Comprehensive Report on Marks and Spencer's Business Challenges

This report provides an analysis of the business challenges faced by Marks and Spencer (M&S), a UK-based multinational retail company. The report begins with an introduction to the company, followed by a summary of the problems faced by M&S, including the impact of changing market situations, competition, and the rise of e-commerce. The report then provides a critical analysis of these problems, focusing on areas like competitors, target customers, and external market factors. The study identifies and ranks the top three issues: limited customer base, store closures, and lack of adaptation to market changes. The conclusion emphasizes the importance of addressing these challenges and adapting to the changing business environment. References include academic journals and online resources.

RESEARCH PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
Summarise problems faced by Marks and Spencer................................................................3
Critical analysis of problems developed from specific areas that are importance to the client. .4
Top three issues faced by Marks and Spencer and along with the rating...............................5
CONCLUSION................................................................................................................................6
REFERENECES..............................................................................................................................7

INTRODUCTION
Business organisations are faces range of issues at marketplace that might develop due to
any situation that is customers, competitors, market or any external factor. It is highly important
for businesses to determine their own problems which is being faced by them at marketplace
(Fernie and Sparks, 2018). In present report Marks & Spencer is taken as the client company, a
UK based multinational retail company which was incorporated in the year 1884 and
headquartered in Westminster, London. The respected company mainly deals in clothing, food
products and home products. This report will provide brief discussion on currently functioning of
Marks and Spencer and range of issues which is being faced by this company at marketplace.
Furthermore, ranking will be provided to the specified issues in order to identify the top three
issues among them all.
Summarise problems faced by Marks and Spencer
Marks and Spencer is considered as the main client company for which detailed
secondary investigation has been conducted in order to find out the main issues or problems that
is being faced by this company. On the basis of information expressed in Nisar and Prabhakar,
(2017), it has been analysed that Marks and Spencer is mainly facing range of challenges due to
the tough environment. It has been analysed that the business environment is changing day by
day which creates requirement for the company to acquire the changes at the same time so that
they can survive longer at marketplace. If this is not acquired on the timely manner that it
ultimately creates issue for the company as they won't be able survive longer at marketplace.
With reference to the Marks and Spencer, it can be said that the company is not able to accept the
changes which are taking place at market. This is ultimately affecting profitability of the
company. In addition to this, stores of the company are closing down constantly within the UK
and there are range of stores which have been triggered as the one which will going to be closed
down in the near future (The 2018 Retail Crisis Catches Up With Marks and Spencer, 2018). The
main reason behind this are the changing market situation which are affecting current
functioning of the company as well as their future business situations too. Along with this, it has
been later analysed that technological advancement has enhanced e commerce sites which is
ultimately placing negative impact over sales performance of the Marks and Spencer physical
outlets. This directly results in the quick closing down of their physical stores world

(Brunekreeft, Buchmann and Meyer, 2016). Along with this, the company is also facing issues
related to the customers as they are not able to serve the customers in appropriate manner that
means according to the expectation This simply means that they are not able to sustain their loyal
customers which results in the quick decline of the sales performance of the company.
Critical analysis of problems developed from specific areas that are importance to the client
By developing knowledge on the overall problems faced by the Marks and Spencer, it
can be said that the respected company faces range various issues due to changing business
environment and market situations. This ultimately affects current functioning activities of the
company as well as it prospected project which are going to be introduced by them in the near
future (Buckley, Doh and Benischke, 2017). It has been further analysed that on one end these
problems are affecting actual functioning of the company but at the same these changes are
enhancing chances of introducing different innovation within the industry that will bring
remarkable benefits for the company and support them out in sustaining longer within the
industry in adequate manner. These problems can be further bifurcated into few areas which are
explained as below in detailed manner:
Competitors: Increasing competition within the retail industry is becoming major
problem for the client company that is Marks and Spencer. It can be said that with the increase in
competition there are probable chances that the company might face issues associated with
decline in sales performance. This is so because, customer of this company might move to the
competitors who are offering similar kind of product with premium quality at low rates. Also, it
has further seen that the products of Marks and Spencer are not upgraded with the changing trend
this provides an advantage to its competitors which is further becomes another problem for them
and make them struggle at marketplace.
Target customers: The respected company is mainly targeting individuals belonging to
the age group of 35-55 years who are seeking for the designed cloths with the simple and elegant
texture Also product range of this company is also limited which makes it difficult for the
company to attract more number of customers towards them with new offerings. Along with this,
it can be further said that limited targeted customers with special preferences makes limited
options for the company as there are very few people within the same targeted range who are
seeking for this kind services (Sullivan and Gouldson, 2016). This simply places influence over
its sales performance as well as profitability.

Market and other influential external factors: Business environment is changing day
by day which is placing direct influence over the performance of the company. It has been
analysed that changing taste and preferences of customers towards latest fashionable cloths has
become another major issue for Marks and Spencer which is placing major influence over their
functioning (Dora, Kumar and Gellynck, 2016). Due to these changes, lots of competitor
companies are introducing trendy cloths for attracting maximum number of customers towards
them simply affects business performance of Marks and Spencer as their targeted customers are
moving towards it.
Top three issues faced by Marks and Spencer and along with the rating
On the basis of overall information provided in the above section, it has been determined
that Marks and Spencer is facing range of issues at marketplace. Among them all Limited
targeted customer base, non effective command over e-commerce platform and lack of adaption
to changes at marketplace are determined as the major influential issues that has been faced by
this company while operating its business at international marketplace (Hoppmann, Naegele and
Girod, 2019). According their core affects these issues have been rated below effectively along
with their justification so that better decision can be made over the same:
Limited targeted customer base: It is considered as the first and foremost issue that is
being faced by Marks and Spencer while handling its business at international marketplace. The
main reason behind ranking it at first level, it can be said that due to limited number of targeted
customer it is highly difficult for the company to maintain its sales performance as they are not
having much options in terms of customers. Thus, no matter the how good the quality products
they are offering to its customers they will not be able to enhance their sales performance.
Closing down of stores: This determined as the another issue that is being faced by
Marks and Spencer at marketplace. It is mainly ranked at second number. The major reason for
ranking it at second number is the higher influence of closing down of stores on the name of the
company (Chen and Wang, 2016). It can be said that because of closing down of the stores and
proposed plan of store closing is placing negative image of company among its customer and
marketplace. This simply creates situation of moving towards the another company who offering
Similar kind of products and working well at marketplace.
Lack of adaption to changes at marketplace: This issue is ranked at third number
which is being faced by Marks and Spencer. It has been acknowledged that there are lots of

changes taking place at marketplace which are not being adopted by this company. This simply
presents the image of outdated company at marketplace. Along with this, it has also been
analysed that this company is not bringing much modification in product offering which is not
able to satisfy needs and requirements of all range of customers (Dziegielewski and Holliman,
2019) Thus, it places huge impact over they performance of the company and also affects its
profitability. Non effective command over e-commerce platform:
CONCLUSION
From the above mentioned report, it has been concluded that businesses goes through
various issues as well as problems while operating their business at marketplace. Furthermore, it
can be said that main problem that is being faced by businesses are related to their customers
which also places impact over the performance of the company. In addition to this, it is essential
for businesses to provide ranking to each of the determined problem which helps them out in
finding out proposed solution for the same according to the priority list.

REFERENECES
Books and Journals
Brunekreeft, G., Buchmann, M. and Meyer, R., 2016. The rise of third parties and the fall of
incumbents driven by large-scale integration of renewable energies: the case of
Germany. The Energy Journal, 37(Bollino-Madlener Special Issue).
Chen, X. and Wang, X., 2016. Effects of carbon emission reduction policies on transportation
mode selections with stochastic demand. Transportation Research Part E: Logistics and
Transportation Review, 90, pp.196-205.
Dora, M., Kumar, M. and Gellynck, X., 2016. Determinants and barriers to lean implementation
in food-processing SMEs–a multiple case analysis. Production Planning &
Control, 27(1), pp.1-23.
Dziegielewski, S. and Holliman, D.C., 2019. The changing face of health care social work:
Opportunities and challenges for professional practice. Springer Publishing Company.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hoppmann, J., Naegele, F. and Girod, B., 2019. Boards as a source of inertia: Examining the
internal challenges and dynamics of boards of directors in times of environmental
discontinuities. Academy of Management Journal, 62(2), pp.437-468.
Nisar, T.M. and Prabhakar, G., 2017. What factors determine e-satisfaction and consumer
spending in e-commerce retailing?. Journal of Retailing and Consumer Services, 39,
pp.135-144.
Sullivan, R. and Gouldson, A., 2016. Comparing the climate change actions, targets and
performance of UK and US retailers. Corporate Social Responsibility and
Environmental Management, 23(3), pp.129-139.
Online
The 2018 Retail Crisis Catches Up With Marks and Spencer. 2018. [Online]. Available
Through:<https://blog.bham.ac.uk/cityredi/the-2018-retail-crisis-catches-up-with-marks-and-
spencer/>.