PESTLE analysis for John Lewis and Marks and Spencer Essay

PESTLE analysis for John Lewis and Marks and Spencer - Essay Example higher level of political scrutiny over food retail outlets because it is the second largest employer in the UK; with public health assuming a more important focus, there has been a tighter regulation of food stores for this Company. Transition from the traditional supply chain management system to a system of vendor managed inventory, which in conjunction with a tailor made forecasting package, has produced gains for Marks and Spencer and made it one of the most profitable and efficient retailers. (Storey et al, 2003). The Company rarely needs to sell its products at discounts because the supply side is well managed. The percentage of revenues accruing from international sales has increased to 7.1% of group turnover.(2007 Annual report), however maintaining this is a challenge in the face of increased competition in the European Common Market, the development of the common currency – the Euro and changes in VAT Marks and Spencer started off primarily as a clothes retailer; however it has now expanded into food and home products to compete effectively in the global market. British retail competitors of Marks and Spencer are also large corporate chains, which may have their headquarters outside the country, hence outsourcing activities and knowledge management becomes a key element affecting operating as well as long term profitability. Marks and Spencer staff have mostly been recruited young and continued within the organization for many years; as a result, there are some set procedures and routines in operating which have become integral to the staff and has produced resistance among employees to changes within the organization.(Mellahi et al, 2002) Existing markets for Marks and Spencer have expanded beyond UK and has produced a change from the traditional focus of London as the major retail center to a more diffused network of customers and stores across the globe. Companies are required to improve corporate governance in accordance with the Turnbull

Distributors Dell Essay Example | Topics and Well Written Essays - 750 words - 10

Distributors Dell - Essay Example From this paper it is clear that, due to this illicit practice which violated the contract Dell had signed with these distributors the company had to file lawsuits against their own distributors. Another mistake Dell made was that it did not foster long term relationships with distributors in order to create partnerships. There was a sense of distrust between the distributors and Dell because the distributors believed that Dell at any time would stop using their services and introduce a direct sales model in China. A third mistake the company made was that it did not invest any resources in to enhance functionality of their supply chain function with its distributors. The company could have gotten more involved in the operation of its distributors by providing managerial and technical assistance. If the company would have established a mutual relationship based on respect and high ethical standards the distributors would have seen Dell as a business allied instead of just another com pany with a product to sell. When a company creates close relationship with suppliers and distributors it enables a business to obtain concessions and favors the firm would otherwise not receive. A fourth mistake the company made was delegating market strategy to its distributors. The communication between Dell and its distributors was weak. Due to this fact the distributors moved the merchandise utilizing their own criteria without taking into consideration any strategic input from Dell. The problem with the direct model in China was that the company was entering a market in which the people had different expectations than the US market. First of all a computer purchase to a Chinese person means a lot more than to a customer in the US or Europe because a worker would have to save money for nearly two years before they could make such a purchase.