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Affected by Business Activities and Practices of Mark and Spencer

University: UK College of Business and Computing

  • Unit No: 3
  • Level: Undergraduate/College
  • Pages 10 / Words 5000
  • Paper Type: Assignment
  • Course Code: L/508/2338
  • Downloads: 0
Answer :
Organization Selected : Mark and Spencer

INTRODUCTION

A business report is a kind of assignment used to analyze a situation and then apply different theories so as to produce a range of better suggestions and make necessary improvements. It examines potential and available solutions towards a specific problem or issues which are highly affected by business activities and practices. A multinational corporation is an organization that is doing business within more than one country (Buckley and Casson, 2016). The transactional firm produces, invests, serves,s and markets worldwide so as to gain benefits from global markets. Large corporations have made investments in several nations so as to become a powerful driving force in the global economy. But in order to accomplish their goals and objectives, it is fundamental for every MNC to have unity of control upon its business activities and branches in foreign countries. But in this competitive era, business organizations tend to focus on better quality services or products so as to make them able to compete at the world's level.

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The present assignment is based on Mark and Spencer, it is one of the leading British retailers by having a long-lasting history in UK markets. The first store of M&S was opened in 1884 and as of 2016, there were 950 stores had been located in the UK whereas 450 stores situated worldwide. In order to gain high market growth and success, this business association tends to develop high-quality and value-added brands in past decades. Basically, Mark and Spencer specialises in selling of home, electronic, clothing and luxury clothes, it also began to sell branded goods like Kellogg's Corn Flakes in November 2008. It was very first retailer in British by making pre tax profits over £1 billion. The firm sells women wears, kids wear, menswear, beauty and home products, serving customers through approximately 300 full-line stores and Website, M&S.com. On the other hand, the mission statement of Mark and Spencer is to emphasis on financial and retail service operations and driven up the strength so as to improve efficiency, reduce costs and enhance customer satisfaction level and loyalty. The vision statement of the firm is to be world's largest retailer of clothing and home products by winning customers' hearts and faith.

Apart from this, this report will describe a comparative analysis of the company so as to determine market position in several market. There are so many competitors of Mark and Spencer, such as– TESCO, ASDA, ZARA, Morrisons, Wait-rose, John Lewis, Next, H&M, Burton, Sears Plc, Store house etc. in which TESCO is one of the major competitor of the company as its market share is 30.6%. Although in clothing market, market share of Mark and Spencer is 43% whereas in food market, it is 10%. Arguments will be made which a firm needs to consider while trading over the broad; it is relation develop several strategies order to assess all those factors which have direct and indirect impact on business activities and practices. Beside this, Porter's five forces will also be done so as to recognise competitive position of a firm in target market and recognise those areas which must be improved. Furthermore, different theories will be also described which support a business to enhance its market area.

MAIN BODY

(a) Comparative analysis

In today's market, every companies face high competition due to other organizations operate their business in same areas. In this, it is important for firm to analyse the market and its trends which may leads in attaining better success. Along with this, competitive analysis is consider as an important part for every business organization in which they have to evaluate as well as determine trends to serve quality services in order to attract number of customers in appropriate way (Crane and Matten, 2016). With the help of analyse competition, company easily operate their business and attain desirable goals and objectives in appropriate period of time. In addition of this, firm also evaluate the competitors strength and weaknesses to effectively formulate the ways for attaining better success in competitive market. Basically, competitive analyse of the company is play vital role in determining the actual position of the company in market place. This will help firm to enhance their operations and activities by delivering quality services to its customers at affordable cost as compare to its rivals. It helps in establishing strong place in market place.

For analyse the competition at market, various ways and process are used by the company to determine the actual position of this company. Along with this, competitive positioning is all about defining that how company is differentiate from others and create their own values to attain competitive advantage in market place. This play vital role at every process of development of the business. As a multinational company, Marks and Spencer is a famous and biggest retail business organization which operate their activities in various location with the aim of attaining better success. In this they also face high competition at market place because number of companies are operate their business in retail sectors and also give high competition (Czinkota and Skuba, 2014). For this, firm use Porter's five forces of competitive Position analysis to evaluate the actual position at market. This theory is highly related with five forces which define attractiveness of a market (Dowling, 2014). With the help of this, company easily understand their strength of their own company and competitor as well. Along with this, it also determines ways in which company improve their performance by overcome from their weaknesses in effective manner. In this context, description of Porter's five forces are there which may leads in determining the actual position of the company in UK:

  • Threat of new entrants (Barriers to entry):In UK retail market, number of new entries are invest huge capital to enter in new market in order to achieve better success in market place due to low new entrants. As Marks and Spencer is popular company in which they focus on their quality of products. Basically new entrants in market define new and innovative ways to capture larger market share form its rivals by providing quality services to its customers. In this context, company use lower pricing strategy, reducing cost and delivering new values to its customers in order to attain higher success at market place. Along with this, Marks and Spencer also manage all the market issues and build their positive brand image at market place. In addition of this, by delivering new and innovative products, company easily bring new and old customers within their business organization which may leads in attaining competitive advantages for its rivals.
  • Threat of substitute products:In market place, company needs to continuous innovation for maintain their strong brand position at market place. With the help of this, firm easily meet their customers needs and demand by proving them quality services. Overall, threats of substitute is low because there is no substitutes is foods and clothing. Along with this, it is very easy for other company to copy design and deliver the same in minim cost. In this, the food business is already compete by various big companies such as Sainsbury, Teso, Asda and many more. All these having same range of products. In this context, there is high threat of substitute.
  • Bargaining power of buyers:Under this, the bargaining power of buyer is high because customers are sensitive towards the products price due to uncertain income. In addition of this, Marks and Spencer build their image strong and loyalty of customers as well by delivering them quality products and services as per their demand (Hahn and Gold, 2014). Along with this, company also serve various offer and discount to their loyal customers in order to attain their higher satisfaction which may leads in attaining higher competitive advantage in current market. For attaining strong place and market place, Marks and Spencer have to coming up with new and innovative products which helps in improving their performance level and customers base as well.
  • Bargaining power of suppliers:In this, Marks and Spencer is not dependent on suppliers to buy raw material because they sells their own branded products. Due to this, the bargaining power of suppliers is low (Harangozó and Zilahy, 2015). With the help of this company easily increase its profit margin by providing quality services to their customers at affordable cost. Along with this, by building effective supply chain company easily enhance overall sales as compare to its rivals.
  • Intensity of competitive rivalry: In UK retail market competition is very high because number of super markers are operate their business in fashion and food products. This will create issues and challenges in front of company to enhance their profitability. In this context, Marks and Spencer also used online sales for offering their quality services to its customers which may leads in improving their performance level and at the same time also create strong customers base. By delivering unique and quality products and services to its customers, company easily attain better success in market place by competing its competitor.

On the other side, Marks and Spencer also operate their business in India as company might going to face certain problems while operating over there. Thus, to determine such aspect, business will going to organise their Porter Five force analysis for evaluating competitiveness in such define market world:

  • Threat of new entrants (Barriers to entry):As Marks and Spencer also comes in India market with the aim of attaining higher success in retail sectors. In this context, threat of new entrants are much high because number of retail companies are also enter in India market to attain higher profitability level. Mainly, company offer clothing item to their new customers as per their needs. Along with this, number of other companies also compete Marks and Spencer in same areas (Hoenen and Kostova, 2015). For this, company needs to make their process innovative and attractive as well to attract larger number of customers over there.
  • Threat of substitute products:Under this, mainly there is no substitute to clothes but in context with Marks and Spencer it is relatively high as customers have many options available in the market which they can choose as per their choices and preferences. Therefore, it is required that company manufactures their products according to the current market situation so that they can pull attention of maximum number of customers. With the help of this Marks and Spencer easily enhance their profitability level at market place (Hussein, 2015).
  • Bargaining power of buyers:Under this, number of customers are there who wants to buy quality clothes in which company have to deliver quality products to its customers as per their needs and wants. As company needs to offer new and innovative products and services as per customers needs and wants which may leads in attracting number of customers. In this context, company also offer their services at affordable price which will help firm to attract number of customers towards their products and services. Along with this, they also provide discounts and offers to its loyalty customers which may leads in attaining larger profitability level at market place.
  • Bargaining power of suppliers: In this context the company have number of choice to buy quality raw material. Thus the bargaining power of suppliers is low because company offer as well as manufacture their own branded products to its customers by considering their needs and wants. This will helps in attaining customers attention towards the profits and services in order to attain desirables profitability level. With the help of this, Marks and Spencer easily increase their profit margin and at the same time also improve their performance level at market place.
  • Intensity of competitive rivalry: Marks and Spencer operate their business in competitive retail industry in which number of companies are give higher competition at market place by serving same products and services to its customers as per their needs and wants. In this context there are various competitors who operate their business in same sectors such as Zara, John Lewis and many more. All these are enter in market with similar quality products and services with affordable price which may show high competition at market place (Kleinert, Martin and Toubal, 2015). For attaining profitability level, company needs to produce quality products with affordable cost may leads in enhancing profitability level of the company.

Thus, Marks and Spencer operate their business in various countries with the aim of increasing their market share. In UK market, company having strong position as they offer number of food and clothing products and services as per customers needs and wants. In addition of this, Marks and Spencer also compete their rivals by analysing their competition at market place. On the other side, company also operate their business India market with the aim of attaining better success. But as a new market, sometime they face various complexity while operating their activities (Kolk, 2016). In addition of this, company easily expand their business because the market of India is wide. In this, various opportunities are there in which Marks and Spencer easily established their string brand image. With the help of this, company can attain higher profitability level in appropriate way. In addition of this, by using Porter's Five Forces, firm easily easily determine the competitive position in market place.

(b) Issues consider by company at the time of trading across borders

Every business organization wants to operate their activities at global level with the purpose of attaining higher success. Thus, it is important for companies to effectively manage their entire activities as well as procedures at the time of expanding their business activities. With the help of this they easily attain desirable results. In addition of this, while trading the business across borders, company needs to evaluating the process which may leads in maintaining their performance level in most effective manner. For expanding their business, company required to consider all the issues and problems which may creates negative impact on business organization. Thus it is important for company tom effectively understand entire challenges in order to attain favourable results. In this context there are some issues and challenges which faced by Marks and Spencer needs to consider when trading across the borders are as follows:

  • Transfer price: It is important for business to set their transfer price as per regulatory bodies and its policies. Basically it is consider as an internal price of the company which set by the them to trading across the borders. It is comes under a legal term which framed by the regulatory body at the time of trading the business in another countries. With the help of this, company easily reduce the issues that occur in front of company (What are the major challenges to a business trading across borders?, 2017). In context of Marks and Spencer, they also charge transfer price to make their process effectively which may leads in improving the performance level and profitability level as well. In case if company does not charge transfer price then they face numerous issues which may reduce their goodwill and brand image in another countries.
  • Cultural differences: It is also consider as an major issue which face by Marks and Spencer at the time of trading across the borders. Due to different culture in another country like India, all the customers having their specific needs and wants towards the clothing products. So that, it is important for the company to effectively understand the culture of the India before expanding their business which may helps in enhancing their profitability level as compare to its rivals (Jasimuddin, Connell and Klein, 2014). Basically, it includes various language, beliefs, behaviours, taste, preferences and many more which directly affect the operational activities of the company. For attaining better success at market place, company needs to consider all these at the time of operating their business in another countries. With the help of this they easily serve quality products and services as per customers needs and wants. By conspiring all these company easily trade their business in another countries which may leads in enhancing the profitability level at market place and at the same time also invite larger number of customers over there.
  • Legal compliance: It is one of the important aspect which needs to be consider at the time of expanding as well as trading in across the borders. For attaining better results, it is vital for Marks and Spencer to consider all the necessary laws and regulation within their operational activities which may used by the firm for training their business effectively at global level. With the help of this company easily enhance their profitability level and also successfully operate their business at another countries. Along with this, government formed number of laws and regulations at the time operating their business in another countries in which company have to consider with the purpose of attaining better success and profitability level as well. As per government of India, has sets some rules like, when a foreign multinational company comes in Indian market to do business, laws states that these organisations can only own 47% market share. As they operate their business with the aim of attaining desirable growth in market place by delivering quality services to its customers as per their needs and demands.
  • Find right stakeholders: For attaining higher success in another market, it is vital for Marks and Spencer to choose right stakeholders which may helps in improving the overall performance level of the company at market place (Maylor, Blackmon and Huemann, 2016). Mainly, stakeholders of Marks and Spencer are customers, suppliers, and business man all these are important for them to effectively consider at the time of operating their business at across the borders. For example, if company comes with the perfect business partner then they effectively make make their business productive and at the same time also increase the chances of attaining higher profitability level. With the help of this company easily increase their market share by delivering quality services to its customers (Moore, 2016). In addition of this, selection of best suppliers is also important for Marks and Spencer as they buy quality of raw material at affordable cost. With the help of this company produce as well as manufacture quality goods and services for their target customers in order to attain better success at Indian market. In context of thus, number of customers are there who having their specific taste and preferences so that it is necessary for Marks and Spencer to undertake an effective research before manufacture products to understand the customers needs and wants. With the help of this company improve their market share and at the same time also capture larger market share form its rivals. Thus by selecting, right stakeholders company easily maintain their positive brand image at market place.
  • Poor infrastructure: It is also consider as an major issues which faced by the company at the time of trading across the borders. Due to poor infrastructure, company face many problems like building, roads, water supply, power supply, tunnels, telecommunication and many more. All these are take for delivery which ultimately enhance their cost of the products and services that they are offering to their customers. So that, it is important for Marks and Spencer to effectively analyse as well as evaluate entire infrastructure where they are set their business with the aim of attaining better success. If they does not consider effectively then they reduce their goodwill in new market.
  • Political condition of country: It is important for every business organization to consider the political factors within their activities at the time of trading in new as well as across boundaries. For attaining better results, it is important for Marks and Spencer to effectively understand political condition of country where they wants to trade business with the purpose of attaining better growth. Fluctuations stays there in political factors of India which directly put impact on growth of a company if it is willing to expand business in India (Muratovski, 2015). So that it is important for Marks and Spencer to effectively consider and implementation within their activities to attain better growth at market place. Along with this, it is important for manufacture to ensure their products which may leads in increasing the profitability level of the company at market place. This will aid in capturing larger market share form its rivals.
  • Supply chain: It is important for company to manage their supply chain which may leads in improving the performance level of the company at market place. Supply chain management is consider as an important aspects which helps in producing the quality finished goods, work in process, inventory, raw material and many more (Neelankavil, 2015). This will aid in improving the sales of the company in new market. Basically, it include controlling, monitoring, designing of supply chain which may helps in attaining set goals and objectives in appropriate manner. If supply chain of Marks and Spencer is much effective then they easily deliver as well as supply quality services to its customers and attain their positive response. With the help of this, company easily improve their manufacture process which may contribute in attaining better success in Indian market.
  • Low economic growth of country: Under this, economic condition of India is growing in which every business easily attain better growth at market place. Currently, India holds a rank amongst top most developing countries in the world because of which country is welcoming different companies so that they can establish their business. Foe example, if economic condition of the India is not much good then Marks and Spencer face various issues at the time to trading so that they have to manage their goodwill in effective manner and also formulate their activities according to the customers. As India is growing country then Marks and Spencer easily enhance their productivity level and at the same time also enhance their profitability level by delivering quality services to customers as per their needs and wants.
  • Use advance technology at expanding: For attaining better success at market place, it is also consider as an vital aspect to use new and advances technologies at the time of trading across the borders. It directly increase the overall cost of the company. Thus, its vital for Marks and Spencer to effectively implication as well as transformation of all the digital technologies within their business activities to attain better success at market place. It also helps in serving quality products to their customers by considering their needs and wants (Neubauer and Lank, 2016). With the help of this, company enhance their overall image at market place and also attract larger number of customers.

Thus, all these are major issues which consider by Marks and Spencer at the time of trading across the borders. By implementing all these company easily manage their activities in order to effectively operate their business in another countries. As Marks and Spencer is famous as well as popular retail industry they operate their business in another countries with the purpose of attaining better success. By this company easily enhance their market share and customers base as well.

Needs to be considered in order to enhance their business

In order to operate the business in a proper manner it is essential that company uses all the resource so that they can manufacture the goods according to the current market situations. For this, Marks and Spencer is going through the market condition by evaluating the nature and behaviour of customers (Peng, 2016). Managers can use various factors so as to enhance their business operations. Therefore, some of the points are given below so as to identify the factors in a better manner:

Evaluate the situation: Under this step it is prime duty of managers to determine the sectors that are required to be changed so that changes and alterations can be made. Thus, this will enable them in knowing the elements that are creating problems in the entire business operations. For this, Marks and Spencer can utilise various tools that are mentioned below so as to understand it in a better manner:

SWOT analysis: It is determined as one of the technique that is used in order to evaluate the effective results through this company can get to know about the strengths, weaknesses, Opportunities and Threats which can affect the business internally or externally. Through this they can make proper decision in future operations.

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The function of HRM and Marketing - Marks & Spencer

Benchmarking: This is considered as an effective approach which assist the organisation in comparing the strategies that are applied by the different companies. Thus, it is helping the Marks and Spencer in growing according to the current market situations. It is gradually increasing the sales and profitability at the same time.

Market research: It is done in order to know the environment that are present in the market, this can be attain by gathering information for a making appropriate business strategy (Reverte, 2015).

Trend analysis: It is optimised so as to collect relative information on a regular basis this will enable Marks and Spencer in getting better outcomes as per the current market situations.

Set Clear goals: It is important for company to set their specific goals in which they operate their activities accordingly which may leads in improving their overall performance level (Villasalero, 2014). Along with this, company have to operate their activities as per targets and strategies which may leads in attaining set objectives in most effective manner.

Evaluating the strategies through which goals can be achieved: It is important for Marks and Spencer to determine the current market situation where company operate their business. By this company easily make effective strategies in which they easily improve their business with the aim of attaining better success. Thus, it is important for manager to effectively use strategies to attain better success at market place.

Developing plan for applying strategies: In order to accomplishing objectives of company, it is necessary to Marks & Spencer form to create better strategies and also execute them in better manner (Wilson and Wilson, 2017). It will be helpful in getting better outcomes. In addition to this, planning is essential and it is also necessary to include some factors such as time frame, resources, outcomes and responsibilities.

In context to improve performance of company, there are some factors given below which need to consider by Marks & Spencer organisation:

Professional development

This factor is business is concerned with giving values to its existing consumers which are already purchasing goods of Marks & Spencer organisation in context to increase profit level and productivity. This firm regularly innovate new ideas or thoughts to develop the new goods for increasing consumers footfalls. This factor gives many benefits to business of company and also helpful in gaining competitive advantage to business through which firm can expand its business in better manner. Get the best online assignment help in UK.

High quality products/services

Marks & Spencer is offering better quality of services as well as products to consumers and it also deal in the retail sector. If the quality of goods will be high, then in this case large number of consumers will be attracted towards firm and firm can compete with its strong competitors at market place. In order to developing effective plans, manager of this organisation includes all necessary factors. The main focus of Marks & Spencer organisation to offer better quality of services and also fulfil their demand in an effective manner (Voss, Albert and Ferring, 2014). At the time of implementing plan, manager of this company include its staff members in implementation process at workplace.

As Marks & Spencer deals in retail sector so it provides different services of goods to people like for an instance clothing, groceries, books and many others. This company also produce eco- friendly goods in order to save an environment (Wells, 2016). The cost of this firm products are reasonable so every person can avail them in a better manner. are manufacturing are expensive but now planning to produce commodities for middle class people as well.

CONCLUSION

As per the above mentioned report, it get concluded that multinational corporations in UK are growing rapidly with an aim of increasing their market area and market share as well. It is essential for business organisations to acquire different corporate strategies but the goals and means to accomplish them can differ as per the customer size as well as the market adaptability in several countries. All these policies supports companies like Mark and Spencer to enhance their market area and attain high competitive edge in a certain time period. The business report has contained different theories which can be used by management in order to enhance its business. Mark and Spencer has prepared a business report so as to arrive at a better conclusion and then make recommendations for future activities or actions. By applying Porter's five forces model in present situation, helps organisations to find their market value and develop corporate strategies accordingly. The model defines five elements which gives shape to every industry and aids to identify strength and weaknesses of a company. In encompasses five determinants, such as - threats of new entrants, threats of substitutes, bargaining power of customers, bargaining power of suppliers and competitors in the industry. Many multinational companies frequently conduct such analysis to implement corporate strategy and the model also helps an economy to search attractiveness and profitability. For example- bargaining power of customers deals with capability of buyers to drive prices down. It signifies number of target audiences of a firm, significance of each customer and how much it worth to be from switching one country to another.

On other hand, the report has also dictated doing a business internationally complies several requirements, each and every procedure which is related with import and export should be recorded. Mark and Spencer is a growing retailing firm which also trades internationally. Thus, it needs to consider several issues so as to become successful in new markets, such as – constant regulation changes, lack of harmonised standards, long time of market and high compliance costs. Thus, business associations are required to prepare an effective strategy so as to identify and satisfy regulatory requirements which makes enormous savings and minimise the impact on time to market. As regulation is constantly being updated and increased, such strategy must be employed to ensure product compliance. Therefore, the entire business report of Mark and Spencer signifies that how the corporation can attain high competitive edge and improve its functional areas in other countries.

REFERENCES

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