Marks & Spencer'sAn analysis on HRM
Davis D Parakal ( 3357394)
Ehigiator, Osamudiamen (3314607)
Inu-Umoru, Zekeri (3362859)
Prandzioch, Aleksandra Teresa(2896971)
Abdullah M Almurabt , Sultan(3333929)
ANIM, Edmond(3378827)
Group Members
Zekeri
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 Mitigation Strategy Fall & Rise Figures Change Management Conclusion
Table of content
• 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 &
Spencer stores around the world.Zekeri
(Gary,1999)
History of Marks and Spencer
Zekeri
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
Mission
1
•Providing new quality products in the areas of cloths, food, home and financial services
2
•Social revolution, by providing the working class with clothes fit for lords and food fit for kings.
3
•Delivering high quality goods
4
•Offering affordable price
5
•Receiving by customers good value for money
Aleksandra
(Grundy,2004)
Vision statement ‘To be the standard against which others are measured’
Organisational goals
• 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
increasing sales and market share in retailing
continuing differentiation
strategy by delivering freshness, quality
and innovation
becoming the world’s most
sustainable major retailer by 2015
ECO Plan
Aleksandra
(Grayson et al,2008)
Plan A
Objectives of the Plan A:
• reducing the amount of waste generated by factories and stores of Marks & Spencer• protection of natural resources of the earth• promotion of healthy lifestyles• promoting and applying the principles of Fairtrade• greater diversity of organic products• creating new jobs• counteract the adverse climate• protection of animal rights
Ppillars of Plan A:
1. Climate change2. Waste3. Natural Resources4. Fair Partneship5. Health and wellbeing6. Involving customers in Plan A7. Make Plan A how we do
business
DOING THE RIGHT THING
Issues
People
Products
Community
Aleksandra
(Gyekye, 2010)
Aleksandra
• 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%
Plan A So Far
QUALITY
VALUE
SERVICE
INNOVATION
TRUSTAbdullah
Customer Perceptions
Dayson (2009),M&S (2009)
SUPPLY CHAIN
• Delivered £35 m of cost saving.• Warehouse consolidation in
progress.• Opened Distribution Centre
(DC)in Bradford.• East Midlands site planning.• Permission underway.• Food depot voice picking rollout.• International direct deliveries.
IT
• SAP implementation.• POS software
implementation.• Store stock systems.• Food forecasting pilot
underway.• HR transformation.• Shop your way rollout.• Re-launch of website
Abdullah
Corporate Strategy revive M&S business- Project 2020- progress
Dayson (2009),M&S (2009) & Gazette (2011)
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
Plan Summary
Dayson (2009),M&S (2009)
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
Provision of Incentives
Rendering of Quality services to their customers
Osamudiamen
Guest( 1987), Mellah, Jackson and Sparks (2002)
Human Resources Department Support of M&S
Osamudiamen
Code of Ethics & HRM Policies
Poole (1999)
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)
Swot Analysis M&S Plc
Edmond
Strengths WeaknessesLeadership in clothing has made M&S market leader in department stores
Strong brand equity
Highly effective Cooperate Social Responsibility Strategy
Global expansion to foreign markets has reduced susceptibility to already mature UK market and strengthened international market
Declining sales in food offering and do not have the scale to compete with leading competitors in the UK
Weak return on invested capital coupled with high pension and dept deficits
M&S legacy stores and systems are a competitive disadvantage.
Opportunities ThreatsOnline shopping continues to flourish in the UK and will enable M&S to increase revenues
Making China and India a centre of attention can lead to expansion in two of the fastest growing markets
M&S strong brand equity and high quality perception they enjoy will help place premium pricing in the dinning at home market
Pension funds deficits will lead to constraint in the availability of money for other operations and expansions
Price increase in clothing and VAT increases will lead to less spending by customers`
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 sectionssell both own labelled and branded goods (food and non-food)
to drive sales conversionhave 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
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
Edmond
Mitigation Strategy
Anon (2010)
The industrial organization indicate that management failing firms are the unfortunate victims of external circumstances and not imply management inefficiency
Davis
Fall & Rise Figures
(Mellahi et al,2002)
Davis
Change Management
Key stage in the successful management of change:1. Establishing a sense of urgency2. Creating a guiding coalition3. Developing a vision and strategy4. Communicating the change vision5. Empowering a broad base of people to take action6. Generating short term wins7. Consolidating gains and producing even more change8. Anchoring (institutionalizing) the new approaches into the culture
(Kotter, 1996)
•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 changing strategic consultants for making plans simple
Davis
© 2008 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.<docname>_<date>_<author>
1
Retail B2C Mobile Commerce
Retailer
Consumer
M-Commerce
Mobile Payment
Mobile Multichannel Shopping
Mobile Location Search
Mobile Service
Mobile Product Comparison
Mobile Advertising
Mobile Promotions
Mobile Shopping
Mobile CRM
Mobile Search
Recent Example :
This change in organization made M&S easy to bring New marketing strategy :- Expanding traditional marketing methodology into digital marketing (SMS campaign & Social media marketing )
M&S Change management policies
(Rippin, 2005)
Issues
Internal factors External factors
Management paradigm
Cheap productivity
Centralized management system
over reliable on Brand name
Individual dependencies
technology advances
Reluctance to change
economy & society
ConclusionFindings & Recommendations
Effective leadership
Use of Scientific change management models
Utilise technological advantages to the changing market
Use of micromanagement in the changing phases
new strategies in the payment of pension funds to avoid internal conflict
• 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]
References
• 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=c25b7670e6e4420abd2403cb7a6149f4&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_people/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=c25b7670e6e4420abd2403cb7a6149f4&versionid=c6167e6e5dc44b918eb9a277b921fa23> [25 March 2011]
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