This document explores the role of information technology in business innovation and its impact on Marks and Spencer. It analyzes the competitive environment, inbound logistics, operations, and outbound logistics. It also discusses the support activities in Porter's Value Chain.
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Managing Information and Technology 1
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Table of Contents INTRODUCTION..........................................................................................................................3 MAIN BODY..................................................................................................................................3 Introduction about Marks and Spencer...................................................................................3 Background information about Marks and Spencer...............................................................3 Discuss products and services of Marks and Spencer............................................................4 Analyse the competitive environment....................................................................................4 Analyse inbound logistics, operations and outbound logistics...............................................7 Analyse any two support activities in Porter's Value Chain of Marks and Spencer..............8 Identify key value adding activities with justification...........................................................9 Business could deploy information technology, innovative idea for enhancing competitive position.................................................................................................................................10 CONCLUSION..............................................................................................................................10 REFRENCES.................................................................................................................................11 2
INTRODUCTION Information technology is considered as a tool which foster innovation in business. Through innovation, an organisation able to gain numbers of benefits such as they can develop smart application, fast processing, enhance data storage, help in distributing information and so on. In a company innovation technology play a major role in data management, R&D, sales, marketing,communication,customerinteraction,logisticsandsoon(Bryson,2017). Organisation selected for this assignment is Marks and Spencer which is operating in retail industry. It was founded by Michael Marks and Thomas Spencer in 1884. They are operating at the worldwide level. Topics included in this report are about a detailed information of company including its background, products and services. It will also include analysis of competitive environment, logistics, operations and outbound logistics as well as report also describe about porter's value chain along with key value adding activities. MAIN BODY Introduction about Marks and Spencer Marks and Spencer is British retail store which is operating at the multinational level. It was established in Leeds, United Kingdom. Its head office is located at London, United Kingdom. They are operating at the worldwide level having approx 1463 locations. Marks and Spencer is listed on the London Stock Exchange as well as it is also constituent of FTSE 250 Index. Currently respective retail company has more than 959 stores across the United Kingdom that include nearby 615 store which only sell food and drinks products. There are approx. 80,787 employees are working at Marks and Spencer London till 2018(Campos, 2016). The main purpose of Marks and Spencer is to serve as a general store which caters lower upper and middle class people. They want to offer quality products range which are segmented into foods, clothing as well as home décor. Moreover, mission of Marks and Spencer is to develop standard of high quality performance in order to satisfy customers by providing quality products and services at the potential marketplace. 3
Background information about Marks and Spencer Marks and Spencer was established through partnership among Michael Marks and Thomas Spencer. Michael Marks was a polish Jew who born in Slonim and he is migrated to England, United Kingdom in year 1880. Thomas Spencer was a cashier at the English market town of Skipton, North Yorkshire. After coming at England, Marks joined organisation in Leeds named Barran. In 1894, Marks acquire a permanent stall in the Leeds market after that he invited Spencer to become his business partner. After that 1901, Marks moved to Birkenhead which is open market as well as at this place he amalgamated his business along with Spencer(Castillo, DePasquale and et. al., 2017). At 24thFebruary 1923, Marks and Spencer left the market of Birkenhead. In 1973 respective company expanded its business operations and functions at Canada market. After that in 1988 Marks and Spencer acquired two big companies i.e. Brooks Brothers which is an American Clothing store and a US food chain named Kings Super Market. Discuss products and services of Marks and Spencer Marks and Spencer offers high quality clothing, food products and home products at the worldwide level. There are numbers of sub brands through which Marks and Spencer offers their products and services such as Per Una, Rosie, Autograph, Blue Harbour, Limited, Marks and Spencer Collection, Marks and Spencer Energy and so on. Along with this, they also have a subsidiary i.e. Marks and Spencer band which is owned by HSBC band since 2004. Marks and Spencer offer wide range of clothing, footwear, jewellery, food products for kids, women as well as men. For female they offer wide collection of belts, hats, shoes, bags, designer fashion garments, scarf, night clothes, bags, umbrellas, lingerie’s and many more (ABOUT US,2020). Similarly, Marks and Spencer offer huge range of products for men and kids such as bags, belt, shoes, coats, cloths, dresses, hats and so on. Along with this they also offer both formal as well as informal wears. Moreover, Marks and Spencer also offer other services such as international brand, M&S bank, M&S energy and so on. Analyse the competitive environment Competitive environment is determined as dynamic external system through which a company competed as well as functions according to their set goal. If there is huge numbers of sellers of similar products and services, then company will competing in huge competitive marketplace or environment. Where there is less seller of any specific product and services then a firm will gain competitive advantage which help them in gaining high profitability and market 4
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shares from potential marketplace(Evans and Price, 2017). For example, clothing company faced huge competition at the marketplace because there are numbers of other clothing firm who offer similar variety of cloths. Along with this they also faced competition from both local, national as well as international clothing firms. In respect of Marks and Spencer they are conducting their business at the multinational level due to which they face wide competition fromlocalaswellasinternationalretailcompanies.Inordertodeterminecompetitive environment a company may adopt different model or theories. For conducting analysis of competitive environment Marks and Spencer may adopt Porter's five forces model, which is defined below: - Porter's five forces model Porter's five force model is developed by M. Porter in the year 1979. It is considered as method or tool which is adopted by an organisation in order to analyse their competition of their business as well as it also help in identifying strategies for the potential profitability(Fernandez and Chiambaretto, 2016). It is essential for companies to adopt Porter's five force model as through that they can determine strategies in order to avoid impact of forces on its business profitability as well as market shares. Respective model include five key forces which are competitive in nature and they affect industry. In respect of Marks and Spencer by implement Porter's five force model they able to analyse their competitive environment in effective manner as well as it will also help them in developing effective strategies. Explanation of different key factors of Porter's five force model are given below:- Bargaining power of customers:Through this force power of customers or buyer at the marketplace can be determined. If the power of customer will be high then they can demand for high quality products at the low price whereas their power will be low then they have to pay more amount for low quality products and services (Porter's Five Forces,2020). In respect of Marks and Spencer, bargaining power of their customer is moderate because they have both huge loyal as well as normal customers. Customers who are loyal use respective company credit card and loyalty card but there are some buyer who easily switch to another retailers like TESCO, NEST Plc., John Lewis and so on . Bargaining power of suppliers:This key force help in determining power of suppliers of a company. If suppliers have strong bargaining power they can offer or provide low quality resources or material at the high price whereas if the power of supplier is low 5
them they have to offer quality material or resources at the low price. When there is few suppliers and many buyers then the power of suppliers will be high(Joshi, 2018). In respect of Marks and Spencer bargaining power of suppliers is both high and low. In context of technical as well as specialized products respective company face high power of suppliers. On the other hand in term of foods as well as cloths suppliers faced low power at the market place. Industrial rivalry:This force help in determining competition at the specific industry as well as through it profitability level of industry can be evaluate. If there is huge number of competitive companies at the marketplace then industry rivalry will be high whereas if there is high entry and exit barriers then less competitive company operate in same industry which show low threat(Khalifa and Ali, 2017). In respect of Marks and Spencer, there is less threat of competitive rivalry because there is no main competitors who provide similar products and services. Along with this respective company also provide huge range of clothing, food and home décor for men, women and kids through which they can gain competitive advantage. Threat of new entry and exit:Through this force a company can determine that how easy any new firm can entry or exit into the specific industry. If a particular industry is profitability as well as there is low barriers to entry or exit then threat of entry and exit will be high. Whereas if there is strong barriers then threat of new entry and exit is high. In respect of Marks and Spencer, they are operating at retail industry and it is a well known and established house hold brand at the United Kingdom market. They are also operating at respective industry from long time due to which they have strong market shares as well as goodwill (M&S Five forces model,2020). So it can be determined that threat of new entry and exit is moderate for Marks and Spencer because it is not easy for every new firm to be competitor of such a big brand. Threat of substitutes:According to respective force, it can be threatening when customers can easily find any substitute products and services of a company as well as that can be at less price or of a better quality. In order to avoid this an organisation need to come up with unique and attractive products and services which substitutes is not available at marketplace. In respect of Marks and Spencer, threat of substitute product is 6
high because there are numbers of other companies who offer similar kind of products at the reasonable price. By above analysis it can be justify that Marks and Spencer have moderate competitive environment which mean at some forces they are gaining benefits whereas at some forces they have threat which may impact on their business performance. So it is essential for respective company to develop new, unique and attractive products i.e. clothing, foods and home décor as that will help them in attracting more and more customers. Along with that it will also encourage them to purchase their products immediately because through that they able to increase their profitability as well as market shares effectively. Analyse inbound logistics, operations and outbound logistics Inbound Logistics:It refers to factors which include several elements such as sourcing, expediting, storage, transporting as well as receiving goods which are coming into a business(Khan,FlanaganandLu,2016).Thiswillgenerallyfocusesonthe transportation as well as storage of goods and service which are incoming. In respect of Marks and Spencer, they need to adopt quality control factors as that will help them in maintaining quality of goods from starting i.e. manufacturing till end i.e. delivering products to customers. By adopting this approach respective company able to get opportunity which will help customers in getting quality food, clothing and home décor products. This also provide high value to the money of customers as well as it will also minimise additional cost in products. Operations:It is considered as function which is related to managing of inner works of a company or business so that it can be conducted effectively as possible. At this function an organisation make as well as sell products or offer services to potential and targeted customers of business. It is also considered as second level of value chain model in a company. In respect of Marks and Spencer, it is essential for them to perform their operations in effective manner as that will help in fulfilling need and demand of customers successfully. Along with this, they also need to emphasis on implementing new, unique and innovative approach at workplace as that will enhance performance of employees. OutboundLogistics:Itisconsideredasprocedureoftransporting,storingand distributing products and services to potential customers according to their need, demand 7
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and expectation(Maetzler, Klucken and Horne, 2016)). Generally this model or process start when customers conducts sales order then it moves to warehouse packing and at last it ends with delivering of products and services to customers. In respect of Marks and Spencer, their management need to design attractive and innovative outbound logistics which include safe and attractive packaging, less delivery time and many more. This is so because it will help respective company in providing quality as well as with damage productsto theirpotentialcustomersthathelp in satisfyingtheir need, want and expectation. Analyse any two support activities in Porter's Value Chain of Marks and Spencer This model is developed by Michael Porter in year 1985. Value chain analysis is considered as strategic tool which is used by a company in order to analyse activities conducted inside the firm(Pattinson and et. al., 2017). These activities are determined as source of cost as well as differentiation advantage. It will also help an organisation in gaining competitive advantage at potential marketplace. Value chain model activities are divided into two activities i.e. primary activities as well as secondary activities. There are numbers of activities which are includedinvaluechainmodelsuchasmaintainingfirminfrastructure,humanresource management, development of technology, procurement and many more. Marks and Spencer adopting Porter's value chain model in order to determine competitive advantage against Next, Aldi, John Lewis Partnership, TESCO and so on. Below explanation of two support activities of Marks and Spencer are given below:- Two secondary activities of Marks and Spencer Humanresourcemanagement:Thiswillincludeactivitieslikehiring,training, developing,recruiting,compensating,motivatingandmanyotheractivities.By conducting this activity an organisation able to enhance performance of their worker which directly help them in attaining desire goal as well as objective. In respect of Marks and Spencer, their human resource manager need to recruit, hire, develop, motivate and so on. This is so because through this they able to conduct their work in effective as well as efficient manner. Procurement:It refers to acquisition of inputs or resources of an organisation in order to desire result and objective. Along with this it will also help a company management to do their business operations and functions in effective manner so that they can perform 8
properly for attaining outcome(Pearlson, Saunders and Galletta, 2019). In respect of Marks and Spencer, they need to develop as well as maintain effective procurement activities as that will help them in attaining their goal by providing quality services to customers. These are main two support activities which are necessary to be conducted by Marks and Spencer because through that they able to manufacture quality products i.e. clothing, foods and home décor. Moreover this will also help in satisfying customers need, demand and expectation in effective manner. Identify key value adding activities with justification Value adding activities are those activities or action which enhance benefit of specific products and services to potential customers(Rauscher, 2017). For a company it is necessary that they must conduct analysis and determine which activity add value to their products so that they can satisfy need as well as expectation of customers. In context of Marks and Spencer, key value adding activities are given below:- Marks and Spencer must introduce new as well as innovative design on the regular basis because that will help them in attracting customers as well as it will also increase their loyalty. This can be beneficial for all i.e. companies, employees and customers such as by providing quality services customers able to increase their market value as well as it will also motivate employees which increase their performance. Along with this, it help customers in getting new, attractive and trends clothing, foods and home décor that are value for their money. Marks and Spencer must increase their promotional activities because through that they abletoattractmoreandmorecustomersfromallleveli.e.local,nationaland international. This will also help company in increasing their profitability, sales and market shares at the potential marketplace(Ustundagand Cevikcan, 2017). In addition to this, Marks and Spencer may adopt different promotional techniques such as digital media, social media (Facebook, LinkedIn, Instagram and so on). By considering above mentioned value added services Marks and Spencer able to provide quality services to their customers which help in fulfilling their need, demand and expectations in successful manner. 9
Business could deploy information technology, innovative idea for enhancing competitive position There are numbers of information technology and innovative ideas which Marks and Spencer can adopt in order to gain competitive advantage at the potential marketplace. From which some main points are given below:- Respective company can design cloth which have in built sensors for collecting medical data. This is so because through that they able to show their concern toward customers which increase their brand value as well as customer's loyalty. Marks and Spencer can also install woven in touch sensors which used to control phone through that they able to make life of customers more easy(Joshi, 2018). Moreover it will also help them in attracting huge customers as well as it will also help in increasing market value which lead to enhancement in sales and profitability. Respective company can also use technology which help in developing fabric which harvests energy as that will help in improving customers health. Through this Marks and Spencer able to increase sales and market value. Moreover, by adopting all these advance technology and innovative idea Marks and Spencer able to attain competitive advantages in successful as well as effective manner. CONCLUSION From above discussed point it can be analyse and summarise that now a day for each and every company it is essential to adopt information technology because through that they able to conduct their business operations and functions in effective manner. In order to implement information technology at workplace in effective manner company need to conduct numbers of activities such as conducting deep analysis of company along with their background as well as products and services. Along with this an organisation also need to conduct competitive analysis and for that they can use porter's five force model because through that force management can determine their level at competitive marketplace. Company also need to conduct analysis of their business operations and functions for that they can adopt porter's value chain model in which they need to analyse both primary and supporting activities. They also need to analyse whether business can deploy information technology or not. 10
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REFRENCES Books and Journals Bryson, J., 2017.Managing information services: a sustainable approach. Routledge. Campos, J., 2016. Managing the information systems in the industrial domain.Cogent Business & Management.3(1). p.1180967. Castillo, F., 2016.Managing information technology. Springer. DePasquale, N. and et. al., 2017. The psychosocial implications of managing work and family caregivingroles:Genderdifferencesamonginformationtechnology professionals.Journal of family issues.38(11). pp.1495-1519. Evans,N.andPrice,J.,2017.Managinginformationinlawfirms:changesand challenges.Information Research: An International Electronic Journal.22(1). p.n1. Fernandez, A. S. and Chiambaretto, P., 2016. Managing tensions related to information in coopetition.Industrial Marketing Management.53.pp.66-76. Joshi, K., 2018. Managing Information Asymmetry Risks Using Deal Syndication and Domain Specialization: An Indian Context.Asian Journal of Innovation & Policy.7(1). Khalifa, G. S. and Ali, E. H. M., 2017. Managing drivers and boundaries of information technologyriskmanagement(ITRM)toincreaseEgyptianhotelsmarket share.International Journal on Recent Trends in Business and Tourism.1(1). pp.12-31. Khan, K. I. A., Flanagan, R. and Lu, S. L., 2016. Managing information complexity using system dynamics on construction projects.Construction management and economics.34(3). pp.192-204. Maetzler, W., Klucken, J. and Horne, M., 2016. A clinical view on the development of technology‐based tools in managing Parkinson's disease.Movement Disorders.31(9). pp.1263-1271. Pattinson, M. and et. al., 2017. Managing information security awareness at an Australian bank: a comparative study.Information & Computer Security. Pearlson, K. E., Saunders, C. S. and Galletta, D. F., 2019.Managing and using information systems: A strategic approach. John Wiley & Sons. Rauscher, E. A., 2017. Investigating uncertainty in genetic counseling encounters: Managing informationaboutgeneticcancerrisk.Journalofhealthcommunication.22(11). pp.896-904. Ustundag, A. and Cevikcan, E., 2017.Industry 4.0: managing the digital transformation. Springer. Online ABOUTUS.2020.[Online].Availablethrough: <https://corporate.marksandspencer.com/aboutus>. M&SFiveforcesmodel.2020.[Online].Availablethrough: <https://prezi.com/4yj90gygy6yu/ms-five-forces-model/>. Porter'sFiveForces.2020.[Online].Availablethrough: <https://strategicmanagementinsight.com/tools/porters-five-forces.html>. 11