John Lewis and Marks and Spencer Case Study Example | Topics and Well Written Essays - 4000 words

John Lewis and Marks and Spencer - Case Study Example One of the policies was that items can be refunded back to customers as long as they had receipts even if the products had been purchased a long time ago. The Company recorded a profit of slightly over half a billion pounds in the year 2006. M& S also boasts of having a large employee base-it has close to seventy one thousand staff members under its wing. John Lewis was a company is also another retail chain of stores that is slightly smaller than the former mentioned Company. John Lewis (JL) has one hundred and twelve super markets and twenty six stores under its name. There are sixty eight thousand employees working for the Company. JL is well known for the way it shares profits and partners Legislations have been passed that regulate developments which take up green areas; this has limited expansion of M& S stores. The European Commission is working on laws that are related to how M& S closed stores in France especially the way it handled its employees. (www.euractiv.com) lastly, the government requires adherence to high standards in the food industry; M&S has to comply with those standards in its food section. M&S has changed its supply management from Chain management to inventory management. Storey et al (2003) ascertain that this is the reason why M&S is thriving in the retail sector. The company has to face stiff competition from other retailers who also have international markets; it has to incorporate knowledge management and outsourcing to stay ahead. M&S also faces renewed competition from new retailers following the introduction of the European Union. Legal M&S has to perform internal controls and assessments in compliance with the Turnbull report (2007). Also, the company has to follow government regulations that affect corporate governance. Social According to Mellahi et al (2002), the company faces resistance from staff members who may not want to comply with changes in the organisation. M&S also has to make a lot of changes in relation to factors affecting consumer behaviour. Some of these factors are health consciousness causing increased preference for organic foods, rejection of sweatshop labour and products that are safe, preference for products that can be micro waved. Technological The company has to consider internet shopping. It has come up with new products in line with technological advancements like laser scanning. Technology has brought a shift in the retail market to a diffuse international market. Environmental According to the annual report (2007), M&S has adopted Eco plan A, which affects the way the company manages its waste. The company has engaged in campaigns that promote animal welfare. Lastly, the company has introduced use of bags that can be recycled. John Lewis Political A modification has been introduced by the EU Aerosol Dispensers Directive that limits filling to 90%; JL has to comply. The company's name has been tarnished after it sold Unite- a Union. This showed that it does not reward loyal members of staff. Economic The company is facing competition from international markets; it also has to deal with the challenge of credit markets. In light of these factors, the company has decreased its operating costs and may get profits in the future. JL has a strong position in the organic market