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Marks & Spencer

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Submitted By ranawaqas7
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Marks and Spencer: Plan A
Issue:
Issue of the Marks and Spencer written below: * Fluctuation in M&S sales
(According to data which provide in the case show that M&S growth is not constant) * High prices then competitor like Tesco Value
(Cost of M&S is high while competitor prepare the product at low cost) * In UK company face perfect competition * Social environment
(In the past M&S face problem in social image but still they implement “Plan A” in future) * Plan A is perfect and in future it is successful?
Analysis:
Fluctuation in M&S sales:
Sales of M&S do not grow at constant rate. Sales growth rate varies from year to year in some year growth is high and in some year growth is low and in some year growth is negative. For example in 2004 growth as compared to 2003 at 27.04% while in 2005 growth is 9.09% in next year 2006 growth is negative -17.34% and next year 2007 is 42.85%.
High prices then competitor like Tesco and Sainsbury’s:
Cost of M&S is higher than competitor because M&S use 100% British made products. So that the competitor took advantages of this by offer high quality and low cost imports to undercut M&S’s prices.

In UK M&S face perfect competition:
Because the market of the UK full saturated and all companies face perfect competition. Due to this reason growth rate in the UK market is not good or attractive. For further expansion M&S move toward other Market in different countries.
Social environment:
In past M&S cannot do anything regarding environment or social welfare of the society and UK is a developed society and people care about these things. Reforms about social environment have heavy impact on sales. In January 2007 M&S launched Plan A but implement in future.
Plan A is perfect and in future it is successful:
Plan A is perfect and all those reforms

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