Mark&Spencer Case Study Essay Example
Mark&Spencer Case Study Essay Example

Mark&Spencer Case Study Essay Example

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  • Pages: 6 (1570 words)
  • Published: January 5, 2017
  • Type: Case Study
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Operations management involves multiple aspects such as product creation, resource planning (material, financial, and human), and monitoring and controlling production activities. Its main goal is to optimize the organization of supply, production, and distribution of goods and services. The objective is to improve value-added processes by reducing expenses, enhancing operational efficiency, and consistently improving the flow from supplier to customer for maximum satisfaction. Adam Smith first introduced operations management in 1776, and it has been widely embraced by companies that continuously adapt their strategies to align with its principles.

The purpose of this essay is to explore and examine the various perspectives of operations management, its developments, and significant changes over the past decade. It also aims to define the new objectives of operations management within the retail industry, specifically focusing on Marks & S

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pencer. The essay will investigate the management techniques employed by M&S, evaluate their effectiveness, and anticipate their future operations. Firstly, we will introduce Marks & Spencer, discussing its historical context, corporate strategy, and evolution in operations management. Subsequently, we will analyze the overall advancements in operations management and examine its current objectives.

A.Presentation of Mark & Spencer

Marks & Spencer, established in 1894 in Leeds by Thomas Spencer and Michael Marks, is a global retailer. The company initially operated in small city markets in the north of England but has now become the most iconic chain in the United Kingdom, boasting 294 stores and leading the country's clothing industry in terms of revenue. Operating in 34 countries with 718 locations, M offers clothing and footwear, as well as high-quality food and wine, gifts and flowers, and various hom

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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.

style="text-align: justify">The objectives of Operations Management have been changed.

Operations Management aims to increase the value of products by enhancing the production process. This can be done by improving product quality, design, global distribution, and utilizing B2B exchanges.

The focus of OM has been primarily on production thus far. However, in order to expand, it is essential for OM to seek new areas for growth. Conducting surveys enables companies to gain a comprehensive understanding of consumer expectations. Although quality is an unchanging attribute, it can be further enhanced. Enhancing quality not only demonstrates professionalism but also fosters trust in a brand or company. Moreover, customers associate higher prices with better quality, which justifies the implementation of high-quality products/services at a higher cost. To enhance Operations Management practices, companies must adopt "green business" strategies that align with eco-friendly norms due to the growing concern over pollution in today's society. This includes implementing recycling initiatives, minimizing pollution levels, and exploring innovative production methods.

Innovation involves research and development costs, but it provides companies with the opportunity to build trust with customers. The rise of globalization has introduced a new potential in outsourcing. Companies are tempted to establish factories in developing countries because of their offer of cheaper materials, looser regulations, and chances for collaboration with local manufacturers, which leads to exploring untapped markets. However, there are also downsides linked to outsourcing; employees may have to relocate or lose their jobs during this process. Therefore, precautions must be taken to ensure that these relocations do not negatively affect employees and damage the company's reputation.

The final objective of Operations Management is to enhance the

supply chain. As the number of customers increases, companies have to increase their production. To achieve this, they require efficient processes and access to new inputs. Moreover, it is crucial for them to establish strong partnerships and maintain good relationships with suppliers, as it benefits both parties. Saving time ultimately leads to saving money.

Operations management is crucial for a company's budget as it provides cost-saving tools to enhance the efficiency and effectiveness of business operations. Given that management is always changing, managers must adapt promptly and effectively. Operations management has the ability to completely revolutionize a company and its results.

In the current competitive market, it is crucial to create a powerful image and build customer trust by highlighting factors like quality and design. Operations management, a relatively new discipline, has great potential due to the increasing focus on sustainable development. Customers prioritize environmental protection, so Mark & Spencer should align their strategy with this growing trend.

Before this study, my understanding of Operations Management was limited. I knew the different parts but struggled to see how they were related. However, by examining the Wal-Mart case and studying this subject, I now appreciate how crucial Operations Management is for a company's operations and expansion. I have learned that it continually evolves and adjusts its strategies to match societal advancements, ultimately leading to changes in diverse scenarios.

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