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M & S (A)

1. What are the lessons you learn from M & S about how to turn around an ailing,

bureaucratic companies?

To answer this question, we must first define what a bureaucratic firm is.

A bureaucratic organization is one with rigid and tight procedures, policies and

constraints; and the company reacts with stringent controls as well as a reluctance to adapt

or change. Bureaucracies are very organized with a high degree of formality in the way it

operates. Organizational charts exist for every department, and everyone understands who

is in charge and what his responsibilities are for every situation. Decisions are made

through an organized process, and a strict command and control structure is present at all

times1.

M & S adopted drastic action was called for simply this survive. Stores were

closed on the Continent and in the US and jobs were cut as the the company also closed

down its Direct catalog so as it enable it to focus on its core UK Retail business. Sourcing

was moved overseas, cutting back on UK suppliers, in This order Increase margins and

make prices more competitive. At the same time the supply chain was modernized,

allowing clothes to be brought to market more quickly, bureaucracy was reduced and new

talent brought in to drive innovation. Shops opened on Sundays and accepted credit cards.

2. What lessons do you learn from Stuart Rose about the role of leader in this situation?

I learn from Stuart Rose about the role of leader in this situation to focus on three

main elements: product, services and environment. You should also keep a constant vision

of who were the nucleus of the idea. Maintain a constant value and quality of

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manufactured goods. You should go back to the core. In the case of this company to

return to the core M & S value (s) propositions:

The M & S's vision is' to be the standard against Which all others are measured ".

The M & S's mission is 'to make aspirational quality accessible to all'.

M & S's Values are 'quality, value, service, innovation and trust'

3. How important was it to change senior management at M&S?

It was very important to change senior management at M&S because this allowed

the company to save and stopping the expansion of the Simply Food outlets (there were

about 20 at the time).

1 http://smallbusiness.chron.com/bureaucratic-organization-20379.html [25.05.2015r.]