Mark&Spencer Case Study Essay Example

furnishings. Additionally, it offers financial services such as life insurance, loans, and account cards. However, retail comprises 96% of its business. The company targets middle to high-class customers in major cities and has earned consumer trust through its reputation for providing products of superior quality at reasonable prices. Notably, M owes its growth to its exceptional management support.

The supply chain of Mark ; Spencer:

The expansion of the Mark ; Spencer's brand has resulted in the development of its supply chain, which has a vital role in ensuring effective delivery of products to stores and improving customer satisfaction. The primary goal is to maximize quantities while reducing expenses.

The physical infrastructure of the supply chain has remained mostly unchanged since 1970, but it needs improvement to meet global demand. Proper control over every aspect, from sourcing to store management, is crucial for the organization, and efficient stock management is necessary for increasing profits. To achieve this goal, the company plans to construct new warehouses worldwide, expand stockholding abroad, and consolidate facilities overall. These changes require a significant investment but will give the company a competitive advantage. Furthermore, as the supply chain evolves, there is an expansion in the Information Technology system. This involves creating new points of sale and incorporating additional tills and hand-held terminals in stores to facilitate stock management. Additionally, self-service tills are being increasingly tested due to their fast operation that enhances customer satisfaction.

Organizational Chart

The most involved function in operations management is the IT & Logistics department, as it manages the company's supply chain and optimizes the organization to maximize profits at minimal cost.

The Human Resources department is also crucial in recruiting the most efficient personnel. The marketing and communication departments play a significant role in influencing customer choices through their effectiveness. Lastly, the Chief Executive Officer makes decisions and sets the future strategy of the firm, which impacts operations management, while the Chief Financial Officer plans the budget to drive company growth.

The strategy and evolution of B. Mark ; Spencer.

The retail planning process involves 6 steps. Mark ; Spencer aims to achieve global growth and be recognized for its customer orientation, high-quality products, impeccable service, and pleasant shopping environment. However, they also prioritize their core values of quality, innovation, service, and trust. This is why customers have a preference for M;S, as the company goes beyond simply providing products.

Mark & Spencer is implementing a strategy called "the plan A" in order to become the fastest-growing retailer worldwide. The plan, launched in 2007, initially included 100 commitments to be achieved by 2012. However, it has now been expanded to 180 commitments that must be accomplished by 2015. Plan A focuses on five main pillars: Climate Change, Waste, Sustainable Raw Materials, Health, and Fair Partnership. Alongside introducing new initiatives, many existing ones will also be extended, such as fair trade cotton. The company's goals include reducing the use of plastic packaging and bags by substituting them with biodegradable alternatives. Additionally, they will test composters in their stores to generate biogas from expired food. Mark & Spencer strongly believes in its motto – there is no second plan; plan A cannot fail and remains their sole choice for the future.

The advancements

in operations management

Operations Management has witnessed significant changes in various fields, with quality playing a crucial role. The impact of quality on production costs is substantial, as low-quality products result in additional expenses for defect identification and harm the reputation of the company.

Achieving higher margins and reducing losses is possible by offering high-quality goods, which also reduce the chances of returns. Various efforts have been made to improve product quality, resulting in the creation of new control tools like benchmarking and Total Quality Management (TQM). These tools aim to satisfy customers quickly and cost-effectively. TQM involves four steps: planning (identifying needs and selecting appropriate products), analysis (identifying differences from competitors), integration (establishing objectives and acquiring necessary resources), and action (forming groups to implement changes, initiating new projects, and comparing results with past performance).

The importance of design in differentiating goods and services is increasing. The physical appearance, colors, and materials used in design represent a company's image and choices. In the past, design was not as significant as performance and practicality. However, nowadays people prefer products that are visually appealing, colorful, with innovative forms, easy to use, and environmentally friendly. This emphasis on design is a result of globalization.

The globalization of companies has resulted in notable transformations, such as relocation and child labor concerns. The progressive advancements in Information Technologies, the growth of the Internet, and improvements in transportation systems have enabled companies to manufacture and distribute goods globally. Nevertheless, they face difficulties stemming from diverse conditions and cultures across countries, along with ethical issues concerning child labor. Additionally, relocation has caused joblessness and displacement for specific workers.