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Marks and Spencer: Operations and Process Management Essay

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Important Points to Be Tackled

The development of the textile apparel industry was characterized by globalization, the evolution of casual trends, and continuing fashion development. These developments impacts the operations of the masses and proved to be difficult for Marks and Spencer and proved to be difficult for Marks and Spencer.

The remedies for these were too slow caused by poor production forecasts. The research was not carried on properly because the fashion changes were not expected and the initial plans in production were not correct. The first question I will ask the chairman and the chief executive officer will be what his plans are concerning change in the marketplace due to globalization. I will also ask him how he is going to keep up to date with the fashion trends.

In 1999, the Marks and Spencer clothing market share in the UK fall to as low as 14.3%. Two years earlier, it was 17% of the total market share. Marks and Spencer continued to hold 40% in women’s lingerie and 25% in men’s clothing, especially the suits. This was a clear indication that the customer base was aging.

Among the young people, the company had only a 5% market share. There was a 24% market share among those people who were 65 and above years old. Considering the statistics above, I would want to know what the new chairman and chief executive, Luc Vandevelde would do to capture a significant market share in the United Kingdom and to maintain it at that (Weitz, 1989).

Generally, Marks and Spencer’s operations in foreign countries brought in low profits. In Spain, France, and Germany, the total sale made remained meager and difficult to conduct. In Asia, the market crisis also remained worse. An attempt by the company to replicate its value chain in Canada was not fruitful. Canadian business operations were eventually closed in 1999 after a continuous loss was made (Hakansson, 1999). With respect to that, I would ask the new chairman and chief executive officer what strategies will be put in place to improve sales abroad and outside the UK.

Guidance for Turning Marks & Spencer Around

To turn Marks and Spencer around the company should upgrade its products using innovation and development in technical areas of production. The company should focus on research to come up with better fabric and appealing colors. Market research on fashion including formal, classic, and casual styles should be enhanced, both in the UK and abroad (Kotter, 1996).

The company should invest in attaining sustainable development through corporate social responsibility. Pohle and Hittner (2008) observe that organizations that perform well are popular companies with established brands and reputations. They explain that these companies succeed by taking responsibility for the welfare of the community and the surroundings in which they operate. Such companies practice corporate social responsibility in such a way that brings forth noteworthy income to their businesses (Pohle and Hittner 2008).

As part of corporate social responsibility (CSR), Marks and Spencer should control the production of dangerous emissions that affect global climate change. This can be done by adopting a green energy approach. It should also reduce its wastes production by use of recycled plastics in the packaging (Buckele and Chapman, 1997). It should also avoid the use of glass in packaging. The wastes produced can be used in energy generation instead of being sent to landfills. The company should improve its relationship with suppliers and customers as part of its effort to promote CSR (Sheila, et al., 2006).

As a guideline, the company should respond to the varying needs of the consumers by improving on value of the products without altering the quality. Although this could be posed as pain on a short-term basis, it is again in the long term (Williamson, 1989). Creativity in advertisements and sales promotion should not be compromised. This should avoid controversial television commercials. In the year 2000, the advertisement by Marks and Spencer of a Rubenesque woman climbing uphill was seen as pornography by some people. Others thought it was a desperate move by the company to claim back its lost clients, who had abandoned the company (Harle, et al., 2002)

Marks and Spencer got persuaded that grey and black would be in trend during the 1998/1999 period and developed its entire fall or winter assortment around those two colors. Unfortunately, they were mistaken on their gamble as both colors proved not to be in a fashion that season. As was reported in Business Week, they had to offer substantial markdowns to get rid of a very huge inventory of the wrong merchandise (Clawson, 2000).

Comparing Mark & Spencer’s Approach to that of Inditex Company

In its 1999 annual report, Marks and Spencer’s summarized its challenge to be able to hold on to its position as the number one fashion dealer in the UK, with their allocate in adult clothing continually on the increase and supporting its growth out of the country (Mark & Spencer, 2002). They continually upgraded their product ranges through originality and industrial development. They predicted trends well and bought new fabrics and colors with greater self-belief, thus, alluring their broad customer base through a balance of styles fashion and classic, formal and casual, across all their ranges.

Inditex, on the other hand, relied remarkably on well-situated outlet placements, products successfully targeted at the ever-shifting tastes of the stylish young shoppers that were and still are the mainstay of its target market. Clients soon learned from understanding that there would be a new touch in Zara shops every week and that 70% of the product range would vary every fortnight.

Zara’s product quantities were wittingly limited, both in shelf life and quantity. The aim was to uphold originality but also to steer clear of saturating the market with trendy designs. Instead, the booming designs were lightly transformed either in color, styling, material, or accessories. This way, Zara has always kept modern with ever-changing fashion trends without appearing dated or targeted to the masses.

References

Buckele, T. and Chapman, S. (1997) The perception and measurement of transaction cost. Cambridge Journal of Economics, 2(2), 127-145.

Clawson, John (2000) The new infocacies implication for leadership. Ivey Business Journals, 13(4), 34-36.

Hakansson, H. (1999) Corporate technological behavior. London, Corporation and Networks.

Harle, Pich et al. (2002) Marks & Spencer and Zara: process competition in the textile apparel industry. Insead, France-Singapore.

Kotter, J. (1996) Leading change. Boston, Harvard Business School Press.

Pohle, H. and Hittner, J. (2008) Attaining sustainable growth through corporate social responsibility. USA, IBM Institute for Business Value.

Sheila, Mendonea et al. (2006) when social issues become strategies. The McKinsey Quarter, 4(3), 6-8.

Mark & Spencer. (2002). Annual report. London, Adventure Works Press.

Weitz, Anderson (1998) Determinants of continuity in conventional industrial channels. London, Marketing Science.

Williamson (1989) Transaction cost of economics. The Jounal of Law and Economics, 13(2), 233-261.

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