Business without planning and without effective marketing strategies cannot lead or survive in long term period. That's why it is very important to analyze the strength and weakness while doing planning of business to survive as a leader with maximum profit in long term period. Now we will discuss the strategies with its nature of business and current situation in the market and will analyze its strategies.
Marks and Spencer is the food and non food retailer having more than 350 branches in more than 39 countries. They are selling food and non food products and recently they have started energy product and they usually manage 60% of business online that includes receiving the order and dealing with customers. They are currently more reliable in United Kingdom and having large number of projects that protects the interest of general public. These projects are mentioned in 'Plan A'.
Objective of Marks and Spencer:
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Long term Goal of Marks and Spencer is as follows:
'All products must have the one content of Plan or must have the quality of Plan A until 2020 and half of this should be complete until 2015' (Marks and Spencer)
Sort term Goals of Marks and Spencer:
Developing knowledge and confidence in customers to buy our products online.
'Launch a Green Idea worth £100,000' that means by introducing the most environmental friendly idea by customers and M&S will give the prize to them.
Now we will discuss the management strategies and its relation with other external factors that how they implement their planning to meet their long term objectives with the influence of external factors.
5p Carrier Bags Strategy:
Marks and recently launched an expense strategy for their customer that was charge of 5p of the carrier bags, but by doing this they did receive appreciate by the customers and the environmental agencies that help them to protect the environment.
It was found in annual report of M&S last year that a big amount that fills the land is the shopping bag by taking the initiative they launched the scheme that covers one of the commitment of plan A and help environment to reduce the wastage that goes to land fill.
Effect of the 5p Strategy:
By implementing this strategy they became the market leader at the point of protecting environment they attract the customers by showing them the benefit of less use of carrier bags, and how their mutual action can help environment to be more protective and healthier for every one. They attract large number of customers and this strategy later on was copied by other food or non food retailers.
Yours M&S with apparitional quality:
Launching new styles with affordable process and doing campaign to show that how productive and efficiently produced their products are, they actually study the nature of customers and after that they analyze the situation of the market and the policies of their competitors and implement the strategy with the name of your M&S to show them they have got the exact same, that their customers are looking for. In their annual report they showed their interest that how they achieved the sales target by starting this campaign and their high street shops increased their motherly sale by 9% to 10%.
Making the Strategy by doing Analysis:
In midterm report of Marks and Spencer they indicate the way they plan their strategy which was using of SWOT analysis and PESTLE analysis, these analysis support their business strategies not only in terms of achieving sales target but also able them to grow business in new areas more successfully. Now we will discuss the example that how these strategies able them to survive as a leader in the market even when the retailer companies have to reduce their businesses to maintain the level of profit for stake holder, how they increase their business with increasing profit and customer satisfaction? (Study Skills, 2010)
SWOT analysis is the analysis that helps organization to find out the position of their brand and the image of product in the current market they are operating this analysis helps to find out the following points of the organization in the market:
Always on Time
Marked to Standard
If we do the same analysis in Marks and Spencer than following would be the results of the analysis according to the above strategic examples:
Following are the strength of the M&S according to the SWOT Analysis:
Biggest Non-food retailer in United kingdom
Sustainable retailer in the UK according to the British Govt. Awarding Ceremony
High quality and new fashion products every week and month in high street stores
Following are the weaknesses when we analyze the market position and it strategies with its competitors:
Shortage of Suppliers
Lack of management at sales level
Below are the opportunities for Marks and Spencer extract after doing the SWOT analysis, these are as follows:
Enter in new market with the existing product but with excellent brand value
Become a preferable fashion provider with green thinking until 2012
Have a green production plant first time in UK with the success of Plan A implemented in Marks and Spencer.
These are commonly covered and overcome by the upcoming opportunities these threat could be from the govt. policies and competitors, but the advantage of SWOT analysis is this that they identified the upcoming situation and help organization to measure their performance and do strategically planning to become leader of the market. (Rapidbi, 2011)
These threats could be as follows:
Change in fashion products and garments by competitors on quick basis
Change in Govt. polices in terms of monetary policies that could effect the borrowing power of M&S
Supplier bargaining power
These are the few explained analysis that helped M&S to plan their strategy. Now they have implemented the strategy to focus and attract the minds of the customers by other social activities and allow them to come in the stores and visit their website that ultimately increase their sales and attach customers experience with it.
Stake holders are the name of group of persons or the organization that have stake in an organization directly or indirectly and have their benefit in the circle of that organization. This circle refers to profitable circle. They are also affected by the change in management and change in their strategies and policies. (Salto, 2010)
Participation in Marks and Spencer: Board of Directors
These are the people who have high level of interest and any policy which is going to implement effect them in terms of annual profit or the dividend they received on their values of shares. They are also known as a superior stake holder of the company as they are the founder of the company.
Suppliers are also known as key stake holder of any organization. Especially in Marks and Spencer they have a great influence and they hold the bargaining power that's why any new strategic policy could affect them, so when M&S have new strategy or changes inside the organization they must know and discuss its related contents with their suppliers. (PDF Cast, 2010)
Customer are also key stake holder of any organization because they hold the money in the stores of any company and have the power to spent it where ever they want, so the policies of the company should be form in the way that protect the interest of customers. (Change Perform, 2010)
In any organization especially if we took an example of M&S they have managers with the experience of 6 to 7 years and they are constantly working in a same environment with loyalty and progressing with the good reputation, so it is very important to take extra care of employees while doing strategic planning for organization.
Structure with Importance of Stake holders in Marks & Spencer
Workers and Staff
BOD/Highly trusted Share holders
New trained Management
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(Dur, Cultural Web for Marks & Spencer in 1998)
The above division of stake holders with their level of interest and power shows the effect they could made in the strategic planning.
Following is the mission statement of Marks and Spencer. Now by considering the opportunities and coming threat we have made some changes in the mission of Marks and Spencer because of that I would suggest some changes in Strategic planning and will show a new strategic plan to achieve their future goals.
Old Mission Statement:
"Our mission is to make apparitional quality accessible to all"
New Mission Statement:
'Our mission is to make asp irrational quality products by using no carbon machineries and by using zero landfill material'
In new mission statement we are not only focus towards asp irrational quality but we have added some thing new which is to create a better environment for our customers with pure and non artificial material. Before implementing this mission we will discuss the strategy that would support the mission as well as the interest of key stake holders.
Supportive Strategy for Marks and Spencer:
Below we will discuss the new strategies that will support our new mission as well as the interest of M&S key stake holders, these strategies are also based on the analysis SWOT we did discussed in above paragraphs.
These strategies are divided with the importance of several factors such as financial importance, customers preference etc.
Strategic Supportive Objectives
External Brand Value
Financially sound business
Charity partnership organization
Use of financial resource to let the people know that how we care about their lives with use of marketing tools
Increase the brand value by starting competitive campaign
Meet the career progression target and sound opportunities for employees and financially sound policies for the whole management
Zero landfill commitment with charity organizations partners like 'Oxfam'
Consideration of buying power
Let know customers about the importance as a shipper of M&S they have
Online selling and door to door delivery would increase the sales level
Competitive process with competitive quality at store
Use of competitive policies by doing SWOT analysis
Study of customer interest time by time to update the fashion and food products in store
Internal Process and meeting the commitment of Plan A
Innovative Ideas and
Increase in Product Line
It is very important in any organization to control the task by mid term audit to check the following:
Achievement of short term objectives
Performance of each and individual employees
Focus towards goals
Productivity and development professionally and personally
By regular developing new ideas and by taking the help from R&D team the company could apply the rule to increase their product line by 2 to 3% in every 3 months.
Learning stage to maturity stage
While doing mid term audit they could find any need of the following:
Need of Hiring and firing employees
Progress of coalition of team work
Creating a platform for mutual discussion of ideas
By implementing above main points they would lead internally maturity stage and they have proper management system that would only focus towards the product development and increasing the brand image in to the market. Another important point is doing mid term reviewing programs and internal audit would help them to find out the need of training it could be for strategic competitive policies or for personal and professional development.
The need of basic thinking is this that every organization is currently facilitating the customers and protecting their level of interest by doing SWOT analysis M&S should carry on the scheme that shows the loyalty of customers for Marks and Spencer's.
If we take an example of Pound Land they mostly providing values thing to their customers and creating the image of their brand that they have 'Amazing value every day' this could be a important point of discussion incurrent situation, they must follow the above discussed points in table to cover the both internal market and stake holder interest.
To understand the importance of reviewing we will in general discuss the importance of reviewing when we forget the things. There are four major theories of forgetting things:
Now we will discuss briefly its description and will relate the importance of reviewing with it.
Fading - Fading theory relates to the forgetting things when they are not in practices again and again. That mean once person learned it and afterwards he didn't do any practice and with the span of time he almost forget 80% of method of the process. (the free dictionary, 2010)
Retrieval - It is not the same as fading but this theory explained that things are not forgotten if they labeled correctly.
Interference - It is theory that explains the knowledge that conflict when there is no more space to store data user need to relate it with old one to keep it remember other vise he cannot retain old data and new one together.
Interactive Infrastructure - Some times person remembers the title and introduction and in last he remember conclusion the rest of the material he forget to avoid this situation he need to choose only one topic at one specific time to avoid any problem that occurs to them. (Bucks, 1997)
Importance of above discussion with Marks and Spencer strategy:
These all theories that tell the importance of reviewing the same knowledge again and again help employee to remember it but also help them to repeat it more efficiently and quickly.
The reviewing process in above strategy is need to be placed again and again inside the organization to review the performance it time by time and to find out the need of talent needed by the employees of Marks and Spencer.
Implementation of strategy with appropriate time scale:
Implementation process is not easy to understand but it needs the same above discussed process of reviewing before implementation of strategic plan it need to be measured the performance and affectively implement with the process of reviewing. Reviewing the process also includes the exact and measurement of time scale of implementation to get the desired results on designed time with exact financial and economic situation. (Nottingham, 2011)
Below are the time scale that is showing the about the implementation of above strategies time by time with the process of reviewing and monitoring time by time.
Importance of Time Scale:
Time scale is not only need in designing the strategies but it decides the companies progress and its time of achievement, now if we take the same above discussed company's example they are currently having the time scale for long term goal that is commitment of plan A until 2020 but they have not minimized the values of this long term goals in to short term goals on time basis they need to focus their short term goals and strategies according to the time scale that would help them to get the short term goals on time that would support the long term goals to be complete on time.
1 4 6 8 10 12
Analyzing the current position and competitors analysis
Minimizing the cost and increasing the productivity
Use of marketing tools to capture the market share
Work with environmental friendly companies
Review and monitoring process inside the organization and management
Act according to the result of reviewing and analysis
Increase the benefit for customers by introducing Loyalty schemes
Short term Wins
Timely external audit
In above time scale it is clearly shown that how they can implement and timely review their progress short term goals. Now we will discuss it separate to know their individual relation and importance related with each other.
Analyzing the current position:
In first week M&S will analyze its market position and will do SWOT analysis and Pestle analysis to find out the power or strength and weakness of their companies as well as their competitors by knowing this they can plan their action for future. For example their competitors have introduced the loyalty scheme for their customers that attract lots of other customers as well, by knowing their direction of marketing M&S could increase the level of interest by giving the voucher with the barcode that will increase the discount for the customers who have previously visit in shop or online and did shopping from their. These kinds of strategies would help them to increase the level of interest and beat the market with healthy competition.
Minimizing the cost and use of marketing tools:
There are several ways to lead in the market and one of the important ways is become cheaper in cost. By doing this after the analyzing the strategies of competitors they could reduce their unnecessary plans and increase the marketing exercise by using marketing tools such as 7p's or marketing mix tools. (Buzzle, 2010)
Reviewing and Short Term Wins:
We have already discussed the importance of reviewing the progress in Marks and Spencer and have already discusses that how it could be more useful for implementation process now we will see that how it is more useful for the policies of short term wins. Lets take the example of Marks and Spencer, suppose M&S are selling their products with excellent customer relation, M&S introduced the scheme that the sales man who reached the specific target of sales would be awarded short term wins benefit and the timely reviewing process would help org. to show their efficiency on high street chain shops and that would ultimately made them able to produce new ideas for sale. (Tutor 2 u, 2010)
This is not only implementing in sales department but also useful in production department to make them more efficient.