Business Essay example
MARKS AND SPENCER
In this assignment, I will be explaining the strengths and weaknesses of Marks and Spencer and will be discussing to which extent I regard leadership, corporate culture and corporate governance as key factors in accounting for Marks and Spencer’s underperformance over the last twenty years.
Identify and explain five strengths and five weaknesses of Marks and Spencer.
Marks and Spencer is a British retailer which was founded in 1884 by Michael Marks. It became known as Marks and Spencer after getting into partnership with Thomas Spencer. They started off with a single penny market stall, then gradually expanding them into stores, and are now international retailers …show more content…
Just like any other organisation, Marks and Spencer has its weaknesses and drawbacks too.
1) No market for younger generation. Even though Marks and Spencer has a wide variety of brands and products, it has no range for teenagers and young people. It stocks for 30-60 year olds mostly. The younger generation has no interest and this results in low business. They should cater for all age groups.
2) Marks and Spencer is heavily reliant on British suppliers where as its competitors use both foreign and British suppliers, saving money on low cost items from foreign traders.
3) Poor technology use. Marks and Spencer has a backdrop of using old techniques rather than advancing with age and adjusting to new technology. Manual work not only increases cost but uses more time too. Organisations are using both mechanised and automated technology to help utilise both cost and time, whereas Marks and Spencer is increasing manual cost and hours.
4) Lack of advertisement. Marks and Spencer do not offer discount sales in festive seasons, such as Christmas or Easter. This is the time when customers tend to buy a lot of goods.
5) Not keeping up with competitors. Marks and Spencer is struggling to keep up with competition as it is limited in variety of stock such as clothing