Organizational Structure and Technological Impact on Expansion Strategy of Marks & Spencer

This presentation discusses the organizational structure and technological impact on the expansion strategy of Marks & Spencer. It covers the benefits of divisional and flat structures, functions of the company, suitability of functions in expansion, technological impact, product strategy, trade barriers, organizational capabilities, food services, negative impact, and conclusion.

BUSINESS ENVIRONMENT

TABLE OF
CONTENTS
• Introduction
• Spencer organization marks &structures
• Benefits of divisional structure in expansion
• Benefits of flat structures FOR EXPANSION
• Functions of marks & spencer
• Suitability of functions in expansion
• Technological impact on the expansion strategy
• Product strategy
• Trade barriers
• Organizational capabilities
• Food services
• Negative impact
• Conclusion
• References

INTRODUCTI
ON
•ORGANISATION STRUCTURE REFERS TO THE ACTIVITIES OF THE COMPANY THAT ARE OUTLINED IN
ORDER TO ACHIEVE THE GOALS AND MISSION OF THE ENTERPRISES.
•THE CURRENT REPORT WILL BE BASED ON MARKS AND SPENCERS (M&S), WHICH FALLS UNDER THE
CATEGORY OF LEADING INTERNATIONAL FASHION BRAND IN UK (M&S., 2022).
•THIS REPORT DISCUSSES THE ORGANISATION STRUCTURE OF THE COMPANY THAT HAS INFLUENCE ON
THE FUNCTIONING OF THE ORGANISATION. THE TECHNOLOGICAL DEVELOPMENT HAS A GREAT IMPACT
ON THE DAY TO DAY OPERATIONS OF THE COMPANY.

SPENCER ORGANIZATION
MARKS &STRUCTURES
 Organizational structure refers to an outline of activities which
instructs an organization in order to achieve goals of the company.
Structure also describes the way information flows into an
organization.
 Divisional structure - marks and spencer follows divisional structure
as they have various divisions such as clothing, home products &
food products.
 Target in each division - in clothing division they target both adult
males and females with formal or occasional clothing.
 Flat management structure - they also have flat management
structure which motivate their employees to provide their opinion as
it consist of restricted level.

BENEFITS OF DIVISIONAL
STRUCTURE IN EXPANSION
 Cater to large market - as the marks & spencer caters
to large market they will fulfil the needs of consumer
at increasing rate.
 Improvement in brand awareness & image - as the
company expand they can improve the brand awareness
as they are communicating with the large population.
This will improve brand image as well if the company
is solving the issue of the consumer.

BENEFITS OF FLAT STRUCTURES FOR
EXPANSION
 Positive attitude and innovation - The flat structure will be
beneficial while expanding as it will ensure that the
consumers are getting various innovative product which will
keep them engage.
 New Talent - This structure will also help the company to
gain new talent in the organization who will bring various
new ideas for the organization which is beneficial for the
company.

FUNCTIONS OF MARKS
& SPENCER
 There are various functions of Marks & Spencer which are shows there work
such as:
 Purchase — This function of Marks & Spencer does the purchase of the raw
materials, machines, stationary, machinery and various things which are
necessary for the business to run smoothly.
 Manufacturing — Marks & Spencer manufacture various products according to
the demand of the market.
 Marketing — In marketing functions Marks & Spencer has to consider which
platform is suitable for the marketing of their products, which can help to
maintain effectiveness and efficiency in the business.

CONTINUED…
 Finance — This function of the Marks & Spencer helps them
to record their transaction properly.
 Human Resource — Human resource department helps the
Marks & Spencer to employ talented candidate.
 Sales — Sales department of Marks & Spencer helps the
companies by selling their products to the end consumer.

SUITABILITY OF
FUNCTIONS IN EXPANSION
 Opportunities and reduction in cost - The purchase and manufacture
department might gain sort of advantage in the prices and can lower the
cost of the products.
 Increase in profit and talented employees - Sales department function
will help the company to increase their profit margin by increasing the
sales of the company.
 Change in taxes & Price setup - Finance department will also help when
the taxes and duties are involved as they can evaluate those from before.
 New Target Place - The marketing department will ensure various places
for the company to open its store and get more amount of customers.

TECHNOLOGICAL IMPACT ON THE
EXPANSION STRATEGY
 This technological development will ensure the growth in the delivery process
of the company. There is an extensive review of the development in the
technology of the (M&S). The changes in the technology are as follows:
 It has created new technology operating model.
 It has collaborated with the tata consultancy services.
 It has made improvement in the delivery procedure of the products of the
company

CONTINUED…
 Increasing digitalization has made the development of the organization easier. As M&S is
a fashion brand, so it needs promotion and advertisement for its product across the world.
 More increasing its sale the m&s has adopted the strategy of analysing the taste and
preferences of the customers.
 The standardization of the products in the international market across the world for
meeting the specific need and requirement of the consumers (van dijk, and et.Al., 2018).
 The digitalization has also made it convenient for the consumers to order their products
through online mode (schatzberg, 2018).

PRODUCT STRATEGY
 Digitalisation has helped in the production of the new and unique products for the customer and
innovative design for the customers that are buying its products from the different countries (holdich,
2020).
 The digitalization has supported the innovation and development across the globe.
 The company can gain information of the taste and preferences of the customers through crowdsourcing is
a common method.

CONTINUED…
 Technological development has made it easy to
increase the brand image of the company.
 As by using various social media platforms and
websites has enhanced the reputation of the
company.
 By advertising products through online mode
has increased the turnover rate of the company.

TRADE BARRIERS
 The development in the technology has lead to decrease in
the trade barriers for the companies (energy, 2018). It has
helped the company in running their export activities in
easy way..
 By using the plethora of knowledge available on the
internet and on other digital technologies. This has helped
in reducing the difficulties associated with the distribution
channel.
 For developing and maintaining the reputation in the
foreign market, the online tools requires times and efforts
of the company. For the giving proper time and efforts the
marks and spencers have fully updated technology, so it
can handle its social media more appropriately.

ORGANIZATIONAL CAPABILITIES
•Organisational capabilities plays an important role in exploiting the
international opportunities (gobble, 2018).
• These capabilities are necessary for generating and responding to the
information that has been collected by interacting with the foreign
customers.
•Technology has made it easy for the employees of the marks and spencers
to work remotely even if they are not present at workplace of the company.

CONTINUED…
 Technological up-gradation has made the selection of the targeting market easier for the expansion of its business.
 As due to the internet there is various information of the countries characteristics, economic condition, and needs of the
consumer that will help in targeting and segmenting the markets.
 Digitalization has reduced the gaps of geographical and psychological connections of the country (quan, and et.Al.,
2018).

CONTINUED…..
 It has also helped the company in choosing the pricing strategies for the
products. And providing the products in the affordable price and after analysing
the retail prices of competitors brands.
 It has also helped in comparing the prices that are offering by the online and
offline mode.
 This the best way of monitoring the prices that it offers to the individual and
that its competitors offer to attract the customers (rachinger, and et.Al., 2018).
 By analysing its position related to the pricing strategies, it can alter its price
according the preference and tastes of the individual.

FOOD SERVICES
 M&S is dealing with the food services as well. Technology
has made delivery of the food faster and contactless, by using
drones and other techniques.
 This technology or idea has made M&S different from
others. For modernizing the food supply chain M&S is using
artificial intelligence learning for reducing the food waste
generated by it.
 It is using AI tools in its outlets for increasing its distribution
chain across the world.

CONT….
• For the promotion and expansion of the brand in the
global market it has collaborated with the many celebrities, it
has entered in partnership with various brands.
• So, it can add value to its brand. Along with this the company
has also started providing behind the scene videos to its
customers. As the customers now feel more connected with the
brand.

CONT…
• For reaching the target customers the company has used many
digital strategies that are posting on the social media such as
Instagram and Facebook.
• It has positive impact on the mind set of the customers.
• The m&s has now started providing image recognition
technology that has helped the customers to take the photos of
the item that are available in the stores. That has helped in the
expansion of the business through the digitalisation.

CONT…
• The M&S has now started providing image
recognition technology that has helped the
customers to take the photos of the item that are
available in the stores. That has helped in the
expansion of the business through the
digitalisation.

NEGATIVE IMPACT
 Technological development has certain negative impact also on the functioning of the or for expanding its
business in the international market.
 Technological advancement has also made available the financial information and the strategies used by the
M&S online, that has it easy for the competitors to use its strategy and take the advantages of its weaknesses.
 The social media have also leaded in building negative image of the company. As the firm uses the social
media for promoting its brand but sometimes negative comments on the post and promotional pages
influences the customer in a negative way. It will demotivate the customers from dealing with the M&S.

CONCLUSION
 This is concluded from this presentation that the company's organizational structure as well as its functions are suitable
for the company. This is because they will bring various new customers to the company and improve the brand
awareness as well as brand image of the company. The organizational structure of the company is divisional in the
market and flat management structure. The presentation also evaluated various functions of the business such as finance,
marketing, sales and various others.

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