Managing Information and Technology Report: Marks and Spencer Analysis

This report provides a comprehensive analysis of Marks and Spencer (M&S), a multinational retail company. It begins with an introduction to M&S, including its history, background, and products and services. The report then analyzes the competitive environment using Porter's Five Forces model, assessing the bargaining power of customers and suppliers, industrial rivalry, the threat of new entrants and substitutes. It examines M&S's inbound, operations, and outbound logistics, highlighting key activities. Furthermore, the report delves into Porter's Value Chain, identifying key value-adding activities. Finally, it explores how M&S could leverage information technology and innovative ideas to enhance its competitive position in the retail market. The report concludes with a summary of the findings and supporting references.

Managing Information
and Technology
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Introduction about Marks and Spencer...................................................................................3
Background information about Marks and Spencer...............................................................3
Discuss products and services of Marks and Spencer............................................................4
Analyse the competitive environment....................................................................................4
Analyse inbound logistics, operations and outbound logistics...............................................7
Analyse any two support activities in Porter's Value Chain of Marks and Spencer..............8
Identify key value adding activities with justification...........................................................9
Business could deploy information technology, innovative idea for enhancing competitive
position.................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
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INTRODUCTION
Information technology is considered as a tool which foster innovation in business.
Through innovation, an organisation able to gain numbers of benefits such as they can develop
smart application, fast processing, enhance data storage, help in distributing information and so
on. In a company innovation technology play a major role in data management, R&D, sales,
marketing, communication, customer interaction, logistics and so on (Bryson, 2017).
Organisation selected for this assignment is Marks and Spencer which is operating in retail
industry. It was founded by Michael Marks and Thomas Spencer in 1884. They are operating at
the worldwide level. Topics included in this report are about a detailed information of company
including its background, products and services. It will also include analysis of competitive
environment, logistics, operations and outbound logistics as well as report also describe about
porter's value chain along with key value adding activities.
MAIN BODY
Introduction about Marks and Spencer
Marks and Spencer is British retail store which is operating at the multinational level. It
was established in Leeds, United Kingdom. Its head office is located at London, United
Kingdom. They are operating at the worldwide level having approx 1463 locations. Marks and
Spencer is listed on the London Stock Exchange as well as it is also constituent of FTSE 250
Index. Currently respective retail company has more than 959 stores across the United Kingdom
that include nearby 615 store which only sell food and drinks products. There are approx. 80,787
employees are working at Marks and Spencer London till 2018 (Campos, 2016). The main
purpose of Marks and Spencer is to serve as a general store which caters lower upper and middle
class people. They want to offer quality products range which are segmented into foods, clothing
as well as home décor. Moreover, mission of Marks and Spencer is to develop standard of high
quality performance in order to satisfy customers by providing quality products and services at
the potential marketplace.
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Background information about Marks and Spencer
Marks and Spencer was established through partnership among Michael Marks and
Thomas Spencer. Michael Marks was a polish Jew who born in Slonim and he is migrated to
England, United Kingdom in year 1880. Thomas Spencer was a cashier at the English market
town of Skipton, North Yorkshire. After coming at England, Marks joined organisation in Leeds
named Barran. In 1894, Marks acquire a permanent stall in the Leeds market after that he invited
Spencer to become his business partner. After that 1901, Marks moved to Birkenhead which is
open market as well as at this place he amalgamated his business along with Spencer (Castillo,
DePasquale and et. al., 2017). At 24th February 1923, Marks and Spencer left the market of
Birkenhead. In 1973 respective company expanded its business operations and functions at
Canada market. After that in 1988 Marks and Spencer acquired two big companies i.e. Brooks
Brothers which is an American Clothing store and a US food chain named Kings Super Market.
Discuss products and services of Marks and Spencer
Marks and Spencer offers high quality clothing, food products and home products at the
worldwide level. There are numbers of sub brands through which Marks and Spencer offers their
products and services such as Per Una, Rosie, Autograph, Blue Harbour, Limited, Marks and
Spencer Collection, Marks and Spencer Energy and so on. Along with this, they also have a
subsidiary i.e. Marks and Spencer band which is owned by HSBC band since 2004. Marks and
Spencer offer wide range of clothing, footwear, jewellery, food products for kids, women as well
as men. For female they offer wide collection of belts, hats, shoes, bags, designer fashion
garments, scarf, night clothes, bags, umbrellas, lingerie’s and many more (ABOUT US, 2020).
Similarly, Marks and Spencer offer huge range of products for men and kids such as bags, belt,
shoes, coats, cloths, dresses, hats and so on. Along with this they also offer both formal as well
as informal wears. Moreover, Marks and Spencer also offer other services such as international
brand, M&S bank, M&S energy and so on.
Analyse the competitive environment
Competitive environment is determined as dynamic external system through which a
company competed as well as functions according to their set goal. If there is huge numbers of
sellers of similar products and services, then company will competing in huge competitive
marketplace or environment. Where there is less seller of any specific product and services then
a firm will gain competitive advantage which help them in gaining high profitability and market
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shares from potential marketplace (Evans and Price, 2017). For example, clothing company
faced huge competition at the marketplace because there are numbers of other clothing firm who
offer similar variety of cloths. Along with this they also faced competition from both local,
national as well as international clothing firms. In respect of Marks and Spencer they are
conducting their business at the multinational level due to which they face wide competition
from local as well as international retail companies. In order to determine competitive
environment a company may adopt different model or theories. For conducting analysis of
competitive environment Marks and Spencer may adopt Porter's five forces model, which is
defined below: -
Porter's five forces model
Porter's five force model is developed by M. Porter in the year 1979. It is considered as
method or tool which is adopted by an organisation in order to analyse their competition of their
business as well as it also help in identifying strategies for the potential profitability (Fernandez
and Chiambaretto, 2016). It is essential for companies to adopt Porter's five force model as
through that they can determine strategies in order to avoid impact of forces on its business
profitability as well as market shares. Respective model include five key forces which are
competitive in nature and they affect industry. In respect of Marks and Spencer by implement
Porter's five force model they able to analyse their competitive environment in effective manner
as well as it will also help them in developing effective strategies. Explanation of different key
factors of Porter's five force model are given below:-
 Bargaining power of customers: Through this force power of customers or buyer at the
marketplace can be determined. If the power of customer will be high then they can
demand for high quality products at the low price whereas their power will be low then
they have to pay more amount for low quality products and services (Porter's Five
Forces, 2020). In respect of Marks and Spencer, bargaining power of their customer is
moderate because they have both huge loyal as well as normal customers. Customers who
are loyal use respective company credit card and loyalty card but there are some buyer
who easily switch to another retailers like TESCO, NEST Plc., John Lewis and so on .
 Bargaining power of suppliers: This key force help in determining power of suppliers
of a company. If suppliers have strong bargaining power they can offer or provide low
quality resources or material at the high price whereas if the power of supplier is low
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them they have to offer quality material or resources at the low price. When there is few
suppliers and many buyers then the power of suppliers will be high (Joshi, 2018). In
respect of Marks and Spencer bargaining power of suppliers is both high and low. In
context of technical as well as specialized products respective company face high power
of suppliers. On the other hand in term of foods as well as cloths suppliers faced low
power at the market place.
 Industrial rivalry: This force help in determining competition at the specific industry as
well as through it profitability level of industry can be evaluate. If there is huge number
of competitive companies at the marketplace then industry rivalry will be high whereas if
there is high entry and exit barriers then less competitive company operate in same
industry which show low threat (Khalifa and Ali, 2017). In respect of Marks and Spencer,
there is less threat of competitive rivalry because there is no main competitors who
provide similar products and services. Along with this respective company also provide
huge range of clothing, food and home décor for men, women and kids through which
they can gain competitive advantage.
 Threat of new entry and exit: Through this force a company can determine that how
easy any new firm can entry or exit into the specific industry. If a particular industry is
profitability as well as there is low barriers to entry or exit then threat of entry and exit
will be high. Whereas if there is strong barriers then threat of new entry and exit is high.
In respect of Marks and Spencer, they are operating at retail industry and it is a well
known and established house hold brand at the United Kingdom market. They are also
operating at respective industry from long time due to which they have strong market
shares as well as goodwill (M&S Five forces model, 2020). So it can be determined that
threat of new entry and exit is moderate for Marks and Spencer because it is not easy for
every new firm to be competitor of such a big brand.
 Threat of substitutes: According to respective force, it can be threatening when
customers can easily find any substitute products and services of a company as well as
that can be at less price or of a better quality. In order to avoid this an organisation need
to come up with unique and attractive products and services which substitutes is not
available at marketplace. In respect of Marks and Spencer, threat of substitute product is
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high because there are numbers of other companies who offer similar kind of products at
the reasonable price.
By above analysis it can be justify that Marks and Spencer have moderate competitive
environment which mean at some forces they are gaining benefits whereas at some forces they
have threat which may impact on their business performance. So it is essential for respective
company to develop new, unique and attractive products i.e. clothing, foods and home décor as
that will help them in attracting more and more customers. Along with that it will also encourage
them to purchase their products immediately because through that they able to increase their
profitability as well as market shares effectively.
Analyse inbound logistics, operations and outbound logistics
 Inbound Logistics: It refers to factors which include several elements such as sourcing,
expediting, storage, transporting as well as receiving goods which are coming into a
business (Khan, Flanagan and Lu, 2016). This will generally focuses on the
transportation as well as storage of goods and service which are incoming. In respect of
Marks and Spencer, they need to adopt quality control factors as that will help them in
maintaining quality of goods from starting i.e. manufacturing till end i.e. delivering
products to customers. By adopting this approach respective company able to get
opportunity which will help customers in getting quality food, clothing and home décor
products. This also provide high value to the money of customers as well as it will also
minimise additional cost in products.
 Operations: It is considered as function which is related to managing of inner works of a
company or business so that it can be conducted effectively as possible. At this function
an organisation make as well as sell products or offer services to potential and targeted
customers of business. It is also considered as second level of value chain model in a
company. In respect of Marks and Spencer, it is essential for them to perform their
operations in effective manner as that will help in fulfilling need and demand of
customers successfully. Along with this, they also need to emphasis on implementing
new, unique and innovative approach at workplace as that will enhance performance of
employees.
 Outbound Logistics: It is considered as procedure of transporting, storing and
distributing products and services to potential customers according to their need, demand
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and expectation (Maetzler, Klucken and Horne, 2016)). Generally this model or process
start when customers conducts sales order then it moves to warehouse packing and at last
it ends with delivering of products and services to customers. In respect of Marks and
Spencer, their management need to design attractive and innovative outbound logistics
which include safe and attractive packaging, less delivery time and many more. This is so
because it will help respective company in providing quality as well as with damage
products to their potential customers that help in satisfying their need, want and
expectation.
Analyse any two support activities in Porter's Value Chain of Marks and Spencer
This model is developed by Michael Porter in year 1985. Value chain analysis is
considered as strategic tool which is used by a company in order to analyse activities conducted
inside the firm (Pattinson and et. al., 2017). These activities are determined as source of cost as
well as differentiation advantage. It will also help an organisation in gaining competitive
advantage at potential marketplace. Value chain model activities are divided into two activities
i.e. primary activities as well as secondary activities. There are numbers of activities which are
included in value chain model such as maintaining firm infrastructure, human resource
management, development of technology, procurement and many more. Marks and Spencer
adopting Porter's value chain model in order to determine competitive advantage against Next,
Aldi, John Lewis Partnership, TESCO and so on. Below explanation of two support activities of
Marks and Spencer are given below:-
Two secondary activities of Marks and Spencer
 Human resource management: This will include activities like hiring, training,
developing, recruiting, compensating, motivating and many other activities. By
conducting this activity an organisation able to enhance performance of their worker
which directly help them in attaining desire goal as well as objective. In respect of Marks
and Spencer, their human resource manager need to recruit, hire, develop, motivate and
so on. This is so because through this they able to conduct their work in effective as well
as efficient manner.
 Procurement: It refers to acquisition of inputs or resources of an organisation in order to
desire result and objective. Along with this it will also help a company management to do
their business operations and functions in effective manner so that they can perform
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properly for attaining outcome (Pearlson, Saunders and Galletta, 2019). In respect of
Marks and Spencer, they need to develop as well as maintain effective procurement
activities as that will help them in attaining their goal by providing quality services to
customers.
These are main two support activities which are necessary to be conducted by Marks and
Spencer because through that they able to manufacture quality products i.e. clothing, foods and
home décor. Moreover this will also help in satisfying customers need, demand and expectation
in effective manner.
Identify key value adding activities with justification
Value adding activities are those activities or action which enhance benefit of specific
products and services to potential customers (Rauscher, 2017). For a company it is necessary that
they must conduct analysis and determine which activity add value to their products so that they
can satisfy need as well as expectation of customers. In context of Marks and Spencer, key value
adding activities are given below:-
 Marks and Spencer must introduce new as well as innovative design on the regular basis
because that will help them in attracting customers as well as it will also increase their
loyalty. This can be beneficial for all i.e. companies, employees and customers such as by
providing quality services customers able to increase their market value as well as it will
also motivate employees which increase their performance. Along with this, it help
customers in getting new, attractive and trends clothing, foods and home décor that are
value for their money.
 Marks and Spencer must increase their promotional activities because through that they
able to attract more and more customers from all level i.e. local, national and
international. This will also help company in increasing their profitability, sales and
market shares at the potential marketplace (Ustundag and Cevikcan, 2017). In addition to
this, Marks and Spencer may adopt different promotional techniques such as digital
media, social media (Facebook, LinkedIn, Instagram and so on).
By considering above mentioned value added services Marks and Spencer able to provide
quality services to their customers which help in fulfilling their need, demand and expectations
in successful manner.
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Business could deploy information technology, innovative idea for enhancing competitive
position
There are numbers of information technology and innovative ideas which Marks and
Spencer can adopt in order to gain competitive advantage at the potential marketplace. From
which some main points are given below:-
 Respective company can design cloth which have in built sensors for collecting medical
data. This is so because through that they able to show their concern toward customers
which increase their brand value as well as customer's loyalty.
 Marks and Spencer can also install woven in touch sensors which used to control phone
through that they able to make life of customers more easy (Joshi, 2018). Moreover it
will also help them in attracting huge customers as well as it will also help in increasing
market value which lead to enhancement in sales and profitability.
 Respective company can also use technology which help in developing fabric which
harvests energy as that will help in improving customers health. Through this Marks and
Spencer able to increase sales and market value.
Moreover, by adopting all these advance technology and innovative idea Marks and
Spencer able to attain competitive advantages in successful as well as effective manner.
CONCLUSION
From above discussed point it can be analyse and summarise that now a day for each and
every company it is essential to adopt information technology because through that they able to
conduct their business operations and functions in effective manner. In order to implement
information technology at workplace in effective manner company need to conduct numbers of
activities such as conducting deep analysis of company along with their background as well as
products and services. Along with this an organisation also need to conduct competitive analysis
and for that they can use porter's five force model because through that force management can
determine their level at competitive marketplace. Company also need to conduct analysis of their
business operations and functions for that they can adopt porter's value chain model in which
they need to analyse both primary and supporting activities. They also need to analyse whether
business can deploy information technology or not.
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REFRENCES
Books and Journals
Bryson, J., 2017. Managing information services: a sustainable approach. Routledge.
Campos, J., 2016. Managing the information systems in the industrial domain. Cogent Business
& Management. 3(1). p.1180967.
Castillo, F., 2016. Managing information technology. Springer.
DePasquale, N. and et. al., 2017. The psychosocial implications of managing work and family
caregiving roles: Gender differences among information technology
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Evans, N. and Price, J., 2017. Managing information in law firms: changes and
challenges. Information Research: An International Electronic Journal. 22(1). p.n1.
Fernandez, A. S. and Chiambaretto, P., 2016. Managing tensions related to information in
coopetition. Industrial Marketing Management. 53. pp.66-76.
Joshi, K., 2018. Managing Information Asymmetry Risks Using Deal Syndication and Domain
Specialization: An Indian Context. Asian Journal of Innovation & Policy. 7(1).
Khalifa, G. S. and Ali, E. H. M., 2017. Managing drivers and boundaries of information
technology risk management (ITRM) to increase Egyptian hotels market
share. International Journal on Recent Trends in Business and Tourism. 1(1). pp.12-31.
Khan, K. I. A., Flanagan, R. and Lu, S. L., 2016. Managing information complexity using system
dynamics on construction projects. Construction management and economics. 34(3).
pp.192-204.
Maetzler, W., Klucken, J. and Horne, M., 2016. A clinical view on the development of
technology‐based tools in managing Parkinson's disease. Movement Disorders. 31(9).
pp.1263-1271.
Pattinson, M. and et. al., 2017. Managing information security awareness at an Australian bank:
a comparative study. Information & Computer Security.
Pearlson, K. E., Saunders, C. S. and Galletta, D. F., 2019. Managing and using information
systems: A strategic approach. John Wiley & Sons.
Rauscher, E. A., 2017. Investigating uncertainty in genetic counseling encounters: Managing
information about genetic cancer risk. Journal of health communication. 22(11).
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Ustundag, A. and Cevikcan, E., 2017. Industry 4.0: managing the digital transformation.
Springer.
Online
ABOUT US. 2020. [Online]. Available through:
<https://corporate.marksandspencer.com/aboutus>.
M&S Five forces model. 2020. [Online]. Available through:
<https://prezi.com/4yj90gygy6yu/ms-five-forces-model/>.
Porter's Five Forces. 2020. [Online]. Available through:
<https://strategicmanagementinsight.com/tools/porters-five-forces.html>.
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