University: Marks and Spencer Innovation Audit Report

This report provides a comprehensive innovation audit of Marks and Spencer, a leading UK retailer. It begins with an introduction defining innovation and its importance, followed by an overview of Marks and Spencer's history and its innovation timeline. The report then conducts a PESTLE analysis to assess the external factors influencing the company's innovation efforts, including political, economic, social, technological, legal, and environmental aspects. It further evaluates Marks and Spencer's existing innovation performance, including its partnership with TRUE and its five-year transformation program, as well as its capabilities in implementing innovative practices. An examination of the retail industry, including innovation examples and Porter's Five Forces analysis, is also included. The report concludes with a summary of key findings and insights into Marks and Spencer's innovation strategy and future prospects. The report is a response to a CW1 assignment for the BM627 module at a UK university.

MANAGING
INNOVATION IN
BUSINESS
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INTRODUCTION...........................................................................................................................................4
The Organisation and its Innovation History...........................................................................................4
The Organisations existing Innovation Performance and Capabilities.....................................................7
The Industry............................................................................................................................................8
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................13
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INTRODUCTION
Innovation can be defined as a process in which new product are established with an aim to
offer something innovative in marketplace. In this technique or any other value added feature has
been undertaken in already existing product or services in order to fulfill changing needs and
demand of customers (Helper and Henderson, 2014). Present report has been conducted on
Marks and Spencer with having company headquartered in UK. Entity operate their functioning
as a leading British retailer and offer products like accessories, food, clothing, home products
etc. In this report formative discussion has been made on organization innovation history along
with existing Innovation performance of entity in addition with its capability to bring about
innovation in future. Lastly, report includes industry overview.
The Organisation and its Innovation History
Marks and Spencer conducted operation as an international multinational and came into
force in 1884 when Michael marks a Polish refugee started a market stall in Leeds under a slogan
“Don’t ask the price, it’s a penny”. Entity has 98 stores across the provinces of UK out of which
650 stores engage in the functioning of food distribution.
While taking the aspect of innovation timeline of Marks and Spencer this has been
evaluated that entity effectively transformed a lot over the last century, its first store launched in
1904 in Leeds. In the year 1920 Marks and Spencer showed implementation of revolutionary
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policy in which there was direct purchase via suppliers. Further it has been evaluated that in
1931 entity launched their food unit that offer canned and produced items. In addition to this, it
has been evaluated that by the end of 1933 organization established welfare services for
employees in which they offer them facility is related to pension, subsidized canteen, dental
amenities, camping holidays, healthcare facilities etc.
By taking advantage of innovation Marks and Spencer emerged out to be the first retailer
who established their own research laboratory in 1934, this laboratory engage in the processing
of revolutionary new fabrics (Goolsbee and Krueger, 2015). By the year 1948 Marks and
Spencer initiated the food technology department with an aim to build formative relationship
with suppliers, farmers and producers and work closely with them in order to bring change and
create value for the brand. Further it has been identified at Marks and Spencer in 1954 took
survey of women leg sizes and launched unique sizing procedures for stockings. Entity also
came up a Chinese and Indian food in the year 1974.
Marks and Spencer during 1999 entered in the world of e-commerce and introduce its own
online shopping platform and website to customers. In the year 2020 Marks and Spencer
introduced to Blue Harbour men’s range in marketplace that significantly increases sales volume
of entity. By taking advantage of continuous expansion Marks and Spencer during 2016 started
their sales through European Zalando over their Dutch, German, Belgian, Austrian and French
sites.
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Illustration 1: Innovation Timeline of Marks & Spencer
(Source: Innovation Timeline of Marks & Spencer, 2019)
PESTLE Analysis
There are different types of elements that are prevailing in business environment and are
required to be effectively understood by Marks and Spencer, as these elements are drivers of
innovation. Mentioned below all the factors are define:
Political:
Marks and Spencer, Research and Development department is situated in the provinces of
United Kingdom. It has been evaluated that UK Government acknowledge those organization
that regularly comes up with innovative techniques and unique offerings. For this UK political
system is offering liberal tax policies and other tax free provisions such as patent box schemes
and R&D Tax Credit for these entities. With the help of the Marks and Spencer constantly
engage in the practices of innovation.
Economic:
Marks and Spencer operator services in developed economy that provide effective ways
that facilitate organizational growth as well as expansion. It has been evaluated that UK acts as
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major revenue generating source for entity as this, Nation encourage innovation with different
economic flexibilities.
Social:
This has been determined that by the passage of time there is a constant and dynamic
change in consumer taste, preferences and choice. According to the current scenario consumers
are mainly turned towards low-calorie and organic content food. This makes Marks and Spencer
to focus upon production of food with less calories and sugar content. Generation nowadays in
United Kingdom constantly upgrade their clothing lifestyle that makes company to regularly
engage with innovative offerings in order to ensure competitive advancements.
Technological:
Technology is rapidly changing, it has been identified that retail Industry is also not un-
touched with the regular advancement in technology. This makes Marks and Spencer to adopt
every update in technology in its organization workplace structure, as it is one of the most
important driver of innovation. With the assistance of innovative tools and technology Marks and
Spencer emerged out as a leading British retailer.
Legal:
It has been determined that it is essential for organization despite of their size and scope
to abide all the legal procedure and legislations in order to ensure long-term sustainability. In
relation with retailing sector, number of legislations and laws that are imposed by government
and are required to comply by Marks and Spencer as to avoid any legal prosecution and penalty.
Environmental:
Nowadays public and government are mainly focus towards environmental sustainability
in which they promote Industries to utilize raw materials that are made up of recycled process.
This is most important driver through which Marks and Spencer can ensure the competitive
image. In this by taking advantage of green policy which is referred as “Plan A” by entity Marks
and Spencer effectively conduct their operations (INTRODUCING PLAN A 2025. 2019). This
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policy of company tends towards fewer amounts of carbon footprints in order to save society and
environment.
The Organisations existing Innovation Performance and Capabilities
Marks and Spencer conduct their business operations as a leading British multinational
corporation that conducts its operations in United Kingdom. This company is listed on the
London Stock Exchange and is a primary constituent of FTSE 100 Index.
Existing innovation performance
Marks and Spencer entered with the partnership in Europe o Europe's only specialist
consumer investment as well as retail firm, TRUE, in order to identify information related to the
latest trends techniques, technologies and innovation (Dodgson, M., 2018). With this entity aim
towards having access to 2000 more than enterprise-ready business via its live network. This
collaboration is defined as a most important aspect of Marks and Spencer ongoing
transformation process; in which entity invests digital expertise. It has been evaluated during
November 2017 a 5 year transformation program was developed by Marks and Spencer that aim
towards bringing organizational success in terms of profitability and selling ratio. It lead towards
improvement in company’s clothing and home Logistic network. It has been evaluated that
digital consumer and marketing team of entity undergoes into restructuring, in addition to this
company also set up consumer insight partnership along with star count.
Further it has been identified that in food segment of entity there are different type of
key technical theme that have been introduced by Marks and Spencer in order to effectively
identify dynamic requirements and change in need of industry and customers. Marks and
Spencer design these themes in order to make significant improvement in their business
efficiency in marketplace and ensure that they offer special products to their customers with
different varieties and unique packaging style. In addition to this it has been identified that these
themes launched by organization that effectively promote healthy with having agenda of healthy
diet with high nutrients in food products of organization (Acharya, Schaefer and Zhang, 2015).
In this Marks and Spencer ensure that there retail Food Industry make reduction in
campylobacter rate in poultry and effectively avoid all the measures of food standard agency.
Along with this it has been identified that organization Plan A Innovation fund is to provide
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assistance to Innovative initiative and practices. By taking advantage of these funds entity
effectively conduct testing of vacuum packages of fresh meat cuts. By undertaking all these
practices Marks and Spencer significantly increased their sales and so the customers with best.
Capabilities
This has been evaluated that Marks and Spencer hold effective amount of capability to
introduce a product and services with the help of innovative procedures as well as practices.
Entity is fully capable to successfully execute 5 year transformation program as to ensure success
in retail industrial segment (Retail innovation: Trends, challenges and opportunities. 2019). With
this, company increases there sales and profitability level in global market. In addition to this it
has been evaluated that entity is having potential capability to initiate their business in Brazil and
Poland as it effectively increases their growth opportunities in retail enterprise. Marks and
Spencer is a large scale organization that undertake use of high and technologies like cognitive
computing and different channel of platform in order to satisfy a consumer demands in well
effective manner. Marks and Spencer possess capability to undertake use of Emotient, it is a
software that provide assistance to detect consumer reaction towards a service, product, display
and Signs. With the assistance of this technology Marks and Spencer effectively increases there
share and level of consumer satisfaction.
The Industry
It has been evaluated that in retail industrial sector there is significant innovation in this
sector. In relation to this, there are certain examples innovations that are brought by leading
entities in retail sector Method’s squirt bottle (innovation in packaging), HDFC Bank’s Eva
Chatbot (innovation in communication), Uniqlo’s HEATTECH design (innovation in product
design), Greggs' Vertically integrated operations (innovation in business model), (Retail
innovation: Trends, challenges and opportunities, 2019), Holition, an AR enabled mirror from
Charlotte Tilbury (innovation within in-store shopping experience), Coca Cola's engagement
programme (innovation in customer engagement). By undertaking proper evaluation of all these
factors it has been identified that innovation acts as key important elements for organization.
This makes entity to undertake use of this aspect and ensure their long term sustainability in
marketplace.
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Illustration 2: Retail Trends
(Source: Retail Trends, 2019)
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This has been identified that retail industry offer significant assistance in undertaking
about this market segment. Mentioned below there are some certain aspect of retail industrial
segment is being defined below with the assistance of Porter Five Force analysis:-
Porters Five Force Model
Threat of new entrants: This has been evaluated that in Retail Industry there is a low
threat of new entrants as in this in order to make entry there is a requirement of huge capital.
Along with this there are already existing multinational organizations in this sector those who
offer high quality product and services to customers.
Bargaining power of suppliers: It has been identified that bargaining power of supplier
in respective industry is low. As suppliers mainly seeks to build long term relationship with
leading organization. As Marks and Spencer is a multinational brand, the suppliers and vendors
negotiate quite low prices in order to ensure the long term existence.
Bargaining power of buyers: There is a high bargaining power of buyers in retail industry,
as it has been identified that there are number of organizations like ALDI, Sainsbury ASDA
those who offer close substitute of services and products. Buyers are having high negotiation
power through which they can switch towards other brand without thinking twice.
Threat of substitute products: This has been identified that there is high threat of substitute
product in this sector. As leading organization offer customers with affordable price range in
order to ensure consumer loyalty as in this entity is required to take advantage of product
differentiation concept to generate high profitability.
Rivalry among existing players: According to the evaluation it has been identified that there
is a constant rivalry in retail sector, as leading entities like Tesco, ALDI, ASDA, and Sainsbury
offer competitive price range product and services to customers with the help of innovative
techniques in order to draw their attention.
CONCLUSION
As per the above mentioned report it has been concluded, that innovation is most important
aspect of an organization with the help of which entity can effectively able to ensure its long
term suitability in marketplace. With the assistance of innovation tool, Company can increase its
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market share holding as well as profitability. This has been identified that it is essential for an
entity to continuously engage in the process of innovation as to ensure competitive positioning in
respective industrial sector. In this by taking use of PESTLE and Porter Five Force evaluation
company can evaluate different factors prevailing in marketplace and can develop strategy
against them as to ensure high competitive force and maximum profitability.
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REFERENCES
Books and Journals
Acharya, V. V., Schaefer, S. and Zhang, Y., 2015. Liquidity risk and correlation risk: A clinical
study of the General Motors and Ford Downgrade of May 2005. The Quarterly Journal
of Finance. 5(02). p.1550006.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
El-Refaie, A. M., 2013. Motors/generators for traction/propulsion applications: A review. IEEE
Vehicular Technology Magazine. 8(1). pp.90-99.
Goolsbee, A. D. and Krueger, A. B., 2015. A retrospective look at rescuing and restructuring
general motors and chrysler. Journal of Economic Perspectives. 29(2). pp.3-24.
Greer, I. and Hauptmeier, M., 2012. Identity work: Sustaining transnational collective action at
General Motors Europe. Industrial Relations: A Journal of Economy and Society. 51(2).
pp.275-299.
Helper, S. and Henderson, R., 2014. Management practices, relational contracts, and the decline
of General Motors. Journal of Economic Perspectives. 28(1). pp.49-72.
Jurkovic, S. and et. al., 2015. Induction machine design and analysis for general motors e-assist
electrification technology. IEEE Transactions on Industry Applications. 51(1). pp.631-
639.
Noble, D., 2017. Forces of production: A social history of industrial automation. Routledge.
Pound, A., 2013. The Turning Wheel-The story of General Motors through twenty-five years
1908-1933. Edizioni Savine.
Online
INTRODUCING PLAN A 2025. 2019. [Online]. Available Through:
<https://corporate.marksandspencer.com/sustainability/report2018>.
MARKS & SPENCER SELECTS TRUE TO DRIVE DIGITAL INNOVATION AGENDA. 2019.
[Online]. Available Through:<https://corporate.marksandspencer.com/media/press-
releases/2018/marks-and-spencer-selects-true-to-drive-digital-innovation-agenda>.
Retail innovation: Trends, challenges and opportunities. 2019. [Online]. Available Through:
<https://www.hackerearth.com/blog/innovation-management/retail-innovation-trends-
opportunities/>.
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