Analysis of Retail Theory and Practice: Mark and Spencer's UK Strategy

This report provides an analysis of Mark and Spencer's retail strategies in the UK market. It begins with an introduction to fashion retail and the company itself, highlighting its history and market position. The report then examines key changes within the UK fashion retail environment, utilizing PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors affecting the business. It further explores relevant changes within the microenvironment, employing SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The report discusses various strategies and tactics employed by Mark and Spencer to maintain stability and performance in a competitive environment, addressing challenges such as changing customer preferences, legal policies, and technological advancements. Finally, it offers recommendations for improving the company's performance and concludes with a summary of the key findings. Desklib offers a wide array of similar solved assignments and study resources for students.

Retail theory and practice assignment
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Table of Contents
Introduction to retail........................................................................................................................3
Introduction to the company............................................................................................................4
Key relevant changes within the UK fashion retail.........................................................................5
Relevant changes within the microenvironment..............................................................................7
Strategies and tactics........................................................................................................................9
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Introduction to retail
Fashion Retail is the effective concept of selling fashionable and stylish clothes to the customer
to fulfil their needs and demand. There are multiple sources for fashion retail organisation to sell
products to the customer to generate high profit and sales margin. To satisfy customer’s need
retailers use great supply chain. The retailer provides goods and services to the manufacturer so
that they can provide services to customers and take feedback from customers. Thus, it will help
retailer organisation to produce right quantity, time, quality, price and right place of product and
services. To fulfil customer’s demand retailer organisation examine wants and needs of
consumers and accordingly produce goods. In today’s time, customer’s needs want, demand,
tastes, and preferences change so fast towards the fashion which affects selling of goods and
services. By identifying current market condition fashion retailer organisation can improve profit
as well as a sales target.
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Introduction to the company
Mark and Spencer is largest retailer organisation in the UK which provides latest fashion clothes
in all over the world. It’s headquarter is situated in Westminster, London. Mark and Spencer sell
high quality and branded clothes through its physical as well as online store. It was founded in
the year 19984 by Sir Michael Marks and Thomas Spencer. This organisation gives high focus
on quality as well as a range of clothing to fulfil customer’s demands effectively. Mark and
Spencer provide great clothes at reasonable prices to customers. This company identifies
customer’s new demand and preferences according to which it offers new fashionable clothes for
both men as well as women. It is highly important for the retailer organisation to examine current
market condition before producing products and services. Mark and Spencer increase the sale of
clothing in all around the world because of its decent price and different range. It is most famous
brand among customers as it offers great value, quality, and stylish clothing products at the
global level. Mark and Spencer increase its success and growth by implementing value,
maintenance, and new policies in its products and services which help the organisation to retain
customers for the long time period. This organisation has more than 600 stores in the UK and
continuously increasing many more in all around the world.
(Figure: Mark and Spencer)
(Source: Cooney, 2017)
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Key relevant changes within the UK fashion retail
In today’s competitive environment Mark and Spencer face tough competition through its
competitors. Mark and Spencer is largest retailer organisation which sale it’s stylish and luxury
clothing items through it's online as well as physical stores in all over the world to fulfil
customer’s demand. To attract a huge number of customers it produces the latest fashion and
stylish collection of clothes. External environment affects the performance as well as the position
of the Mark and Spencer in the market so it is essential to consider them in strategy and decision-
making process. This organisation enhances growth and success in the global market because of
its high quality, innovative and reasonable price policy. With the help of pestle analysis, the
company can easily identify external factors that influence positively and negatively on
profitability and productivity of Mark and Spencer. This is an effective tool that helps in
identifying the changes in the external environment through which company can enhance its
sales and profit margin (Muslu, 2013).
(Figure: Clothing store)
(Source: Retail remedy, 2016)
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Political factor: If UK government make changes in the trade tax policies and trade regulation
then it influences business activities of Mark and Spencer. It is essential for the company to
identify trade regulation of UK and other countries where it imports its products and services
(Cooney, 2017).
Environmental factor: Mark and Spencer give focus on environmental factors and consider it in
the production process. This company uses environmentally friendly resources in the production
of stylish and fashionable clothes for customers. Mark and Spencer give attention on the careful
use of raw material and fabric in its manufacturing procedure.
Social factor: Now day’s taste, demand, and preferences of customers changes quickly towards
the fashion and lifestyle. People of UK are loyal and trustworthy towards their brand because of
its quality, quantity, product and pricing policies (Fernie and Sparks, 2014).
Technological factor: To increase scope in e-commerce Environment Company used online
shopping store for satisfying customer’s needs and requirement effectively. By using high
techniques and advanced system company reduce Paper Company and operate everything
through the internet like an online store, online marketing, advertisement and others that help in
gaining huge competitive advantages. With the help of high technology Mark and Spencer can
easily communicate about a new trend, fashion and stylish clothing item to the consumers in the
UK and many more countries.
Economical factor: Mark and Spencer give high attention to customer’s demand and niche
market that help to build good image among customers. It is necessary for an organisation to
analyse income level interest rates, tax rates and others for improving its stability in the large
marketplace (Gockeln, 2014).
Legal factor: It is highly important for a business organisation to follow legal policies and
legislation related to business activities for operation and functioning in a smooth way. Mark and
Spencer follow all laws and legislation for protecting rights of consumer, employees, and
suppliers.
Hence, it is examined that pestle analysed is a useful method for analysing external environment
for increasing profitable as well as productivity in a large marketplace. Mark and Spencer face
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tough competition from its competitors like Zara, ASDA, and others. ASDA sale high-quality
prices in low prices for attracting a huge number of customers towards its product whereas Zara
is famous brand among its customers because of its high quality and price of fashionable, classy
and stylish clothes (Gwilt, 2014). It is highly important for the Mark and Spencer to fix the
reasonable price and high quality of clothes for fulfilling customer’s requirement. There are so
many factors like political, environmental, social, economic, legal and technological that affects
the performance of the Mark and Spencer from the outside environment. This organisation
operates business activities in the different segment of home, food, beauty and cloths products in
which clothing is ever growing segment.
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Relevant changes within the microenvironment
Mark and Spencer operate a huge number of stores in all around the world to generate a high
level of revenue. It is highly important for the organisation to give attention to current market
condition for satisfying customer’s requirement. With the help of SWOT analysis, the company
can easily analysis its internal environment that helps in gaining high competitive advantages
and new growth opportunities (Tallon, 2013).
Strengths
 Good brand image among its
customers.
 Great cash flow position.
 Excellent quality of clothing.
 Mark and Spencer maintain a good
relationship with customers.
 This organisation builds a long-term
relationship with suppliers (Bailey and Baker,
2014).
Weakness
 Low interest of customers.
 High prices due to which normal
people cannot afford to purchase its
fashionable and stylish clothes.
 Lack of clear advertisement and
marketing strategy.
 Avoid children and younger age’s
customers.
 Sometimes it gives poor customer
services.
Opportunities
 With the help of innovation and
alliances company can easily enhance its
market share.
Threats
 Mark and Spencer face tough
competition from its competitors like TOP
Shop, ASDA, NEST, ZARA etc.
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 With the help of technology, Mark and
Spencer can develop great quality cloths in
minim cost by using advanced methods and
techniques.
 By giving attention to a market
segment by age like women’s, men’s, youngers
and children clothing.
 This organisation gives high attention
to customer’s value and neglect employee
which affect negatively on its performance
(Sundström and Reynolds, 2014).
There are so many competitors available in the marketplace which gives tough competition to
Mark and Spencer like Gap, ASDA, Top shop, ZARA, Nest etc which also provide high-quality
fashionable clothes to customers. For example, ASDA is a popular brand which has its own
brand name Matalan and George that offer high quality stylish and fashionable clothing item to
customers at a low price (Fernie, et. al., 2015). Apart from this Top, ZARA, Gap, and Oasis also
offered high-quality clothes of fashionable and latest trend to customers. It is highly important
for Mark and Spencer to maintain its position and performance in the large competitive market
by analysing the internal as well as external factors. With the help of SWOT analysis, this
organisation identifies microenvironment changes for achieving a high level of growth and
success (Vecchi, 2016).
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Strategies and tactics
There are various strategies and tactics used by retailer organisation for maintaining long-term
stability and performance in tough business environment. The macro environmental factors
impact the performance of Mark and Spencer so it is necessary for the company to identify them
in a certain time for taking right decision related to business activities. With the help of Pestle
analysis, Technique Company can easily identify issues as well as the problem that affects its
position and performance in large competitive business environment. There are various relevant
changes from the macro environment that influence retailer organisation like Mark and Spencer.
Taste and preferences of customer changes quickly: Needs and demand of customer changes
very fast that create so many complications in production, development of the product, selling
and demand of goods. To shift customer’s demand it is very much important for Mark and
Spencer to provide high quality, quantity, and price of customers that retain them with the
organisation for a long time (Iamratanakul, 2015).
Changes in legal policies: There are so many legal factors and aspects which influence
performance and position of the company in the large competitive marketplace. Mark and
Spencer consider legal changes to meet a high standard of quality of goods and services for
satisfying demand and needs of customers. This will help in creating good brand image among
customers as well as assist in gaining huge competitive advantages.
Fast change in Technology: It is a major issue that influences profitability as well as
productivity of the retailer organisation. Frequent up gradation in technical methods affects the
operational as well as the functional process of the company. To adopt new techniques and
advanced method Mark and Spencer need to make investment huge amount of capital that will
enhance operational cost. It is important for retailer organisation to use the new technical method
to cover larger market segment (Gockeln, 2014).
By using strong strategies and idea Mark and Spencer can survive in the highly competitive
marketplace for a long time. Adoption of technology in the production process helps in providing
high-quality products and services to customers. By identifying customer’s needs and demand on
a continuous basis through Market Research Company can satisfy the customer. Nowadays every
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company gives a tough fight to each other due to to which competition level increase in a
business environment. There are so many competitors of Mark and Spencer like ASDA, Top,
Gap, ZARA etc which also provide high quality fashionable and stylish clothes to customers. By
using various strategies and tactics Mark and Spencer can easily resolve all those issues and
factors which influence performance and position of the company (Retailremedy, 2016).
Apart from this, there are so many microenvironmental challenges which impact negatively as
well positively on business activities of retailer organisation. Mark and Spencer give high
attention to both macro and microenvironment change for achieving set goals and objectives. It
is necessary for management to consider them at the time of decision and planning making
strategies.
Suppliers: It is highly important for Mark and Spencer to maintain a good relationship with
suppliers so that they can provide raw material at reasonable price. Suppliers can control the
growth of the retailer organisation because without raw material Mark and Spencer are unable to
produce goods and services for customers. To maintain a good relationship and strong bond with
Suppliers Company fulfil required needs and demand of theirs (Indris and Primiana, 2015).
Employees: Mark and Spencer fulfil all required demand and wants of employees so that they
can perform well within the organisation. It is necessary for the company to use the employee-
based approach with the customer based because if employees are not satisfied with their job
then it will directly affect the performance of Mark and Spencer. Management of Mark and
Spencer maintain a good relationship with employees and resolve their issues as well as the
problem that influences negatively on their performance.
For resolving issues which are faced by the organisation due to micro as well as macro
environmental changes Mark and Spencer take help of strong strategies and tactics that help to
overcome. In today’s competitive market it is necessary for retailer organisation to examine both
micro and macro factors on a continuous basis for identifying all those factors and changes that
directly impact on performance and position of the company. There are various strategies and
plans are developed by the management for maintaining long-term growth and development in
the tough competitive market (Indris and Primiana, 2015).
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Recommendations
To increase sales as well as the revenue it is highly important for the Mark and Spencer to focus
on wants and needs of customers. There are a huge number of competitors available in the
market which gives tough competition to Mark and Spencer so it is essential for this company to
fulfil variety and new product demand. Nowadays taste and preferences of customer changes
quickly that creates complexity in production, sourcing, planning, and development of the
product for which Mark and Spenser should conduct market research on a continuous basis for
identifying the current market condition.
 The company should give high attention to its supply chain for fulfilling needs and
demand of customers in an effective way.
 Mark and Spencer should use social sites for identifying customers review towards its
clothes so that according to which company can make changes in its product and services.
 It is highly important for an organisation to use high technology and advanced methods
for increasing production as well as profitability in the large competitive marketplace.
 The company should invest some portion of its profitability on CSR which create good
brand image among customers and also help in gaining huge competitive advantages.
 By delivering great customer services Mark and Spencer can easily retain customers for
the long time period.
 For increasing number of the customer, it is important for Mark and Spencer to use great
marketing as well as advertisement strategies which attract people.
 The company should provide new trendy and classy fashionable clothes in the market
through online as well as physical stores which attract a huge number of people.
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Conclusion
By analysing this report it has been evaluated that Mark and Spencer is largest and famous
retailer organisation in all over the world which offer high quality and range of clothing item to
its foreign as well as domestic customers. To survive in the market it is highly important for the
company to analyse both micro and macro factors while developing any policies and plans for
business activities. This will help in examine positive as well as the negative influence of factors
that affect the performance of Mark and Spencer. In today’s competitive environment it is highly
important for Mark and Spencer to adopt information system that helps to handle order and data
processing. To survive in the large competitive market it is essential for this company to examine
strategies of its competitors.
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References
1. Bailey, S. and Baker, J., 2014. Visual merchandising for fashion. A&C Black.
2. Cooney, R., 2017. Marks & Spencer pledges to raise £25m for charity over eight years
[Online] Marks & Spencer pledges to raise £25m for charity over eight years. Available at:
https://www.thirdsector.co.uk/marks-spencer-pledges-raise-25m-charity-eight-years/
fundraising/article/1435287. [Accessed on 16 April]
3. Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and
new challenges in the retail supply chain. Kogan page publishers.
4. Fernie, J., Fernie, S. and Moore, C., 2015. Principles of retailing. Routledge.
5. Gockeln, L., 2014. Fashion industry analysis from the perspective of business model
dynamics (Bachelor's thesis, University of Twente).
6. Gockeln, L., 2014. Fashion industry analysis from the perspective of business model
dynamics (Bachelor's thesis, University of Twente).
7. Gwilt, A., 2014. A practical guide to sustainable fashion. A&C Black.
8. Iamratanakul, S., 2015. Modeling the Macro-Environmental Factors of International
Distribution. In Conference Proceedings: Technology Innovation and Industrial Management.
9. Indris, S. and Primiana, I., 2015. Internal and external environment analysis on the
performance of small and medium industries (SMEs) in Indonesia. International journal of
scientific & technology research, 4(4), pp.188-198.
10. Muslu, D., 2013. Innovation and Sustainability in Fashion Industry.
11. Retail remedy, 2016. Marks and Spencer – a two speed organisation [Online] Marks and
Spencer – a two speed organisation. Available at http://retailremedy.com/marks-and-spencer-a-
two-speed-organisation/. [Online]
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12. Sundström, M. and Reynolds, J., 2014. Final report from the expert group on retail sector
innovation.
13. Tallon, A., 2013. Urban Regeneration in the UK. Routledge.
14. Vecchi, A. ed., 2016. Handbook of research on global fashion management and
merchandising. IGI Global.
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