This document contains information about Group 11's project on Marks and Spencer (M&S). It summarizes M&S's struggles in the late 1990s including leadership crisis, Asian financial crisis, declining financial performance, and competitive challenges in clothing. It then outlines M&S's strengths, weaknesses, opportunities, and threats. Finally, it describes the company's turnaround strategy focusing on rebuilding UK retail through improvements to clothing, food, home, and financial services lines of business.

1. Group 11
Pratik Sadhu(2013B32)
Mohit Singhal(2013B28)
Shekhar Dahiya(2013B49)
Siddharth Bhardawaj(2013B69)
Abhishek Sareen(2013B02)
Adrian Goveia(2013B29)
Prahalad Ekambaram(2013B38)

2. CLOTHING
FOOD
M&S
FINANCIAL
SERVICE
HOME

3. 
Leadership Crisis

Asian Financial Crisis

Non-improving financials


◦ Senior Directors replaced by promoted managers
◦ Leadership plan disrupted by the Queen’s Honours List
◦ Retail sales dropped and new competition in women’s
clothing
◦ Competitors’ goods were cheaper and of better quality
◦ No improvement in clothing revenues
◦ Series of layoffs
Food stores not favourably located
Sourcing
◦ Competitors using cheaper raw materials, sourced
offshore

4. 






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

5. 





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.

6. 

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.

7. 



Sourced goods from onshore which led to
higher cost.
Management was not stable.
Brand was not popular in North America.
Slower time to market.

8. 

Growing European & Asian Business.
Introduction of charge cards can provide the insights on
buying pattern of customers.

9. 




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.

10. 
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

11. Strategy
- Focus on UK Retail and Financial Services
- Realize value
Vision, Mission, Values
- Quality, Value, Service, Innovation and
Trust
- Capital Restructuring
- Long term future Growth
Platform for exploitation of unique
strengths
CUBE 1
Unique Strengths
Ways of Working
- 100% own brand
- Customer centric
- Command of Supply Chain
- Team work
- Economies of Scale
- Good incentivizing strategy
-Focus on Superior Quality & Innovation
-Individual Ownership

12. 




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

13. 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, confid
ent, listen and
learn
A Great Place to
Work
Customers
Unique
Strengths
- Aspirational
Quality
- At accessible
prices
- Unrivaled
choice
Values
- Quality
-Value
- Service
- Home store to - Innovation
dream of
- Trust
- Simple and
rewarding
financial
solutions
- 100% own
brand
- Command of
Supply Chain
- Scale &
Authority
- Focus on
Superior quality
& innovation
- Assisted Self
selection
- 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

14. Questions?