2. Background
 Started in 1884, Marks & Spencer's was built on 5
principles
 Quality,
 Value,
 Service,
 Innovation and
 Trust
 Basic business units at the start were clothing, & food

3. The Meteoric Rise
 Built reputation as providers of affordable and stylish
clothing
 Seen as reliable if unexciting source of office and
casual wear
 Transformation into a modern retail store in the 1920’s
 By 1960’s, Recognized as one of the world’s best
managed companies

4. Strategy for Success
 Strategy focused on
 Delivery of value through partnership with suppliers,
employees and customers
 Number of SKUs were 1/10th of those carried by
competitors, but had high value & quality
 Great Value drove increased volume
 Marks & Spencer present on every high street of every
major British town – 260 by 1975

5. Global Expansion – highs & Lows Recession in the 1970’s in UK forced company to go
global
 Acquisitions in Canada were not satisfactory
 Full line M&S stores established in France, Holland &
Belgium with considerable success
 Franchise operations in places where it was not
possible to establish full time M&S Stores
 Premium paid for US Acquisitions which did not
materialize

6. Decline & Fall
 Asian financial crisis in 1997 which led to loss in overseas market
 Shift of spending away from apparel towards consumer
electronics
 Competing firms sourcing from off-shore locations were
competitive in price and quality
 Customers instead frequented likes of Next and Topshop who’s
more contemporary and on-trend clothing targeted younger
audiences which M&s failed to adapt
 Internal crisis in terms of failed restructuring activities
 Cost cutting activities affected product quality and involved
multiple rounds of employee layoffs and cancellation of supplier
contracts
 Highly publicized possible takeover contributed to weakening
position

7. Cube 2- Securing the recovery Development of a sense of individual ownership
 Socially Responsible Business
 Emphasis on 3 themes
 Sustainable growth for goods
 Moving from products to experience and lifestyle
 Working smarter and fundamentally improving the
efficiency by using technology
 Elimination of Middle Men to directly connect with
customers