In past era, retail market was termed as small outlet, they delivered products and services to clients according to their desires. But now, they transformed into supermarkets, malls and so forth. Retail procedure will be comprehend in various manner, such as offer qualitative items to customers as per their needs and for this, many distribution channels are using by them (Leigh and Blakely, 2016). Their fundamental aim is to generate maximum revenues. This assignment is based on Marks & Spencer, which is operating their business in clothing segment. They have to analyse market trends on regular basis so they will be able to capture attention of numerous people towards them. It assists them to obtain competitive benefits from rivals. In this manner, they will improve their market share as well as profits effectively and efficiently.
Overview Of Marks And Spencer
Marks and Spencer is a leading association which is established in United Kingdom, in the year of almost 1885. Their headquarter is situated in Westminster, London. Fundamental targets of this firm is to offer trendy cloths to clients. Founder of this organisation is Michael Marks and Thomas Spencer (Ruggie, 2017). On the other hand, they are having numerous stores across the world. In UK, they have more than 950 outlets in distinctive places. Apart from this, they are also selling food items to people and operating nearly 700 retail stores in United Kingdom. They grab opportunities from market which are accessible for them and in this manner, they will easily improve their revenues. As their goodwill is much effective; therefore, it is easy for them to keep up client base in an effective and efficient way.
Foremost target of Marks and Spencer is to capture attention of numerous people towards them who love fashionable clothing. They analyse market on regular basis so it is easy for them to modify products as per demands of people. This enables them in improvisation of profits and in addition production. Staff members of company are much trained; thus, they will cater effective services to people. As a result, they will maintain sustainability at marketplace for maximum period of time (Laseter and Rabinovich, 2016).
Manager of Marks and Spencer implement innovative ideas into products which will develop tough competition for rivals in market. Therefore, they will maintain brand image in market appropriately. In addition to this, they render training to workers on regular basis which assist into their retention. They are enlarging their business in other nations, such as Dutch, China, Austria, Germany and many more (Ridley-Duff and Bull, 2015).
Pest Analysis Of Marks And Spencer
To examine extrinsic market, superior of company will use PEST investigation and this will be understand by the following description:
Political: Organisation is operating their business in many countries; therefore, it is required for them to understand political situation of each place effectively. If there is any alterations in policy of regulatory body then this will render impact to entire working procedure either in a direct or indirect manner (Joskow, 2014). This will comprise modifications in tax rates, introduction of new policy and so on. This will influence profits and production of an enterprise. In context of Marks and Spencer, changes in government policies never affect quality of products which are offering by them to individuals. If political situation of any association is much stable then, firm will expand their business over there. In this manner, they will able to obtain success and growth at marketplace.
Economical: It will provide impact to process of decision making either in a positive or adverse manner. It is must for manager of Marks and Spencer to develop items for people as per their demands. If income of people is not much effective then, they will unable to spend more amount on products. Thus, it is must for firm to examine purchasing power of consumers in an effective manner. On the other hand, if there is modifications in exchange rates then, this will influence profits of an association as well because it will cater impact to value of items (Hackmann, Kolstad and Kowalski, 2015).
Social: It is considered as most significant element because it influences profits and production. This has been analysed that, each nation has their own culture which is following by them. Therefore, it is required for manager of Marks and Spencer to produce products accordingly. They will conduct research to know about requirements of persons. This helps them to accomplish their needs and in this manner, they will be able to improve their revenues effectually. It assists firm to take benefits from contenders at marketplace. There are many factors which will include into this, demography, attitude, value, trends and so forth.
Technological: Marks and Spencer needs to utilize latest techniques and tools; therefore, they will be able to manufacture products and services for people in an innovative manner (Vernimmen and et. al., 2014). This enables them to maintain brand image at marketplace for maximum period of time. Along with, they will easily survive at marketplace longer duration. This has been analysed then, if products are creative then, it helps to gain attention of numerous individuals towards them. In addition to this, they will maintain their customer base in an effective and efficient way. Superior of an enterprise will cater training sessions to their staff members; thus, they will utilize new techniques in a proper way. As a result, work will get accomplished within limited time span. Additionally, unwanted cost and wastage will get reduced for business procedure (Chudik and Pesaran, 2016).
Factors related to micro environment and it impact on Marks and Spencer:
Customer: Company modify their items and services as per requirements of clients which enable them to maintain sustainability in market for maximum time span. Superior will conduct research to know about consumers' desires as this assists them to take advantages from rivals effectually.
Employees: They are considered as most significant part of an enterprise who help them to accomplish their targets timely. Manager will provide some training sessions to them as this aids to improve their working performance. In this manner, they will produce qualitative items and will take advantages from contenders (Nepal and Jamasb, 2015).
Competitors: There are numerous contenders of company which are available at marketplace. In context of Marks and Spencer, they are suing effective promotional methodologies which help them to compete with competitors in market. This helps them to survive at marketplace for maximum time duration.
Investors: To enlarge business activities, association needs proper amount of finance as this aids them to accomplish targets timely. As reputation of M&S is much effective; therefore, it is easy for them to manage fund quickly. To convince investors, superior will formulate some plan and present to them. But if they will not attain coveted targets timely then, this will diminish their goodwill (Arnold, Landry and Reynolds, 2015).
Media and the general public: This component will influence business activities of M&S either in a direct or indirect manner. This has been seen that media will improve or reduce image of company. If they are paying bills, salaries and taxes on time then, this assists to maintain their reputation in market. But if they are failure into this, then it may impact to their brand in an adverse way (Bowen, 2016).
Changes Within The Micro Environment
Demands and requirements of individuals are changing on regular basis; thus, it is must for M&S to analyse it. It will either affect profits of firm or will provide positive impact on the mind of people. In recent time, preferences and taste of clients are modifying regularly; therefore, it is must for superior to consider this while taking judgement for firm. This helps them to attain desired targets in an effective and efficient manner (Frederick, Kuratko and O'Connor, 2015). There are various factors which will include into this, such as finance, research and development, marketing etc.
Instead of this, M&S will obtain latest methodologies and techniques into business as this enables them to take benefits from rivals at marketplace. It assists them to diminish workload of staff members as well. By using new tools, they will maintain quality of goods and services and in this manner, they will cater maximum satisfaction to consumers in an effective manner. It is required for firm to evaluate needs of people so they will alter their products accordingly. As a result, they will take benefits from rivals in market. There are many kinds of promotional techniques will be utilized by association which help them to get attention of many individuals towards them (Leigh and Blakely, 2016).
To enhance relationship with workers some strategies will be developed by superior. To improve involvement level of employees, manager will take their assistance in decision making process. To enhance their skills and abilities, training will be provided to them because this helps to reduce unwanted cost and wastage from business process.
Strategies And Tactics In Adapting Changes With Influence Of Macro Environment
As indicated by Ruggie (2017), this methodology will classify into many factors, such as cultural, social. Economical, competition, political, legal and so on. This has been analysed that framework of Marks and Spencer will get influenced by extrinsic components. Regulatory body of nation will alter tax rate with the aim of enhancing economic growth. It may provide impact to activities of affiliation as well. Thus, it is must for manager to take decision by analysing external surroundings as this helps them to improve production and profits.
The wheel of retailing theory:
This hypothesis is formulated by Philip Kotler and as per this, if an individual is going to start their business in retail sector then, it is fundamental for them to follow this cycle (Laseter and Rabinovich, 2016). This helps them to maintain sustainability at marketplace for maximum time span. There are some steps which are associated with this, described as below:
- Step 1: Less price, margin as well as goodwill
- Step 2: High amount, cost and effective reputation
- Step 3: In this step, retailer will analyse that their revenues are increasing without create any modifications in business
- Step 4: It is same as first phase because retailer is new in market.
There are many new organisations who are taking entry into marketplace in same segment as M&S. Therefore, it is essential for them to modify items as per needs of clients so they will be able to maintain their customer base and survive at marketplace for maximum time duration (Wheel of Retailing Concept, 2017).
It can be also termed as general hypothesis and this will cater opportunity to some retailer so that they will make some modifications; thus, they will take initiatives. In context of Marks and Spencer, they utilize this theory; therefore, they will obtain an appropriate decision for affiliation. Along with this, will attain coveted objectives and targets in a proper and adequate manner (Ridley-Duff and Bull, 2015).
Company has to use latest techniques and methods; therefore, they will alter items and services in an effective manner. This helps them to acquire success and development. New methodologies are much important for an enterprise as this will assist them into procedure of decision making. In this manner, they will easily gain positive results in forthcoming time. These elements will be micro or macro as well. This has been analysed that micro factors will comprise process, clients, public entity, market intermediaries and so on. On the other hand, macro components will include some forces, for example: legal, technological, cultural, social, demographical and so many. Public is considered as most important part which will provide influence on activities of marketing so that association will satisfy needs of clients through offering items to them as per their requirements (Joskow, 2014). For instance, if association is able to fulfil demands of individuals timely then, this aids them to improve their brand image in market. There are some example of public like, watchdog group and customer advocates which help to prevent association from an negative comments.
M&S is one of the leading firm which is operating their business in UK. They are providing items to people at affordable prices (Hackmann, Kolstad and Kowalski, 2015). As there is high competition at marketplace; hence, it is must for organisation to use some thoughts which are less costly. These are stated as below:
- Social media: This method will be utilized by affiliation as in modern era, numerous individuals are using social sites. This will reduce unnecessary cost of Marks and Spencer.
- Website: As company is having their own website so that they will offer items to clients with helps of this as well.
Business partnerships: This is not easy to comprehend culture of an enterprise as they are expanding their business across the world. Hence, they will acquire support of some local business persons to understand culture as well as trend of country (Vernimmen and et. al., 2014).
Marks and Spencer is attaining their targets and goals on continuous basis. Therefore, it is must for them maintain entire aspects which are connected to their segment so they will create circumstances into their favour. In this manner, they will be able to regulate business properly and in addition will fulfil requirements of clients timely. This enables them to improve profits of firm (Chudik and Pesaran, 2016).
Marks and Spence has to begin their business online as well because this helps them to maintain connection with numerous individuals in an effective manner. Along with, they will gain attention of many persons towards items. If they utilize digital techniques then, this helps them to provide goods and services to clients in distinctive nations. In this manner, they will be able to improve production and profitability in a proficient way. On the other hand, superior of company will obtain response from consumers. This assists them to improve quality of items and services. In addition to this, they will take an effective judgement for affiliation. With support of online outlet, M&S will easily introduce new merchandise to people. This is considered as most cheapest promotional technique. Fundamental target of firm is to capture attention of various persons; thus, they will increase revenues.
Instead of this, there are many social sites which will use by association, such as Instagram, Facebook, Twitter and many others as a promotional method. In recent time, many individuals are using these sites so if company is using it then they will grab attention if numerous people at a single time. As a result, they will maintain relationship with consumers significantly. Along with this, will improve brand image and market share properly. Resulting, this assists them to take benefits from rivals in marketplace.
From above assignment it has been comprehended that retail outlets are expanding their business on regular basis. They will alter products and services as per demands of people; therefore, they will be able to accomplish their requirements accordingly. It aids to improve their profits and in addition production. By fulfilling needs of clients timely they will keep up customer base effectively. In addition to this, they will capture attention of numerous individual as well. They offer items to individuals online also, which enable them to take benefits from contenders at marketplace. To examine extrinsic surroundings, manager of firm will formulate strategies appropriately. In this manner, they will achieve coveted targets and goals within limited period of time.
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