Strategic analysis Mark and Spencer Plc. final - 1 Strategic analysis Strategic analysis for Marks and Spencer Plc by Course Professor Institution City

Strategic analysis Mark and Spencer Plc. final - 1...

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1Strategic analysisStrategic analysis for Marks and Spencer Plc.byCourseProfessorInstitutionCity and stateDate
2Strategic analysisIntroductionMarks and Spencer plc is a multinational retailer located at Westminster, London foundedby Michael Marks and Thomas Spencer in 1884. Marks and Spencer is known in sellinghome products, clothing, financial services, online services and luxury food products.Currently, the company is listed on the London Stock Exchange and it is a constituent ofFTSE 100 Index. This company is considered the biggest retailer attributed to its years ofexistence in British markets. In addition the company has 900 stores located in variousparts of the world (Hallbauer 2008). It is notable that Marks and Spencer operates in acompetitive UK business environment thus its business operations is affected by externalfactors. It is also important to note that internal factors significantly affect the company.The high level of competition is highly attributed to its segments of business notableclothing, food, beauty products and home products. The company is also sensitive to economic, technological and social factors. The businesssegments that M&S operates require them to adapt and keep up with the dynamic trendsassociated with it. The dynamic changing trends and the market shift towards onlinepurchasing are the key features that affect M&S and they have little power to control.M&S key competitors in the recent past have become a threat to its core values ofaffordability, quality and effective service delivery. Food chain competitors such asWaitrose, Sainsbury and Tesco have focused on readymade food products and frozenfoods. Others such as Debenhams, Gap, Top Shop and Next have focused on providingtrendier and more fashionable designs to the customers. Therefore, it can be argued thatM&S face a fierce competition from all of its market segments (Charles Hill 2009). M&S
3Strategic analysisin comparison to its competitors is slow in responding to market trends and competitionand may lose its market share and profits.Marks and Spencer business environment analysisThe market segments that M&S engage in is very competitive and therefore demandsthem to be top in their game. It is notable that the company faces challenges arising fromthe impacts of double-flip economic recession. The UK’s economic recession has resultedinto unpredictable consumer patterns with regard to the disposable incomes. Despite ofthis turbulent and unstable business environment M&S has consistently maintain itsstrong position especially on food sales and profitability before tax. In the analysis ofboth internal and external business environment stakeholder management strategies andcorporate culture is considered (Campbell 2011).

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