MS case study Essay

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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…show more content…
with M&S recovery) 2006-2009 – Lord Burns 2009-2010 – Sir Stuart Rose 2011-present – Robert Swannell High cost of goods, sourcing only from the UK Implemented a central procurement department; much of the manufacturing had been transferred abroad; cost reduction by using fewer suppliers and by establishing closer relationship with them; total saving in supply chain £ 120 million in 2000 (Vandevelde) Expensive suppliers were replaced by cheaper quick-turnaround, often overseas (Rose) High operational costs Stores closure on the Continent and in the US, Direct catalogue and related job cut, > 1000 jobs; increased return on equity and assets by selling properties they do not need to own (Vandevelde) Old-fashioned designs, overestimated believes in costumers loyalty Hired designers such as George Davis, author of young and fashionable Per Una collection; Betty Jackson, Sonja Nuttall, Anthony Symonds; improved the segmentation of clothing, introduced new fashion strategy targeted on sub brands, such as the Limited Collection, Blue Harbour, Perfect, Autograph; launched new lines - seam-free underwear; improvements in product appeal (Vandevelde) Lack of advertising Introduced a new successful advertising campaign with TV adverts and celebrities such as Twiggy associated with bohemian style and extravaganza Shirley Bassey (Rose) Neglected focus on target customer groups (age groups, male and female), poor clothing segmentation for costumer groups and
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