Marks and Spencer Innovation Hub: A Detailed Business Report

This report provides a comprehensive analysis of the Marks and Spencer (M&S) Innovation Hub, a strategic initiative aimed at enhancing the company's product offerings and market relevance. The report begins with an introduction to innovation and its significance in business, followed by an overview of M&S's background and the context surrounding the Innovation Hub. It then delves into relevant literature on innovation, including its definition, importance, and the Diffusion of Innovation theory. The core of the report involves a critical analysis of the "Innovation Hub," examining its processes, benefits, and weaknesses. Finally, the report offers strategic recommendations for M&S to improve its innovation efforts, including suggestions for product quality, customer feedback, online presence, and international expansion. The conclusion emphasizes the importance of innovation for business success.

INNOVATION
AND ENTERPRISE

Table of Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK..........................................................................................................................................................3
Background of the business or description of situation............................................................................3
Discussing relevant literature associated with the topic...........................................................................3
Critical analysis of product “Innovation Hub”.........................................................................................5
Recommendations...................................................................................................................................6
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................8
Books and Journals:.................................................................................................................................8

INTRODUCTION
Innovation is one of the most significant concern to stay a longer in the competition of
companies. Innovation is a term which mean to improve, renew or replace something. It is
complex in nature to understand in the context of business (Andreassen, T. W. and Et.al., 2018).
Improving business processes and methods to maximize the productivity and efficiency along
with this it allows the business extend the number and quality of goods and services which are
existing. The main purpose of developing new idea or to modify the existing one, often to meet
changing customer demands and needs. For business, innovation can be a product, process,
concepts of business or combinations.
MAIN BODY
TASK
Background of the business or description of situation.
The report is going to prepare on the Marks and Spencer Groups (M&S) which is a major
British multinational retailer who is focusses in selling food products, home products and
clothing lines. It is a London based Company which was introduced in 1884 by Michael Marks
and Thomas Spencer. M&C later known as Marks’ Penny Bazar which was the haberdashery,
household goods, sheet-music, toy corporate by Michael Marks (Barro, S. and Davenport, T. H.,
2019). After that he decided to develop partnership with Thomas Spencer. Michael’s son Simon
renovated his business from a range of open-air stalls in many markets in northern England to a
range of covered shops, also he introduced a company named St, Michael. The company’s brand
known for years in the mind of customers. After that M&S overtook the company called Brooks
Brothers which was the oldest trader in United Kingdom; in 2001 it sold out. During that time in
the country it operates more than 300 retail division with additional number of stores including
Spain, Germany, France and so on. To continue the popularity of brand, the company decided to
innovate their products, services and processes. The company decided upon to launch a product
or service named “Innovation Hub”; by this it will pursue to capitalize on emerging trends such
as environmental causes, veganism and try to become more relevant to their customers.
Discussing relevant literature associated with the topic.
Meaning of Innovation: Innovation as a concept can be referred to a process in which a
company (Marks and Spencer) carry out to conceptualization brand new product, service,
process as well as ideas to approach the existing ones. It is a transformation of idea into reality.
Importance of Innovation:
 It helps to company grow: Technological innovation can be consider as a great tool of
economic growth of a company (Carpenter, D., 2020). The innovation aim is to create
ideas that maximizes productivity and make better output with equal input.
 It creates future jobs: Technological advancement and increased productivity creates
jobs for job seekers. By the change continues, there will be increase in demand for
experts and regular staff.

Diffusion of Innovation theory: Diffusion of innovation theory was introduced by E.M.
Rogers. It is one of the ancient theory of science which was invented to communicate and it
explains to particular people or social system that how over a period of time an idea or product
advances momentum and diffuses (Bonvillian, W. B., 2018). This theory is a hypothesis which
frameworks how advanced technologies and other inventions can be spread throughout cultures
and society. This theory is used to explain how and why new idea and practice should be
adopted. It is essential to understand that development of market share and this theory is
continuously recommended to the product marketing.
This theory highlights on the five categories such as:
 Innovators: Those who are ready to take risks and new ideas.
 Early adopters: Those people who are ready to try new technologies and forming their
utility in society.
 Early majority: Before average persons they are the one who are ready to adopt new
technologies.
 Late majority: These are the ones who are doubtful of change and will only accept an
innovation after it’s been generally accepted by the majority of the people.
 Laggards: Those people who think traditionally and have conservative mind set (Yu-ke,
C. H. E. N., 2018). This category is toughest to request and make changeover to the new
technologies.
People who are a combination of rural and urban society, level of society’s education or
the extent of industrialization and development are affected to the rate of innovation
diffusion. The rate of adoption may vary from society to society.
How to generate ideas for innovation?
Idea generation can be explained as a process of creating, developing and communicating
intellectual visual ideas. To make changes or to make any improvement to any product, service
or methods idea generation is a first step towards it. Generating new ideas can help an individual
to move forward without getting stuck in a task or to solve a certain problem. In the context of
Marks and Spencer Groups generating and collecting new ideas from their staffs is the best way
to discover resourceful and unspoken knowledge.
Tools and Techniques for generating ideas:
There are several tools and techniques that can help the company to generate ideas:-
 Idea Challenge: Idea challenge is a great way to form innovation where an employer
raise an issue with a hope to get creative solutions. It enables employees to develop a
specific problem and direct that to the particular audience with an intention get new ideas
and solutions (Chen, S., 2021). But before it will get started, it is important to explain
what a company wants to achieve.
 Scamper technique: It is method used to find solutions to problems and creative
thinking. It is a way of universal approach of put on creative thinking, ideas modification,

existing concepts or process. Overall aim is to put some modification to the some parts of
existing products and services.
 Brainstorm Cards: Brainstorm Cards are a useful technique that can help to determine
external factors such as advanced technologies, societal trends and regulation in the
context of Marks and Spencer Groups. With a minimum effort this will help a lot to the
process of generating ideas.
Critical analysis of product “Innovation Hub”.
Marks and Spencer’s food is launching the “Innovation Hub” which is a whole new
professional team that will concentrate on unruly innovation to form industry-leading product
and state some of the major sector-wide challenges. By spurring emerging trends, advanced
technologies and consumer vision the group will help M&S Food to lead sustainability solutions
which includes soya-alternative proteins for plant-based foods and the newest in substantial
science with reduction in plastic packaging (Edwards-Schachter, M., 2018). The nine-expert
crew covering nutrition, packaging, business development and product innovation will be
completed of existing M&S specialists as well as being augmented by the employment of new
talent to initiate its food transformation.
Process of Innovation Model:
Idea Generation: The very first step is to generate ideas which involves taking into
consideration the customers and employees ideas and thoughts at the organizational level.
Screening: In this step, all the ideas and opinions are collected but every idea get
implemented is not possible. So that screening of ideas will support in getting right choice for the
business. By evaluating risks and benefits of each idea determines the business idea feasibility.
Experimenting: After idea has been selected, the next question is will it be acceptable by
customers or they will buy at that price or not or it is suitable to them or not. All the questions
have to be answered by experiment the idea in target market (XU and Et.al., 2018). Also, if the
product is passed in the experiment it will not be introduced immediately in the market. But to
wait for the right time to launch that will increase the chances to stay in the competition.
Commercialization: When the products has passed all the previous battles then it’s to
create awareness about the product in the market. In this step, the product is demonstrated with
benefits and special characteristics in front of customers.
Implementation: This is the last step in which the idea is introduced in reality; which
includes production, selling, marketing, operation, logistics and taking feedback from
consumers.
Benefits of Innovation Hub:
 This innovative product is based on mycoprotein that is formed using a zero waste
process and to construct on its vegan range that is called plant kitchen.
 The product has number of features such as meatless sausage rolls, comfort food staples,
dairy free mac and cheese such as meatless burgers and pies.

 The company takes a great initiative to reduce the usage of plastics as they released the
plan for plastics in which they focuses on reduce, reuse and recycle plastic materials.
 They constructed an “even bigger and better food range” in which company will try to
meet the growing demand for plant based products.
 The innovation hub will feature a team of nine experts in which they try to create
industry-leading products and state some of the major sector challenges.
 The company deals in a range of products such as food, furniture, clothing, wine, home,
financial products (Lacity, M. C., 2018). Due to such services it has a very good cash
flow position. The brand awareness is also very high as it utilizes a skills of human
resources in their innovative ideas that needs new product attractive to the customers.
Weaknesses of the Innovation Hub:
 Marks and Spencer prices are very high in the market due to this reason customers don't
attract or don't take interest in to their products.
 The company have lot of rivals and a tough competition in the market.
 As the prices of raw material are not stable, the cost of main product becomes very high
and profit declines.
 The company do not get the attention of youths.
 The bargaining power of buyers and suppliers is strong.
Recommendations
 Marks and Spencer must ensure its quality rather than its price. They should come up
with the new quality range in areas of cloth, food, financial services, or home services to
achieve better customer satisfaction and better quality.
 Feedback is important for the development of company so that Marks and Spencer must
ensure to obtain customer opinion and feedback so that it will not only keeping up with
current trends but also helps to research and improvement in the quality of services
although removal of plastic is a great step towards healthy environment.
 To attract more youthful customer, a company must get it online and keeping their
existing customers happy through this platform. It will be beneficial for company that
they ensure free delivery to the customers and returns, also click and collect to serve as
many channels to market as possible. It will not only reduce its costs but also maximize
sales and enhance is competitive advantage (Liu, J. H. and Et.al., 2018, October). Online
platform is a great opportunity to promote and build customer relationship.
 The company also focus on to improve franchisees in other countries as well so that it
must be capture their market share even better in other countries with lesser amount of
capital.
 Marks and Spencer required to invest in their stores in areas such as stock availability,
serve better to their customer which maximizes the interest and values to the customers
and increases uniqueness in comparison to other competitors.

CONCLUSION
It has been concluded from the above report is that it is crucial to generate ideas from
others to a business but it is essential as well to stay in the competition and to maximize
productivity, also to maintain relationship with customers, attracting them towards innovative
product or services even with new ones or existing ones. Overall innovation is important for the
business organization because it maximize the chance to react to rapid changes and find out new
opportunities for business growth.

REFERENCES
Books and Journals:
Andreassen, T. W. and Et.al., 2018. Business model innovation and value-creation: the triadic
way. Journal of Service Management.
Barro, S. and Davenport, T. H., 2019. People and machines: Partners in innovation. MIT Sloan
Management Review, 60(4), pp.22-28.
Bonvillian, W. B., 2018. DARPA and its ARPA-E and IARPA clones: a unique innovation
organization model. Industrial and corporate change, 27(5), pp.897-914.
Carpenter, D., 2020. The forging of bureaucratic autonomy: Reputations, networks, and policy
innovation in executive agencies, 1862-1928 (Vol. 173). Princeton University Press.
Chen, S., 2021. Positive Prison for a Positive Future: How to Lead a Social Enterprise and
Promote Social Innovation.
Edwards-Schachter, M., 2018. The nature and variety of innovation. International Journal of
Innovation Studies, 2(2), pp.65-79.
Lacity, M. C., 2018. Addressing key challenges to making enterprise blockchain applications a
reality. MIS Quarterly Executive, 17(3), pp.201-222.
Liu, J. H. and Et.al., 2018, October. The Application of Virtual Reality Technology in Enterprise
Behavior Simulation System. In 2018 International Conference on Sensor Networks and Signal
Processing (SNSP) (pp. 512-515). IEEE.
XU and Et.al., 2018. The Impacts of Fiscal Subsidies and Corporate R&D on Enterprise
Innovation Performance. East China Economic Management.
Yu-ke, C. H. E. N., 2018. Retesting of “Strong Potter Hypothesis” under Fiscal Decentralization:
From the Perspectives of Enterprise Environmental Protection Innovation and Non-
environmental Protection Innovation. Commercial Research, p.01.