HRM in Context The case of Marks and Spencer Assignment Sample
STEEPLE analysis of Marks and Spencer
| Socio cultural factors | ● Consideration of changing market trends
● Mitigation of customer demand through diverse product portfolio |
| Technological factors | ● Technology transformation program
● Emergence of digital first |
| Economic factors | ● Low disposable income of customers due to financial crisis
● Rising inflation rate |
| Environmental factors | ● Establishment of green policy
● Sustainable procurement and waste management |
| Political factors | ● Free access in the larger European market without restrictions
● Government support |
| Legal factors | ● Health and safety at work act 1974
● Environment protection Act |
| Ethical factors | ● Code of ethics and behaviours
● Ethical trade audit |
Table 1: STEEPLE analysis
Technological factors
In the present changing dynamic business environment, technology transformation programs have been benefiting Marks and Spencer with advancement of their technology capabilities with the conception of a new technology-operating model (Marks and Spencer, 2018). The company also creates a partnership with Tata consultancy services regarding the empowerment of their organisational HRM through PeopleSoft interaction hub. It is also expected to deliver annual efficiencies of £ 30 million to the company by 2021-22. The digital first initiative of Marks and Spencer might also be helpful to consider a supplementary customer centric approach to technology services (Marks and Spencer, 2018). However, the digital first initiative is also supportive to enlarge the organisational brand reputation across the current operational market based on which district competitive advantage might be secured by the company in near future. Ever changing market trends are identically pointed out by Marks and Spencer according to which the company looks forward to offer their products for potential consumers. In this context, an extended market analytical approach is undertaken by the organisation. The consideration of a diverse product portfolio has been helping the organisation to successfully mitigate customer demand and market requirements. However, the mentioned technological advancement is also added with a fair value with the simplification and consolidation of Marks and Spencer’s technology supplier base (Marks and Spencer, 2018). This initiative has been widely benefiting Marks and Spencer to empower their digital first retailing with flexible and responsive technologies based on which seamless customer experience is provided.
Economic factors
Figure 1: Marks and Spencer revenue by region from 2010 to 2021
(Source: Statista, 2021)
Low disposable income of consumers can be notified because of the ongoing financial crisis due to covid. Despite having this toxic impact, Marks and Spencer has been looking forward to maintaining decent financial stability, which might help them to achieve competitive advantage.
The aforementioned figure supports this statement by illustrating gradual maintenance of stability in the revenue generation of Marks and Spencer throughout the last decade, which has experienced a slight downfall during 2021. On the other hand, rising inflation rate has been also emerging as a potential threat for Marks and Spencer. For example, the context of the UK market can be considered where the 1.5 % inflation rate can be noticed in this present year, which is also estimated to grow up to 1.8% in the next year (Clark, 2021). In this concern, extended global presence and consumer loyalty might be helpful for Marks and Spencer to maintain their market standings. The company also initiated to empower their technological capabilities based on which maximised business opportunities have been ensured by them with positively influencing customer purchasing intention.
Environmental factors
Concerning the current market trends of sustainability, Marks and Spencer provided a strong commitment to the environment with their emphasis on high quality and long lasting products. However, extensive waste management practices are ensured by the organisation. For instance, it can be stated that Marks and Spencer has been sending zero waste to landfill (Marks and Spencer, 2021). Moreover, a major circular approach is also undertaken by the organisation in order to help global efforts in combating climate change under the shape of cutting down greenhouse gas emissions. Sustainable sourcing aspects are also insured by the company, which also supports the establishment of green policies within the business operations of Marks and Spencer. Overall, organisational sustainability was also added with a greater value as Marks and Spencer committed to halve food waste by 2030 across their operational stores in the UK (Marks and Spencer, 2021). This food waste is also considered to be redistributed through the organisational charity partners. The overall aspect has been empowering the organisational CSR values and brand awareness.
References
Clark, D., 2021. Forecasted inflation rate of the Consumer Price Index in the United Kingdom from 2021 to 2025. [Online]. Available at: <https://www.statista.com/statistics/306720/cpi-rate-forecast-uk/> [Accessed 5 August 2021]
Marks and Spencer, 2018. MARKS & SPENCER ANNOUNCES TECHNOLOGY TRANSFORMATION PROGRAMME. [Online]. Available at: <https://corporate.marksandspencer.com/media/press-releases/2018/marks-and-spencer-announces-technology-transformation-programme> [Accessed 5 August 2021]
Marks and Spencer, 2021. FOOD WASTE. [Online]. Available at: <https://corporate.marksandspencer.com/sustainability/food-and-household/food-wast> [Accessed 5 August 2021]
Marks and Spencer, 2021. WASTE & CIRCULAR ECONOMY. [Online]. Available at: <https://corporate.marksandspencer.com/sustainability/business-wide/waste-and-circular-economy> [Accessed 5 August 2021]
Statista, 2021. Revenue of Marks & Spencer from 2010 to 2021, by region. [Online]. Available at: <https://www.statista.com/statistics/413332/group-revenue-marks-and-spencer-united-kingdom-uk-international/> [Accessed 5 August 2021]
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