Marks and spencer


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Marks and spencer

  1. 1. Marks & Spencers An analysis on HRM
  2. 2. 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)
  3. 3. 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 AnalysisZekeri  Mitigation Strategy  Fall & Rise Figures  Change Management  Conclusion
  4. 4. 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 &Zekeri Spencer stores around the world. (Gary,1999)
  5. 5. 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 levelZekeri
  6. 6. Mission • Providing new quality products in the areas of 1 cloths, food, home and financial services • Social revolution, by providing the working class with 2 clothes fit for lords and food fit for kings. • Delivering high quality goods 3 • Offering affordable price 4Aleksandra • Receiving by customers good value for money 5 (Grundy,2004)
  7. 7. 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 goalsAleksandra continuing becoming the differentiation ECO increasing sales and market world’s most strategy by delivering Plan share in retailing freshness, quality sustainable major and innovation retailer by 2015 (Grayson et al,2008)
  8. 8. Plan A Ppillars of Plan A: Objectives of the Plan A: 1. Climate change • reducing the amount of waste 2. Waste generated by factories and stores 3. Natural Resources of Marks & Spencer 4. Fair Partneship • protection of natural resources of 5. Health and wellbeing the earth 6. Involving customers in Plan A • promotion of healthy lifestyles 7. Make Plan A how we do • promoting and applying the business principles of Fairtrade • greater diversity of organic Products productsAleksandra • creating new jobs People Community • counteract the adverse climate • protection of animal rights Issues (Gyekye, 2010)
  9. 9. 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%Aleksandra
  10. 10. Customer Perceptions QUALITY VALUE SERVICE INNOVATIONAbdullah TRUST Dayson (2009),M&S (2009)
  11. 11. Corporate Strategy revive M&S business- Project 2020- progress SUPPLY CHAIN IT • Delivered £35 m of cost saving. • SAP implementation. • Warehouse consolidation in • POS software progress. implementation. • Opened Distribution Centre • Store stock systems. (DC)in Bradford. • Food forecasting pilot • East Midlands site planning. underway. • Permission underway. • HR transformation.Abdullah • Food depot voice picking rollout. • Shop your way rollout. • International direct deliveries. • Re-launch of website Dayson (2009),M&S (2009) & Gazette (2011)
  12. 12. 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.Abdullah Dayson (2009),M&S (2009)
  13. 13. 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 programOsamudiamen  Provision of Incentives  Rendering of Quality services to their customers Guest( 1987), Mellah, Jackson and Sparks (2002)
  14. 14. 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)Osamudiamen Poole (1999)
  15. 15. Swot Analysis M&S Plc Strengths Weaknesses Leadership in clothing has made M&S Declining sales in food offering and do not market leader in department stores have the scale to compete with leading competitors in the UK Strong brand equity Weak return on invested capital coupled Highly effective Cooperate Social with high pension and dept deficits Responsibility Strategy M&S legacy stores and systems are a Global expansion to foreign markets has competitive disadvantage. reduced susceptibility to already mature UK market and strengthened international market Opportunities Threats Online shopping continues to flourish in Pension funds deficits will lead to the UK and will enable M&S to increase constraint in the availability of money for revenues other operations and expansionsEdmond Making China and India a centre of Price increase in clothing and VAT attention can lead to expansion in two of increases will lead to less spending by the fastest growing markets customers` M&S strong brand equity and high quality perception they enjoy will help place premium pricing in the dinning at home market
  16. 16. 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 fundsEdmond 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)
  17. 17. Fall & Rise Figures The industrial organization indicate that management failing firms are the unfortunate victims of external circumstances and not imply management inefficiencyDavis (Mellahi et al,2002)
  18. 18. 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 strategyDavis 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)
  19. 19. 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 improvement • Micromanagement : Top management involved in operational day to day meetings • Reduced and Commerce Retail B2C Mobilechanging strategic consultants for making plans simple Consumer Recent Example : Mobile Service Mobile Promotions Mobile Multichannel Shopping Mobile Advertising This change in organization made M-Commerce Mobile M&S easy to bring New CRM Mobile Product Comparison marketing strategy :- ExpandingDavis Mobile Payment Mobile Mobile traditional marketing Shopping Search Mobile Location Search methodology into digital marketing (SMS campaign & Social media marketing ) Retailer © 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1 (Rippin, 2005) <docname>_<date>_<author>
  20. 20. Conclusion Issues Findings & Recommendations Internal factors External factors Effective leadershipManagement Cheap productivity Use of Scientific change managementparadigm modelsCentralized over reliable onmanagement system Brand name Utilise technological advantages to the changing marketIndividual technology advances Use of micromanagement in thedependencies changing phases new strategies in the payment ofReluctance to economy & society pension funds to avoid internalchange conflict
  21. 21. References• 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 Spencers Plan A makes "good progress”’. Journal of Material Recycling Week [online] available from < makes-good-progress-comment-update/3005441.article> [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]
  22. 22. • Lan Dayson (2009/10). Group Finance and Operations Director Fully year results [online] available from: marketplace/our-brand.aspx >. [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 < and-marketplace/our-brand.aspx> [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]
  23. 23. THANK YOUAny Questions???