Marks & Spencers: the Downfall and Leadership Vacuum
Marks & Spencer: The Downfall and Leadership Vacuum
Word Count: 2,996 Strategic Management 1 : BSM 506
Contents
Contents 2
Executive Summary 3
Section I Past Glory 4
Section II Present Failure 6
Section III The Value Chain Demolished 8
Section IV Back to the Future 10
Appendices 12
Appendix A PESTLE Analysis 12
Appendix B Porters 5 Forces 13
Appendix C Value Chain 14
Appendix D Cost Drivers and Value Drivers 15
Appendix E Core Competences M&S 16
Appendix F Critical Success Factors & Competitor Position Profile M&S vs. H&M 16
Appendix G Ansoff Matrix 17
Appendix H Barriers to Change 17
References 18 Executive Summary
M&S as an organisation has faced a number of challenges in its 124 year existence, but has successfully weathered each challenge as it presents itself with relative aplomb. The foundation upon which the whole business has rested since its inception in 1884 was "making life easy for [the] customer" (Bevan, pp13, 2001), which, in it 's initial form, involved selling carefully chosen, good quality goods with low margins, and achieving volume sales (relatively speaking, at least) through Michael Marks ' Penny Bazaars in the North West of England. This strategy was overwhelmingly successful, and continued to be the central tenet of M&S strategy for many years.
M&S sailed through the depression and several recessions, but at the end of the 1990 's something went severely wrong. Profits were falling year on year and the footfall in the stores was lower than it had been for several years. This report sets out many of the reasons for that failure then concludes by suggesting and evaluating the strategic options open to the organisation going forward.
The report concludes that drawing on the substantial capital resources of M&S, brand and product development are the appropriate measures to take in order to put M&S back on the retail map. Section I Past Glory
M&S somewhat lost it 's way
Word Count: 2,996 Strategic Management 1 : BSM 506
Contents
Contents 2
Executive Summary 3
Section I Past Glory 4
Section II Present Failure 6
Section III The Value Chain Demolished 8
Section IV Back to the Future 10
Appendices 12
Appendix A PESTLE Analysis 12
Appendix B Porters 5 Forces 13
Appendix C Value Chain 14
Appendix D Cost Drivers and Value Drivers 15
Appendix E Core Competences M&S 16
Appendix F Critical Success Factors & Competitor Position Profile M&S vs. H&M 16
Appendix G Ansoff Matrix 17
Appendix H Barriers to Change 17
References 18 Executive Summary
M&S as an organisation has faced a number of challenges in its 124 year existence, but has successfully weathered each challenge as it presents itself with relative aplomb. The foundation upon which the whole business has rested since its inception in 1884 was "making life easy for [the] customer" (Bevan, pp13, 2001), which, in it 's initial form, involved selling carefully chosen, good quality goods with low margins, and achieving volume sales (relatively speaking, at least) through Michael Marks ' Penny Bazaars in the North West of England. This strategy was overwhelmingly successful, and continued to be the central tenet of M&S strategy for many years.
M&S sailed through the depression and several recessions, but at the end of the 1990 's something went severely wrong. Profits were falling year on year and the footfall in the stores was lower than it had been for several years. This report sets out many of the reasons for that failure then concludes by suggesting and evaluating the strategic options open to the organisation going forward.
The report concludes that drawing on the substantial capital resources of M&S, brand and product development are the appropriate measures to take in order to put M&S back on the retail map. Section I Past Glory
M&S somewhat lost it 's way
References: Ansoff, I. (1987) Corporate Strategy McGraw Hill, New York Bevan, J. (2001) The Rise and Fall of Marks & Spencer. Profile Books, London. Dixon, S. Mador, M. and Matthews, R. (2005) Strategic Management I Kingston University, Kingston. Handy, C. (1981), Understanding Organisations, Harmondsworth, Penguin. Porter, M.E., (1980) "Competitive Strategy: Techniques for Analysing Industries and Competitors", New York, Free Press.