Corporate Strategy: M&S Store Closures and Social Responsibility

This project delves into the corporate strategy and governance surrounding store closures and relocations within the UK clothing industry, using Marks & Spencer as a case study. It examines the importance of Corporate Social Responsibility (CSR) in mitigating the negative social impacts of such closures. The research employs a qualitative approach, gathering primary data through questionnaires to assess the impact on communities and explore effective strategies for minimizing disruptions. The project reviews relevant literature on CSR, including stakeholder theory, shareholder theory, and the triple bottom line concept. It also investigates environmental and social impacts associated with retail operations. The study aims to propose actionable strategies for M&S to enhance its CSR practices, particularly in managing the social consequences of store closures and relocations, ultimately improving its overall performance and reputation. The project's methodology includes a quantitative research approach, utilizing a sample of 30 individuals to gather data and analyze the impact of store closures and relocations on the community. The project also examines the impact of the store closure and relocation on the community and different ways by which social impacts of store closure and re- locations are controlled.

Corporate Strategy and
Governance Project
“Strategies to reduce the social impact of stores closure and re-locations to
improve Corporate Social Responsibilities of the UK Clothing Industry. A
case of study of Marks & Spencer.”

Executive Summary
This research project has focused on proper planning of the Corporate social
responsibilities that required to be taken into consideration so that firm may be able to enhance
its overall performance. This research will also lay emphasis on adequate planning that can
impact the operations of the organisation to a greater extent. The main focus of this project CSR
operations and social impact of store closure and relocation measures to a greater extent in the
context of Marks and Spencer, retail giant in the UK. Moreover, improving the quality of
business operations by implementing appropriate and well-mannered strategies that have a good
growth and development of business operation's to carry out its corporate social responsibilities
with much effectiveness. A qualitative research assessment is used in this study and
questionnaire is used to gather primary information about topic. It is analysed that organisation is
deeply impacted by the store closure and relocation with the management of the Corporate social
responsibilities measures like following corporate social responsibility.

INTRODUCTION
A good governance or management of the corporate operations assists an enterprise to
carry out its operations and other activities. Especially, in the retail sector, the Corporate social
responsibilities need to be maintained for improving business activities and operations. It helps
in enhancing the market performance of business significantly. it supports management of the
strategies developed within the firm.
Brief history of Marks and Spencer and retail industry
Marks and Spencer is a UK based retail service provider that is well known around the
world for its high quality and luxury based apparels and food items. Recently it has collaborated
with other brands like Kelloggs to sell their products. The Annual turnover of the organisation is
above $10 billion. In the recent time, the firm has faced a great term of competition in the retail
sector due to entry on many new brands, that had affected its overall performance in market.
The retail industries and sector is one of the most happening and fastest growing
industrial sector. It is a major employer in many countries and thus, requires a great range of
revenues and strategies to carry out its operations (Sako and Zylberberg, 2015). In the recent
time, due to increase in the number of operator firms in the sector, the extent of competition has
increased manifolds
In the recent time, the selected firm, Marks and Spencer has seen a gradual decrease in
profit in the clothing sector. This has turned out to be a major concern and thus requires a good
and effective strategic management of corporate activities and operations in much suitable and
effective way (Cook and Glass, 2015). M& S was established in the year 1884, initially in the
year 1894 it has made partnership with Thomas spencer which was a wholesale firm. In the
year1998it has became the leading clothing brand which has made profit 1 billion. But later on
competition has created big trouble for M&S, as Marks and Spencer’s have switched many of its
suppliers in order to boost its sales so that it can remain in competition. In the year 1997 and
1998 its market share gets down and company’s share price got affected badly.
The profits of Marks and Spencer has been gradually decreased. In relation to this, study
will be conducted for carrying out the strategies so as to minimise store closures and relocation
which has impact on overall operations of company. Seeking this, research questions, purpose
and objectives of main research will be conducted so that firm may be able to regain profits and
losses could be curtailed in a better manner.
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Research Purpose
The major purpose of the present research is to assess strategic actions that could be put
in place to reduce the impact of the closure or relocation on the community. As the organisation
is facing an effective decrease in sales in clothing. Looking at this, the retail firm to has to make
the suitable plans and schemes to gear up these issue. Hence, the organisation is required to
manage the business operations and activities in effective way.
Aim:
“To suggest proper strategies for decreasing the impact of closing a store and its
relocation to enhance Corporate social responsibilities measures like CSR. Case study on M&S.”
Objective:
 To analyse the influence of store closing and relocation in retail sector.
 To assess effective measures to reduce the store closure and relocation activities for a
retail firm like Marks and Spencer.
Research Questions
 Analyse the impact of society on store closure and re-locations on Marks and Spencer?
 What are different ways by which social impacts of store closure and re-locations are
controlled?
Methodology used
In present study, quantitative method is used this has helped in analysing impact the
overall growth and carrying forward of the data assessment and evaluation process supports in
raising quality of corporate government measures and the social impact of store closure and
resettlement to other place in order to have a good placing of the CSR functions of selected retail
business entity (Filatotchev and Nakajima, 2014). As for the present report quantitative research
operations are been taken in consideration, that will involve the effective assessment of the
statical data presented or obtained. It will involve the assessment of both primary and secondary
data on the basis of the questionnaire or survey conducted and getting the proper statistics to
carry forward the data assessment and research process that is been formulated by the scholar.
Target Audience:
The target audience or the respondents and participants that are chosen for the data
assessment activity that assists the entity to achieve their roles and objectives with a higher
efficiency (Sako and Zylberberg, 2015). For the present research activity, people in the
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community will also be communicated to act as respondents so that they may provide their
viewpoints quite effectually and it will help the scholar to get the most precise and ground reality
conditions about the measures that are been selected within the organisation.
Sample frame:
In order to get the suitable and effective data assessment measures, the scholar has
selected the proper and most effective manner. The proper selection of a sample size will help
the scholar or data analyser to get the effective and most effective and significant manner. The
current research activity or assessment process involves the sample size of 30 individuals or
participants, involving in research process as respondents. This sample frame assists the
organisation to improve the effectiveness and efficiency of operations and thus, significantly
leads to development of a proper rise in understanding. Our sampling strategy was purposive
in nature as the sample size taken for the evaluation purposes.
Response rate:
Response rate is the number of individuals answers the survey out of the total sample size
that is been chosen (Amran, Lee and Devi, 2014). As the primary data collection measure
involving the development of a proper interview or questionnaire is been chosen, the
management of the response rate is very crucial and effective for the data research process. The
Response rate of entire survey was about 70% in favour of Yes.
Means of Data collection and Data analysis:
For the research or data assessment process, the primary data collection method is been
chosen to look at the sample size and requirement of precise statical data. Other than this, the
thematic measure of data analysis is been taken that will help the organisation to focus and
concentrate upon the research operations with a higher effectiveness and effective manner (De
Roeck and et.al., 2014).
LITERATURE REVIEW
Looking at the rise in the competition in retail sector and the importance of the Corporate
social responsibilities to monitor the impact of store closure and relocation for a retail firm like
Marks and Spencer. This process assists in increasing of the efficiency of the retail operations
and activities that will assist in improving core performance of organisation with a higher
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efficiency. The proper assessment of the business activities and corporate operations will assist
firm to enhance the effectiveness of retail facilities and operations.
Concepts and Theories on CSR
Stakeholder Theory
As per the views of Hörisch, Freeman and Schaltegger (2014), stakeholder is the mirror
image of CSR. It lists down and describes those individuals and groups which will be affected by
actions taken by company. The stakeholder theory implies that those who are touched by
company in any manner hold rights and obligations for participating and directing overall
operations being member of corporation. The stakeholders in the company have righteous way to
raise their individual's voices for contributing towards corporate decisions. They have moral
claim for participating in decision-making process and right to manage corporate affairs. The
five cardinal stakeholders are shareholders, workers, customers, suppliers and community.
Shareholder Theory
Mohammed (2013) says that social responsibility of business is to maximise its profits.
Businesses have no obligation for supporting social causes that do not fall under the purview of
law. The corporations' task is to utilise resources and engage in activities for increasing profits
and to stay in the competition. Management of the company which are entrusted as employees of
organisation should not act as 'protectors of public interest' or of society at large and this should
remain responsibility of state alone in any of the circumstances.
Triple Bottom Line Concept
Slaper and Hall (2011) says that triple bottom line is a form of CSR implying that
corporate leaders takes into account bottom-line results in economic terms such as costs and
revenue and also with regards to organisation effects in social realm and to the environment. The
three areas described in this concept are economic sustainability, social sustainability and
environmental sustainability. Economic sustainability takes long-term financial viability over
volatile, short-term profits regardless how high are they. Large corporations have responsibility
for producing business plans clarifying stable and prolonged actions in it.
Social sustainability takes value of balance in lives of people and how the way they live.
As the imbalances is at constant growth, this is evident that rich getting more richer and poor
getting more poorer, it shows chances of sudden collapse of society as a whole. The wealth and
savings are to fairly distributed in order to maintain solid balance in society. It focuses on human
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aspect as well as no workers should be treated like machines to reach an hour production. The
environmental sustainability affirms with the fact that natural resources are limited and future
generations will not be able to enjoy these resources. The recycling and cleaning up
contamination is significant for making better place to live in. By combining these three notions
of sustainability, it guides business towards action to the concept of corporation as a participating
citizen in community.
Environmental and Social Impacts governing CSR
Goss and Roberts (2011) argues that major environmental impacts in relation to
production includes waste-water emissions from finishing, washing process, increase in
pollution, depletion of resources from consumption of water and raw materials. CSR
responsibility is to be taken into account as larger environmental impact has major societal
impact on society which should not exhaust natural resources and make life of people miserable.
However, Garay and Font (2012) says that organisations should make provision to not to deplete
natural resources and initiate recycling of things for making alternative use of same sources for
effective utilization of resources. It helps to get proper usage of resources and societal impact can
be minimised in a better manner. With firms operating on global scale, style of conducting
business has transformed and so as to cope up with the same, social responsibility plays crucial
role. Thus, business style has to changed for gaining benefits.
Definition of Corporate social responsibilities
In accordance with the findings of Azmi, Misral and Maksum, 2018, the Corporate social
responsibilities can be defined as, “Social influencing measures that will impact the overall
execution of trade and other functional activities with effeciency.” The Corporate social
responsibilities not only involve the internal functionality of a business enterprise but also the
external and additional operation that are performed by a retail entity. These measures are
required to be looked after significantly in order to get the suitable and most effective output
from the business activities and their management. A good placing of strategies and following
them with preciseness will help selected retail enterprise to draft down suitable strategies and
action plans. It is a strategy that will help in proper management of Corporate social
responsibility operations that are been taken within the organisation.
Other than this, Aguilera And et.al., 2015, stated that proper management of Corporate
social responsibilities measures like local supportive and growth activities that are been followed
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by an enterprise and will help the organisation to enhance their quality of products and services
that are been developed or manufactured by a retail enterprise. Apart from this, the measures like
CSR and store relocation will help the firm to develop a good connectivity with their customer
base and help the organisation to gather suitable information and idea about their needs and
requirements so that the retail enterprise can develop high quality and suitable products and
services for them, accordingly.
Social impact of store closing and relocation activities followed by the firm
As per the analysis and views of Jiang and Kim, 2015, this can be said that store closing
and relocation measures followed by the retail firm to meet the needs of their customers that will
support proper management of Corporate social responsibilities measures within the retail firm.
The major advantage of this process is to get effective operations and improving overall
performance of organisation. As the Corporate Social Responsibility or CSR measure that are
followed and focused upon by the organisation is deeply based on strategies or action plans that
is looked after by selected retail enterprise. This closure and resettlement process that is been
taken by the organisation will assist in improving quality of business activities in much effective
way. However, in contradiction to it, as per the findings of Kakabadse and Grayson, 2017, the
store closure and relocating strategy may also have certain adverse impact on the operations of
the retail entity. The closing down may lead the company to lose its established customers base
and hence, can impact the overall decreasing in the revenue generation to a greater extent. This
may also cause the organisation to face financial and governance loss. This measures are
required to be maintained and pertained by the selected retail enterprise to improve the quality of
operations and activities related to store closure and relocation. As the organisation like Marks
and Spencer is facing serious restrictions and down fall in its sales, the measure or decision of
closing or shutting down of the stores is required to be taken in the consideration. This will help
the firm to evolve the quality of business activities and will help the organisation to develop
proper and suitable strategies in an effective manner that will support a good improvement of
business operations in much effective way. The closure of store and relocation process is
required to be effectively planned in order to have a good management of retail activities in
much suitable manner. The employees or staff working within the organisation will be informed
in prior about it so that the firm can make effective preparations regarding the moving out of
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store. Besides this, the customers will also be notified in advance so that the organisation doesn't
lose them.
On the other hand, the assessment and findings of Ferrero‐Ferrero, Fernández‐Izquierdo
and Muñoz‐Torres, 2015, suggest that as per the planning of business activities and operations,
the company will be impacted to a small or big scale, based on the extent of closure and
relocation activity. In this case, the management of selected retail enterprise is required to be
well planned and maintained to have a good placing of business activities. This will improve the
significance and growth rate of the organisation to greater extent. As the financial performance
will be hampered, the stakeholders and investors are meant to be convinced in order to maintain
their trust level within the enterprise. Such activities will assist the organisation to look after the
proper management of the business activities and thus will support a good increase in financial
stability and backing up of the selected retail enterprise. Also, these measures will impact the
organisation to produce a good quality and effective products and services. Such planning will
prove out to be beneficial for the business activities and action plans in much suitable manner.
Such measures are also important to maintain the long term relationship with their customers and
stakeholders.
Significance of Corporate social responsibilities
These measures are required to be managed and effectively maintained within the firm as
it will lead the firm to execute its retail based activities and operation. In accordance with
findings of Barkemeyer, Preuss and Lee, 2015, following of the corporate social responsibilities
is one of the most effective measures followed by a business enterprise. The selected retail
operations will look after the proper management of the Corporate social responsibilities
measures that will help the firm to enhance the quality of not only their products and services,
but will also increase its customer satisfaction level. This will help the firm to regain the
sustainability that will help the firm to enhance their market helping in handing of the business
operations and support a good handling of the customer requirements while carrying out the
corporate social responsibilities measures. Chen and et.al., 2015, states that the corporate social
responsibilities have many benefits for the selected retail enterprise. Marks and Spencer, being a
well known brand around the world, will see through the proper and innovative placing of the
organisation within the organisation. The major limitation to the CSR operations by the
organisation is that it may not suit the cultural or functional framework of the country or society,
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turning it out to be exploiting rather than beneficial for both firm and the social structure. This
will also help in maintaining a good relation with their stake holders, customers and other
peoples associated with the firm. As per the findings of Too and Weaver, (2014), this can be
stated that the stake holders operations and CSR measures are quite interrelated to each other and
influences the growth of a business entity. Thus, in this case, management of CSR operations is
very important. On the critical note, this can be said that the firm is required to assessment and
evaluate needs and requirements of its different stakeholders and must come up with proper and
common solution, which will contribute in execution of proper CSR measures. In this way, the
stake holders and company's Corporate Social Responsibility operation's supports in effective
placing of various strategies and action plans that will assist in handling the growth and
development of organisation.
Impact of corporate social responsibilities in the clothing industry within UK
Corporate social responsibility will play a very deep and crucial part in the maintaining of
the retail activities to improve the quality of business operations and activities which will support
a good management of the business operations and increase the effectiveness of merchandising.
In accordance with the findings of Hernaus, Bosilj Vuksic and Indihar Štemberger, 2016, this
can be said that the proper management of the business activities and operations will support a
good rise in the firm's efficiency to carry out their operations in the clothing industries or apparel
sector within UK. As with the increase in the purchasing power of the people or customers
within UK, they will tend to look after the luxury and latest fashion oriented cloths from the
selected retail enterprise. Thus, in this case, M&S has to develop and offer high quality and latest
clothing based products and services in much suitable manner. However, it has failed miserably
in recent time in keeping these operational and functional attribute. The firm has seen a
tremendous and devastating decrease in the quality f its food and clothing products. This has
affected overall revenue of organisation in a negative way.
The findings and assessment of Orozco, Tarhini and Tarhini, 2015, suggests that such
measures are quite beneficial and supportive for the organisation as the clothing has been turning
out to be the major revenue generator within retail sector. So, looking at this, M&S should utilize
it as the major opportunity to expand and refurbish its declining business. Manufacturing and
launching the clothing products as per the latest fashion trends and the needs and requirements of
different target customer sections will prove out to be productive for the organisation (Chandler
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and Werther, 2014). Managing such operations will also help the fir to get a good return of
investment and increase customers interest towards the selected brand. These measure will prove
out to be very beneficial and effective in reducing the chances of store closure or shutting down
and relocation activity. Also, it will re- establish the selected retail business entity in the market,
increasing its revenue and overall buyer's containment level. Such measures prove to be
enhancing measure to have a good market share for the organisation.
However, Too and Weaver, 2014, states that, operating within the clothing sector with
high level of competition is the major challenge that is required to be taken in consideration
within the selected retail enterprise. As the competitors of M&S are offering the similar quality
products and services on the lower price rate, it has altered the buyer's perception and the
significant customer base of the organisation in much suitable manner. Such conditions have lead
out to be a major reason behind shutting down of stores and shifting it to somewhere else.
Looking at these condition in the market, M&S has to see through the proper management of the
business activities and thus will also assist organisation to enhance their performance. Besides
this, the adoption of the latest fashion trends and developing the products and services
accordingly has proved out to be very beneficial for the organisation.
Benefits of Corporate social responsibilities
As per the operations Su and Sauerwald, 2018, organisations supporting the proper
management of retail activities that will help the organisation to have a good rise in the placing
of the business operations and thus it will support a good stage-management of the Corporate
social responsibilities and CSR operations that are been taken in the consideration that will
support a good rise in the containment level of their buyers. Besides this, the management of
Marks and Spencer will look after the providing of proper training and skill or knowledge
development operations within the organisation. These measure will guide the organisation to
take he suitable measures which will support a good increase in the efficiency firm to carry out
retail operations in much effective manner.
Other than this Dodgson, 2018, states that, Corporate social responsibilities measure
including the implementation of CSR operations will create a good platform to penetrate and
expand the retail business of the organisation within other countries, increasing the profitability
of the firm. The major advantage that CSR activity will have on the operations and carrying out
of the other Corporate social responsibilities activities is that it will develop a good management
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