Managing Information and Technology in Marks and Spencer
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This report discusses the role of information and technology in Marks and Spencer, competitive analysis using Porter's Five Forces, and value chain analysis. It explores how IT helps in achieving competitive advantages in the market.
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Managing Information and Technology
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Introduction of company.............................................................................................................3 TASK2.............................................................................................................................................4 Porter's Five force model............................................................................................................4 TASK3.............................................................................................................................................6 Chain analysis of organisation....................................................................................................6 TASK 4............................................................................................................................................8 Reflection and summarization of how IT is helpful in achieving competitive advantages in market..........................................................................................................................................8 CONCLUSION................................................................................................................................9 Books and journals....................................................................................................................10
INTRODUCTION Information and technology is being increasingly used in businesses in the contemporary competitive marketplace so as to increase the competitiveness of company and to increase customer base by attracting more number of customers. IT management refers to practices, procedures and policies related to managing IT in company so that it can be used to optimise resources and staffing, improve business processes and communication. IT helps businesses to store and use information related to them in an efficient manner so that business products, services and processes can be improved and high profits can be generated for company. This report is based on Marks and Spencer which is a major British multinational retailer that offer high quality clothing, home and food products with its headquarters in London, UK. The company was founded in 1884 and employs about 80,787 workers in company. In this report the role of IT in M&S, analysis of competitive environment of company, use of Porter's five forces mode, value chain of company, inbound and outbound logistics of company etc. will be discussed so that a company can gain a competitive edge in market. MAIN BODY Introduction of company M&S is an international British retailer which was founded in 1884 by Michael Marks and Thomas Spencer and has its headquarters in London, UK. The company deals in high quality fashionable clothings and also offer home products and food products through its 1463 stores which are present all across the world. There are about 80,787 employees working in the company and earns a revenue for about £ 10.6 billion euro (Storey. and Song, 2017). Product provided by M&S is clothes, eatables and high standard of house hold products. This company is only selling products that are made in Britain. The current CEO of this company is Steve Rowe and he has been appointed in the year 2016 and is holding the position till present time. Business of this company is spread across 157 countries in the world. M&S has established as an clothing wear for men and women in United Kingdom. Objective of this company is to provide quality in products and introduce innovative trends to survive in a long term. Vision of the company is to be efficient in working and gives best out of its services to its customer. Company has targeted customers who are ranged between 25- 60 age group and also those people who are looking for latest trends and stylish wear in clothing. Those customers are also attracted by company who are
looking for new and tasty food items.The company mainly deals with denim and sell jeans of new style, shapeor sizes (Hemker, 2020). It has improved its sales by 20%in recent years. They also introduced special item likeprawn sandwich in which hight quality of prawns are used and is served with an unique sauce. This become very popular in the market. This Brand is enhancing itself day by day to increaser satisfaction among its customers. This has been done by M&S company through fluctuatingpricesof itsproduct which made it approachableto customers of every class. The company has also maintain its standard in quality. To enhance their quality and make it more superior M&S is using marketing plan that is mid term plan of marketing. TASK2 Porter's Five force model In Porter's five force model there is a framework or a skeleton structure that is there to help industries and organisations. It analysesthose elements which impacts the organisation in growing itself within a market (Wilkerson 2018). This model basically creates an influence over both internal and external factors of an organisation. Concepts which are covered in this model is related to both customers and buyer. Further five forces of this model is explained below in more detail. Rivalry among existing competition in a market:The force is usedto measure the amount of competitors which are present in a market (Omboni, Caserini. and Coronetti, 2016). It is also there to make an analyse over the phase which is there in present market and condition of rivals of the company in it. This is also there to high light those areas and point which has made rivals a strong rival. It can be understood in a way as techniques used by other company to sustain in market and create a competition for existing country. Range of rivals are very large and there is lot of rivals present in market to compete against M&S because it is an cloth and food product manufacturer. Due to increasing competition with companies like Tesco, Zara. M&S has modified its prices for both clothing wear in order to attract more customers which are from different classes of society. This is also done for the purpose of maintaining its suitability and healthy competition in market. This can create an negative impact over Marks and Spencer in a waythat loss of customers leads toward lack of selling of product and decreases rate of profit.
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Suppliers Bargaining power:In this forceall the power lies with the suppliers which means that supplier has to keep a check over the supplies which are being made by company in a market. In other manner new products coming in the market is to be checked by M&S in order to enhance there product and in crease there supply. Bargaining capacity of seller is effected because of presence of uniqueness in a product supplied by another supplier. It increases because of the various suppliers present in an market and fluctuation in prices by suppliers. According to the present situation of market M&S has to change its suppliers for purchasing raw materials. This is necessary as company purchases goods in large amount. As M&S is an manufacturer and a bigger brand this provides it with an opportunity of creating price according to the preference of its customers. Being a private company they are not going to be impacted in terms of money from changing supplier. Hence this is not going to create any kind of threat over the company Marks and Spencer (Maetzler,, Klucken. and Horne, 2016). Bargaining power of buyer:Vision of Marks and Spencer is focused over creating a satisfaction for its customers in every aspect of quality and product. As lot of buyers are their in an market and its main focus is over brand value, cost efficiency and its personal satisfaction. In this force companies main focus is on sensitive nature of customer and over the preference he made for purchasing of a product. In context to M&S capacity of bargain by the customer is lesser. So, buyer is not going to switch its cost and the other alternatives available in market is of very high value. Now M&S has a benefit in price making. It can enhance its relationship with customer which is going to ultimately leads in rising of customer's percentage and the company is going to be able to gain sustainability in the market. Due to its consistency in maintaining quality for its customers, M&S is able to cover a large area of market and also is able to provide satisfaction to its customers. As company is having higher percentage in retail sector this helps it in reducing bargaining power of customer (Barak, 2017). They are workingovergenerating strength with its customers and protecting its basic structure. Threat of substitutes:This deals with the number of alternatives which is arising or are present in market and is selling same product as that of M&S. In order to determine these substitute similar products sold by other company is to be recognised. As there is going to be rise in percentage of substitute risk over competition is going to be more. Threat of this kind is more on M&S because there are lot of other seller who are selling same product and is offering lesser rate. Competitors like Tesco andsainsbury is giving tough competition to M&S because
manufacturing of latest trending clothesis easy for such brands. These brands are selling the products at lesser cost which is directly impacting M&S in negative manner. Also in food sector there is lot of competition because of presence of lot of variety in market. In this case M&S has to uplift standard of their product in order to differentiate them from other product of same nature. M&S is achieving these standards by creating uniqueness in formation of its products and clothes. This done for the purpose of creating an ease for customer to identify M&S products and clothing. Threat of new entrants:As a new product has been launched in a market and new variations is created in market that provides motivation to new firms. It also gives opportunity of profit sharing to new firms entered in the market (Rizzo, Charles, Boehler,. and Meziache,uh., Cho. and Kim, 2017). This force is their for determination of the customers preference over a brand. Also for the influence of government in that particular industry. M&S is an well established company in retail sector and has high cost rate, so it is not going to be easy for it to create an effect in the minds of its customer. To come into retail sector a company needs to invest higher amount of capital for this M&S has a plus point of quality of product and its differentiation. This gives them ability to sustain in a market and leadership efficiency. So loyalty of a customer towards M&S is going to maintain their loyalty towards it. Due to this advantage M&S is able to create large amount of profit and sustainability is also maintained in market. TASK3 Chain analysis of organisation Porter's value chain is those activities in which elements are analysed for the purpose of improving business (Rohitratana, Kaewta. 2017). It is also essential for its growth and profit gaining capacity. Dues to these activities and their introduction, changes which are going to occur is going to increase in sales of the company. It plays an important role for an organisation like M&S because this helps in identification of those activities that is effecting business of a company in very crucial manner and ca not be ignored. After the analysis under value chain is done then Marks and Spencer is able to take out those primary and supportive activities which helps company in gaining growth and development of customer range. Primary activities includes sales, services, operations, logistic and marketing and secondary activities are those
activities which is acting for upliftment ofproduct and services such as infrastructure, human resources, management and technological development. M&S is helped through its primary activities because these activities isdirectly effecting the production and selling of goods and services to its customer. Such primary activities are explained below: InboundLogistics:Activitiesofthesekindsaretheirforthedevelopmentand strengthening of relations with supplier (.Dancho, Fitzpatrick. and Li, L.Lioukas.). This is done in order to maintain availability of raw materials on time. Building of stronger relationship with the supplier is going to help a company in getting more facility and support in getting less delay over supply of raw materials. Marks and Spencer is going to be benefited out of this analysis in a way that challenges related to bringing of raw materials into finished product is identified. Due to this analysisthe managers of Marks & Spencer is going to make delivery of raw materials within time an is going to save production process from getting effected in any manner. Operations:These are their which helps the raw materials in formation offinished goods and the activity is processed upon receiving of raw materials by the company. The activities of Marks and Spencer that comes under this are assembling of products, its packaging, testing and machining. All these activities can be done only when company has received all the materials required for producing of finished product. Due to the analysis of this activity their is going to increase in efficiency and productivity which is going to enhance competitive advantage of a company. Due to this consistency in growth is achieved by the company. Outbound Logistics:In these kinds of activities are related to the supply of products to the customer. Marks & Spencer is going to be benefited out of these activities as it is going to help in handling, scheduling, processing of order and also transportation cost is analysed (, Reuer. and Zollo, 2016). This helps Marks and Spencer in determination of sources which bare responsible for competitive advantages. Cost and management of time and delivery of goodsis an very important thing. After this analysis there is going to be reduction in the possibilities of delay for delivery. Further in this primary activity there are various types of activities that istheir to be performed by an company which helps in increasing coordination and facilitation of primary activities. Company Marks and Spencer is following lot of supportive activities which has helped them to increase their value among their customers.
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Technologicaldevelopment:Developmentof terotechnologicalaspect is the most important thing in an organisation because of this only lot of advantages over competitive level is gained. Company Marks and Spencer it is very important from the point of view that it is going to add value to the production, distribution and marketing activities of the company. Due to this activity only there is an differentiation in the technological process and in the production activity. In this way only it provides support for the enhancement and uniqueness in research over design of products. Activities related to research and development come under the same category only (Trahan and et. al. 2017). Procurement:The value of procurement activity in value chain is that it needs to check over the pro curation and saving of raw materials, equipment and funds of a company. This is their to help in production of finished goods. Company Marks & Spencer has to consider or is required to consider these activities because if the cost is managed. Then inbound and outbound logistics of the company is managed in an efficient manner. This leads towards the development and growth of company in more effective and faster rate. Also the efficiency in operation is going to improve because it is going to lead in upliftment of the manufacturing of a product with in its time limit and increases efficiency. TASK 4 Reflection and summarization of how IT is helpful in achieving competitive advantages in market As it is a well known fact that in present scenario every work, business andcompany is performingitsfunctionbyusinginformationandtechnologies.Themajorbenefitof introduction of IT sector in these organisations is that this has helped in enhancing performance and providing it better opportunity. Also gives guidance towards those measures which is correct for the growth of an organisation. It gives an opportunity to an organisationto in crease consistency of performance and create an systematic manner for performing a particular task. Company Mark and Spencer is benefited out of this because it is going to increase performance and make it better. In every manner and in tough situations the company has to face direct competition in market. Competitors such asTesco plc , ASDA and other are their. Companies such as M&S is willing to improve its results and for this it has to first need to focus over introducing of their latest trending techniques and technology. Let us understand this with an
example that management has brought out a way under which the process of online payment is to be accepted. This is going to make payment for customers easy and payment is going to be done through online mode. This is going to increase saving of time and then requirement to carry cash is also going reduce. Second thing is that there is going to be more focus over online store and less over physical store. This is going to attract customer and going to cover large area in terms of customer. This is also going to increase comfort of customer that is going to attract customer at larger to the organisation. Their are some other ways in which effect over the company like M&S in further addition to this there is to be introduction of artificial intelligence which can effectively guide customers in terms of product and also benefits related to them. This is going to bring out the uniqueness and innovation from the part of the company which attracts customer at large in a market. It is also going to give very tough competition to itscompetitors. IT is used in management as it is going to help in enhancing of new techniques and technology. In automatic check I very useful for the customer as the problem of standing in a line is going to b sorted out and payment smoothness is also maintained. Marks and Spencer needs to understand latest technique which is going to help them in achieving its goals and objectives. CONCLUSION In the above file it has been analysed that usage of technologies of latest kind is going to help in enhancing performance of company. Further it is understood that it helps an company in attracting new customers and achieving of goals. Internal and external factors are helpful from point of view that it allows M&S to deal in positive manner to deal with its rival. Lastly this is going to help in dealing and identificationof those external factors which can creates issue in achieving goals to an organisation..
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