MS case study
Abstract
Marks and Spenser plc (M&S) is a one of the UK’s leading retailer of clothing, food and financial services. M&S was founded in 1884 by Michael Marks and Thomas Spenser in Leeds. M&S's profits peaked in financial year 1997/1998 with an annual turnover in excess of £ 8 billion and profit before tax of £ 1155 million. Following years its traditional way of doing business have come under pressure of changing environment. A leading worldwide retailer has become uncompetitive in the market industry internationally, especially in the UK. In response to that M&S conducted the strategic review to build on the strengths of M&S and exploit new growth opportunities. The changes helped to recover some of its market share and profit. By 2013 M&S employs over 78,000 people in the UK and abroad, has 731 UK stores and 387 stores spread across 43 countries. Overall, M&S’s clothing and homeware sales account for 49% of its business. The other 51% of its business is in food. In financial year 2012 M&S achieved turnover of £ 9.9 billion and profit before tax of £ 658 million. The assignment is to answer given M&S case study questions about its clothing business in the light of business strategy, logistic and supply chain management.
Question 1 – Given that M&S had an image problem in the past, what changes did it make and is making to its clothing business to enhance its competitiveness?
Marks and Spencer had being showing very good performance results during decades till the end of the last century. Following years its traditional way of doing business have come under pressure of changing environment from other big companies and the economic crisis world wide. Graphs below, based on M&S annual reports (M&S, 2012a) show, that while turnover was fluctuating or slightly growing during 1996-2012, M&S’s profit dropped dramatically in 2001, and then after being partly recovered, experienced falls in 2005 and 2009, fluctuating since 2010.
The graphs above demonstrate
Marks and Spenser plc (M&S) is a one of the UK’s leading retailer of clothing, food and financial services. M&S was founded in 1884 by Michael Marks and Thomas Spenser in Leeds. M&S's profits peaked in financial year 1997/1998 with an annual turnover in excess of £ 8 billion and profit before tax of £ 1155 million. Following years its traditional way of doing business have come under pressure of changing environment. A leading worldwide retailer has become uncompetitive in the market industry internationally, especially in the UK. In response to that M&S conducted the strategic review to build on the strengths of M&S and exploit new growth opportunities. The changes helped to recover some of its market share and profit. By 2013 M&S employs over 78,000 people in the UK and abroad, has 731 UK stores and 387 stores spread across 43 countries. Overall, M&S’s clothing and homeware sales account for 49% of its business. The other 51% of its business is in food. In financial year 2012 M&S achieved turnover of £ 9.9 billion and profit before tax of £ 658 million. The assignment is to answer given M&S case study questions about its clothing business in the light of business strategy, logistic and supply chain management.
Question 1 – Given that M&S had an image problem in the past, what changes did it make and is making to its clothing business to enhance its competitiveness?
Marks and Spencer had being showing very good performance results during decades till the end of the last century. Following years its traditional way of doing business have come under pressure of changing environment from other big companies and the economic crisis world wide. Graphs below, based on M&S annual reports (M&S, 2012a) show, that while turnover was fluctuating or slightly growing during 1996-2012, M&S’s profit dropped dramatically in 2001, and then after being partly recovered, experienced falls in 2005 and 2009, fluctuating since 2010.
The graphs above demonstrate