Ma Strategic Management
Module of Organisational Strategy
Ahmad Hussain Kaisrani
Dr Leslie Doyle; Dr Emanuela Todeva
University of Wales
List of CONTENTS
Strategic Investigative Questions (03)
History of Marks and Spencer (04)
General Introduction of M&S (04)
The SWOT Analysis (06)
Source of Information (07)
Stakeholders and their power and ability (08)
Stakeholder Summary (09)
Organisational Configuration (10)
Evaluation of Corporate Structure (11)
Functional lines of communication (11)
Internal and External Linkages (13)
Strategic Investigative Questions
Following are the two questions which our group were assigned for discussion:
Who are the main stakeholders of Mark and Spencer? What is their power and ability to influence strategic decisions and choices.
Please, outline the organisational configuration of Marks and Spencer, including an evaluation of corporate structure, functional lines of communication and subordination. Functional and operational map, internal and external linkages.
Marks and Spencer
History and Introduction
Marks and Spencer started its business as one of the market stall in 1884. Today they are one of the main and leading retailers in UK. They have more than 21 million numbers of visiting customers per week. Marks & Spencer (M&S) has more than 600 stores in UK and over 300 in 44 countries with 75,000 employees (Marks and Spencer, 2010). According to CSR Case Study in 2005, 155 stores of M&S are managed under franchise in 29 countries chief being Europe then Middle East, Far East, Asia, Hong Kong, Republic of Ireland and US supermarket group called Kings Super Markets. The head office of M&S is located in London near Paddington Station.
The company was established as a partnership between Michael Marks from Poland and Thomas Spencer from Yorkshire. In 1884 Michael opened his first stall in Leeds and worked at numerous places opening numerous stalls till Thomas Spencer invested in Michael activities and they opened their first partnership store in Manchester. Uptill early 20th century M&S had the reputation of selling British only goods which was discontinued from 2002. In 1953 the uncompromising attitude towards customer relations were summarised in the slogan: “The customer is always and completely right.”
Marks and Spencer trade mainly in clothing, home products and food items which are imported from around 2000 suppliers globally. M&S boasts of specialising in women clothing and lingerie in UK and also are expanding in men’s and home products and kids clothing. Clothing and home ware sales contribute about 49% in business while remaining 51% is contributed by food (M&S annual report 2009).
The 5 year eco plan: Plan A
M&S has gained a special place because of their green credentials i.e. the five year eco plan: Plan A. It is five year eco and ethical plan established in 2007. The core of plan A are following 5 pillars. Each and every pillar has its specific goal which is being explained. Climate Change – become carbon neutral
Waste – send no waste to land fill
Sustainable Raw Material – extend sustainable sourcing
Fair Partner – help improve the lives of people in M&S supply chain Health – help employees and customers live a healthier life style
There are 100 commitments that make up Plan A of Marks & Spencer (Official website M&S). Plan A of M&A aims of being carbon neutral and sending no waste to landfill by 2012. So far M&S has successfully achieved 62 of these 100 Commitments and are on process to achieve Further 30 Commitments, leaving only 8 Commitments where they face additional challenges. After three successful years, in 2010 M&S decided to extend Plan A with 80 new commitments in addition to their original 100 commitments. With added 80 new commitments and extending existing commitments further, the mission is to involve...
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