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Retail Theory and Practice Report

   

Added on  2020-06-04

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Retail Theory and Practice

Table of ContentsINTRODUCTION...........................................................................................................................1Overview of Marks and Spencer......................................................................................................1PEST Analysis of Marks and Spencer.............................................................................................2Changes within the Micro Environment..........................................................................................4Strategies and tactics in adapting changes with influence of macro environment..........................5RECOMMENDATIONS.................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONIn old days, retail market was used to be known as small stores which were deliveringgoods and services to consumers as per their needs and wants. But in modern era, these marketshave changed their faces into small shopping malls, supermarkets and etc. Process of retailingcan be understand in many ways like, selling quality goods to consumers as per their needinessand this can be done through various channels of distribution (The Wheel of retailing concept,2017). Main motive of these stores is to earn profit by providing commodities as per customersrequirements. In clothing sector, fashion changes in a rapid manner thus, it is mandatory forthese retail stores to adapt those alterations right on time by which they can grab attention ofmost of people into their goods and services. Hitting targets in both effective and efficientmanner can lead organizations to catch a leading position in competitive world (Brigham andEhrhardt, 2013).Overview of Marks and SpencerIn British, Marks and Spencer is one of the most famous retailer which was found in1884 and its headquarter is in Westminster, London. They mainly focuses on selling clothingproducts to their consumers. Michael Marks and Thomas Spencer were the founder of thesefantastic retailing stores. Apart from this, they have thousands of sales outlets in all over world.But, they mostly target Citizens of United Kingdom as they have almost 979 stores in differentstates. They are also dealing in food products and have almost 700 stores in all over UK. In theyear of 1998, M& S gone over its limit and earned profit more than a billion and became the firstBritish retailer to grab this position. This, act attracted most of the small and big investors ofUnited Kingdom which ultimately leaded M& S to become one of the powerful organisation.Management of M& S, main motive is to grab the attention of consumers who likes towear trendy clothes. Rapid change of fashion is continuously helping them to improvise theirboth productivity and profitability. Away from this, they have also trained their employees bywhich M& S can sustain at the market for a long period of time. In today’s world, it is essentialfor M& S to maintain its goodwill and brand image at marketplace. Because new local retailstores with innovative are coming in market on daily basis which are giving hard competition.Company has already given training to their staff members by which long term relation with1

customers can be maintained. It is also, expanding its business at international level in variouscountries like China, Germany, Austria, Dutch and etc (Marks and Spencer Group PLC, 2017).PEST Analysis of Marks and SpencerThis type of analysis shows that how external elements put impact on business oforganisations and these are as follows:Political : Under this, Government of countries plays an important role, Changes in rateof taxes, new policies and etc can affect both productivity and profitability of an organisation,Here, M& S have to find out these alterations that has been made by government authorities andapply them so that it won’t put any kind of bad impact much on quality of goods and services.Mostly, these agencies modifies rules and regulations in betterment of economical growth ofUnited Kingdom. It is essential for authorities of Marks and Spencer to understand policies ofevery single country wherever they have its retail stores so that better decisions can be made inexpanding its business (Dalkir and Beaulieu, 2017).Economical : This factor may put both positive and negative impact on long termdecision making process of Marks and Spencer. As consumers comes from society, it is essentialfor management of M& S to form products by looking at their pockets. If a good cost much thana customer have it in his/her pocket, he/she might not purchase it. Apart from this, foreignexchange rates can also affect profitability of the organisation because it can directly increase ordecrease rate of a product (Dant, Grünhagen and Windsperger, 2011). Social : This type of external factor may affect both productivity and profitability of anorganisation. Every county has its own set of culture. Thus, management of M& S have to makeor manufacture goods and services as per different cultural areas. Perceptions of consumers helpsin modifying products. Apart from this, authorities can also find different ways by which theycan target most of consumers so that profit can get raised. These actions can easily give manysort of advantages to Marks and Spencer at market. Like, gaining benefits in competitive worldLorenzo-Romero and et. al., (2011). Technological : This element can be stated as one of the main part which needs to betaken care from time to time by M& S. In modern era, digitalisation is taking place of many oldtools and techniques which was being followed by industries. It is also must to adapt newinnovations in technology. Factor can easily help M& S in many ways like hitting their targets ina short period of time than expected. Development is become vital for organisations like M& S2

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