Marks & SpencerGroup 11

Pratik Sadhu(2013B32)Mohit Singhal(2013B28)

Shekhar Dahiya(2013B49)Siddharth Bhardawaj(2013B69)

Abhishek Sareen(2013B02)Adrian Goveia(2013B29)

Prahalad Ekambaram(2013B38)

M & S

CLOTHING

FOOD

FINANCIAL SERVICE

HOME

Overview of M & S

The Problems Identified Leadership Crisis

◦ Senior Directors replaced by promoted managers◦ Leadership plan disrupted by the Queen’s Honours List

Asian Financial Crisis◦ Retail sales dropped and new competition in women’s

clothing◦ Competitors’ goods were cheaper and of better quality

Non-improving financials◦ No improvement in clothing revenues◦ Series of layoffs

Food stores not favourably located Sourcing

◦ Competitors using cheaper raw materials, sourced offshore

Political UK has stable political scenario with no serious threat. The tax system in the United Kingdom is among the most

attractive in the developed world with low corporate and personal taxes.

UK regulation of property constrained development of further out-of-town.

ECONOMIC High Interest Rate Appreciation of Pound against European

currencies

P.E.S.T Analysis

Socio-cultural The common UK consumer tends to be loyal

to a particular brand. Demand high quality at competitive pricing.

Technological M & S Charge card. Impact of IT.

P.E.S.T Analysis(contd)

STRENGTH Diversified business portfolio

High Trust with Customers, Supplier, employees by offering great values.

Strong Logistics & Dependable suppliers.

Strong brand equity

Direct Inspection & feed back by top managers.

S.W.O.T Analysis.

Sourced goods from onshore which led to higher cost.

Management was not stable. Brand was not popular in North America. Slower time to market.

Weakness

Growing European & Asian Business. Introduction of charge cards can provide the insights on

buying pattern of customers.

Opportunities

Unstable Asian Market. Rise of Pound against European currencies. Increase sale of Consumer electronics which

became a direct competitor. Competitors offering high quality, greater

variety at cheaper rates. Unwise Acquisition decision.

Threat

Leadership Turnaround◦ Leadership team was reconstituted ◦ Couple of striking and unique appointments◦ UK Retail team was being built

Three point program◦ Total focus on UK Retail

Recovery plan for clothing Expansion in growing areas like food, home & Beauty Acceleration of store renewal program More intensive use of space 100% own-brand policy To design and supply a collection for more fashion-conscious women Restructuring the supply base Sub-branding in clothing to reflect more segmented lifestyle of its

customers◦ Program of value realization◦ Return of 2 billion pounds to shareholders

RECOVERY STRATEGY

Strategy- Focus on UK Retail and Financial Services- Realize value- Capital Restructuring- Long term future GrowthPlatform for exploitation of unique strengths

Vision, Mission, Values- Quality, Value, Service, Innovation and Trust

Unique Strengths- 100% own brand - Command of Supply Chain- Economies of Scale-Focus on Superior Quality & Innovation

Ways of Working

- Customer centric- Team work- Good incentivizing strategy -Individual Ownership

CUBE 1

Other Initiatives Taken for changes in design & sourcing, better product, lower cost

and faster TTM Zip (For children’s line)

◦ Eliminating duplication of cost◦ Achieving faster TTM

Simply Food◦ Convenience format located in high customer flow areas◦ Stores targeted at two segments◦ 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

CUBE 2

Strategies- Regain dominance in clothing & specialty food- Build unique customer relationships-To meet changing customer needs by shaping store location & product offer

Ways of Working

- Think Customer- Be passionate about product- Be one team- Be honest, confident, listen and learn

Customers- Aspirational Quality- At accessible prices- Unrivaled choice- Home store to dream of- Simple and rewarding financial solutions

Values- Quality-Value- Service- Innovation- Trust

Unique Strengths

- 100% own brand- Command of Supply Chain- Scale & Authority- Focus on Superior quality & innovation- Assisted Self selection

A Great Place to Work

- Clear how we each make a difference- Build our strengths & develop our skills- Work-Life balance- Recognize & Respect a job well done- Be rewarded for superior results

THANKYOU!

Questions?