Marks and Spencer case study

Time Context
1884

History

 Marks & Spencer was formed in 1884 when Michael Marks, a Polish refugee opened a
market stall in Leeds, with the slogan ‘don’t ask the price, it’s a penny’.
 In 1894 Marks went into partnership with Thomas Spencer, a former cashier from the
wholesale company, Dewhirst.
 In 1904 Marks & Spencer opened their first shop in a covered arcade in Leeds.
 In the 1920s we adopted the revolutionary policy of buying directly from suppliers.
 In 1926 Marks and Spencer Limited became a public company.
 In 1930 the flagship Marble Arch store was opened.
 In 1931 a food department was introduced, selling produce and canned goods.
 In 1933 a staff welfare service was set up to provide pensions, subsidised staff
canteens, health & dental services, hairdressing and even camping holidays!
 In 1934 we were the first British retailer to set up its own research laboratory to pioneer
new fabrics.
 In 1948 M&S launched its own Food Technology department to work closely with
suppliers, producers and farmers.
 In 1954 the research lab undertook the first ever systematic survey of women’s leg
sizes, to create a new and improved sizing system for stockings.
 The same year saw M&S’s “Operation Simplification”, which reduced internal paperwork
by 25million items per year.
 In 1974 Indian and Chinese foods were introduced.

 In 1975 the first stores opened in continental Europe in France and Belgium.  In 1985
our Chargecard was launched.
 In 1999 online shopping was introduced via our website.

 In 2001 the first Simply Food stores opened in Surbiton and Twickenham and the Per
Una range, designed by George Davis, was launched.
 In 2002 the Blue Harbour men’s range was launched, and the Limited Collection
launched the following year.
 In May 2004 Stuart Rose was appointed Chief Executive of Marks & Spencer. He
became Executive Chairman in 2008.
 In November 2009 it was announced that Marc Bolland, then chief executive of Wm
Morrison, would be the new Chief Executive of Marks & Spencer.

Abstract
M&S was founded in 1884 by Michael Marks and Thomas Spencer in Leeds The
company also began to sell branded goods like Kellogg's Corn Flakes in November 2008.
M&S currently has 959 stores across the U.K. including 615 that only sell food products.
In 1998, the company became the first British retailer to make a pre-tax profit of over
£1 billion, although subsequently it went into a sudden slump, which took the company
and its stakeholders by surprise. In November 2009, it was announced that Marc Bolland,
formerly of Morrison’s, would take over as chief executive from executive chairman Stuart
Rose in early 2010; Rose remained in the role of non-executive chairman until he was
replaced by Robert Swannell in January 2011. In recent years, its clothing sales have
fallen whilst food sales have increased after axing the St. Michael brand name for their
own brand. On 22 May 2018, it was confirmed that over 100 stores will have closed by
2022 in a "radical" plan. Whether more stores will close is yet to be confirmed.
The objective of this study is to help the company to improve their product and
services in home market in UK. There are many problems in company. One of the major
problem is the closing some outlets. Second is the competition in online shopping. Third
is the use of credit card as payment.
The possible solution to their problem is to focus on home market in the UK in the
area of food and clothing buy closing outlet in Europe and USA. Improving the store
ambiance will help to attract the customer. Investing in online shopping and distribution
system will help the company for potential buyer by the use of credit card payment.

Vision
 “To provide a standard against which its competitors may be measured,
from customer experience, to care for the environment and community and to
the working environment for employees”.

Mission

“To make aspirational quality accessible to everyone, through the depth

and range of its products”.

Corporate Social Responsibility

“A concept whereby companies integrate social and environmental concern in their
business operation and their interaction with their stake holder on a voluntary basis.”

I: Statement of the Objective

To help the company to keep up with the tremendous changing in the retail market

II: Central Problem

How Marks and Spencer improve their product and services in home market.

III: Areas of Consideration (SWOT Analysis)

Strength
1. Excellent Reputation for underwear and food
2. Trusted company / Brand
3. Presence in high streets

Weaknesses
1. High prices for food
2. High cost of IT investment
3. Problems in product and delivery

Opportunities
 1. Aging UK population with high income
2. Demand for category modern outerwear
3. Cheaper sourcing from overseas

Threats
1. Overall decline of department stores in UK
2. Shopping over the internet
3. Recession in the far east

IV: Alternative Courses of Action

1. Opening small food and clothing stores in high street and railway stations

Advantages
- Attract more customers
- Increase income
- Open many jobs

Disadvantages
- Possible unprofitable
- Competition in small stalls

2. Focus on Home market in the UK in the area of food and clothing by closing
outlets in Europe and USA

Advantages
- It can increase the improvement of the products
- Additional investment to expand home market

Disadvantages
- Many people lose job
- Lose income
 3. Enhancing brand reputation through online platforms and offer something new
product.

Advantages
- Wide range of possible customers
- Increase income

Disadvantages
- Additional expenses
- Possible unprofitable

V: Recommendation:
I therefore conclude that the best solution to the problem is alternative course of
action # 2 which is focus on home market in the UK in the area of food and clothing by
closing the outlets in Europe and USA because it will give additional income and also it
gives improvement in the product and services.

VI: Plan of Action:

1. Improve the food and clothing
2. Invest in distribution system
3. Improve stores ambiance

VII: Potential Problems

1. What if the product and services fails?
2. What if the customer didn’t like the new stores?
3. What if there is no customer used the delivery system?

VIII: Contingency Plan

1. Create new styles, new trends, and modern outwear.
2. Improve the service, promote zero waste
3. Introduce the credit card payment and online shopping