Sample Essay

The House of Fraser fared better than Marks and Spencer in terms of profitability and performance in the restricted business and high street environment conditions in the last Christmas and holiday season. The main reason for this was due to better planning and strategic use of the resources that the company had employed. House of Fraser invested in a stock planning and retail management system that highlighted efficiency and reduced wastage and related costs to provide the company with more margins to grow and increase its performance this season. The investment in business process improvement technology that reduces operating costs while can lead to better performance levels in the face of recessions as is evident in the case of House of Fraser.

The diversifying operations can also greatly reduce the threat of environmental conditions and the changing forces of the environment to influence the operations of the business and its performance in a negative manner. Marks & Spencer reported that while almost all its segments except the food division showed greatly reduced growth with even declined level of sales as compared to 2007, the online internet based retail shop for the company generated most of the profits for the company in the Christmas season with a 70 to 80 percent reported growth in the Christmas period alone. The main reason for this was due to the increase in the number of visitors and shoppers online as opposed to in-store shoppers.

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