Report on Marks & Spencer: HR, Financial Management and Marketing

This business studies report provides an analysis of Marks & Spencer (M&S), a multinational company specializing in customer products. The report covers various aspects of the business, including an overview of the company's operations and strategic goals. It delves into the 4Ps of marketing, focusing on a poster, case study on human resources (HR) and motivation, and a financial management report. The HR section examines recruitment models like Old School Recruiting, Fully Outsourced Recruiting, Light Internal Recruiting, and Heavy Internal Recruiting, with justification for the chosen model. The financial management section explores investment decisions, financial decisions, and dividend decisions, along with the importance of financial management and the roles of financial managers. It also identifies short-term and long-term sources of finance available to Marks & Spencer, such as factoring, customer advances, bank overdrafts, discounting of bills, issue of shares, debentures, and term loans. This report offers a comprehensive understanding of M&S's business practices and strategies.

Introduction to Business
Studies

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Covered in Poster.........................................................................................................................1
TASK 3............................................................................................................................................1
Case Study...................................................................................................................................1
TASK 4............................................................................................................................................3
Financial Management.................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Business Studies is an academic subject which is taught in schools, colleges and
universities (Andersson, Cuervo-Cazurra and Nielsen, 2020). The aim of this subject is to
provide comprehensive information to the students about the way businesses operate. By
studying it, the students can make sure that they are able to achieve their distinct goals and
objectives in the future time period. This project is based on Marks & Spencer. It is a company
which deals in various types of customer products and provides different types of services to
them. In this assignment, focus will be made on one of the 4P's of marketing which will be
covered as a part of the poster, case study on HR and motivation. Additionally, focus on
financial management report will also be made as a part of this assignment.
TASK 2
Covered in Poster
TASK 3
Case Study
Human Resources refer to the people who work for a particular organization, industry or
a sector (Doern, Williams and Vorley, 2019). The department which deals with them is known as
HR department. In Marks & Spencer the HR department has to perform different types of
functions. One of them is Recruitment.
Recruitment refers to a process which is used by the organizations to identify, attract,
screen, shortlist and interview the suitable candidates for the different posts which are available.
In Marks & Spencer, this process is used by the HR department when there are vacant positions
available within the company.
There are different types of recruitment models which can be used by the organization.
These models are as follows-
Old School Recruiting- In this model, the HR department of the organizations follow a
standardized approach in order to ensure that they are able to identify the right candidates for the
positions which are available. By following this model, the HR department of Marks & Spencer
will be able to select the right candidates for different positions in the company.
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Fully Outsourced Recruiting- In this model, the HR department in the companies
outsource their recruitment process (Farooq and et.al., 2017). When they make the use of this
model an external agency is given the task of identifying the potential candidates and then
selecting them. This agency should be reliable. It should provide those candidates who are skilful
and can be beneficial for the company. If Marks & Spencer makes the use of this model then it
can offer the benefits like less internal labour costs, fewer technology costs and better results.
Light Internal Recruiting- In this model, hybrid strategy is used by the organizations. In
it, the firms make use of internal HR resources as well as also hire a recruitment vendor. In the
context of Marks & Spencer, the use of this model can be made if the HR department wants to
have a higher budget for the purpose of recruitment. This model can provide the desired results
for the company if it is used in the correct manner.
Heavy Internal Recruiting- In this model, an all-in approach is used. In it, the firms make
use of their brand image so that they can attract the best candidates for their roles. Also the use of
technology is made which enables the companies to be able to recruit the best people for their
different positions. However the budget which is required for this model is quite higher.
Therefore, In the context of Marks & Spencer, this model should be used if the company expects
the achievement of results in the future time period.
Justification- The use of Old School Recruiting Model should be made by Marks &
Spencer. It is so because this particular model identifies the appropriate ways through which they
are able to recruit the candidates. It follows a step-by-step approach so that the companies are
able to properly induct the right people in its various processes.
Background of Marks & Spencer- Marks & Spencer is a multinational company which
deals in different types of customer products. Its specialization lies in clothing, home products
and food products. Its headquarters are located in London, United Kingdom. The company
excels in multiple consumer sectors which thereby channelize its growth. The management of the
organization has plans for the company in the future which will ensure that it will achieve its
different goals and objectives easily and thereby acquire a strategic edge over the competition.
Recruitment in Marks & Spencer- Marks & Spencer makes use of both the internal as
well as external sources for its recruitment. For the managers of the company, the use of both of
these sources is crucial so that they are able to fill their different positions. In the company, the
HR department makes use of internal sources to fill the positions at higher-level management by
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identifying the talented people within the organization and promoting them to assume a higher
role.
Recruiting the right people- In Marks & Spencer, the HR department has to ensure that
they are able to recruit the right people by carefully screening the candidates and evaluating their
skills and abilities. The HR managers here create a recruitment advertisement to attract the
talented candidates. The candidates who are interested have to contact the HR department. The
HR managers therefore organize the interviews of these candidates and screen them properly to
identify their suitability for a particular position. The candidates who are found suitable are
selected. Their joining formalities are completed when they join the company and a formal
induction process is conducted for them to make them comfortable in their respective roles.
TASK 4
Financial Management
Financial Management refers to planning, organizing, directing and controlling the
financial activities like procurement and utilization of funds of the organization (Gaur and
Kumar, 2018). It is done in such a manner so that the financial resources which are available
with the company are utilizer properly and thus in this way the right optimization of the available
funds is done so that goals and objectives can be achieved in the future time period. In the
context of Marks & Spencer, there is a requirement of ensuring it so that the management is able
to attain its varied goals and objectives effectively and efficiently.
The elements of Financial Management are as follows-
Investment Decisions- These type of decisions are taken by the financial managers
within an organization so that they can determine the best place to put their funds where these
funds can be utilized in a proper manner (Newman, Schwarz and Ahlstrom, 2017). The aim of
the financial managers of Marks & Spencer here should be to ensure that the investment made by
them yields the appropriate results.
Financial Decisions- For these type of decisions there is a requirement of ensuring that
the sources of finance are properly evaluated (Olsen and Solvoll, 2018). For the financial
managers of Marks & Spencer, the requirement is to ensure that these decisions are properly
taken. This will make sure that the funds are raised at appropriate rate and therefore there is
availability of funds for different operations of the organization.
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Dividend Decisions- These decisions are taken regarding the distribution of profits
between the shareholders (Peterson, Arregle and Martin, 2020). In the context of Marks &
Spencers, these decisions are quite useful because by taking them the managers in the
organization will be able to identify the right approach for ensuring that their profits are
increased and that the shareholders are given the appropriate share in the dividends.
Importance of Financial Management-
Optimization of financial resources- With proper financial management, the financial
resources which are available within the business organizations can be properly optimized. Thus
for the managers of Marks & Spencer it is crucial that they make proper use of financial
resources by ensuring it. When this is ensured, proper return on investment i.e. ROI can be
expected which is helpful for the managers to be able to get the desired returns.
Financial Decision-Making- When proper financial management is present within the
companies, the financial decision-making aspect can be ensured. Through it, the managers of the
companies are able to take various types of important decisions. In the context of Marks &
Spencer, this is quite crucial so that the managers of the organizations are able to take the right
decisions effectively which can be beneficial for them both in the short-run and long-run period
of time.
Role of financial managers-
In Marks & Spencer, the financial managers have to play the following roles-
 To ensure that there is an availability of funds with the business for their requirements.
 To make sure that funds are used properly within the businesses to meet the goals and
objectives in the future.
 To analyse and interpret the financial statements to draw the required conclusions and
recommendations.
 To identify the financial problems and issues and take rectifying actions to remove them
effectively.
Sources of finance-
For the purpose of raising funds, there is a requirement for the businesses to identify the
sources through which they can get them. The sources of finance which can be used by Marks &
Spencer are as follows-
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Short-term sources- In the short-term sources the funds are raised by the organizations
for a time period of less than 1 year. These sources are as follows-
 Factoring- In it, a business provides its debtors to a factor and receives payment in return
(Rohlfer and Zhang, 2016). By making its use, the organizations can raise funds for
meeting their short-term needs and requirements. Marks & Spencer is required to make
its use so that it is able to raise the funds for short-term.
 Advances from customers- These advances are given by the customers for purchasing a
particular product or for availing a particular service in the future (Santacreu-Vasut,
Shenkar and Shoham, 2017). In the context of Marks & Spencer, these can be used so
that the managers are able to get the funds for their short-term requirements.
 Bank Overdraft- It is a popular source of fund provided by the banks for short-term
needs and requirements. Banks provide this to businesses on the basis of their goodwill
and creditworthiness by allowing them to draw more than their available balance. For
Marks & Spencer, this is a good source which can be used for meeting short-term needs.
 Discounting of bills- Bill Discounting is a method in which a bill of exchange is traded
by a financial institution before it is matured at a price less than its par value (Definition:
Bill Discounting, 2018). In it, the bills receivables which are available with an
organization are discounted. The banks discount them at a particular rate. For the
managers of Marks & Spencer, this is a good source which enables them to raise the
funds appropriately for their different types of short-term needs and requirements.
Long-term sources-
 Issue of shares- In this source, shares are issued to the public for the purpose of raising
of funds for long-term needs and requirements (Shrestha, 2017). Dividend is required to
be paid to the shareholders when the profits are declared. Marks & Spencer can make its
use for raising the funds through public by allotting them the shares according to their
investment.
 Issue of debentures- Through this source, public are issued debentures and thus in this
way businesses get the required funds at a particular rate of interest. In the context of
Marks & Spencer, the requirement is to make sure that these are issued to public at a
particular rate so that the funding needs of the company are fulfilled.
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 Term Loans- These are provided by the banks to the businesses at a fixed rate of interest
. They are provided for a long-term period of time. For Marks & Spencer, these loans
offer a good opportunity to secure finance for long-term needs as higher amount of funds
can be easily raised through them.
 Retained Profits- This is a very good source of fund in which the businesses are required
to retain its profits and use them for the future. In Marks & Spencer, these can be used by
the managers as no interest has to paid on them and there is no cost which is involved in
raising them.
Justification- Marks & Spencer can make the use of Advances of Customers for their
short-term requirements and Issue of shares for long-term requirements. Both of them can be
used so that the managers are able to get the funds which they require at the right time.
CONCLUSION
From the above report, it can be concluded that Business Studies is a comprehensive
subject which covers different areas. It has multiple dimensions through which the managers are
able to understand the dynamics which are associated with their businesses. Price is an important
factor in the Marketing Mix of an organization. One of the important functions of the HR
department in an organization is to recruit candidates. Also, financial management is crucial
from the point of view of companies so that they are able to achieve their financial goals and
objectives in the future time period by optimizing their financial resources.
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REFERENCES
Books and Journals:
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business as usual? An introduction and review of the literature. Entrepreneurship &
Regional Development. 31(5-6). pp.400-412.
Farooq, M. S. and et.al., 2017. Acceptance and use of lecture capture system (LCS) in executive
business studies. Interactive Technology and Smart Education.
Gaur, A. and Kumar, M., 2018. A systematic approach to conducting review studies: An
assessment of content analysis in 25 years of IB research. Journal of World Business.
53(2). pp.280-289.
Newman, A., Schwarz, S. and Ahlstrom, D., 2017. Microfinance and entrepreneurship: An
introduction. International Small Business Journal. 35(7). pp.787-792.
Olsen, R. K. and Solvoll, M. K., 2018. Reinventing the business model for local newspapers by
building walls. Journal of Media Business Studies. 15(1). pp.24-41.
Peterson, M. F., Arregle, J. L. and Martin, X., 2020. Multilevel models in international business
research. In Research Methods in International Business (pp. 417-432). Palgrave
Macmillan, Cham.
Rohlfer, S. and Zhang, Y., 2016. Culture studies in international business: paradigmatic shifts.
European Business Review.
Santacreu-Vasut, E., Shenkar, O. and Shoham, A., 2017. Linguistic gender marking and its
international business ramifications. In Language in International Business (pp. 194-
208). Palgrave Macmillan, Cham.
Shrestha, P. N., 2017. Investigating the learning transfer of genre features and conceptual
knowledge from an academic literacy course to business studies: Exploring the potential
of dynamic assessment. Journal of English for Academic Purposes. 25. pp.1-17.
Online
Definition: Bill Discounting. 2018. [Online]. Available through:
<https://www.myforexeye.com/what-is-bill-discounting>
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