History of the Marks and Spencers company

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Marcas and Spencer p.l.c. he is the greatest retailer of the United Kingdom, with almost 300 company-had warehouses of the marks and of Spencer (M&S) in its inner market. The warehouses sell the homemade clothes, footwear, gifts, furniture, and the food, with many of these articles sold under trade name of the St Michael of private-label of M&S. The company also has and works almost 100 additional warehouses of the marks and Spencer in Europe, Hong Kong, and Canada, and the licenses 85 warehouses of the marks and Spencer in Europe, the Far East, Australia, the Middle East, the Bahamas, and Bermuda. The marks and Spencer also have the chain of Brooks Brothers of the warehouses of clothes of the men, that consists of more than 170 units in the United States and Japan, and 20 of the warehouse, - Jersey - based chain new of the warehouse of the grocer's of kings Super Markets. The unit of the marks of fast crecimineto and financial services of Spencer offers to its clients credit cards, the personal loans, safe of life, and the savings, investment, and the retirement plans . Near 17 percents of yields of the marks and Spencer they are generated outside the United States.

Marks 1894 of Michael, taken 1859 in ghetto Jewish in Slonim in the Russian Polish province of Grodno, Spencer, taken in Skipton, Yorkshire entered a society with Tom, in 1851, with Spencer paying £300 his half-part. Ten years previous, marks, traveling salesman, it had opened his first shutdown in a table of the small horse in the market of Leeds, selling a range of the cheap merchandise appraised everything in a penny, including per to us of the hair, dyes of the car, and graphite; they say to have paid to 18 pennies the privilege to him. Tom Spencer, teller for the retailer Isaac Jowitt Dewhirst of the textile of Leeds, was experienced accountant, and Dewhirst had helped marks teaching it English and providing with him small loans.

Rayner was president of the company as of 1984 to 1991, and in that time several significant events happened. In 1985 they sent the marks and to the Spencer Chargecard by all the nation in the United Kingdom. Meanwhile, the chain of the marks and Spencer was extended to the foreigner and in the country, with the company-had and concessionary units. The M&S warehouses debuted in Greece and Portugal in early years 90 with the agreements of the license, followed by openings of the license of mid-1990s in Denmark, Austria, Hungary, Malaysia, Thailand, Turkey, and the Czech Republic. In the company-had front of the warehouse, the significant bottoms were destined to extend the presence of the chain in two nations of the main support in the continent: France and Spain. In end of 1996 the first M&S store in Germany opened in Colony, with three additional units to open itself in Germany by end of 1998. Two warehouses were opened in Seoul, South Korea, in the 1997 means. Behind in the United Kingdom, the company announced in 1997 July that would pay to PLC £192.5 the million (E.E.U.U. of the organization of Littlewoods $323,1 million) to acquire 19 warehouses, that would be turned to the warehouses of the marks and Spencer. Another agreement of the license was signed behind schedule in 1997 towards the opening of the first Australian unit of M&S by end of 1998. The additional concessionary debuts were to happen in Dubai and Poland, with the company also investigating Latin, Chinese America, Japan, and Taiwan.

Main events:

Q.1 what was bad in M&S?

Q.2 how did it lost tact with its clients?

Q.3 which are the main strategies to surpass the problems?

Q.4 from now on which the future is predicted of M&S?


Analysis of the main body

Internal and corporative valuation

An internal and corporative analysis in terms of force, weaknesses, opportunities and threats (SWOT) will attend to gain an understanding of where it is the marks and Spencer at the moment in terms of forces and where the improvement is required within the business and what outer the environmental threats he can do in front also while who what new opportunities are available for the company in the short and average term.

Analysis of the SWOT of M&S


· Ranges of diverse products - food, clothes, financial, movable products, came and Caretaker

·The greatest retailer in the Kingdom United by sales.

· Fortified position of the liquidity flow

· Increase to the volume of sales and the benefits that negotiate

· Strong balance

· Main superior retailer of the food of the quality

· Knowledge of trade name

· Human resources

· Capacities to give return to resources in advantages


· New products

· Change from market to globalisation

· Innovation and alliances

· Change of the demand of clients to more value for products of the money

· Diversification

· Develop the chain of overseas source


· Opinion of elevated high prices

· Client more disinterest

· Environmental editions: Contaminations

· Sophistication and knowledge of the buyer

· Products substitutes or technologies


· New and existing competition

· Volatileness in the price of gross products

· New legislations

· 11 of September

· Economic recession

· Change from market to globalisation

· Supplies of possession taking

· Retailers of the low cost

· extremely high competition for the clients and the resources

Progress of the financial demonstration of the operation of M&S the 2009 good one in terms of financial recovery of the companies, nevertheless, the president in its message has expressed preoccupations with respect to progress of the sales. This is according to the present generic strategy of M&S of the differentiation. The question that Spencer marks and needs to treat is must the company adopt a strategy of the direction of the cost and compete with the retailers of the low cost as ASDA in the competition of the price is persecuted of sales of the increase?

The model of five forces

Threats of

Nascent potentials


Energy that it stipulates competitive

Buyers of the rivalry

Energy that it stipulates

Threats of


The doorman explains that there are five inherent forces in a market, that will determine in common the intensity of the competition and the beneficial thing of M&S and the industry that sells to by minor of the food. The first one is the threat raised by nascent the new ones, the high expenses in capital investment and confidence of clients represent significant barriers the entrance and the market is also sensible to the reputation. Nevertheless, the unexpected one of the low cost makes raises a significant threat. There is an opportunity at the sector (fast) under the economy of the low price. Perhaps VHS and superior store or ASDA and Morrison could consider introducing of products from the low cost to house. The second is the threats of substitutes, because there are many retailers of the other described food superior, therefore, of Sainsbury, Juan Lewis, and Rackhams etc. The third force is the threats of the energy that it stipulates of buyers, this one is strong for M&S and the industry that sells to by minor of the whole food with a great amount of alternative jets, by as much, the strategy of aggressive appraisal. This very hard gives rise to a competitive rivalry in the industry. This as resulting from intensifies little or nothing of differentiation in the offered basic product. Finally the threats of the energy that it stipulates of the jets, this one are enough losses in the nutritional sector, due to the dual strategies of sourcing, using a range of alternative sources of the source for products.

External atmosphere - analysis of the SMART one

All those (economic, social, technical, legal and environmental politician,) factors will be applied until certain point to the industry to by minor in Sweden.

POLITICIAN - Following the agreements of European integration and free change, the market has been opened so that the British companies invest in Eastern Europe. Tesco already has warehouse of 60 supermarkets in Hungary. Lidl uncompromisingly is fighting to maintain its quota of market with a strategy of aggressive appraisal.

ECONOMIC - the Retail sector is fairly recession prawn and also very sensitive to changes in interest rates. From the events of the 11 of September world-wide economies they have suffered heavy, they store fallen to lead and the prices are in all the low points of the time. The world-wide economy is nevertheless, now in the ascending post the 11 of September. The consumers are optimistic and the industry to by minor is growing of new.

SOCIAL - the changes in taste and form of life of the consumer represent opportunities and the threats for the industry. The opportunities at terms again market and the consumers, nevertheless, are there threats added in terms of social acceptance to the alcohol

TECHNICIAN - The changes in selling to by the smaller one methods as such sales of the clothes via the Internet now are a place common in selling to by minor. They undertake the operation without paper, to the management and the administration of the company in HER the systems, that are reached assure to traverse the servants; provide the flexibility in the operation of the business.

LEGAL - National Legislation for the health and the security in terms of rights of the consumer and also in terms of production of own natural reanudables resources to make the clothes.

ENVIRONMENTAL - The reanudable source of the resources used in the production, that is to say cotton and wools are environmentally friendly. The threats are in terms of legal consequences for the cattle in terms of health and security.

Strategy of the entrance of the market of Ansoff

We can use the product of first Ansoff/la of the market to identify the directions for the strategic development of the marks and of Spencer. This matrix also offers the directions for the strategic option available a.m. &S in product terms and cover of market , considering its strategic capacity and expectation of possesors of bets


New existing

Existing of the markets protects/structure

· Consolidation

· Product development of the penetration of market

· With existing capacities

· With new capacities

· Expectations of the current of Boyond

Development again market

· New segments

· New territories

· New users

· With new capacities

· Beyond the present diversification of the expectations

· With existing capacities

· With new capacities

· Expectations of the current of Boyond

We can see of the matrix of Ansoff that the lunch of the marks and Spencer of products of the financial services will have implied a strategy of the diversification. Then M&S does not sell financial products already, so the new market and the new product. The capacity and the consideration of the market the development in new markets and products have lead M&S in a.