Marks & SpencerThe Phoenix Rises

Ishpreet Singh – 12P139 Karan Jaidka – 12P141Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143Manav Gupta – 12P146 Vikas Jain – 12P178

Group 1 – Strategic Management – IIPGPM 2012-14

The Problems Identified Leadership Crisis

Senior Directors replaced by promoted managers Leadership plan disrupted by the Queen’s Honours List

Asian Financial Crisis Retail sales dropped and new competition in women’s

clothing Competitors’ goods were cheaper and of better quality

Non-improving financials No improvement in clothing revenues Series of layoffs

Food stores not favourably located Sourcing

Competitors using cheaper raw materials, sourced offshore

Steps taken to Revive Growth Leadership Turnaround

Leadership team was reconstituted with Luc Vandevelde taking the helm

Team building Activities Couple of striking and unique appointments UK Retail team was being built

Three point program Total focus on UK Retail

Recovery plan for clothing Expansion in growing areas like food, home, beauty Acceleration of store renewal program More intensive use of space 100% own-brand policy To design and supply a collection for more fashion-conscious women Restructuring the supply base Sub-branding in clothing to reflect more segmented lifestyle of its

customers Program of value realization Return of 2 billion pounds to shareholders

Strategy- 100% focus on UK Retail and Financial Services- Realize value- Capital Restructuring- Platform for exploitation of unique strengths

Values- Quality, Value, Service, Innovation and Trust

Unique Strengths- 100% own brand (Per Una) - Command of Supply Chain (Faster TTM)- Economies of Scale- Assisted Self-selection

Ways of Working- Customer centric- Team working- Good incentivizing strategy

CUBE 1

Other Initiatives Taken for changes in design & sourcing, better product, lower cost

and faster TTM Zip (For children’s line)

Eliminating duplication of cost Achieving faster TTM

Simply Food Convenience format located in high customer flow areas Stores targeted at two segments Good variety of products

Home Sourcing directly Establishing consistency and coherence across the range

Financial Services Improving the card used by 3 mn people for greater services Re-establishing a tight relationship with customers

CUBE 2

Strategies- Translating scale & authority into superior quality, value and appeal- Build unique customer relationships

Ways of Working

- Think Customer- Be passionate about product- Be one team- Be honest, confident, listen and learn- Working smartly and using technology to work better

Their Customers- Aspirational Quality- At accessible prices- Unrivaled choice- Home store to dream of- Simple and rewarding financial solutions

Values- Quality-Value- Service- Innovation- Trust

Unique Strengths- 100% own brand- Command of Supply Chain- Scale & Authority- Focus on Superior quality & innovation- Assisted Self selection

A Great Place to

Work- Clear how we each make a difference- Build our strengths & develop our skills- Work-Life balance- Recognize & Respect a job well done- Be rewarded for superior results

The Road Ahead…

• Future strategy focused on eliminating competition by:-

– Trying to achieve the peak productivity– Speed to the market– Segmenting the market based on consumer needs– Promoting CSR activities to add to the value chain– Moving from products to creating experience and lifestyle– Improve efficiency and productivity