Analysis Of Marks And Spencer: Strengths, Weaknesses, And Factors Of Underperformance - Essay.

You are required to analyse the Marks and Spencer Case Study, and in essay format answer the following questions:

Q1. Identify and explain five strengths and five weaknesses of Marks and Spencer; and the impact of each of these on the organisation. As well as information gathered from the case study, you should research and provide some recent examples to answer the question.

Q2. Critically discuss to what extent you regard the following as key factors in accounting for Marks & Spencer’s relative underperformance over the last 20 years:

-Leadership

-Corporate Culture

-Corporate Governance

To support your answer for Q2:

(i) You MUST include theory to underpin your answer.

(ii) Research and use recent examples as well as examples gathered from the case study. Other information sources of good quality which can be used include: company websites, reports, news articles, academic journals etc.

(iii) You must “critically discuss”. Do not just “describe” or just repeat what is already in the case study.

(iv) You must write in the third person. Do not use personal pronouns e.g. “I”.

• Essay with two separate sections representing questions 1 and 2.
• A reference list should be added at the end of your essay but this is not included in the word count, neither are essay headings. Harvard Referencing style must be followed.
• Harvard Style in-text references (citations) must be included within the body of your essay for both questions to evidence and support your findings.

Marking Guidelines

Q1.

Five strengths and five weaknesses, PLUS some justification; including the impact on the organisation for maximum marks.

Ten relevant points (plus explanation) must be made to achieve a grade A for this section, then eight points for a grade B, 6 for grade C, 4 for a grade D and 3 for a grade F. Less than 3 relevant points made is a G.

N.B. There MUST be some justifications and explanations included, not just a ’list’ of points. If just lists are provided, then only a grade C maximum can be achieved. Some recent examples should be included.

Q2.

The main task is to critically analyse and explain the linkages between leadership, culture and corporate governance found in the case study and in company reports/Business news and other good quality sources. This should include underpinning theory.

There should be a good balance between theory and the evidence derived from the case study and reports/articles, web sites etc.

a) Explain the role and responsibilities of managers within specific business contexts and scenarios

b) Explain the different factors that influence management decision-making in varying business contexts

c) Explain the different management styles within organisations

d) Explore a range of organisational issues Subject – specific Skills

e) To apply management concepts from organisational behaviour to some management scenarios.

f) Apply concepts and ideas to contemporary management contexts and issues.

Strengths of Marks and Spencer

 In this report, the company that is selected is Marks and spencer.  In the first phase of the report, the discussion will be made on the by analyzing the case study of marks and spencer. First part is related to the strengths and weakness of marks and spencer and the second phase of the report will discuss about the influence of leadership, corporate culture and corporate governance in Marks and Spencer.

• High Recognition of the brand:  Mark and Spencer is one of the largest brands that offer quality products from the last many years. The brand value is high as the consumers who visit the high street go to marks and Spencer's to purchase the products that are required. It is considered as one of the most powerful retail brands with more than 1000 stores present in 40 countries.
• A wide variety of products: Marks and Spencer offer variety of products in every outlet that assists the customers to choose the best from a variety of products.  The company offers a variety of products that enhance the satisfaction level of the consumers.
• A large number of stores and outlets: Marks and Spencer have more than 1000 stores globally that helps the consumers to purchase the products and services in an effective manner.  The stores are located in 40 countries. The number of stores and outlets clearly states that the business is spread over a large area and also the sales enhance due to the variety of products offered by the company.  If the stores and outlets enhance, then the sales of the company also increase.
• High level of customer loyalty:  The major strength of the company is that the customer loyalty is high. The customer trusts the products and services offered by the company. It gives direct impact on the image of the company and also on the profitability (Robertson, 2016).
• High-quality products and good shopping environment: Marks and Spencer offer high-quality products to the consumers.  Like fresh fruits, vegetables and also superior goods are offered by the company. Mark and Spencer offer vegetables, baby products, men wear and also women wear. The quality that is offered is best and also it attracts the customers towards the products just because of the quality of the products.  Mark and Spencer tries to make the consumers more convenient and also comfortable. The stores are kept by taking into consideration the latest designs. The products that are kept on the shelves are showcased in a proper manner, so I induce customers to purchase the item (Richardson, 2016).

• Weak online presence: The online transactions are not taken into consideration by the company and the presence of the company is also very weak.  Mark and Spencer give less focus on promoting the products and services through online transactions or through websites (Toms and Zhang, 2016).
• Bad publicity as a non-trendy store:  The major weakness of the company is that the company does not take into consideration latest trends and also it is non-trendy. It is also seen that the marks and Spencer have large variety of products and services, the general public has wrong assumptions that the men's wear and also women's wear is for the aged people not for youngsters (Song and Stewart, 2016).
• Manual working enhances the costs:  The techniques that are used incurred a huge cost. But in general, it is seen that for enhancing the efficiency new and latest technologies should be used, so that the work can be conducted in an effective manner.  Latest technologies help to enhance the productivity level and also the manual work increases the cost and minimizes the work efficiency.
• High competition level: It is evaluated that the competition level is high. There are many other companies that offer same products and services in the market.  
• Misuse of fake imitation products: It is seen that due to popular products offered by the company, it is important to protect their brand from misuse of fake imitation products (Rashid, 2016).

• Due to the high recognition in the market, the impact is given on the sales of the company. It is evaluated that the sales and profitability of the company increases.
• Due to the high variety of products the company has given positive impact on the sales.
• Also, the company has many outlets and stores that help the organization to offer products and services in a proper manner.  Due to the weak online presence, the customers are not able to avail services by sitting at home.
• Loyalty of the consumers also given enhancement in the sales and activities of the organization. The demands of the products are enhanced.
• Good quality products: The high quality of the company attracted many consumers towards the products.

Weakness

• Weak online presence: Due to the weak presence online the negative impact is seen on the sales of the products and services offered by the consumers.
• Non trendy stores: The wrong assumptions are reducing the sales of the products and services of the company.
• Manual working enhances the cost: Marks and spencer's take into consideration old techniques that lower the production and the activities that are conducted on a daily basis. So it reduced the sale of the products.
• High competition level: Due to the high competition level, the impact is also given on the profitability of the company.
• Fake imitation products: The Company face many issues related to the fake products and also it has given impact on the sales of the products and services.

Examples are:

Due to the enhancement of the sale, the company requires more employees to conduct the activities. So, the company employed many candidates who are eligible to conduct the activities of the organization.  The candidates are offered jobs by analyzing the capability and also the qualification. The company gives focus on appointing efficient candidates so that the goals and objectives can be accomplished in a proper manner with a high satisfaction level of the customers.

Key factors of Marks and Spencer's that have given impact on the performance level in the last 20 years are:

Leadership plays a great to regulate the activities of the organization. It is considered as a process that influences other people to accomplish an objective and also to direct them in a proper manner. Leadership helps to make plans and also it is helpful in making decisions for the organization.  It is one of the important functions of leadership that assist to maximize the efficiency and also the organizational goals of the company.  Without the leadership, it is not possible for the organization to conduct the activities in an effective manner.  The company should give emphasis on taking into consideration proper leadership styles so that the profitability and growth can be attained. The managing style can be easily be analyzed in 3 kinds. First is autocratic, consultative and democratic.  By taking into consideration autocratic style, the leader is the party that contributes in the decision making process.  Also, the opinions of anyone apart from the top level management are not considered or are ignored. This style of leading is used in the late 90's. If this leadership style is taken into consideration by the company in a proper way, then it can be easy for the company to accomplish goals and objectives in an effective manner.

Consultative leadership is considered as complicated if the proper evaluation is made by taking into consideration autocratic leadership. In this, the decisions that are made by the managers are done by giving focus on the other views and also giving emphasis to the ideas.  In this, the leaders make the final decisions. The decisions that are made by the leaders are profitable and beneficial for the company to operate the day to day operations of the company (Quix et al., 2016).

Next is a democratic leadership style where the responsibility is of the team to make a proper decision.  If the team does not take into consideration proper decision then it can give negative impact on the activities of the organization. The contribution that is related to the process of decision making is also provided by the leaders (Golder and Dixon, 2017). The decision-making process is the responsibility of the managers; if they do not take a proper decision then it can give direct impact on the employees who are working in the organization.  The views are taken into consideration of the people to make proper decisions that are effective for the organization. Proper decisions help the organization to attain the growth and also to enhance the image of the company in the market (Wilson and Beard, 2014).

Weaknesses of Marks and Spencer

By giving focus on Marks and Spencer it is evaluated that in the early stage the company started with the concept of family business. The company was led by the traditional family values. In the 90's the change has to make a change in the leadership due to the issues that are related to the underperformance. Under the strategy of Vandevelde's, it is analyzed that Mark and Spencer came up with the recovery strategy that enhances the company operating concept and also offer quality value and service to the customers.  The strategy that was considered safeguarded the reputation and also enhanced the strength of the company in the market. Vandevelde's leading concept is one of the consultative leadership styles as in this the decisions are made by the leaders but the views of the employees are also taken into consideration so that the company can easily enhance and follow tradition and image in a proper way.  Also, there was a group that is within the framework of the corporation that gives direct impact on the final decision (Fisher, 2016).

So, it is argued that the managing concept related to the consultative method was not only the method taken into consideration by Marks and Spencer. There are many other concepts on which the focus is given by the company to conduct the activities.  Let's consider an example:  BY giving focus on the top level management to plan the operating strategy, the consultative is one of the best leadership assist the cause in a proper manner.  Also, the democratic and autocratic method can be considered to enhance the cooperation in the proper way (Oh et al., 2016). Mark and Spencer can also have many different approaches that can manage the staff under the hierarchical scale in an effective manner.  

Example: At the time of production, autocratic management can easily increase the efficiency of the production and also the staff has proper knowledge about the latest technologies that are taken into consideration by the company on the field ( Roth, 2017). If the staff has proper knowledge about the technologies used for production, then it can give a positive impact on the overall productivity level of the organization. In the middle level, it is evaluated that the managing methods are considered as more flexible as they are in the good position and also offer them the ability to use the autocratic approach in a proper way.  It is seen that the shareholders are aware of the many situations in the company and also consider democratic vote on large issues such as the employees who are working will be next on the position of a CEO (Austen-Baker, 2017).

Organizational culture is considered as the beliefs and attitudes between the management and execution level so that the impact can be given to the decision-making process and also it affects the internal environment within the firm. If the organization does not have proper culture then it can be difficult for the company to conduct the activities in a smooth manner (McCunn, 2016). The culture of the organization gives emphasis to the values and beliefs that are used by the managers to grasp the how the uniqueness originates and evolves in a proper manner. The culture of the organization also gives focus on the decision-making process of the managers. If the decisions made by the managers are good, then it can give direct impact on enhancing the overall profitability of the organization.  In the different corporations the problems and various situations are handled in a different manner and also the corporate culture is one of the key factors that compose the differences (Cartwright et al., 2016).

Impact of Strengths and Weaknesses on Marks and Spencer

By taking into consideration corporate governance it is seen that it varies along with the different corporate culture. Like for example: In the starting stage of marks and Spencer, the concept of a family business is that the family members are involved and the order is given from the top to bottom and also the communication methods are taken into consideration within the firm (Prange, 2016).  The outcome that is analyzed is that the corporate governance in the early days for marks and Spencer was based on the fast turnover.  The value of the culture is also related to the things that are being handled in marks and Spencer and also formed by considering the managing methods.  The value of the company is only increased when the things or the activities are managed effectively and with proper care. If this kind of corporate culture takes place, then it can be analyzed that employees will not be motivated to rise to the top of the firm just because they are not in the family. The paternalistic culture also brings a proper execution process to the company and the process will be simplified (Hafftka, 2016).

In the 90's the growth of the company will be increased and also the difficulties in the corporates will remain on the family level only. Mark and Spencer is one of the biggest firms and started conducting the activities with the concept of family and also the culture and the need of the leadership was only the reason for the underperformance. If the company gives focus then it is seen that there are also bright sides of the culture in Marks and Spencer. As the company has a well-planned strategy and also clear segmentation on the customer group (Islam, 2016).The Stuart Rose's strategy is considered as the important strategy that has given impact on the activities of Mark and Spencer.  The old values are reverted and also the culture is simplified that has brought the game of marks and Spencer back. Mark and Spencer corporate culture has enhanced the customer-driven culture and also it is based on its original insurance of quality and it enhances the value of the customers. The customer-driven culture has enhanced the effort to enhance the customer relationship and also the market research by taking into consideration the external aspect and also the internal aspect (Liu and Ko, 2014).

When the focus is given to the internal and external aspect then it is seen that company can conduct the activities in an effective manner, if the proper focus is given.  The training for the staff and the governance of the firm is also enhanced. If the employees of the organization are trained in a proper manner, then it can be easy for the organization to accomplish the goals and objectives of the organization.   The relations with the customer are also enhanced by considering the proper strategies that give benefits to the company. Proper strategies should be taken into consideration, so that the activities can be conducted properly without any negative impact on the employees and activities of the mark and Spencer. Management also plays a great role to operate the activities of the organization. If the company has proper management then it can give direct impact on enhancing the value of the customers and also on conducting the day to day activities of the company (Frederick, 2013).

Factors of Underperformance

In the conclusion, it is evaluated that the customer-driven culture on marks and Spencer will enhance the image of the company and offer power and efforts for the firm to evolve as the market does. To manage the activities and also for the internal governance it is seen that customer-driven culture is suitable and efficient for the marks and Spencer ( Bocken, 2017). It helps the company to work in a smooth manner not just because of the consultative approach but also it enhances the opinions and views of the manager to communicate internally in a proper manner.  The other two managing style was also executed by the firm at the right level and the efficiency was also improved by the marks and Spencer.

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