Case Study: Marks & Spencer's Global Business Strategies Analysis

This case study examines the internationalization of Marks & Spencer, focusing on its expansion within the retail industry. It delves into the company's strategies for overcoming challenges, including organizational performance, performance measurement, and communication with stakeholders. The report analyzes risk management, quality management, financial performance, customer and employee perceptions, and implementation issues. The analysis highlights the tools and techniques employed by Marks & Spencer to navigate the complexities of global expansion, including marketing strategies, product development, and performance management systems. The case study also explores the challenges related to financial stability, customer satisfaction, and employee perception, providing insights into the company's efforts to mitigate these issues and foster growth. The study also includes an analysis of the company's operating results and regional comparisons.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................2
Main Body.......................................................................................................................................3
Organisational Performance and Performance Measurement.....................................................3
Communicating performance to stakeholders.............................................................................4
Risk management........................................................................................................................4
Quality management and improvement......................................................................................5
Financial performance.................................................................................................................6
Customer perceptiveness.............................................................................................................7
Employees Perceptiveness..........................................................................................................7
Implementation issues.................................................................................................................8
Recommendation and improvement................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
In the present project the Marks and Spencer company has been selected. The present
case scenario is based on the internationalisation in retail industry. This case study emphasizes
on describing s the internationalization Marks & Spencer organisation which is operating in
retail industry. Report have focus on identifying the way marks and Spencer company has
successfully expanded business operations. It also emphasizes on highlighting the problems
faced by an organisation during the time of expansion. Assignment will describe the tools,
strategies or techniques adopted by firm for overcoming barriers.
Main Body
Organisational Performance and Performance Measurement
The company has to face many challenges and cope up with difficult situations which has
occurred due to dynamic business environment. There has been decrease in company sales and
stock price during the time of expansion. The cited venture has planned to appoint marketing
team for improving business performance and promoting goods or services in the international
market. Marketing team in an enterprise has forced organisation to adopt proactive strategy and
become more market driven. Objective of firm is to get brand recognise by customer in the
global market and gain customer loyalty. The company has to face many challenges and issues
related to establishing good position in the market. Business venture has faced difficulty in
identifying the location for establishing outlets and in recognising the target market. This factor
has direct effect on the financial stability of company. Many of the employees in an enterprise
has to face difficulty into adjusting into new environment. Due to the expansion activity ,
organisation has face major difficulty in maintaining the demand and supply of goods or services
which has lead to the higher level of dissatisfaction among customers (Bornman and Puth, 2017)
Marks and Spencer has planned to deliver value to customer by providing them goods or
services at reasonable price. This factor has supported organisation in attracting more numbers of
customer. It has also provided business entity an opportunity to enter into new market. The
marks and Spencer has also planned to seek support from the industry in fostering growth.
Business entity has planned to implement system or technology for checking the quality of
products. This activity has supported firm in enhancing the quality of goods or services. It has
also provided an organisation an opportunity to gain customer loyalty , increase sales as well as
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profitability. By adopting these strategies or philosophies marks and Spencer has achieved
success and has able to foster growth in global environment. The another plan adopted by
organisation such as product development strategy has help business entity in providing
satisfaction to customers. Effective marketing strategies has enabled firm to gain customer
loyalty and leave positive impression on client. Marks and Spencer organisation has also
implemented merchandise life cycle software which has supported business entity in global
sourcing initiatives. This software has also assisted an enterprise in reducing the time which will
take to introduce new products in the market (Brindley, ed., 2017)
Performance management that is essential to monitor performance progress at regular
interval of time. It means recognizing the way and when the goal will complete. In order to bring
performance to acceptance improvement is also needed. A review plan is adopted by marks and
Spencer for measuring productivity. This strategy indicates that employees have achieved the
desired targets. The information gather with these plan helps management team in ensuring that
objectives are accomplished. If in case, target in not achieved than management team can create
appropriate tactics fix the problem. Marks and Spencer has decided to enter the market which is
more competitive at price. In order to enter broad cross section of the market by introducing
products and service at low price (Brunton, Eweje and Taskin, 2017)
Communicating performance to stakeholders
The manager in marks and Spencer has used the shareholder matrix as a tool to identify
the shareholders of the company those who have high power to influence or impact the company
policies, procedures and business system. The human resource manager in marks and Spencer
has made conducted the internal audit. This activity has supported the management team in
identifying the training need by workers and in development of plan for the same. Training event
has provided management team an opportunity to share the information about business
performance. Open communication channel has allowed employees to share their ways , ideas
for improving organisational performance. Management team in an enterprise has planned to
conduct meeting at regular interval of time.
Risk management
The marks and Spencer has to face the major risk related during expansion of business
such as decrease in sales , decline in profit, legal obligations etc. All these threat are to be deal in
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appropriate manner by cited venture. As it might have negative effect on business performance
and in some cases this issues can have threat to sustainability of firm. There is high chances of
such risks as the company is dependent on the British market for sales or profitability,top
management internal orientation and corporate culture. Marks and Spencer organisation is
dependent on British market for suppliers as well as customers. This over reliance on one single
market for income may increase the chances of unsystematic risk. The dependency on buying as
well as supplying the goods or services has limited the scope of offering and restrict the
innovation. This factor has great as well as significant impact on the competitive strength of an
organisation. Corporate culture in marks and Spencer has increases the chances of risk. As
centralised and strict rules of company has always leaded to delay in decision making procedure
which can have bad consequences and sometimes organisation has to face short term losses due
to this factor. Risk is also involved in the selecting the appropriate mode of en trying into
international market. There is high political risk involved in to expanding the business in global
market. In order to avoid political risk marks and Spencer company has planned to open its own
stores and adopted the strategy to expand business through acquisition. The business entity can
also expand business through franchisee agreements (Pollanen,Abdel-Maksoud, Elbanna and
Mahama,2017)
The business entity has adopted the strategy of entering into new market. Company has
also made the appropriate strategy in order to bring changes in business structure. As this will
support management system in making quick decision for business. Modification in business
culture will help firm in taking quick actions in order to mitigate risk. Improvement in culture as
well as business system will help manager in promoting discussion which will aid firm in
identifying several risks. It will also support manager in planning for preventing risk in the future
(Raspini, Bardi and Casagli, 2017)
Quality management and improvement
The philosophy which has been adopted by marks and Spencer company is to produce
and deliver high quality of products or services. Expansion strategy designed by the manager has
diverted the focus of employee which has great impact on the quality of products and services.
However, in present scenario this philosophy has proved as ineffective and this factor has
adverse impact on business performance. This factor also had negative influence on customers
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buying behaviour and perception about organisation. The another issues that is faced by the
marks and Spencer company is related to increase in cost of production (Lee and Steers, 2017)
The marks and Spencer company in order to improve and maintain the performance has
planned to focus on five operating principles. These are business entity has adopted the strategy
to long term relationship with suppliers. As this activity has supported firm in eliminating the
negative effect of changes on operation activity as well as productivity. The management team in
an organisation has planned to develop focus on operational as well as production activities.
Organisation has planned to implement technology at workplace. This technique has help firm in
maintaining the quality of goods and services. It also has encouraged firm to attract more
number of customer by developing innovative products and provided enterprise chance to retain
strong relationship with clients. Training has been provided to workers in order to aid them in
increasing their working efficiency., enhancing the quality of work as well as imp[roving
performance at workplace. Technology has aided firm in minimising the operational cost and
reducing the wastage of resources (Ross, 2017)
Operating results and regional comparisons
America Europe
Company turnover 605 537
Operating profit 16 32
Outlets 42 52
Financial performance
During the expansion, the major issue faced by marks and Spencer is related to the
maintaining financial performance. This factor has adverse impact on the financial stability of an
organisation. The company has to face the major challenges in identifying the appropriate
sources of raising funds in global market.
GAP analysis is the tool which has assisted management team in establishing realistic
goals and as a basis for identifying the extent to which existing strategies will fail to meet
performance objectives in the future .It has supported business entity in recognising the cheapest
sources of obtaining the financial resources in global environment. GAP analysis is considered to
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be an effective tool which has assisted firm in determining the scope of increase in profit or sales
in the future. It has enabled organisation in reducing the negative effect of the changes in
economy on financial performance of company. This technique also support management team
in developing financial plan for the future. The management team in marks and Spencer has
planned to execute financial strategy \for reducing the cost of labour as well as production.
Customer perceptiveness
As per the view of marks and Spencer client, company is performing well in the market
and has able to gain customer loyalty. But customers has also stated that there are some areas
where improvement can be done. After an extraordinary amount of research over the last few
years it shows an increasing realisation of the customer satisfaction and customer focus in the
company,
Management team in an enterprise has planned rebrand few of its stores by applying
whole new concept design. As this will help \business entity in attracting more new customers.
By implementing the new merchandising techniques marks and Spencer have found a real as
well as positive change in the customers hopping environment. The marketing in an organisation
has planned to conduct research at regular interval of time. This strategy has helped an enterprise
in identifying the needs of customer and recognising the expectation of client related to products
or services.
Employees Perceptiveness
According to the view of employees working in marks and Spencer company , there are
requirement of improvement in human resource management system. As it has been identified
from the internal organisational audit, that many of the employees in an organisation is totally
dissatisfied with the changes in policies and strict rule. The effect of these factors has created
various barriers in implementation of expansion strategy. As workers were facing difficulty in
adjusting in new environment there has been increase in employee turnover rate. As every
country has different norms related to human resource management and recruiting employees.
Due to lack of knowledge, the human resource management team firm has to face difficulty in
recruiting new employees due to strict norms developed by government .As failure to comply
with employment legislation can lead to legal; obligation on company (Harwood,2017)
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The marks and Spencer company has adopted the motivational techniques for inspiring
employee to support change. In order to prevent legal obligation , marks and Spencer company
has planned to follow with the norms of the country in which firm is expanding business. Human
resource management team has adopted the strategy to hire staff from the countries in which
expansion is done (Cascio, 2018)
Implementation issues
The marks and Spencer does not have sufficient employees to cope with the commitment
and extra work required when expanding business operations. Employment management is the
major issues which can create barrier in implementation of strategy. The other factors which can
create barriers in implementation such as New Competition as well as Unfamiliar Marketplaces,
cultural comp ability, legal and political system (Hillson,and Murray-Webster, 2017)
Recommendation and improvement
It has been recommended to management team in marks and Spencer company to gain
the complete information about the market or the country in which company is planning to
expand business operations. As this will assist business entity in selecting the suitable market
and targeting the right customer. The another suggestion to firm is that, it should conduct the
market analysis before expanding business. As this will help business entity in developing the
understanding about customer needs and also support firm in determining the price of products
or services. Management team should conduct organisational audit. As this will help an
enterprise in recognising the capability of company to expand business. Marks and Spencer
company can form joint venture with global companies dealing in same industry. As this will
support business entity in gaining competitive advantage in global environment.
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REFERENCES
Books and Journal:
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Lee, T.W. and Steers, R.M., 2017. Facilitating effective performance appraisals: The role of
employee commitment and organizational climate. In Performance measurement and
theory (pp. 75-93). Routledge.
Pollanen, R., Abdel-Maksoud, A., Elbanna, S. and Mahama, H., 2017. Relationships between
strategic performance measures, strategic decision-making, and organizational
performance: empirical evidence from Canadian public organizations. Public
Management Review. 19(5). pp.725-746.
Brunton, M., Eweje, G. and Taskin, N., 2017. Communicating corporate social responsibility to
internal stakeholders: walking the walk or just talking the talk?. Business Strategy and
the Environment. 26(1). pp.31-48.
Bornman, D.A.J. and Puth, G., 2017. Investigating employee perceptions of leadership
communication: A South African study. Journal of Contemporary Management, 14(1),
`pp.1-23.
Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
Raspini, F., Bardi, F.,and Casagli, N., 2017. The contribution of satellite SAR-derived
displacement measurements in landslide risk management practices. Natural hazards,
86(1). pp.327- 351.
Ross, J.E., 2017. Total quality management: Text, cases, and readings. Routledge.
Harwood, S., 2017. ERP: The implementation cycle. Routledge.
Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude.
Routledge.
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