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Copy of Marks and Spencer PESTEL and SWOT analysis

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Wandap Lyngdoh

on 22 January 2014

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Transcript of Copy of Marks and Spencer PESTEL and SWOT analysis

Strengths
Weaknesses
P.E.S.T.E.L.
Analysis

Political
Economic
Social
Technological
Environmental
Legal
Opportunities
Threats
Anna Prokhorova
Summary
Content:
1.M&S's organisational
structure
2.SWOT analysis
3.PESTEL analysis
4.Summary
Thank you for your attention!
Organisational
Structure

Marks and Spencer is one of the leading and rapidly growing businesses not only in the United Kingdom, but also in the international market. The company has been offering a great quality and value foods, clothing and home products for more than 125 years.
The M&S’s business strategy and new structure imply the decentralised approach to the organizational structure of the business.
Positive reputation and brand image of the company
Improving the unique selling points of the products
One of the most efficiently built infrastructure
and business organisational environment
Successful international market penetration
M&S is one of the most awarded companies in the industry.
One of the most sustainable supply chain in the industry
(The Guardian (2013))
High cost of the
products offered
in comparison to rivals
“Marc Bolland (the chief executive of M&S), under increasing pressure for
the poor performance of Marks & Spencer's clothing business, has persuaded Kate Bo stock, head of general merchandise, to leave the business.” (Wallop (2012))
“According to the 2011 Which? supermarket survey, Waitrose customers gave a satisfaction score of 85% and praised it for making shopping a “pleasurable experience.” On the other hand, Marks & Spencer received a rather sultry 68%.” (Blue (2012))
The necessity of the new
marketing strategy focusing
on the younger audience
“Marks and Spencer, the UK's biggest
clothing retailer, has posted pre-tax
profits of £290m for the six months
to the end of September,
down 9.7% from the same period
last year.” (BBC (2012))
Decrease in pre-tax profits
Problems in the company’s environment
High costs
Business and Marketing strategies
Customer satisfaction
(Marks and Spencer Annual report and financial statements 2012 (2012))
Russia
China
India
Development of the online sales market
Successful transitioning into the banking sector
Slow economic recovering
Strong competitors: Debenhams, Zara, Next etc.
(Rowe (2013))
Constantly changing political climate
Taxation policy
Constantly changing governments’ policies
“Our strategy is to transform M&S into an international, multi-channel retailer and reduce our dependency on the UK economic cycle.” (Marks and Spencer (2013))
"The nation’s habits of eating have been changed essentially because of the economic crisis." (The Economist (2012))
Strong positive brand image by setting the policies of creating more equal societies
Donating money for many charities
Information and communication solutions
YouTube channel
Technological innovations
“Marks & Spencer has today confirmed it is the first carbon neutral major retailer.” (Holland (2012))
(Marks and Spencer Annual report and financial statements 2012 (2012))
As part of the agreement with the Greenpeace,
M&S has declared to take out
the toxic chemicals out of production process
Recent lawsuit with Interflora
“Plans for a shake-up of consumer law risk
adding complexity to the system for retailers
and creating a less business-friendly
environment, retailers have been warned.”
(Danaher (2011))
Despite the current problems with poor performance of Marks & Spencer's clothing business, M&S still manages to remain at the top positions in the retail industry. Moreover, the business is set to expand dramatically in the coming decades.
(This graph shows the M&S’s market growth in 5 years (The Financial Times (2013)).
Full transcript