About their products worldwide now. The revenue of

About Mark and Spencer

 

Mark and Spencer is also known as M&S in
short form. It’s a public limited company and a retailer too. They were founded
in 1884 A.D about 134 years back in United Kingdom. The founders or the very
first owners of the company were Sir Michel Marks and Thomas Spencer. The main
head office of the company is located in London, United Kingdom. They sell and
produce their products worldwide now. The revenue of the company is around
Pound 10,622.00 Million (Mark and Spencer Retrieved 18th
August 2017). Their
operation income is pound 690.6 million (Mark and Spencer Retrieved 18th August
2017) and profit is pound 115.7
million (Mark and Spencer Retrieved 18th
August 2017). The number of
employees they have are approximately 84,939 (Retrieved 9th
April 2017). They
manufacture many products like clothing for men women kinds all and sell it to
many countries. They also have M bank, food, home products etc.

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Question 1:

 

Strength

o   Working with Suppliers

o   U. K’s 1st Retailers

o   Quality Products

o   A Core Competency

o   Refundable Policy

 

They people who are supplying mark and
spencer goods are 2,000 primary suppliers and 20,000 framers’. Mark and spencer
say that if they were not there to believe them in their upcoming planning then
it would be hard from them. They very good relationship with their suppliers
because they are able to keep then happy in many ways. They came up with
something called plan and suppliers exchange to also help their suppliers. It’s
a website where the suppliers conference their benchmarking groups to share
their best practice with them in, to give ideas and innovation to the company. As
mark and spencer started their business in 1884 which is almost 134 years back,
and they were the U. K’s 1st ever retailers too. Being the oldest
itself is a benefit for the company. People who are willing to purchase their
products can happily come to buy their products because they are oldest and successful
brand. As the company is oldest the people from generation to generation
shopped here so, the elder’s family member of any family prefers their young
ones to trust this brand. Products images plays huge part in a success of a business.
Maintaining the products and their quality is quit hard thing to do for any
businesses. There will be one question at last will the customer like it or
not? As mark and spencer have already gained the trust from the people on
selling quality products. As the slogan is also quite relatable “SPEND IT
WELL”. It means the money you have you can invest in good products which you
can find in mark and spencer.  

 

Core competency is something unique that a
business has, or can do, strategically well. It is mostly connected with
business strategy. The core means fundamental and the fundamental situation of
the company is very well.  And the
competency means the skills or ability. Mark and spencer has its skills and
ability very unique kind of which attracts the consumers very well. This
concept is helping the company to run smoothly. This business has its unique
way do doing things done which makes the consumers very happy. No matter what
you do there will come a time when a customer asks for a refund. So now the
question is will the company refund them? Yes, mark and spencer refund their
customers. If the buyer has any problem, or damage in the products then they
can freely come the shop from where they bought it and they will be refunded as
they wish like they can exchange their products with other products or take
money back. This policy is called refundable policy which has made the company
and their relationship with public very easy, free and trustable.

 

 

 

 

 

 

 

Weaknesses

 

o  
Bad
Publicity as non-Trendy Store

o  
Manual
Working Increases the Cost

o  
High
Level of Pricing

o  
Waste
Store Space

o  
Weak
Segmentation of Clothing

 

Every business has its own weaknesses,
likewise Mark and Spencer also has its few weaknesses. It is to be said that
mark and spencer is bad at publicity as non-trendy store. We can find large
verity of products in M&S but nowadays people say the products of mark and
spencer are very old fashioned. They have verity of products but most of it for
old generation not for the teenagers. As always, the most active citizen in
every part of world is the teenagers. For overcoming M&S should come up
with new ideas and strategies also focusing on teenagers accordingly. One of
the very bad image of M&S in front of the public is they are still using
the old technology rather then not going or preferring new ones. As we all know
old technology takes too much of time and money so the M&S’s products pricing
is also quite high because of with people don’t prefer to but their products.
Also because of the old technology the many products are still old fashioned.
As M&S is a very popular brand the price of their products is also very
high. It is because they sell designed and quality products but they also need
to focus of every type of people. They need to make reasonable price products
which other people also can affront it. They also need to do good research on how
many types of people are there and what are their taste in brand and products
they sell. They also need to make products which are affordable for every type
of people.

 

The problem is M&S has many store spaces,
but they don’t have proper utilization of it. They have almost 75% of square
footage from eighties itself. Because of the market share in clothing has not
increased the spaces are of no use (Stewart, 2000). They have numerous unmanaged store spaces. The best solution for
this problem is that the company need to come up with new products or try to
improve the market in clothing and so the proper utilization of the spaces.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Question 2:

                                                   

Leadership:

 

–      
Leadership
is defined as a person who leading and controlling a group of other people or
an organization to achieve a certain target or goals. A good leadership create
good ideas, information, creativity form other people. How do we drive talent
and performance by demonstrating a value-based leadership quality? Over here
will be talking about how leadership works? Leadership is a very important
function of management. Whenever we talk about the function of management
instantly we think about planning organization directing and controlling
directing functions including leading communicating motivating and supporting
coaching mentoring etc. So, leading is one of the most important function of
every manager because each functional area manager deals with the people first
but do all managers are good leader or do all leader are good in Mark and Spencer? 

 

–      
In 2007
mark and spencer launched plan A with hundred commitments. And in 2010 they
achieved 62 and made good progress on 30 more. The people who are handling and
leading the company are Archie Norman the chairman of the company, Steve Rowe
the Chief Executive, Helen Weir Chief Finance Officer, Patrick Bousquet –
Chacanne the Executive Director of Customer, marketing & M.com, Vindi
Banga Senior Independent Director, Alison Brittain, Andy Halford, Richard
Solomons, Andrew Fisher are the Non-Executive Director and Amanda Mellor is the
Group secretary and Head of Corporate Governance.
(Corporatemarkeandspencer.com leadership team Retrieved 2009)

 

–      
In the
past, Marks & Spencer were following Autocratic leadership style initiated
by Simon Marks. He highly focused on high quality & effective service to
attract customers. As the brand name was growing in the UK, he did not leave to
sell UK based clothing rather than European. In fact, employees weren’t given
any chance to address any ideas & views, but they were paid high salary
resulting to increase profit. Same leadership style repeated in the tenure of
Richard Greenbury. Despite he strongly follows autocratic style, he was able to
grow the market share twice than other retailers. M&S was getting customer
complaints because they had no fitting rooms & swiping card facilities.
This problem arises due to lack of two – way communication between top executives
& employees & discouraging the team work. The result was immediately
seen in the decrease of market share & losing customers. But, the
successful leadership style, i.e. democratic is seen in period of Luc
Vandevelde. He believes in team work & always used for motive & guide
the employees for improving organizational activities. By getting support from
his employees, he introduced a store concept & launched Per Una. Also,
M&S involved in CSR activities. Luc Vandevelde presented the leadership
qualities, i.e. patience, humble, consistent, positive attitude, etc. While the
organization was in crashed & burn situation, he did not give up & put
all his efforts to amend M&S former performance. The decisions which he
made can be seen in the form of growing market share. Another leader like
Stuart rose focuses on customer satisfaction & he was extremely popular
among his employees because of practicing democratic style.

–      
It can
be concluded that the leaders of M&S can be graded as satisfactory only.
Leaders have many weaknesses like depend upon only one supplier, lack of
marketing strategies, indistinct on team work. In fact, leaders lack vision
& mission of the organization. Only, due to high quality products, the
share was increasing. Mainly, the upcoming leaders in M&S should focus on
keeping good relationships with employees, implement the marketing strategies,
recognize their brand name, value their customers & keep aware of
organizational silo.

 

CORPORATE GOVERNANCE

 

–      
Corporate Governance is the
system of the rules, practices and procedures that a certain organization
follows and according to this; it runs its day to day operations (Bhagat, S. and Bolton,
B., 2008). It basically manages the interests of an
organization’s stakeholders are controlled It comprises of the employees,
shareholders, agents, clients and government. Helping the organization in
achieving all of its goals; it forms as an important crux of the organizational
development. Board members are the most important for the good governance of
the company. They plan for giving proper leadership to the business to utilize the
act of the company with the investors and shareholders (Mainali A,
2017).

 

During the 2009, the statement of Mark and
Spencer’s corporate governance read of “The board is directed to achieving the
success for the company by building a sustainable business for the long term,
generating shareholder value through consistent profitable growth whist making
sure that our customers can always trust us to do the right thing. However, the
statement soon changed and became about how leadership and governance go hand
in hand for the development of the company.

 

This variation was introduced in the company
when the then CEO Sir Stuart Rose and the management clashed. In spite of
having a role in changing the face of Marks and Spencer he did not want to give
up the position of CEO. This resulted in him giving a package of 1 million
forcefully because of his involvement with some other organization. Because he
was part of another organization Amha-Lane Fox Rose had to face several
accusations as it made shareholders very angry.  When the core motive
behind corporate governance is to encourage powerful, entrepreneurial and
judicious administration that can convey the long-term achievement of the
organization. Although the board of directors are the ones responsible for the
governance of their companies in this case study it is exactly the opposite.
The company is being directed and frame works are made for the convenience of
one person just to make sure he does not leave the company mid-way. Amanda
Mellor is the head of corporate governance. She joined M&S in 2004 as head
of investor relation.

 

This very reason was majorly involved in the
fall of share prices of Marks and Spencer’s amidst the conflict. During mid
2008 there was a constant decrease in the share price as the media
sensationalized the issue of lack of corporate governance in the company. Not
just that after Sir Stuart and management came in a neutral decision the price
did rise but still the company could not maintain the position.

 

CORPORATE CULTURE

 

–      
Mark and Spencer was
established by two friends in 1880 with small investment. And now we can see it
is the one of the most leading brand and British retailer. The management
system of mark and spencer was influence by family relative till late 1970s.
Until that day the company was practicing the traditional culture itself, and
board of director were appointed from family members. The CEO of Mark and
Spencer Mr. Greenbury ended the bureaucratic the leadership style. He had
powerful decision-making process and opinion due to which he made the decision
regarding decreasing the number of staffs from different stores that made
better relation with the board of directors. The senior people working in
different stores did not pass the enough information needed and feedbacks
regarding the decision that had made, which directly indicates the need of
proper practice of two-way communication among employees. Due to company practicing
tradition way, the company was not able to modernized their loyalty card and
scheme and could not focus visibly when their competitors were adapting their
services.

 

Conclusion:

 

–      
Being
the oldest retailers mark and spencer has gained great reputation in the
markets. Now they not only sell clothing products but also many other products
and services they give like, M bank, M food sectors, M home
décor etc. Mark and Spencer is successful because of their hard work, good
leadership skills and effective planning. They always have one motive and that
is how to make their customers happy. Being the oldest is one benefit for them
it is because the generation and generation have used their products from born
to death so all younger member from family are suggested to shop in M by
their elder ones. Normally other business has objectives of developing in
vision, value and their mission to get their long-term successes. But the
objective of mark and spencer is to produces good quality products which is
worth of customers penny (Ward, A., 2003). Mark and spencer just don’t work for money
they work with the value of money.