ByDivya Gomber Priyata Bhakat Deepak Verma Vidushi Gupta Amrit Kumar Haaris Farooqui Sagar Saxena Shantanu

Khare

Mark & Spencer: UKs largest retail firm in more than 700 locations across 34 countries. Company involve in selling clothing, the food, home furnishing, footwear etc. This case talks about the steps taken to restore M&S as a retail power considering the clothes, the food and the financial services.

Started by Mark Simon in1882 Control of merchandise generated by the central organization that was

Acutely sensitive to consumer demand Could adjust to the flow from factories to the stores as required

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 of SKUs are small o Clothing were fashionable but not high fashion o Food line comprised of perishables of highest quality

Formula delivered on value premise Partnership with suppliers Partnership with employees Partnership with customers
By 1975 M&S was on every High Street of every major English City.

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

Top Management Re-organization failed

Asian Crisis and currency appreciation Heavy Investments

Changing consumer interests

New strategy adopted by competitors

In-house fighting

Multiple Layoffs
Poor Corporate Culture

Focus more on brand rather than product

On shore and offshore Best value

Sales went off the cliff

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 Director Marketing Cherie Lafland Director Communication David Norgrove Executive Director Strategy & International Gary Executive Asst. to Luc Vandevalde Robert Colvill Executive Director CFO

Graham Oakley Co. Secretary

Richard Gillies Director of Change

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 Yusuf Creative Director

Richard Wolff Retail Director International

Barry Stevenson Retail Director UK Stores

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.

CUBE 1
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

CUBE 1
(Recovery plan) 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

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

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 brand like ZARA also started evolving at a remarkable speed.

Yasmin Yusuf was appointed as creative director to handle the responsibility 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.

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.

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.

Employee Engagement

Theme 3
Better Efficiency & Productivity

Cube 2

Theme 1 Good better Best

Theme 2 Products to experience