Marks Spencer Strategic Analysis
Contents
1 Introduction……………………………………………………………………………………….2
2 How M&S does business: “Plan A”……………………………………………………………...2
3 M&S performance………………...………………………………………………………………3
3.1 Group operating profits………………………………………………………………………3
3.2 Food market performance……………………………………………………………………4
4 Three C’s…………………………………………………………………………………………..5
4.1 Customers……………………………………………………………………………………...6
4.2 Competitors……………………………………………………………………………………7
4.2.1 Competitors Analysis Framework……………………………………………………….8
4.2.2 Competitor’s Current Strategy ………………………………………………………….9
4.2.3 Competitor’s objectives …………………………………………………………………10
4.2.4 Competitor’s assumptions………………………………………………………………11
4.2.5 Competitor’s resources and capabilities……………………………………………….12
4.2.6 New Entry………………………………………………………………………………...13
4.3 Corporation…………………………………………………………………………………..14
5 Internationalization……………………………………………………………………………...15
5.1 Mode of Entry ………………………………………………………………………………16
5.2 Food Internationalisation…………………………………………………………………...16
6 Conclusion………………………………………………………………………………………..17
7 References………………………………………………………………………………………..18
1 Introduction
Marks and Spencer is one of the most iconic and widely recognized British chain store in the UK with over 600 shops located throughout the country and 240 worldwide including over 219 franchise businesses, operating in 34 countries with a relatively high concentration in Turkey and Greece. Its business includes food groceries, clothing retail and home products generally all sold in the same shop, although during the last two years there was a large diffusion of simply food stores. The company employee over 75.000 people and during the 2007 the total revenue was 8588.1 £m.
This study will be focus on the company food market in UK and Ireland, with a final analysis of the company internationalization. We had analysed the actual organization current strategy and performance, considering the competitors environment and identifying the key
1 Introduction……………………………………………………………………………………….2
2 How M&S does business: “Plan A”……………………………………………………………...2
3 M&S performance………………...………………………………………………………………3
3.1 Group operating profits………………………………………………………………………3
3.2 Food market performance……………………………………………………………………4
4 Three C’s…………………………………………………………………………………………..5
4.1 Customers……………………………………………………………………………………...6
4.2 Competitors……………………………………………………………………………………7
4.2.1 Competitors Analysis Framework……………………………………………………….8
4.2.2 Competitor’s Current Strategy ………………………………………………………….9
4.2.3 Competitor’s objectives …………………………………………………………………10
4.2.4 Competitor’s assumptions………………………………………………………………11
4.2.5 Competitor’s resources and capabilities……………………………………………….12
4.2.6 New Entry………………………………………………………………………………...13
4.3 Corporation…………………………………………………………………………………..14
5 Internationalization……………………………………………………………………………...15
5.1 Mode of Entry ………………………………………………………………………………16
5.2 Food Internationalisation…………………………………………………………………...16
6 Conclusion………………………………………………………………………………………..17
7 References………………………………………………………………………………………..18
1 Introduction
Marks and Spencer is one of the most iconic and widely recognized British chain store in the UK with over 600 shops located throughout the country and 240 worldwide including over 219 franchise businesses, operating in 34 countries with a relatively high concentration in Turkey and Greece. Its business includes food groceries, clothing retail and home products generally all sold in the same shop, although during the last two years there was a large diffusion of simply food stores. The company employee over 75.000 people and during the 2007 the total revenue was 8588.1 £m.
This study will be focus on the company food market in UK and Ireland, with a final analysis of the company internationalization. We had analysed the actual organization current strategy and performance, considering the competitors environment and identifying the key
References: - All the Tesco information is available at: www.tesco.com (Accessed: March and April 2008). - BBG 2008. Consumer needs not being met by UK grocery market. [online]. Available at: http://www.britishbrandsgroup.org.uk/upload/File/Grocery%20needs%20summary%2097.pdf (Accessed: 17 March 2008) - Bnet 2000 - Datamonitor 2007a. Ready Meals in the United Kingdom. Business Source Premier [online]. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=27202470&site=ehost-live (Accessed: 29 March 2008) - Datamonitor 2007b - Guardian 2008. M&S cranks up international expansion. London . Available at: http://www.guardian.co.uk/business/2008/mar/20/marksspencer.europe?gusrc=rss&feed=worldnews (Accessed: 19 March 2008) - IBM 2007 - LIDL 2008. Official website. Available at:: http://www.lidl.ie/ie/home.nsf/pages/c.p.ps.Property_Offer (Accessed: 09 April 2008) - Lynch R - M&S 2008a Plan A. Available at: http://plana.marksandspencer.com/ (Accessed: 16 March 2008) - M&S 2008b.Annual Report - Ohmae K. 1983. The "strategic triangle" and business unit strategy. Business Source Premier [online]. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=6753780&site=ehost-live (Accessed: 17 March 2008) - Porter M - Porter M. 1998. On Competition. 1st Ed. Harvard Business School Press - PRNewsNow 2005 - Rhodri J. 2000. Growth Strategies in Premium Food & Drinks. Business Source Premier [online]. Available at: http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=27202470&site=ehost-live (Accessed: 19 March 008) - Swoboda B - The economic times 2008. Reliance eyes retail JV with Marks & Spencer. New Delhi Available at: http://economictimes.indiatimes.com/News_by_Industry/Reliance_eyes_retail_JV_with_MS/articleshow/2810670.cms (Accessed: 19 March 2008)