This work examines why the clothing sales of Marks and Spencer have been falling in recent years and recommends a solution to minimize this issue that leads to the substantial financial losses. The work evaluates the internal and external environment of the company and concludes that the company must adjust a new strategy in order to compete efficiently in the industry. It is recommended to focus only on the basics which brought success in the 90’s; stock with the third- party brands; merger with another company or focus only on the food business which is successful on the market.
The work draws attention to the fact that in the 90’s the profits from the sales of clothing peaked and topped £1 bn. In 2008, there was an increase in the clothing sales and the profits peaked again £1 bn. However, after that year the profit has been constantly falling. Further investigations reveal that the drop of sales coincided with the appearance of many businesses which produce similar goods at the same or lower price. Moreover, the visibility of growing competition from the online angle of the industry and the fact that M&S was a latecomer with introduction of the online store have negatively influenced the performance of the firm in the clothing sector.
Table of Contents
- Chapter 1: Introduction
- Chapter 2: Case brief
- Chapter 3: Problem statement and analysis
- 3.1 Statement of the problem
- 3.2 Research method
- 3.3 Conceptual framework
- 3.4 Relevant literature review
- 3.5 Proposed plan of analysis
- 3.6 Sources of data
- 3.7 Ethical considerations
- Chapter 4: Analysis and Findings
- 4.1 An assessment of the current position
- 4.2 Alternative future scenarios
- 4.3 Resource Constraint Evaluation
- Chapter 5: Proposed solutions to the problem
- 5.1 Integrated discussion of the analysis
- 5.2 Recommendations and proposed plan of action
- 5.3 Critical assumptions to the analysis
- 5.4 Implications for stakeholders
- 5.5 Limitations of the study, scope for future research
- Chapter 6: Application to another case
- 6.1 Description of the competitive firm's situation
- 6.2 Test of the M&S's recommendations on the Next plc
Objectives and Key Themes
This case study aims to investigate the decline in Marks and Spencer's clothing sales and propose solutions to mitigate the substantial financial losses. The study analyzes the factors contributing to this decline, considering both internal and external factors, and ultimately recommends strategic adjustments to improve the company's competitive position.
- Analysis of Marks & Spencer's declining clothing sales.
- Evaluation of internal and external factors influencing M&S's performance.
- Assessment of competitive pressures from both traditional and online retailers.
- Development of potential strategic solutions to address the identified problems.
- Application of proposed solutions to a similar case study.
Chapter Summaries
Chapter 1: Introduction: This chapter sets the stage by discussing the impact of the 2008 financial crisis and subsequent economic uncertainty on consumer spending habits in the UK retail sector. It highlights the increased price sensitivity of consumers and the challenges faced by retailers in adapting to a multi-channel, fragmented market. The chapter emphasizes the significant impact of media coverage of the financial crisis on consumer confidence and spending, particularly in the luxury market, and how this contributed to shifts in consumer preferences toward more affordable retailers.
Chapter 2: Case brief: This chapter provides background information on Marks & Spencer (M&S), tracing its history from its founding in 1884 to its current position as a major UK retailer with international presence. It details M&S's core business areas (clothing, homeware, and food), its store network, and its recent financial performance. The chapter reveals that while food sales have grown, clothing sales have significantly declined, leading to substantial decreases in overall profit. The chapter also provides a concise overview of the company's five-year financial performance, showing a clear trend of declining profits despite relatively stable revenues.
Chapter 3: Problem statement and analysis: This chapter formally outlines the central problem: the decline in Marks and Spencer's clothing sales. It details the research methodology employed to analyze this problem, presenting a conceptual framework and relevant literature review to support the analysis. It explains the proposed plan of analysis, data sources, and ethical considerations. This chapter lays the groundwork for the deeper analysis and findings presented in the subsequent chapters.
Chapter 4: Analysis and Findings: This chapter presents a detailed analysis of M&S's current position within the market, evaluating both internal and external factors contributing to its declining clothing sales. It explores alternative future scenarios for M&S, considering different strategic options, and assesses the resource constraints the company faces in implementing these options. This chapter likely synthesizes the data and insights from the previous chapters to develop a comprehensive understanding of the challenges facing Marks and Spencer.
Chapter 5: Proposed solutions to the problem: This chapter presents proposed solutions to address the challenges identified in previous chapters. It provides integrated discussions of the analysis, specific recommendations and a proposed plan of action for Marks & Spencer. This chapter also details the critical assumptions underlying the analysis, discusses the implications for various stakeholders (employees, shareholders, customers, etc.), and acknowledges limitations of the study, suggesting avenues for future research.
Chapter 6: Application to another case: This chapter applies the findings and recommendations developed for Marks & Spencer to a different, competing company. By analyzing a similar business, the study aims to test the generalizability of the recommendations and further validate the analysis. The comparison with another retailer allows for a more robust evaluation of the proposed strategies and their potential effectiveness across diverse contexts.
Keywords
Marks & Spencer, retail, clothing sales, financial performance, consumer behavior, competitive analysis, strategic management, online retail, market trends, financial crisis, recession, business strategy, recommendations, case study.
Marks & Spencer Case Study: Frequently Asked Questions
What is this document?
This document is a comprehensive preview of a case study analyzing the decline in Marks & Spencer's clothing sales. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The information provided is intended for academic use and analysis.
What is the main focus of the case study?
The case study investigates the decline in Marks & Spencer's clothing sales and aims to propose solutions to mitigate the substantial financial losses. It examines both internal and external factors contributing to this decline.
What are the key themes explored in the study?
Key themes include the analysis of Marks & Spencer's declining clothing sales; evaluation of internal and external factors influencing M&S's performance; assessment of competitive pressures from both traditional and online retailers; development of potential strategic solutions; and application of these solutions to a similar case study.
What chapters are included in the case study?
The case study comprises six chapters: an introduction; a case brief on Marks & Spencer; a problem statement and analysis; an analysis and findings section; proposed solutions to the problem; and finally, an application of the findings to another case (a competing company).
What is covered in Chapter 1 (Introduction)?
Chapter 1 sets the context by discussing the impact of the 2008 financial crisis and subsequent economic uncertainty on UK consumer spending habits, highlighting the challenges faced by retailers in a changing market.
What is covered in Chapter 2 (Case brief)?
Chapter 2 provides background information on Marks & Spencer, its history, core business areas, store network, and recent financial performance, focusing on the decline in clothing sales despite relatively stable overall revenue.
What is covered in Chapter 3 (Problem statement and analysis)?
Chapter 3 formally outlines the problem of declining clothing sales, details the research methodology, presents a conceptual framework and literature review, and explains the analysis plan, data sources, and ethical considerations.
What is covered in Chapter 4 (Analysis and Findings)?
Chapter 4 presents a detailed analysis of M&S's market position, evaluating internal and external factors contributing to declining sales. It explores alternative future scenarios and assesses resource constraints.
What is covered in Chapter 5 (Proposed solutions to the problem)?
Chapter 5 offers proposed solutions, including an integrated discussion of the analysis, recommendations, a plan of action, critical assumptions, stakeholder implications, and limitations of the study, suggesting future research avenues.
What is covered in Chapter 6 (Application to another case)?
Chapter 6 applies the findings and recommendations to a competing company to test the generalizability of the analysis and proposed strategies.
What keywords are associated with this case study?
Keywords include Marks & Spencer, retail, clothing sales, financial performance, consumer behavior, competitive analysis, strategic management, online retail, market trends, financial crisis, recession, business strategy, recommendations, and case study.
What is the overall aim of this case study?
The overall aim is to provide a thorough analysis of the factors contributing to the decline in Marks & Spencer's clothing sales and to propose effective strategies for improvement and future growth.
- Citation du texte
- Katarzyna Szydlowska (Auteur), 2017, The future business strategy of Marks and Spencer, Munich, GRIN Verlag, https://www.grin.com/document/512516
