Marks spencer company essay
Value Chain Analysis A value chain analysis is a strategic tool use to identify the activities in and close to an organisation which lead to the creation of a product or a service.
This created a period of change for the whole organisation. The paper concludes with a value chain analysis which examines inbound logistics, operations, outbound logistics, marketing, and sales and services.
The problems to date so far include, their profits halved, they have lost some of their best directors, they are nearing to financial ruin, and yesterday they reported the sharpest profits decline in its history For example, in the food market, there are four main supermarkets, such as Tesco, Asda, Safeway and Sainsbury Ocr, The recession had affected the retail industry heavily with a decline in foot fall and ultimately a decline in profits.
Marks and spencer value chain analysis
The whole interactive appraisal process is beneficial as it aids employees in developing a focused vocation trail. However, despite its successful specialist positioning, Beginning in the s and more recently as a result of the recession in , the company has faced both a decrease in sales as well as increasing competition from online retailers, discounters, fast fashion brands and others in both its clothing and food businesses. Marks and Spencer takes an interview with only one interviewee each time. However, despite considerable barriers to entry, the company is facing incoming competition in both its clothing and food sectors. Then, the company was aiming to offer something for everyone with better price, better quality of products and deliver quicker. However, weaker consumer confidence following the Brexit vote Reuters, is likely to affect sales growth and result in the company cutting its prices and focussing on its consumer needs. Over the past five years, there have been changes in the management committee. This would enable their employees at the remaining levels to be more responsible and have more accountability than before. Their chain started of with the buying team, design, developers, merchandisers, technologist, suppliers, logistics, and lastly the store. According to recent research undertaken by the Company, it shows that, in clothing, Mark and Spencer has a clear lead over all its major competitors in the key areas of fit, quality, trust, breadth of range and customer service Increases in price of factors of production directly affect budgeted cost of production. The company tried to focus on Europe, because the company mainly owned stores in the UK, Republic of Ireland and franchises in Continental Europe. The company had incorporated their own style and image which their competitors could not comprehend to. Legal Factors Health and safety regulations, consumer rights, environmental, antitrust and other legal factors affect the company. There are also problems with focusing on the right targets markets in terms of products and customers.
In addition, the competitive retailing landscape is going through another major transformation — the steady rise of online and catalogue shopping and competitors offering goods of almost the same quality at affordable prices as well as convenient and enhanced in-store experiences for customers Retail Week, Intext marketing was firstly used by Marks and Spencer, which means sending the company brand name to target customers.
Customers are getting used to accept the model and adapt it to their daily lives, and the demand for this kind of products would be increased in the future.
based on 63 review