Marks & Spencer: The Phoenix Rises

Group 3 Members:
Abhishek Kumar (14P182)
Aditya Thangeda (14P183)
Apurba Mukherjee (14P189)
Bharat C.V. (14P193)
Nikhil Sharma (14P210)
Supreet Srinivas (14P232)

Problems
Poor succession planning

Senior Directors asked to resign

Horse race between young and old leaders
Plan disrupted by Queens Honor List as on of the Directors
selected for House of Lords
Letter leaked of Oates asking to make him the CEO

Asian Financial Crisis

Drop in apparel sales due to boom in electronics sale globally

Womens wear hit by competition offering better value and
fashion

Problems
Declining Financials

Stagnant or declining revenues in clothing lines

Series of Layoffs continued

Food Stores not located favorably

Weak Sourcing

80% sourcing was done from UK while cheaper alternatives

were available abroad

Strategic Initiatives
Leadership Turnaround

Vandevelde appointed as the new leader

Leadership reconstituted with focus on youth and diversity
Only the CFO (Robert Colvill) remained from old board

Team Building

New MDs appointed for UK Retail, Financial Services Group,

Food and Design
Retail Team constituted

Three-Part Program

Total Focus on UK Retail

Strategic Initiatives

Getting rid of everything that was a distraction

Recovery plan for UK Retail

100% own brand policy
Sub branding to reflect more segmented lifestyle of its customers
To build a collected for more fashion conscious women
Expansion in growing areas such as food, home etc
Closed Continental European Stores
Sold Brooks brothers and Kings Super markets
Closed Catalogue business
Release through sale and leaseback real estate value in lesser parts
of property porfolio

Return 2 Billion Pounds to shareholders

CUBE 1
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

Other Initiatives

Changes in design and sourcing in search for better product,

lower cost, and faster time to market
Zip

Simply food

Eliminating duplication of cost

Achieve faster time to markets
Locations unfavorable: Train stations targeted
New segments created: To go and Dinner Tonight

Home

Supply chain issue: Source directly

Financial Services

Better relationship with 3 mn users

M&S and More : Combination of credit card with M&S card

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

CUBE 2
Customers

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

Values

Quality
Value
Service

Innovation

Trust

CUBE 2
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

Road Ahead
Sustainable Growth

Using sub-brands for segmentation

Speed to market
Good better best approach to deliver outstanding quality

Move from product to experiences and lifestyles

Work smarter to improve efficiency and productivity
Achieve higher and better command on supply chain

Thank You!