Marks and Spencer Merger with Sainsbury

Topics: Marks & Spencer, Stuart Rose, Strategic management Pages: 4 (1345 words) Published: May 2, 2011
Title of Modules: Strategic change in organizations, Creativity & Innovation, Strategic HRM

Strategic Change
Unit 3
1. Background to organisational strategic change.
Marks and Spencer plc is a UK-based company. Many people regard the business as a national institution. It is lovingly called "M&S" and "Marks and Sparks". M&S is known as a best retailer. There are over 370 Marks & Spencer stores throughout the UK that sell clothing, food and household goods. The core of its retailing business is clothing, particularly women's. Over 80% of Marks & Spencer's stores are sited in traditional high street locations. More than 10 million customers a week buy products from one of its stores. An increasing number of customers are using the internet to buy on-line. Many stores have modern cafes, which operate under the name, Cafe Revive. Marks & Spencer has franchised overseas. Franchisees operate Marks & Spencer stores in several countries, including Saudi Arabia, Turkey and Kuwait. In return for receiving a royalty payment, Marks & Spencer provides the franchisees with training and access to its branded goods. In the UK, it has recently franchised its 'Simply Food' stores at major railway stations. 'Simply Food' stores sell Marks & Spencer food items. The Company's headquarters were, for many years, in Baker Street in London. The Company has recently decided to move its head office out of central London. It was felt that it would be better to have several individual headquarters throughout the country, rather than a single London base. This way, the needs of the different parts of the business could be better served.(M&S Online, 2011).

According to this article Lyons said that it is not valuable for Rose to set back in this situation which is going toward downfall. He also added that the merger of M&S and Sainsbury would gain benefit of £25 bn. Moreover, Tesco alone will gain market share of £54bn which would be...
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