Marks and Spencer: Managing Information and Technology Report Analysis

This report provides a comprehensive overview of managing information and technology within Marks and Spencer (M&S), a major British multinational retailer. It begins with an introduction to the company, its business strategy, and the products and services it offers. A PESTEL analysis is conducted to assess the external factors influencing M&S, followed by an examination of the company's primary activities within Porter's value chain, including inbound logistics, operations, and outbound logistics, along with supporting activities. The report then delves into how information technology impacts and can improve the business processes of M&S, offering insights into the integration of IT solutions. The analysis highlights M&S's strategies for leveraging IT to enhance its supply chain, customer experience, and overall operational efficiency. The report concludes with a summary of key findings and recommendations for optimizing IT management at M&S.

Running head: MANAGING INFORMATION AND TECHNOLOGY
Managing Information and Technology
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report gives an overview of managing information and technology in regard to Mark and
Spencer, which is a British multinational retailer. There is a brief introduction about the company
along with its business strategy. The report also outlines the products and services sold by the
company. There is a PESTEL analysis of Mark and Spencer and discussion of the three primary
activities of the company in regard to Porter’s value chain. Further, the report also discusses how
the information technology impacts the business process of the company.

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Table of Contents
Introduction......................................................................................................................................3
Introduction of the Organization.....................................................................................................3
Business Strategy.............................................................................................................................4
Products and Services of the Company...........................................................................................4
PESTEL Analysis of Marks and Spencer........................................................................................5
Analysis of Three Primary Activities in Porter's Value Chain........................................................7
Reflection on how Information Technology Can Improve Business Processes..............................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................12

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Introduction:
The report is a discussion on managing information and technology. The chosen
organization is Mark and Spencer. In the report, there is a brief introduction of the organization
and identification of its present business strategy. There is also discussion about the products and
services of the chosen company. Pestel analysis of Mark and Spencer done which also finds a
mention in the report. There is further discussion on the three primary activities in porter’s value
chain that includes inbound logistics, operations and outbound logistics and discussion on the
supporting activities. The report also puts forward a reflection of how the deployment of the
information technology could its business processes.
Introduction of the Organization
Marks and Spencer represents a major British multinational retailer headquartered in
Westminster City of London. The company finds a listing in the London Stock Exchange. Mark
and Spencer however specialize in selling luxury food products, home products and clothing
line. Michael Marks and Thomas Spencer found the company in the year 1884 in Leeds. The
company also sold branded goods and presently had 979 stores across United Kingdom out of
which 615 are solely dedicated to selling of food products (Marksandspencer.com 2017). The
company was also the very first British retailer that made pre-tax profit close to 1 billion pound.
However, the company went through a sudden slump that surprised everyone including retail
analyst, hundreds and thousands of investors and shareholders. The recent picture of the
company shows that there has been an increase in their food sales and decrease of their clothing
sales.

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Business Strategy
The unique retailing formula of the company is making it successful in increasing
number of markets around the world. The company thus holds on to a strategy of accelerating its
overseas expansion while continuing to exploit the opportunities of growth in United Kingdom.
Mark and Spencer in addition to focusing on three main generic strategies cost leadership,
differentiation and focus focuses on alternative strategies that relates to substantive growth. The
substantive growth of the company however includes horizontal and vertical integration, related
and unrelated diversification (Corporate.marksandspencer.com 2017). The horizontal integration
refers to the fact that the company makes their product available to a wide range of clientele as
Mark and Spencer sell products ranging from food to clothing line from a wide range of
manufacturers. Thus, customers can choose from a wide variety of products under a single roof.
As a part of the vertical integration, the company employs a targeted approach that focuses in
serving a wide range of customers. About related and unrelated diversification, the company
happens to sell a diverse range of products that are related as well as unrelated like clothing and
food.
Products and Services of the Company
Marks and Spencer primarily deals in home ware, food, technology, beauty, financial
services, energy, hospitality and clothing. The company has a huge collection of clothing line
under different brand names that caters to children, women, businesspersons and men
(Marksandspencer.com, 2017). However, some of the prominent Mark and Spencer brand
includes limited collection for men, women and children, per una for females, north coast for
men, portfolio for men and women, indigo collection for female and boys, autograph for unisex
and male, blue harbor for men.

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PESTEL Analysis of Marks and Spencer
PESTEL analysis refers to analyzing the external environment of the company where
external environment refers to the factors that indirectly or directly affects the company’s
internal function, objectives and business strategy (Thompson and McLarney 2017). These
factors are out of control of the organization however, the company can take necessary action to
prevent them. The most common external factors include political, economic, social,
technological, environmental and legal.
Political
The Mark and Spencer (M&S) favored by the country’s free trade agreements that have led
to the decrement in the sourcing cost. This was necessary as the high cost structure proved to be
disadvantageous to the M&S in the international markets (Mohamed and Daniel 2012). The
company though has a planned initiative for corporate social responsibility but lack of clarity of
the UK government on the energy efficiency schemes negatively affected M&S
Economical
The discounted pricing the competitors affected M&S. However, the company focused
solely on the quality of which hiked the price that resulted in temporary loss of the organization.
Later on realization, the customers got attracted to high quality with value. The confidence of the
customers on the company has enabled it to enhance its quality (Barrientos 2013). However, the
onset of the financial crisis gave rise to price sensitive customers therefore the company forced
to work on with the flow of the market in order to ensure sustained sales. This is because the
customers then looked out for online as well offline value deals.
Social

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The transition from the baby boomers into the millennial and generation X ensures the
requirement of a changing strategy for catering to the newer segment. Most of the baby boomers
at the present age are retired people and their preference no longer holds value. These people
mostly show interest in green and organic produce that requires rethinking of the brands that
needs consideration to be included by M&S (Raynolds 2012.). Moreover, the company
undertook some fresh analysis on the customers of Britain who prefers fashionable styles to
classic trends. Introduction of such a fashion line would help M&S to get a bigger market share.
Technological
Mark and Spencer have strong online as well as social media presence. Thus, in this
context, the company well placed for capitalizing in this avenue. Moreover, the consumers prefer
online retailing and mobile commerce compared to store purchases since more focus lies
technologically (8). Thus, it is very important for Mark and Spencer to have a substantial
presence in the digital medium so that they can reap the benefits.
Environmental
M&S has a Plan A that focuses on the 180 commitments that the company has put forward in
dealing with the natural and environmental issues. Thus, M&S thus looks forward to capitalize
on the success of Plan A (9). However, for stricter regulations on the environment and increasing
pressures on the customers on the ethical green practices would require strict standards at M&S.
M&S however takes advantage of this development through its concern for the environment.
Legal

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Consumer rights, environmental, antitrust, legal factors, health and safety regulations
affect the company. However , the company’s initiative of ‘behind the barcode’ ensure omni
channel presence experience by allowing consumer to place online orders for home delivery or
allow store pick up. Legal plan however needs to be stronger for the company (Fernie and Sparks
2014). This is because the operation of M&S does not create obstruction to any regulation or law
in international, home and the countries that is lies along its value chain. Thus, the legal
environment of the company as well the legal department became important during the allocation
of the new sites for the stores at the British petrol station.
Analysis of Three Primary Activities in Porter's Value Chain
Porter’s value chain analysis represents a strategic tool used for identification of the
activities close to or in an organization that leads to creation of the service or product. The three
primary activities however include:
Inbound Logistics
Inbound logistics deals with the delivery, storage and transport of the goods that is
coming into the business. The launch of Plan A of Mark and Spencer and having won an award
for implementation of a disruptive supply chain have placed the company far ahead of the
competition in terms of the environmental and social impact of its business(Potter et.al 2016).
The 180 commitments are supported by financial incentives since the buying teams includes
energy efficiency, ethical trade, sustainable sourcing and making the company the sustainable
retailer of the world. The company has also reduced its initial dependency on the vendor’s full
service. The company took this initiative by launching a warehouse consolidation program. The
company opened up its brand new warehouse at Bradford where it combines the food suppliers

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from the all the four centers. The company also plans in building a second warehouse in East
Midlands that will ensure providing e-commerce facilities along national distribution centre
(Crocker, Jessop and Morrison 2012). This helps the company in possessing greater control over
the supply chain. The company expected for sourcing about sixty-five percent of the inventories
from the direct vendors.
Operations
Mark and Spencer has made a multitude of investment in sub brands like store bakeries
and an enhanced in store customer feel thereby keeping up to the changing customer needs. The
company in the year 2014 to 2015 underwent difficulties while managing its distribution and
operations online from one of its centre (Yu, Ramanathan and Nath 2014). This gave rise to
cancellation of delayed orders. The company also arranged for an information technology (IT)
system and logistics network for ensuring better flexibility of the supply chain and availability of
the customers. However, towards the end of 2015 the company had to shut down its website
temporarily due to breach of security. There is still prevalence of poorly integrated IT systems
experienced by the company. Apart from this, the M&S for satisfying the customer needs also
established sub brand based products. Further, the company also tried to launch in store bakery
for maintaining the freshness of delivery to the customers. The company also adopted modern
techniques for improving the store atmosphere and make the shopping experience more
inspiring.
Outbound Logistics
Outbound logistics focuses on the delivery, storage and transport of goods that is going
out the business. There are however numerous stages of the outbound process of logistics that

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business or organizations go through (Hadjiconstantinou 2012). For effective working of the
outbound logistics, the sales section first obtains a customer order that it confirms with the
inventory records for ensuring completion of the order. The order then is transferred to the
warehouse for packing and picking after which it is shipped. Following the process, there is
billing against the customer order followed by cash collection. In this context, M&S have
multiple operation channels that allow flexibility to the customers for placing orders, shop online
and ensure them with seventeen delivery options (Christopher 2016.). From the year 2010, the
company has put forward an accelerated program by ensuring a more supply chain through
targeting a saving of 280 million dollar by the year 2020. The company has closed its smaller
warehouses and opened up larger ones. The company has however set the annual targets of
recycling in the year 2009 and in the year2 012 the company achieved a zero waste for landfill.
Thus, M&S possess a variety of channel for operation that put forward flexible range of delivery
and order options. Moreover, the company also tries to provide convenience in service through
online shopping facilities and ensuring delivery options on the following day.
Reflection on how Information Technology Can Improve Business Processes
The deployment of information technology has helped Mark and Spencer (M&S), the
leading retailers of United Kingdom, in improving its operational efficiencies, effectiveness of
business drive and helped in providing superior experience to the customers (Mithas et.al 2014).
The information technology also helps in providing end-to-end infrastructure management
services and integrated applications for M&S thereby helping it in supporting critical
applications that is spanning multiple lines of functional and business areas including
procurement, supply chain, forecasting, stock replenishment, financial management and sales.

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The introduction of information technology will enable M&S to deliver efficient services
and thereby help in achieving better positive outcomes in future. The intrusion of new generation
of consumers brings about the change in the ways of fulfillment and expression of consumer
demand and preferences along with the perception of the brand value and the product benefits.
This had ensured an increased in the visualization and globalization of the business and
technology architectures that are contributing to the change in retail landscape (Recker 2012).
The introduction of information technology helps M&S in embracing the business processes and
new technologies for strengthening the leadership position and operates as a multi channel
retailer and at the same time lead to expansion of the international business. The application of
information technology helps M&S to increase the company’s ability in responding to evolving
marketplace through increase efficiency and speed. In addition, with technology M&S facilitated
to analyze and collect customer data with a differentiation. Further, the company is also able to
work effectively through improving its business processes. Thus, the commencement of
technology can lead to improvement in business processes by speeding it up and ensure cost
saving benefits.
Thus, the rise in the information technology has made a way for varied innovations. The
digitization of the information has enabled an increasing number of businesses to use the digital
tools in improving the prospects of the business. Therefore, information technology has provided
business with the scope of analyzing data and plan business strategies (Österle 2013). The usage
of information technology ensured that the analysis of data was not only accurate but it also
helped in optimizing profits. Thus, with information technology M&S can have the following
transformation in its business processes:
Automated Business Process:

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The introduction of the information technology helps in automating the business process
of M&S. This will not only help in reduction of the operation cost but also helps in saving time.
The saved time can help the company focus on other tasks that in a way helps in speeding up the
business process of the company. With information technology, M&S can automate processes
like collection of customer data, tracking of metrics and billing. This can however be achieved
using various automation software.
Protection of Information:
Like every organization, M&S have a huge database that comprises of information
related to business transactions and client details. This information holds extreme importance
and results in a host of legal issues in case of loss. In such scenario, information technology can
be of great help as it provides the right resources for storing the information in a manner that
ensures protection at a maximum level. This is because virtual storage systems can ensure
information safety by allowing limited access. Moreover, these storage systems have increased
protection so they can neither be hacked nor wiped off.
Providing Satisfaction to Its Customers:
Information technology also will enable M&S to ensure enhanced customer satisfaction and
experience. The key to which is to cater to the customer requirements and ensuring a strong
customer support team. Information technology thus ensures providing the best tools for solving
customer problem and communicating with them on a real time basis. The technology has
brought to the customer’s facilities like emailing and various social media platforms.
Resource Management:

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Managing resources sometimes becomes quite difficult for the M&S. This is when the
information technology plays a key role in ensuring effortless management of the resources
through introduction of various feasible solutions.
Conclusion
The report ends with a discussion on the impact of information technology on the
business process of Mark and Spencer (M&S). There is also an analysis of primary activities of
the company in regard to the Porter’s value chain. The report also puts forward a PESTEL
analysis of the company. There is also a brief introduction of the company, its products and
services and the business strategy adopted by the company.

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References:
Barrientos, S., 2013. Corporate purchasing practices in global production networks: A socially
contested terrain. Geoforum, 44, pp.44-51.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Corporate.marksandspencer.com. 2017. Home. [online] Available at:
http://corporate.marksandspencer.com/?intid=gft_company [Accessed 10 Nov. 2017].
Crocker, B., Jessop, D. and Morrison, A., 2012. Inbound logistics management. Pearson Higher
Ed.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hadjiconstantinou, E. ed., 2012. Quick response in the supply chain. Springer Science &
Business Media.
Marksandspencer.com. 2017. Store Listing | M&S. [online] Available at:
http://www.marksandspencer.com/s/store-listing [Accessed 10 Nov. 2017].
Marksandspencer.com. 2017. Welcome to Marks & Spencer. [online] Available at:
http://www.marksandspencer.com/ [Accessed 10 Nov. 2017].
Mithas, S., Tafti, A.R., Bardhan, I. and Goh, J.M., 2012. Information technology and firm
profitability: mechanisms and empirical evidence.
Mohamed, M.E.J.R.I. and Daniel, D.W., 2012. Analysis of retailers’ communication approaches
in sustainability and social responsibility reports. International Journal of Marketing
Studies, 4(2), p.30.

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Österle, H., 2013. Business in the information age: heading for new processes. Springer Science
& Business Media.
Potter, A., Lalwani, C., Disney, S. and Velho, H., 2016. Modelling the impact of factory gate
pricing on transport and logistics. In Developments in Logistics and Supply Chain
Management (pp. 231-239). Palgrave Macmillan UK.
Raynolds, L.T., 2012. Fair Trade: Social regulation in global food markets. Journal of Rural
Studies, 28(3), pp.276-287.
Recker, J., 2012. Introduction. In Scientific Research in Information Systems (pp. 3-10). Springer
Berlin Heidelberg.
Thompson, J. and McLarney, C., 2017. What Effects will the Strategy Changes Undertaken by
Next Plc Have on themselves and their Competition in the UK Clothing Retail Market?. Journal
of Commerce and Management Thought, 8(2), p.234.
Yu, W., Ramanathan, R. and Nath, P., 2014. The impacts of marketing and operations
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perspective. Industrial Marketing Management, 43(1), pp.25-31.