Marks and spencer

Marks & Spencer's
An analysis on HRM

Group Members
 Davis D Parakal ( 3357394)

 Ehigiator, Osamudiamen (3314607)

 Inu-Umoru, Zekeri (3362859)

 Prandzioch, Aleksandra Teresa(2896971)

 Abdullah M Almurabt , Sultan(3333929)

 ANIM, Edmond(3378827)

Table of content
 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
Zekeri  Mitigation Strategy
 Fall & Rise Figures
 Change Management
 Conclusion

History of Marks and Spencer
• 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 &
Zekeri
Spencer stores around the world.

(Gary,1999)

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

Zekeri

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

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

• Delivering high quality goods
3

• Offering affordable price
4
Aleksandra
• Receiving by customers good value for money
5

(Grundy,2004)

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

• 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

Organisational goals
Aleksandra continuing becoming the
differentiation ECO
increasing sales and market world’s most
strategy by delivering Plan
share in retailing freshness, quality sustainable major
and innovation retailer by 2015

(Grayson et al,2008)

Plan A

Ppillars of Plan A: Objectives of the Plan A:

1. Climate change • reducing the amount of waste
2. Waste generated by factories and stores
3. Natural Resources of Marks & Spencer
4. Fair Partneship • protection of natural resources of
5. Health and wellbeing the earth
6. Involving customers in Plan A • promotion of healthy lifestyles
7. Make Plan A how we do • promoting and applying the
business principles of Fairtrade
• greater diversity of organic
Products products
Aleksandra
• creating new jobs
People Community • counteract the adverse climate
• protection of animal rights
Issues
(Gyekye, 2010)

Plan A So Far
• 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%
Aleksandra

Customer Perceptions

QUALITY

VALUE

SERVICE

INNOVATION

Abdullah TRUST

Dayson (2009),M&S (2009)

Corporate Strategy revive M&S
business- Project 2020- progress
SUPPLY CHAIN IT
• Delivered £35 m of cost saving. • SAP implementation.
• Warehouse consolidation in • POS software
progress. implementation.
• Opened Distribution Centre • Store stock systems.
(DC)in Bradford. • Food forecasting pilot
• East Midlands site planning. underway.
• Permission underway. • HR transformation.
Abdullah • Food depot voice picking rollout. • Shop your way rollout.
• International direct deliveries. • Re-launch of website

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

Plan Summary

 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 Dayson (2009),M&S (2009)

Human Resources Department Support of
M&S
 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
Osamudiamen
 Provision of Incentives

 Rendering of Quality services to their customers
Guest( 1987), Mellah, Jackson and Sparks (2002)

Code of Ethics & HRM Policies
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)

Osamudiamen

Poole (1999)

Swot Analysis M&S Plc
Strengths Weaknesses
Leadership in clothing has made M&S Declining sales in food offering and do not
market leader in department stores have the scale to compete with leading
competitors in the UK
Strong brand equity
Weak return on invested capital coupled
Highly effective Cooperate Social
with high pension and dept deficits
Responsibility Strategy
M&S legacy stores and systems are a
Global expansion to foreign markets has
competitive disadvantage.
reduced susceptibility to already mature
UK market and strengthened international
market
Opportunities Threats
Online shopping continues to flourish in Pension funds deficits will lead to
the UK and will enable M&S to increase constraint in the availability of money for
revenues other operations and expansions

Edmond Making China and India a centre of Price increase in clothing and VAT
attention can lead to expansion in two of increases will lead to less spending by
the fastest growing markets customers`

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

Mitigation Strategy
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 sections
sell both own labelled and branded goods (food and non-food)
to drive sales conversion
have 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

Edmond 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 Anon (2010)

Fall & Rise Figures

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

Davis

(Mellahi et al,2002)

Change Management

Key stage in the successful management of change:
1. Establishing a sense of urgency
2. Creating a guiding coalition
3. Developing a vision and strategy
Davis 4. Communicating the change vision
5. Empowering a broad base of people to take action
6. Generating short term wins
7. Consolidating gains and producing even more change
8. Anchoring (institutionalizing) the new approaches into the culture
(Kotter, 1996)

M&S Change management policies
• 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 Commerce
Retail B2C Mobilechanging strategic consultants for making plans simple

Consumer Recent Example :
Mobile Service Mobile Promotions
Mobile Multichannel Shopping
Mobile Advertising
This change in organization made
M-Commerce
Mobile M&S easy to bring New
CRM Mobile Product Comparison
marketing strategy :- Expanding
Davis Mobile Payment
Mobile
Mobile traditional marketing
Shopping
Search Mobile Location Search
methodology into digital
marketing (SMS campaign &
Social media marketing )
Retailer
© 2008 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1
(Rippin, 2005)
<docname>_<date>_<author>

Conclusion
Issues Findings & Recommendations
Internal factors External factors Effective leadership

Management Cheap productivity
Use of Scientific change management
paradigm
models
Centralized over reliable on
management system Brand name Utilise technological advantages to
the changing market

Individual technology advances Use of micromanagement in the
dependencies changing phases
new strategies in the payment of
Reluctance to economy & society pension funds to avoid internal
change conflict

References
• 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]

• 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=c25b7670e6e4420abd2
403cb7a6149f4&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_peopl
e/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=c25b7670e6e4420abd2403cb
7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23> [25 March 2011]

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