Marks and Spencer: The Role of IT in Retail Business Development

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Added on 2024/06/28

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This report examines Marks and Spencer's business growth, focusing on the role of Information Technology (IT) in its development. It explores the reasons for past failures, including increased market competition, outdated technologies, and challenges in international expansion. The report also addresses the issues Marks and Spencer faced, such as the impact of online shopping, the need to optimize store locations, and adapting to changing fashion trends. Furthermore, it discusses the various types of networks used in the retail business (LAN, MAN, WAN) and the contributions of ICT in enhancing customer convenience, operational excellence, and IT service lifecycle management. The effect of the Internet on retail business is also analyzed, highlighting shifts in shopping habits and the need for offline stores to adopt online strategies. Desklib provides access to this and other solved assignments for students.

Introduction to Information Technology

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Abstract
Marks and Spencer is one of the biggest British MNC (Multinational Company) in the retail
section. This organization is well known for its products like food, home, and clothing which are
a sale by its stores, its franchises and many more. In 2017 the organization aimed at becoming
more customers & focused partners. In achieving this target its various franchises have achieved
huge profits of 81.9 million in terms of pounds. This target has totally changed the image of the
Marks and Spencer organization at the previous time when it was struggling a lot.

Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Literature Review............................................................................................................................5
LO1.................................................................................................................................................. 6
Reasons for Failure......................................................................................................................6
LO2.................................................................................................................................................. 8
Wired World.............................................................................................................................8
A large Number of Shops......................................................................................................... 8
Bad Stores.................................................................................................................................8
Fashion faux............................................................................................................................. 9
LO3.................................................................................................................................................. 9
There are various types of network in the retail business............................................................9
LAN..........................................................................................................................................9
MAN.......................................................................................................................................10
WAN...................................................................................................................................... 10
LO4................................................................................................................................................ 10
Contribution of ICT in retail industries......................................................................................10
LO5................................................................................................................................................ 12
LO6................................................................................................................................................ 13
Conclusion..................................................................................................................................... 17
References......................................................................................................................................18

Introduction
In this brief, Marks and Spencer are chosen as a retail organization in the United Kingdom. In
this report, we are discussing the growth of this organization. We are dealing with the various
reasons which affect the growth of this organization, what were the issues and challenges that
this organization has faced while running their business, what are the different types of networks,
how information communication & technology have contributed to the retail industries and what
are the effects of the Internet on this organization. We have also discussed how Information
Technology has played a role in the management and the phases of the system development life
cycle were.

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Literature Review
Marks & Spencer is among one of the oldest supermarkets in the United Kingdom. This
organization was developed in 1884 by Michael Marks & Thomas. This organization was the
first British retailer who made a profit of over £1 billion. It delivers services in more than thirty
countries from the site of the UK and it has eight International websites
(www.marksandspencer.com, 2014) and above 600 stores in the UK. It has been observed from
various sources that Marks and Spencer are expanding its services to include foodstuffs, clothes
& plastic materials.

LO1
Reasons for Failure
Marks and Spencer organization market was declined sharply due to many variations in their
sales, fewer profits, and various internal & external reasons.
During the 1990s there was heavy competition in these markets due to which Marks and Spencer
have faced much competition in the 1990s. There were various technical changes in the retail
industries. Those companies who were newly established uses computerized systems & they
have also used various latest methods for operating which improves the efficiency of the
organization whereas marks and Spencer were using their old systems and technologies which
lead them to fall backward as compared to the other organizations.
The other reason for lacking behind could be that this organization didn't have the name of the
trusted brand when it was exploring its services in the international market. They have not made
efforts in building the brand of the organization. Initially, they were using US chains after some
time they stop using these chains and adopted Brooks Brother's chains so they didn't change the
name of the US chain so ultimately this organization failed was failed in interacting with the
customers by the image of its brand.
In the initial stages, Marks and Spencer didn't give importance to the client needs in the global
market and their business was also transmitted from the United States to Canada without
performing any modifications. Basically, it is a general perception that if the basic needs of the
customers are not satisfied and it is not cost effective then an organization will suffer from
losses.
Marks and Spencer didn't have the long lasting plans for the development of the organization and
there were always issues associated with the supply of chain and the organization didn't remove
these issues. These problems were faced by Canada and it didn't have a proper idea of purchase.
There are some elements that run very smoothly in the market of the United Kingdom but failed
to work globally.
As this organization was not having long-lasting plans for expanding its services internationally
and it signed various agreements in the many countries and used different types of agreements &

franchises. This organization was also lacking behind in the internal communication and it didn’t
have the proper direction to the various activities. (Rodrigo, 2012)
After many years Marks and Spencer have made a lot of effort in establishing their goal and they
have built their brand successfully by using proper strategies and focusing on the domestic
market. After facing this struggle currently, Marks and Spencer have 327 stores in 41 territories.

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LO2
Issues challenging Marks and Spencer
M&S is one of the great traders in the United Kingdom for providing the services to the
customers in terms of food, clothes and various products which are related to the household.
They always tried to provide services at best rates but it is not practically possible always
because their trends are losing and the other organizations are taking advantage of it. It is the
major issue which this organization is facing currently. To overcome from this challenge Marks
and Spencer has started providing their services at lower rates for that they started importing
their raw materials and started using cash payments that are used for the payments so that they
can get the raw material at lower prices. (Wood & Butler, 2018)
Marks and Spencer have faced a very hard time but after their efforts, everything is on the right
track. There was growth in all the services offered by this organization.
There are various social and ethical issues which were challenging Marks and Spencer such as:
Wired World
As Internet facility has made very easy for shopping across the world and comparing the prices.
It has been accounted that almost twenty-five percent of the clothing and the footwear are
buoyed online in the United Kingdom. It is making a huge investment in the delivery warehouse
which involves struggling for coming up with the demand.
A large Number of Shops
Marks and Spencer are also closing one-third of its three hundred high street stores which is
selling a variety of range of clothing, many homewares & food. There are various radical plans
which are cutting the floor space of high streets which are devoting to the clothes & homewares
by twenty-five percent.

Bad Stores
After 115 years Marks and Spencer have a collect a number of stores. There were fewer
investments in many of the stores by which some stores were outdated and there are some stores
that are very large and there is difficulty in navigating it. Various strategies were adapted for
bringing the modifications in the coffee shops but there is more need for creating spaces.
Fashion faux
Around one-third of the nation is buying undies at Marks and Spencer but as the time is passing
women are appealing for the latest fashion clothes. Middle age and elderly women are also
expecting to dress fashionably when they have dressed in their past time, but Marks and Spencer
are facing difficulties to meet their demands. They started dropping quality in order to bring
lower prices.

LO3
There are various types of network in the retail business:
 LAN
 MAN
 WAN
LAN
LAN stands for Local Area Network it is used for connecting the various devices such that
computers and workstations can share their data, information, tools and various programs.
Various switches are used for connecting the devices or group of computers using TCP/IP
protocol. Various routers are used at the boundaries of the Local Area Networks so that they can
connect them into a larger Wide Area Networks. In these networks, data is transmitted very
quickly because there are fewer computers that are connected in this network. This network is
used for covering the small areas and those who owned privately.
It is basically a confined network. These types of networks are developed in homes, offices, etc.
All the computers in these networks are connected with the small servers and are also connected
through the internet. These networks are used in such cases that involve exchanging small or big
files and documents, playing network games, etc. These networks are used for connecting the
devices for short-range distances. These networks are managed and controlled by a single
individual or a particular organization. These networks use various technologies such as Ethernet
& Token Ring.
MAN
MAN stands for Metropolitan Area Networks. These networks cover more distances as
compared to the Local Area Networks as well as small areas of WAN. It is used for connecting
two or more computers which are apart from each other but are residing in the same & different
cities. As it covers a very large area so it acts as ISP (Internet Service Provider). These networks
are designed for those computers who require high-speed connections. The speed of these
networks is in terms of megabytes per second. Establishing and designing these types of
networks is not easy. There is very little tolerance for fault and high congestion in the network.
These networks are very expensive and an individual organization can't own these networks.

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WAN
WAN stands for Wide Area Networks and they are the network of various computers that are
extended over large areas. These networks are also very expensive and contain high-speed
connections.
They are of 2 types
 Switched WAN
 Point to Point WAN
As similar to the MAN these networks also contain less tolerance of fault but high congestion in
the network. A medium for communication exists for these networks such as Satellite Link.
These networks contain noise as well as errors due to long-range transmission.
As these networks consist of various terminals and servers so the rate of data is slow.

LO4
Contribution of ICT in retail industries
ICT (Information Communication & Technology) contributes to various different perspectives:
by improving the convenience of the customer, achievements in operation excellence and
Information Technology service life cycle management.
By improving the convenience of the customer
ICT provides an efficient shopping experience and there are various enhancements done such as
cars & refrigerators, smart watches, and various other devices were connected to various
networks. Payment options are also enhancing such as the use of electronic money and
biometrics have also enhanced. Some eras have also developed which not only shows customer
purchases but also contains logs related to Internet access and life logs. NEC is providing various
om-ni channel solutions that enable an efficient shopping experience.
Achievements in operation excellence
For achieving operational excellence in the retail industries like Marks and Spencer various
applications of ICT are expanding in improving efficiencies of operations which means saving
labors, improving the accurate operations. In order to meet the demands of the customers,
various technologies have been assisted in predicting the demands of the customers.
IT service LCM for supporting operations of the store
Various equipment and facilities which are supporting the improvements in the in-store
convenience of customers & operational excellence have become very common.
Sometimes it becomes very difficult for the organization to maintain stability in 24 hours so
various sensing technologies 7 cloud technologies are used for keeping the track the equipment
and to identify any failures.
Effect of the Internet on retail business
The use of the Internet has changed the mechanism of sales of retail industries. Customers can
compare the prices of the products at different websites and can view the feedback of other
people when buying an item. The use of mobile devices and various social networking websites
are helping the customers for taking their decisions. It has raised the difficulty level very by
which offline retail stores have to also adopt the internet facility for surviving.