1. Marks & Spencer
The Phoenix Rises
Ishpreet Singh – 12P139 Karan Jaidka – 12P141
Kshitij Agrawal – 12P142 Kshitij Ahuja – 12P143
Manav Gupta – 12P146 Vikas Jain – 12P178
Group 1 – Strategic Management – II
PGPM 2012-14

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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