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Case Solution Of Mark And Spencer

3005 words - 13 pages

Part 01
Executive Summary
M&S as an organization has faced a number of challenges in its 130 year existence, but has successfully weathered each challenge as it presents itself with relative aplomb. The foundation upon which the whole business has rested since its inception in 1884 was in its initial form, involved selling carefully chosen, good quality goods with low margins, and achieving volume sales (relatively speaking, at least) through Michael Marks' Penny Bazaars in the North West of England. This strategy was overwhelmingly successful, and continued to be the central tenet of M&S strategy for many years.

M&S sailed through the depression and several recessions, but at the end ...view middle of the document...

To date, though there have been numerous changes in the strategies invoked by the company, its operations, to a certain extent, is still based on several principles: to offer a selective range of high-quality, well designed and attractive merchandise at reasonable prices; to encourage suppliers to use the most modern and efficient production techniques; to work with the highest quality control; to provide friendly and helpful service to their customers; to improve the efficacy of the business; and foster good human relations to its stakeholders. However, along the way they might have neglected to deal with the changes in the external environment as they focused on addressing the inner workings of their operations. This paper will look into the conditions surrounding that phenomenon.

Case Analysis Purpose
The purpose of analyzing the case is to find out how a successful business firm faces unexpected losses and challenges to hold on its past glory and profitability. A firm which faces no challenges and threats for a long time has shown its weakness at last and experienced the threat of hostile takeover and found some true competitors in its industry. This case also focuses how inertia and weakness in management leads a firm to hostile takeover. Our purpose is to find out its overall scenario and suggest it how to get rid of problems.


Part 03
Situation Analysis
General Environmental Analysis Several factors make up general environment. It helps a firm to do its business properly. If the general environment is not favorable then the firm faces threat of survival. Specifically, it looks at the political, economic, socio-cultural, and technological elements of the environment. More importantly, it allows the company the volition to exercise flexibility on the company and to serve as a safeguard in instances where major shifts in the trading environment take place. i. Political Factors The UK political environment basically encourages trade in its territory. It is generally accepted that any trade is allowed in the said region provided that it does not oppose public policy, public order, or any existing law in the land. This is reinforced with the inclusion of UK in the European Union and the World Trade Organisation. However, in the case of Marks and Spencer, one of the more troublesome political elements that they have to contend to deals with the issue of labour laws and industrial relationship. In the past decades, the development efforts sought by the company have been constrained by several infringements in labour laws not only in their local operations but also in their international initiatives. This is especially true in their operations in France where the company is charged of grave abuse and breaking of expressed labour laws. ii. Economic Factors The United Kingdom is one of the hubs of commerce in Europe. Consumers are not limited to the locals as a considerable number of tourists flock the streets on a regular basis....

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