Marks And Spencer: Coalition Of Theory And Practice

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3. Research method
This paper adopts to the approach of combine relevant literatures and case study, aim to coalition of theory and practice. In the writing process of this paper, author searches lots of literatures and writing on the basic of influential achievements, through combined some knowledge of strategic management, accounting and economics to summarize and conclude the theory of SMA. Meanwhile, with the case of companies in Britain to critically the role of SMA in UK based company. 4. case description
4.1 Background
Marks& spencer is one of the UK’s leading retailers, it founded in Britain in 1884 and headquartered at City of Westminster, London. It has now grown into a multinational retailer with their own brand of goods. Up to
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With the development of economy, in order to predict and responsible quickly to change, a large number of organizations’ goal is creating a better system. (Reeves and Deimler, 2011) How companies can satisfy customer need, defeat competitors and achieve the long-term development have attracted great attentions of many researchers. Strategic management born in this backpack. After 1960s, with several published works, strategic management has got great development, tools of strategic analysis appear in these research. (Nixon and burns, 2012) After 1980s, the core problem of stagey theory inevitably turns to practical, at this period, Porter’s five force model, generic competitive strategic and value chain analysis are in people’s vision. Development of strategic management in theory and practice has directly promoted the advancement of SMA, because the further development of strategic management need the support from SMA, whatever it is classical SWOT analysis model or Porter’s competitive strategy model, management accounting system can help to create a common language for strategy of market. (Nixon and Burns, 2012) Furrer et al. (2008) also claimed the importance of using management accounting techniques to support …show more content…
Analysis of competitors was introduced by Simmonds into management accounting in 1981.Based on this, Langfield-Smith (2008) strength the importance of provide competitors information to company. Ward (1992) claimed that the competitive advantage was gotten only through compare with competitors, this comparison should be accurate and clear. Competitor analysis accounting is utilized competitor analysis. It focusses on the financial information of competitors, like price information, cost information. So, the quality of financial analysis of competitors is important for the company to make the correct countermeasure and to improve their value chain. Ward (1992) also suggested, during the same period, with the similar changes to the cost of competitors, company should cut costs on the basis of strategic decision. Through these, companies can get competitive advantage. (Lords, 1996) For example, M&S in a high competitive environment, the main competitors of M&S are Tesco, Sainsbury’s.
“Cost control remains a top priority, by implementing a sensible, competitive pricing architecture for our customers, we have seen encouraging improvements in full-price sales.”
“With product innovation remaining the backbone of our Food business and a

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