Marks & Spencer'sAn analysis on HRM

Davis D Parakal ( 3357394)

Ehigiator, Osamudiamen (3314607)

Inu-Umoru, Zekeri (3362859)

Prandzioch, Aleksandra Teresa(2896971)

Abdullah M Almurabt , Sultan(3333929)

ANIM, Edmond(3378827)

Group Members

Zekeri

History of Marks and Spencer Problems after 90’s Mission Vision statement and goals Plan A Customer perceptions Corporate strategy Plan Summary Support of Human Resource Management HRM Policies SWOT Analysis Mitigation Strategy Fall & Rise Figures Change Management Conclusion

Table of content

• Marks and Spencer started as a stall by Michael Marks in Leeds

Market in 1884.

• His philosophy is to sell durable merchandise at a moderate price

• Thomas Spencer joined the business in 1894 and became a joint

partner of the company..

• The company was involve in selling cloth, luxury and food

production.

• M&S business become public limited company in 1926.

• They focused on By 1998, the business had almost 500 Marks &

Spencer stores around the world.Zekeri

(Gary,1999)

History of Marks and Spencer

Zekeri

Problems after 90’s

• Serious sales decline

• Autocratic style of leadership

• Lack of good employee – management relationship

• Lack of good benchmarking strategy towards competitors

• Poor organizational structure has led to confusion at

management level

Mission

1

•Providing new quality products in the areas of cloths, food, home and financial services

2

•Social revolution, by providing the working class with clothes fit for lords and food fit for kings.

3

•Delivering high quality goods

4

•Offering affordable price

5

•Receiving by customers good value for money

Aleksandra

(Grundy,2004)

Vision statement ‘To be the standard against which others are measured’

Organisational goals

• benchmarking conducted by others companies in order to implementing same or similar strategy into their business practice.• competitors’ aspiration to gain the same level of quality as M&S

increasing sales and market share in retailing

continuing differentiation

strategy by delivering freshness, quality

and innovation

becoming the world’s most

sustainable major retailer by 2015

ECO Plan

Aleksandra

(Grayson et al,2008)

Plan A

Objectives of the Plan A:

• reducing the amount of waste generated by factories and stores of Marks & Spencer• protection of natural resources of the earth• promotion of healthy lifestyles• promoting and applying the principles of Fairtrade• greater diversity of organic products• creating new jobs• counteract the adverse climate• protection of animal rights

Ppillars of Plan A:

1. Climate change2. Waste3. Natural Resources4. Fair Partneship5. Health and wellbeing6. Involving customers in Plan A7. Make Plan A how we do

business

DOING THE RIGHT THING

Issues

People

Products

Community

Aleksandra

(Gyekye, 2010)

Aleksandra

• 70 of the original 100 Plan A commitments have been reached

• Generated £50m additional profit • Store energy efficiency improved by 19% (target of

35% by 2015)• Carbon emissions from company operations cut by

8%. • General Merchandise fleets has improved by 30%• 400 million carrier bags use reduction • Food waste reduced by 20%

Plan A So Far

QUALITY

VALUE

SERVICE

INNOVATION

TRUSTAbdullah

Customer Perceptions

Dayson (2009),M&S (2009)

SUPPLY CHAIN

• Delivered £35 m of cost saving.• Warehouse consolidation in

progress.• Opened Distribution Centre

(DC)in Bradford.• East Midlands site planning.• Permission underway.• Food depot voice picking rollout.• International direct deliveries.

IT

• SAP implementation.• POS software

implementation.• Store stock systems.• Food forecasting pilot

underway.• HR transformation.• Shop your way rollout.• Re-launch of website

Abdullah

Corporate Strategy revive M&S business- Project 2020- progress

Dayson (2009),M&S (2009) & Gazette (2011)

Improving sales trend.Profits ahead of last year.Net cash generated, net debt reduced.Good progress on 2020.Outlook uncertain, but M&S well

placed.Abdullah

Plan Summary

Dayson (2009),M&S (2009)

Promote Working environment free from discrimination and harassment

Giving everyone equal treatment in all aspects of employment

Delivering a training program

Provision of Incentives

Rendering of Quality services to their customers

giving everyone equal treatment in all aspects of employment

Delivering a training program

Provision of Incentives

Rendering of Quality services to their customers

Osamudiamen

Guest( 1987), Mellah, Jackson and Sparks  (2002)

Human Resources Department Support of M&S

Osamudiamen

Code of Ethics & HRM Policies

Poole (1999)

Maintaining highest standards of honesty and integrity to their customers, employee, shareholders and supplier

• Marking sure that their forms of communication are clear, honest and accurate

• Welcoming of their customers feedback in other to improve their services

• Committed to an active equal opportunities policy.• Formation of business involvement group known as BIG

constitution to enable the Employee to share their ideas• Provision of occupational health services to the employee

M&S (2010)

Swot Analysis M&S Plc

Edmond

Strengths WeaknessesLeadership in clothing has made M&S market leader in department stores

Strong brand equity

Highly effective Cooperate Social Responsibility Strategy

Global expansion to foreign markets has reduced susceptibility to already mature UK market and strengthened international market

Declining sales in food offering and do not have the scale to compete with leading competitors in the UK

Weak return on invested capital coupled with high pension and dept deficits

M&S legacy stores and systems are a competitive disadvantage.

Opportunities ThreatsOnline shopping continues to flourish in the UK and will enable M&S to increase revenues

Making China and India a centre of attention can lead to expansion in two of the fastest growing markets

M&S strong brand equity and high quality perception they enjoy will help place premium pricing in the dinning at home market

Pension funds deficits will lead to constraint in the availability of money for other operations and expansions

Price increase in clothing and VAT increases will lead to less spending by customers`

Weakness to strength

decentralized management approach cut or design store space to suit different demographics and

also vary their range of products for the food offering sectionssell both own labelled and branded goods (food and non-food)

to drive sales conversionhave a consistent store layouts to facilitate easy navigation and

comfort for customers.revamp the HR and finance departments with new strategies in

the payment of pension funds

Treats to opportunities

Review its pricing strategy in order to attract a broad range of customers.

New shares should be floated in the stock market to get more funds to run the company

Edmond

Mitigation Strategy

Anon (2010)

The industrial organization indicate that management failing firms are the unfortunate victims of external circumstances and not imply management inefficiency

Davis

Fall & Rise Figures

(Mellahi et al,2002)

Davis

Change Management

Key stage in the successful management of change:1. Establishing a sense of urgency2. Creating a guiding coalition3. Developing a vision and strategy4. Communicating the change vision5. Empowering a broad base of people to take action6. Generating short term wins7. Consolidating gains and producing even more change8. Anchoring (institutionalizing) the new approaches into the culture

(Kotter, 1996)

•Emphasising the critical need for change

•Developing a Core Team – Executives from (IT, Supply Chain,

Property, Marketing Store & Design)

•Provided a simple, accessible and operational guiding vision for

improvement

•Micromanagement : Top management involved in operational day to

day meetings

•Reduced and changing strategic consultants for making plans simple

Davis

© 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>

1

Retail B2C Mobile Commerce

Retailer

Consumer

M-Commerce

Mobile Payment

Mobile Multichannel Shopping

Mobile Location Search

Mobile Service

Mobile Product Comparison

Mobile Advertising

Mobile Promotions

Mobile Shopping

Mobile CRM

Mobile Search

Recent Example :

This change in organization made M&S easy to bring New marketing strategy :- Expanding traditional marketing methodology into digital marketing (SMS campaign & Social media marketing )

M&S Change management policies

(Rippin, 2005)

Issues

Internal factors External factors

Management paradigm

Cheap productivity

Centralized management system

over reliable on Brand name

Individual dependencies

technology advances

Reluctance to change

economy & society

ConclusionFindings & Recommendations

Effective leadership

Use of Scientific change management models

Utilise technological advantages to the changing market

Use of micromanagement in the changing phases

new strategies in the payment of pension funds to avoid internal conflict

• Ann, R. (2005) ‘Marks and Spencer–waiting for the warrior: A case examination of the gendered nature of change management’. Journal of Organizational Change Management 18 (6) 578 - 593

• Guest, D. E. (1987) ‘Human Resources Management and Industrial Relation’. Journal of Management Studies 24(5), 503-521

• Hendry, C., Pettigrew, A. (1986) ‘The Practice of Strategic Human Resource Management’. Personnel Review 15(5), 3-8

• Kotter, J. (1996) Leading Change, Online book availability (http://tinyurl.com/5woxy8m) • Marks and Spencer: How we do business Report 2010 [online] available from

<http://plana.marksandspencer.com/media/pdf/planA-2010.pdf> [11 March 2011]• Gary (1999) • Gyekye, L. (2010) ‘Marks and Spencer's Plan A makes "good progress”’. Journal of Material

Recycling Week [online] available from <http://www.mrw.co.uk/marks-and-spencers-plan-a-makes-good-progress-comment-update/3005441.article> [18 March 2011]

• Grayson, D., Jin, Z., Lemon, M., Rodriquez, M.A., Slaughter, S., and Tay, S. (2008) A new mindset for corporate sustainability [online] available from <http://naomi.typepad.com/1000_cranes_blog/files/a_new_mindset_white_paper.pdf> [17 March 2011]

• Grundy, T. (2004) Gurus on Business Strategy. London: Thorogood [online] available from <http://up.m-e-c.biz/up/Mohcine/Book/Gurus%20on%20Business%20Strategy.pdf> [18 March 2011]

References

• Lan Dayson (2009/10). Group Finance and Operations Director Fully year results [online] available from: http://annualreport.marksandspencer.com/brand-and-marketplace/our-brand.aspx >. [16th March, 2011].

• M&S (2009). Quality worth every penny Annual report and financial statements [online] available from <http://corporate.marksandspencer.com/file.axd?pointerid=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23>. [16th March, 2011].

• Marks and Spencer (2010) M & S Code of Ethics [online] available from http://corporate.marksandspencer.com/documents/specific/howwedobusiness/our_people/code_of_ethics [27 March 2011]

• Mellahi, K., Jackson,P., and Sparks,L. (2002), An Exploratory Study into Failure in Successful Organizations: The Case of Marks Spencer, British Journal of Management

• Rippin, A. (2005) Marks and Spencer – waiting for a warrior ,A case examination of gendered nature of change management, Journal of organizational change management

• Marks & Spenser ( 2005) Process improvement at marks & Spenser, IT Publication• Annual Report [online] available from <http://annualreport.marksandspencer.com/brand-

and-marketplace/our-brand.aspx> [24 March 2011] • Financial Report [online] available from

<http://annualreport.marksandspencer.com/operating-and-financial-review/default.aspx> [25 March 2011]

• Annual Report and Financial Statement [online] available from <http://corporate.marksandspencer.com/file.axd?pointerid=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23> [25 March 2011]

THANK YOUAny Questions???