Outlook report for M&S(Marks & Spencer) Essay Example | Topics and Well Written Essays - 2250 words

Outlook report for M&S(Marks & Spencer) - Essay Example They are also planning to open up eco-friendly stores for their green credentials. Strategic planning process comprises of an important ingredient of external environmental analysis. Environmental analysis helps ascertain the state of factors internal to the firm which can further be classified as a firm's Strength or Weakness while those external to the firm can be classified as Opportunities and threats. This study of the strategic environment is called SWOT analysis. SWOT analysis facilitates the extraction of strategic information which aids in matching a firm's resources to the environment in which it operates. 1) Acceleration of store renewal programme-M&S have already started investing in their stores and completed about 70% of their modernization programme. They are planning to modernise an additional 10% of space and open up an additional 5.5% of new space in the coming years. With launch of new eco-friendly store, they will be able to cut the down the cost tremendously in the next 5 years. Within one year, they are able to save around 20% of their energy in the store. 2) Private labeled grocery- M&S sells 90% of its own food brands. Despite M&S experiencing difficult trading conditions in their clothing departments, their food halls have continued to run successful business. It consistently offers innovative, high quality and rigorously checked food. 3) Everyday value shop with quality- Making Marks & Spencer a more convenient place to shop, the popular shopping basket items have reviewed prices without comprising with the qualities of the product. Although the company is working according to market price but without hampering their quality and standards. 4) Variety of food products at one stop shop- Marks & Spencer's ready to eat meals are long been famous for their great ingredients. As more of consumer start spending their time in kitchens and would be spending in the next 5 -10 years, they come with new range of 300 ingredients right starting from fresh herbs to bread and cakes-makes easier cooking starting from scratch. 5) Expansion of stores and intensive use of space: Currently in UK, there are 622 stores and 278 international stores all over the world. With the possibility of resurging economy after 2 -3 years, they will be planning to expand their stores in UK as well as globally also. This makes their presence in UK stronger than any other brand. With the current downturn in the economy, they have already started utilizing the floor space for every square foot to its full potential. Selling space will be reallocated to higher growth product areas to maximize returns per square foot. Weakness: 1) Late entrant: With the increasing disposable income of the people and increasing awareness of the people about the healthy and dietary food, Marks & Spencer became a late entrant into this segment. Even talking about the experience of the store and one stop food shop, they had just entered into this segment. This becomes disadvantage for them as last mover. 2) Strong presence in UK- It has strong presence only in UK. It has 622 stores in UK and 278 stores internationally, which