Information Technology's Role in Marks & Spencer's Business Strategies

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BABS Foundation UOS IIT Assignment
Assignment 2:
Impact of Information Technology on business operations of
Marks & Spenser
Student ID:<Your Student ID>
BA in Business Studies(Foundation Year)
University of Suffolk
Date of Submission:<Date of Submission>
I declare that this assignment is all my own work and that I have acknowledged all materials
used from the published or unpublished works of other people. All references have been duly
cited.
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BABS Foundation UOS IIT Assignment
Executive Summary
Information technology has a major impact on today’s organisation. This paper will focus
upon the different roles of information technologies that it helps to achieve the organisational
goals and objectives. This paper will focus upon the use of Information Technology into the
Marks & Spenser. It is one of the largest multinational retailer of UK that is been established
in the year 1884 around 135 years ago headquartered in London, UK. The company has
increased its efficiency by developing and maintain information technologies within its
business. It is now taking new ways to take various social as well as ethical initiatives in
order to increase the goodwill of The Company into the market.
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BABS Foundation UOS IIT Assignment
Table of Contents
1. Introduction............................................................................................................................3
1.1 Purpose.............................................................................................................................3
1.2 Background.......................................................................................................................3
2. Literature Review...................................................................................................................4
2.2 Information Technology and its role in retail business in general...................................4
2.3 Networking Technology, different types in general.........................................................5
2.4 Ethics and Social Issues of using technology in general..................................................6
2.5 The importance of Intranet and Internet in business in general.......................................6
3. Analysis and Discussion........................................................................................................7
3.1 Role of Information Technology in Marks & Spenser.....................................................7
3.1.1 Types of different Information Systems that are used in Marks & Spenser..............8
3.2 Types of Networking Technologies that used in Marks & Spenser.................................9
3.3 Ethics and social issues in Marks & Spenser...................................................................9
3.3 The importance of Intranet and Internet in Marks & Spenser........................................11
3.4 List and explain the different stage of system development life cycle...........................11
4. Conclusions..........................................................................................................................13
5.References.............................................................................................................................14
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BABS Foundation UOS IIT Assignment
1. Introduction
Information technologies have a fundamental influence upon the operations of the business
operations. Information technologies are been used within an organisation in order to perform
various tasks. Use of IT helps to provide the basic process of the operations of the business
such as business transactions as well as to operate diversified functions of the organisation.
This paper will focus upon the Impact of Information Technology on business operations in
context with the Marks & Spenser. It is one of the multinational retail enterprise that was
introduced by Michael Marks and Thomas Spenser in the year 1884 around 135 years ago in
London, UK (Marksintime.marksandspencer.com. 2019).
1.1 Purpose
The purpose of this report is to understand the application of Information Technology into the
business operation of Marks & Spenser. The report will identify the failure as well as the
success of the company by determining the role as an Information Technology in business.
The paper will evaluate about the social as well as ethical issues that pertains within the
company in order to facilitate its smooth functioning. The paper will identify and differentiate
between the diversified types of network technologies. The paper will also focus upon the
importance of internet as well as the intranet into the Marks and Spenser. The paper will
provide the analysis weather the different stages of the system development life cycle is
relevant for Marks & Spenser or not.
1.2 Background
The innovation of different technologies has created the use of information technologies
within the business operations. Over the years, information technology has caused an
expansion as well as exploration into the trade and commerce. Information technology has
enabled the business enterprise to increase its productivity as well as profitability and has
revolutionized the operations of the businesses.
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2. Literature Review
2.2 Information Technology and its role in retail business in general
Information technology helps the retails sector that is helpful to focus on point of sales and
supply. It is effective to focus on increasing demand forecasting and retail operations. It is
effective to focus on increasing importance and demands on establishing complex retail
operations (Nguyen et al., 2015). IT has several roles to establish the system management to
ensure the effective use of system management and marketplace through enhanced and
developed flexibility and speed. Technology is changing in establishing purchase decision
and technological establishments are significant improvements regarding customer’s focus on
development. Roles of IT in retail industry are:
Point of sale:
In recent times, customers had to stand in long lines for purchasing (Banerjee and Mishra,
2017). It is boon of technology that customer can check products and services from any place
by using smart phone with internet connection. This is possible significance that customers
can check the improvement through handheld computers, printers and scanners. It is
improved to develop the purchase decisions regarding high sales volume to eliminate the
issues in offline stores. The technological impact eliminated the long waiting and time. It is
easier to deal with establishing checkout process by technology for the customers. Payment
by RFID or NFC technology allows the customers regarding purchase with Smartphone
(Ramanathan et al., 2017).
Management of Inventory:
Practice of inventory establishes the inventory to develop and interpret the business costs and
attraction process of the customers. It is effective to choose the customers for establishing
effective customer base (Nurhayati and Hendar, 2017). Inventory management is becoming
better with using technology in recent times. It can be said that offering real-time purchase is
focused to develop the technology track and merchandise stocked. According to Popa et al.
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(2016), it is effective to focus on establishing potential base for customers. Technology is
used to track the record and store merchandise for more organised and potential development
regarding drastic decreases of offline uses.
Customer Service:
Technology changes over self-help and business saving money and excellent application of
IT in retail industry (Demoulin and Djelassi, 2016). Technology has become to increase the
customer satisfaction regarding self-help and excellent application through augmented reality.
With the technological development, business has improved and increased the sales.
Price Auditing:
Like inventory management, price auditing become as time-consuming and costly process for
businesses. It is effective to communicate the technological development to create the
necessary establishments regarding customers. Technology has become streamlined this with
automating price checking with impact of information technology (Laudon and Laudon, 2016).
It is saving time of the company’s time and money.
2.3 Networking Technology, different types in general
Several networking technologies are used generally to focus on establishing and describing
purpose of networking technologies regarding covering the handful of devices. Size and
geographical distribution depends on choosing networking technology across the entire globe
(Popa et al., 2016). There are several channels including:
 Personal area network or PAN
 Local area network or LAN
 Wide area network or WAN
 Metropolitan network area or WAN
PAN:
PAN is used around individual person in single building. PAN includes one or more
computers, telephones, entertainment devices and other devices in one building. It is typical
set up to contribute with great flexibility with laptop and desktop computers (Birkin et al.,
2017).
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LAN:
As per the view of Neubert et al. (2018), LAN consists of computer network in single site and
it is used typically in an individual and office building. Smallest LAN is used to share
resources regarding inexpensive hardware for single hubs, Ethernet cables and adapters.
MAN:
MAN is consists of computer network across the entire city. MAN is larger than LAN as it is
effective to cover the area from several middles to connect the network sites. MAN is used to
compare with designed in college campus or any bigger geographical regions (Cao, 2018).
WAN:
WAN occupies in large area. WAN can connect multiple smaller networks.
2.4 Ethics and Social Issues of using technology in general
Techno-ethics:
Ethical and social issues are focused to create new branches in technological field. Techno-
ethics (TE) is new branch to lead the research area that is drawn on theories and methods to
establish the multiple knowledge and domain in business. Recent technological advances
make life and business faster in new ways (Brea‐Solís et al., 2015). As a result of growing
ethics in technology, it is effective to develop the changing environment in technology and
addressing ethical considerations in business. Technoethical perspectives are efficient that is
faster with using effec5tiev technological impacts. Organisational ethics are important to
identify the business ethics regarding technology related issues (Nurhayati and Hendar, 2017).
2.5 The importance of Intranet and Internet in business in general
Intranets have importance regarding business tools and techniques to ensure the
communication within organisations. It is important to access the consistent development to
focus on levels of customer services and collaborative working. It s used to use the business
tool o develop the workplace and sharing knowledge (Akter et al., 2015). The importance is:
 Better internal communication for staffs
 Improved customer services to focus on engaging cust9iner services and business
development (Cao, 2018)
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 Sharing resources and best practices regarding corporate information and collaborative
working to connect staffs
 Delivering information in viewing and working with collaborate
Internet is important to focus on establishing great benefits regarding e-commerce and
business ethics to speed up the production. The business organisations use high-speed
internet and connecting the new and innovative business modes regarding online business
(Brea‐Solís et al., 2015). The importance is:
 Companies get importance regarding customer data and buying decision to create the
marketing strategies based on the analysis. Everyone is searching as new backbone for
online business.
 It helps to connect by using high-speed internet in online business (Popa et al., 2016).
 Business information is important to focus on establishing online business and searching
customer data on developing online businesses.
3. Analysis and Discussion
3.1 Role of Information Technology in Marks & Spenser
Marks & Spenser is one of the largest multinational retailers that offer it services to around
21 million customers worldwide. The company use to sell outstanding quality of clothing,
home ware, gifts, Accessories and foodstuffs. It uses to offer quite expensive but it has
managed to stand into the top 10 position in UK. The company use to provide outstanding
quality of goods as well as services in order to gain huge market share. Several roles is been
played by the information Technology within Marks & Spenser (LLP, B. 2019).
 Embracing Agile Mindset:
The use of Information Technology has helped the company to embrace the agile mindset of
the organisation and to transform its strategies of business. The company align itself with the
rapid technological growth and innovation in order to cope up with the changing business
environment. Information Technology helps the enterprise to become mire simpler, focused
as well as faster in order to achieve seamless customer experience.
 Tackling Difficult issues:
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Use of Information Technology has increased the efficiency of Marks and Spenser. It had
helped the business to tackle those parts of the business that the enterprise either never looked
for or never tackled it.
Gaining Competitive Advantage:
The use of Information Technology has helped Marks & Spenser to increase its benchmark
and to gain a competitive advantage over its rivals (The Telegraph. 2018).
 Turning business into Digital First Business:
Information Technologies has helped the business to set up five-year strategic plan in which
Marks and Spenser has objectified to turn the company into the digital first business.
Information Technology has played an important role to explore the technologies and the
company can benefit with it.
3.1.1 Types of different Information Systems that are used in Marks & Spenser
Adequate, proper as well as appropriate information systems are very much required for the
technology driven era of competition. Several information systems are been used by the
Marks & Spenser:
Transaction Processing Systems (TPS):
Transaction processing systems are been used to record the day to day activities of the
business enterprise such as sales, purchase, income as well as expenses. Marks and Spenser
use this technology so that they can record their vide range of operations.
Management Information System (MIS):
Management Information Systems helps the management to keep an eye towards the current
performance of the organisation. Marks and Spenser use this Information System in order to
monitor the sales, budgets and work force. Management Information Systems includes:
 Sales Management Systems use to get input from the point of sale
 Budgeting system provides an overview so that the organisation can make plan for their
short term as well as long-term expenses.
 Human resource management system helps the company to provide the welfare of all
the staff as well as employees.
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Decision support System (DSS):
Decision support systems help the senior managers as well as the decision makers of the
organisation to make non-routine decisions. Marks and Spenser use this information system
in order to provide frequent solutions to the unique problems. The Decision Support System
includes:
 Bank Loan Management System helps to verify credit of the applicant of loan and it
predicts the likelihood of recovering the loan.
 Financial Planning Systems helps the management of the organisation to evaluate all the
ways to adjust expenses as well as sales and finding various ways in order to achieve the
organisational goal effectively.
Online Analytical Processing (OLAP):
Online Analytical processing is been used in order to analyse the diversified as well as
multidimensional data in order to produce relevant information. Marks and Spenser use to
view the total sales of each products in the overall region and they can compare it with the
actual and projected sales.
3.2 Types of Networking Technologies that used in Marks & Spenser
Marks & Spenser uses Wide Area Network so that they can connect their system irrespective
of their physical distance. As the company use to operate in the international market this
networking system helps the organisation to facilitate its operations. The computers and the
low voltage devices of the organisation that works over the large network communicate
easily by this network technology.
The company also uses Enterprise Private Network (EPN) in order to build its own network
and to connect securely with the computer sources of the various locations.
However, Marks & Spenser operates worldwide and in order to increase its capacity of
Network it has introduced a new ability to amalgamate the voices as well as data networks.
The organisation has rolled out Cable as well as wireless IP based VPN (Virtual private
Network) to its outlets in order to link all its stores. The introduction of voice networks rather
than the existing IP networks will helps the organisation in many ways.
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3.3 Ethics and social issues in Marks & Spenser
Several issues have arisen within the Marks & Spenser regarding Ethical as well as social
issues.
Criticized for workers Violations:
Marks and Spenser was criticised for violating the rights of the workers. According to the
several public declarations, the factories that produce clothes of Marks & Spenser in the
countries of India, Bangladesh and Sri Lanka were paid less and the workers were not able to
fulfil their daily basic needs due to their less income. The workers use to receive half of their
healthy living wage in each of the regions (The Independent. 2017).
Poor Stores:
The Marks and Spenser’s stores are lacking proper maintenance and they look shabby and
outdated. This leads the customer to go at those stores as they are too big to navigate and are
shabby (Wood and Butler, 2018).
Found buying from highly polluting factories:
Tough the competition is very high the company Marks & Spenser was found buying
products from the highly polluting factories from Asia. The polluting factories turned the
rivers black, contaminated the drinking water and increased the risk of cancer into these
countries. Marks & Spenser is a very large multinational company it should take environment
friendly initiative but it was focusing upon generating profits and increasing the pollution by
paying these factories.
Weak Consumer confidence:
Marks and Spenser has continued weakening its consumer’s confidence for which the
consumer are not purchasing more. Due to the declining ethical as well as social behaviour of
the company the customer are declining their sales. The consumers are not gaining
confidence upon the products as well as the services of the company.
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Figure 1: Shrinking sales of Marks & Spenser
(Source: BBC News. 2019)
3.3 The importance of Intranet and Internet in Marks & Spenser
Importance of Intranet in Marks & Spenser
The Marks & Spenser has dressed up their Intranet through re-launching it. The Intranet has
increased the reliability and the functionality of the organisation. It has the ability to measure
accurate business strategy. Intranet has helped the company to consult the users and the
company spend quite enough time in order to understand their situations. The Intranet has
increased the comfort-ability of the business in order to change its practices, policies,
procedures into better options. Intranet is very important for the company as with its use the
company use to simplify the navigation and introduces diversified products as well as
services to the customers.
Importance of Internet in Marks & Spenser
Marks & Spenser is well aware of the increasing and innovative technologies and it makes
the best utilise of the latest technologies. The company has focused upon bringing the age of
Internet to the stores. The company has used Internet in order to do E-Commerce business
and to outreach the diversified customers all over the world. Internet plays an important role
in merging the world into new shopping experience. With the help of internet now, Marks &
Spenser has increased the high standard fashion consciousness among the customers. Internet
helps the company to invite the customer to browse their sites as well as buy from it.
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