Business Studies Report: Marks & Spencer Case Study and Analysis

This report provides an overview of key concepts in business studies. It begins by exploring motivational theories, including Maslow's hierarchy of needs and Herzberg's motivation-hygiene theory, and their application in human resource management. A case study of Marks & Spencer (M&S) illustrates how these theories are used to motivate employees. The report then shifts to financial management, defining its importance and the role of a financial manager within a company. It discusses various sources of finance available to organizations, categorizing them into short-term and long-term options, such as bank loans, commercial paper, equity financing, and retained earnings. The report aims to provide a comprehensive understanding of these interconnected business aspects, supported by the M&S case study to illustrate practical applications.

Introduction to
Business Studies
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CONTENTS
Contents...........................................................................................................................................2
TASK 2: POSTER...........................................................................................................................3
TASK 3: CASE STUDY.................................................................................................................4
TASK 4: REPORT..........................................................................................................................6
REFERENCES..............................................................................................................................10
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TASK 2: POSTER
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TASK 3: CASE STUDY
Human resource word is used to denote both the people working within an organisation and
departments that are responsible for managing resources required by employees to work. The
appropriate management of human resources allows an organisation to achieve its desired goal
and market success (Mu, van Riel and Schouteten, 2020). For this human resource management
is consider to be crucial for a business which represent management as well as development of
employees within an organisation.
Motivation is defined as the process which guides, initiates and maintain goal-oriented
behaviour by creating an urge among people to achieve something. In order to accomplish goals,
the motivation among employees are very much crucial as it help in directing their action and
behaviour toward a particular direction (Cortenraad, 2019). The influence of motivation over
employee’s performance can be understood using following motivational theories,
Maslow’s hierarchical theory:
This is a motivational theory which consists of five tier model to represent human need
level by level in the form of hierarchy (Snieder and Schneider, 2017). The need represented at
bottom required to be fulfilled first before an individual get for attending need at higher level.
The needs as per hierarchy are mentioned below:
Physiological need: This level involves the biological need of a person which they
require for survival such as food, shelter, clothing, drink etc. In case these need not get satisfied
then human body won’t be able to function properly and hence it affect the working capacity of
an employees. Therefore, Marks & Spencer must focus toward providing its employees with
minimum ages so that they can earn their livelihood and be able to work properly.
Safety need: Once psychological need gets satisfied next thing an individual require is to
get safety and security need get satisfied such as social stability, health, well being etc. In order
to perform well employees demand for such a workplace environment where they can work
without any kind of fear related to getting harmed physically while working, another fear they
want to overcome is job security (KOÇAK, 2020). So, HR managers is responsible to develop
such policies which make employees fearless by getting health & Safety and job security
assurance.
Belongingness need: After getting satisfied with psychological and safety need the next
is belongingness need where employees want to have social relations and be able to involve with
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groups they like for interpersonal relationship. Hence, to keep employees motivated after
satisfying safety need is to arrange several occasions or opportunities where employees get a
sense belongingness and be able to maintain relationship with others. This support HR manager
in creating positive working culture and at the same time motivate employees to perform well.
Esteem need: At this level the employees get a need about getting respect or reputation
among their work mates in the form of reward for which they are putting their efforts. As at this
stage only reputation and respect given by other will act as a motivation factor. So, hr manager
of Marks & Spencer must focus toward regularly rewarding employees for their efforts which
help in creating value and hence motive them to move forth.
Self-actualisation needs: This is at top in Maslow theory of motivation which state that
at this level people demanding for self-fulfilment, personal growth and peak experience
(Wieringa and et. al., 2019). Hence, HR manager must focus toward providing positional growth
as per the performance of employees to retain the talent within organisation as they are one who
get motivated and support Marks & Spencer in reaching to its goal.
Herzberg’s motivation hygiene theory
This theory is based on two factors that are very much essential to make the employees
motivated and satisfied with their job which further support in improving the job performance.
These factors are,
Motivation factor: These factors are one which help in influencing the job satisfaction as
these are based on individual need for achievement, personal growth, recognition, responsibility
and advancement. By getting these factors within job employees get motivated to perform well
and remain satisfied with job. So HR manager should focus toward delegating responsibility and
role as per capability of employees and appreciate them for efforts to keep motivated.
Hygiene factor: Other than motivation factor the circumstance in which employees work
also influence their motivation level. When employees get with better company policy,
administrative support, better supervision, positive interpersonal relationship and better working
condition then they get more motivated to perform work.
Hence, it can be said that the management performed by HR manager in term of policies,
working condition, employee’s administration and control all support in keeping the employees
motivated which in turn improve their performance (Coreynen and et. al., 2018). This can be
seen through following case study of Marks & Spencer,
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Marks and Spencer is a one among the big retailers of UK which deal in offering range of
product related with clothing segment, food, financial services and home items. It is well known
for its high-quality fashion items and award wining food offering. This company begins its
operation a century ago in London and now operate throughout the world by maintaining chain
of store (Wong, 2016). The way company is managing its store, supply chain for online channels
and customer feedback are very much impressive which only become possible due to its practice
of talent management which allow them to maintain better customer relationship and achieve
competitive advantage. The HR manager of Marks & Spencer responsibly manage organisational
polices for keeping employee retained and directed toward organisational goals.
Motivational practice done by Marks & Spencer
In order to motivate employees Marks & Spencer offer them benefits other than salary,
such as incentives which they get when they show extra efforts. Other than this, it also provides
5 days working a week so that employees be able to get relaxed from all their working pressure.
This keep employees motivated with organisational management and policies (Odhiambo, 2020).
Additionally, for keeping employees motivated, M&S organise training for them to keep them
updated and make their work simpler.
TASK 4: REPORT
Introduction
The financial; management is considered to be a crucial section of an organisation which
focuses toward managing and controlling the expenses, profitability, cash and credit, so that
organisation be able to carry the objective for which it is pursuing business (CHHABLANI,
2020). The current report involves the discussion about financial management, importance and
role that a financial manager plays within an organisation along with sources of found through
which an organisation can get access to fund for performing its operations effectively.
Financial management
It is defined as the process of planning, organising, directing and controlling the financial
activities in order to utilise the fund in right manner for executing the operation of business. The
proper management of finance within organisation offers quality fuel and regular service for
ensuring efficient functioning of business. Additionally, it also work toward performing actions
such as utilisation of fund, risk assessment, accounting, payment, procurement of fund in right
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manner so that better execution of work remain possible with eth availability of appropriate
finance to execute that work.
Each organisation maintains its separate department for financial management where
actions and assessment regarding all kind of financial practices and matters are being managed.
This department is controlled by financial manager who held responsible for handling and
managing the financial resources within operations and also keep track of inflow and outflow of
fund so that proper records can be maintained within books of accounting and financial
statements so that better planning for future course of action can be made possible
(CHHABLANI, 2020). These all recording keeping is a part of financial management which help
the financial manager of Marks & Spencer in predicting the upcoming requirement of finance for
future course of action and hence help in ensuring smooth flow of function by arranging finance
on timely manner to execute action plan.
Importance of financial management
The financial management holds major importance within an organisation as it supports
in enhancing the profitability position of concern by using controlling factors such as ratio
analysis, budgetary control etc. Additional to this it also helps in improving the access to
financial practices and at the same time contribute toward reducing the business cost by notifying
the management about unnecessary cost which is increasing eth expense to company. This is so
because with the help of financial management Marks & Spencer can maintain the record for
each year’s performance that can be further compared to last year performance or expected gaols
(Chit, 2019). This in turn represent the errors or deficits that are made by company which is
required to be remove. Hence aid in improving eth strategic action and also enhance the
performance of Marks & Spencer by ensuring the right inflow and outflow of fund.
Roel of financial manager within company
Financial manager helps in maintaining the financial health of a company by performing
investment activities as well as performing long term financial strategies. Financial manager held
responsible for conducting analysis of financial data and assisting senior management in taking
financial decision as well as tactics for profit maximisation ideas. By analysing financial data
manager of Marks & Spencer can produce financial statements, develop strategies, invest fund to
increase return and prepare action plan for long term financial goals of organisation.
Sources of finance available
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An organisation needed fund several times while operating its operation whether it is to
be for covering up working capital requirement for performing day to day operations or for long
term fixed asset (Radović, 2016). So, to arrange fund for fulfilling these requirement Marks &
Spencer can access number of sources through which it can get fund such as equity, working
capital loan, term loans, debentures, venture capital etc. These all support Marks & Spencer to
get fund whenever it requires in order to finance all its business elated activity on timely manner.
These sources are categorising as per their characteristics, time duration, ownership and control
i.e. short term and long term. Hence, for getting fund to start or run a business in long and short
term are mentioned below:
Short term
 Bank loan: Companies mainly uses these loans for financing its seasonal business
requirement when the demand for production is high and company do not have much
fund to continue with production (Amornkitvikai and Harvie, 2018). The marks &
Spencer can take bank loan either for adding working capital for mass production or to
finance the promotional event for enhancing sale in season. This provides Marks &
Spencer a period of one year to pay it off back to bank after its operation get executed
successfully.
 Commercial paper: This is another short term and widely used method to et fund for
short period of time. within this the Marks & Spencer can issue commercial paper from 3
to 270 days which provide more interest over commercial paper as compare to bank loan.
Hence it is highly preferred by companies like mark & Spencer who maintain a good
market reputation.
Long term finance
 Equity financing: This source is considered to be less risky way of getting fund and cost
associated with equity is relatively higher as compare to debt. This is a effective source of
finance for Marks & Spencer as it is a long term capital and stay with business
permanently so it can be used whenever it requires
 Ploughing back of profit: Marks & Spencer can also generate fund from its internal
sources such as through retained earning or ploughing back of profit (Bellavitis and et.
al., 2017). It is a case when company does not distribute whole profit rather it keep
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certain share and reinvest it in a part of business for executing operation well. This is risk
free source of finance which help Marks & Spencer in getting its financial need covered.
Conclusion
From above mentioned report it can be said that financial management is crucial for an
organisation as it help in determining the area where fund is required and area which are
incurring extra cost of company. This provide detail about managing the finance in certain area
so that further operations of busines scan run smoothly. For getting appropriate fund to perform
operations an organisation can access sources like debts, retained earnings, equity, debenture etc.
to get appropriate fund.
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REFERENCES
Books and journals
Amornkitvikai, Y. and Harvie, C., 2018. Sources of finance and export performance: Evidence
from Thai manufacturing SMEs. The Singapore Economic Review, 63(01), pp.83-109.
Bellavitis, C. and et. al., 2017. Entrepreneurial finance: new frontiers of research and practice:
Editorial for the special issue Embracing entrepreneurial funding innovations.
CHHABLANI, P., 2020. Sources of Finance (long term).
Chit, M.M., 2019. Financial Information Credibility, Legal Environment, and SMEs’ Access to
Finance. International Journal of the Economics of Business, 26(3), pp.329-354.
Coreynen, W. and et. al., 2018. Internal levers for servitization: How product-oriented
manufacturers can upscale product-service systems. International Journal of Production
Research, 56(6), pp.2184-2198.
Cortenraad, C., 2019. An evaluation research of the application of a reward system within a
holacratic organization.
KOÇAK, D., 2020. The Relationship Between Political Behavior Perception and Prosocial
Motivation-Mediating Role of Organizational Trust. Business & Management Studies:
An International Journal, 8(1), pp.329-350.
Mu, T., van Riel, A. and Schouteten, R., 2020. Individual ambidexterity in SMEs: Towards a
typology aligning the concept, antecedents and outcomes. Journal of Small Business
Management, pp.1-32.
Odhiambo, O.J., 2020. Strategic Management of HRM: Implications for Organizational
Engagement. Annals of Contemporary Developments in Management & HR
(ACDMHR), 2(3), pp.1-8.
Radović, G., 2016. Sources of finance for rural tourism in the Republic of Serbia. Economics of
agriculture, 63(3), pp.1053-1065.
Snieder, R. and Schneider, J., 2017. Are you following the right to-do list?. Physics
World, 30(4), p.44.
Wieringa, R. and et. al., 2019, July. A business ecosystem architecture modeling framework.
In 2019 IEEE 21st Conference on Business Informatics (CBI) (Vol. 1, pp. 147-156).
IEEE.
Wong, I.A., 2016. Linking firms, employees, and customers: a multilevel research agenda for
hospitality studies. Cornell Hospitality Quarterly, 57(1), pp.7-20.
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