Marks and Spencer Case Study

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CS1208

The Association of Business Executives Advanced Diploma

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INTERNATIONAL BUSINESS CASE STUDY

Marks & Spencer plc afternoon 2 December 2008

This is an open-book examination and you may consult any previously prepared written material or texts during the examination. Only answers that are written during the examination in the answerbook supplied by the examination centre will be marked.

CS1208

© ABE 2008

D/500/3717

BLANK PAGE

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Notes:


As in real life, anomalies may be found in this Case Study. Please simply state your assumptions where necessary when answering questions. The ABE is not in a position to answer queries on
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During the year, the company entered 4 new territories and opened 36 new stores including its largest ever franchise store in Dubai at 52,000 sq ft. In May 2007, it opened its first store in Taiwan under a joint venture with President Chain Store Corporation. 2007 sales turnover (exc. VAT) was £610.6m, representing a growth of 16.8% over 2006. Clothing & Home Clothing & Home sales accounted for 44.8% of the UK business. In womenswear the company expanded its Autograph range and the fast fashion choice in Limited Collection; in menswear, Blue Harbour remained the UK’s biggest men’s casualwear brand; the lingerie market share rose to 26.1%, offering clearly defined brands; and in childrenswear, previous poor performance was reversed with stronger ranges. Home, representing 5.4% of the UK business, had had two years of strong growth helped by outstanding value and strong demand in furniture. In 2007 UK divisional sales turnover was £4,002.8m (exc. VAT), representing a growth of 9.6% over 2006. Food Food accounted for 49.8% of UK business and a market share of 4.3%. In 2006/07, the company launched a range of 120 Nutritionally Balanced ready meals which were free from artificial colours, flavours and hydrogenated fats and followed government

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