Product Development at Marks and Spencer

Added on - 05 Apr 2021

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Marks and Spencers(SBU- FOOD)Introduction:
On 28th September 1884, Marks & Spencer was formed as a partnership betweenMichael Marks and Thomas Spencer. They started selling basic groceries likecookies, needle, thread, buttons. They provided opportunity to consumers to dowindow shopping that is they can take a glance of the products without paying anyamount. After the success, they opened 35 more stores in earlier 1900. Thecompany's 914 UK outlets-222 managed and 349 Simply Grocery stores franchisesas well as 302 full-line apparel and home stores and an e-commerce site of overseven million registered users service 33 million consumers with a turnover of £ 5.2billion and £ 4.0 billion in two divisions (food and general merchandise). M&S is amarket leader in womenswear, menswear, and lingerie in the UK market. The foreignbusiness of the group, which consists of 468 wholly owned, jointly owned.This assessment will be divided into two parts A and B focusing in “Food” asstrategic business unit. Firstly we shall discuss Internal analysis followed by a smallsummary, similarily, external analysis followed by business strategy used by M&S. Inthe end of Part AInternal Analysis of M&S Food
Strengths:The brand’s strong reputation.Broad range of product line.Strong emphasis on improving customer’s experience.Healthy food product range.Weakness:Less expenditure on promotions.Issues with on-time delivery.Poor technology in reading inventory.Lack of foreign suppliers.The business is losing key workers to its main rivals, including productcreators and food technologists. (Darvey,2016)Reluctantancy towards opening new storesStakeholders Expectation:Conflicts between the expectations of M&S stakeholders, short-termprofitability versus expansion, family control versus skilled managers,financial independence versus share/loan financing, public shareownership needs transparency and accountability, cost efficiency canmean job losses, mass markets can compromise quality, mass publicservice provision versus specialist services.Summary:M&S is the largest retailer in the world and, despite its IT advantages,management of its empire could leave it vulnerable in certain areas dueto the enormous span of control. Some of its more oriented rivals may nothave the flexibility to do so. The organisation is multinational, but has apresence in relatively few nations worldwide.For human resource management and development, a concentrated planis in place. People are vital to the business of M&S and it spends time andresources in training and retaining individuals.Value chain analysis:
1)Inbound Logistics:The transport, storage and distribution of goodsentering a company requires inbound logistics. The company is ahead of itscompetition in terms of the social and environmental effects of its industrywith the introduction of the company's Plan A in 2007 and the winning of theGBS supply chain award for introducing a genuinely disruptive supply chain.Its 180-supply chain-related priorities for its purchasing teams, supported byfinancial rewards, include ethical trading, energy efficiency and sustainableprocurement and are helping M&S to make it most sustainable in the world.Further Company has decreased its dependency on full-service vendors andprovide more control over its supply chain management.2)Operations:M&S Foods has developed in-house bakery and café, inorder change to meet the changing needs of its customer. However, in2014-15 company faced a lot of difficulties in adjusting with onlineoperations and distributions, which resulted increase in number of ordercancellations.3)Outbound Logistics: In terms of order and distribution services, M&Shas several channel operations and gives customers convenience, includingonline grocery shopping and self-payment kiosks.4)Marketing and sales: M&S's marketing strategy is to emphasize thequality and design of its items. In 2014-2015, the company developed acohesive storytelling-based brand identity for its food markets through JustM&S' to modernize, simplify and create a separate brand across its differentofferings while retaining 'East. 1884, thereby honoring its history. With thelaunch of marksandspencer.com, M&S is investing in its digital growth. Theyare using social media platforms like Instagram, you tube, facebook, twiiter
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