LSBM100 Report: Analysis of Marks and Spencer's Business Strategy

This report provides a comprehensive analysis of Marks and Spencer (M&S), a prominent UK retailer. It begins with an introduction to the company, its background, and its product offerings. The main body of the report delves into the competitive environment of M&S using Porter's Five Forces analysis and PESTEL analysis, examining factors such as the threat of new entrants, bargaining power of suppliers and buyers, and the intensity of rivalry. The report then analyzes M&S's inbound and outbound logistics through Porter's value chain, evaluating operations and distribution strategies. Furthermore, it summarizes the information technology used by M&S and suggests improvements. The report concludes with a summary of findings and includes references to support the analysis, offering a detailed overview of M&S's business strategies, competitive positioning, and operational efficiency.

Managing Information
and Technology -
Marks and Spencer

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................4
1) Analyses of competitive environment and apply porter's five forces...................................4
2) Analyse inbound operations and outbound logistics with the help of Porter's value chain
analysis........................................................................................................................................6
3) Summarize the information technology used by M&S company and suggestion.................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Information technology is use of computers to transfer, manipulate, stores data or any
useful information (Ilmudeen and Bao., 2018). Technology become necessary fro the every
business now a days, without technology company or any small business cannot be successful in
the market. This make important for every business to adopt technology trends in their
workplace, so they can gain comparative advantages.
Overview of the company
This report will take Marks and Spencer for this case study , it is one f the most reputed
retailer company in UK, and they are selling product such as high quality clothing, food
products and home appliance. It was founded by the Mchaek Marks Thomas Spencer and
Marks and Spencer have huge reputation in the United Kingdom market because of their
product quality and chip prices of their product ad services.. This is listed in the London stock
exchange and it constituent of the FTSE 250 Indexes , having previously been in the FTSE 100
indexes from their certain until 2019 (Busse, Meinlschmidt and Foerstl., 2017).Another country
where they have successfully expanded their business is Indian. After the UK expansion, Marks
and Spencer company hold most of the market in India which was huge achievement for this
company and help them to grow in the market. There are some other brands which are associated
with this company and some are their own such as Rosie, Marks and Spencer energy, Marks
and Spencer collection, Blue Harbour, autograph, Per Una and Limited. This company makes
total 10 million revenue in 2019 their operating income is 601 million in 2019. more than
80000 employees are working in this company currently, and they are having almost 1400
location in worldwide and still their company is expanding their busne3ss in other countries.
Background
Marks and Spencer was founded in 1884 by the Michael marks and Thomus Spencer in
Leeds. This company become 1st retailer company to make pre Tax profit is over the 1 million
in 1998. it was huge achievement for this company and increase their popularity in the other
markets as well. Although subsequently this went into a sudden slump, which took the company
and their stakeholders by surprise. In 2009 officials of this company announced their Chip
executive Chairman Stuart Rose and Rose remain in the role of non-executive until Robert
Swannel replace him in 2011. In 2018 Marks and Spencer confirm, that estimated 100 stores
will have closed till the end of 2022 in the Radical plan. Still, there are chances to close more

than 100 shops of this company which is yet to be confirmed by the officials of Marks and
Spencer company.
Product and services
They are selling quality clothes in cheap price which attracts customers to buy their
products (Barak., 2017). Other products of this company are home appliances and food product.
They are successful in their food product market because of their ready meal products which is
useful for the people who are busy in their office life, and they do not have time to make food.
MAIN BODY
1) Analyses of competitive environment and apply porter's five forces.
There are some internal and external factors which can affect the business of the Marks
and Spencer company so it is important for the superiors of this company to analyses those
factors and gain competitive advantages in their market (Yuan, Wang and Zeng., 2017). There
are tools to analyses internal and the external environment factors which are PESTEL and
Porter's five analyses. This helps to gain competitive advantages and Marks and Spencer
company can become successful in their business.
PESTEL Analysis of Marks and Spencer company
Political factors
one of the most valuable aspect from the polices is the free trade which has been
implicated on some countries on the bases of agreement. Because of free trade Marks and
Spencer import product from the other foreign counties in cheap prices.
Economical
Price been always a factor in this industry, other brands and try to steal market from the
Marks and Spencer (Jambulingam, Joshi and Kathuria., 2018). They are providing similar
product in the cheap prices which is attracting customers to switching their brand. Marks and
Spencer need to bring new technology which can minimize waste from the product, and they can
provide quality product to the customers in law prices.
Social
Marks and Spencer company have huge advantage of their ready meal products and this
is for the people who are busy in their offline life and not getting time to make their morning
lunch and lunch as well. This product is useful for those people, and they can take their meal on
time without wasting their time. This is providing them competitive advantages because many

people in the UK are not able to make their meal for morning and evening. They are not able to
make because they go to the office in morning and not get time to make food.
Technological
Marks and Spencer company have their online stores which helps them to increase their
growth and profitability both. They provide offers and discount on the product which attract the
customers. Best thing about this technology is that they do not need to go anywhere, they just
have to order their product and their team, will deliver their product at their home. Their are
many other technology trends they have implemented in their workplace which have their ow
advantages. They provide card facility to their customers because many person wants to pay their
bill digitally. This helps them to pay their bill immediately without having any problem.
Environmental
they have implemented trees near their stores so people who come there can get fresh air.
This shows their contribution towards the environment and this is also helping them to make
their image good in the customers mind and encourage them to but their p-products from stores
(Kaplan, Naori and Raz., 2020). They also bring many Eco friendly products which does not
affect on the environment and their manufacturing process is also Eco friendly which makes this
company successful, and they are able to maintain their image in the market where they are
operating their business.
Legal
They are following all the legal rules of the counties where they have expanded their
business, and they have all the legal rights and agreement of the company.
Porter's five forces
Threat of new entrant
New entrants in the retail bring innovation and new technology in the market. This things
are putting pressure for the Marks and Spencer company. New technology is making their
business more effective and steeling their customers (Jeyanthi and Chandrasekar., 2017). New
entrants in this business can take competitive advantages and overtake this company so it is
important for them to adopt new technology and built pricing strategies.
Bargaining power of supplier
all most every company in this industry buy their raw material from the numerous
suppliers. This mean supplier have strong control over the prices and they take huge amount

from the companies like Marks and Spencer. This is important for the company to make good
relationship with the suppliers, so they can get raw material in less price, and they can add some
value in their product and satisfy their customers. Implementation of new technology in the
Marks and Spencer's workplace which reduce waste from the companies resources.
Bargaining power of Buyers
There are many retailers in this industry who are selling product which are similar to the
products of the Marks and Spencer company so customers have bargaining power so this
company have to bargain with the customers and provide them product in affordable price
otherwise they have more option to go the other retailers. Marks and Spencer is use Artificial
technology in their stores which attracts the customers to visit their shop and buy products.
Threat from substitute products
products and services are similar in this industry which creates threat for the Marks and
Spencer, but they are continually developing their products by the market research and able to
attract customer to by their production (Ayguen and Oeser., 2017). They advertise their product
on the social media and convene customers to but their product by showing differentiation in
their product with another products.
Revelry among the existing players
competition in the industry is very high because there are many retail companies on the
goals level have strong hold on markets which makes treat for this company. They have strong
hold on the UK market and most of the contribution they get from their online website. This
helps them to be top retailer ion the UK, and they are gaining comparative advantages in this
market. There are some competitors of the Marks and Spencer company are Walmart, TESCO
and many more who are gaining them huge competition. It is important for the Marks and
Spencer to update their work by implementing new technology which can help them to stay in
competition.
2) Analyse inbound operations and outbound logistics with the help of Porter's value chain
analysis
The value chain analyses forces strategies to think from the prospective of the companies
activities primary activities of the company are those which are concerned with the delivery of
the services or their products and this included outbound logistics, inbound logistics, marketing
and sales and services.

Primary activities
Primary activities of the Marks and Spencer company are involved in producing their
product and selling directly to the customers. Analysis of these activities can help this company
to improve their performance, and they can take competitive advantages.
Inbound Logistics
Traditionally inbound logistics are activities and the process concerned with the
distributing receiving and storing the outputs that go into the products of companies good and
their services (da Silva Guabiroba And et.al., 2017). Marks and Spencer company has won the
GBS supply achievement and has they also take significant lead just because of their plan A
sustainability program to create proper step changes in their supply chain on the international
market. This company also has got commendation from the European counties which provide it
European business Award for the environment. Marks and Spencer has thus a stronghold on the
sustainability which is providing them a huge advantage in this competitive market, and they are
overtaking emerging retailer companies. This is important for Marks and Spencer company to
build strong relationship with their product supplier which can help them to get necessary
support store, distribute and receive the product. Without analyzing their Inbound logistic , this
company can face various challenges in their developed of the product.
Operations
This is necessary of the Marks and Spencer company to analyses their operational
activities raises when the raw material arrives, and they are ready to process the raw material into
the end of the product and launch their product in the market, so they can satisfy their customers
and make profit and increasing their growth (Dubey And tt.al., 2019). Some of the example of
operational activities are testing, assembling , machining, packing etc. repairing and maintaining
equipment which are present in the workplace of the Marks and Spencer are also come in this
category.
Operations include both service operation and manufacturing process study of the
operation activities by the companies superior is important because it helps to improve
productivity of the company and also maximize the efficiency and ensure the competitive
success of Marks and Spencer company. Growth in the productivity of this company also boost
their profitability, and they can able to achieve their goals and objectives and show their presence
in the global market with strong brand name.

Outbound logistics
Outbound logistics is the process in which company deliver goods to the customers by
passing through different channels. Some of the outbound logistics activities are warehousing,
order purchasing, transporting and handling and in the last delivering goods to the customers.
Marketing and sales
Marks And Spencer Group company will show the benefits and product specialization
points of offering products to influence the buyers that its offering is better than the other
companies in the retailer industry. Only making a advanced quality product at low-cost costs
and classifiable features cannot make value until Marks and Spencer company invests on the
marketing and sales activities. The sales agents and marketers play an essential role in this.
Services
Services are provided by the employees to the customers for their product. If customers
are facing any problem in the product the employees who are present in the stores help them to
solve their problem and satisfy their needs.
Secondary activities
This activities play supporting role in the coordinating and assist the primary activities of
the Marks and Spencer company. Company can have benefits from the secondary activities as
well
Firm infrastructure
Firm infrastructure of the Marks and Spencer company denotes range of activities like
legal matters handling, quality management, planning, accounting, financing and strategic
management (Simatupang, Ginardy and Handayati., 2018). Effective infrastructure can enable
this company to optimize the value to their value chain. Marks and Spencer company can
control the infrastructure activities the activities of firm, infrastructure to take competitive
advantages in the market.
HRM
Marks and Spencer company can also analyze the HRM through implementing some HR aspects
which includes selecting, recruiting, performance management, rewarding and other many
personal management activities. Effective Hr management in the workplace enable this
company to deduct pressure of the competition in the market through motivating their
employees and developed skills in their workforce. Hr management of the company provide

training and development to the employees I which employees get chance to increase their kill
and potential in the task. This can lead Marks and Spencer company to achieve competitive
advantages in the market.
Technology development
Every area of the value chain need support of the technology. Marks and Spencer
company need technology in their production department, so they can increase their production
and provide their product to the customers. Distribution of the product also need technology like
vehicle and all. It is important for the HRM of the Marks and Spencer company to understand
needs of technology, so they can develop and make their business more profitable. Marks and
Spencer company also using online website in which they sell their product to the customers by
taking their orders and their delivery team deliver customers product to their home. This means
technology have huge role in the value chain o the Marks and Spencer company, so they should
develop new technology to gain competitive advantages. Some of the technologies can be used
in the company are product design research and data analysis automotive software, customers
cares service technology to support customers and provide them facilities.
procurement
The procurement in the companies value chain include in the purchasing the inputs which
are range from the Raw material, equipment, suppliers and other items which are necessary to
produce goods (Das and Ghosh., 2016). Due to the link between the value chain activities, this
company carefully considers their procurement activities so the can optimize the operation,
inbound and outbound value chain. As mentioned above, the utilization of Porter Value Chain
analyses depends on understanding the importance of all activities. After understanding the
relative importance of found out value chain activities, Marks And Spencer company should
show the areas where value can be add, cost efficiency can be accomplished, differentiation base
can be set, or procedure can be optimized.
3) Summarize the information technology used by M&S company and suggestion
Marks and Spencer is emerging who are showing their presence in the global level
effectively. Information technology have huge role to make this company effective and almost
every area of the company have It technology which make operations done effectively. Here are
some technologies use by the Marks and Spencer-
Online shopping

Marks and Spencer is earning huge amount of revenue from offline stores but online
shopping site also give their contribution. Many people like top shopping sites of the Marks and
Spencer company because they get huge discount and offers. Recently company also have launch
new scrams in which people get points for their shopping, and they can use those point for their
next shopping. This is attracting customers and company is earning profitability through online
selling of products, Advantages of online side is that customers do not need to visit their online
site they can order their products and delivery team of the Marks and Spencer will delivery their
product at their home.
Artificial intelligence
Presence of artificial technology at their workplace is attracting customers to visit their
stores. This technology they have implemented in their workplace just to attract customers and
this increase the crowd in their stores (Suriyantphupha and Bourlakis., 2019). This technology
help customers to make good experience.
Billing
Marks and Spencer company is using billing machines which make bill of their product
without doing any mistake. This makes work more easy and company is providing fast services
to the customers. They are also having credit card swipe machines which helps to pay customers
bill digitally. Not every person carry cash I their pockets so this helps those people to pay their
bills through their cards and enjoy shopping.
Suggestion for Marks and Spencer
Marks and Spencer can bring newer technology in their workplace which can help them
to take competitive advantages. They can make bring inventory management software which can
help them to control their resources in the inventory, and they can also find how many resources
they need more resources to run their productivity. This is helpful, and they will have full control
over their inventory and company can earn profit through it.
CONCLUSION
As per the report has been analyses case study of Marks and Spencer company on the
basis of Information technology. This report has been provided competitive analyses of the
Marks and Spencer and this includes PESTEL and Porter's five force's. This helps to know
impact of technology on the company and how this helping them to gain competitive advantages
in the market. This report has been analyses porter's value chain analyses of the Marks and

Spencer company. In the end of the company have explained the benefits company is getting
from the Information technology and give suggestion related to the new technology.

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