Marks and Spence- The phoenix Rises

7/29/2019 Marks and Spence- The phoenix Rises

1/19

By-

Divya Gomber Amrit KumarPriyata Bhakat Haaris FarooquiDeepak Verma Sagar Saxena

Vidushi Gupta Shantanu Khare


2/19

Mark & Spencer: UKs largest retail firm inmore than 700 locations across 34 countries.

Company involve in selling clothing, the food,home furnishing, footwear etc.

This case talks about the steps taken torestore M&S as a retail power considering theclothes, the food and the financial services.


3/19

Started by Mark Simon in1882

Control of merchandise generated by thecentral organization that was

Acutely sensitive to consumer demand

Could adjust to the flow from factories to the

stores as required


4/19

By 1960 M&S had a dominant position in UK

Simple strategies

o Offered narrow ranges of goods of high quality and value

o Numbers ofSKUs are small

o Clothing were fashionable but not high fashion

o Food line comprised of perishables of highest quality

Formula delivered on value premisePartnership with suppliersPartnership with employeesPartnership with customers

By 1975 M&S was on every High Street of every major English City.


5/19

In 1970s, Conditions in UK were depressing. Economy was suffering with strikes, high interest

rates and unemployment. Entry into Canada through acquisition of two retail

chain failed drastically.Later, Entry in the European continent was successful

through France in 1975.

Innovation Introduced Marks and Spencer charge card ( 1985 ) Franchise operations in some countries. Extending Core product ranges Consumer Financial Services


6/19


7/19


8/19

Top Management Re-organization failed

Asian Crisis and currency appreciation

Heavy Investments

Changing consumer interests

New strategy adopted by competitors


9/19

In-house fighting

Multiple Layoffs

Poor Corporate Culture


10/19

Focus more on brand rather than product

On shore and offshore

Best value

Sales went off the cliff


11/19

On March 2000, he took over the leadreship

Focused on building a new team

On September 2000, Salsbury, Clara and McCracken left the company

Vandevelde reconstituted the Leadership team

Thus, at the fall of 2000, the Leadership team comprised of

Luc Vandevelde

Chairman & CEO

Alan McWalter

Executive

DirectorMarketing

David Norgrove

Executive Director

Strategy &International

Robert Colvill

Executive Director

CFO

Cherie Lafland

Director

Communication

Graham

Oakley

Co. Secretary

Gary

Executive Asst. to

Luc Vandevalde

Richard Gillies

Director of Change


12/19

Luc Vandevelde

Chairman & CEO

Alison Reed

Executive

Director

CFO

Laurel Powers

Freeling

Executive Director

Fin. Services

Roger Holmes

Executive

Director

UK Retail

David Norgrove

Executive Director

Strategy &

International

Vincent McGinlay

Director

Supply Chain

Maurice Helfgott

Buss. Unit

Director

Steven Longton

Buss. Unit

Director

Michelle

Jobling

Buss. Unit

Director

Yasmin YusufCreativeDirector

Richard Wolff

Retail Director

International

BarryStevenson

Retail DirectorUK Stores

-


13/19

Acceptance of fight for survival

Three point program

a) Total focus on UK retail:

i. Recovery plan for clothing.ii. Expansion in areas like food, home & beauty.iii. Acceleration of store renewal program.iv. 100% own brand policy.v. Sub branding in clothing to reflect the more segmented lifestyle.

vi. More intensive use of space.

b) Program of value realization.

c) Return of 2 billion pounds to shareholders.


14/19

Strategies- 100% focus on UK Retail and Financial Services

- Realize value

- Capital Restructuring

- Platform for exploitation of unique strengths

Values, Vision and Mission

- Quality, Value, Service, Innovation and Trust

Unique Strengths

- 100% own brand (Per Una)

- Command of Supply Chain (Faster TTM)

- Economies of Scale

- Superior Quality

Ways of Working

- Customer centric

- Team working

-Be Honest and Confident

CUBE 1(Recovery plan)

CUBE 1


15/19

A small version of cube were placed on the desk of thousands ofemployee.

Clothing was where M&S lost customer confidence and market share.

George Davies was appointed to develop a sub brand Per Una.

Incentives of 10% was given to 5 million charge card holders.

Meanwhile M&S was busy framing their recovery plan others brandlike ZARA also started evolving at a remarkable speed.


16/19

Yasmin Yusuf was appointed as creative director to handle theresponsibility for upgrading the quality of fashion.

Steve Longdon had the job of making women's clothes available at

the right time in stores.

Barry Stevenson was appointed for store renewal program.

Successful launch of Per Una brand.

Improvements needed in the supply chain.

Less outsourcing of goods.


17/19

Taken for changes in design & sourcing ,better product, lower cost and

faster TTM

Zip(for childrens line)

Eliminating duplication of cost.

Achieving faster TTM. Simply food

Convenience format located in high customer flow areas.

Stores targeted at two segment.

Good variety of products

Home Sourcing directly.

Establishing consistency and coherence across the range.

Financial services

Improving the card used by 3 mn people for greater services.

Re-establishing a tight relationship with customers.


18/19

Future strategy focused on eliminating competition by:-

Trying to achieve the peak productivity.

Segmentation the market based on customer needs.

Moving from products to creating experience and lifestyle. Improve efficiency and productivity.

Promoting CSR activities to add to the value chain.


19/19

Cube2

Employee

Engagement

Theme 1

Good betterBest

Theme 2

Products to

experience

Theme 3

BetterEfficiency &Productivity

Documents

Marks and Spence- The phoenix Rises