Mark’s & Spencer

A Case Study

Presented to

Ms. Rosalinda Lacerona

University of the East

By

Saludaga , Joanna Diane T.

History of Mark & Spencer

Marks & Spencer Group plc (also known as M&S) is a major British multinational

retailer headquartered in Westminster, London that specialises in selling high quality

clothing, home products and food products. It is listed on the London Stock

Exchange and is a constituent of the FTSE 100 Index.

EARLY 1884’S

In 1884, Michael Marks opened his first penny bazaar in Leeds; he went into

partnership with Tom Spencer in 1894, and the department store known as M&S was

born. The M&S Company archive based at the University of Leeds is where the M&S of

today takes inspiration from its past.

In 1904 Marks & Spencer opened their first shop in a covered arcade in Leeds. In the

1920s we adopted the revolutionary policy of buying directly from suppliers. In 1926

Marks and Spencer Limited became a public company. In 1930 the flagship Marble

Arch store was opened. In 1931 a food department was introduced, selling produce and

canned goods. In 1933 a staff welfare service was set up to provide pensions,

subsidised staff canteens, health & dental services, hairdressing and even camping

holidays! In 1934 we were the first British retailer to set up its own research laboratory

to pioneer new fabrics. In 1948 M&S launched its own Food Technology department to

work closely with suppliers, producers and farmers. In 1954 the research lab undertook

the first ever systematic survey of women’s leg sizes, to create a new and improved

sizing system for stockings. The same year saw M&S’s “Operation Simplification”, which
reduced internal paperwork by 25million items per year. In 1974 Indian and Chinese

foods were introduced. In 1975 the first stores opened in continental Europe in France

and Belgium. In 1985 our Charge card was launched. In 1986 we opened our first edge

of town store at the Metro centre, Gateshead. In 1999 online shopping was introduced

via our website. In 2001 the first Simply Food stores opened in Surbiton and

Twickenham and the Per Unna range, designed by George Davis, was launched. In

2002 the Blue Harbour men’s range was launched, and the Limited Collection launched

the following year. In May 2004 Stuart Rose was appointed Chief Executive of Marks &

Spencer. He became Executive Chairman in 2008. In November 2009 it was

announced that Marc Bolland, then chief executive of Wm Morrison, would be the new

Chief Executive of Marks & Spencer.

Summary/Abstract:

Marks & Spencer is one the biggest British multinational retail company. The company

is mostly popular for products, such as, food, home and clothing which it sells through

its own stores, franchisee and partnership and online. Organizational governance at

Marks and Spencer may be discussed in the main four areas, such as, organizational

structure, leadership, managing the financial aspects, performance monitoring, and,

managing human resources. Having turned in record profits for 1998 and accelerated its

global expansion plans, things suddenly went horribly wrong for the retailer. As of 2017,

the company reported it’s intention to become more customer- and partner focused,

while promoting sustainable profit and growth overseas in a capital-light way. Towards
this target, the company reported that the overseas franchisees have made a profit 81.9

million pounds. This case throws light on several interesting facts which led to the

growth and expansion and then downfall of the company, particularly, its foray into the

internationalization process to make its footprint, globally.

Mission:

“Our plan is to grow M&S into a world class retailer that customer focused, fast moving

and flexible. We work hard to ensure we offer only the highest quality products, services

and shopping environments in all our stores.”

Vision:

“Continue to improve quality product and services and to overcome challenges,

continuously improve the sustainability of our sourcing and ultimately achieve our

mission to become more successful.”

Corporate Social Responsibility:

 CHARITY AND COMMUNITY FUNDING DONATIONS. Donations to charitable

organizations are done through the M&S local stores. They each have a small,

limited budget and focus their support towards issues that are important to their

local community. .

 CLOTHING AND EQUIPMENT. Centrally it donates returned clothing and

business surplus to the charity Newlife. Newlife funds medical research, nurse

support and awareness campaigns and vital equipment for disabled and ill

children. M&S donates returned clothing and business surplus to them and the
 money raised from the sale and recycling of the garments directly funds 400

pieces of equipment for disabled children each year.

 SHELTER. Donations of clothing samples are sent to Shelter; they are one of the

charities to support homeless. Occasionally M&S stores may donate unwanted

sales floor fittings or garments taken back as goodwill exchanges to local charity

shops.

 FOOD. Marks & Spencer's aims to donate their date-expired food to charitable

organizations. The first choice to receive the donations is Fare Share, a

community food network that redistributes surplus food from the food industry to

people.

 FUNDRAISING. M&S also allows fundraising to take place in their store sales

floors only when it is part of a corporate campaign for one of their charity

partners, for example Breakthrough Breast Cancer.

 MAJOR DISASTER. M&S always consider the real needs, the requests from its

customers and employees and whether the disaster has occurred in a region of

the world where they have strong links either through the stores, offices or

suppliers. M&S decides what it will do for each major disaster on an individual

basis.

 PEOPLE. To attract and retain the best talent in the industry, they have to

demonstrate each day that M&S is a good employer, committed to making all

their people feel valued and providing them with career opportunities and quality

training.
 RECRUITMENT AND RETENTION. They can offer graduates a fast track into

management and last year received a record 8,500 applications in just over two

months. Each year they employ between 150 and 200 graduates and business

placement programme undergraduates for positions in retail, food technology,

design, HR, buying, IT and other specialist roles.

 TRAINING AND DEVELOPMENT. M&S needs to train people thoroughly to do

their jobs, but also want to retain their skills and experience by giving them real

opportunities to plan and build a career with Marks & Spencer. Marks & Spencer

has defined career paths in place for many of its people, including Customer

Assistants and store management.

 EMPLOYEE’S BENEFITS. They are working hard to help their people prevent

fire, health and safety related incidents, but also to report them if they happen.

This year, they have completed further training for all the Fire, Health & Safety

officers in their stores and offices.

 DIVERSITY. Their store teams and workforces across the UK generally reflect

national diversity averages. M&S regularly review their policies and procedures

to make sure they comply with legislation.

 ETHICAL TRADING. Marks & Spencer has strong trading relationships across

the world. It is a secular organization embracing all cultures, nationalities, races

and religions. It doesn't supports or aligns to any countries, nations, states,

Governments, political parties or religious bodies and this approach is applied

consistently to sourcing all of their products.

I. Statement of the Objective/s

The objective of this case study is to perform the critical evaluation on

customer’s satisfaction for services, to increase sales and profitability through

continuous innovation and evaluation of effectiveness of the corporate social

responsibility carried out by Marks and Spencer.

II. Central Problem

The growing competition and threats from entry of new rivals, substitutes

and Contemporary style of clothing and aging customers. The expensive

products of Mark’s & Spencer Plc.

III. Areas of Consideration

STRENGTHS

 High recognition of the brand

 Wide variety of products

 Large number of stores and outlets

 Popular designer brands

 Private labels

 Innovations

 Diversity
WEAKNESSES

 Bad publicity as non trendy store

 Manual working increases the cost

 Customer satisfaction

 Supply Chain Scalability

OPPORTUNITIES

 Internalization- increasing global presence

 Initiating online shopping

 Growth areas home food and beauty

 Consumers more prepared to purchase a wider variety of products from one

source.

 E-commerce

 E-business

THREATS

 Local and International Competition

 Change in political and legal system in country

 Prior inability to adapt customer needs

IV. Alternative Courses of Action.

1. Market development and Market Expansion.

Advantages:

 The visibility of the business brand will increase.

 Sales increases when more customers are exposed to a business.

 There is actually less overall competition.

 Generates more sales and profits.

 Influence market price.

 Reach new customers or markets.

 Increase your resources or stocks.

Disadvantages:

 It creates timing issues.

 Currency fluctuations can completely estimates profits.

 There is no way to ignore local politics.

 Loss of control.

 Compromised quality.

2. Glocalization of Business.

Advantages:

 Acceptability of ideas of employees

 Employment

 Product Quality

 Cheaper prices
  Free movement of capital

 International trade

Disadvantages:

 Environmental Degradation

 Disparity

 Cut-throat competition

 Monopoly

3. Give workers more incentives or rewards.

Advantages:

 It will motivate the workers to perform better give their best performance

 It allows employees to feel appreciated for all their hard work

 It can make workers happy that will maintain his higher productivity levels

 It helps employee to align workers to a company overall mission statement

and business goals.

Disadvantages:

 It will be more costly to incentives workers.

 It can create an environment where favouritism is perceived

 It can lead to tension and dispute between workers.

 It may create a sense of entitlement.

4. New Trends of Quality products.

Advantages:

 It creates an innovation.

 It will ensure that the product is ready for distribution

 It helps to drive a higher value proposition

 It will help take care of the equipment.

Disadvantages:

 It will cost more to apply better quality control

 It can be easy to set unrealistic expectation for a product

 Product testing can result in a failed idea

5. Continuous improvement of business

Advantages:

 Efficiency

 Engagement of employees

 Customer satisfaction

 Effectiveness of business system

Disadvantages:

 Incremental improvement

 Stifled innovation

 Inadequate implementation
V. Recommendation

I therefore conclude that Mark’s & Spencer group plc needs to improve the business as

competitors are well maintaining the business in the global scenario by using

promotional tools and technologies. M & S should provide innovative services to the

customers by using latest technologies in the business sector through e-commerce and

e-business. To maintain their high position they should improve its procedures on its

inbound logistics, operations, suppliers, store designing and layout. It is recommend for

Mark’s and Spencer to consider purchasing supplies from overseas to save cost so as

to provide customer product and less prices. Mark’s and Spencer management should

eliminate delay in decision making and use digital manufacturing system. Lastly M & S

needs to hire perfect, innovative, punctual, honest and trustworthy personnel.

VI. Plan of Action

 Employee engagement and learning development.

 Listen to stakeholders and work collaboratively with them.

 Engage w/ Customers and stakeholder reflects the relative importance of their

concerns and preferences.

 Apply and improve your quality products and services.

 Strengthening the brand through creation and protection of intellectual property.

 Maintaining our channels and supply chain infrastructure to meet customer

demands.

 Sourcing responsibly and using natural resource efficiently.

VII. Potential Problems

 What if the Mark’s and Spencer are less expensive?

 What if costumer of Mark’s and Spencer complaints about the items?

 What if the Mark’s and Spencer have a bad customer services?.

VIII. Contingency Plan

 If the Quality of products in Mark’s and Spencer are less expensive. People

should know the value of its products maybe some of the items are old or undone

having of this can lead to disappointment or loss of money of personnel.

 Show you’re concerned to them and apologize for the result of the products

thanks the customer for bringing the issue to your attention and give your best to

have good quality products.

 Some of customers will not buy of their product. They should hire a great and

well trained people. Give them a free seminar about relationship with others in

business organizations.