Examining Marks And Spencer Group Plc Business Essay

Examining mark And Spencer Group Plc Business EssayThis report examines the mark and Spencer Group Plc. It begins with the main objectives and purpose of the scheme and follows with the key features of the organisations Business Environment. It then goes on to analyse the impact of European economic and political consolidation in terms of trade. mark and Spencer Group Plc was founded in 1884 by Michael Marks with the opening of a Penny Bazaar stall at Leeds Kirkgate Market. To sidereal day it is one of the UKs track retailers with over 600 stores nationwide. In addition to its successful UK business it holds an expanding international business which comprises of over 295 stores throughout 41 territories.Marks and Spencers core business is general selling (clothing and home) and food. Its main competitors argon Waitrose, Tesco, Asda and Primark.2. Define, list and explain the main objectives and purpose of the organisationMarks and Spencer has five key principals which define ho w it runs its business these areQuality judgeServiceInnovationTrustThese five principals are fundamental to the success of the business and they remain as important today as they have do over the past 125 years.Marks and Spencers core objective is to ensure their brand will treat to offer Quality, Value, Service, Innovation and Trust.One of the aims of the business is to mitigate value, without compromising on quality.Mark and Spencers uppermost priority is to lead the business through the recession whilst continuing to invest for the long term. Six objectives were put in place in November 2008 In order to achieve this and are as followRetain their market leading position in GM correct their performance in foodDrive their international businessOptimise margins and tightly control costMaintain a strong balance opinion pollUphold high ethical standardsMarks and Spencer intend to be the worlds most sustainable business by 2015. This target is to be achieved through their Plan A com mitments.(187)3. Identify and explain the key features of the Business EnvironmentThe Business Environment is a combination of internal and external factors that affect an organisations ability to operate, grow and continue to exist. The Business Environment can be divided into the micro-environment which consists of customers, employees, suppliers, shareholders, media and competitors and the macro-environment which includes regulations, establishment activities, the economy, demographics, social and cultural factors, innovations, and technological developments.In order to ascertain the Business Environment of an organisation a number of strategic tools can be used. A SWOT synopsis can be effective in identifying an organisations strengths, weaknesses, opportunities and threats, whilst a PESTLE analysis can be valuable in analysing an organisations macro-environment.(106)SWOT analysis of Marks and Spencer Group PlcStrengthsWeaknessesUnrivalled reputation for Quality, Value, Servic e, Innovation and TrustUKs biggest clothing retailer outmatch UK retail websiteDiverse range of products clothing , food and wine, home and furniture, technology, flowers and gifts and financial productsLeading premium quality food retailerBrand awarenessConsumers recognition of MS is that their products are highlypricedConsumers perception of MS is that they are not always in touch with the latest fashion trendsReduction in coin back guarantee whilst competitors are increasing theirsLeading shareholders furious over Rose and Bolland salary packagesOpportunitiesThreatsGrowth of international markets in particular IndiaThe world has an senescent population M Ss core target market is already the older generationProduct diversification into Home Energy Services, Telecoms and MS-branded cosmeticsAbility to reach innovative target market through reinvigorated advertising campaigns aimed at younger generationEconomic conditions remain uncertainDecline of the high street imputab le to consumers doing much of their shopping onlineCompetitor product ranges which directly compete with M S food such as Tesco finestCompetitor Asda to offer 100 day money back guarantee on its George clothingTakeover bids(204)PESTEL analysis of Marks and Spencer Group PlcPoliticalKey political factors that are of relevance to Marks and Spencer are as followGovernment type and stabilityThe imminent general elections are to some extent going to leave many businesses life a high degree of uncertainty. Trading will get tougher this year as taxes rise and public spending falls to bring down government debt.(51)EconomicKey economic factors that are relevant to Marks and Spencer are as followEconomic conditions affect how easy or how difficult it is to be successful and profitable at any time because they affect both capital availability and cost, and demand.(28)SocialKey social factors that are relevant to Marks and Spencer are as followAging populationMarks and Spencers has always be en seen as an organisation whose target market is the older generation. The population of the UK and the world in general is continuing to age. Figure 1 below shows the increase in which the UK population will age by 2033.(46)Figure 1Ageing instant(prenominal) increase in the oldest oldPopulation by age, UK, 1983, 2008 and 2033Office for National Statistics (2009)TechnologicalKey technological factors that are relevant in assessing Marks and Spencer are as followMarks and Spencer were the first company in the world to use revolutionary teardrop trucks. The trailers are capable of carrying up to 16% more load and the aerodynamic shape offers a 10% reduction in fuel consumption.Xerox solid ink technology helps Marks and Spencer with Plan A commitments.(49)EnvironmentalKey environmental factors that are relevant to Marks and Spencer are as followWeatherAdverse weather conditions in the UK have had a devastating effect on businesses up and down the country.(18)LegalKey legal factors tha t are relevant to Marks and Spencer are as followEU legislation has recently been introduced to protect theMarks and Spencer has become the first high-profile retailer to be hit by new Prosecco regulations after 14,400 bottles of its Rosecco brand were seized.The market complex body part of Marks and Spencer can be considered as perfect competition. (13)PORTERS 5 FORCES analysis of Marks and Spencer Group PlcCompetitive rivalry within the industryThreat of new entrantsCortefiel launching standalone stores in competitive UK market(8)Bargaining power of suppliersBargaining power of customersThreat of substitutes4. Analyse the impact of European economic and political integration in terms of trade5. Conclusions