Page 1

marks & spencers case study booklet

for Unit One: People at Work

Ownership
M&S is currently a PLC and also operates franchise concessions. However,
it did start off as a sole trader in 1884 when Michael Marks opened up a
market stall in Kirkgate Market, Leeds. It was in 1894 that he joined forces
with Tom Spencer who was the cashier in the wholesaler where Michael
used to purchase goods for his stalls. Tom wanted to start his own
business and had 300 to invest. The two worked well together and by
pooling together their skills and experience, the business expanded. Upon
their death, the business was taken over by Simon Marks [son of Michael]
and ably assisted by his good friend, Israel Sieff, the business became a
private limited company.
This was necessary because both men wanted the business to expand and
therefore required a different form of ownership. The risk of unlimited
liability was removed by becoming a private limited company. More
capital could be raised through the sale of shares and there was a divorce
of ownership and control. The shareholders were the owners and they
appointed the directors to run the business. The shares could only be
bought or sold without the permission of all the shareholders and therefore
this safeguarded against potential takeover.
The business went from strength to strength and became a Public Limited
Company the ownership it still has today. Becoming a PLC meant that
shares could be bought and sold on the stock exchange and this led to
greater capital generation. It would have been more complex to set up
[with the Memorandum and Articles of Association having to be filed with
Companies House] and 50,000 of authorised share capital having to be
raised. There was still the benefit of limited liability but a greater risk of
being taken over with the shares being readily available.
There is a greater divide between ownership and control. There are
literally thousands of shareholders who are the owners and they appoint

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the board of directors to run the company. Sometimes there is a conflict of
interest between the shareholders and the directors. This is one of the
reasons why the company did so badly in the 1990s. The Board needed to
cut back on operating costs and create more profit so that the company
could pay the shareholders greater dividends which they were demanding.
This is why cut backs were also made in training and in the provision of
perks to staff.
Every year the company produces two reports its Report and Accounts
which is a report of its performance during the past financial year it
contains a full set of accounts which by law have to be made public and
the Corporate Social Responsibility statement. It also holds an Annual
General Meeting or AGM and this is where the directors invite the
shareholders to a meeting and inform them about the performance of the
company and its plans for the future.
This form of ownership allows Marks and Spencer the opportunity to
expand and diversify and shareholders are happy to invest because of the
good dividends that are paid out. There is also limited liability which
reduces the risk.
To expand its Simply Food stores, the company offers franchise
arrangements to would-be franchisees. This has allowed the number of
stores to grow without the company having to make all the financial
commitments.
What is the difference between a private and public limited company?
M&S operates in the private sector what does this mean?
What are the disadvantages of being a PLC?
Aims and Objectives
The mission statement of the company is to make
aspirational quality available to all. This means
that it wants to be seen as offering really high
quality goods at a very affordable price which in
turn leads to the consumer receiving good value
for money.
The companys aims can be seen on its
corporate website and they are filed in the
Corporate Social Responsibility statement. They are based under the
headings of Products, People and Places.
In terms of products, the company wishes to provide exceptional quality,
competitively priced products for customers, using a wide variety of raw
materials and technologies. They also want to ensure that suppliers
operate ethically and ensure that customers can use and dispose of
products responsibly, without undue harm to the environment. For
example:
Ethical trading: make greater use of the Supplier Ethical Data Exchange
database and encourage more suppliers to use it.

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Food packaging: expand Responsible Food Packaging initiative to use
more recycled and natural, sustainable materials.
In terms of people, the company needs great people to deliver great
service for customers. To attract and retain the right people, the company
needs to be seen as a retail employer of choice. Examples:
Career Development: launch a Your M&S Career Path programme for
section and store managers. This will provide a step-by-step path linked to
skills and performance.
Occupational Health: extend trials to provide employees with free, fast
referral to physiotherapists, osteopaths and chiropractors, and access to
confidential telephone advice and counselling to help with physical and
mental health problems which affect performance at work.
Fire, Health and Safety: reduce accidents and absence related to any workrelated injury.
In terms of places the company aims to make communities better places
to live and work in. The company wishes to foster good relationships with
communities and manage responsibly the impact of operations on the
environment. For example:
Breast Cancer Awareness: extend the Breakthrough Breast Cancer support
to include the Fashion Targets Breast Cancer campaign.
Energy: reduce store energy carbon emissions by a further 20%. Use
compliance with new legislation on energy efficiency to work towards a
low carbon footprint energy efficient stores.
Transport: start to upgrade delivery fleets to Euro IV standard engines.
At store level these aims would be broken down into SMART objectives. I
do not have access to these but based on the aims listed above, try to
create a SMART objective for each of the three categories. Write this in
the space below:

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Functional Areas
Below is an organisational structure for a typical Marks and Spencer store:
General Manager

Commercial Selling Manager

Store Operations Manager

Visual Merchandising Manager

Commercial Manager

Store
Service
Manager

VM Section Manager

Section Manager

Advisers

Staff
Service
Manager

HR Manager

VM Advisers

Operations Advisers

How many levels of hierarchy?

Is it flat or tall and why?
What are the advantages and disadvantages of this type of structure?
Why isnt there a finance function in the store?
The HR function allows M&S to ensure staff continue to be regarded as the
companys best asset. The function recruits and manages staff and
ensures each member of staff is developed to their full potential. The
company invests heavily in staff development and training is viewed as
important. The function is also responsible for managing change at store
level and it identifies staff and training requirements. It also
communicates to staff how the changes are going to take place and why
they are taking place. The function is also responsible for implementing
and maintaining the disciplinary procedure. It is the functions
responsibility to ensure that all staff are aware of its presence and content.
The function also handles grievances that might occur in the store with the
minimum fuss and disruption. One important role of the function is to be
aware of the Health and Safety at Work Act and ensure the safety of staff
and customers.
The Commercial Selling function is very large within a store because it is
the front line of the business. It is the sales area and therefore is
responsible for maximising sales performance. Staff are required to have
good product knowledge and be fully trained in customer service
expectations. Commercial selling also includes the Returns and Ordering
functions.
The Operations function is important because it provides all the behind
the scene support. For instance, it supports all areas of the Commercial
Selling function by moving stock from the warehouse to the shop-floor
when deliveries are made. It also deals with all the return stock. It also
runs all the in-house services such as the staff restaurant and staff shop
which offers products to staff at 25-50% less than cost price. These staff
do not come into customer contact that much. They tend to deal with inhouse staff but they still need to provide good customer service so that
staff remain motivated and good teamwork is ensured.

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The Visual Merchandising function has been formed because of the
importance of visual display to attract customers. The staff within the
function are charged with the responsibility of making the store appealing
so that customers are inspired to try on and purchase garments. The
layout of the store has to be such that disabled shoppers are not
disadvantaged and the garments are easy to find. Signage is an important
part of this functions responsibility. The store layouts are changed on the
recommendations of head office. There is a mock store in London which is
charged with the responsibility of trying out new layouts and researching
them for effectiveness.
*****-*****
The functions need to support each other in order for the store to perform
efficiently and effectively. For instance, the Operations Department works
behind the scenes. It is responsible for providing the staff shop and
canteen. It also ensures the correct materials are available for the
Commercial Department such as carrier bags, stationery, clothes rails etc.
The Operations function also unloads the stock and places it in the
warehouse in readiness for the Commercial function.
The HR team provides staffing information for the Operations and the
Commercial Selling teams. They also provide the necessary training for all
functions and ensure the training meets the specific needs of each
function. They also recruit staff for the store and discuss manpower
requirements with the manager of each function. The HR function also
coordinates the hours worked for each member of staff and ensures they
are paid.
The Commercial Selling team is responsible for serving the external
customer but they work very closely with the VM team to ensure the
layouts are attractive and practical. They also work with Operations.
Job Roles
The focus of M&S since its disastrous period in
1998 has been to regain customers and the
company has once again become people focused
it is now caring for staff [internal customers] as
well for the external customers who come into the
store. The organisation structure that exists now
represents a loss in some levels of hierarchy and
a reduction in bureaucracy. Some 1000 managers
were made redundant [mainly through natural wastage]. This has led to
an improvement in communication and speed of process. Staff are now
being empowered to make their own decisions and the change is being
driven from the bottom up. For example, if authorisation is required on a
switch card, the supervisor used to be called over. This was considered a
waste of time and means the customer has to wait. Sales Advisers were
empowered to do this function which gives them more responsibility and
improves customer response time.
The Directors of the company are based in Head Office in London and
there is one for each overall section [www.marksandspencer.co.uk for
information/details on board of directors].

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The current job roles in store are as follows:

HR Function:
HR Manager
Overall responsibility for the function but also
deals with disciplinary and grievance
procedures.
Performance Manager
Concerned with the provision of training
solutions
to meet shortfalls in employee skills.
Resource Manager
Responsible for the recruitment of personnel at
all
levels within the region. Particularly busy at the
moment due to the recruitment of seasonal
staff.
Policy Manager
Responsible for ensuring all company policies
are
carried out in-store. Has particular responsibility
for
implementation of health and safety.
HR Admin Manager
Deals with the administration of staff matters
such
as payroll and personal details.
HR Advisor
Assists management by data-entering
information
and keeping records/files up-to-date.
Commercial Selling:
Store Manager

There is one for each area Food, Menswear,

Ladieswear, and Home. This person takes

overall
Commercial Manager
responsible

control for his/her specific function.

There is one for each area and s/he is
for store change. The layout of the store has to

be

Section Manager

Advisor
types

constantly changed to meet sales patterns,

seasonal trends etc. S/he will have to liaise with
VM.
There is one for the service and tilling in each
section who ensures that there are enough staff
and tills to meet changes in demand throughout
the day. There is also one for stock and selling
and this person will ensure that stocks for the
section are kept as high as possible.
This is the shop assistant and there are two
- some just work on the tills, others ensure stock

is
displayed and work on returns or ordering
points. They need to have good product knowledge because they are working on the shop
floor and have direct contact with customers.
Operations:

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Commercial Manager
Store Operations
Store Services Manager

Staff Services Manager

Facilities Advisor
Staff Services Adviser
Store Services Adviser

Overall responsibility for the section.

Ensures stock reaches the various sections when
delivered and liaises with staff in the commercial
function to find out when and where they
want the stock. Also, oversees collection of
money from tills and cash points and liaises with
security company. Also ensures the correct
point of sale material is available to match
store layouts.
Responsible for the staff canteen and staff
shop.
Deals with outside contractors.
Works in the staff canteen/shop.
Deals with the cash office and ensures money
is collected at regular times. Also removes out

of
date shop from shelves.
VM:
Store VM Manager
VM Section Manager
VM Advisor
plan

Overall responsibility for the function. Receives

instructions from head office and ensures they
are carried out in-store.
Responsible for the VM within the section. Looks
for accessory opportunities and links with other
sections to do this.
Carries out the instructions as laid down in the
for each section.
*****-*****

The HR function has been changed to have specialists for each of the
important functions and this ensures that staff receive a better service.
This ensures that M&S can meet its objectives of investing in staff so that
the level of service will improve through improved motivation and job
satisfaction. Before, the staff in personnel had to be experts in all areas
and, therefore, the level of provision was patchy. Now, there is increased
investment in training and the recruitment and selection process has just
been overhauled.
The creation of the VM department has enhanced the stores and shoppers
are now returning to the store.
The Store Operations function is an excellent back up provision and is
working very well. Much of the finance has disappeared to region due to
computerisation and it is the job of this function to ensure that point of
sales are provided with sufficient cash and to collect the money at
different times throughout the day.
In some stores there has been a problem with the size of the Section
Managers span of control and it means the post-holder feels unable to do
the job as well as s/he would like. This can lead to a loss of staff morale.
Also, the subordinates where the span of control is wide can feel

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demotivated because of lack of support. For instance, some Section
Managers find it difficult to carry out effective performance management
leading to staff demotivation.
At the moment, the promotion routes for sales advisers are limited and in
the Commercial function, a sales advisor has to be working full-time to be
appointed Section Manager. The decision whether or not a sales advisor is
promoted is made by the Section Manager, based on the appraisal review.
The company at the moment is working in a decentralised fashion with
advisers being encouraged to share in the decision-making and objective
setting at store level. There is a Business Involvement Group [BIG] and
this is like a staff council where a representative is selected by each
function to sit at committee meetings which are held on a regular basis.
This works well because it means that sales advisors as well as
management are able to have a say in the decision-making.
However, on average about 50% of staff working in stores tend to have
worked for the company for at least 15 years. This means that they are
set in their ways and some are reluctant to accept change.
Recruitment
M&S has just introduced TALENT PHILOSOPHY which is
ensuring the right person is placed in the right job. ALL
perspective candidates undertake an online questionnaire
or telephone interview as the first stage of the
recruitment process. Candidates need to pass this to
ensure that they have the right personality and mindset
to fit in with the ethos of the company. The questionnaire
has been devised by an external company and has led to
a lower staff turnover and higher rate of productivity. This has been
measured by performance at appraisal review.
INTERNAL vacancies are advertised on the:
staff noticeboard
company intranet [although a lot of shop floor staff still do not use
this]
monthly newsletter
EXTERNAL vacancies are advertised via:
newspapers for local jobs it will be in the local newspaper such as
the
Bristol Evening Post on Wednesday night. For higher level jobs it
will
appear in national newspapers such as The Times or The Guardian.

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company website this is now extensively used and there is a

Careers
hyperlink on the Home Page.
careers stall instore this is mainly used for the Christmas
temporary
staff that are required each year to accommodate the higher level
of
sales and longer working hours. Staff are recruited on a temporary
basis.
shopping centre website a lot of stores are now located in malls
and shopping centres which have their own websites with vacancy
lists.
graduate vacancies can be accessed via the website during a
certain window of opportunity each year. Also the company
participates in the annual milk round of graduate recruitment fairs.
new store the company uses the job centre, places a large
advertisement in the paper and places a billboard outside the
intended site giving details how and when to apply.
Appointment of staff
The first stage is the TALENT PHILOSOPHY which is the on-line or
telephone questionnaire. This is designed to check candidates have the
right personality and disposition to join the company. This is all managed
by one central recruitment centre based in the north-west of the country.
If successful the candidate is then invited to a STORE INTERVIEW where
they are given a tour of the store and an interview. All candidates are
asked the same questions to ensure equal opportunities and are asked to
take part in a JOB RELATED activity:
VM
Sales
in
HR

given a model and a range of clothes and asked to dress and

accessorise it for a particular occasion.
approach two customers on the sales floor and engage them
conversation, or undertake a role play.
situational analysis.

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The offer is made by a designated date and is subject to two references
being taken up. If the references prove positive then there is a
confirmation of the offer with a start date and details of the induction
programme which all staff go on.
For graduate recruitment courses, the process is a little different:
The first stage is the TALENT PHILOSOPHY questionnaire and if successful
there is an invitation to the Training Academy which is in Swindon.
Candidates are asked to arrive the evening before for dinner with M&S
staff ad other candidates.
On the following day the candidates [normally between 6-8] will undertake
four activities on a carousel basis and they are:
presentation
goldfish bowl discussion
role play
interview [one hour long]
Candidates are informed whether or not they are successful within three
working days and the offer is made subject to two references and a
medical examination. The formal offer is then made.
[refer to the interview notes from Dave Allinson which you have in your
classwork folder for general overview of the graduate recruitment
programme].
Training
M&S has formed a Retail Academy which is responsible for delivering
training and development programmes for staff at all levels.
Induction programme:
This is now three days and is undertaken by EVERY employee before they
start work at the company. It means that staff feel more confident before
they start work and each course is run for between 5 to 15 people. The
three days encompasses a range of activities to encourage teambuilding
and an awareness of the companys ethos. There are the obligatory
sessions on the organisation structure and health and safety, and staff are
also measured for their uniforms to ensure a good fit. There are huge
benefits both to the company and to the employees of carrying out this
type of induction training. The newly recruited staff are aware of company
policies and what the companys aims are. They know what the company
is aiming for.
Whole staff training:
There is training for all staff when new initiatives are
launched but it is hard to train all staff at the same time
because of the stores being open seven days a week. At
the end of 2005, M&S employed Mary Grober [retail
motivationist] to run one-day long training sessions for 56,000 staff, from
directors to storeroom assistants. The company paid her 1 million plus
fee as part of a 10 million training initiative. The course was designed as
part of a company culture change and staff were given tips and advice on
how to treat customers. They were informed that successful sales people
should never use the words cant or unfortunately in a conversation and

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were given a list of hot tips and reminders how to provide excellent
customer service.
Specific training for specific needs:
The company has started using outside contractors to design training
programmes for specific areas of the business and these courses are
either run at head office or at Retail Academy. For instance, a series of
workshops are being run for staff who work in the money section of the
business. It is aimed at non-managerial staff to give them more
confidence in communicating with customers and developing more subtle
ways to get the potential customer to sign up for the product.
Coaches:
Coaches have started being appointed and these are customer advisors
who are given additional pay to train up to three other customer advisors.
For the additional money they are trained how to mentor and coach new
customer assistants and also to update them on new procedures. This
frees up time for the Section Managers so that they can oversee
performance reviews and ensure they are carried out really well. Also,
they have more time to actually manage the function in which they work
and this should increase motivation. It also provides an opportunity for
progression which did not exist beforehand.
Training on demand for line managers:
Managers are now able to access innovative and
engaging e-learning to support them with HR
and people issues. 96% of managers who have
used this approach recommend it to others and
consider it to be a cost-effective means of
providing engaging learning on demand.
Lead to Succeed:
The Group HR Director has launched a flagship development programme
which is known as Lead to Succeed. It targets the development of 300
most senior managers within the company and is designed to train the
next generation of leaders. The training involves coaching and business
simulation which is designed around some of the challenges M&S
experiences as an organisation.
Management training schemes:
These are available on an annual basis to graduates and internal
placements within the company. There are on average 150 vacancies
each year across sales, HR and ICT. The company accepts any graduate
discipline and candidates are offered top-notch training and development
through both formal and structured methods. All graduate trainees
receive a varied programme that includes a dedicated personal
development plan following a needs analysis and regular reviews.
Most join in a store-based role and are placed on a fast-track route into
senior level retail management. This means running a small store or a
whole department of a large one after the one year training programme
is completed. The HR programme is 18 months and offers the chance to
gain professional qualifications and build a successful, long-term HR
career.

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The company looks for people with drive and ambition to make the most
of opportunities on offer. M&S needs people who can match the energy,
vision and ideas that have kept the company at the forefront of the
industry. The starting salary ranges between 24,000 and 25,500.
[refer to the classwork notes interview with Dave Allinson for details of
the training programme]
Motivation
In the first half of 1998 M&Ss profits fell by
23% and the reason was a fall in the quality of
goods together with prices remaining the
same. It meant that customers were not
receiving value for money and stopped coming
to the store.
In store, the staff on the shop floor were
having to do the displays as well as collect the stock that was delivered to
the store this was taking them away from the sales floor and so there
was a fall in service. Staff started to feel stress and there was an increase
in the number of customer complaints. This coincided with an increase in
the absenteeism rate and turnover ratio staff were leaving the store to
work elsewhere such as Next which was becoming a presence on the High
Street. [Herzberg: lack of working conditions, hygiene factors; Maslow,
lack of physiological needs].
To cut back on expenses, staff salaries became lower than other retailers
and this led to staff becoming dissatisfied and was another contributor to
a higher staff turnover rate. The perks that used to be unique to M&S staff
were now provided by other retailers but the competition also offered
more money. [Taylor: satisfactory wage not being paid; Herzberg, lack of
salary and benefits, hygiene factors; Maslow, lack of physiological needs].
The opportunity to achieve qualifications such as NVQs were withdrawn
and were not replaced with other training opportunities. Staff felt just the
graduates [who were being taken on as future management] were being
invested in by the company. There were little advancement opportunities
for staff within the stores who were not graduates. [Herzberg: lack of
hygiene factors and intrinsic factors such as achievement and recognition;
Maslow, no opportunity to develop self-esteem and self-actualisation]
Staff were not given the opportunity to contribute to decisions policy
decisions were made by Head or Regional Offices and staff had to accept
and abide by them CENTRALISED MANAGEMENT WHICH DEMONSTRATED
THEORY X MANAGEMENT STYLE.
Putting things right
Organisation Structure
The stores organisation structure was changed with two
new functions being introduced to help staff in Commercial
Selling. This means that staff can now stay on the shop floor
and concentrate on the customer which improves the level fo

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service. [Maslow, safety needs; Herzberg, office life and working
conditions, hygiene factors].
Coaching
A new principle of coaching is being introduced whereby a sales assistant
is given the opportunity to mentor three other sales assistants and s/he is
responsible for their development plan. In accordance with
recommendations by the Institute of Management, managers will not have
a span of control of greater than 20. [introducing intrinsic opportunities
such as Maslow, self-esteem and actualisation; Herzbergs motivators].
Improved HR function
Staff in the HR function are now allocated specific roles and they are
qualified within that particular aspect. This means the support for staff at
store level is much better. The legal and moral responsibilities to ensure
the health, safety and wellbeing of employees as well as creating a fair,
equitable and diverse working environment can now be achieved.
[Maslow, safety needs; Herzberg, office life and working conditions,
hygiene factors].
Talent Philosophy
The new concept is to have the right person in the right job [TALENT
PHILOSOPHY] and the company is keen to promote ambition the ethos
for the staff is, work hard and you will get promoted. [McGregor Y and
also opportunity for intrinsic motivation recognised by Maslow and
Herzberg].
Staff Survey
The company has introduced a staff survey that is carried out twice a year.
This provides staff with the opportunity to have their say and through this,
the company has appreciated the need to have more staff levels within a
store and higher levels of advisors to provide excellent service. [McGregor
Y; Herzberg responsibility motivators [intrinsic motivation]; Maslow social
needs]
Business Involvement Group
A Business Involvement Group [BIG] has been set up in each store and it is
a staff council with elected representatives from each of the stores
functions. Meetings are held on a regular basis so that reps can express
what their functions feel about certain changes or policies that might be
introduced. This is working well because it means that sales advisors as
well as management are able to have a say in the decision-making.
[DECENTRALISED MANAGEMENT] [McGregor Y; Maslow self-esteem;
Herzberg job interest motivators].
Occupational Health
The companys investment in staff is heavily featured in its Corporate
Social Responsibility statement and it shows its commitment to investing
in staff. One of the areas that it is developing is occupational health.
The company is extending its trials to provide employees with free, fast
referral to physiotherapists, osteopaths and chiropractors, and access to
confidential telephone advice and counselling to help them with physical
and mental health problems which affect their performance at work. In

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the stores that have been trialled absence has fallen by 8%. [Maslow;
safety and belonging].
Other motivation strategies used by the company include:

subsidised
beauty treatment

bonus paid every

quarter

manager of the
month
share scheme

thank you
award

advisor of the
month
discount shop

team briefings

External Influences
Environment
M&S has set an overall corporate aim to be the worlds most
sustainable retailer by 2015. The company has now added 80 major new
commitments under its eco and ethical plan, known as Plan A. They
include:

converting all 2.7bn individual M&S food, clothing and home items
sold every year into Plan A products.
encouraging 21m M&S customers to live a more sustainable
lifestyle.
working with M&S suppliers to provide training and education
programmes
helping suppliers create 200 Plan A factories with either ethical or
environmental features and encouraging 10,000 farmers who
produce fresh foods to join the sustainable agricultural programme.

The company has converted all its coffee and tea to Fairtrade because
consumers have conveyed they are concerned about how products are
made and want to make fair-trade part of their retail habit. A survey
conducted by the store found that consumers are becoming more ethically
aware with 78% saying they would like to know more about the way goods
are made including the conditions in the factories and where they come
from.
Equal Opportunities and Diversity
The company is committed to an active Equal Opportunities policy which
covers recruitment and selection procedures as well as training,
development, appraisal, promotion opportunities and retirement.
The company promotes an environment free from discrimination,
harassment and victimisation and works hard to ensure everyone is

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offered equality of opportunity to achieve their full potential. All decisions
that are made relating to employment practices are objective, free from
bias and based solely upon work criteria and individual merit.
The company has devised a policy which promotes a working environment
free from discrimination, harassment and victimisation on the basis of:
gender, sexual orientation, marital or civil partnership status,
gender
reassignment
race, colour, nationality, ethnic or national origin
hours of work
religious or political beliefs
disability
age
The company has introduced and extended flexible working practices,
including fully paid maternity leave, part-time working, homeworking,
parental leave, child break dependency leave/break and term-time
working, and has taken an active role in increasing the opportunities
available to women, working closely with external organisations including
Opportunity Now.
80% of the total workforce is female, a figure that has been constant for
several years. The number of women represented in senior management
has, however, grown and is now over 50%. Female representation
accounts for 25% of the plc board and the UK retail board is 36% female.
Consumer Protection
The company is very aware of consumer protection law but in terms of
sales and revenue, it is not surprising that on some occasions it has fallen
foul of legislative requirements.
In 2003 the company was rapped over the &more launch. The &more card
was announced in a blaze of publicity by the chain, which said that it
planned to upgrade all its current store card holders to the new system.
This, in theory, is a benefit, as the new card not only offers a lower rate of
interest than the store card but it is also a loyalty card, allowing shoppers
the chance to earn points every time they use it. However, in practice,
automatically changing the store card for a credit card contravenes the UK
Consumer Credit Act, prompting the OFT to take action against the retailer.
It is an offence to send a credit token to a consumer unless it has been
requested in writing and the company was obliged to change its scheme.
In 2005 MEP Robert Kilroy-Silk claimed under the Unfair
Commercial Practices Directive that M&S misled women
shoppers with mirrors that make them look slimmer in its
clothes! The company was mystified by the claim stating
that it provides normal mirrors with absolutely no
distortion and the claim was dropped by the EU
Commissioner for Consumer Protection.
Trade Unions
Workers at M&S are members of GMB and Usdaw but there has not been
much union activity throughout the 125 year history of the company. In

Page 16
January 2009 the company faced criticism that is was to cut over 1200
jobs. The unions displayed concern that managers in some cases, had
allegedly chosen who was going to be made redundant and employees
learnt of their fate in the media. This is against the law and ignores the
employment rights of employees. The company had to enter a 90 day
consultation with their employees before selecting those to be made
redundant. A meeting was held with M&S management and many of the
jobs to be lost [due to the closure of some Simply Food stores] could be
made through natural wastage and the company reiterated that it would
indeed follow the 90 day procedure.
Just before the launch of BIG, employees voiced their concerns about
changes to their working conditions to retail union Usdaw. The union held
the first ever conference for members working in M&S and heard from long
serving staff that the companys new process wasnt addressing real
concerns about significant changes in terms and conditions. The
conference was not about knocking the company but pointing out hat an
independent consultation process was in the best commercial interests of
the company. The conference was a success for both the company and
the employees and as a result the BIG group was formed which allowed
employees to have their voice heard. This was an example of fruitful
dialogue between the employer and the union.
Questions from previous exam papers relating to case study material
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

Discuss the responsibilities that a manager in the business will have

[6 marks]
Analyse one non-profit objective that this business has set [4 marks]
Explain how the business you have chosen uses induction training
[6 marks]
Suggest how this business could develop by increasing the training
of its employees [4 marks]
Using one example, explain how the business you have chosen is
affected by the Trade Description Act [4 marks]
How does the business you have chosen use one of the motivational
theories to manage its staff? [6 marks]
Outline how the ownership of the business influences the way it
operates [4 marks]
Examine the role of the HR function in the business you have
chosen. [6 marks]
Describe the methods used by your chosen business to advertise its
vacancies [6 marks]
Using an example, explain any nationally recognised training
scheme used by this business [4 marks]
Examine how the business motivates its employees [4 marks]
Describe the main steps this business takes to apply consumer
protection legislation [6 marks]
Explain the role of the manager responsible for finance in the
business you have chosen [4 marks]
Discuss to what extent centralised management affects the day-today work at one branch of the business you have chosen. [6 marks]
Explain two common elements that would appear in any job
description from the business you have chosen. [6 marks]

Page 17
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.

32.
33.

Give an example of a person specification for a new member of staff

who has face-to-face dealings with customers in the business you
have chosen [4 marks].
How does this business retain its employees? [4 marks]
To what extent has this business been successful in dealing with a
local environmental issue?
Analyse why one financial objective, for the business you have
chosen, has been set [4 marks]
Name two different functions within the business. Discuss how
these two functions work together to contribute to the success of
the business you have chosen. [6 marks]
Evaluate the recruitment process in the business that you have
chosen [6 marks]
The three main principles for implementing the Investors in People
scheme are Plan, Do, Review. How did your chosen business
implement the IIP scheme? [4 marks]
Examine how one stakeholder in your chosen business influences
the way the business is run [4 marks]
Evaluate how the business you have chosen manages its fire safety
responsibilities [6 marks]
Give two reasons why this business will need to recruit staff, other
than because it may be growing [4 marks]
How does the ownership of this business make it operate in a
different way to Wellingley Council? [5 marks]
Discuss two ways in which the work of this business is influenced by
the need to avoid creating pollution [4 marks]
Evaluate the effect that pressure groups have on the work of this
business [6 marks]
State one responsibility of a manager, supervisor or employee in
your chosen business. Analyse how carrying out this responsibility
contributes to the success of the chosen business. [6 marks]
Select a job role in your chosen business. Examine two personal
qualities that would be looked for in a person carrying out this job
role. [4 marks]
The Employment Equality [Age] Regulations 2006 make it illegal for
employers to discriminate against employees, trainees or job
seekers because of their age. Analyse the impact of this law on
your chosen business. [6 marks]
How has your chosen business responded to two relevant pieces of
consumer protection legislation? [4 marks]
Discuss the effectiveness of your chosen business in retaining its
employees. [6 marks]