Critically Evaluate Change at Marks Spencer - 5311 Words

Abstract Marks and Spencer (MS) p.l.c. is one of the largest retailers in the United Kingdom with a selling space of 12.5 million square feet, was established in 1884 as ‘Penny bazaar’. MS sells clothing, food, footwear, gifts and home furnishings in its 760 stores around the world. The company’s wholly own and franchise stores operates in Europe, Hong Kong, Far East, Australia, Middle East, the Bahamas and Bermuda making a total of 34 countries. This report critically evaluates the changes at MS from the mid 1980s to current day. Initially it assesses and outlines the macro and micro environmental factors. Under macro environment the substantial competitive growth is explained using internet technology and globalisation. Under†¦show more content†¦Figure 1: GDP growth of the UK since 2002 Source: National Statistics (2007) According to Turban and King (2003), internet technology renders retailers an additional channel for branding, transactions and customer relationship management, the adaptation of which may drive down retailers’ transaction costs, and ensuring faster and higher quality of customer interactions, resulting in enlarging the existing markets and consumer base. MS realizes this and have tried to sell clothing via high street stores as well as via internet though they have experienced cost cutting, rationalisation and management changes in order to revive their business in recent years. Internet technology might enable sustainable competitive advantage, but problems remain on how to physically organize their online retail operations. As argued by Eaton (2001), globalization is an enterprise management feature, which increases liberalization of international trade and international competition. Needless to say, nowadays most of senior managers tend to plan their companies to go worldwide. In the early 1970s, MS expanded its international operation to purchase a 50 per cent shareholding of three Canadian companies for the first step. In November 1997 the company announced a 2,100 million GBP plan for global expansion which would be across Europe, the Far East and the Middle East (Bevan, 2002). 2.2. Micro Environment This part adopts Porter’s (1985) five-forceShow MoreRelatedStrategic Role Of Human Resource Management1550 Words   |  7 Pagespracticed in UK’s one of most known retail brand Marks Spencer. The company has been performing consistently well since its commencement. 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