Marks & Spencer

Strategic Management-2

1

Group 7Anand Kumar

12P127Ankush Singla

12P129Bhoomi Ashwin

12P131Aditya Ram Chadha

12P132Siddharth Bharadwaj

12P170Soumyajit Sengupta

12P171

The Phoenix Rises

Business Model

Business was a way of Creating Value for Customers & Employees

Pioneered a wide range of Social Services & Benefits for Employees

Adopted principles of SEARS including merchandise control by a central organization

Began the Revolutionary Policy of Direct Buying from Manufacturers

Focused on a “Partnership Model”

•2 Retail Chains acquired

•Local Resistance•Union Jack was viewed unfavourably in Canada

Canada

•Paris store met with moderate success in 1975

•Further stores were opened

France•Full line stores in Holland, Belgium & Hong Kong

•Franchisees in other Countries

Global Expansion

Major Attack on Costs & Inefficiencies

Canadian Business Divested

Extension of Core Product Ranges

Push into Consumer Financial Services, based on Charge Card &

M&S’s reputation

Global Expansion

1991 Re-Jig

Major Challenges & Renewed Focus

Clothing•Cost

Reduction•Quality

Improvement•Sourcing

Speed

Financial Services

• Build up Charge Card

Restore Marks & Spencer’s as a Retail Superpow

erFood

•Customer Access

Improvement•Square Footage Constant

Competing with firms that sourced from offshore partners

Maintaining quality while fighting on price

Overstocking

Lay offs, personnel and communication problems

Changing trend leading to reduced spending on apparels

Getting stores that are more accessible to people

Maintaining quality of prepared and processed food

Too much focus on cost efficiencies

Less availability of new store space due to U.K. property regulations

Recovery

Development

Expansion

SWOT Analysis

•Women’s clothing•Home décor and

furnishing•Understanding

customer behavior through charge card data base

• Compromise on quality• Unwise acquisition

decisions

• Onshore sourcing

• Inconvenient store locations

• Slower time to market

• Brand recognition• M&S Charge cards• Size• Real Estate

Strengths Weaknesses

OpportunitiesThreats

Tackling Challenges

•Valdevelde (Executive Chairman)

•Yasmin (Director, Design)

•Longdon (Director, Women Clothing)

•Davies (Head, Per Una)Finding the Right

FIT between Roles & Role Player

•CUBE 1•CUBE 2

Clear Communication of Strategies to all

Relevant Stakeholders •ZIP

•PER UNA•PERFECT CAMPAIGN

•BLUE HARBOUR

Proper Segmentation of

Offerings

•Focus of CUBE 2•Inculcated a sense of Ownership

•Triad Approach Focusing on Speed, Quality & Scale to inhibit Competitors’ growth

Adopting measures to Ensure Implementation,

Sustainability & Achievement of

Objectives

CUBE 1

Performance

outstripped Expectatio

ns

Regaining Focus on Primary

Segments: 3 instead of

11

Faster Time to Market

Merchandising Control

fully Decentraliz

ed

Design Control

fully Decentraliz

ed

Launch of “Perfect” Campaign

Launch of “Per Una” (One Woman)

10% incentive for Charge Card Users

to Revisit Stores

Sourcing Pattern had been transformed from 70-30 British to 20-80 British

“Better Product, Lower Cost & Faster Time to Market”

Other Initiatives

Zip: Separate Design & Sourcing Strategy

Simply Food:

Convenience Format &

Focused Selling

Home: Offshore sourcing

Directly & Large Store Format to

serve Customer

Needs

Financial Services: “MORE”

introduced to re-establish a

TIGHT relationship

with Customers

Inculcating a sense of individual ownership for collective results

Concentrating on speed along with quality and scale to stifle the growth of competitors in the future

Getting customer emotionally attached with the products

Keeping in direct touch with the customers to better understand needs and trends

CUBE 2: Sustainable Future Plan

Thank You!