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Retail Theory and Practice Assignment - Marks & Spencer

Added on - 23 Nov 2020

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Retail Theory andPractice
Table of ContentsINTRODUCTION...........................................................................................................................3Overview about Marks and Spencer..........................................................................................3A) Identify key relevant changes in UK fashion clothing...........................................................3B) Evaluate strategies used by retailer to response against major changes occurring in fashionindustry........................................................................................................................................6CONCLUSION................................................................................................................................8REFRENCES...................................................................................................................................9
INTRODUCTIONRetailer are the one who resale the final goods to its potential customer they act as amediator between manufacturer and its ultimate user. They simply emphasize on purchasing andreselling the goods and services to its customers (Mason, Meyer and Ezell,1994). Within,fashion retail business clothing and accessories are offered by business to its potential market.This transfer of apparels can take place either from online presence or brick and mortar store. Forthe better understanding of this report Marks and Spencer company has been taken which is aBritish multinational retailer. They have been operating from years in its home market andbasically deals in clothing, home product as well as luxury food products. This report provide abrief discussion on overview of Marks and Spencer which is a large fashion retail business,PESTEL analysis of respective company and discussion will be made on strategies and tacticsused by retailer to deal with major changes occur in fashion clothing retail market.Overview about Marks and SpencerMarks and Spenser is large fashion retailer business of UK which operate its businessglobally. Its headquarter is in UK and has more than 900 stores in UK for which respectivecompany has given employment to more than 80,000 employees. Currently, respective companyis holding more than 17% of market share at UK's market in its clothing segment. Moreover, toenhance the reach of customer Marks and Spenser deals by its physical store as well as they haveonline presence that is through its website or presence in big e-commerce sites like Amazon. Toenhance its reach and make loyal customer base within their home country selected companyadopted multi channel retailer to increase their connectivity with customers through mobiledevices, web, physical stores and so on. They receive approx 50% of vast order via online ordersthrough electronic devices such as mobile, tablet and so on. Furthermore, to scale up the businessrespective company identified the changing preferences of its customers and adopted changingtrend accordingly (Zada, 2017). Hence, engagement in CSR activity by building strongrelationship with charitable council and NGO enhances the productivity as well as profitabilityof company.A) Identify key relevant changes in UK fashion clothingAs UK is a developed country due to which residence of respective country are fashionconscious, they need latest trendy apparel of premium quality. It is a global hub of various
fashion start up. To adopt any changes in existing market company should not only analyse itsstrength or core competency and weaknesses. They should also analyse the external market thatinclude political, environment, social, technology, economical as well as legal conditions thataffect the operations as well profitability of company. This method is used to monitor and scanthe macro factor as well as micro factor that directly hamper the growth of company(Dimitrakopoulou, 2015). Therefore, Marks and Spenser can make the use of this analyses thatprovides a them the framework to maintain its business position, growth, profitability, decisionmaking power and widen its reach within confined area that is UK.Political factor:Political factor are in context to government rules and regulation liketrade policy, tariff, labour laws, trade restriction and political stability within a definite countrythat affect the existence as well as working of companies within that specific geographical area.The government of British has set some standard for the companies of UK like health and safetyBritish standard. This standard help the company to plan against hazard, risk assessment as wellas control. Additionally, if these standard are not being followed by companies then they will befined by the government. Apart from strict rules and regulation, Marks and Spenser did not abideby the standard set by British government due to which they have to bear huge fine that impactedon the profitability of company. On contrary, it was the first company that achieved fair tradepolicy. Thus, political factor that affected the growth of respective company were politicalstability as well as VAT that is value added tax. In terms of political stability selected companydon't find much difficulty as the government of United Kingdom is stable but in term of indirecttax imposed by government on companies affected their profitability by decreasing their totalincome.Economical factor:Economic factor refer to the performance of economy that directlyimpact the success of company. It include factors like inflation rate, foreign exchange rate,interest rate, economic growth of company and so on. that affect the performance of company.For instance, with rise in inflation rate within economy company changes their price strategy fortheir products as well as services to gain revenue (Rajkumar and Arulraj, 2018). At the time ofrecession in UK, Marks and Spenser had to shut down its outlet and closes the job for variousstaff because of its luxury apparel people switched their brand which lead to decrease in footfallof outlet. Thus, to overcome such situation respective company introduces various discount offerto rebuild its market. Currently, the economic situation of United Kingdom is favourable which
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