Marks & Spencer's Shared Value Approach and Competitive Positioning Q/A

Marks & Spencer's Questions and Answer Example

Q1: Analyzing the extent to which M&S harnesses a shared values approach to stakeholder management

A useful technique for comprehending and handling the interactions across a corporation and the parties involved is analyzing shareholders. The degree that Marks and Spencer accept its common goals technique for managing its stakeholders may be determined by doing a stakeholder study utilizing the authority interest grid. By their amount of authority and interest within the firm, investors are grouped according to a power interest grid (Mustafee, 2020). Highly influential and elevated-interest investors come first. M&S has paid special thought to these since they have the potential to have a big influence on the company. This group comprises clients, staff members, and stockholders. M&S acknowledges the significance of these parties and works hard to fulfill their requirements.

Figure 1: Stakeholders Analysis: Power/Influence-Interest Matrix

Clients possess significant influence and interest since they are the backbone of every retail organization. To keep faithful consumers, M&S places a strong emphasis on offering premium goods, first-rate client assistance, and a frictionless shopping process. M&S seeks to comprehend and connect to the principles and tastes of its consumers by utilizing an agreed-upon goals strategy, assuring their happiness and ongoing assistance. A further major shareholder category that possesses all interests and authority is the workforce. M&S understands the value of workers who are inspired and put in place several programs to promote their growth and wellness. The business offers fair wages, makes investments in initiatives for education & growth and keeps a positive work atmosphere. By fostering a supportive and devoted staff, this mutually beneficial strategy aids M&S in achieving its objectives.

Through their monetary involvement, stakeholders possess substantial authority and a stake in the success of the business. Maximizing investor return is important to M&S, thus the company works to keep open lines for interaction, solid corporate oversight, as well as accurate cash flows. M&S exemplifies an agreed-upon objectives strategy by coordinating its objectives and plans with the needs of its stockholders and emphasizing ongoing profits and expansion. Governmental organizations and rules and regulations are examples of parties in this group since they have significant authority but minimal interest (Mittal, 2019). Although they have the power to impose rules and guidelines, they might not be very concerned with M&S's ongoing business activities. Yet, M&S is aware of its need to follow laws, as it collaborates with authorities to uphold the highest standards of morality and law. The connection across M&S as well as those who regulate is strengthened by this dedication to common principles.

The supply network for M&S is extremely important because of its limited power as well as the great interest of its contractors. Developing trusting, long-lasting relationships with its vendors and supporting upright and moral procurement principles are crucial to M&S. By implementing programs such as the Plan Ecological program, M&S promotes vendors in encouraging ethical buying and minimizing greenhouse gas emissions. Amongst M&S as well as its vendor partners, this common ethos strategy promotes cooperation and beneficial outcomes. Residents as well as the wider population are examples of all parties with minimal power/interest (Matthews, et.al, 2019). Despite the potential for less immediate effect, M&S regularly participates in CSR projects because it recognizes its obligation as a business person. The business encourages long-term viability gives to regional populations and helps philanthropic organizations. This strategy of promoting common principles improves M&S's standing and promotes wholesome interactions with the public at large.

Q2: Examining the resources and capabilities of M&S in terms of its ability to respond to current opportunities and threats

To adapt to the possibilities as well as risks it is now present in the marketplace on a worldwide scale, M&S has been given an extensive range of assets and expertise. It may learn more about the business's capacity for adapting to the ever-evolving retail business via undertaking a thorough review of its assets and expertise. M&S's strong public image constitutes one of its most valuable assets. Through a history lasting more than a century, the company established an enduring and recognizable business that is associated with British standards, dependability, and durability (Upadhyay, 2021). Its standing enables the business to draw in devoted client origin, both domestically and abroad, creating a strong platform for development as well as progress into novel regions.

The corporation has a significant offline existence because it runs multiple locations in diverse areas. Using this connection, the retailer can adapt its item offers to different client categories and react swiftly to regional marketplace needs and buyer habits. Additionally, M&S’s logistical skills help it be able to react to hazards and possibilities in the worldwide company climate. The organization may assure continuous item consistency and accessibility according to its existing partnerships with vendors. M&S embraces ecology with its planned project, putting an emphasis on fair trade and caring for the planet. Such programs support rising customer appetite for ecologically and sustainably produced goods, giving M&S a competitive edge in the market for green businesses.

The staff and corporate atmosphere of M&S are also essential to the company's agility. Its staff is knowledgeable about the complexity of the retail business and is competent and seasoned. With its dedication to education and the advancement of employees, M&S can react quickly to marketplace changes and seize new possibilities by fostering an environment that values creativity and ongoing enhancement. The retailer displayed experience in creating and designing products in the context of skills. The business's clothes and household item lines continually provide fashionable and excellent items which appeal to its intended demographic. The capacity enables M&S to successfully adjust to shifting customer demands and remain competing in the rapid style sector.

The capacity of M&S to broaden its line of goods was recently demonstrated. The business not only sells apparel and household goods, but it also includes a reputable food segment that is renowned for providing fresh, superior foods. M&S continues to sustain steady income flows despite market volatility in particular product lines (Chaveesuk, 2021). To improve its activity effectiveness and client satisfaction, the retailer took on digitization and innovation. With the help of its web-based shopping cart, the business is in a position to access more clients and rivals in the expanding internet retail sector. Through making technological investments, the retailer stays flexible and adaptable in response to a growing need for online purchases.

Nevertheless, considering its advantages, M&S is faced with some difficulties that put its standing in the worldwide market at risk. The market share was losing due to fierce rivalry between conventional as well as internet shops. To combat it, the company must continuously develop and distinguish its offers to draw in as well as keep clients. M&S faces both possibilities and risks as a result of the shifting customer scenario brought on by shifting age groups as well as tastes. To address the needs of teenagers, digitally savvy customers and retain its current customers. The corporation has to be aware of evolving patterns along with modifying its strategy appropriately (Rze?ny-Ciepli?ska, 2021). Furthermore, the business processes along the supply network of the retailer might be impacted by the current state of the world economy and instability in geopolitics. The business needs to keep using efficient processes for risk control and widen its buying as well as supply network methods to reduce such hazards.

Q3(a): Assessing competitive positioning of M&S

In analyzing the business's market position, the claim that M&S’s performance is grounded in its customer-oriented as well as eco-friendly sustainable strategy has considerable value. Eventually, M &S deliberately positioned its company practices to be consistent with an intense dedication to client happiness and environmentally friendly, eco-friendly activities, and this has caused a significant impact on the development of its edge in competition as well as the marketplace. Some of the keys to the firm’s prosperity were its client-centered strategy. The business constantly provides items and amenities that are tailored to the specifications and tastes of its intended audience because it gained an in-depth awareness of them (Rahdari, et.al, 2020). The retailer has a solid track record for providing stylish, superior clothing as well as household items that appeal to its clientele. The company was able to remain relevant and satisfy changing client needs by keeping an eye on buyer habits and continually looking for input. The business's emphasis on its client’s encounters is seen in both the choice of goods and dedication to providing top-notch client service. If either its storefronts or its online outlet, M&S wants to make sure each step of the purchasing process is simple and pleasurable for its clients. This customer-centered strategy encourages commitment and strengthens the corporation's competitiveness standing since happy consumers are more probable to purchase from the company again and recommend it to others.

An important point of differentiation in retailing is now the firm’s eco-friendly ecological responsibility strategy. This business 2007-launched its Plan A program, which aims to solve social and ecological problems, encapsulates a complete set of sustainable development objectives. Reaching zero emissions and sending no garbage to landfills are just two of the lofty goals M&S sets for reducing its ecological footprint. The organization reaches an increasing base of ecologically concerned customers by adopting green practices. Because of how M&S is positioned, it has an advantage against rivals who might not be as committed to ecology as they should be (Tremori, 2021). Its stance is in keeping with worldwide developments in socially as well as ecologically conscious consumerism. Customers’ trust is increased by the firm's open disclosure of ecological indicators, which adds to its dedication to eco-friendly business procedures.

The ecologically conscious programs of M&S go far beyond ecological problems. The firm emphasizes fair wage practices, fostering social accountability, and responsible procurement along with supply network practices. This strategy appeals to customers who give moral concerns priority when making purchases; also it helps the retailer maintain its image as a trusted and accountable company. The eco-friendly longevity strategy of the company is in line with what different key players, such as regulators, workers, and shareholders, demand. Due to its ethical business practices, the organization may inspire environmentally conscious shareholders, strengthening its economic viability as long-term viability remains an important consideration in making investments. Staff loyalty is boosted by environmentally friendly and ethical business procedures, which also help businesses recruit and hold on to the best talent by emphasizing their social obligation. While the benefits of M&S’s client-oriented and environmentally conscious continuity strategy, the business nevertheless confronts difficulties keeping its rival’s posture (Hortovanyi, et.al, 2023). The rapid trend, industry and huge online retailers frequently cause upheavals in the retail sector, which is constantly changing and extremely fiercely rivalry-driven. To maintain its dominant position, the retailer should consistently develop and adjust to shifting customer tastes and technology improvements. To stay competitive in the marketplace, it requires establishing equilibrium across price and ecology.

Q3(b): Discussing the current and potential benefits of corporate level strategy for the company’s shared value creation

To increase its footprint in emerging marketplaces and regions, M&S has developed an expansion plan for its business structure. With this corporate strategy, the firm hopes to increase jointly generated worth, reach novel client groups and increase profit (T?nase, 2021). The company now primarily works in the UK, as well as where it evolved into a powerful and recognizable identity. Yet, the business also recently had to contend with difficulties in its native marketplace, involving increasing rivalry from e-commerce sites and trendy clothing, labels. To extend its regional reach and lessen its dependency on the marketplace, the retailer was committed to a plan to grow.

Accessibility to novel clientele is among this expansion approach’s major advantages. The firm may access a further extensive and varied clientele by entering foreign markets. By adjusting the item it offers to regional requirements, the firm will be able to adapt to the tastes and wants of customers in various geographic locations (Alexander, 2020). The corporation’s capacity to interact with a larger spectrum of consumers, as a customer-driven organization, increases added cost through offering items that can be relevant to many people of all backgrounds. M&S may strengthen its nameplate and client commitment in emerging sectors by utilizing its present abilities in designing goods, quality assurance, and client relations. Through leveraging its main skills, the business obtains benefits of enormous scale, optimizes its supply network, along with boosts effectiveness, all of which help to create a common benefit. Risk mitigation is an important advantage of the Expanding Plan. The retail sector is prone to marketplace volatility, and the retailer is exposed to particular dangers due to its excessive dependence on just one market. The retailer lessens its exposure to local financial crises or changes in customer behavior by entering novel markets (Brabbs, et.al, 2019). The enterprise's steady growth is supported by its threat reduction plan, which also protects the development of common benefits for all parties involved.

As a result of the firm’s growth in foreign markets, essential knowledge of various consumer tastes and company procedures is provided, facilitating cultural knowledge and sharing. It encourages continual creativity and strengthens the worth idea, which strengthens the production of mutually beneficial via enhanced items and amenities. Additionally, the growth offers the retailer chances for creativity and flexibility. To cater to regional consumer tastes and habits, the corporation might have to alter its line of goods as it expands into emerging marketplaces or launches items that are exclusive to those areas (Barwell, 2020). This flexibility supports a creative atmosphere at M&S, allowing the company to remain current and viable in a rapidly evolving worldwide marketplace.

Consequently, creativity encourages the production of common benefits through improving client experiences and addressing investors' changing requirements. A lot of materials, market analysis, as well as facilities must be invested to grow into novel regions. It may be challenging and costly to navigate various laws and social customs. To enable an effortless shift and preserve the accessibility and standards of the good, logistics as well as supply network oversight are crucial. Successfully resolving these issues is essential to maximizing the advantages and producing mutually beneficial output from the growth plan. Hence, by exploring business operations M&S would become able to offer products or services to the large number of customers. This in turn results into high sales, profitability and market share. Hence, it can be stated that market expansion strategy will prove to be more beneficial for M&S.

References

Books and Journals

Alexander, B. and Bardey, A., 2020. Moving From the UK to China: The Case of M&S and How Fashion Brands Should Adapt Their International Strategy to Consumers. Bloomsbury.

Barwell, R. and Wainer, G., 2020, May. Strategic airlift operationalizing constructive simulations. In 2020 Spring Simulation Conference (SpringSim) (pp. 1-12). IEEE.

Brabbs, J., Lohrer, S., Kwashnak, P., Bounker, P. and Brudnak, M., 2019. M&S as the key enabler for autonomy development, acquisition and testing. In Ground Vehicle Systems Engineering and Technology Symposium.

Chaveesuk, S., Khalid, B. and Chaiyasoonthorn, W., 2021. Digital payment system innovations: A marketing perspective on intention and actual use in the retail sector. Innovative Marketing, 17(3), p.109.

Hortovanyi, L., Morgan, R.E., Herceg, I.V., Djuricin, D., Hanak, R., Horvath, D., Mocan, M.L., Romanova, A. and Szabo, R.Z., 2023. Assessment of digital maturity: the role of resources and capabilities in digital transformation in B2B firms. International Journal of Production Research, pp.1-19.

Matthews, C., Wilkerson, R.B., Johns, R.C., Trellue, H.R. and Martineau, R.C., 2019. Task 1: Evaluation of M&S tools for micro-reactor concepts (No. LA-UR-19-22263). Los Alamos National Lab. (LANL), Los Alamos, NM (United States).

Mittal, S. and Tolk, A. eds., 2019. Complexity challenges in cyber physical systems: Using modeling and simulation (M&S) to support intelligence, adaptation and autonomy. John Wiley & Sons.

Mustafee, N., Harper, A. and Onggo, B.S., 2020, December. Hybrid modelling and simulation (M&S): Driving innovation in the theory and practice of M&S. In 2020 winter simulation conference (wsc) (pp. 3140-3151). IEEE.

Rahdari, A., Sheehy, B., Khan, H.Z., Braendle, U., Rexhepi, G. and Sepasi, S., 2020. Exploring global retailers' corporate social responsibility performance. Heliyon, 6(8).

Rze?ny-Ciepli?ska, J., Szmelter-Jarosz, A. and Moslem, S., 2021. Priority-based stakeholders analysis in the view of sustainable city logistics: Evidence for Tricity, Poland. Sustainable Cities and Society, 67, p.102751.

T?nase, C., 2021. Global Retail Trends: Rethinking the Strategy of Doing Business.

Tremori, A., 2021, March. M&S Based Testbed to Support V&V of Autonomous Resources Task Coordinator. In Modelling and Simulation for Autonomous Systems: 7th International Conference, MESAS 2020, Prague, Czech Republic, October 21, 2020, Revised Selected Papers (Vol. 12619, p. 123). Springer Nature.

Upadhyay, A., Kumar, A. and Akter, S., 2021. An analysis of UK retailers’ initiatives towards circular economy transition and policy-driven directions. Clean Technologies and Environmental Policy, pp.1-9.

Online

Stakeholders Analysis: Power/Influence-Interest Matrix. 2023. Online. Available through: <https://projectizing.com/stakeholders-analysis-powerinfluence-interest-matrix/>