StudentShare solutions
Triangle menu

FINANCIAL MANAGEMENT - Marks and Spencer - Essay Example

Not dowloaded yet

Extract of sample
FINANCIAL MANAGEMENT - Marks and Spencer

These principles revolve around the responsibilities of firm towards their stakeholders, customers and employee. With these principles different suggestions are provided, discussing that what extra should be included by the Hermes in its Principles. The paper ends with a brief description on conclusion.
Marks and Spencer is the famous British retail chain with 760 stores working in more than 30 countries. This retail chain is the most iconic and recognized chain in the world whose 520 stores are serving only in United Kingdom. This store chain is famous as it is the largest clothing retailer and is consider being multi-billion pound food retailer. Recently the store introduces the homes wares including different wares for furniture's and other products. It was the tail of 1998 when this store consider to be the first British store who make pre-tax profit of one billion pounds but later it went into some crisis but by 2007 it start growing economically and showing high profit margins to their investors.
According to Emilio Barucci , (2003) Financial management policies are the one that are used by the firm to know that how they should finance their business, what should they provide the shareholders in return, what would be their cost structure and how they should manage their capital structure. This may include various structures that are taken in consideration to know that either the firm is acquiring better financial management system in the firm. Hermes is famous for its principles specially taking shareholders in consideration. Below Marks and Spencer financial management policies are seek by the researcher to know that either they are in accordance with Hermes principles or not.

Financial Management Policies of the store
Agency theory
Thomas E. Copeland, John Fred Weston, Kuldeep Shastri, (2005) argued that agency theory of the firm includes the profit sharing, efficiency wages and performance measures. The agency theory of marks and Spencer is in accordance with the principles of Hermes. Today 290000 shareholders are present with marks and Spencer and the reason is that they are provided with effective return on their investments. Taking full care of the employee's, the employee's are provided with 500 pound bonus provided to each single employee on their performance. This bonus providing enhances the loyalty of the employees. When taking profit sharing in consideration than the firm ensures the stakeholders that they will be provided with maximum profits, and the reason is that they want to keep their stakeholders with them at long-term basis. The firm is providing efficient end results with the food retail shops as these are earning highest. Moreover, the firm has launched the performance measuring system to know that what they can do more to increase the market performance of the firm. The agency theory of the Marks and Spencer is in accordance with Hermes but the only thing that they lack is efficient performance measures. According to Jean-Pierre Danthine, John B. Donaldson, (2005)the performance measure of the employees and their policies must be used to now that what are their actual performance. Marks and Spencer is dealing with more than 700 retail stores and thus measuring each employee performance would be difficult, but by ...Show more

Summary

The aim of the paper is to elaborate the financial management policies by Marks and Spencer and comparing these with the Principles of Hermes. To fulfil this aim and goal, a complete survey is conducted on Marks and Spencer whose result is shown below by indicating different financial managerial policies hat are sued by Marks and Spencer…
Author : fdietrich
FINANCIAL MANAGEMENT - Marks and Spencer essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"FINANCIAL MANAGEMENT - Marks and Spencer"
with a personal 20% discount.
Grab the best paper

Related Essays

Strategic Financial Management - Marks and Spencer
A study reflects a sound business performance of the company with satisfactory revenue through its sales and this status has been maintained inspite of several challenges and difficulties that the company had to face in the light of changing economic conditions in the business world. The company focuses on maintaining its position in the industry and develops its business with increasing the revenue more than before.
14 pages (3500 words) Essay
Strategic Management: Marks and Spencer Case
The study investigates internal ( UK retail division; strategy and structure; total focus on UK retail; recovery plan for clothing; expansion in units; acceleration of store renewal programme; intensive use of space and realization of value) and external environmental analysis: being closer to the customer; closing European subsidiaries; franchising of business; competition; economy and social trends.
16 pages (4000 words) Essay
Leadership and Management: Marks & Spencer
Its department stores sell “mid-priced apparel, food, and household items under the company's private label brands, including Autograph, Classic, per una, and Portfolio” (Bevan, 2007, p. 121). More or less 90 percent of its sales are generated from the home country, where it is considered to be leading supplier of both women- and menswear.
17 pages (4250 words) Essay
Marks and Spencer
A lookout for prior to zeroing down upon a company are two aspects define the degree of responsibility that a company complies to while operating its business and their crucial nature often drives these companies to reach out any measures for accomplishing them.
9 pages (2250 words) Essay
Marks and Spencer
M&S has over 21 million people visiting their stores every week. They are the leading sellers of women’s wear and lingerie in the UK with 700 stores operative in UK. M&S is an expanding business internationally and has started its operations in many countries of the world with around 390 stores in Europe, Middle East and Asia.
6 pages (1500 words) Essay
Financial Management: Marks and Spencer
M&S has a share of 11% in value market share and 11.2% in the volume market share. Food accounts for 51.1% and a market share of 4.3 %. (www.yahoo.org). Marks and Spencer Group plc was founded in 1884 and is headquartered in London, the United Kingdom.(Business Week Dec 6,2008) The international business of M&S accounts for 7.9% of the group's turnover.
5 pages (1250 words) Essay
Marks & Spencer
Sales decline was 4.8 % in 2000. The tools and frameworks applied to marketing in the UK do not differ to those used to market products in other countries. Identifying these issues and assessing their effect on strategy provides the basis for the M&S to analyse the causes of sales decrease and possibility to develop a new strategic plan in order to obtain a strong market position.
11 pages (2750 words) Essay
Marks & Spencer
Everybody knows that retail is one of the most competitive economics sector. Shops, marketplaces, boutiques, super- and hypermarkets offer us great choice of different goods. That's why if any company has been taking the top positions for almost 10 years, - it is considered as a great success.
6 pages (1500 words) Essay
Financial Analysis Of Marks & Spencer
The author states that M&S faced problems in its clothing arena which have been overcome after a major overhaul and change in marketing techniques and store layouts. The beta of M&S shows that it is not a volatile stock and has the potential to withstand any stock market downturns. The company is fairly priced taking its P/E ratio into consideration.
23 pages (5750 words) Essay
Financial Analysis Of Marks & Spencer
Global retailer Marks & Spencer is the United Kingdom’s premier clothing, food, and financial services, retailer. The company’s commitment to value, service, and quality began in 1884 when Michael Marks, a Russian born Polish refugee formed a partnership with Tom Spencer, a former cashier from the wholesale company IJ Dewhirst.
21 pages (5250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation