MS case study

2909 words 12 pages
Abstract
Marks and Spenser plc (M&S) is a one of the UK’s leading retailer of clothing, food and financial services. M&S was founded in 1884 by Michael Marks and Thomas Spenser in Leeds. M&S's profits peaked in financial year 1997/1998 with an annual turnover in excess of £ 8 billion and profit before tax of £ 1155 million. Following years its traditional way of doing business have come under pressure of changing environment. A leading worldwide retailer has become uncompetitive in the market industry internationally, especially in the UK. In response to that M&S conducted the strategic review to build on the strengths of M&S and exploit new growth opportunities. The changes helped to recover some of its market share and profit. By 2013
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d men’s casual wear; improved the segmentation of clothing, introduced new fashion strategy targeted on sub brands, such as the Limited Collection, Blue Harbour, Perfect, Autograph (Vandevelde)

Long response to customers’ needs, low flexibility for short lead times

Improvements in product availability (Vandevelde)
Shortened lead time by assessing suppliers’ capability and by establishing closer relationship with them (Vandevelde)

Credit cards acceptance refusal

Accepted all major cards (Vandevelde)
High prices

More competitive prices through overseas sourcing, improvements in product value (Vandevelde)
Prices were often cut while quality maintained, prices were adjusted and aligned with product value as a part of new clothing segmentation (Rose)

Staff motivation
Overhauled pay rates and career planning, re-negotiated contracts to ensure good level of cover at evenings and weekends, performance based bonus; enhanced staff confidence and sales skills by training and coaching system, hired American retail guru Mary Gober, trained 60,000 of its store staff; the biggest ever customer service training “Your M&S – Our Service Style” (Rose)
Trade channels’ formats
Refurbish more stores faster for less cost; shops opened on Sundays; reallocate selling space within stores; new way of presenting clothes increased average spend (Vandevelde)
Simplified, modernized, redesigned stores; pruned expansion plans; new product stands, display stiles, mannequins, till

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