Knowledge Management and Business Analysis Report: M&S Company

This report provides a comprehensive analysis of Marks and Spencer (M&S), a major player in the retail sector. It begins with an introduction to knowledge management and the company's background, including its objectives and business overview, highlighting its product offerings and global presence. The main body delves into a detailed organizational analysis, including a SWOT analysis to identify strengths (diversified product portfolio, low cost, brand value, effective distribution network, and stable financial position) and weaknesses (bad publicity, outdated technology, improper financial planning, and reliance on the UK market), along with opportunities (product expansion, business expansion, and technological advancement) and threats (competition and inflation). A PESTEL analysis explores the political, economic, social, technological, and environmental factors influencing M&S. The report then examines the company's knowledge management information system and potential challenges. Finally, it concludes by summarizing the key findings and their implications for M&S's future performance.

Knowledge Management and
Information Systems

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Overviews..........................................................................................................................................3
Organisation analysis.........................................................................................................................4
Knowledge management information system..................................................................................10
4. Challenges the organization may face..........................................................................................11
CONCLUSION...................................................................................................................................13

INTRODUCTION
Knowledge management is defined as a process to create, share, utilise and manage
the information associated with an organisation. This report is based on the case study of
Marks and Spencer Company. Company was established in the year 1884. Micheal Marks
and Thomas Spencer were the founders of the organisation. Company operate its business
operations in retail sector. Headquarter of the Marks and Spencer Company is located in
London, United Kingdom. Company caters high quality food products, clothing and electrical
equipments. Henceforth, report emphasis on objectives of Marks and Spencer Company.
Business overview will also be summarised in this report. Structure of the Marks and Spencer
Company will be overlooked in this report. This report also guides about the business model
channelizes in the company. Report will also guides about the different strengths, weakness,
opportunities and threats associated with the Marks and Spencer Company. Furthermore,
report will keep eye over the knowledge management information system in respect to the
company. Report will also reflect the impacts of the knowledge management system over the
performance of the company in future. Challenges associated with the management
implementation will also brief in this report.
MAIN BODY
Overviews
Corporate Objectives
Marks and Spencer Company operate its business operations with the support of
following objectives.
 To achieve the best customer satisfaction from the retail products.
 To dominate the retail sector.
 To achieve the leading profitability ratio.
Business Overview
Marks and Spencer Company initiated its business operations in the year 1884.
Micheal Marks and Thomas Spencer were the founders of the company. Company operate its
business operations in retail sector by trading food products, clothing line and electrical
products. Company offers all top brands associated with the retail sector brands like Per Una,
Autograph, Limited, Rosie, Blue Harbour and other top brands. Company is a part of London

Stock Exchange and is associated with the FTSE 250 Index (Akhtar, 2017). In the year 1998
Marks and Spencer Company was the first British retail brand that has made the pre tax profit
worth over £1 billion. Marks and Spencer Company was formed due to partnership between
Michal Marks who migrated to England from the year 1880 and the Thomas Spencer who
was a cashier that time. In the initial year when Micheal Marks migrated to England he
worked in a Company call Barran. Than latter on Marks mate to Thomas Spencer and formed
the company call Marks and Spencer. Company operate the business operations globally at
more than 1400 locations. As per the recent statements of accounts company has generated
the revenue worth £ 10377 million Pound. Company employee more than 80000 people
across the globe.
Corporate Structure
Marks and Spencer Company follow the flat structure to operate business operations.
This corporate structure leads company to contains limited amount of management between
administration and front line employees. With the support of flat structure company allocate
more decision making power to its human resources (Boudreaux, 2020). Due to flat structure
more authorities has granted to employees involved in different designated positions in the
organisation. Communication also becomes more convenient in this structure. Flat corporate
structure consists up with the pyramid shape. This structure support company in taking more
effective decision in the limited time. More authorities create effective employee well being
in the company.
Outline of business model
Business model of the company is to cater the best quality retail products at the most
affordable price range. Company aims to deliver the best customer satisfaction out of the
business operations.
Organisation analysis
Analysis of the Marks and Spencer can be summarised with the support of following
models.
SWOT Analysis

SWOT Analysis indicates about different strengths, weakness, opportunities and
threats associated with the Marks and Spencer Company. This is the internal analysis of the
company.
Strengths of Marks and Spencer Company
Marks and Spencer Company is associated with different strengths that can be
summarised in the following manners.
Diversified product portfolio: Marks and Spencer Company carry the well diversified
product portfolio. Diversified product portfolio enables company to provide more options to
choose from. Company caters all top brands belongs to retail sector. Diversified product
portfolio of the Marks and Spencer Company has supported company in achieving high level
of customer satisfaction from its business operations (Bruni and Santucci, 2016). Diversified
product portfolio supports customers to choose from large number of product options based
on the individual needs. This also supported company in order to cater products to all
economic background peoples all across the globe. Diversified products portfolio enables
company to satisfy the needs of different social factors that has also supported company in
achieving the effective brand image in the target market.
Low cost: Low cost products of company are also among the key strengths associated with
the business of Marks and Spencer Company. Company follow the policy of keeping up the
low profit margins in order to serve cost friendly products of company. This strategy has
worked effectively in favour of the company. Company also follow the discount strategies
from time to time to improve its sales potential. Due to low cost strategy of the Marks and
Spencer Company it created the brand image of friendly brand in the target market.
Brand value: Marks and Spencer company is operating its business operations from the year
1884. Company is catering retail products since many years which has created an effective
brand image in target market. Brand value play huge role in attracting potential customers.
Company is catering its operations in more than 1400 locations across the globe and effective
brand value of company played huge role for company in achieving such huge success in the
market (Jung and Lee, 2017).
Effective distribution network: Marks and Spencer Company has established the well
diversified distribution network across the globe with the support of strategic partnerships.
Distribution and supply chain network play huge role in availability of all fashionable and

trendy products in all stores of Marks and Spencer across the globe. It also improves the
customer base as company effective cope up with the needs and demands of the potential
customers in market.
Stable financial position: Financial position of the Marks and Spencer Company is also well
stable. This is also the key strength company consists up with. Stable financial position of the
organisation has supported company in expanding the business operations time to time
(Karna, Supriana and Maulidevi, 2016). Strengthen financial position of the organisation also
Supports Company is implementing all strategies related to business development and
product development.
All the above points have projected about different strengths associated with the
Marks and Spencer Company.
Weaknesses of Marks and Spencer Company
Marks and Spencer Company is associated with the following weaknesses.
Bad publicity as non trendy products: Marks and Spencer Company has been engaged in
the bad publicity as the non trendy products. This is among the key weakness company is
engaged with. This has spoiled company’s image across the globe. Non trendy products
indicates as offering unfashionable products to customers. Due to bad publicity company
could not effectively attract new customers out of its branding campaign.
Outdated technology: Marks and Spencer Company is known for using outdated technology
software’s. This is the primary weaknesses company is associated with. Outdates technology
has directly impacted over the company’s innovation and customer relationship management
(Khokhar and Dutta, 2019). Company also take time to solve customer grievances due to
outdated technological solutions. This also caused to company losing its market share all
across the globe.
Not proper financial planning: Company’s financial planning is also not proper. Due to
lack of financial planning company could not channelize its financial resources. Proper
financial planning play huge role in expanding the growth potential for the organisation. It
reduces the market competitiveness of the company also. Financial sources are limited in
nature so it is crucial to channelize financial resources of the organisation properly.

Much reliance on UK market: Marks and Spencer Company immensely depends upon the
UK market in term of rising profitability (Mohammadrezaei, Nayebzadeh and Roknabadi,
2016). This is the key weakness company is engaged with. Company has an effective market
share in UK but in other part of the world company could not perform well.
All the above aspects indicate about the weakness of the Marks and Spencer
Company.
Opportunity of Marks and Spencer Company
Opportunities available for the company can be summarised in following points.
Product expansion opportunity: Marks and Spencer Company carry the huge opportunity
to expand the products portfolio. Company can launch more brads to improve the existing
market share. More brand swill also drives more choices in respect to potential customers of
company.
Business expansion opportunity: Company can also expand its business by opening up new
stores in new geographical locations. This will also improve the brad image of the company.
It will also improve the existing customer base of the Marks and Spencer Company.
Technological advancement: Company can improve the sales potential by investing in new
technology. Up gradation of technology will support company in improving the growth
potential in the retail sector across the globe. Company can also expand its sales turnover
over online sales.
All the above points indicate the major opportunities available for the company.
Threats of Marks and Spencer Company
Threat associated with the Marks and Spencer Company can be indicated in the
following manner.
Competition: Competition is the retail sector has been the major threat associated with the
Marks and Spencer Company (Nilssen, Bick and Abratt, 2019). Over the year retail sector
has been among the major growing market sector in the world. Due to high growth of sector
competition has become very aggressive in the sector.

Inflation: Inflation in the economy is also the huge threat associated with the company.
Inflation restricts the purchasing capacity of the potential customers of company.
The above points indicate about the major opportunities available for the company.
PESTEL Analysis
PESTEL Analysis is consisted as the external analysis of the business.
Political Factor: Political factor indicates about the political stability in all such countries
that carry the stores of Marks and Spencer Company. As the retail sector is among the major
growing market sector which has also enabled sector to contribute effectively in the
economic growth (Pesce and et.al., 2018). Due to high growth rate governments all across the
globe has supported organisation involved in retail trades. This has also increased the growth
potential of the Marks and Spencer Company. Government also promoted e-commerce trade
which also created opportunity for the Marks and Spencer Company to sale its products
online.
Economical Factor: Economical factor indicates about the economic stability in all such
nations owns the stores of Marks and Spencer Company. Economic stability improves the
business growth of the company. Inflation in growing economies like India has become the
big challenge for Marks and Spencer as it reduces the purchasing capacity of the potential
customers of such countries.
Social Factor: Social factors indicates about different aspects of business like fashion,
trends, need, demands and other elements of the people in society. Social factors influenced
the products demands in the target market. Due to demands social factor directly influence
company’s profitability. Company channelizes different promotional strategies based on the
social elements to improve the product demands in target market.
Technological Factor: Technological factor are among the key business environment factor.
Government all across the globe are aiming to improve the technology of the country.
Government also supporting e-commerce trade as a result of technological advancement
(Sarathe and et.al., 2018). After the involvement of government all across the globe over
technological development and innovation faith of the people in respect to e-commerce trade
has also increased. This creates huge opportunity to Marks and Spencer to give emphasis
over online sales to improve the growth potential of the organisation.

Environmental Factor: Environmental factor are also the key business environment factor.
Environment factor drives organisation to launch eco friendly products in market. Company
also engaged with different corporate social responsibilities as a part of the environmental
factor (Sholihah and et.al., 2016). Corporate social responsibility activities of company
enable company in establishing an effective brand image in the target market. Company can
achieve higher growth potential with the support of environmental factors.
Legal Factor: Legal factor indicates about the different laws and legislations applicable on
the companies. Company needs to engage with all legislative requirements in order to run
business operations. Laws like equality act and other play huge role in improving the
organisation environment of the company.
All the above elements indicate different aspects of the business environment.
Porter Five Forces Model
Porter Five forces model is also the key analytical model enables company to take
competitive advantages in the market.
Competitive rivalry (High): Competition in the industry is the huge threat for the Marks and
Spencer Company. Due to high growth potential of retail Sector Company face aggressive
competitn at all across the globe. This power is high. It restricts the growth potential of the
organisation.
Supplier power (Medium): Marks and Spencer is the huge brand as company operating in
more than 1400 locations across the globe. Due to high brand value company do not need to
concern about the supplier base (Sewell and et.al., 2016). Company can improve its supplier
base easily by making strategic partnerships. This will improve the sales of the company as
company will be capable to offer all latest trendy products to potential customers.
Buyer power (High): Buyers power is high. All strategies frame by company are on the
basis of the target customers of company. This indicates company to launch products based
on the needs and demands of the potential customers of the Marks and Spencer.
Threat of substitute (High): Retail sector is among the constant fluctuating market sector.
As every day new products and fashion are launching. All such aspects influence the sales of
the company.

Threat of new entrants (Medium): Threat of new entrants for the Marks and Spencer is
low. As the company is among the top brands belongs to retail sector all across the globe. So
the power of this force is relatively low for the company.
All the above aspects reflect different powers engaged with the company.
Knowledge management information system
Marks and Spencer Company channelizes different knowledge management system
that can be summarised in following manners.
Expert system: Marks and Spencer Company is engaged with the expert system. This is an
effective knowledge management system that provides key information on all issues and
aspect. This is a expert system comprises key information related to all topics (Tserng and
et.al., 2016). With the support of this company make effective strategies in respect to
different business situations. As this covers all critical situations organisation can face this
system is more like an asset for the organisation. This system analysis all possible
circumstances in order to give necessary feedbacks over the subject matter. Due to expert
nature company could involve precise knowledge in respect to market and products while
forming strategies for business and product development. Especially in case of product
development this play key role.
Groupware: Groupware is also an effective tool Marks and Spencer Company. This allows
employees of the company located in all the branches to share information (Ulubeyli, 2017).
This is an effective communication system which strengthens the connectivity of all business
locations. This system support team meeting and also the knowledge sharing.
SharePoint: Share point is an effective system that allows employees and management of
Marks and Spencer to store necessary information for future use. This tool support company
in storing information.
Decision support system: Decision support system Company in taking potential decision for
the business. This system supports in taking all important decisions for the business.
All the above factors indicate about the knowledge management system functions in
Marks and Spencer Company.
Impact on business performance of knowledge management system

The employees of the organization have to be knowledgeable of the changes and the
knowledge management information system has to be strong in the organization so that the
organization can get in this system effectively. It is very important to get this system in the
organization so that there is an increase in the productivity and the operations can take place
faster. The chances of errors will also reduce in the organization which is a great factor for
the company. Marks & Spencer is a reputed company in the market which has to be well
maintained by the company which is why there are changes like these in the organization so
that there is a better functioning (Au and Fung, 2019). This is going to put a lot of pressure on
the human resource, leaders and the management of M&S because they have to train the
employees to use this system in the organization effectively which is going to help the
organization to have a better functioning and the organization will be able to have higher
profit margin. The company is working very hard to get a competitive advantage in the
market because the competition in the market is increasing and it is very important for the
company to get this factor higher because of the experience they hold in the market as well.
This is going to be a time consuming and high amount of investment also will be required for
this system to come in the organization which Marks & Spencer can afford and that is a very
effective functioning for the organization. This is going to help the organization to get a
higher competitive advantage and a longer run for the organization in the market which is a
great factor for the company. Sharing is a very important element after the company has
gotten online and this system is going to make the online retailing of the organization more
effective. There are going to be lesser errors and more supplies on time to the customers
which is not just going to make the satisfaction level of the customers increase or their loyalty
to the company but also make the organization have higher profit margins which is the
objective of the organization.
4. Challenges the organization may face
There are a lot of challenges which are going to be faced by the organization so that
there is a better functioning of the organization.
 Communication
There has to be a strong communication in the organization so that the system can be
accepted in the organization. Without communication in the organization it is not possible for
the organization to have a better functioning and the productivity of the organization will fall

as well. Marks & Spencer’s is a globally expanded organization which is why communication
is a very important challenge which the organization will have to overcome so that the
organization does not lose their customers in the market (Halawi, McCarthy and Aronson,
2017). It is very important in Marks & Spencer to have a strong communication in the
organization so that there is a better functioning so that the organization can expand them
further and get a larger market share. The competition is increasing which has to be taken
care of by the organization therefore adapting to new changes and systems is going to be a
great advantage for the company and functioning as well. Knowledge management
information system is going to reduce the efforts of the employees and the information of the
products is going to reach the customers on time which is a great factor for the organization.
 Location
The location of the knowledge management information systems can not be limited and
has to be provided to all the employees of the organization globally so that there is a better
functioning of the organization and the satisfaction of the customers also increases globally.
It is very important for the management to take decisions for the knowledge management
information system wisely so that the organization can benefit from it and there is no misuse
of this system in the market (Abualoush and et.al., 2018). The system is going to require a lot
of investment in the organization which is why the management will have to make decisions
accordingly so that they can invest in something which is going to be accepted and the
organization will benefit from it. The reputation of the organization is also going to improve
and the company will be able to have a better profit margins and larger base of customers.
 Adaptability
There has to be a strong adaptability in the organization so that the changes in the
organization can be taken up otherwise the productivity in the organization can fall. It is very
important for the employees of the organization to be motivated so that the changes in the
organization can come in easily. Old employees of the organization can never accept the
changes in the organization so easily which is why it is very essential for the organization to
have better plans for the organization (Obeidat and et.al., 2017). The management and the
human resource will have to function together so that they can make the employees
understand the needs of this system to be adapted in the organization so that there is a better
functioning. Marks & Spencer has a strong market share and their reputation in the market is