History of Marks and Spencer
In 1884 Michael Marks opened a stall at Leeds Krikgate. He moved to Manchester in 1893, the following year he opened a shop. Marks formed a partnership with Tom Spencer who was a cashier in a wholesales company known as IJ Dewhrist. A new warehouse and head office opened in 1901 at Derby Street in Manchester. Tom Spencer died in the late 1905 on 25th July and Michael Marks died in the late 31st December. In 1920 the business had started to adopt the revolutionary policy of buying goods direct from manufactures. In 1926 Marks and Spencer limited had formally become a public company.
In 1930 flagship store was then opened at Marble Arch in London. The food department was introduced that started to sell produced and canned goods. 1930 saw the introduction of cafi?? bars in many of the stores where cheap, hygienic and nutritious food was supplied. Simon Marks commissioned Flora Solomon to set a staff welfare service which enable to provide pension schemes, subsided staff canteens, health and dental service in 1933. By 1973 they had sold wine for the first time in their stores and in 1974 they started to introduce a range of foods such as Indian and Chinese.
They where then known to be the first company to remove artificial colours and flavouring from their foods and drinks. Marks and Spencer first stores opened in Europe in Boulevard, Haussaman, Paris and Belgium during 1975. They introduced and supported the launch of home and furnishing catalogue in 1986. In 1999 saw Marks and Spencer’s launch their very own online shopping site. Other products such as gift vouchers, clothing for children, skin care products and many more were introduced in 2000. It is known to be the largest UK retailer and food retailer and as of 2008 it was also the 43rd largest retailer within the country.
In the year 2000 Marks and Spencer launched their “Count On Us” range of food products and also launched there ever first autograph designer collection that was targeted towards women wanting to buy designer clothes and 2002 saw the introduction of the casual wear brand for men called Blue Harbour. Marks and Spencer’s cafi?? became the UKs first coffee chain in the fair trade tea and coffee standard. In 2006 Marks and Spencer was named the Business in the Community’s company for the second time as they won the same prize in 2004.
In 2007 they launched their plan A eco five years plan in order to put across climate change, waste. In 2008 they announced that they charge 5p for every food carriers that their customers use to help with the Global warming. Marks and Spencer is a Public limited company it has PLC at the end of its name because it is a large business. Marks and Spencer sell their shares on the stock exchange to any body who wishes to purchase them and invest in the business. As a public limited company they employ large numbers of staff and provide products that their customers want to purchase.
Marks and Spencer is a large business because it has more than 250 employees how figures show that Marks and Spencer had up to 75,871 in the year 2007 the number of employees decreased by 2008 to 75,389. Their balance sheet is more than 5. 6 million pounds however statistics show that there balance sheet figures for last year were 7,774. 0 which decreased by this year to 6,562. 0. The advantages that marks and Spencer’s have being a public limited company are that all members of the company have limited liability they have large amounts of money that increase from the sales of share to the public.
They Produce product cost lower as the as the business can gain market scale. Due the size of Marks and Spencer being a PLC they are able to control the market It is easy for Marks and Spencer to increase their finance because the financial institutions want to lend more to PLC companies. The disadvantages that Marks and Spencer’s have to face being a public limited company are: Initially it was expensive to set up as a PLC for Marks and Spencer. Due to the fact that anyone can invest into their companies shares this could lead to an external to take control of the business.
Marks and Spencer must publish its accounts which can be examined by the member of the general public. Competitors are able to use this information for their advantage. Marks and Spencer being large company they have millions of shareholders and various businesses interest located all over the world. Marks and Spencer is a private limited company, private meaning that PLC companies can only sell if all there shareholder agree upon the decision. As a PLC company marks and Spencer that the advantages of being this type of business then they have the downfall of being a PLC.
The advantages of being a PLC are that you that the company will not be able to lose more than what they invest within the business. As well as this if a shareholder dies then marks and Spencer is still able to trade. The disadvantages of being a PLC are that the company is legally to publish their accounts every year as well as all of this being a PLC it is very hard for them to set up a business as it is a lot more expensive and they have a lot more paperwork to do. Other objectives that Marks and Spencer can set are increasing the shares of the business.
Marks and Spencer is part of the private sector, it is owned individually or with several of its shareholders within PLC. Marks and Spencer can be a small business with a single owner or it can be a multinational company. As a private sector Marks and Spencer aim to make profit by which they do not wish to be controlled by the state. The advantages of being within a private sector are profit and ability is determined they have access to the financial resources they have the advantage to respond to demands in difficult situations.