Marks and Spencer plc Marks and Spencer (M&S) is one of the UK's leading retailers - OCR - GCSE Business - Question 18 - 2019 - Paper 1

M&S's 'Plan A' ethical programme can impact profitability in several ways. Firstly, by enhancing brand reputation, M&S could attract more customers who prioritize ethical consumption, leading to increased sales. Secondly, reducing waste and improving operational efficiencies through sustainable practices can lower costs in the long run. However, initially, implementing such ethical practices may require significant investment, thus impacting short-term profitability. Therefore, while 'Plan A' may have initial costs, the long-term benefits could outweigh these by securing customer loyalty and reducing operational costs.

Quality is crucial for M&S as it helps maintain its brand reputation. Customers associate the brand with high-quality products, and satisfying customer expectations in this area increases customer loyalty. Quality products also reduce the likelihood of returns and complaints, which can be costly for the business. By ensuring high quality, M&S can strengthen its market position and differentiate itself from competitors.

One advantage of switching from batch production to flow production for the Montana Bakery is increased efficiency and faster production rates. Flow production allows for continuous processing, which can lead to lower production costs per unit and meeting higher demand. Conversely, a disadvantage is the risk of decreased flexibility. Unlike batch production, flow production may struggle to accommodate variability in product types and flavors, which could limit the bakery's ability to respond to changing consumer preferences.

The Montana Bakery should consider switching to flow production if their demand for products justifies the need for efficiency and speed. If the bakery has stable and high demand for a limited range of products, flow production could enhance productivity and reduce costs. However, if product variety is crucial for their market success, it may be wise to maintain batch production to keep flexibility and quality intact. A thorough analysis of market demands and production capabilities is essential before making this decision.

The ethical treatment of workers at M&S can significantly impact both motivation and retention. When employees feel valued and respected, their job satisfaction increases, leading to higher motivation and productivity levels. Furthermore, ethical practices such as fair wages, good working conditions, and opportunities for professional development foster loyalty, reducing staff turnover rates. Retaining experienced employees saves costs associated with recruitment and training, thereby bolstering overall organizational performance. However, inconsistency in the application of these ethical practices could lead to dissatisfaction and, ultimately, attrition, impacting M&S's operational efficiency.