. Marks and Spencer is a huge
brand in retail industry (Aithal, 2017). This force is relatively lower for big corporate brands like
M&S, Asda as such organizations has already an established customer base that enabled the
company management to have a loyal customer base. New entrants needs potential time in order
to achieve influential sales figures with the market presence. Due to the fact the power of this
force is low for the M&S. Specially in the beginning of the business operations this force is
relatively low for the big corporate brands.
All the above forces involve in Porter Five Forces model emphasis over involvement of
all the forces in the company's business operations. Based on the company's presence the impacts
of all the above forces involved in the model is analysed.
Porter's Value Chain Analysis of Marks and Spencer
Value chain is the process which involves activities which increase the value of products
and services to improve company's brand image in market and gain m ore profit margins
effectively. Production, marketing, procurement are some components of value chain activities
of business which helps to increase the efficiency. It is very essential for business organization to
analyse all these activities to increase their efficiency and make them more potential in achieving
objectives of the company effectively (Koc and bozdag, 2017). Marks and Spencer also uses this
framework to understand all the process from purchase to sell which helps them to reduce cost
and attaining competitive advantage effectively. This value chain analysis model is divided into
two major sections which is primary activities and support activities,
Primary Activities
Primary activities are these which are very essential for any business to operate nature of
business to grow in market successfully (Byrne, 2020). These activities are directly involved in

the production and selling of products and services in the market to increase its potential and size
in the market effectively. Analysis of primary activities of Marks and Spencer helps to
understand factors which impact those activities and reducing the potential to achieve its goals.
With the helps of effective strategies company can increase its performance to achieve its
objectives effectively.
Inbound Logistics
Inbound logistics is the area where all the raw material and input resources are acquired
through effective procedures. These activities are directly influenced by the external factors as
they are linked by the market forces (Zhang, Leng and zhou, 2020). There are many activities
which are focused in inbound logistics like inventory management, warehousing, raw material
purchase, transportation tracking. Being a retail giant in the market markets and Spencer has to
increase the relation with their suppliers and also increase the vertical integration strategy to
become more effective in achieving better profit margins. Company has to analyse every process
of raw materials to analyse the alternatives and reduce cost of production effectively. Marks and
Spencer also has to improve the storing techniques by increasing the use of technology and
reducing the time locate the raw materials in the warehouse with proper inventory management.
Operations
This is the second stage of business where all the resources are converted into from raw
material into final products with effective process. In this stage different operations are adopted
to increase the efficiency of raw material and transform them into more value products according
to nature of business and market trends. This phase is the production stage of Marks and Spencer
where they use advanced technological, machines and high skilled labours to increase the
production effective and also reduce cost of production per product. Company also uses different
organization strategy which increase the value of products to improve market share and provide
better profit margins from the sales of products. Marks and Spencer is using economies of sales
as UK is a large markets and companies is also having large network of stores to supply its
products effectively.
Outbound Logistics
These are the activities which helps the company to deliver the products to its customers
and increase their satisfaction level (Huang, 2019). Marks and Spencer is using digital tools
maintain all the orders of its customers. This also helps the company to increase the sales and

with collaboration with different logistics companies it also reduces cost of transportation of
products to customer's place and company's store effectively. Online stores with fast home
delivery of products helps Marks and Spencer to increase customer base and also make them
loyal to achieve competitive advantage effectively.
Support Activities
Support activities are those which helps to provide effective interrelationship between all
the activities in the business and achieving objectives. Marks and Spencer can also increase its
potential by analysing the performance of support activities in achieving competitive advantage
and more profit margins in UK market effectively.
Technology DevelopmenT
Research and development is adopted by marks and Spencer to analyse all the market
factors and increase the information to develop effective market strategies and increase the sales
effectively (Moreno-izquierdo, Ramón-rodríguez and perles-ribes, 2016). With the continuous
assessment of market trends company also increases the opportunity to adopt more effective
technologies and developing them effectively. Marks and Spencer is hard-hitting in integrating
all the operational activities with technology to increase its performance effectively to achieve its
objectives. This also help company to increase customer services engagement and sales
effectively.
Human Resource Management
Human resource is very essential component of any business organization and it provides
better quality of working environment and potential to achieve objectives of the company
(Amara, Halilem and traoré, 2016). Marks and Spencer uses effective recruitment and selection
techniques with the help of information technology to increase the human resource management
techniques in finding and managing potential talents in the company. With the use of Social
media recruitment Marks and Spencer reduces the cost and also increase remuneration of
employees to increase their job satisfaction effectively. Adoption of s information technology
helps the company to formulate effective motivational policies.
Key Value Adding Activities
The key value adding activities of Marks and Spencer are operation activities and
outbound Logistics which helps to develop the innovative products from the raw material and

supply them to their customers with proper distribution channel this also improves the efficiency
of the company to improve the satisfaction of the customers and making them loyal (Zhang,
2017). Outbound services helps Marks and Spencer to reduce cost and delivers products on
promised time.
Two key support activities of Marks and Spencer are Technology development and
human resource management. As technology helps company to increase integration of all the
activities in the organization effectively. Company is very effective in adopting new technology
and developing them to attain competitive advantage effectively. Human resource management
is another support activity which helps to add value in the brand image of Marks and Spencer by
increasing potential of employees and conducting training and development programs to increase
skills and knowledge of employees which helps them to achieve objectives of company
effectively. Human resource management also helps the company to find better talents from the
market and retain them from increasing turnover.
Reflection and Recommendation
From the above report in can recommend that it is very essential for any business to adopt
porter five force and value chain analysis models. In my opinion these model help the company
to under internal and external factors which can generate potential opportunities to attain
competitive advantage and improve the efficiency of the company to increase its share
effectively (Vardar, 2018). I have analysed that Marks and Spencer is using different activities
which helps to increase the efficiency of the company in achieving its objectives. Marks and
Spencer has used these models to identify the level of competition in the market and strengths
and weakness of their activities which reduce the efficiency of the company in the market. Marks
and Spencer need to adopt product differentiation strategy which will helps to reduce the
bargaining power of buyer and with the help of innovation of new products company can
decrease the threat of substitute products in the market. Company need to adopt online feedbacks
of customers to understand the issues and change in buying pattern of the customers. Random
social medial questionnaire of users will help the company to determine perceived value of the
company's products in the market. Use of kiosk system for billing and check out will decrease
the customer waiting in the stores and also attract them to visit more. Use of integrated server
will help the company to reduce cost of accounting and also provide proper financial

performance statement. This will increase the satisfaction of stakeholder of the company
effectively. In my opinion Marks and Spencer should adopt digital grievance forums for
employees to understand their issues and formulate effective strategies to increase their
satisfaction and reduce employee turnover. By using digital tools human resource manager can
also perform effective job analysis to develop job description and increase efficiency of
recruitment and selection process. I feel that company should increase the efficiency of customer
fast delivery system and also develop mobile application for customers to track and replace their
orders effectively. Marks and Spencer need to adopt healthy clothing segment due to increase in
health consciousness of customers in UK market which will also help the company to attract
more customers effectively.
CONCLUSION
This report concludes that it is very essential for business to adopt information
technology to increase their efficiency by gaining more information internally and externally.
Report discussed different threats of competition which impact the business operation and
reduced its performance to survive in the market. With the help of Porter five forces company
has analysed all the threats to formu8late effective strategies and reduce external challenges
effectively. Report also highlighted porter value chain analysis of Marks and Spencer which
helped the company to understand all the internal activities and adopt effective information
technology to increase innovation of products and services effectively.

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Online

Byrne, T., 2020. Marks And Spencer Group Plc Value Chain Analysis. []. Available
Through:<https://www.essay48.com/value-chain-analysis/9035-Marks-And-Spencer-
Group-Plc-Value-Chain-Analysis>.