Detailed Business Analysis of Marks and Spencer's UK Retail Operations

This report presents a comprehensive business analysis of Marks and Spencer (M&S), a major UK retail sector player. The analysis begins with an overview of the organization's functions, strategy, and structure, emphasizing the interrelationship between them. It then examines the positive and negative effects of the macro environment, including political, regulatory, economic, social, technological, and competitive factors. The report further delves into a SWOT analysis to assess M&S's internal strengths and weaknesses, as well as external opportunities and threats. The analysis covers organizational objectives, market position, and the impact of the macro environment, offering insights into M&S's performance and strategic positioning within the competitive UK retail market. The report also touches upon the importance of leadership, personnel, and HR management in achieving organizational objectives and adapting to market changes. The report highlights the importance of aligning the organizational structure with the company's strategy and vision.

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“Business analysis of Mark & Spencer’s”
1

Table of Contents
Part 1...........................................................................................................................................................2
P3............................................................................................................................................................2
The function of the organization..........................................................................................................2
Strategy and Structure of the organization...........................................................................................2
Interrelationship between organizational function...............................................................................2
M1...........................................................................................................................................................3
Organizational objectives....................................................................................................................3
Part 2...........................................................................................................................................................4
P4, P5, P6................................................................................................................................................4
Positive & negative effect of macro environment................................................................................4
Political................................................................................................................................................4
Regulatory...........................................................................................................................................4
Economic.............................................................................................................................................5
Social...................................................................................................................................................5
Technology..........................................................................................................................................5
Competitive.........................................................................................................................................5
Organization........................................................................................................................................5
Markets................................................................................................................................................6
M3, M4....................................................................................................................................................6
SWOT analysis....................................................................................................................................6
Strengths:.............................................................................................................................................6
Weaknesses:........................................................................................................................................6
Opportunities:......................................................................................................................................7
Threats:................................................................................................................................................7

Part 1
P3
The function of the organization
Mark & Spencer’s is one of the largest retail sectors in UK. Entire function of the organization
has so much updated than the other retail marketing organization. Various types of products have
stored in the retail hub. The function of the retail organization is very fruitful to conduct all types
of employees, stuffs, workers & other stakeholders. The structure of the organization is covered
a huge area in the UK.
Strategy and Structure of the organization
Structure is an important part of an organization chart. Structure has made up of all the people,
situation, events, culture, equipment and related fundamentals that involve the organization. It
elucidates how all the component and procedure coordinate (or fail to do so).As structure
supports strategy so arrangement must be totally occupied with organization’s plan to attain its
mission and goals. If a company dismisses its strategy, it must revise its structure to sustain the
new strategy (Austin et al., 2012). When it fails, the structure acts as buffer for the change back
ton old strategy. As before said structure, supports approach so whatever the organization
activity it reflects its own strategy. To change the policy of an organization means to change the
working practice of its employees. When an organization modify its structure but not modernize
its strategy, then the strategy will evolve automatically to adjust to the new structure. After some
time the management discovers any undesirable change in the organizational strategy. Actually,
it has been accomplished involuntarily. In reality, an organization’s structure is the most
powerful weapon. It is impossible to accomplish any goal or run any organization for a long time
unless the structure and strategy are not compatible.
Interrelationship between organizational function
The sum total work of an organization depends on its strategy. When a company is going to
make major changes, it must consider every aspect of the structural advancements to support the
imminent strategy. That is the only way to ensure the impact of the structural changes on the
productivity. The vision and direction of the organization is what bridges the strategy and

structure. Intranetworking system must be integrated so all the efforts and resources are aligned
with the strategy. The right structure is essential for a successful strategy. Management that is
targeting higher revenue can have a predisposition of controlling everyone on what they should
do without paying attention to the deviation from the current way of organizational procedures.
While individual adherence to the direction might be carried out, unless all components are
integrated in their operations support strategy that can meet the organization’s direction the goals
remain unattainable (Zavadskas. et al, 2011). During the last 25 years, more over 42 industries
have consulted for more ways to achieve the organizational objectives. Improvement of current
strategies and creation of new strategies in line with organizational objectives has been one of
offerings to these clients. However, over the years, it has been noticed that some clients were not
successful in the implementation of new strategies. It is a matter of concern so it is necessary to
decipher the cause. Top management cannot just implement a new strategy and vision and expect
everyone to follow it. To implement such a strategic shift requires a complete reshuffle within
the organizational structure. The organization’s structure has to based on changes to the existing
structure or t he change will cause the new strategy to fail and the change back to the old strategy
will happen involuntarily.
M1
Organizational objectives
Leadership and personnel are much more important than organizational strategy or structure.
Everyone might talk about people and leadership but too often, this is ignored by the
management by focusing on the quarterly goals which put pressure on the production line. As
before, said structure is strategy, that is why the focus on client’s revenue had to be balanced by
an equal focus on the change and its effect. The organization did not want to leave clients with
reports that were not implemented or failed due to the lack of correct focus of the approach. So
many years ago, this organization became project partners for its client’s implementation efforts
to ensure that their new approach designed to increase profits actually functioned and heralded
the change. It cannot be improved plan, increase income, even augment the performance of a
sales force without addressing the organization, people, culture, communication; capacity and
leadership aspects of the organization or at least that part of the organization that are being
changed. A decision is to change one requires an all out effort focused through cause and effect

analysis. It should not be just modifying a structure to change it. It should ensure that the
changes would support that strategy. At the same time, it can’t be just implemented a better
leadership and engagement approach in a accompany or alter the organizational chart without
evaluating the compatibility with the firm’s ability to carry out its current strategies (Chetty et
al., 2013). HR management has traditionally fulfilled two main roles, administrative and
operational activities. Most of these processes are focused on smooth operation for the
organization, while additionally ensuring that personnel were treated fairly and were happy and
motivated at work and were aware of their objectives. Most HR task aims to add value to their
business. They want to be capable in their transactional tasks, while contributing strategically to
the success of the business by their individual role. Therefore, Human Capital Theory seeks to
explain the benefit of knowledge and training as a form of investment in human resources.
Part 2
P4, P5, P6
Positive & negative effect of macro environment
There are some negative & positive effects of macro environment, which is very crucial factor
for the organization here it has written below briefly:
Political
Marks and Spencer operates in the global environment and has expansive in all over the UK. The
political environment is also helped the influence the performance of Marks and Spencer. The
political situation of the UK is even, Marks and Spencer has affected through the effects of the
great dumps that touch the supermarket industry. The supermarket industries has largely
influenced by the laws and Marks and Spencer again is aware that and political situation of the
trade unions the forces governing the recruitment.
Regulatory
The penetration of the new players deals with UK’s supermarket. Therefore, there is a restriction
of Marks and Spencer to selling their grocery items. However, the EU values and rule have
helped the consumer population to suffer healthy diet, that is why companies like as Marks, and
Spencer is required to display the nutritional information of their items. Food Retailing

Commission (FRC) has made a rule that it is essential for all the retailers to adhere to the articles
of drill while dealing with the suppliers in receiving merchandise.
Economic
The stability of the UK’s economy is proven by overcoming the depression inn 2008-09.
According to the reports, there is growth of economy and it is growing around by 0.3%.
Marks and Spencer is actually concerned about the impact of the changes that affect the straight
outcome upon the demand, prices and the success of this casual discounter (Cetina et al., 2014. ).
Social
The structure of UK population is expected to decrease the labour supply. Moreover, expected
that the expenditure of the population in the UK would swell and this will be subjective to the
buying habits of the consumers and this is likely force the consumers into focusing on the
products quality. The present consumer base in the UK has shifted on to bulk shopping and
accordingly Marks and Spencer adjusted on to the trend by the sale of non-food products
(Fleisher et al., 2015).
Technology
Today in retailing zone internet plays a great role. There are some incorporated innovations of
Marks and Spencer like as online delivery, electron advertising, intelligent scales and self-check
out system, Electronic funds transfer, electronic point of sale (EPOS), and RFID systems
Competitive
Marks and Spencer deals with German supplier in the UK and focuses on quality grocery and
supermarket items at good prices. Marks and Spencer has some strong competitors like as Tesco,
ASDA, Sainsbury and now the competition has turned over in the market to other discounters
like as LIDL, which is relatively high (Cetina, et al., 2014).
Organization
Marks and Spencer sells grocery, foods, beverage and other items. The discounter earns revenue
of € 54 billion. The staff productivity is too high as in the Marks and Spencer that sum up to
almost 7.5%. This discounter is able to control expenses, as well as the prices, and thus is a
popular discounter in the UK compared to competitors of larger scale like Tesco, ASDA, and
Sainsbury.

Markets
Marks and Spencer distribute across Australia, Europe, USA and According to Kantar World
panel, the company holds and secures a share of market of almost 6.3% in the UK as compared
to several players.
M3, M4
SWOT analysis will help to develop in depth of understanding impact of macro environment
regarding this organization, here it has describe below:
SWOT analysis
The SWOT deals with “Strengths”, “Weaknesses”, “Opportunities” and “Threats”. By Carrying
a SWOT would be formative to assess their private consistency with the circumstance, they are
performing within for organizations. The SWOT helps Marks and Spencer to appreciate
strengths, attenuation of its and the institution must defeated, opportunities that Marks and
Spencer can accept significant benefit of and the impendence that the institution must take into
account on precedence grounding(Messai et al., 2013). The SWOT for Marks and Spencer has
been revising beneath:
Strengths:
The organization does taste an important sword figure and prestige that they exhibited upon the
period in UK. The cause aback their brawny set over Germany because the institution actually
started their institutional performances over in UK. The organisation has also proper and exact in
forms of characteristic to their items and services, and it is helped them to income international
confession. Another benefit of this organisation is that it has a wealthy power on their rank of
items since the institution have their personal customized Bilbo and items. A simple performing
mechanism and organisational plane supported the organisation to carry their necessary level of
the state of production ability.
Weaknesses:
It also has some weakness of its own characteristics. The organisation also deals with some poor
brand identity that is why there are some refusals from multiple manufacturers to take their

offering of association. The efficiency level also reduced and multiple competitors that offer
modernised processing in their generation and daily performances is gaining ground.
Opportunities:
The establishment is set in its position where it can take advantage of on the point of lowest cost.
After globalization of world market, it has resolved into a global village that asks for no
limitations or regulations for institutions to spread to the world at large. The household market
can play a great role. It is flourishing the organisation. There is a most advanced way that is
Advertisement, which is the most highly developed way for carry the marketing information to
the segmented or non-segmented customers. Marks and Spencer successfully has the tag for
being a wealthy contender.
Threats:
The term “globalisation” has pulled important pleasing benefits for an individual ambitious
group of institutions. It also fetched important tough conditions for organisations that touched
with the market. However, there are some competitors of Marks and Spencer does have a list of
competitors that offers the operation significant challenges. The medium size, it faces with some
huge competitors such as Tesco Plc, ASDA, and Sainsbury and so on (Huselid et al., 2010). The
competitive advantage that Marks and Spencer is that the competition gives the great strength to
Marks and Spence and achieves a high confidence to face a bigger challenge than previous. The
organisational culture that Marks and Spencer has constructed within their organisation can
never defend a significant continuation.
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