Marks and Spencers - The Phoenix Rises

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Marks and Spencers - The Phoenix Rises

  1. 1. Marks & Spencer The Phoenix Rises Ishpreet Singh – 12P139 Karan Jaidka – 12P141 Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143 Manav Gupta – 12P146 Vikas Jain – 12P178 Group 1 – Strategic Management – II PGPM 2012-14
  2. 2. 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
  3. 3. Steps taken to Revive Growth  Leadership Turnaround  Leadership team was reconstituted with Luc Vandevelde taking the helm  Team building Activities  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
  4. 4. Strategy - 100% focus on UK Retail and Financial Services - Realize value - Capital Restructuring - Platform for exploitation of unique strengths Values - Quality, Value, Service, Innovation and Trust Unique Strengths - 100% own brand (Per Una) - Command of Supply Chain (Faster TTM) - Economies of Scale - Assisted Self-selection Ways of Working - Customer centric - Team working - Good incentivizing strategy CUBE 1
  5. 5. 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
  6. 6. CUBE 2 Strategies - Translating scale & authority into superior quality, value and appeal - Build unique customer relationships Ways of Working - Think Customer - Be passionate about product - Be one team - Be honest, confident, listen and learn - Working smartly and using technology to work better Their 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
  7. 7. The Road Ahead… • Future strategy focused on eliminating competition by:- – Trying to achieve the peak productivity – Speed to the market – Segmenting the market based on consumer needs – Promoting CSR activities to add to the value chain – Moving from products to creating experience and lifestyle – Improve efficiency and productivity

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