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Business & Financial analysis of M&S

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Table of Contents Introduction The primary objective of this report is to provide a financial performance analysis of Marks & Spencer group plc. This will be achieved by a detailed ratio analysis on financial data available in latest annual report of the company for the year ended March-2013. The attention during ratio analysis will be on horizontal and vertical analysis as well as the comparison of these ratios with the industry. Moreover, the report will also give a brief business analysis of the company. Reason of selecting the company Marks & Spencer is a large company listed on various stock markets, which a widely spread operations in many countries. The size of operations of the company and high reputation in the …show more content…

Marketing and promotion: The aggressive marketing and promotion is strength to the company from several years. It has implemented many successful advertising and promotional strategies over the time which includes new format of UK stores “Brighter look”, “Your M&S” slogan, “Quality worth every penny” etc. Increased focus on corporate governance: M&S is investing increasingly in corporate governance from past few years i.e. in Plan A. This is one of the strengths which will ultimately increase the value of the company. Mark and Spencer weakness are: Lack of segmentation: M&S is targeting more on middle age women, whereas clothing market has many segments which are not effectively targeted by the company. For example, younger generation prefer other brands like GAP, NEXT etc., as discussed by Petah Marian. Declining profits: Mark & Spencer’s profits are declining over the period. The company’s share price is almost at half of what it was few years ago. Weak online shopping facility: The Company is relatively new in online selling and need improvement in this regards. The company’s brand image in clothing and increasing business in food sector together with successful marketing strategies will ensure sustainability of business. M&S is investing in Multi-channel store (online stores) to increase its capabilities in this field which will be fruitful for the company in future as it already showed quit improvement in online sales. Further, the company’s commitment

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