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Presented By: Group 2
Anu Matthew Hinal Khemani Sanchari MajumdarShilpi HotaSunil Prasad Aasma Bhasin Aakansha Agarwal
• Marks and Spencer, one of UK’s leading retailers with over 1330 stores
worldwide
• Originated more than 130 years ago when Michael Marks came to the north
of England
• Before long, he owned a market stall in Leeds which immediately flourished
• Michael approached Tom Spencer to handle the accounts
• Thus on 28th September 1894 Marks & Spencer was born
ABOUT THE COMPANY
Timeline
• 1901, Built a warehouse at Derby Street, Manchester (First headquarters)
1900-1940
• Introduction of ‘cold-chain’ processes
• Ventured into food segment
1940-1970• Introduced frozen
foods• Introduced the “A
Plan”
1970-2010
• 790 stores in UK, 86,000 employees
• Market leaders in Clothing
2010-NOW
TIMELINE
Values Quality, Value, Service, Innovation and Trust
Mission To make aspirational quality accessible to all
Vision To be the standard against which all others are measured
Product Line
Clothing Home & Furniture
Food And WineBeauty
Products
International Expansion
Bricks and clicks
strategy
Increase
food
stores• Aims to open about 250 stores
outside UK• Increase their overseas sales by
25% and profits by 40%• Priority markets are India, China
and Gulf with 1.9 percent increase in group sales
• Plans to include flagship stores in major cities and a collection of new dedicated lingerie and beauty stores
Leveraging E-commerce to strengthen brand awareness in
China and reach across the country
• Aims to set up 20 stand-alone food stores in Paris
• Expand food business in Western Europe
GROWTH PLANS
India •Important market outside UK for M&S•Earmarked 20 sites in India for the lingerie and beauty concept•In total, M&S wants to have 100 stores in India by 2016
China•Focus on entering key cities•Taken the decision to close five of its supporting stores in the greater Shanghai region•Leveraging E-commerce to strengthen brand awareness •Marks & Spencer launched a new dedicated kids-wear store on TMall.com and a new clothing store on JD.com
Middle East •Marks & Spencer Lingerie & Beauty has already opened at two locations in Saudi Arabia, with 10 further stores planned in the next two years
GROWTH PLANS
Strength •High brand recognition•Wide variety of products•It has over 1000+ stores present across 40
countries•Over 80,000 employees form a part of the
workforce globally•Organic, healthy food products
Weakness• Highly priced products vis-a-vis their
competitors• Attracts only people over 25-30 years of
age• Weakening company financials
Opportunities• Opportunities in the online retail space• Introduce clothing fo younger people• Geographic expansion in emerging
markets
Threats•Still reliant on mega stores•Competitors like ASDA, TESCO etc and
various new entrants
SWOT
SWOT ANALYSIS
Political• Liberalization in east Europe• Free trade agreements
Economic• Rising Incomes
Social• Changes in consumer tastes
and lifestyle
Technological• Internet has become a
powerful selling channel• Mobile phone shopping is just
taking off
Legal• Regulations for standard
packaging, eco-friendly material and processes of manufacturing
Environmental• Waste management• M&S has developed a program
called Plan A in this regard
PESTLE ANALYSIS
Porters 5 forces
Threat of substitutes
Bargaining power of
buyers
Threat of new
entrants
Bargaining power of suppliers
Degree of rivalry
The alternatives came from Tesco and Sainsbury as they acted on providing added value foods.
The bargaining power of suppliers is quite low when it has concentrated purchasers. Marks & Spencer outsourced, globally to reduce its cost similar to its competitors which result a lower bargaining power of its UK suppliers.
Under competitive rivalry, Marks & Spencer really faced threat as other companies entered the industry with the same quality goods but with affordable price and up-to-date fashion.
Low bargaining power due to delivering services or products to the changing demands of consumers in the market
The threat of entry looks out in terms of differentiation for Marks & Spencer to the customers' loyalty that can discourage potential entrants. Marks & Spencer has a long time developed focus that has served as an entry barrier.
PORTER’S FIVE FORCES MODEL
BCG Matrix
Stars• Men and
women's clothes
Question Marks• Food
Products
Cash Cows • Lingerie
and Nightwear
Dogs• Children's
wear
BCG MATRIX
Transforming Business Creating Value
Strategic Priorities for 15-17
BUSINESS STRATEGY
PLAN A
Performance
Risk Managem
ent
Brand Values Heritage
TRANSFORMING BUSINE
SS
CREATING
VALUEUnderstanding customersCompetitive AdvantageM&S Difference
STRATEGIC
PRIORITIES
Food Sales Growth•Availability and
choice•More stores
GM Gross Margin Improvement•Better buying
processes•Renewing old
processes
GM Performance Improvement•Newness•Quality
Strong Cash Generation•Supply chain
initiatives•Less capital
expenditure
HR STRATEGY
1. TO ADDRESS CURRENT CHALLENGES
2. TO SUPPORT THE BUSINESS STRATEGY
HR STRATEGY
TO ADDRESS CURRENT CHALLENGES IN EXISTING HR PROCESSES
HR STRATEGY
CHAL
LEN
GESHR store-to-store basis
No centralization of policy
No shared learning
SOLU
TIO
N
Remove HR responsibilities to do with case laws away from stores
Dedicated HR Hubs
Access to case law pages
CENTRALIZATION
CHALLENGES
• HR function was heavily burdened with administration, relying on manually intensive processes, with
difficulty producing useful management information
SOLUTION
• Streamline the range of HR activity
• Remove admin tasks that burdened the Store Managers
• Retail Training Specialists to design and deliver all training needs nationally
• Invest more heavily in HR technology - national People Policy service , telephony system
TRANSFORMING ADMINISTRATIVE PROCESSES THROUGH TECHNOLOGY
• Introduction of new business units to create them fully profit-
accountable
• Shift to a flatter organizational structure
• Increased employee empowerment and responsibility
ORGANIZATIONAL STRUCTURE
TRAINING AND DEVELOPMENT
• M&S recognised that you need the best leaders and managers to get
you through and out of the recession.
• During 2009 M&S spent more on leadership and management
training than previous years
• The retail training function focused on developing the skills that
would make the biggest difference in both the short and long term.
TRAINING AND DEVELOPMENT
TO SUPPORT THE BUSINESS STRATEGY
HR STRATEGY
• Equal Opportunities Policy
• all decisions relating to employment practices are objective
• Employ a workforce that reflects the diverse community they serve and maximizes personal and commercial opportunities
• Review changes in attitude and application of internal policy
• Raise staff awareness by designing and delivering training programmers that support the Equal Opportunities aims.
• Comply with the law and communicate to their stakeholders the responsibility to protect both individuals and the company.
• They also recognize that it may be necessary to make reasonable adjustments to ensure that disabled workers or applicants are not placed at a substantial disadvantage by a practice or policy that exists at M&S.
DIVERSITY
• Pay- review the basic pay every year• Employee discount • Holidays• Bonus• Pension• Life Assurance • Sharesave• Salary Sacrifice • Discounts• Health & Wellbeing • Charity Volunteer Day
REWARDS AND BENEFITS
Lifestyle Options
• Flexible working • Supporting working parents • Supporting careers • Supporting the community • Supporting you
LIFESTYLE OPTIONS
Employee Engagement
• According to the HR director of M&S Tanith Dodge, the company
emphasizes on four factors to engage its employees.
These four factors are:
1. Opportunity and Well-Being;
2. Pride in the company;
3. Trust and
4. Involvement Opportunity and Well Being
EMPLOYEE ENGAGEMENT
Employee Engagement
• Internal social media network Yammer helps bring workers together,
as well as congratulate them for hard work.
• Employee-of-the-month award
• Staff performance incentives
EMPLOYEE ENGAGEMENT
• Enhance life of our customers by providing high quality and innovative
products in the field of clothing, food and home products with a
special focus on making sustainable future
VALUE PROPOSITION
Value ChainCapability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
SolidInfrastructure
Warehouse Construction
DistributionCenters
Retail Chains
Strategic Location Planning
Distance Travelled by Transport fleet
Procurement locations
Fuel costs
Areas not covered by retail outlets
Visibility gap
Increase in Procurement
options
Recruiting Operational
experts
Marketing Strategists
Capability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
Logistics(Inbound & Outbound)
Inventory Management
Global & Local Sourcing
Channel Operations
Inventory locations placed close to
customers
Sourcing very close to the place of
origin
Wide range of order and delivery options
Demand-supply gap
Amount of potential customers in an
area
Transportation costs
Availability of material
Speed of delivery
Costs are reduced to a great extent
Increase in transportation fleet
Competitor speed is matched
Competencies to analyze gaps and
metrics (analytical ability)
Retention and Engagement
strategies for the fleet of drivers
Capability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
Services
Customer Engagement
Internal efficiency
“SHOP YOUR WAY” model
(ordering online and in-store collection)
Staff Zoning (also included
increase in staff)
Percentage of sales through online portal
Increase in customer footfalls
Customer Satisfaction
Index
Lapsed/Potential
customers are brought within
the ambit
Help needed by customers is
always available
Effective hiring policies and
procedures to enable efficient
and prompt service (Training
Needs)
Capability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
Marketing and Sales
Promoting exclusivity
Branding
Advertising
Bringing in the “English” flavor into
the promotion campaign (reliance on
the British brand)
Sub-brandingStrategy
“Your M&S” campaign (Core brand)
Traditional ads (Print, TV, etc.)
Market ResearchSurveys
Monthly/Annual sales figures
Cannibalization figures
Concentration on a single brand through various sub-brands
Brand Visibility
Rewards and recognition to the
sales and marketing teams to bring in the necessary amount of motivation (being the
central revenue generating exercise)
Perks for crossing minimum sales
numbersEngagement activities
to perk them up
Capability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
Technology
Automation at various levels
Store Design
Auto-generation of order forms and delivery
details
Online Shopping
Ease and range of shopping is
increased
Order and delivery time
Customer satisfaction
Index
Store revenues
Time spent by customer in a
store
Competition from other e-
commerce giants
Decreased revenues and low interest
among consumers
Recognition of technical
competencies for the
recruitment of suitable
candidates to fill up these
positions of responsibility
GLOCALIZATION
• Organization should hire/ promote locals to help in designing the products
which better suit the market needs while still maintain the international
appeal.
• More people from the local geography should be added to the board of
directors of M&S per country.
• Acceptability of ideas by the employees
STRATEGIC RECOMMENDATION
RECOMMENDATIONS TO IMPROVE HR
1. Promote Plan A
2. E-learning/Training
3. E-HR
4. Talent management/Succession planning
• Predictive algorithms• Promote from within• Use competency based selection process for hiring• Use local talent to reduce mobility expenses
M&S.com• Advantage : penetration and presence• Challenge : price sensitive purchases
Right LocationsPremium products -> expensive -> not everyone can buy
Managing Compensation Expectation• Wafer-thin margins and scarce talent • Pay matters more than organization
Rewards and recognition• The retail sector in India is not considered as an important industry• high churn rate and low morale
M&S in INDIA