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Outlook report for Marks & Spencer - Essay Example

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Outlook report for Marks & Spencer

On the other hand, the market share of Marks & Spenser in Food is 3.9 percent.1 Marks & Spenser Food retailer is considered as one of the UK’s leading high-quality food provider. The company is offering fresh produce, groceries, ready and partly prepared food. Today the company has total 668 stores throughout UK, out of which 156 are simply food wholly owned outlets and 182 are simple food franchises. In order to evaluate the factors based on which Marks & Spenser Food Retailer has been able to sustain its brand name as a value-creating brand, an outlook of Marks & Spenser has been presented here. This outlook will evaluate the various challenges and prospects for the company during the last few years.
In spite of the cultural differences, Marks & Spenser Food has been able to operate very efficiently in terms of macroeconomic policies. The company has been able to expand by building strong relationships with other countries. However, during the last few years, because of the worsening macroeconomic conditions, the governments of various states have been introducing different policies, which have affected the operations of Marks & Spenser and other food retailers.
The economic conditions and the recession have negatively affected the operations and balance sheet strength of Marks & Spenser. According to the annual reports of Marks & Spenser, in the year 2009, the company has to reduce its dividends by 20.9 percent. The Chairman Sir Stuart has also reported in the annual report that the decision of cutting dividends have been taken because of two reasons; first, economic conditions of the company and second, the need of the company to retain financial strength and flexibility. Moreover, the profits of the company have declined by 40.0 percent because of the conditions on High Street and the important decision of the company to improve quality and value.
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In 2009, the company has completed its 125 years of operations. BY providing high quality products and great value to customers, Marks & Spenser has grown from a Penny Bazaar stall to a leading retailer of…
Author : wjohnson
Outlook report for Marks & Spencer
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