The problem of sustainability at Marks and Spencer - Essay Example

Table of Contents Table of Contents 1 Terms of Reference 2 Procedure 2 Findings 2 Mini SWOT analysis 6 Diagram 1 7 Conclusion 8 Recommendations 8 References 10 Terms of Reference This business report addresses the problem of sustainability at Marks and Spencer. I wrote the business report for business students and persons to develop an understanding of sustainability in business. Procedure Using interviews and questionnaires, I did a survey of eight company executives who oversaw sustainability efforts at their companies. Findings Marks & Spencer is one of Europe’s leading retailers and a household name in the UK where it provides high quality clothing, food and home wares in about 30 countries through over 400 stores. It has thus employed many people worldwide and enjoys huge turnover. However, with the recent globalisation and increased competition, Marks & Spencer and other international companies face variant business challenges. The problem of sustaining the supply of high quality clothing, food and households is one of the major issues affecting Marks & Spencer. The core aim of Marks & Spencer is to provide great customer service since lack of it leads to customer disappointments and low turnover. Indeed, customers need full and consistent availability of high quality services. In this case, Marks & Spencer aims at becoming the world's most sustainable major global retailer by 2015 (Grayson 2011, p. 1017-1026). The eight company executives who participated in the survey are specialists who came from inside and outside Marks & Spencer. From the survey, we can establish that in 2007, Marks & Spencer launched a sustainability plan (Grayson 2011, p. 1017-1026). As such, there is a clear relationship between sustainability and business models in various companies. This reflects an alignment between sustainability priorities and organisations’ business priorities. Indeed, this link is very significant as it enables the management to address the issues of sustainability in relation to business operations since all business operations should take into account the aspect of sustainability to guarantee a going concern for the company (Arevalo et al 2011, p. 941-954). Actually, the survey reveals that Marks &Spencer aligns the concept of sustainability with core strategy in all business operations with an aim of realising sustainability in the quickest time possible. Indeed, most respondents established a clear correlation between the business strategy of the company and sustainability. However, many respondents established that there are wide gaps between the leaders’ aspirations towards sustainability and how sustainability applies within their organisations. This gap hinders the implementation of the sustainability policy and the success thereof. At the same time, we can derive form the survey that sustainability in any company faces internal and external challenges (Høgevold & Svensson 2012, p.142-151). Indeed, at Marks & Spencer, the current economy denies them an avenue to foster sustainability and its importance. Moreover, we can establish from the survey that companies face the challenge of balancing between sustainability principles and sustainability objectives on one side and the actions and investments on another side. This seeks to ensure that we get maximum sustainability returns from potential investments. In addition, we can ascertain that being dependent on the importance of sustainability to the future business endeavours, the management faces a challenge of aligning the organisation’s sustainability practices with the principles of the company. As such, the management faces specific challenges of recruiting effective employees and personnel with the necessary skills to pursue the sustainability objectives as well as the challenge of making tradeoffs in other business areas. At the same time, sustainability faces a challenge of securing employee buy-in to business model changes (Deloitte 2010, p. 2-9). Most assuredly, at the Marks & Spencer, the fundamental challenge to formulation and implementation of a sustainability policy is cost. It is indeed costly to market sustainable products. This is important in that the sustainable product must have higher quality and functionality as compared to the traditional alternative. The striking of this balance is quite challenging. Additionally, the respondents identified the challenge of keeping the product cost-neutral while seeking sustainability. This challenge is synonymous in that we must overcome it since it is the only way to get competitive advantage and ensure a going concern for the company. From the survey, we can confirm that the respondents did not identify the universal person who has the mandate to devise and implement the corporate sustainability policy. Most importantly, it involves the employees, suppliers, and customers. However, in Marks & Spencer, the responsibility revolves around the top leadership of the company, which includes the executive board, managers, and company directors. Indeed, this was also manifest where the respondents would not agree on what sustainability entails. Some thought that sustainability involves improving efficiency, technological improvements, product development, or renewing energy. Nevertheless, sustainability incorporates a public commitment to accountability, measurable targets and time limits. More so, in Marks & Spencer, corporate sustainability encompasses the implementation of the sustainability strategy and programs to promote social responsibility and environmental conservation (Grayson 2011, p. 1017-1026). Indeed, six respondents felt that environmental conservation is a major aspect of a sustainable strategy in a company. At the same time, we assert that companies should be wary of the impacts of sustainability in a business and consequently address those impacts to the fullest. Indeed, some respondents established that sustainability requires many funds and derives variant results that may require a company top adjust its financial expenditures. Actually, the implementation of a sustainability strategy requires high skilled professionals, commitment, and critical thinkers. As such, to implement a sustainability policy, the company will have to develop knowledge-management among the employees through training (Grayson 2011, p. 1017-1026). The trained employees should possess certain basic levels of familiarity with sustainability policies and be competent in skills related to sustainability implementation. Similarly, the management should carry on a dialogue and develop relationships with investors and other stakeholders to ensure the success of any sustainability policy. Notable from the survey is the fact that sustainable products are very competitive upon the adoption of the right marketplace approach, critical thinking, consistency, and availability of capital. To achieve sustainability, the respondents established that companies such as Marks & Spencer could boost sustainability in their business operations by adopting a variety of innovations in their product development, processes, and business models. Ideally, sustainability reduces the products’ energy. More so, the management should promote sustainability endeavours by appreciating the employees’ ability to think systemically, to understand legislation related to sustainability as well as financial analytic skills connected to sustainability. Furthermore, the respondents felt that companies would require more information about sustainability in order to make concrete decisions affecting sustainability investments. Indeed, with the growth in globalisation and industrial competition, there is need to update the present knowledge on sustainability at Marks & Spencer. More so, the respondents expect more insights on anticipated success of sustainability and the relevant mechanisms that foster sustainability among employees, customers, suppliers, and distributors. With this, companies will be able to attract the commitment of all stakeholders to sustainability, thus leading to its success in the reference business environment. Most importantly, there is a greater chance for improving the levels of structures and support companies that practice the sustainability in practice (Deloitte 2010, p 11-16). This will, consequently, require financial input in terms of training, capital, and availing the requisite infrastructure for purposes of enhancing sustainability in a business. This involves financial considerations on organisational roles and responsibilities, staff, budget, and technology requirements. As such, the respondents felt the need for increased funding towards sustainability due to its significance in the business world where it guarantees a going concern, environmental conservation, competitive advantage, customer satisfaction, improved products and high turnover. The aspect of sustainability significantly applies in Marks & Spencer business operations. This is clear in the company’s mini SWOT analysis. Mini SWOT analysis SWOT analysis is a common audit and analysis tool that evaluates the overall strategic position of the business and its environment. Its main aim is to establish the business strategies that will align with the organisation’s resources. Diagram 1 As such, the sustainability initiative is very significant in Marks & Spencer business operations, as it makes sure that the company maintains or improves the production quality of clothing, foods and households. With this, it will continuously increase the turnover, increase the going concern and ensure customer satisfaction. More so, the sustainability initiative will equally help the company improve the efficiency of its employees through training. At the same time, it will improve the modes of calculating stocks. Notably, Marks & Spencer has the capacity to devise and implement a sustainability policy. Conclusion I can confirm that sustainability is a fundamental issue in any company and that the most effective way of addressing it is by aligning sustainability principles with business operations since both correlate. It is also clear that costs are the greatest challenge to the implementation and the resultant importance of sustainability. Moreover, we can deduce that sustainability involves all stakeholders in a company but the mandate to ensure its implementation lies with the top management. We can also conclude that there is need for high-skilled professionals, commitment, and critical thinkers in the formulation and implementation of the sustainability policy. Additionally, there is need for more information regarding sustainability before devising a sustainability policy. Clearly, sustainability fosters environmental conservation and social responsibility. Most assuredly, I can confirm that sustainability drives a competitive advantage, going concern, customer satisfaction and high turnover. Ultimately, I conclude that the sustainability policy established in 2007 at Marks & Spencer is very significant in its business operations. Recommendations I therefore recommend that there is need for more research on the concept of sustainability in business operations. Moreover, companies should align the sustainability principles to their business operations to guarantee the effectiveness and implementation of sustainability. Furthermore, governments should mandate companies to have sustainability policies to ensure going concern and production of high quality products. Indeed, company managers and top management should make sure that all the stakeholders are aware of the company’s sustainability objectives to guarantee success in business practices. Actually, I recommend that sustainability should form the mission statement and the main objectives of any company. References Arevalo, J.A., Castelló, I., de Colle, S., Lenssen, G., Neumann, K. & Zollo, M. 2011, "Introduction to the special issue: integrating sustainability in business models", The Journal of Management Development, vol. 30, no. 10, pp. 941-954. Berendji, S n.d., Marks and Spencer, viewed 25 April 2013, http://www.intellident.co.uk/_site/images/Intellident/supplychain/downloads/msretailcasestudy.pdf Deloitte 2010, Sustainability in business today, viewed 25 April 2013, http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/IMOs/Corporate%20Responsibility%20and%20Sustainability/us_es_sustainability_exec_survey_060110.pdf Grayson, D. 2011, "Embedding corporate responsibility and sustainability: Marks & Spencer", The Journal of Management Development, vol. 30, no. 10, pp. 1017-1026. Høgevold, N., M. & Svensson, G. 2012, "A business sustainability model: a European case study", The Journal of Business & Industrial Marketing, vol. 27, no. 2, pp. 142-151. Shl.com n.d., M&S innovates to get the right people fast, viewed 25 April 2013, http://www.shl.com/images/uploads/cs_MarksSpencer.pdf Read More