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    Marks & Spencer Case

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    agarhemant
    Marks & Spencer faced a financial crisis in the late 1990s due to falling retail sales and restructuring. In the 2000s, the company reconstituted its leadership team, minimized its St Michael's brand, and launched recovery plans. This included a focus on UK retail, expansion into growing areas, store renewals, and becoming 100% own-brand. The company also improved product design and sourcing to achieve faster time to market. These changes helped Marks & Spencer revive its growth.

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    Marks & Spencer Case

    Uploaded by

    agarhemant
    540 views10 pages
    Marks & Spencer faced a financial crisis in the late 1990s due to falling retail sales and restructuring. In the 2000s, the company reconstituted its leadership team, minimized its St Michael's brand, and launched recovery plans. This included a focus on UK retail, expansion into growing areas, store renewals, and becoming 100% own-brand. The company also improved product design and sourcing to achieve faster time to market. These changes helped Marks & Spencer revive its growth.

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    Marks & Spencer faced a financial crisis in the late 1990s due to falling retail sales and restructuring. In the 2000s, the company reconstituted its leadership team, minimized its St Michael's brand, and launched recovery plans. This included a focus on UK retail, expansion into growing areas, store renewals, and becoming 100% own-brand. The company also improved product design and sourcing to achieve faster time to market. These changes helped Marks & Spencer revive its growth.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    540 views10 pages

    Marks & Spencer Case

    Uploaded by

    agarhemant
    Marks & Spencer faced a financial crisis in the late 1990s due to falling retail sales and restructuring. In the 2000s, the company reconstituted its leadership team, minimized its St Michael's brand, and launched recovery plans. This included a focus on UK retail, expansion into growing areas, store renewals, and becoming 100% own-brand. The company also improved product design and sourcing to achieve faster time to market. These changes helped Marks & Spencer revive its growth.

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    MARKS & SPENCER:

    THE PHOENIX RISES


    Group:
    Diksha Mahajan
    Nidhi Kumar
    Pranati Goswami
    Pallavi Misra
    Shweta Agarwal
    Varun Dave

    Introduction

    1975: Acquired two retail chains in Canada


    1985: M&S charge card introduced
    1994: Listed as UKs most profitable retailer
    1996: Restructuring of board and release of Queens honors
    list
    1998: Financial crisis and fall in retail sales
    2000s: Reconstitution of leadership team, minimization of
    St. Michaels brand, major appointments, launch of Perfect
    Campaign and CUBE recovery plan

    SWOT Analysis
    STRENGTHS
    -High Quality
    -Narrow range
    -Good value
    -Partnership with all stakeholders
    -High turnover for apparel
    OPPORTUNITIES
    -Introduction of charge card in 1985
    -Investment in IT
    -High growth in food and financial services
    -Acceptance of general credit cards
    -Convenient locations for food stores
    -Bringing influential people onboard
    -Attention to youth and diversity

    WEAKNESSES
    -Basic facilities in stores
    -Limited investment in inventory
    -Inefficiency
    -Frequent restructuring and layoffs
    -Catering to too many segments
    -High time to market
    THREATS
    -Low cost and high quality goods by
    competitors by outsourcing
    -Increased spend on consumer electronics
    -New competition in womens clothing

    PEST Analysis
    POLITICAL:
    -Asian and UK financial crisis
    -Release of queens honors list in 1996
    -Internal rivalry among board members

    ECONOMIC:
    -Low economies of scale due to high labor
    intensive product
    -High interest rates
    -Increasing competition for cheap products
    with high quality
    Unsuccessful acquisition of Brooks Brothers
    and Kings Super Markets

    SOCIAL:
    -Strikes and unemployment
    -Increased inclination towards consumer electronics
    -Media frenzy over possible takeover contributed to
    firms weakening position

    TECHNOLOGICAL:
    -Large investment in IT
    -Acceptance of General as well as M&S Cards

    Challenges/Issues

    Asian Financial Crisis

    Organizations Leadership Crisis

    Senior Directors replaced by promoted managers


    Setting up of horse race

    Non-improving financials

    Retail sales dropped


    Increased competition in womens clothing
    Competitors products were cheaper and of higher quality

    No improvement in clothing revenues


    Series of layoffs

    Sourcing

    Competitors using cheaper raw materials, sourced offshore

    Steps taken to Revive Growth

    Leadership Reconstituted

    Leadership team was reconstituted when Luc Vandevelde took the helm

    Team building

    Some unique appointments Yasmin Yusuf, Roger Holmes, Justin King, Laurel Powers

    UK Retail team was being built

    Three point program

    Total focus on UK Retail

    Recovery plan for clothing

    Expansion in growing areas like food, home, beauty

    Acceleration of store renewal program

    More intensive use of space

    100% own-brand policy

    To design and supply a collection for more fashion-conscious women

    Restructuring the supply base

    Sub-branding in clothing to reflect more segmented lifestyle of its customers

    Program of value realization Getting rid of any activity that got in the way of recovery

    Return of 2 billion pounds to shareholders

    Ways of Working
    Customer centric
    Team working
    Good incentivizing strategy

    - Command of Supply Chain (Faster


    TTM)
    - Economies of Scale
    - Assisted Self-selection
    - 100% own brand (Per Una)

    CUBE
    Unique Strengths
    1
    Strategy

    - Quality, Value, Service, Innovation


    and Trust

    Values

    - 100% focus on UK Retail and


    Financial Services
    - Realize value
    - Capital Restructuring
    - Platform for exploitation of unique
    strengths

    Other Initiatives

    Changes in design & sourcing and for a better product


    Lower cost and faster TTM
    Zip (For childrens wear)

    Achieving faster TTM

    Eliminating duplication of cost

    Simply Food

    Convenience format located in high customer flow areas

    Stores targeted at two segments

    Good variety of products

    Home

    Sourcing directly

    Ways of
    Working

    Strategies
    - Translating
    scale &
    authority into
    superior
    quality, value
    and appeal
    - Build unique
    customer
    relationships

    - Think
    Customer
    - Be
    passionate
    about product
    - Be one team
    - Be honest,
    confident,
    listen and
    learn
    - Working
    smartly and
    using
    technology to
    work better

    CUBE 2
    Their
    Customers
    - Aspirational
    Quality
    - At accessible
    prices
    - Unrivaled
    choice
    - Home store
    to dream of
    - Simple and
    rewarding
    financial
    solutions

    Values
    - Quality
    -Value
    - Service
    - Innovation
    - Trust

    A Great
    Place to
    Unique
    Work
    Strengths
    - Clear how we
    - 100% own
    each make a
    brand
    difference
    - Command of - Build our
    Supply Chain strengths &
    develop our
    - Scale &
    skills
    Authority
    - Work-Life
    - Focus on
    balance
    Superior
    quality &
    - Recognize &
    innovation
    Respect a job
    - Assisted Self well done
    selection
    - Be rewarded
    for superior
    results

    The Road Ahead

    Future strategy focused on eliminating


    competition by:

    Trying to achieve the peak productivity


    Speed to the market
    Segmenting the market based on consumer needs
    Promoting CSR activities to add to the value chain
    Moving from products to creating experience and lifestyle
    Improve efficiency and productivity

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