Financial Management and Policies of Marks and Spencer Plc

Financial Management and Policies of Marks and Spencer PLC

Financial Management and Policies of Marks and Spencer PLC

Marks and Spencer PLC Profile

Marks and Spencer Plc or sometimes called the M&S is the United Kingdom's major retailer of concentrating to foods and clothing. The company also has the international outlets and currently headquartered in Baker Street, London at the World War II and use by the Special Operations executives for the Occupied Europe's secret mission. In 2003, the company moves to the corporate headquarters. The authentic firm was at the chain of "penny bazaars" and founded by Thomas Spencer and the immigrant who is Jewish, Michael Marks in Wigan. This came to the household name to Mark's son, and to the Israel Seiff. The reputation of Marks and Spencer is made in the 20th century by the policy of selling the goods of British-made. This can also rely on the quality and to the price that encourage the custom. In decade of 1990s and 1980s, they went back on the traditional policy while the financial troubles and their inability to the younger customer do not alter the general trend. On the other hand, in the year 2001, the profits rose sharply and the company recovered greater in the market share. This change was due to the introduction of "per una" as designed by George Davis and accompanied by underlying business model. The other changes that the company was offered includes the acceptance of credit cards and store opening on that following year. The company attempted in breaking the US market as well as the French market. The attempt is unsuccessful and yield in forcing to close all of the French stores. This is due to the legislation of the French government for protecting the labour force and expensive exercise that the Marks and Spencer is looking forward to. Traditionally, they sold 2 or 3 manufacturers of British clothing as "St. Michael" though this brand can discontinued in favor and connection to Marks & Spencer. Compare to most of the rivals of M&S and refuse the attraction of the advertising when the launching of ITV in 1955 and prefer to rely in drawing the reputation of customers. Based on the book of Lord Marcus Sieff entitled "Management – The Marks and Spencer Way" implies that one of the company's objectives is to aid Israel's economic development. In 2000, the company received an award from the British-Israeli Chamber of Commerce for the continuous support of Israel. It also received the award in the recognition of the achievements as presented by Sir Greenbury for the recognition of the company's achievement in strengthening the economy of Israel. In relation to this, the Palestinian supporters called to boycott the company but it does not affect sales of company due to the continuous popularity of the British public (Teachers Paradise, 2007). The company also has 600 stores in the entire United Kingdom including the largest store in the Marble Arch, London. Additionally, the company recorded of having 240 stores globally which includes the 219 franchise and are operated in 34 countries.

Financial Policies and Management of Marks and Spencer PLC

Financial management is the term that signifies the affectivity of managing finance in the certain organization or business so that it can achieve its financial objectives. This is important so that it can generate wealth and profit to the shareholders and to the business itself, to generate cash flow, and to provide copy of the return of investment (University Essay Tripod, n. d.).

In general, the financial management comprises of the cost, the risks, and control. In order to properly balance the control and the risk, the cost must be at the minimum. This means that all of the decisions in the financial management should be a part of the entire strategy of the organization which should not be separated (Ibid).

Marks and Spencer PLC is considered to be the high street legend of retailing in UK. In the past years, they had summarized the true orientation of marketing which serve as an example to the other retailers in the whole world. Most of the retail organizations in other parts of the world are trying to copy the business strategy of Marks and Spencer. Perhaps, the greatest recognition that the company received is the teaching studies made by the Harvard University Business School that teaches the graduates of MBA in the retailing practices. Today, Marks and Spencer is regarded as one the greatest and huge in UK's leading retailers of foods, clothing, financial services, and home ware. The company serves for almost 10 million customers in 1 week for the entire