Business Report: Marks and Spencer Group PLC Analysis and Impact

This report provides an analysis of Marks and Spencer (M&S), a major player in the retail industry. It begins with an introduction to the company and then delves into the key issues M&S is currently facing, primarily a sharp decline in sales, particularly in clothing. The report highlights the importance of Corporate Social Responsibility (CSR) for the company's brand image, customer relations, and overall performance, detailing M&S's various CSR initiatives. Furthermore, the report examines the impact of Brexit on M&S, including declining clothing sales, impacts on food sales, store closures, and increased costs and time for operations. The report concludes by summarizing the key findings and includes references to supporting sources.

BUSINESS INTRODUCTION
Table of Contents
INTRODUCTION- .........................................................................................................................3
MAIN BODY-.................................................................................................................................3
1)Key issue that organization is facing.......................................................................................3
2)Importance of Corporate Social Responsibility.......................................................................4
3)Brexit impact on Marks and Spencer group Plc......................................................................5
CONCLUSION- .............................................................................................................................6
REFERENCES-...............................................................................................................................6

INTRODUCTION-
Business is a type of activity that involves producing and selling goods or services. There are
different forms of business like, sole proprietorship, Limited Liability Company etc.
Marks and Spencer belongs to retail industry. It was founded in 1884 by Thomas Spencer
and Michael Marks.
MAIN BODY-
1)Key issue that organization is facing.
Recently, Marks and Spencer is facing the problem of a sharp decrease in its sales. There is a
decline in the sales of the clothing products of the company. As per the financial statements of
year 2017-18, profit before tax of the company has fallen by 62%. Company has planned to shut
down three main clothing stores in coming next four years(Doh, 2015).
It will increase the cost to the company by £150 million. The management team of company will
set up a strong business plan to revive the business of the company. To revive the business,
company has to make changes in the organizational structure. Changes were also to be made in
the culture of the company. To support all these changes, company has to invest huge amount on
employment of new employees and on other facilities of the company.
As per scientific management theory of Taylor, Marks and Spencer should divide entire project
in small tasks and each employee should be given a particular task to perform. Management team
must review the performance of their employees that, whether they are performing their job
effectively or not. Company must implement a proper strategy in the company to bring change in
the structure of the organization. Human Resource Manager should allocate the work between
supervisor and employees so that, all the conflicts can be resolved. Company should employ
employees of different cultures so that, cultural diversity can be promoted in the organization.
And they will help the company to improve the profits (Mason, 2016).
2)Importance of Corporate Social Responsibility.

Corporate Social Responsibility means responsibilities of an organization towards the society. It
plays an important role for the performance and reputation of the company. Company must align
their business strategy with corporate social responsibility. Company has responsibility towards
issues like, reducing the poverty, empowering women etc. If a company is socially responsible
then it will help the company in improving its brand image, also improves shareholders
confidence on the company. If a company is having a policy for fulfilling social responsibility
then it will positively impact the buying decision of the customers of the company. When
company has strategy linked with social responsibilities then, it will help the organization in
improving the relationship with customers and improves the reputation of the company. Marks
and Spencer has fulfilled various social responsibilities related with its customers, partners,
suppliers and environment etc. Company provided huge amount of donations to various
organizations as a part of charity. In this way, the company helps the homeless peoples.
Company also donates the fund in case of happening of any disaster. Before donating the fund it
considers the real need of disaster affected areas.
Marks and Spencer also develops plans like, 'eco plan' to reduce the level of energy consumption
by 25%. Company is making efforts on production of products and services that emit low carbon
in the environment. Company has planned to use the wastage for producing green energy. It has
cut the usage of bags by 33%. Company has committed to use raw materials that comes from
Illustration 1 Corporate Social Responsibility
Source: Corporate Social Responsibility and its importance, 2018

sustainable sources only. Company also have policy for preventing health related problems of
employees(Smith, 2016).
3)Brexit impact on Marks and Spencer group Plc.
Although Brexit impacts functionality of Marks and Spencer group plc in many ways. Here their
impact will discuss as follows :
 Clothing sales dropped
Brexit hit Marks and Spencer group plc by declining their clothing sales. The sales of the
company fell by 8.9% within three months. Marks and Spencer faces difficulty in target
achievement.
 Impact on Food sales
Brexit also affects food sales of Marks and Spencer group plc by almost 1%. By this company
decreases its profitability and therefore, difficulty in able to achieve sales target.
 Stores closed
The stores of Marks and Spencer group plc were closed at the time of Brexit. In 2016, company
closed its five full line stores in France, which was indulging in business of foods and clothing.
Also, Marks and Spencer closes flagship stores on Champs Ely-sees.
 Extra cost and time
Sandwiches of Marks and Spencer are produced in a factory situated at Northampton. There
were 20 stores in France and 19 of them were in Paris. But border issues delays trading of
sandwiches. By this, their customers shifted to different brands. Therefore, company faces loss
of customers as well as extra time and cost.
CONCLUSION-
The above Report has described the key issue that Marks And Spencer is facing currently. The
Report has also explained the importance of Corporate Social Responsibilities and impact of
Brexit on Marks And Spencer.

REFERENCES-
Books and Journals
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special issue. Journal of
World Business. 50(2).pp.256-261.
Mason, C., Botelho, T. and Harrison, R., 2016. The transformation of the business angel market:
empirical evidence and research implications. Venture Capital. 18(4). pp.321-344.
Smith, L.C. and Wong, M.A. Eds., 2016. Reference and Information Services: An Introduction:
An Introduction. ABC-CLIO.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Online-
Corporate Social Responsibility and its importance. 2018. [Online] Available Through
:<http://greatpeopleinside.com/csr-growing-importance/>