Swot Analysis of Marks and Spencer During 1995-1999
Case Study on Marks and Spencer
Introduction
Marks and Spencer became a household name, first in its country of origin, the UK, and later internationally. However, the late 1990’s saw a reversal of fortune for this company. In this case study, we look at the relevant issues surrounding this decline and the initiative to turn this problem around. The topics that will be discussed include the business environment, resource and competence analysis, strategic leadership, culture, strategic options, managing change, and the future of Marks and Spencer.
Business Environment
The environment encapsulates many different influences. The difficulty is to make sense of this diversity. Identifying very many environmental influences may be possible, but it may not be of much use because no overall picture emerges of the really important influences on the organisation. Furthermore, there is the issue of the speed of change. Managers typically feel that the pace of technological change and the speed of global communications mean more and faster change now than ever before. There is also the issue of complexity. Managers like other ‘normal’ individuals try to simplify what is happening by focusing on those few aspects of the environment which have been important historically. (p.97, 98)
The strategy of an organisation is therefore, the result of decisions made about the positioning and repositioning of the organisation in terms of its strengths in relation to its markets and the forces affecting it in its wider environment. (p.40) We find that Marks and Spencer fell terribly short in revising its strengths within their wider environment, and this short-sightedness contributed to their slump.
A changing and unpredictable environment will generate a diversity of ideas and innovations because it will demand responses from organisations and they will vary. An organisation that seeks to ensure that its people are in contact with and responsive to that change is likely to generate
Introduction
Marks and Spencer became a household name, first in its country of origin, the UK, and later internationally. However, the late 1990’s saw a reversal of fortune for this company. In this case study, we look at the relevant issues surrounding this decline and the initiative to turn this problem around. The topics that will be discussed include the business environment, resource and competence analysis, strategic leadership, culture, strategic options, managing change, and the future of Marks and Spencer.
Business Environment
The environment encapsulates many different influences. The difficulty is to make sense of this diversity. Identifying very many environmental influences may be possible, but it may not be of much use because no overall picture emerges of the really important influences on the organisation. Furthermore, there is the issue of the speed of change. Managers typically feel that the pace of technological change and the speed of global communications mean more and faster change now than ever before. There is also the issue of complexity. Managers like other ‘normal’ individuals try to simplify what is happening by focusing on those few aspects of the environment which have been important historically. (p.97, 98)
The strategy of an organisation is therefore, the result of decisions made about the positioning and repositioning of the organisation in terms of its strengths in relation to its markets and the forces affecting it in its wider environment. (p.40) We find that Marks and Spencer fell terribly short in revising its strengths within their wider environment, and this short-sightedness contributed to their slump.
A changing and unpredictable environment will generate a diversity of ideas and innovations because it will demand responses from organisations and they will vary. An organisation that seeks to ensure that its people are in contact with and responsive to that change is likely to generate