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