marks and spencer
Marks and Spencers has had a consistent record of success and profitability until recently when they were suddenly hit by falling sales. Marks and Spencers were totally unprepared for this and while they were developing new stores and expanding the business their competitors were strengthening. Because Marks and Spencers have been highly successful and competitive for so long their was no pressure to improve the business and now its competitors have overtaken and underlying problems have arisen, something needs to be done. The business needs a complete overhaul management needs to be streamlined, the business structure needs to be re-organised to make it more efficient and the marketing mix need to be changed to begin with. I shall research into Marks and Spencers mostly by going to their website and finding break-even charts, profit and loss accounts and financial results for recent years. I will also go into Marks and Spencer stores and ask for relevant information such as accounts, and I will look around stores to see if anything needs to be improved such as the layout and the appearance of the shop etc. I will look at Marks and Spencers product ranges and the style of its clothes to see if the quality is up to standard a
The Financial summary shows useful information for the past 5 years from this you can see that profit has been increasing until 1999 when it sharply drops. Once Marks and Spencers starts implementing well researched recovery programmes the business will once again have its past success and profitability. More employees have been hired this is shown on the cash flow sheet where payments to employees has gone up also the financial summary shows that retail space has gone up. The balance sheets show where the money is obtained and how it is spent. The food and the financial services parts of the business are doing well. M&S launching on-line shopping was a good idea because it shows the business is keeping up with the times and it will increase turnover also M&S will be able to compete better with rival companies that also use e-commerce. A balance sheet and a cash flow statement are also included they show where the money is coming from and how it is being spent. The Financial summary shows that there isnĘt much difference between the 1998 and 1999 group turnovers, but there is a very large difference between the 1998 and 1999 profits to such an extent that Marks and Spencers profits have nearly halved, this would suggest that costs have radically increased. The M&S website is one of the most popular in the UK, launching on-line shopping will take advantage of this popularity by offering customers and alternative way to purchase goods. I will then use the data to help me reach accurate recommendations on how to stop Marks and Spencers profits falling. Overseas retail in Europe is doing well as turnover is increasing and Brooks Brother and Kings Supermarkets turnovers are increasing, so the problem is the clothing sector of the UK retail part of the business and this is where profit is being lost. The clothing aspect of the business needs to be focused on. Putting leaflets in newspapers advertising promotions, special offers and new products etc will increase sales but will also make people aware of new products and offers so they can take advantage of them. com for information on M&S in its archives. they need to look brighter and more colourful this would make them more attractive to customers and improve Marks and The stores themselves need a new look as they are too drab at the moment Spencers image.
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