Table of Contents

Company profile: Marks and Spencer Plc...................................................................................................2

History of Marks and Spencer PLC.............................................................................................................2
Mission: “To be the standard against which others are measured” (Marks and Spencer Plc, 2021)............4
Vision: “To make aspirational quality accessible to all, and values: Quality, Value, Service, Innovation
and Trust” (Marks and Spencer Plc, 2021)..................................................................................................4
Marks and Spencer’s five-year financial reporting statements analysis.......................................................5
Additional Workings...............................................................................................................................6
Trend Analysis............................................................................................................................................7
Market positioning analysis.........................................................................................................................7
Market segmentation...............................................................................................................................8
Perceptual mapping.................................................................................................................................8
Competitor analysis.....................................................................................................................................8
Competitor 1............................................................................................................................................8
Competitor 2............................................................................................................................................9
Merchandizing classification structure......................................................................................................10
Marks and Spencer Plc..........................................................................................................................10
Primark..................................................................................................................................................11
H&M.....................................................................................................................................................11
What Marks and Spencer have but competitors do not have.................................................................12
What offerings are made by the competitors but Marks and Spencer is not offering.............................12
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14

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Company profile: Marks and Spencer Plc.
Name of Company: Marks and Spencer Plc.
Type of company: Public Limited Company since 1927
Sector: Consumer benefits
Industry: Retailer stores
Founded: November 10, 1884
Headquarters: London, United Kingdom
Number of stores: 910 approximately (Worldwide)
Geographical distribution: United Kingdom and globally
Website: www.marksandspencer.com
Marks and Spencer Plc is a group of retail business stores operating in fashion industry

producing products such as cloths, menswear, footwears, undergarments, and other consumer

products such as food items. It is not only operating in United Kingdom, but it has globally

performing it functions facilitating the needs of consumer products [ CITATION Blo21 \l 1033 ].

History of Marks and Spencer PLC

Marks and Spencer Plc is a clothing brand started in United Kingdom since 1926. It became the

public limited company in 1927. It started its operations in 1884 as a Penny Bazar in Leads,

United Kingdom. It has more than 1390 store worldwide. Marks and Spencer running a group of

organization in which variety of their products for example, clothing, footwear, food, kids

clothing, men clothing and other fashion products. The company is performing its operations in

two segments and category. One is Marks and Spencer UK and the other one is Marks and

Spencer International under which it also has its operations in Pakistan asl well as other Asian

countries like China, India and European countries like Ireland, France and some middle east

countries. The Company also provides food items and other home items that are useful for the

daily routine activities. Marks and Spencer own approximately 910 stores based in United
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Kingdom in which there are approximately 350 food stores that are related to selling of food

item. [ CITATION Mar211 \l 1033 ].

Organizational structure of Marks & Spencer

Marks and Spencer Plc in a company who follows a flat organizational structure. As such type of

organizational structure have limited levels of management related employees between the

employees who work as frontline manages and the top line managers such as decision makers

and other leaders for example directors and senior managements of Marks and Spencer Plc. Due

to this organizational structure, the employee are more effective and efficient due to the limited

number of levels hence leading to the better communication. This type of structure helps not only

the decisions making but with this structure the bureaucracy decreases providing the workforce

to be more skilled and proficient. This also helps in the rapid changes to be made in problems

solving and solutions. Flat organizational structured organizations have pyramid shape of

structural design on which the top shape consists of higher management employees like leaders

and directors and following with the frontline managers at the bottom structure of pyramid shape

[CITATION KMe02 \l 1033 ].

Source: [ CITATION SKR16 \l 1033 ]

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Mission: “To be the standard against which others are measured” [ CITATION
Mar213 \l 1033 ].
Vision: “To make aspirational quality accessible to all, and values: Quality, Value, Service,
Innovation and Trust” [ CITATION Mar213 \l 1033 ].

Analysis and Evaluation of Five-year Financial Performance of Marks and Spencer Plc.

Marks and Spencer Plc is known as globally operating company whose growth has drastically

increased day by day. The data presented with the help of company’s past five years performance

includes profitability and expense ratio analysis. By comparing the five years financial statemen

of Marks and Spencer Plc, it is observed that the company has been decreasing its operating

expenses while at the same time the net profits are either being constant or increasing. None of

the year which has low operating expense have net income also decreased instead there is

increase in the net income can be seen in the figure below of comparison of five years

statements. This shows how the company is maintaining the higher levels of profits while the

operating profits are increasing every year. Similarly, the effect of cost of sales is reasonable that

the company is spending money on purchases that are related to the manufacturing and not the

operating profits. Marks and Spencer Plc has implemented the approaches of management

accounting in which they have not only implemented price optimization system but also the cost

accounting system with the help of which there is drastic decrease in the operating expense

which is a good symbol of obtaining and achieving the high profit aims, goals and organizational

objectives.

Reasons of financial performance of Marks and Spencer Plc

 Decrease in the cash outflows

 Decrease in the operating expenses

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  Maintaining the cost of sales
 Increase in the net profit margins
 Increase in the asset turn over ratio and gross profit ratio
 Increase in the return on investment ratio (ROI)

Marks and Spencer’s five-year financial reporting statements analysis

Source: [ CITATION Mar21 \l 1033 ]

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Source: [ CITATION Mar21 \l 1033 ]

6
Source: [ CITATION Mar21 \l 1033 ]

Additional Workings

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Trend Analysis

The above stated graph depicts the ultimate results of comparing the income with the expenses

including the operating expenses and cost of goods sold. It is analyzed that the net income is

being remain constant with the drastic decrease in the expenses involved in manufacturing the

products and other operating expenses. The graph shows that the company has put a lot of efforts

in decreasing the cost of sales and operating expense while managing the net income constant at

certain level.

Market positioning analysis

Market position analysis in done in which the market value of a product is perceived by the

company. It valuates where the products stand in the market while comparing the product with

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other market competitor. With the help of this analysis, companies can perceiver the customers

or target audiences needs and wants related to the specific product [CITATION Nei21 \l 1033 ].

Market segmentation
Marks and Spencer Plc segments its customers and audience to different categories from where

the company identifies the market value of their products. It uses the demographic segmentations

that is an important part of market segmentation. With the help of this market segmentation, the

company performs its different functions of market analysis and select its targeted audience and

targeted markets for the launching of its products [ CITATION Art10 \l 1033 ].

Perceptual mapping
As Marks and Spencer uses the market segmentation process of market analysis. In contrast to

this, the company also uses the perceptual mapping techniques in which the perceptions are

made with the comparison of their market products and generating the markets needs of that

products. In this way, the company gets the information of potential audience from the current

market structure [ CITATION Mik09 \l 1033 ].

Competitor analysis
Primary Industry

Name of Company: Marks and Spencer Plc

Industry: Clothing

Market Share: 3.1%

Annual Sales/Revenue: 9.1 Billion Pounds

Website: www.marksandspencer.com

Competitor 1
Name of Company: H&M
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Industry: Clothing

Market Share: 1.4%

Annual Sales/Revenues: 14.5

Website: https://www2.hm.com/en_gb/index.html

Competitor 2
Name of Company: Primark

Industry: Clothing

Market Share: 4.1

Annual Sales/Revenues: 7.79 Billion pounds

Website: https://www.primark.com/en

Source: [ CITATION Sta21 \l 1033 ].

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The above Pie Chart clearly states that Primark has 46% of their annual sales revenues as

compared to Primark and Marks and Spencer Plc. This shows that although Marks and Spencer

Plc is a leading brand in other products as well but in clothing, Primark achieves the highest

annual sales revenues in clothing business. This score is due to their marketing strategies and

other pricing strategies with the help of which Primark sells clothes on low rates when compared

to Marks and Spencer Plc and H&M. The date is of 2019 sales revenues.

Merchandizing classification structure

Merchandizing structure is primary source of not only attracting the target audience but also to

get maximum benefits in terms of profitability and productivity.

Marks and Spencer Plc

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Primark

H&M

What Marks and Spencer have but competitors do not have

Although Marks and Spencer PLC is famous for the clothing brands but it also has a different

approach of targeting audience. The most different product it has is the facility of Marks and

Spencer’s Bank. Marks and Spencer’s product differentiation plays an important role here with

the help of which the company is different from its other competitors in the market. With the

help of this facility, Marks and Spencer PLC is playing a big role in targeting the audience. Once

the customer has opened the ban account with Marks and Spencer PLC, it becomes easy for the

company to target the specific group pf customers with the specific demands and needs of the

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suitable products which Marks and Spencer PLC produces and offer to the customers. Marks and

Spencer also offer the facility of food at the stores which other competitors are unable to offer

within the range of their products. With these two different products that Marks and Spencer

PLC offer, the differentiation factor of marketing is attached to it.

What offerings are made by the competitors but Marks and Spencer is not offering

Primark offers gift cards and H&M offers some technology related item for example phone cases

and other technological accessories whereas Marks and Spencer Plc does not offer such type of

products at all. As Marks and Spencer is already a market leader in terms of profit making but

the highest annual sales for the year of 2019 was of Primark, Marks and Spencer PLC needs to

work on the offerings of trending accessories like mobile accessories and other related products

so that the competitors are unable to get competitive advantage of this marketing strategy and

improve the profitability in order not only to meet the organizational objectives but also to

ensure the sustainability of profitability.

Conclusion
Strategically observed, big three of clothing brand Marks and Spencer PLC, Primark and H&M

has been analyzed in this report. Different components of business management have been

observed by keeping in mind different tools and techniques used for market growth, market

performance and market structure. Marks and Spencer Plc being a top leader in terms of

marketing strategies and accounting management tools implementation for price optimization,

pricing strategies, market segmentation and perceptual marketing is one the first number whereas

when it comes to the market share and annual sales and revenues, Primark is on the efforts page.

If we compare these companies in terms of market shares, H&M leads the market hence all these

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companies are making different efforts to remain in the current market by implementing different

tools and techniques for company growth and productivity.

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References
Bloomberg. (2021, 07 14). Retrieved from www.bloomberg.com:
https://www.bloomberg.com/profile/company/346186Z:LN

Easey, M. (2009). Fashion Marketing.

Kokemuller, N. (2017, 07 14). Positioning Analysis in Identifying Target Market Opportunities. Retrieved
from www.smallbusiness.chron.com: https://smallbusiness.chron.com/positioning-analysis-
identifying-target-market-opportunities-15551.html

Marks and Spencer. (2021, 07 14). FIVE YEAR RECORD. Retrieved from www.marksandspencer.com:
https://corporate.marksandspencer.com/investors/key-facts/five-year-record

Marks and Spencer. (2021, 07 14). www.marksandspencer.com. Retrieved from History:

https://corporate.marksandspencer.com/aboutus/history

Marks and Spencer PLC. (2021, 07 14). ABOUT US. Retrieved from www.marksandspencer.com:
https://corporate.marksandspencer.com/aboutus

Marks and Spencer Plc. (2021, 07 14). Mission and Vision. Retrieved from www.marksandspencer.com:
https://corporate.marksandspencer.com/home

Mellahi, K., Jackson, P., & Sparks, L. (2002). An Exploratory Study into Failure in Successful Organizations:
The Case of Marks & Spencer. British Journal Management.

SKRIPAK, S., CORTES, A., & WALZ, A. (2016, 07 14). FUNDAMENTALS OF BUSINESS (illustrated ed.).
Virginia. Retrieved from FUNDAMENTALS OF BUSINESS:
https://oen.pressbooks.pub/fundamentalsofbusiness/chapter/chapter-9-structuring-
organizations/

Statista. (2021, 07 14). Statista. Retrieved from Revenue of Marks & Spencer worldwide from 2010 to
2021(in million GBP): https://www.statista.com/statistics/413349/group-revenue-marks-and-
spencer-mands/

Weinstein, A. (2010). Handbook of Market Segmentation: Strategic Targeting for Business and
technology firms. London: Routledge.

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