LSBM100 - Marks and Spencer: Business Environment Analysis Report

This report provides a comprehensive analysis of Marks and Spencer (M&S), a British retail company. It begins with an introduction to the company, its products, and services, followed by an examination of its competitive environment using Porter's Five Forces model. The analysis delves into the threat of new entrants, bargaining power of buyers and suppliers, the threat of substitution, and competitive rivalry. The report then applies Porter's value chain framework to assess inbound logistics, operations, and outbound logistics, highlighting key activities contributing to M&S's performance. Furthermore, it explores the role of information technology (IT) in improving business processes. The conclusion summarizes the findings, emphasizing the importance of understanding the business environment and leveraging IT for enhanced operational efficiency and strategic advantage. The report is based on the provided assignment brief and includes a table of contents, references, and other necessary elements.

Report about Marks and Spenser analyse
the internal and external business
environment and assess the role of
information technology IT in enabling the
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Information about company and its product and services......................................................3
Analyse the competitive environment....................................................................................4
Analyse inbound logistics, operation and outbound logistics................................................7
Role of information technology in improving business process............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
It is necessary to analyse company's different component of business in respect to receive
improved and effective judgement of organization (Prajogo, 2016). Business environment consist
of several elements that would actually has either indirect or direct influence of organisation.
Environment of business is classified into two parts such as internal and external factors.
Analyse of different factors and elements will help in taking better decision for organisation.
This report is founded at Marks and Spencer company. The enterprise is British company which
is performing its business task in retail sector. Marks and Spencer group Plc is one of the major
fashion retail organisation that is conducting task in multi nations. In this report detailed
background information about respective company is analysed. It consist evaluation of Porter's
five force theory in respect for analysing competitive environment. Apart from this Porter's value
chain framework is identified for determining key valuable activities of business. This report
consist of impact of information technology on enhancing performing and process of business.
MAIN BODY
Information about company and its product and services
Marks and Spencer is a best known British company that is offering various kind of
fashionable services or products to consumer (Saleem, 2015). Such company is dealing with
retail market sector and its key products are cloths material, footwear and other accessories.
Marks and Spencer is considered as leading company in British market area. This organisation is
bringing high quality products of clothing and home ware as well as offering great value food
commodity. Marks and Spencer has millions of customers all around the globe. M&S
organisation had constituted at 1884, the founder of such enterprise is Michael Marks and
Thomas Spencer. This institution has acting its enterprise functions in contrary region of various
places in globe. Headquarter of respective organisation is located in London market area of
United Kingdom. Marks and Spencer company has more the 1400 stores that is located in approx
57 counties of the world. Respective company has more than 50 international websites that is
helpful in enhancing sales of its products. The business have formed its brand picture through
production of good attribute products as well as facilities to large number of customers. This
company has archives its vital asset of business which is over 70,000 historical items. Respective
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company is performing its business task from approx 130 years and its has expand its market
area from Penny Bazaar to different international market area.
Marks and Spencer company is offering contrasting form of services and products to
larger number of clients. The administration has valuable products that is helpful in attracting
customers as well as meeting with the wants and needs of consumer. This has developing and
offering products from women, men as well as kids. Key product range of Marks and Spencer
company include article of clothing, shoes and other footwear products as well as trending
accessories for styling. It also includes furniture and home products for decoration. Marks and
Spencer company consist of beauty and cosmetics products as well as offering different types of
foods products. Specific aim of Marks and Spencer company has to produce and develop broad
attribute valuable products with respect to connect with customer requirements. The main
objective of respective company to develop strong relationship with customer as well as gain
trust. This would assist in making powerful class picture or brand value. The core purpose of this
company comprise in enhancing lives every day by providing top quality products and services.
Mission and vision statement respective business are discussed below.
Mission – It mission statement includes development of aspirational quality products and
services which is accessible to all.
Vision - Marks and Spencer vision statement consist of setting the standards of quality products
in market area for measuring other products.
Analyse the competitive environment
Competitive environment can be describe as dynamic surrounding where business is
playing various company's system (Erasmus, Strydom and Rudansky-Kloppers, 2016). This
enterprise environment consist of various strong competitors and rival organisation that is
offering their services and products at same industrial place. Marks and Spencer institution are
handling extremely competitor situation and this would result to has straight as well as mediated
effect on enterprise and its operations. Moreover, such practice is necessary to organisation for
analysing and also to evaluate different factors of competitive surroundings in context to receive
good judgement with overall growth and development of company. In order to analyse different
element of such company, outer company's surrounding needs for analyse porter's five force
theory. It has considered as an effectual theory that would aid in examining various forces of
agonistic market area. Such theory indicates such impelling tool which would assist in analysing
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different forces of organisation. It include five forces that will support in analysing competitive
strategies of company with respect to receive wide judgements. Different units of such theory is
mention below in detail. Threat of new entry - Marks and Spencer institution has handling with fashionable
wholesale sphere that includes various companies. In this industry there are many new
companies introducing the services and product in context to influence large clients.
Warning for new entry will have impact over market share as well as customer base of
company. Given company is a well known organization which is offering their products
for many years. This lead to decrease the threat of new entrant company and its products.
Respective institution has developing advanced attribute of services and products that is
able to meet with the wants and need of clients (Mathooko and Ogutu, 2015). Any new
entrant company will not be to match with the brand image of Marks and Spencer
company as it has develop very strong value in market. So threat of new entrant force
would result in having reduced outcome on performance as well as profitability of
respective company. This company should take advantage of economies of scale in order
to resolve the new entrant issues as well as enhance market value. Bargaining power of buyers - This organization is developing services and products as
per the needs and requirement of customers. Marks and Spencer organisation has
contributing their creation for assorted types of customer in all over the world. It has been
identified that this company has large customer base all around the world. So from this it
can be determined that individual bargaining power will not lead to have major impact on
Marks and Spencer business. This company is dealing with large number of buyers and
bargaining power of its buyers would result in have outcome on company and its
decisions. So, bargaining power of buyers forces would result in having high outcome
over such organisation. In order to reduce the affect of powers bargaining power,
respective company needs to provide various discounts and other offers to customers.
This will help in enhancing sales as well as profitability of company. Bargaining power of suppliers – Marks and Spencer company needs to have collect
different raw martial from different suppliers in order to develop product and services.
There are large number of suppliers in respective industry that is helpful in provided
organisation in forming various products. This would support in meeting with the need
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and wants of customers. Large number of suppliers in market area will lead to moderate
impact on bargaining power of suppliers. They are essential part of respective company
as raw martial provided suppliers will help in manufacturing high quality products (Zhao
and et.al., 2016). Suppliers of Marks and Spencer company will support in timely
delivery of products to targeted customers. In order to reduces the impact of suppliers
respective company needs have multiple suppliers supply chain network. This would
result in having reduced outcome of bargaining power over organisation. Threat of substitution of product – There are various companies that is dealing in same
market area as well as providing smilier type of products and services. Marks and
Spencer organization has contributing high quality services and products which is very
various from substitution products and services. This company is develop strong brand
image in market area in which lead to reduce the impact of substitution of products. So it
has been analysed that threat of substitution products and services would result in having
medium outcome on performance of Marks and Spencer company. For reducing the
impact of this force respective company needs to focus on developing products and
services that is able to full fill customers requirement.
 Threat of competitive forces - There are various competitive companies that is
performing its business activities in same market area (Takata, 2016). It is essential to
analyse as well as evalute all rival companies in order to develop better strategies for
respective company. Marks and Spencer business is performing its operation is highly
competitive business environment that will lead to have direct impact on its profitability.
The major rival companies of respective organisation are H&M, Next Plc and so on.
Strategies as well as products of these organisation will lead to have impact over
company. This forces will lead to have high impact on growth and development of
business.
Thus, it has been determined that there are various forces in business environment which
will have high impact on sales as well as performance of company. Threat from rival companies
and bargaining power of buyers are the major forces that will have high affect on business
performance. Where as bargaining power of suppliers and threat from substitution products will
have moderate impact on business. Threat from new entrant company will lead to have low
affect on Marks and Spencer company.
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Analyse inbound logistics, operation and outbound logistics
There are various activities of company that is helpful in development of products of
respective company (Takata, 2016). This is very essential for the respective organisation to
identify and to analyse inbound logistics, operation as well as outbound logistics in order to
enhance performance of business. In bound logistics includes all those resources that is
requirement of development of products. Outbound logistic can be refer as all those activities of
company that is required for selling developed products. Operation consist of various task and
activities that is required for development of products. outbound This consist of major activities
of company that helpful in performance of business task as well as accomplishment of objectives
of organisation. In order to accomplish it, respective organisation needs to analyse Porter's value
chain analysis model. It is a useful framework that will help respective company take better
decision as well as grow business (Klofsten and et.al., 2015). Porters value chain model consist
of two various activities like supportive and primary. Both of these two activities are classified
into several parts which would be helpful in performing activities of business in more effective
and efficient manner. Different activities of primary and secondary is discussed here.
Primary activities
This consist of all those activities that is directly related to development of product as
well as selling it in market area. Primary activities of Marks and Spencer company will help in
collecting of raw material to development as well as selling of product. Different elements of
primary activities includes. Inbound logistics – In this respective company will collect and receive raw materials for
manufacturing products. Inbound logistics consist of storing and receiving of inputs from
supplier. Operations – Once respective company has collected all input resources then company
will focus on converting raw material into finished goods (Lee and Tang, 2018). In
operation activities of Marks and Spencer company high quality products are developed. Outbound Logistics – This consist of delivery of manufactured products of respective
company to targeted market and customers. In outbound logistics organisation will
gather, store and distribute products in market place. Marketing and sales – This is consider as crucial activities of respective company as this
will help in attracting large number of customer as well as increase sales of products.
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Marketing and sales activities of Marks and Spencer company will help in
communicating qualities as well as features of products to customers.
 Services – This includes all those services of company that is helpful in maintaining the
value of company. Services offered by respective organisation is help in developing
strong market image.
Supportive activities
This includes all those activities or functions of organisation that is providing support to
primary business activities. Supportive activities of Marks and Spencer company would be
capable of conduct task and activities in efficient and effective way. Firm infrastructure – This includes all those system and function of company that
provide support (Taylor, 2017). Marks and Spencer company includes high support
system that is helpful in maintaining the day to day activities of organisation. Firm
infrastructure includes legal functions, general management and so on. This will help in
performing different activities in effective manner. Human resource management - This refers to the way in which organisation is
conducting various business tasks company is performing business activities as well as
accomplishing goals. There are different elements of human resource management that is
supportive in managing performance of company. This includes recruiting and selecting,
training, motivating employees. This will help in performing task and activities in
effective and efficient manner. Technology development – Technology play a vital role in growth and development of
the organisation (Porter and Kramer, 2019). This activities of Marks and Spencer is
related to management of business activities as well as performing task in efficient and
effective way.
 Procurement – This includes the process of organisation in which is collecting of
required resources of organisation. Procurement activities of refers to various activities
though which respective organisation would be able to create high quality products and
services.
There are various key actions of the company which will help in conducting various
activities of organisation in efficient and effective manner. The major quantity adding activities
of Marks and Spencer company includes human resource activities, marketing, inbound,
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outbound as well as operation. All of these activities are helpful to perform operations in a better
way as well as accomplishment of desired goals and objectives.
Role of information technology in improving business process
It plays a major role in bringing development and growth of a business. I have analysed
that organisation must introduce creative and innovative technology in its business operations
company should use new and innovative technology in its business process so that task and
activities could be completed in effective and efficient manner (Schwalbe, 2015). Information
technology refers to the business activities that is helpful in conducting business process in better
way. With the help in new and innovative technology in company set aims and goals could be
accomplished. Information technology consist of various elements and aspects that would be
beneficial in acquiring over other rival companies. I have identified several impact of data
technology in Marks and Spencer company that is supportive in accomplishment of desired
goals. Role of information technology on respective company is mention below in detail. Securing information – Information technology will help in keeping company data as
well as information safe. It is significant for respective organisation to apply innovative
as well as updated technical practices in its business concern process so that this
company could keep important information and data safe from other rival companies
(Marchewka, 2016). This will support in creating and developing safe and secure
environment as well as maintaining sensitive information with in company. Operations cost – It has been analysed that modified and innovative technology will lead
to have influences on organisation as well as its operations and its cost. With the help in
high technology in business respective organization will be capable to conduct enterprise
activities and operations in better and effective manner. Through this respective company
will be conduct task with less operating cost of enterprise and accomplish of set targets
and objectives. Effectual communicate – It is necessary for Marks and Spencer organization to consider
more advance as well as updated technical practices in its organisational process as
thought this employee will be able to communicate in effectual way. It has been
determined that various methods or approaches needs to be used by respective
organization with the motive of communicate improved manner. By communicating
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effectively respective company will be able to improve the overall performance as well as
productivity of organisation. Organisational productivity – Information techniques plan of action a critical function in
whole productivity of respective organization. I have analysed that Marks and Spencer
company can be considered as capable of conduct business task in better way so that
employees is also considered as capable of conduct work in effectual as well as
appropriate way.
 Enhancing customer base - This organization is playing as well as conducting its
enterprise operation in various regions that is located all over the globe (Schnoll, 2015).
Information technology will support in conducting different activities of organisation in
effectual way. This will direct the to have major impact complete growth of customer
base. With the help of new and advance technology Marks and Spencer organisation is
capable of increase revenues as well as sales of organisation.
CONCLUSION
From the above report it have been analysed that there are different component of
enterprise situation that will lead to have major effect on business as well as its structure. It is
essential for an organisation to analyse as well as evaluate different factors in order to perform
various task in effective manner. This will aid in analysing the impact of competitive forces on
business and its products or services. Porters five force is an effective model that will help in
identifying as well as analysing various external forces of competitive business environment.
This will help in development of business strategies in such a manner that company will be able
to gain competitive edge over other companies. Porters value chain model consist of primary
and supportive activities that is helpful in conducting different activities of business. It has been
determined that information technology will lead to have major impact on growth and
development of business.
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REFERENCES
Books and Journals
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economics. 171.
pp.241-249.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management.
Zhao, Z.Y. and et.al., 2016. Competitiveness assessment of the biomass power generation
industry in China: A five forces model study. Renewable energy. 89. pp.144-153.
Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on
business performance: An empirical analysis of Japanese manufacturers from 2009 to
2011. Journal of Business Research. 69(12). pp.5611-5619.
Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on
business performance: An empirical analysis of Japanese manufacturers from 2009 to
2011. Journal of Business Research. 69(12). pp.5611-5619.
Klofsten, M. and et.al., 2015. Success factors in cluster initiative management: Mapping out the
‘big five’. Industry and Higher Education. 29(1). pp.65-77.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management Science.
64(3). pp.983-996.
Taylor, P., 2017. The Globalization of Service Work: Analysing the 12 Transnational Call
Centre Value Chain. Working life: Renewing labour process analysis. p.244.
Porter, M.E. and Kramer, M.R., 2019. Creating shared value. In Managing sustainable business
(pp. 323-346). Springer, Dordrecht.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Marchewka, J.T., 2016. Information technology project management: Providing measurable
organizational value. John Wiley & Sons.
Schnoll, H.J., 2015. E-Government: Information, Technology, and Transformation: Information,
Technology, and Transformation. Routledge.
Online
M&S INTERNATIONAL. 2020. [Online]. Available
through:<https://corporate.marksandspencer.com/aboutus/mands-international>.
Marks and Spencer. 2020. [Online]. Available through:<https://onpurpose.org/en/our-
community/marks-and-spencer/>.
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