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ASSIGNMENT TITLE
Strategic Quality Management for Mark and Spencer
UNIT CODE: H/602/2327
JUNE, 2013
Submit by:
Shyam Hari Maharjan
Student ID: 4481
Table of Contents
Background of M&S .................................................................................................................. 2
1.1 Importance of effective operations management in achieving M&S objectives ................. 2
1.2. Evaluate the success of existing operations management processes .................................. 3
2.1 Importance of effective quality management for M&S ....................................................... 4
2.2 Evaluate the success of current quality management process of M&S ............................... 4
3.1 Plan a strategic quality change ............................................................................................. 5
3.2 Define resources, tools and systems to support business processes .................................... 5
3.3 The wider implications of planned strategic quality change in M&S ................................. 6
3.4 Systems to monitor implementation of planned strategic quality change ........................... 7
4.1 Implement a strategic quality change in M&S .................................................................... 9
4.2 Embed a quality culture in M&S to ensure continuous monitoring and development ...... 10
4.3 Examine how a strategic quality change can be monitored during its implementation..... 12
5.1 Evaluate the outcomes of a strtegic quality change in M&S ............................................. 13
5.2 Recommend area for improvement to a strategic quality change ...................................... 14
References ................................................................................................................................ 15
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Background of M&S
Marks & Spencer is one of the UKs leading retailers, with over 78,000 people working
across the 700 UK stores. It offers stylish, high quality, great value clothing and home
products, as well as outstanding quality foods.
Marks & Spencers leading position in the highly competitive marketplace depend on its
ability to stay one step ahead of other retailers, because of highly imaginative people, who
can set objectives, establish priorities and allocate the proper time for effective operation and
quality management (Spencer, 2013).
Vision: The standard against which all others are measured
Mission: Making aspirational quality accessible to all
Values: Quality, value, service, innovation and trust
Objectives:
Improving the stores environment, developing the M&S Brand and focusing on clothing at
the end of 2013.
To establish M&S as an international multichannel retailer within 3 years since 2010 between
2013.
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administration) to perform that task within time period and delivers the products to the
customers in desired place.
So that operations management is very important in effective business operations since its
establishment. It deals with the design, operation, staffing, marketing, purchasing, finance,
administration etc. which produce and deliver the organisations products and services in the
market. Suppose marketing and finance, it is a functional body of business with specific
management roles. It operates their various activities efficiently and effectively, so that M&S
was able to achieve its organisational objectives of quality, value, innovative and excellent
services. (Vidler, 2001)
Human
Process
Lack of Leadership
Delay in delivery
Lack of Coordination
betweenManagement Delay in customer Service
Lack of good promotion Team
High Competitive
Market
Environment
Technology
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M&S quality management is failing to be consistent in the quality of clothes. Furthermore, its
women ware sales are decreasing unexpectedly directly impacts in their operating profit.
M&S is dedicated to improving and maintain the product quality defined in Plan A. Recently,
the news published in dailymail reports that M&S product quality is very poor (Watkins &
Masters, 2013). While, M&S revealed that 45% of its products sold is Plan A quality such as
Fairtrade and organic. However M&S now used the Better Cotton Initiative (BCI) in over
900 products, including jeans and lingerie.
These are the plan for strategic quality change in M&S.
Objectives:
- To improve the quality, 25% of cotton fabrics directly supply from sustainable suppliers by
2015.
- Increasing the advertising campaign through TV programs, social media and the newspaper
at the end of 2013.
- Reducing at least 50% checkout time to eliminate long queue of customer by 2014.
- Improving 30% stock level of product availability in store by the end of 2013.
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giving necessary training to the staffs. However, effective supply chain management built the
good relation between supplier and customer, which helps to reduce the cost price and deliver
the product in right time, make customer delight.
Physical Resources:
To improve product quality and increase sales, M&S upgraded its IT system (stock
management system, e-commerce) in order to quick process of stock level. The new
packaging system improves the food quality and keeping fresh for longer use (M&S, 2013).
Financial Resources:
The internal cash flows and bonds issued by M&S generate sufficient fund to reinvest in the
business. Which should be used in the right way, in technology, new innovation and store roll
out project promote to increase the sales.
Technology:
Furthermore social networks (Facebook and Twitter) and e-commerce (online platform) is
right tools to provide adequate information for customer regarding quality, style and new
offers. By using Facebook M&S directly links to the customer, where it has got lots of
feedback and comments related to product quality and design. In this way M&S will able to
improve product quality, design, style and pricing according to customers demand and
interest.
M&S sales most of clothing products in their own brand name, so planned for quality change
assure the quality and value deliver to the customer is high in standard. The quality strategy
Strategic Quality and Systems management/GLC/Shyam/4481
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implemented in M&S definitely stronger their brand position and able to attract new
customer. By providing seasonal design, good combination of colour contrast and stylish
British eye catching items. Furthermore, this initiative empowers their human resources to
perform well and improve in technology enhanced the performance of M&S.
Total Quality Management: Chorn (2007), explained total quality management (TQM)
offer a systematic approach to improving the strategic and operational performance of the
organisation. It is customer-focused, strategic and systematic approach to continuous
improvement in quality, service and even innovation of M&S.
a) Customer Focus: TQM approach whereby all suppliers of M&S systematically improve
their performance relative to customers need. This is closely monitored by collecting
feedback from customers, related to the new design, style and cotton fabrics used for product
development. If positive feedback is higher in percentage, indicates that the implementation
of the quality change process is more success otherwise need to further plan for
improvement.
b) TQM improves overall organisational
performance: TQM helps to improve
performance by continual measurement and
external comparisons with competitors. For
example: sales turnover of M&S is 10b in
2012/13, whereas John Lewis only 9.5b
for this year (Hawkes, 2013). This figure
reveals M&S operational performance is
higher and more efficient.
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M&S with competitor (Chorn, 2007). Such as understanding of marketing strategy, pricing
structure and day to day operation strategy as well. For example; John Lewis provides
excellent customer services and free delivery for customers, in order to compete M&S also
improving its supply chain. Where supplier received prompt delivery order via the online
system and perform the delivery process very soon. Furthermore brand positioning of M&S is
highly competitive with John Lewis. However, advertisement promotion strategy of John
Lewis is highly effective, therefore M&S also improving its promotion by presenting a TV
advert, Newspaper, in-store display campaign and fashion shows. These promotions help to
increase brand position as well as sales of cloths.
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Tasks
Success
Timing
Resources
Jan Apr
-Sustainable
Criteria
Increase quality
of cloths
suppliers to buy
Feedback
suppliers
quality cotton
- Employee
- Well trained
Survey
staff
training to
-Adequate Funds
understand about
-Designer
quality material
delivered via
suppliers
Reduce customer
-Increase the
-Increase
queues during
checkout points
sales
Check out
checkout
- introduce self-
performance
Machine
checkout system
-Measure
-Sufficient staffs
profitability
-Training
Maintain stock
Online stock
Daily
availability
management system
inventory
- Trained staff
checklist
Jan-Jun
Mar-Aug
-Install Self
-Well trained
staff
Increase
Aug-Dec
Advertisement
with celebrities
sales
Celebrities
Promotion
-TV advert
turnover
- Reputed Media
-Social media
-Feedback
-Experience
marketing team
Source: http://www.aztemplates.org/action-plan-template.html
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Resource Planning: M&S should use available internal resources effectively to achieve its
objectives of increase quality, minimise the customer queue during checkout. For example;
introduce the new self checkout machine and increases the service tills. And hired the new
designer who is excellent in develops latest design and styles. The well organised planning of
resources gives success to implement quality change.
Communication: The implementation of quality change must communicate through proper
channel, this will lead to success. Suppose, seminar, sharing program and staff meeting is
appropriate methods for communicating with employees for informing clear understanding
of quality changes. Which is relevant to improve product quality and introduced new selfcheckout machine. Once staffs understood benefit and necessity of the new strategy, they are
fully supported to implement change.
Staff training: M&S can organise different level of staff training that enhance their skills and
knowledge. Once empowered the staff, they are able to speed up their customer checkout
service as well as effectively participated in maintain the stock level of the store. The training
gives broad ideas about supply chain system, thus they are more committed to deliver best
services to implement strategic quality change.
combination of these two quality culture embeds employees and customer to improve quality
in each and every level of business operation. These quality culture help in monitoring and
Strategic Quality and Systems management/GLC/Shyam/4481
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improve the consistency in quality of product and services, deliver to customers. Thus, it
empowers the staffs, develop excellent communication channels and build up good
relationships with customers. In addition, M&S organised a series of workshops for
managers, union representatives, supervisors and store staffs for creating a quality
environment based on participation and empowerment (Thetimes100, 2013)
The Quality Culture approach endorsed by the EUA (cf. EUA 2006, 2005), dedicating more
attention to development-oriented and value-based aspects. The approach demands the
involvement of multiple internal and external stakeholders. It needs to be embedded in an
overarching framework that is in line with the M&Ss objectives and focuses on continuous
improvement (EUA, 2007). For example, M&S have 7 pillars of Plan A, that involved
internal and external stakeholders for continuous development of quality culture by organised
various activities. Such as, improve quality of product and services M&S involve a customer
through survey and feedback. And Health & wellbeing programmes ensured customers will
get fresh and well labelled food products, provides awareness about nut allergies. However
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4.3 Examine how a strategic quality change can be monitored during its
implementation
The monitoring is necessary to identify the success and failure of implementation of strategic
quality change. M&S has developed some monitoring system such as, regular feedback,
survey, annual report, and plan A report.
Feedback: M&S regularly collecting the feedback from customers to ensure the delivered
product are high in quality and addressed the customers expects and demands. Social media
like a twitter and Facebook is the best sources for getting right comments and suggestions
from customers. The positive feedback measures how successful of implementation of quality
change in M&S.
Survey: M&S has launched the You Say survey. That involves the employees to find out
the effects of strategic quality change and how the new strategy helps them to improve their
performance and quality of service . The greater participation of staff in the survey could
give broad ideas and identify the problems related to quality constrains implemented in M&S.
In this way, survey continuously monitoring the activities performs to implement quality
change.
Reports: M&S generate the business reports in quarter basis. The reports help to monitor
implemented strategic quality change regularly. The report shows the quantitative and
qualitative data, if sales turnover, profitability, and liquidity ratio are increased during
implementation of quality change, that measures M&S is getting success to achieve its
objectives. Furthermore reports presents, employees skills and performance are increased and
successfully build up the good relation between customers and suppliers also indicates the
success of implementing strategic quality change.
The quarterly reports or annual reports indicate that the sales are increased by 2% after a
marketing campaign launched in M&S. That compares the sales increased between previous
year and this year by performing this advertisement promotion.
If the reports said that quality improvement are effectively applied in stock management
system, then M&S need to develop strategies and plan, which can monitor the daily inventory
level of stores to improve the standard quantity required in the shelves.
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Customer feedback: The customer feedback can be used to evaluate success of planning
strategic quality change. It is taken as consideration to make an excellent decision for
improving quality and design of products. That fulfils the expectation and needs of
customers. The continuous improvement of quality services (quick deliver, decrease the
Strategic Quality and Systems management/GLC/Shyam/4481
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queuing time during checkout and latest design or style) attracts the customers to buy more
products. Thus, M&S sales are increasing as well as market share. This performance indicates
the success of implementing strategic quality change.
Finally, it is recommended that M&S should develop a system that will define the quality
standard of product. M&S plans their product quality is in the Plan A standard, which is not
cleared for the customer. So, it is better to implement international standards of quality
measurement for products and services to reassure the quality and trusted by customers.
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References
Barnes, D., 2008. Operations Management: An International Perspective. London: Thomson
Learning.
Brown, S., Lamming, R. & Jones, J. B. a. P., 2005. Strategic Operations Management. 2nd ed.
Oxford: Elsevier Butterworth-Heinemann.
Chiwawaa, 2009. Importance of Operations Management. [Online]
Available at: http://www.scribd.com/doc/11521407/Importance-of-Operations-Management
[Accessed 24 05 2013].
Chorn, N. H., 2007. Total Quality management: Panacea or Pitfall?. International Journal of Physical
Distribution & Logistics Management, 21(8), pp. 31-35.
EUA, 2007. Embedding Quality Culture in Higher Education, Brussels: European University
Association.
Harvey, L., 2004-13. Analytic Quality glossary, Quality Research International. [Online]
Available at: www.qualityresearchinternational.com/glossary/qualityculture.htm
[Accessed 26 06 2013].
Hawkes, S., 2013. Sparks Flew at Marks & Spencer Yesterday. [Online]
Available at: http://www.thesun.co.uk/sol/homepage/news/money/4737717/John-Lewis-to-overtakeailing-Marks-Spencer-in-2014.html
[Accessed 18 06 2013].
M&S, 2013. Plan A report 2013, London: Salterbaxter.
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[Accessed 24 05 2013].
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[Accessed 24 05 2013].
MarksandSpencer, 2013. Annual Report and Financial Statement, London: Salterbaxter.
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