Investigation And Evaluation Of Two Organizations Management Essay

Investigation And Evaluation Of Two Organizations anxiety Essay attach and Spencers is one of the study British retail merchant companies. It has everywhere 895 terminuss either over the world in lots than than 40 countries. tag and spencers digest over 600 domestic stores and 295 international stores. tag and spencers is the UKs largest cloaffair retailer and a high suppress hail retailer. label and spencers is the worlds 43rd largest retailer. It sells clothes, food and wine, furniture, flowers and gifts and electronic products. It has made a pretax profit of over 1 one trillion million million in 1998. They were the first British retailer to achieve such target. This distinctly indicates that mark and spencers is a retail giant and has been an undisputed leader in the retail sector as far as the United state commercialise is concerned. It has also proved itself in the international retail market and plans to expand its assembly line in much directions and co vering newer international market.tag and Spencer was founded by Michael tag and Thomas Spencer in 1894 as their first store in partnership at Cheetham Hill Road, Manchester. They made their reputation on a policy of only selling British made goods in 20th century. This was something extremely new in the market and hoped to capitalize on the buyers sense of belongingness to UK They sold food and clothes under the St. Michael home run which they introduced in 1928. They argon also repudiated for having the roughly generous 35 days repossess policy on the British High Street. By 1950 almost all the goods were sold under St. Michael, women clothes and uniforms of girls were under St. Marg bet label until the self-colored thing became St. Michael. The Asian food was introduced as the embark onning of the cautious international expansion. Marks and Spencer opened stores in Europe in 1975 and in Ireland in 1979. This was a calculated step as Asian food was gaining democraticity in th e western hemisphere and also the inflow of Asians in the western countries was on an upswing. This idea clicked and the community made large returns.The play along is known for emphasizing quality and oblation fair value for money. tag and spencers has been a historic iconic retailer of British Quality goods. marks and spencers is aware of the fact that a solidity and consistent growth is only guaranteed if it maintains its standards and delivers the best quality at the most reasonable rates. Being retail oriented community customer delight is of utmost importance and marks and spencers ensured it by healthy customer dealing and most importantly provided post sales services to its customers In 1973 the companionship expanded in Canada. At a point they had 47 stores there. further they had never been able to improve their as a dull retailer. In late 90s efforts were made to improve and unprofitable locations were windupd, but it wasnt successful. So they had to close the remaining stores in 1999.In 1975 they expanded in France by opening the stores in Paris. Paris being the worlds fashion capital, there was already stiff contestation and it made it tough for Marks and Spencer to survive in such highly competitive environment. Except for Paris the European operation did not fare and the stores were sold in two hundred1.The Company acquired Brooks Brothers and Kings Super Markets in US but they were sold off. Several factors like these combined to threw Marks and Spencer into a heavy conciliate in 1997/98, which took everybody by surprise. These were the results of some bad decisions taken by Marks and Spencer which resulted in downfall of the company. The companys share fell by 70% approx. and its loot degraded from 1 billion to 145 million at the end of 2001.In 2001 there were changes in their military control focus. They started accepting recognize cards and a new range of clothes was introduced. They also re stick outed their business mode l. This resulted in some recovery but the problem still remained. In 2004 there was an attempt to take over marks and spencers by Bhs boss, Philip verdancy and Arcadia group. In Feb. 2007, marks and spencers announced to open worlds largest Marks and Spencer store at Dubai festival city. This surely turned out to be an intelligent give out as Dubai is slowly becoming the trade capital of the world. Dubai, which is the most popular emirate of UAE, is now one of the hottest destinations for obtain, trading and travel and tourism industry. The high end Zendra Rhodes Collection was introduced in late 2009.PERFORMANCEMarks and Spencer is listed on LSE (London parenthood certificate Exchange) as a constituent of FTSE 100. Here is Year/Net make headway plot for Marks and Spencer.From the above data we erect conclude that in that respect was a heavy fall in 1998.In year 2001 the profits were very low only M 2.8. in that location was some recovery in 2003-04 but they were still faci ng problem.From 2006 to 2008 there is some improvement. at that place is a signifi tidy sumt decline in 2009.BRITISH HOME STORES (Bhs)British home stores is a departmental store chain in Britain which contribute branches in high street locations. They are primarily selling array and household items such as bed linen, cutlery, crockery and lighting. Now they kick in also started selling furniture etc. Bhs competes on value and quality. They are targeting at lesser part of the population as compared to John Lewis and Marks and Spencer. They have over 186 stores all over UK. The company is listed on LSE (London stock Exchange) as a constituent of FTSE 100 and is currently have by Sir. Philip Green.HISTORYIn 1928 the first shop of Bhs opened in Brixton. They copied the business model of United Kingdom arm of US establish FW Woolworth in that the hurt of goods was at max 1 shilling. In 1929 the maximum determine was increased to 5 to enable the company for expanding the range of pr oducts. This includes furnishing and drapery. Bhs became Public company in 1931. After World War II selling based on price was stopped and goods with value and quality to money have been started to be offered. Bhs started expanding in 1970-80. They also opened the stores in indoor shopping malls. In 1977 they launched a joint venture with the firm Sainsburys to create hyper markets using SavaCentre brand. Sainsburys took control of the whole brand in 1989 and converted all the stores. There was a downturn in business in 1980s which was well-tried to be fought with the reconstruction of the stores and high profit margins selling. Bhs had to close its overseas stores during these times. In 1985 they opened first franchise store. Such stores now operate in Europe and Middle east. There was a jointure between Bhs, habitat and Motherhouse. In mid 90s the brand went under reinvention under the guidance of retail design house 2020.In May 2000 Philip Green took over Bhs (for 200 million ) and changed the company from public to private (ltd). In May 2005 Philip Green bought Etam UK (which include good girls fashion retailers). To improve Bhs girls perception as a whole the stand alone brands were integrated into Bhs.On Feb 27 2009, the company announced its merger with sister company Arcadia.PerformanceThe current condition of Bhs is not good. It is owned by Philip Green. Marks and Spencers performance is at present a good deal separate than Bhs. The growth is slow in retail market. To have a major growth you have to steal your rivals sales. Hence the gain of marks and spencers is resulting in Bhs loss. Philip Green is implementing cost cutting programs to increase the margin. There is a range of mountains of improvement for others here. Cost pricing in this sector is continuously change magnitude because of the increase in energy and utility prices which accounts for 12 million fall for Bhs. For revitalizing of the brand Green is investing at least 100m and i f he pulls this one out next time we will be discussing nigh marks and spencers slow recovery.Task 2QUESTIONAIREThe questionnaire has the questions on the following field for evaluating the performance of both companiesProduct designledge price inciter imageAdvertisingProduct rangeShelf spaceLogisticsinformation and Customer relationshipsThe answering of the questions has to be done on interval level. Questions specifically meant for staff members are marked as (SM). Rest shadow be answered by all.QUESTIONSA) Product design1) How is the efficiency of the product designing border? (SM)badexcellent2) Which product multiplication method is preferred? (SM) base on ideaBased on need3) How good are solution designing and production methods? (SM)PoorExcellentB) Shelf price1) How is spending at each level of production handling and statistical distribution? (SM)Very less besides rightVery highC) soil image1) Which brand is more preferable?marks and spencers BhsD) Advertising1) How much does the firm fagged on the marketing? (SM)very lessjust rightVery high2) Which brands advertisement is more enlightening near the product?marks and spencers BhsE) Product range1) Which brand has wider sort of products to look at from?marks and spencers Bhs2) Which brand fulfills the snap off product requirement?marks and spencers BhsF) Shelf space1) Which brand has relegate stores?marks and spencers Bhs2) Which brand store is easy reachable?marks and spencers BhsG) Logistics1) How good is the flow of goods, resources and information in the company? (SM)PoorExcellentH) Information and Customer relationships1) Which brands store provide better information about the product?marks and spencers Bhs2) Which brands customer service is more satisfactory?marks and spencers BhsStatistical outputOutput stats after a discern of 150 persons.Result interpretations of the surveyProduct design operate of Bhs is more efficient than that of marks and spencers .Idea based product generation is preferred more in Bhs, whereas it is almost balanced in marks and spencers .Shelf pricing efficiency of Bhs is much better than that of marks and spencers .marks and spencers brand is more preferable as compared to Bhs.Advertising marks and spencers spent more on Advertising.Product range marks and spencers have wider variety of products.Shelf space of marks and spencers is slightly better than Bhs.Logistics of Bhs are better than marks and spencers (there is not much difference).Information and Customer relationshipsCustomers are more satisfied with marks and spencers as compared to Bhs.CONCLUSIONFrom the result of the above survey and from the information collected from the various other resources we can conclude thatmarks and spencers s (Marks and Spencer) is a much bigger company as compared to Bhs. marks and spencers have over 695 stores whereas Bhs only have over 185 stores. marks and spencers s net profits and turnovers are much higher than those of Bhs. Marks and Spencer can invest into more number of ventures and more capital which is generated by its huge network round the globe.marks and spencers is more famous and older brand as compared to Bhs. marks and spencers operations are more widespread as compared to Bhs. marks and spencers s targeted customers are much larger than those of Bhs. marks and spencers ordinarily targets high end customers whereas Bhs do not. Product range of marks and spencers is much higher than that of Bhs. Customers prefers marks and spencers over Bhs.However, the intrinsic operations, functions and working of Bhs are more coordinated better and efficient than that of the marks and spencers . This can prove estimable to the company in the long run and this can result in Bhs having more output to input ratio as the system is more efficient.ROCOMMENDATIONSFrom our current analysis I can say that Bhs has improved its internal building to its maximum. There is a need to revitalize the plans, if that is successful hence there is a good chance that Bhs might improve to the necessary level.However, marks and spencers have scope of improvement in its internal structure which will bring significant change in its profit margin. currently marks and spencers have better hold of market but if they can side by side update their structure then they can avoid majority of the downfalls they face.ReferencesMarks Spencer (n.d.). Retrieved on May 6, 2010, from http//www.marksandspencer.com/ (Marks Spencer)Modern sustenance made easy (n.d.). Retrieved on May 6, 2010, from http//www.bhs.co.uk/ (Modern living made easy)How to begin your survey design project. (n.d.). Retrieved on May 6, 2010, from http//www.surveysystem.com/sdesign.htm (How to design your survey design project.)Bhs results in investiture and retail sector. (n.d.). Retrieved on May 6, 2010, from http//www.moneyweek.com/articles/money-morning/why-bhs-could-be-just-the-start-of-retail-sector-woes.aspx (Bhs results in investment and retail sector .)