Marks & Spencer

Marks & Spencer

This document is an article. It is extracted from the daily Telegraph. It was published in July 3rd 2008. This article was written by Harry Wallop and Richard Fletcher. It deals with the economic problem within companies. We have the example of Marks&Spencer who is suffering from the economic downturn. This document can be devided in two parts.  First, I will talk about the causes of the company's economic downfall, secondly I will talk about the possible means to put in place to change this situation.

• The situation is worrying for Marks&Spencer, indeed, the company's shares have dropped by 25% and particularly in the area of food. We can say that the firm is suffering from the price war. Indeed, more and more consumers are shopping at cheaper stores like Aldi. In addition, competition in the market is tough. There are many food stores today, more or less expensive. So we can say that the economic fall of Marks and Spencer is largely due to the buyers who abandon them in favor of cheaper stores.

• One day, someone called Sir Stuart, the general manager of the company. He explained to him the case of his mother, a faithful person with his company for a long time. But his bills today are too important, and can no longer afford to shop at Marks&Spencer. That the reason why supermarkets like Aldi, Netto and Lidl have experienced strong growth while M & S has fallen. Consumers today rush to the cheapest. Next and Debenhams also had a big drop in sales. The company has decided to set up promotions to increase sales. Similarly, Marks & Spencer could set up promotions to change this situation.

To conclude, I can say that society suffers from the economic downturn, and that companies should put in place strategies to boost their economic growth and do things according to the needs of consumers.

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