Marks & Spencer's

An analysis on HRM

Group Members 
Davis D Parakal ( 3357394)  Ehigiator, Osamudiamen (3314607)  Inu-Umoru, Zekeri (3362859)  Prandzioch, Aleksandra Teresa(2896971)  Abdullah M Almurabt , Sultan(3333929)  ANIM, Edmond(3378827)

Table of content 
History of Marks and Spencer  Problems after 90¶s  Mission  Vision statement and goals  Plan A  Customer perceptions  Corporate strategy  Plan Summary  Support of Human Resource Management  HRM Policies  SWOT Analysis  Mitigation Strategy  Fall & Rise Figures  Change Management  Conclusion


History of Marks and Spencer
‡ Marks and Spencer started as a stall by Michael Marks in Leeds Market in 1884. ‡ His philosophy is to sell durable merchandise at a moderate price ‡ Thomas Spencer joined the business in 1894 and became a joint partner of the company.. ‡ The company was involve in selling cloth, luxury and food production. ‡ M&S business become public limited company in 1926.


‡ They focused on By 1998, the business had almost 500 Marks & Spencer stores around the world.


Problems after 90 s
‡ Serious sales decline ‡ Autocratic style of leadership ‡ Lack of good employee management relationship ‡ Lack of good benchmarking strategy towards competitors ‡ Poor organizational structure has led to confusion at

management level



Providing new quality products in the areas of cloths, food, home and financial services Social revolution, by providing the working class with clothes fit for lords and food fit for kings. Delivering high quality goods Offering affordable price Receiving by customers good value for money






Vision statement
To be the standard against which others are measured
‡ benchmarking conducted by others companies in order

to implementing same or similar strategy into their business practice. ‡ competitors aspiration to gain the same level of quality as M&S

Organisational goals
increasing sales and market share in retailing
continuing differentiation strategy by delivering freshness, quality and innovation

becoming the world s most sustainable major retailer by 2015

ECO Plan

(Grayson et al,2008)

Plan A
Ppillars of Plan A: 1. 2. 3. 4. 5. 6. 7. Climate change Waste Natural Resources Fair Partneship Health and wellbeing Involving customers in Plan A Make Plan A how we do business
Products People Community

Objectives of the Plan A: ‡ reducing the amount of waste generated by factories and stores of Marks & Spencer ‡ protection of natural resources of the earth ‡ promotion of healthy lifestyles ‡ promoting and applying the principles of Fairtrade ‡ greater diversity of organic products ‡ creating new jobs ‡ counteract the adverse climate ‡ protection of animal rights
(Gyekye, 2010)



Plan A So Far
‡ 70 of the original 100 Plan A commitments have been reached ‡ Generated £50m additional profit ‡ Store energy efficiency improved by 19% (target of 35% by 2015) ‡ Carbon emissions from company operations cut by 8%. ‡ General Merchandise fleets has improved by 30% ‡ 400 million carrier bags use reduction ‡ Food waste reduced by 20%

Customer Perceptions 
Dayson (2009),M&S (2009)


Corporate Strategy revive M&S business- Project 2020- progress
Delivered £35 m of cost saving. Warehouse consolidation in progress. Opened Distribution Centre (DC)in Bradford. East Midlands site planning. Permission underway. Food depot voice picking rollout. International direct deliveries.

SAP implementation. POS software implementation. Store stock systems. Food forecasting pilot underway. HR transformation. Shop your way rollout. Re-launch of website


Dayson (2009),M&S (2009) & Gazette (2011)

Plan Summary 
Improving sales trend.  Profits ahead of last year.  Net cash generated, net debt reduced.  Good progress on 2020.  Outlook uncertain, but M&S well placed.
Dayson (2009),M&S (2009)

Human Resources Department Support of M&S 
Promote Working environment free from discrimination and harassment  Giving everyone equal treatment in all aspects of employment  Delivering a training program  Provision of Incentives  Rendering of Quality services to their customers  giving everyone equal treatment in all aspects of employment  Delivering a training program  Provision of Incentives  Rendering of Quality services to their customers


Guest( 1987), Mellah, Jackson and Sparks (2002)

Code of Ethics & HRM Policies
Maintaining highest standards of honesty and integrity to their customers, employee, shareholders and supplier ‡ Marking sure that their forms of communication are clear, honest and accurate ‡ Welcoming of their customers feedback in other to improve their services ‡ Committed to an active equal opportunities policy. ‡ Formation of business involvement group known as BIG constitution to enable the Employee to share their ideas ‡ Provision of occupational health services to the employee
M&S (2010)


Poole (1999)

Swot Analysis M&S Plc
Strengths Leadership in clothing has made M&S market leader in department stores Strong brand equity Highly effective Cooperate Social Responsibility Strategy Global expansion to foreign markets has reduced susceptibility to already mature UK market and strengthened international market Opportunities Online shopping continues to flourish in the UK and will enable M&S to increase revenues Weaknesses Declining sales in food offering and do not have the scale to compete with leading competitors in the UK Weak return on invested capital coupled with high pension and dept deficits M&S legacy stores and systems are a competitive disadvantage.

Threats Pension funds deficits will lead to constraint in the availability of money for other operations and expansions Price increase in clothing and VAT increases will lead to less spending by customers`


Making China and India a centre of attention can lead to expansion in two of the fastest growing markets M&S strong brand equity and high quality perception they enjoy will help place premium pricing in the dinning at home

Mitigation Strategy
Weakness to strength 
decentralized management approach cut or design store space to suit different demographics and also vary their range of products for the food offering sections sell both own labelled and branded goods (food and non-food) to drive sales conversion have a consistent store layouts to facilitate easy navigation and comfort for customers. revamp the HR and finance departments with new strategies in the payment of pension funds


Treats to opportunities 
Review its pricing strategy in order to attract a broad range of customers. New shares should be floated in the stock market to get more funds to run the company Anon (2010)

Fall & Rise Figures
The industrial organization indicate that management failing firms are the unfortunate victims of external circumstances and not imply management inefficiency

(Mellahi et al,2002)

Change Management


Key stage in the successful management of change: 1. Establishing a sense of urgency 2. Creating a guiding coalition 3. Developing a vision and strategy 4. Communicating the change vision 5. Empowering a broad base of people to take action 6. Generating short term wins 7. Consolidating gains and producing even more change 8. Anchoring (institutionalizing) the new approaches into the culture
(Kotter, 1996)

M&S Change management policies
‡ Emphasising the critical need for change ‡ Developing a Core Team Executives from (IT, Supply Chain,

Property, Marketing Store & Design)
‡ Provided a simple, accessible and operational guiding vision for

‡ Micromanagement : Top management involved in operational day to

day meetings
‡ Reduced and Commerce Retail B2C Mobilechanging strategic consultants for making plans simple

Mobile Service Mobile Multichannel Shopping M-Commerce Mobile Promotions Mobile Advertising

Recent Example : This change in organization made M&S easy to bring New marketing strategy :- Expanding traditional marketing methodology into digital marketing (SMS campaign & Social media marketing ) (Rippin, 2005)

Mobile CRM


Mobile Payment

Mobile Product Comparison

Mobile Shopping

Mobile Search

Mobile Location Search

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Issues Internal factors Management paradigm External factors Cheap productivity Findings & Recommendations Effective leadership Use of Scientific change management models Utilise technological advantages to the changing market Use of micromanagement in the changing phases new strategies in the payment of pension funds to avoid internal conflict

Centralized over reliable on management system Brand name Individual dependencies Reluctance to change technology advances

economy & society

Ann, R. (2005) Marks and Spencer waiting for the warrior: A case examination of the gendered nature of change management . Journal of Organizational Change Management 18 (6) 578 - 593 Guest, D. E. (1987) Human Resources Management and Industrial Relation . Journal of Management Studies 24(5), 503-521 Hendry, C., Pettigrew, A. (1986) The Practice of Strategic Human Resource Management . Personnel Review 15(5), 3-8 Kotter, J. (1996) Leading Change, Online book availability ( Marks and Spencer: How we do business Report 2010 [online] available from <> [11 March 2011] Gary (1999) Gyekye, L. (2010) Marks and Spencer's Plan A makes "good progress . Journal of Material Recycling Week [online] available from <> [18 March 2011] Grayson, D., Jin, Z., Lemon, M., Rodriquez, M.A., Slaughter, S., and Tay, S. (2008) A new mindset for corporate sustainability [online] available from <> [17 March 2011] Grundy, T. (2004) Gurus on Business Strategy. London: Thorogood [online] available from <> [18 March 2011]



Lan Dayson (2009/10). Group Finance and Operations Director Fully year results [online] available from: >. [16th March, 2011]. M&S (2009). Quality worth every penny Annual report and financial statements [online] available from < 403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23>. [16th March, 2011]. Marks and Spencer (2010) M & S Code of Ethics [online] available from e/code_of_ethics [27 March 2011] Mellahi, K., Jackson,P., and Sparks,L. (2002), An Exploratory Study into Failure in Successful Organizations: The Case of Marks Spencer, British Journal of Management Rippin, A. (2005) Marks and Spencer waiting for a warrior ,A case examination of gendered nature of change management, Journal of organizational change management Marks & Spenser ( 2005) Process improvement at marks & Spenser, IT Publication Annual Report [online] available from <> [24 March 2011] Financial Report [online] available from <> [25 March 2011] Annual Report and Financial Statement [online] available from < 7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23> [25 March 2011]

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