Product Development at Marks and Spencer
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Added on 2021-04-05
Product Development at Marks and Spencer
Added on 2021-04-05
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Marks and Spencers (SBU- FOOD) Introduction:
On 28th September 1884, Marks & Spencer was formed as a partnership between Michael Marks and Thomas Spencer. They started selling basic groceries like cookies, needle, thread, buttons. They provided opportunity to consumers to do window shopping that is they can take a glance of the products without paying any amount. After the success, they opened 35 more stores in earlier 1900. The company's 914 UK outlets-222 managed and 349 Simply Grocery stores franchises as well as 302 full-line apparel and home stores and an e-commerce site of over seven million registered users service 33 million consumers with a turnover of £ 5.2 billion and £ 4.0 billion in two divisions (food and general merchandise). M&S is a market leader in womenswear, menswear, and lingerie in the UK market. The foreign business 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” as strategic business unit. Firstly we shall discuss Internal analysis followed by a small summary, similarily, external analysis followed by business strategy used by M&S. In the end of Part A Internal 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 product creators and food technologists. (Darvey,2016) •Reluctantancy towards opening new stores Stakeholders Expectation: Conflicts between the expectations of M&S stakeholders, short-term profitability versus expansion, family control versus skilled managers, financial independence versus share/loan financing, public share ownership needs transparency and accountability, cost efficiency can mean job losses, mass markets can compromise quality, mass public service 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 due to the enormous span of control. Some of its more oriented rivals may not have the flexibility to do so. The organisation is multinational, but has a presence in relatively few nations worldwide. For human resource management and development, a concentrated plan is in place. People are vital to the business of M&S and it spends time and resources in training and retaining individuals. Value chain analysis:
1)Inbound Logistics:The transport, storage and distribution of goods entering a company requires inbound logistics. The company is ahead of its competition in terms of the social and environmental effects of its industry with the introduction of the company's Plan A in 2007 and the winning of the GBS supply chain award for introducing a genuinely disruptive supply chain. Its 180-supply chain-related priorities for its purchasing teams, supported by financial rewards, include ethical trading, energy efficiency and sustainable procurement and are helping M&S to make it most sustainable in the world. Further Company has decreased its dependency on full-service vendors and provide more control over its supply chain management.2)Operations: M&S Foods has developed in-house bakery and café, in order change to meet the changing needs of its customer. However, in 2014-15 company faced a lot of difficulties in adjusting with online operations and distributions, which resulted increase in number of order cancellations.3)Outbound Logistics: In terms of order and distribution services, M&S has several channel operations and gives customers convenience, including online grocery shopping and self-payment kiosks.4)Marketing and sales: M&S's marketing strategy is to emphasize the quality and design of its items. In 2014-2015, the company developed a cohesive storytelling-based brand identity for its food markets through Just M&S' to modernize, simplify and create a separate brand across its different offerings while retaining 'East. 1884, thereby honoring its history. With the launch of marksandspencer.com, M&S is investing in its digital growth. They are using social media platforms like Instagram, you tube, facebook, twiiter
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