Marks and Spencer The

Pheonix rises

GROUP 2
ABHAS GARG 14P001
AKHIL AGARWAL 14P005
ANSHU PATNAIK 14P008
ANKIT SAXENA 14P011
AZAAN ATEEF 14P014
SHOBHIT GARG 14P048

Business Objectives of M&S

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

Business Strategies Going Global

Acquisition of two retail chains in Canada

Union jack not popular; unsatisfactory results

Opening of store in Paris in 1975

Reasonable amount of success

Charge card introduced

2-4% of charge on major cards avoided

Franchise operations were established in many

countries

Business strategies Richard Greenbury

Major Attack on Costs & Inefficiencies

Canadian Business Divested

Extension of Core Product Ranges

Push into Consumer Financial Services, based on Charge Card & M&Ss reputation

Major challenges
Clothing business

Competing with firms that sourced from outshore

Maintenance of quality while keeping price constant
Overstocking Heavy dicsounts
Layoffs and management conflict
Changing global trend; reduced spending on apparel

Financial Services

Develop the existing charge card

Fooding

Maintaining quality of prepared and processed food

Getting stores that are more accessible
Focus on cost efficiencies

SWOT Analysis

Strengths
Strong brand image
Charge cards of M&S
Size of the business
Existing stores and real estate

Opportunities
Womens clothing
Home decoration business
Customer behavior assessment
through charge cards business
Off-shore sourcing from countries
with low labor cost

Weaknesses
On-shore sourcing
Inconvenient store locations
Slow time-to-market

Threats
Compromising on quality
Intense pressure on margins
Wrong acquisition decisions
Lay-offs and management conflict

The turnaround strategy

Recovery plan for clothing
Expansion in growth areas food, home and beauty
Focus on intensive of use of space in stores
100% own-brand policy

Promote sub-branding in clothes

George Davies design clothes for fashion conscious women

Divest from everything that blocked the recovery

steps
Return of shareholders wealth

Recovery plan CUBE - 1

Strategies

Focus on UK retail and financial services

Stop loss making activities
Long term future growth

Ways of working

Think as a customer
Team-work

Vision mission and values

Establish and maintain major strengths

100% Own brand

Command of supply chain
Quality and innnovation

CUBE - 1
Sourcing from UK changed
from 80% to 20%
Mantra of Better, Faster,
Lower cost
Margin 7 points higher

Launch of perfect campaign

Launch of per una
10% incentive to charge card users to
revisit

Decentraliztion of design control

Faster time to market
Focus on primary segments : 3/11

CUBE 1 (Other Initiatives)

ZIP

Separate design and outsourcing

Simply Food

3000 square feet located in high customer flow area

Convenience to customers
Planning of 100 such stores

Home

Offshore sourcing model

Opening up of large stores to showcase products

Financial Services

M&S and More card M&S loyalty cum credit card

CUBE 2
Inculcating a sense of individual ownership

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 touch with the customers to better
understand needs and trends

THANK YOU !