The Impact of Globalization on Marks and Spencer’s Operational Processes
The paper will critically analyze the operational process of Marks and Spencer and will also evaluate the company’s globalization strategy. In order to achieve these objectives, the essay will first provide a brief introduction of the company followed by a theoretical framework. Then, it will discuss the operational processes of Marks and Spencer in detail. After that, the company’s globalization strategy will be discussed and evaluated. Finally, the essay will conclude by highlighting the impact of globalization on Marks and Spencer.
2. Theoretical framework:
This part of the essay will provide a theoretical framework for the discussion of Marks and Spencer’s operational processes and globalization strategy. The framework that will be used in this paper is operations and process management. Operations and process management is concerned with the design, control and improvement of an organization’s operations (Heizer & Render, 2014). It involves the management of all resources and activities that are required to transform inputs into outputs. In other words, it is concerned with the creation of value through the transformation of inputs into outputs (Browning, 2015).
The main objective of operations and process management is to ensure that an organization’s operations are efficient and effective. Efficiency means that an organization is able to produce goods or services at the lowest possible cost. Effectiveness means that an organization is able to produce goods or services that meet the needs and wants of its customers (Slack et al., 2010). To achieve these objectives, operations and process managers need to be able to identify and understand an organization’s business processes. They also need to be able to design, implement and control these processes.
3. Operational process of Marks and Spencer:
Marks and Spencer is a leading British retailer with over 1,000 stores in more than 40 countries around the world. The company sells a wide range of products including clothing, food, homeware and beauty products. In order to meet the needs of its customers, Marks and Spencer has a wide range of operational processes. These processes include product development, production forecasting, research and sustainable development.
Product development is a key operational process for Marks and Spencer. The company needs to constantly develop new products in order to stay ahead of its competitors. This involves keeping up with fashion trends and understanding what customers want. To do this, Marks and Spencer carries out regular market research. This research helps the company to identify gaps in the market and develop new products to fill these gaps.
Production forecasting is another important operational process for Marks and Spencer. The company needs to forecast demand for its products in order to ensure that it has enough stock to meet customer demand. To do this, Marks and Spencer uses a variety of methods including trend analysis, customer surveys and market research. By understanding future demand for its products, Marks and Spencer can avoid stock outs and increase customer satisfaction levels.
Research is another key operational process for Marks and Spencer. The company carry out regular research in order to understand customer needs better. This helps the company to develop new products that meet customer needs as well as improve existing products. Additionally, research helps Marks and Spencer to keep up-to-date with changes in customer tastes and preferences.
Sustainable development is another important operational process for Marks & Spencer. The company aims to operate in a way that minimises its impact on the environment. To do this, Marks & Spencer uses a variety of methods including energy efficiency, waste reduction and recycling. The company also aims to source its products from suppliers who follow sustainable practices. By operating in a sustainable way, Marks & Spencer is able to reduce its environmental impact and improve its reputation.
4. The company’s globalization strategy:
Marks and Spencer has a clear globalization strategy. The company’s aim is to be the world’s leading international retailer (Marks and Spencer, 2016). To achieve this, Marks and Spencer has adopted a number of strategies. Firstly, the company has expanded its presence in foreign markets. It now has over 1,000 stores in more than 40 countries around the world. Secondly, Marks and Spencer has developed a global brand. The company’s products are now available in many countries around the world and are sold under the same brand name. This helps to increase customer awareness of the company and its products. Finally, Marks and Spencer has developed a global supply chain. The company sources its products from suppliers in many different countries around the world. This helps to reduce costs and improve product quality.
5. Result of the company’s globalization strategy:
The globalization strategy adopted by Marks and Spencer has been successful. The company has seen strong growth in recent years. In 2015/16, the company’s sales increased by 3.9% to £10.4 billion (Marks and Spencer, 2016). This growth was driven by increases in both online sales and international sales. Online sales increased by 12.2% to £1.8 billion while international sales increased by 4.7% to £1.4 billion. The strong growth in online and international sales shows that Marks and Spencer is successfully executing its globalization strategy.
6. The impact of globalization on Marks and Spencer:
Globalization has had a positive impact on Marks and Spencer. The company has been able to grow its sales and profits through its globalization strategy. Additionally, globalization has helped Marks and Spencer to build a strong brand that is recognised around the world. Finally, globalization has helped the company to develop a efficient global supply chain that reduces costs and improves product quality.
In conclusion, it can be seen that Marks and Spencer’s operational processes and globalization strategy are interlinked. The company’s operational processes are key to its success in foreign markets. Additionally, the company’s globalization strategy has helped it to achieve strong growth in recent years. Globalization has also had a positive impact on Marks and Spencer by helping it to build a strong brand and develop a efficient global supply chain.