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Analysis (2017) establishes that analysing resources would contribute M&S to identify its competencies and the value of resources. It would help M&S to find out the gaps of available resources and sustainable and attentive usage of them which are necessary to gain competitive advantage . As shown in figure xx, M&S (2017) outlines its key resources as financial, products & channels, intellectual capital, people, stakeholders and natural resources which would support M&S to gain competitive advantage among its competitors. 13
Figure xx: Key Resources of M&S(Source: M&S, 2017)M&S commits to continue effective financial management by enabling the maximum returns to its shareholders. M&S (2017) has published that group revenue was £10.6bn and revenue from clothing was £3.8bn during the year. Though it was 2.8% down compared to previous year, M&S believes that its long term strategy of no promotion and discounts will succeed in the long run.M&S has strengthened its capital management disciplines during the financial year 16/17 and has gained a strong cash generation. Since they have already completed larger infrastructure projects in previous years, they have experienced less capital expenditure during the year. And accordingly, M&S was able to reduce net debt by £ 203.6m.14
Further M&S recognizes the importance of strong and satisfied shareholder base. During the year M&S returns £377.5m to shareholders by keeping the full year dividend £18.7p.As ets (n.d.) reveals, M&S has identified one of the secrets to its business success is the highly engaged employees. M&S (2017) also deliberates the importance of developing employees and their knowledge. Since M&S is one of the best retailers in the clothing industry, more than 85,000 people work for M&S in UK and overseas. They have been able to maintain 81% of positive employee engagement in financial year 16/17.Headline (2015) says that since M&S knows the importance of inspired team to keep up the good work which gains them the competitive advantage among its biggest competitors, they have already taken actions to celebrate efforts of their people and innovative recognition programs to keep the consistency of positive employee engagement. M&S highly concerns on the relationship with its customers. M&S (2017) believes that having a stronger and closer connections with a wide base of loyal customers will lead the company towards the success. Accordingly, high quality services are provided to customers. M&S (2017) says that 24.6 million customers have visited M&S stores in the UK during financial year 16/17 and average number of shops per year was 7.2. Further 8.3 million customers per week has reached M&S through M&S.com website. Therefore M&S has already understood the importance of having loyal customer base and started to conduct customer surveys, interviews and focus groups to get the real picture of what customers want from M&S.