Retail Theory and Practice Report: Marks & Spencer Business Analysis

This report provides a comprehensive analysis of Marks & Spencer's retail operations, starting with an overview of the company and its market position. It then delves into a PEST analysis, examining the political, economic, social, and technological factors influencing M&S. The report further investigates changes within the micro-environment, including customer behavior, employee relations, and competitive pressures. It explores how M&S adapts its strategies and tactics in response to changes within the macro-environment, including regulatory changes and cyclical theories such as the wheel of retailing and the accordion theory. The report concludes with recommendations for M&S and a discussion of its future prospects, drawing on academic literature to support its arguments.

Retail theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................1
OVERVIEW OF MARKS AND SPENCER...................................................................................1
PEST ANALYSIS OF MARKS AND SPENCER..........................................................................2
CHANGES WITHIN THE MICRO ENVIRONMENT..................................................................4
STRATEGIES AND TACTICS IN ADAPTING CHANGES WITH INFLUENCE OF MACRO
ENVIRONMENT............................................................................................................................4
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In past era, retail market was termed as small outlet, they delivered products and services
to clients according to their desires. But now, they transformed into supermarkets, malls and so
forth. Retail procedure will be comprehend in various manner, such as offer qualitative items to
customers as per their needs and for this, many distribution channels are using by them (Leigh
and Blakely, 2016). Their fundamental aim is to generate maximum revenues. This assignment is
based on Marks & Spencer, which is operating their business in clothing segment. They have to
analyse market trends on regular basis so they will be able to capture attention of numerous
people towards them. It assists them to obtain competitive benefits from rivals. In this manner,
they will improve their market share as well as profits effectively and efficiently.
OVERVIEW OF MARKS AND SPENCER
Marks and Spencer is a leading association which is established in United Kingdom, in
the year of almost 1885. Their headquarter is situated in Westminster, London. Fundamental
targets of this firm is to offer trendy cloths to clients. Founder of this organisation is Michael
Marks and Thomas Spencer (Ruggie, 2017). On the other hand, they are having numerous stores
across the world. In UK, they have more than 950 outlets in distinctive places. Apart from this,
they are also selling food items to people and operating nearly 700 retail stores in United
Kingdom. They grab opportunities from market which are accessible for them and in this
manner, they will easily improve their revenues. As their goodwill is much effective; therefore, it
is easy for them to keep up client base in an effective and efficient way.
Foremost target of Marks and Spencer is to capture attention of numerous people towards
them who love fashionable clothing. They analyse market on regular basis so it is easy for them
to modify products as per demands of people. This enables them in improvisation of profits and
in addition production. Staff members of company are much trained; thus, they will cater
effective services to people. As a result, they will maintain sustainability at marketplace for
maximum period of time (Laseter and Rabinovich, 2016).
Manager of Marks and Spencer implement innovative ideas into products which will
develop tough competition for rivals in market. Therefore, they will maintain brand image in
market appropriately. In addition to this, they render training to workers on regular basis which
assist into their retention. They are enlarging their business in other nations, such as Dutch,
China, Austria, Germany and many more (Ridley-Duff and Bull, 2015).
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PEST ANALYSIS OF MARKS AND SPENCER
To examine extrinsic market, superior of company will use PEST investigation and this
will be understand by the following description:
Political: Organisation is operating their business in many countries; therefore, it is
required for them to understand political situation of each place effectively. If there is any
alterations in policy of regulatory body then this will render impact to entire working procedure
either in a direct or indirect manner (Joskow, 2014). This will comprise modifications in tax
rates, introduction of new policy and so on. This will influence profits and production of an
enterprise. In context of Marks and Spencer, changes in government policies never affect quality
of products which are offering by them to individuals. If political situation of any association is
much stable then, firm will expand their business over there. In this manner, they will able to
obtain success and growth at marketplace.
Economical: It will provide impact to process of decision making either in a positive or
adverse manner. It is must for manager of Marks and Spencer to develop items for people as per
their demands. If income of people is not much effective then, they will unable to spend more
amount on products. Thus, it is must for firm to examine purchasing power of consumers in an
effective manner. On the other hand, if there is modifications in exchange rates then, this will
influence profits of an association as well because it will cater impact to value of items
(Hackmann, Kolstad and Kowalski, 2015).
Social: It is considered as most significant element because it influences profits and
production. This has been analysed that, each nation has their own culture which is following by
them. Therefore, it is required for manager of Marks and Spencer to produce products
accordingly. They will conduct research to know about requirements of persons. This helps them
to accomplish their needs and in this manner, they will be able to improve their revenues
effectually. It assists firm to take benefits from contenders at marketplace. There are many
factors which will include into this, demography, attitude, value, trends and so forth.
Technological: Marks and Spencer needs to utilize latest techniques and tools; therefore,
they will be able to manufacture products and services for people in an innovative manner
(Vernimmen and et. al., 2014). This enables them to maintain brand image at marketplace for
maximum period of time. Along with, they will easily survive at marketplace longer duration.
This has been analysed then, if products are creative then, it helps to gain attention of numerous
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individuals towards them. In addition to this, they will maintain their customer base in an
effective and efficient way. Superior of an enterprise will cater training sessions to their staff
members; thus, they will utilize new techniques in a proper way. As a result, work will get
accomplished within limited time span. Additionally, unwanted cost and wastage will get
reduced for business procedure (Chudik and Pesaran, 2016).
Factors related to micro environment and it impact on Marks and Spencer:
Customer: Company modify their items and services as per requirements of clients which
enable them to maintain sustainability in market for maximum time span. Superior will conduct
research to know about consumers' desires as this assists them to take advantages from rivals
effectually.
Employees: They are considered as most significant part of an enterprise who help them
to accomplish their targets timely. Manager will provide some training sessions to them as this
aids to improve their working performance. In this manner, they will produce qualitative items
and will take advantages from contenders (Nepal and Jamasb, 2015).
Competitors: There are numerous contenders of company which are available at
marketplace. In context of Marks and Spencer, they are suing effective promotional
methodologies which help them to compete with competitors in market. This helps them to
survive at marketplace for maximum time duration.
Investors: To enlarge business activities, association needs proper amount of finance as
this aids them to accomplish targets timely. As reputation of M&S is much effective; therefore, it
is easy for them to manage fund quickly. To convince investors, superior will formulate some
plan and present to them. But if they will not attain coveted targets timely then, this will diminish
their goodwill (Arnold, Landry and Reynolds, 2015).
Media and the general public: This component will influence business activities of M&S
either in a direct or indirect manner. This has been seen that media will improve or reduce image
of company. If they are paying bills, salaries and taxes on time then, this assists to maintain their
reputation in market. But if they are failure into this, then it may impact to their brand in an
adverse way (Bowen, 2016).
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CHANGES WITHIN THE MICRO ENVIRONMENT
Demands and requirements of individuals are changing on regular basis; thus, it is must
for M&S to analyse it. It will either affect profits of firm or will provide positive impact on the
mind of people. In recent time, preferences and taste of clients are modifying regularly;
therefore, it is must for superior to consider this while taking judgement for firm. This helps
them to attain desired targets in an effective and efficient manner (Frederick, Kuratko and
O'Connor, 2015). There are various factors which will include into this, such as finance, research
and development, marketing etc.
Instead of this, M&S will obtain latest methodologies and techniques into business as this
enables them to take benefits from rivals at marketplace. It assists them to diminish workload of
staff members as well. By using new tools, they will maintain quality of goods and services and
in this manner, they will cater maximum satisfaction to consumers in an effective manner. It is
required for firm to evaluate needs of people so they will alter their products accordingly. As a
result, they will take benefits from rivals in market. There are many kinds of promotional
techniques will be utilized by association which help them to get attention of many individuals
towards them (Leigh and Blakely, 2016).
To enhance relationship with workers some strategies will be developed by superior. To
improve involvement level of employees, manager will take their assistance in decision making
process. To enhance their skills and abilities, training will be provided to them because this helps
to reduce unwanted cost and wastage from business process.
STRATEGIES AND TACTICS IN ADAPTING CHANGES WITH
INFLUENCE OF MACRO ENVIRONMENT
As indicated by Ruggie (2017), this methodology will classify into many factors, such as
cultural, social. Economical, competition, political, legal and so on. This has been analysed that
framework of Marks and Spencer will get influenced by extrinsic components. Regulatory body
of nation will alter tax rate with the aim of enhancing economic growth. It may provide impact to
activities of affiliation as well. Thus, it is must for manager to take decision by analysing
external surroundings as this helps them to improve production and profits.
Cyclical theories
The wheel of retailing theory:
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This hypothesis is formulated by Philip Kotler and as per this, if an individual is going to
start their business in retail sector then, it is fundamental for them to follow this cycle (Laseter
and Rabinovich, 2016). This helps them to maintain sustainability at marketplace for maximum
time span. There are some steps which are associated with this, described as below: Step 1: Less price, margin as well as goodwill Step 2: High amount, cost and effective reputation Step 3: In this step, retailer will analyse that their revenues are increasing without create
any modifications in business
 Step 4: It is same as first phase because retailer is new in market.
There are many new organisations who are taking entry into marketplace in same
segment as M&S. Therefore, it is essential for them to modify items as per needs of clients so
they will be able to maintain their customer base and survive at marketplace for maximum time
duration (Wheel of Retailing Concept, 2017).
Accordion theory:
It can be also termed as general hypothesis and this will cater opportunity to some retailer
so that they will make some modifications; thus, they will take initiatives. In context of Marks
and Spencer, they utilize this theory; therefore, they will obtain an appropriate decision for
affiliation. Along with this, will attain coveted objectives and targets in a proper and adequate
manner (Ridley-Duff and Bull, 2015).
Company has to use latest techniques and methods; therefore, they will alter items and
services in an effective manner. This helps them to acquire success and development. New
methodologies are much important for an enterprise as this will assist them into procedure of
decision making. In this manner, they will easily gain positive results in forthcoming time. These
elements will be micro or macro as well. This has been analysed that micro factors will comprise
process, clients, public entity, market intermediaries and so on. On the other hand, macro
components will include some forces, for example: legal, technological, cultural, social,
demographical and so many. Public is considered as most important part which will provide
influence on activities of marketing so that association will satisfy needs of clients through
offering items to them as per their requirements (Joskow, 2014). For instance, if association is
able to fulfil demands of individuals timely then, this aids them to improve their brand image in
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market. There are some example of public like, watchdog group and customer advocates which
help to prevent association from an negative comments.
Retailing ideas:
M&S is one of the leading firm which is operating their business in UK. They are
providing items to people at affordable prices (Hackmann, Kolstad and Kowalski, 2015). As
there is high competition at marketplace; hence, it is must for organisation to use some thoughts
which are less costly. These are stated as below: Social media: This method will be utilized by affiliation as in modern era, numerous
individuals are using social sites. This will reduce unnecessary cost of Marks and
Spencer. Website: As company is having their own website so that they will offer items to clients
with helps of this as well.
Business partnerships: This is not easy to comprehend culture of an enterprise as they are
expanding their business across the world. Hence, they will acquire support of some local
business persons to understand culture as well as trend of country (Vernimmen and et. al., 2014).
Retailing concept:
Marks and Spencer is attaining their targets and goals on continuous basis. Therefore, it is
must for them maintain entire aspects which are connected to their segment so they will create
circumstances into their favour. In this manner, they will be able to regulate business properly
and in addition will fulfil requirements of clients timely. This enables them to improve profits of
firm (Chudik and Pesaran, 2016).
RECOMMENDATIONS
Marks and Spence has to begin their business online as well because this helps them to
maintain connection with numerous individuals in an effective manner. Along with, they will
gain attention of many persons towards items. If they utilize digital techniques then, this helps
them to provide goods and services to clients in distinctive nations. In this manner, they will be
able to improve production and profitability in a proficient way. On the other hand, superior of
company will obtain response from consumers. This assists them to improve quality of items and
services. In addition to this, they will take an effective judgement for affiliation. With support of
online outlet, M&S will easily introduce new merchandise to people. This is considered as most
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cheapest promotional technique. Fundamental target of firm is to capture attention of various
persons; thus, they will increase revenues.
Instead of this, there are many social sites which will use by association, such as
Instagram, Facebook, Twitter and many others as a promotional method. In recent time, many
individuals are using these sites so if company is using it then they will grab attention if
numerous people at a single time. As a result, they will maintain relationship with consumers
significantly. Along with this, will improve brand image and market share properly. Resulting,
this assists them to take benefits from rivals in marketplace.
CONCLUSION
From above assignment it has been comprehended that retail outlets are expanding their
business on regular basis. They will alter products and services as per demands of people;
therefore, they will be able to accomplish their requirements accordingly. It aids to improve their
profits and in addition production. By fulfilling needs of clients timely they will keep up
customer base effectively. In addition to this, they will capture attention of numerous individual
as well. They offer items to individuals online also, which enable them to take benefits from
contenders at marketplace. To examine extrinsic surroundings, manager of firm will formulate
strategies appropriately. In this manner, they will achieve coveted targets and goals within
limited period of time.
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REFERENCES
Books and Journals
Arnold, T. J., Landry, T. D. and Reynolds, J. K., 2015. A Typology of Online Retail Assurance:
Implications for Managers and Ideas for Future Research. In Assessing the Different
Roles of Marketing Theory and Practice in the Jaws of Economic Uncertainty. pp. 230-
230. Springer, Cham.
Bowen, D. E., 2016. The changing role of employees in service theory and practice: An
interdisciplinary view. Human Resource Management Review. 26(1). pp.4-13.
Chudik, A. and Pesaran, M. H., 2016. Theory and practice of GVAR modelling. Journal of
Economic Surveys. 30(1). pp.165-197.
Frederick, H. H., Kuratko, D. F. and O'Connor, A., 2015. Entrepreneurship:
Theory/Process/Practice with Student Resource Access for 12 Months. Cengage AU.
Hackmann, M. B., Kolstad, J. T. and Kowalski, A. E., 2015. Adverse selection and an individual
mandate: When theory meets practice. American Economic Review. 105(3). pp.1030-66.
Joskow, P. L., 2014. Incentive regulation in theory and practice: electricity distribution and
transmission networks. In Economic Regulation and Its Reform: What Have We
Learned?. pp. 291-344. University of Chicago Press.
Laseter, T. M. and Rabinovich, E., 2016. Internet retail operations: integrating theory and
practice for managers. CRC Press.
Leigh, N. G. and Blakely, E. J., 2016. Planning local economic development: Theory and
practice. Sage Publications.
Nepal, R. and Jamasb, T., 2015. Caught between theory and practice: Government, market, and
regulatory failure in electricity sector reforms. Economic Analysis and Policy. 46.
pp.16-24.
Ridley-Duff, R. and Bull, M., 2015. Understanding social enterprise: Theory and practice. Sage.
Ruggie, J. G., 2017. The theory and practice of learning networks: Corporate social
responsibility and the Global Compact. In Learning To Talk. pp. 32-42. Routledge.
Vernimmen, P. and et. al., 2014. Corporate finance: theory and practice. John Wiley & Sons.
Online
Wheel of Retailing Concept. 2017. [Online]. Available through:
<https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/2823-
wheel-of-retailing-concept.html>.
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