Marks & Spencer and its Environment

Marks & Spencer and its Environment
INTRODUCTION
Marks & Spencer is a global retail firm based in the United
Kingdom. The firm was founded in 1884 by Michael Marks and
Thomas Spencer. Since then, the M&S brand has opened about 1463
locations throughout the world. The company's headquarters are
based in London. Home products, food and consumable things, and
clothes are among Marks and Spencer's most popular things (Rashid
and Byun, 2018). The purpose of this poster is to show how external
and internal influences influence M&S. It also intends to highlight
the various ways in which M&S may have an influence on the
environment.
Internal Factors
It is critical for a corporation to assess its internal factors, such as
its strengths, weaknesses, threats, as well as opportunities, in order
to develop effective plans. This is accomplished through the use of
a SWOT analysis.
Strength
• Customers may choose from a wide range of items at Marks &
Spencer. For example, out of 136 years, the firm has offered a
range of fruits and vegetables for more than 40 years.
• The firm has developed strong partnerships with local farmers
in order to get fresh produce and provide it to clients (Witek-
Hajduk and Grudecka, 2018).
• Over the years, the company has formed a number of significant
collaborations throughout the world. The organization benefits
greatly from a wealth of experience.
Weaknesses
• The general population believes that M&S does not sell clothing
for children and teens. Many individuals believe that the firm
primarily caters to the elderly. Although this notion is incorrect,
it has cost the organization a great deal of money.
• By the end of 2019, sales at several M&S outlets were on the
decline. It was due to a faulty supply chain system and a lack of
product availability.
Oopportunities
• Because individuals are growing busier and want to avoid public
and congested venues, ecommerce retail is the way of the future
for purchasing. As a result, the corporation should concentrate
on expanding its online store. In fact, M&S just announced that
it will be bringing its clothes and home goods lines online.
• The technique of segmenting the client market into separate
groups based on comparable groupings is known as market
segmentation. When we look at M&S's policy, we can see that it
is based on the same premise of establishing megastores
worldwide. If the organization adheres to the customer
segmentation philosophy of selling items depending on
consumer demands.
Threats
• The retail market in the United Kingdom and throughout the
world is becoming increasingly competitive. Amazon, Tesco,
and others are some of Marks & Spencer's biggest competitors
(Sym, 2017).
• Because the rivals are so powerful, if the firm does not adjust its
approach, it would eventually fade away from the market. If the
brand's graph is heading downhill, the scale company's position
in the worldwide market is declining. M&S, for example, has
been closing outlets in the France, UK, etc.
External Factors
• Rashid, M.S. and Byun, S.E., 2018. Are consumers willing to go
the extra mile for fair trade products made in a developing country?
A comparison with made in USA products at different
prices. Journal of Retailing and Consumer Services, 41, pp.201-
210.
• Witek-Hajduk, M.K. and Grudecka, A., 2018. Positioning
strategies of retailers’ brands in the emerging market–a cluster
analysis. International Journal of Emerging Markets.
• Sym, A., 2017. 17 Water ethics and water stewardship. Global
Water Ethics: Towards a global ethics charter, p.281.
• Griffin, P.A. and Lont, D.H., 2018. Game changer? The impact of
the VW emission-cheating scandal on the interrelation between
large automakers’ equity and credit markets. Journal of
Contemporary Accounting & Economics, 14(2), pp.179-196.
• Mercer, H., 2017. The making of the modern retail market:
economic theory, business interests and economic policy in the
passage of the 1964 Resale Prices Act. Business History, 59(5),
pp.778-801.
• Charter, M. ed., 2018. Designing for the circular economy.
Routledge
It is concluded from this discussion that it is very important for the company
for its success to perform the above discussed framework i.e. SWOT and
PESTLE analysis. Both of these framework helps in analysing external and
internal factors of the company in such a way that it helps in planning of the
strategies so that the company effectively carry out its activities.
PESTLE analysis is a methodology that is critical for organizations
like Marks & Spencer to analyse market trends and continually
improve their company. This framework aids in the identification of
external elements that may have a favourable or negative impact on
the firm. As a result, an organization's performance is critical.
• Political: European integration and free trade agreements have
opened up new markets for British and foreign companies
looking to invest in Europe. As a result, unfriendly methods are
being used by M&A to maintain its market share. In general, any
commerce is permitted in the United Kingdom as long as it does
not conflict with public policy, population control, or current
legislation. However, for Marks and Spencer, the most difficult
political issues with which they must face are labour laws and
regulations, as well as the industrial romantic connection.
• Economic: After a long period of struggle, the UK's present
economic climate has found its equilibrium, and customers are
once again hopeful, and the retail business is once again
growing (Griffin and Lont, 2018). THE UK, as a true
commercial hub in Europe, has a diverse range of consumers,
including not only residents but also tourists, resulting in a wide
range of consumer preferences and retail business.
• Social: Consumer preferences and lifestyle changes present both
possibilities and risks to the sector. Consumers in the United
Kingdom have a strong preference for brands. Quality of the
goods, although these criteria can be quickly overcome by a
rivaling brand's cost-cutting approach. Furthermore, customers'
preference for current trends over classics is evident in the UK
consumer sector (Mercer, 2017). This is particularly true in the
case of Marks & Spencer, which has fought hard to achieve a
greater market share of its customers. This demonstrates that the
British customer places a high value on quality.
• Technological: Improvements in merchandising approaches,
such as using the Internet as an online shopping store, are
becoming more widespread, expanding the ecommerce
possibility. Additionally, automated procedures and the
utilization of IT systems have enabled total flexibility in the
corporate enterprise's operations. The largest retail corporations
in the United Kingdom are increasingly relying on online
marketing operations as a competitive advantage.
• Environmental: Most organizations throughout the world are
increasingly opting for alternate and environmentally friendly
forms of resources found in creation, which has made it more
challenging for them to maintain their market share (Charter,
2018). The cautious use of textiles and recyclables is
increasingly a major priority for Marks & Spencer.
• Legal: National law for relating to health and safety, are both
very important especially for the rights of consumers and
alternative natural resources for the clothing production, is
rigorously monitoring company activities in order to assess their
compliance with legal constraints.