Marks and Spencer Mission, Objectives and Responsibilities

Marks and Spencer Mission, Objectives and ResponsibilitiesIntroductionTerms of Reference.The spirit of this assignment is purely for academic reasons this assignment has been made principally to complete the module of Business milieu under the course HNC Business (Management) which I am studyingAims and ObjectiveThe assignment attempts to identify mission, objectives and responsibilities of an organization with its environment. It investigates the economic, friendly and planetary environment in which the organization operates. It investigates the behavior of organization and the commercializeplace environment. It explores the significance of International Trade and the European dimension for the UK business.Research MethodsMark Spencer Ltd nett sites articles, b ar-asseds, case studies. Theoretical studies from divergent books and Handouts from my tutor. Personal academic knowledge about Business environmentMission, Objectives and Responsibilities of Mark Spencer with it s environmentDeveloping a vision, mission and set is the foundation for the log term success, as demonstrated by Collins Porras in Built to Last. Mark and Spencer mission dictation as former propagation and still is Good quality for the penny whereby the penny turned bazaars into stores.Mission, Values, Key objectives and influence of stakeholdersVisionA vision helps working in goal congruence. It comes from inwardly as well as out fount. It accomplishes the followingGive a sense of the futureGuides decision making and strategyCreates a platform with same purposeLay crop up behavior guidelinesInspire emotionReflects the valuesMark and Spencer vision is to be the banal against which early(a)s are measured- BenchmarkingMissionA Mission statement is a statement reflecting what the physical composition business is and what lynchpin purpose is there. Mark and Spencer Mission are to make inspirational quality accessible to others.ValuesValues are the beliefs and norms of the org anisation. They stomach policies, objectives and procedures as they acts as an anchor and reference point for all the activity in the organisation. Mark and Spencer Values are Quality, Service, innovation and trustamernassargooglepages.com/MS.pdf .Key ObjectivesEmployee druthers Higher expectations that staff can contri hardlye more to the organization. There is a need for succession management. As such developing a career raceway for employees. Its part of Mark and Spencer to attract, motivate and retain high caliber workforce to assist the transformation of the business and deliver improved performance.Organizational objectives Mark and Spencer is to happen their leadership in clothing and specialty food. This is to be achieving by translating their scale and authority into superior quality, value and appeal.Sales objectives Mark and Spencer belief that there is multitude of room for improvement in their sales per foot. They saw Return per foot as a key operational object ive going forward.Stakeholders influence.Employees -Interested in ruminate security, financial benefits, and satisfaction Pursuit of systems goals rather than shareholders interest.Suppliers -Interested in Profitable sales, Payment for goods and Long term relationship-Response to try refusal of credit, court action and wind down relationshipGovernment Interested in Jobs, Training and Tax.-Response to risk Tax increases, Regulation and Legal actionPressure Groups Society Interested in Pollution, Rights and other.-Response to risk Publicity, Direct action, Sabotage and Pressure on Government.Achievement of stakeholders objectives by organizationIf a vision and mission is recognised by all stakeholders and affects every hiring, strategical decision and communication its effect can be magic. (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = d ocument.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() To achieve Stakeholders objective an organisation should be able to separate their interest from each other and as such act according to the power they exert in the organisation.Responsibilities of organization and powerful they are in satisfying themMark and Spencer does satisfies their stakeholders efficientlyEmployeesThey have a welfare department established in 1930.Their financial interest are safeguarded by bon engagements and increases in salary upon job performanceTheir package of benefits are extended, such as interest let loose loans grantedOpportunity of buying shares for the company at bonus or rights issue.SuppliersAlways used UK based suppliers, ensuring consistent qualityRelationship to built reliance on suppliersLife long relationship.Mutual reliableness respects the specification and standard.Social commitmentStrong tradition of Corporate Social ResponsibilitySponsorship of Chari ties and secondment programsCommunity development effortsGovernment social projects.Environment friendly-Mark and Spencer became the first retailer to remove all artificial colours and flavouring from its entire food and soft drinks range- April 2008-Mark and Spencer became the first retailer to launch schooltime wear made from recycled plastic bottle-Despite tough economic conditions Mark and Spencer stick to Plan A. As it gives them brand and differentiation and as AL panel said a sustainable business can be profitable iodinhttp//plana.marksandspencer.com/media/pdf/planA-2010.pdfEconomic, Social and Global environmentThe economic problem is mainly because of straight-out wants with limited resources. It is basically how nations decide to spread or allocate their resources effectively and efficiently to maximise the production goods and services.Economic System-Allocation and Effective use of resources.To deal with the principal of scarcity different countries use different ap proaches or types of economic system.Market Economy Private parties (Individuals or businesses) own a vast major(ip)ity of land, factories and other economic resources.Centrally Planned Economy Government owns most land, factories, and other economic resources and plans nearly all economic activity.The Mixed Economy Balance between market forces and state intervention. Certain activities need to be regulated by the state while others can be left to the influence of the market. It comprisesA free enterprise- where economic decisions reflects the market forcesPublic ownership control of key central industriesWelfare sector provide a minimum level of medical social and educational services for all citizens regardless of wealth.Impact of social welfare and industrial polity initiatives and the wider community.Benefit and Pension Mark and SpencerOnce youve worked for MS for a year you are qualified for the retirement plan where you can save up to 100% of your pay in the plan and t he company will check off it with double contribution (limited12%). It thus provide a secure retirement and with options to transfer your investment when youOn top of these benefits, MS also offer our packSAYE Scheme to all its employeesHave more holidays the longer you baulk with the companyThe company also subsidized benefits such as health and care and alveolar consonant care. Particularly in the UK, the push by retailers to meet the demands of a growing number of ethical shoppers has raised the profile of the ethical practices of businesses. Marks and Spencer, for example, is inviting shoppers to look tail the label at the sustainability of its products, as well as its bear on, fair trade and animal welfare practiceshttp//www.ft.com/cms/s/0/ec333092-f937-11db-9b6b-000b5df10621.htmlBenefit and Pension Government gestation period allowance, Paternity allowance and adoption allowance Benefit for those who do not meet the requirements for statutory payments. kid Benefit Pai d to whichever parents the child live with.Child Tax Credit Tax rebate for couple who has childrenGuardian allowance Tax free benefit for a child whom one is caring for but is not yoursDisability Living allowance- Child who has care needs or mobility problems.Housing benefit If your total income is below threshold and you pay rent you energy be qualified for housing benefit.State Pension Regular payment people claims when they get to certain age.Job seekers allowance People who are not working or working less than 16 hrs weekly can claim this benefit.http//corporate.marksandspencer.com/mscareers/rewards_benefitsThe government also provide Fiscal and Monetary policies for stability.Fiscal policy tools used by the government to influence level of economic activity through changing taxation or govt. spending. It can be targeted to a bad-tempered group. Fiscal policy is ineffective when investment is sensitive to interest rates and attempts to offset the actions of the governme nt.Monetary policy- is an attempt to control macro economic variables through use of interest rates. It is very weak when consumers are holding money rather than spending them when interest rates are very lowImpact of macroeconomic policy and influence of world-wide economy on UK organizations and stakeholders.PESTEL The External EnvironmentPolitical Integration of EU AND Free Trade Agreement the market has exposed up for British companies rudeing in Europe.Technology The introduction of e-commerce. M S promoting people to buy on line with incentives likes discount. It provides flexibility 24hrEconomy retail sector very sensitive to changes in the interest rates.Environmental Marks and Spencers commitment to the environment put them at them within the top ten greens brands in the UK recently * Global WarmingSocial Changes in consumer taste and lifestyle give rise to new market and consumers but also threats in terms of social acceptance to alcoholLegal National Health an d SafetyNational Minimum WageTaxation PolicyUse of renewable resources.SWOT ANALYSIS Mark SpencerSTRENGHTSReputation/Brand/GoodwillMarket positionQuality products Detail in supplier controlInternet shopSimon Marks understanding of customers preferences and trendsWEAKNESSESLack of newnessClothing- segmentationLagging to provide up to date fashionable clothesUsing most British suppliers believing high quality but low embodyCompetitors using overseas suppliers to combust costOPPORTUNITIESDefine target age groupStore a new upbeat lookRespond to customer taste and purchasing powerImprove CRM systems to retain existing customers and target potential new customers.To go global and expand the businessUse technology to improve their functioning and thus gain hawkish advantageTHREATSLoss of market share of intense emulationStrong competition with Next same price product but more fashionableDiscount stores like MatalanThreat from Giant Tesco and Sainsbury who penetrate in the market to supply added value.(http//bizcovering.com/major-companies/a-case-study-on-marks-and-spencer/2/)Stakeholders expectations developed according to changes in the market. For instance, MS brand loyalty concept is less likely to survive where there are several substitutes of same standard in the market. As such MS has to be creative and innovative and constantly reacting to the change in the buying deportment of the consumers.Market structures, market forces and Competition commission and regulatory bodiesMarket structures deviate from model of perfect competition.MS which has long been in this perfect competition, a market situation of many sellers and many buyers with similar or substitutes product. The price is opinionated by supply and demand and producers are to sell their products at the price determined by the market. Being in such competition the firm should have the perfect resource to produce and distribute efficiently as it faces fierce competition.MS deviated from the pe rfect competition to an Oligopolistic market structure, with the heavy advertising campaign for its brand name. As they are selling same product like other key players like Tesco, Asda but differentiate with its brand. It relies strongly on brand awareness and loyalty in a competitive market differentiate itself with the quality standard with other supermarket.Relationship between market forces and organizational responses.Porters Five Forces The IndustryThe five forces model provides a summary of the threats within the immediate industry.SuppliersLow in this IndustryDual SourcingStrategiesRivalryLow CompetitiveIn thisIndustryBargainingPower BuyersAggressivePricingStrategySubstitutePremium mark FoodSainsburyJohn LewisNew EntrantsLow Price Low costBHS/ASDAPortersFiveForcesBehavior and competitive strategies, Competition commission and regulatory bodies.The consumers buying conduct trends is reflected by an ageing population and the high number of women in the workforce. The increas e in disposable income and the lifestyle changes recent years. The revolution of home internet users online obtain which call for multi-cultural marketing. (Deloitte2005 Global powers of Retailing report).In the recent years because of fierce competition MS market share suffered a blow mainly their clothing segment. foreign when you consider MS Competitor, Tescos strategies to penetrate the UK market. Tesco operated on the pile it High sell it Cheap formula the early 70s and thereafter launches the operation check out which cut prices across their product and differentiate themselves from their competitors. Then Tesco diversified there channel of distribution with Stores like Tesco extra, Tesco metro and as well as beginning to open petrol stations.The Competition Commission has asked the Government to impose an ombudsman on the grocery industry to rule on disputes between supermarkets and their suppliers.The request comes after it failed to agree a voluntary arrangement with major retailersOnly Marks Spencer, Waitrose and Aldi backed the plan. The takeover of MS store card business of 763m by HSBC has given the Office of bewitching Trading to launch a competition investigation into the matter.Richard Fletcher, Executive Editor, BusinessPublished 820PM BST 04 Aug 2009 TELEGRAPH .CO.UKThe Office of Fair Trading has launched a starchy competition investigation into HSBCs 763m takeover of Marks Spencers store-card business.The firm Freshfield might be under investigation for its work advising Philip Green for abortion bid for MS and the investigation will be carried out by the Law Society, which regulates the Britishs legal profession.International Trade and the European DimensionImportance of international trade, economic integration and global markets to UK businessInternational trade is doing business across national borders and is the backbone of our modern computerized business world. These occurs mainly because of lower production costs in one region versus another, specialized industries, lack of surplus of natural resources and consumer tastes.Globalization is a process driven by international trade and investment. It is the trend towards greater economic, cultural, policy-making and technological interdependence among national institutions and economies. The benefits of globalization are as followsReduces marketing costsNew market opportunitiesBalance in level in income regain to low cost laborAccess to technical expertiseAccess to production inputs.The main drivers for Globalization areGATTWTORegional Trade AgreementsTechnological asylumAs MS is growing global and international competition has presented new argufys. The company stress its global sourcing principles amongst its selected suppliers and further down the supply chain which sets a minimum acceptable entry standard. MS want their suppliers to raise their standard as well to reflect the internationally recognized standard thus differentiating them and enjoying t he competitive edge.Impact of two policies of the European heart on the UK business organizationsThe Agricultural Policy has always been a tension between members state. The banned of the import of bitch from the US by the EU. The EU responded illegally according to the WTO with a refusal to comply. The US retaliated by levying an import tax of $ 117 m on imports of food from the EU. (Source Undersatnding European Union 3rd edition Anforme 2002.) Such transactions would impact the UK US relationship, it would adversely affect the UK economy. Last year only one Banking company crash in the US and the effect is still felt and now one can imagine if the US starts implementing quotas, barriers and levying tax on imports from the UK.The EU directives affect the UK businesses even the different bodies of the EU are not always unanimous about the directives set. For instance, Advocate General Leendert Geelhoed from the ECJ said that EU health foods directive infringe guidelines in his opinion. In the case brought forward by the industry groups the British Health Food Manufacture Association, National Association of Health Stores(NAHS) and Alliance for Natural Health(ANH) ahead of the ECJ.(Source http//news.bbc.co.uk/1/hi/health/441192- 13/04/05)The Economic implication for the UK of entry into EMU.The EMU was masterminded by Jacques Delores which is mainly single currency. The EMU is seen as a logical source of the single market and as a way of making EU more competitive and powerful in the world market. The EURO ZONE consistingLower cost for management of moneyFaster transactions across bordersElimination of exchange rate fluctuations.Market TransparencyThe impacts of EMU on UK economy are huge, since the major partners of the UK are members of the EMU. The Euro relative weaknesses against the pound and UK export to Europe more expensive and thus make it more difficult for UK businesses to sell their products. On the other side domestic consumers will buy impor ted rather than domestic goods. Government subjected the Five Economic tests before considering membership.Euro Zone economic structure compatible to UKIs the UK labor market flexible to meet the requirements of such developmentThe effect of the Euro Zone on the financial investment in the UK.The effect of the single currency on the competitive position of the City of London.Will the EMU be able to promote such growth, stability and employment that the UK has accomplished by its own.6.0 Conclusion and RecommendationsMS has been a leading retailer in the UK, but went through a phase by 1988 which pushed the firm into crisis. By 2006 MS reposition themselves in the market but could not enjoy the iconic brand it once was. They were to face the UKS largest and most profitable retailer in 2006 TESCO. MS respond tot the challenge with a drastic changes in management structure. They have to achieve the right balance between the corporate values, strong market position and the innovation to stay competitive. They need to use their strength Brand and product quality to be enabled to sustain profitability and to be less vulnerable to changes in the market condition. MS is in a very highly competitive and sophisticated industry, as such the need to be aware of the fashion trends, customer increasing expectations and changing tastes are more than ever one of the most important factor for them to consider. The lowering of international barriers has encourage a vast choices of product available to customer