CASE ANALYSIS ON
Lecturer: Mrs. M. Mcpherson Edwards
Date of submission: April 8, 2011 Group Members:
Management and Intrapreneurship (ENT 1010)
Group 2 Members:
Asanya Lloyd Mrs. M. McPherson Edwards
April 8, 2011
Case Analysis – M&S
1. What are the lessons you learned from M&S about how to turn around an ailing, bureaucratic firm? To answer this question, we must first define what a bureaucratic firm is. According to Stimpson P & Singh K (2008), a bureaucratic organization, is one which is run by the government, or one that has strong centralized authority. It is defined as bureaucratic because there is a lot of red tape involved, meaning, for a single thing to be done it has to be passed through the different heads of departments. With reference to M&S, some lessons that we have learned about how to turn around an ailing bureaucratic firm are: * The first thing you have to do is bring in new people and start from the top. M&S was taken over by Luc Vandevelde, who held both the Chairman and the Chief Executive position. They did this for he was previously the Chariman and Chief Executive for a French hypermarket chain, and they felt as though he would be willing and able to bring this business back on its feet, due to his reputation and background experience. In addition to this position, M&S also brought in younger new talent, in order to help them in appealing to the younger generation. George Davies, who was the founder of Next, was brought in to take over this position, and also Yasmin Yusuf who worked for the Warehouse clothing chain was appointed as creative director. They engineered innovation and creativity into the firm and hoped to appeal to its new client base.
* Another lesson learned was that, in order to turn around an ailing bureaucratic firm, certain drastic measures has to be taken, for example closing down outlet stores and subsidiaries. M&S demonstrated this, when they closed down an entity of their stores on the continent and also in the USA. As a result of this drastic change, it led to a lot of jobs being lost. M&S did this, so as to focus on its core UK retail business and not so much on expansion or extended activities.
* In addition to these, another lesson that was learned was that, when turning around an ailing bureaucratic firm, a lot of the normal standards or preferred ways of transaction has to be standardized or modified. This means that certain norms have to be either developed or diminished. M&S showed this when, they moved their sourcing overseas. They were used to sourcing from their UK suppliers, but decided to move overseas, in order to increase margins and make prices more competitive. They also demonstrated this when they opened their shops on Sundays, and also started to accept credit cards, and not just their personal store cards.
* Another lesson that M&S has taught us was that when turning around an ailing firm, a series of modernization and standardizing needs to be implemented. This means that you need to adapt better methods of distributing and receiving your goods in order to have the firm running as efficiently and effectively as you hoped it would. M&S displayed this when they modernized their supply chain. This allowed for more clothes to be brought to the market quickly and also used a fewer amount of resources to do so.
2. What lessons did you learn from Stuart Rose about the role of leader in this situation? The lessons that I learned from Stuart Rose about the role of a leader in this situation are as follows: * When turning around ailing firms, all personal issues and personal feelings as a leader, has to be set aside. Certain emotions cannot be displayed and certain...
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