Marks & Spencer Retailing Strategy

Topics: Total quality management, Marketing, Quality management Pages: 13 (2528 words) Published: October 24, 2014
Operations Management I

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CASE REPORT
Subject | Operations Management I
Professor | João Villas-Boas
Delivery date | 1.11.2012

Manuel Trincão | 54730
Nicholas Silva | 54751
Rodrigo Silva | 54741
Vanessa Pacheco | 54753
2012/2013 GEB1

Operations Management I

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Operations Management I

Index
1. Introduction

3

2. Development

4

2.1. History

4

2.2. Marks & Spencer pre reorganization

4

2.2.1. Crisis
2.3. Marks & Spencer after reorganization

5
6

2.3.1. Strategy changes

6

2.3.2. Brand

8

2.3.2.1. The Perfect and Classic Collection

8

2.3.2.2. The Autograph

8

2.3.2.3. per una

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2.4. Order winners and qualifiers
2.5. Logistics performance objectives

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11

3. Conclusion

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4. Bibliography

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Operations Management I

1. Introduction
In this essay, in scope of the subject Organizational Management I, we will study the case of one of UK’s leading retailers that is Marks & Spencer.
We are proposed to answer 3 given questions regarding the firm, specifically its strategy. Not only will we answer these given questions, we intend to further develop the concept of corporate strategy taught in class and relate it to M&S case in order to better understand it. During this case study we will also explore the history of this company, explaining the firm’s organization problem, the crisis that happened within the firm and also it’s strategies to overcome this crisis.

We are also going to focus on the brand and in the ranges that M&S has available in the clothing market. There will be presented in this report aspects such as the market segments that M&S products ranges serve, the order winners and qualifiers for them and, finally, the different logistics performance objectives for the different ranges.

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Operations Management I

2. Development
2.1. History
Marks & Spencer (M&S) is one of UK’s leading retailers with over 21 million people visiting their stores per week. M&S offer stylish, high-quality, great value clothing and home products, as well as outstanding quality food and financial services. The company was started in 1884, when Michael Marks (a Russian-born Police refugee) opened a stall at Leeds Kirkgate Market. M&S have over 700 UK stores and currently the firm finds itself in the process of expanding its business internationally: the company is already present in over 43 countries. Marks & Spencer employees over 78,000 people in the UK and abroad (as M&S site has published).

2.2. Marks & Spencer pre reorganization
Focusing in clothing segment, M&S presented severe problems in their strategy department and, consequently, in their development and survival, due to massive mistakes. Seeing that M&S is a retailer type of firm, meaning that they only sell products, they don’t produce them: one of their main problems was the supply chain from the source to the consumer.

This route was very expensive because they had a lot of suppliers, mostly at the UK. Overall, the company had several problems about the supply chain, like:

All these problems made their supply chain really slow and time-consuming, not evaluating the suppliers nicely, not having a good balance between quantity and mix. Meanwhile, the marketing section had some issues too. They weren't able to predict sales, they only made two sales seasons (while the others made four) and their product development was very slow and expensive. This enterprise only had one brand - St. Michaels - leaving few options of choice to the customer, being the only target women between 35 to 55 years old. This brand was focused on classic style clothes and some times out of fashion.

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Operations Management I

In short, the notorious problems in the company were:

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2.2.1. Crisis
All these problems triggered the 1998 crisis, where Luc Vandevelde came as 4th CEO and responsible to change the company with some strategic measures.

2.3. Marks & Spencer...


Bibliography: 1. CHASE, Richard B.; JACOBS, F. Robert; AQUILANO, Nicholas J.; Operations Management for
Competitive Advantage; McGraw-Hill Irwin, 11th edition.
2. http://corporate.marksandspencer.com/aboutus/company_overview
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