Sei sulla pagina 1di 5

The case invites the development of a longer-term strategy for the organisations development.

What recommendations could be made for long-term strategy development of the organisation? You can move some items from the intro to conclusion and vice versa. You dont need to add too much work on this lol. Just develop the ideas, unless you have more ideas as far as recommendations. Introduction Mark & Spencer (M&S) has real-time customers, sells more products and is known for its products and services. Simon Marks, successor to Michael Marks (founder of M&S) was known for his autocratic management style and his ardent ability for detail. This, in turn affected his business dealings and way of interacting with suppliers. He was meticulous in his processes and ensured specification was exactly what was requested - which in turn manifested in the quality offered by M&S to its customers. In the long run, M&S was known and is still known for high quality products to its customers, consequently, positively contributing to its market share and overall business value. In light of the current situation faced by Marks and Spencer (M&S), the need for a strategic plan that would help it handle future demand is critical. When Sir Stuart Rose started out, he did so with his proposed strategy - what Johnson (2010: 653) referred to as under-promising and over-delivering in terms of expectation setting. His approach allowed M&S to push forward and promote humanity. Arrogance was non-existence in his strategy. Furthermore, Sir Stuart Roses 11-point strategic plan involved: quality, value, service, innovation and trust as mentioned earlier as per Johnson (2010: 653), this paper presents recommendations that could potentially aid M&S towards recovery. After much analysis of Marks and Spencers development strategy - from the past and up to date, it is imperative to analyze and investigate possible challenges it is likely to face in the future and what it can do to remain on top of its game and at the position it would like to be at. For long-term strategy development, recommendations are as follows:

Recommendations According to the study, in April 2007, Marks and Spencer plc became the first UK retailer to offer school wear made from recycled materials. Both profit and sales continued to show steady (5 per cent +) growth (Johnson, 2010: 654). But today, that has changed. M & S is currently offering high quality products at a reasonable price to its customers. In the future, the problem of sustainability may erupt due to responses from other sellers or retailers within the market, especially those offering the same products at a lower price whilst focusing on a larger scale of products in the existing market. Example-current market condition with ASDA, etc? While M&S maintains an account of these competitors, it should also consider a plan that will help in the expansion of this line of products (e.g. Waitrose line of product, etc). According to Porter (1998: 14) the fundamental basis of above-average performance in the long run is sustainable competitive advantage. For Marks and Spencer to remain at the level of sustainability that keeps it on top of the competition whilst promoting other factors that contribute to the success of the organization, it should continue to preserve and maintain its competitive edge, which will in turn set it at a position that keeps it on top of the competitors. In addition, it is highly imperative that M&S preserves its strategy regarding the maintaining of core competences within the organization. This is not just applicable to the organizational strategy but also employees relationship, training and moral as well. In order to achieve this, M&S should exploit those areas where they are particularly strong and exert a strong presence; consequently, promoting the removal of current barriers that exist and lead them towards achieving entries into other sectors. Additionally, this objective can be achieved through the use of an analysis that weighs their strengths and weaknesses from past experiences and a possible reuse of those strategies that worked very well in the past. The most obvious change that occurred within Marks and Spencer was made manifest in 2008 when Stuart Rose went back to the idea of being the CEO and chairman - a move that had shown to attract failure in the past. This initially had proven to be catastrophic as it gave the person in question too much power over the company, processes and procedures.

Another example involves the concepts that have worked in the past and may still work in the future although further assessment is needed before employment; Vandervelde and Holmes came up with new business models such as the food concept and started on with selling the idea in 2003. During this period, the loyalty scheme was also introduced to encourage customers and promote M&S loyalty (Johnson, 2010). With innovative ideas, positive outcomes and sales increased between 2002 and 2003; and this consequently led to an M&Ss knack to attract more customers and retail talent. Vandervelde also introduced and incorporated the Corporate Social responsibility during this time (Johnson, 2010). The company experienced another slow period to achieving greater shares. Additionally, one strategy that failed to work was when chief executives were appointed with full power vested upon them to control merchandising, supplies, store design and layout, etc and this appeared to fit what the company needed just fine. However, this turned out to be problematic in the long run. This should also be considered. More example-build alliance with suppliers. Shortly after Bolland took up the responsibility of being the CEO at M&S in May 2010, it was clear that stakeholders were not satisfied with the M&S board as did in the past. Other points Brand usage and its importance in the futureincrease mergers, cooperation and alliances. Though the above recommendations could potentially aid in the successful expansion of M&S, it is important to note that not all strategies may work in every situation and the time of the strategy should also be considered before implementation. That being said, M&S should not just built its future plans but should also observe market trends and current market conditions and should not close its doors to new ideas, restructuring when necessary or organizational change. As M&S

continues on the right path, it should also consider other avenues for growth, development and expansion. It is also expedient that M&S reassesses its target and determines who to focus its target on. The current case suggests that more than two-third of M&S customers are 55+; perhaps, re-strategizing by target other groups (after concluding on who its target audience or customers are) will lead to growth and generate more sales and profit. Focusing on its core customers will also aid in creating a strong presence in the market. More ideas? Marks and Spencer continued to perform well from 2005 through 2006. As it contributed to climb higher financially beating its rivalry, it reached the mark it had been anticipating since the entry of Sir Stuart Rose. Conclusion In the future, Marks and Spencer should be mostly concerned with maintaining a strong hold on the processes and concepts that proved to be the right fit retrospectively. Marks and Spencer does not have to necessarily refrain from concepts that did not work but close attention to the trend and outcomes that were brought about as result of such processes that were implemented should be considered and taken into account. New strategies that are likely to move the company forward should also be taken into account. This is also applicable to store designs and the products they offered. This brought about a distinct perception in the way customers viewed the company and the products they offered. In essence, practices that were considered good or bad should be accessed and efforts should be put towards understanding certain phenomenon that exist within specific scenarios

References Johnson, Gerry (2010) Exploring Strategy Text and Cases Plus MyStrategyLab and The Strategy Experience Simulation. 9th edition. Said Business School, University of Oxford. Porter, M. 1998, Free Press; 1st Free P edition. Baldwin, Christian (2008) Corporate Strategy The Journal of nursing administration, Vol.38(12), p.514-5 Jayaswal, S ., Jewkes, E., Ray, S (2011) Product differentiation and operations strategy in a capacitated environment. European journal of operational research, Vol.210(3), p.716-728 Johnson, Gerry (2010) Exploring Strategy Text and Cases Plus MyStrategyLab and The Strategy Experience Simulation. 9th edition. Said Business School, University of Oxford. Johnson, G., Scholes, K., Whittinton, R (2008) Exploring Corporate Strategy: Text and Cases. 8th edition. Prentice Hall. Johnson, G and Scholes, K (1997) Exploring corporate strategy: 4th Ed., Prentice Hall 873 pp. Kapferer, J. 1992. Strategic brand management, The free press Lynch, Richard (2000) Corporate Strategy. 2nd edition. Harlow: Financial Times Prentice Hall

Potrebbero piacerti anche