The report will intend to estimate respective categories of economizing data in association with the multinational and organisational contexture. The report will allow riveting on handing a deep conception of the market structure in which Mark and Spencer operate. The report will additionally attempt to dissect the characteristics of the market architecture. grounded on the nature of the market framework, the report will recommend the efficacity of government interventions within business patterns.
The process of management with the help of which a varied range of managerial and economic factors and different types of related aspects could be managed in an efficient manner for any business sector organisation is known as Management of Economics. With the effective use of a varied range of analytical tools with proper support from different types of technological instrumentations, the process of management of economics could be executed in an efficient manner. Different types of critical issues in relation to the strategic decision-making factors could be resolved with the help of the management of economics. It could be stated that the management of economics falls under one of the major segments of macro-economic which focuses on a wide range of theories related to economics that suits the business operations in any business marketplace. Considering the economic conditions of the marketplace, effective assistance could be provided to the business organisation for the efficient optimisation of different pricing strategies. The critical roles of management of economics are stated below in an efficient manner:
Mark and Spencer are considered as one of the famous and branded retail market chain of the UK that operates its business across the globe. The company has been successfully listed on the London Stock Exchange. In the year 1884, the company was established by Michael Mark and Thomas Spencer and has now more than 1000 stores across the globe. The company has more than 78000 employees operating in its various units across the globe and in the year 2020, the company has an annual revenue of 10181.9 million GBP (Mark and Spencer, 2020).
Generally, Mark and Spencer as stated earlier in this report are one of the topmost retailing brands across the globe. Thereby, it mainly operates its business in the Oligopoly market structure of the retail industry in the UK and across the globe. Its current competitors are ASDA, TESCO, Sainsbury and many more. As stated by the author Indounas (2018), one of the major characteristics of the Oligopoly market structure is that business organisations of mainly large-scale business models operate within this market. Thus, it could be clearly stated that pricing strategies of different types of retailing products like grocery foods, clothing, household appliances and many more vary from organisation to organisation operating within this oligopolistic industry. The different organisations operating within the retailing industry of the UK and across the globe including the business organisation named Mark and Spencer exhibit quite a dominance within this industry (Parenti et al., 2017).
Mark and Spencer one of the famous retail brands of the UK and across the globe when founded in the year 1884, since its inception has been operating in an Oligopoly market structure within the retail market of the UK and also in the international retail market. It could be stated that the market structure of the Oligopoly is quite unique and different from the other kinds of market structures in which every other industry operates. There are varied ranges of pivotal characteristics of this market structure that affects the strategic decision-making processes of the companies which execute their business operations within this marketplace. The various characteristics and its effective analysis of the market structure are stated below:
Figure 1: Competition in the UK food Market
(Source: Gonzaga, 2017)
From the adobe figure, it is clear that the UK retail market sector experiences s huge competition while operations of retail businesses. This is one of the pivotal characteristics of the Oligopolistic market in which the company named Mark and Spencer operates its businesses across the globe.
Mark and Spencer could be considered as one of the most famous retailing brands in the UK and across the globe. As stated earlier in this report the company in the retail sector of the industry operates in an oligopolistic market structure. With a high capital investment and huge dominance over the industry, there are other reasons that could clearly define the reason behind Mark and Spencer operating in an Oligopoly market. The reasons are:
Figure 2: Global market revenue of Mark and Spencer
(Source: Statista, 2020)
Figure 3: Top Retail Market Chain of the UK
(Source: Statista, 2020)
There are different types of legal proceedings and a wide range of press coverages that effectively states the business operations of Mark and Spencer in the earlier days. When the business organisation named Mark and Spencer first started its business operations early in the year 1884, there were few retailing companies that were operating their business in the retail industry at that time. Mark and Spencer, through its effective product quality and marketing strategies, has quickly gained market customers and developed a brand identity of its own. As the presence of other such competitors is quite low at that time within the retail market place, thus the company name Mark and Spencer operated in the monopolistic market structure of the UK retail market place. As because at that time, Mark and Spencer have the maximum share of revenue within the retail marketplace of the UK, an oligopolistic market structure was present at that time within the retail industry. Due to the presence of fewer competitors within the market place, the company named Mark and Spencer enjoyed the features of a monopolistic market structure (González et al., 2019).
If compared with the oligopolistic market structure, the characteristics of the monopolistic market structure are considered to be quite unique and opposite. Effective controlling of the pricing strategies is one of the major differences between a monopolistic market structure and the oligopolistic market structure. The different states that pricing controls of the monopolistic market structure are much high if compared with the oligopolistic ones. There are different other characteristics of the monopolistic market structure that makes it quite different from that of the oligopolistic market structure. The characteristics are stated below in an effective manner:
Based on the current macro-economic scenario of the UK and across the globe, it would be of much greater profit if the company named Mark and Spencer operates within a monopolistic market structure. There is evidence of global economic disruptions and oligopolistic market structure within the retail industry is experiencing a huge competitive rivalry. This may weaken the profit structure of Mark and Spencer. Whereas operating in a monopolistic market would help the company to develop a new and unique product that can enhance the profitability index of the company. With a high capital investment and a unique brand identity, the company has the capability to operate in a monopolistic market and maximise the profit structure.
A wide range of government policies and legal laws are termed as an intervention to business practices. The retail market industry of the UK must comply with all the safety acts stated by the government for protecting the rights of the public. For example, “the Consumer Protection Act” maintains the standards of the products and safeguards customers from fraudulent products in the market place. There are sustainability laws like “the Environment Protection Act” which every company needs to comply with while operating their businesses. These laws are for the safety of the society but enhance the operational cost of the company, which, in turn, makes the price of the product much costlier for customers. Thus, it could be stated that medium level government intervention is required within the business practice which can both safeguard the customers, society and also makes the business operations much easier for the companies.
Therefore, it could be deduced that Mark and Spencer operate within an oligopolistic market framework of the retail market industry. The report dynamically expressed the respective critical characteristics of this market framework. The report also concentrated on the characteristics of the monopolistic market framework in which the company has performed its business operation in the earlier days. Ultimately, the report expressed the reason for the influence of the intervention programs of the government within the business practice and society.
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