Nobody downloaded yet

What are the Strategic Issues Facing Marks & Spencer and what strategy should they follow next - Essay Example

Comments (0) Cite this document
Summary
Michael Marks started his chain of penny all over the UK in the late 1880s. He soon partnered with Tom Spencer, who happened to be a cashier at one of Marks suppliers. The two merged to form a chain of small penny stalls under the retail name of Marks and Spencer plc…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
What are the Strategic Issues Facing Marks & Spencer and what strategy should they follow next
Read TextPreview

Extract of sample
"What are the Strategic Issues Facing Marks & Spencer and what strategy should they follow next"

Download file to see previous pages The two merged to form a chain of small penny stalls under the retail name of Marks and Spencer plc. Michael Marks was succeeded by his son Simon Marks in the running of the stalls. Simon Marks, soon turned around of the bazaars into fully fledged stalls and introduced the St. Michael’ Logo which was used as a distinct sign of quality on all the Marks and Spencer products. With over 885 stores in 40 territories,600 in the UK and survey data showing that one in every three British women were wearing on of the Marks & Spencer range of bras, Marks and Spencer was officially recognized as being the largest clothing retailer in the UK. In 2010, a new CEO was appointed to head the company and the CEO was immediately besieged with a myriad of issues associated with continuing the challenges of strategic change and reassessing the company’s competitive strategy. Challenges Facing Marks & Spencer. Some of the internal issues facing Marks and Spencer include insufficient levels of communication between the Board and the investors. Examples of this situation include the announcement by Stuart Rose in April 2008 declaring his taking over the joint role as both the company CEO and also as the chair of the board of directors. This move proved to be quite unpopular, since it was in breach of the advice that the company got from the combined code of corporate governance. The body provides a, code that is voluntarily followed by most of the FTSE 100 companies. The moved proved to be immediately unpopular with investors, who deemed that Rose was now holding too much power. This is especially since the move by a single person, to hold the combined roles, had previously proved to be dangerous. There were also fears that it could prove to be detrimental once again. Rose overlooked all these concerns and proceeded with the appointment (Hill & Jones 2010). In the first half of the year 2009, Rose and his marketing director awarded themselves an enormous ?1 million package in the form of bonuses and shares. The move was opposed by investors and, Rose and his Marketing Director were forced to give up the package in order to try and appease the discontented shareholders. Louise Patten also came under fire, and there was a motion to block her reappointment for signing off the bonuses. In the July 2009 AGM, Rose narrowly survived a motion of no confidence by investors who were concerned about his joint role as both the company CEO and Chairing the board of directors. Over 40 percent of the investors had voted against the reappointment of Rose as Chair. Rose was in the limelight once again when in May 2010, the investors expressed their frustration with the board after, when without any shareholder consultations whatsoever, the board negotiated an impressive golden hello deal for the new CEO Bolland, amounting to ? 7.5 million in the form of cash as well as shares. The deal was criticized by many critics as being excessive and credited with giving Bolland a less than perfect start to his tenure at Marks and Spencer plc. (Collis) Among the corporate issues facing the company include the announcement by Rose in July 2009, stating his intention to stand down as the company CEO, but not as the Chair of the board until 2011. This move was seen by investors as having the probability of creating an almost impossible leadership task for Mark Bolland, the incoming CEO with Rose and the Marks and Spencer plc board looking set to remain in their capacities for the medium term. The inability by Marks and Spencer to break into the mid-age demographic, and its over reliance on the 55years+ demographic which comprised of nearly two thirds of its customers was also criticized by Tony Shiret in 2009. The launch of the (GIVe) range of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What are the Strategic Issues Facing Marks & Spencer and what strategy Essay”, n.d.)
Retrieved from https://studentshare.org/business/1398589-case-study
(What Are the Strategic Issues Facing Marks & Spencer and What Strategy Essay)
https://studentshare.org/business/1398589-case-study.
“What Are the Strategic Issues Facing Marks & Spencer and What Strategy Essay”, n.d. https://studentshare.org/business/1398589-case-study.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Strategic Financial Management - Marks and Spencer
...? Strategic Financial Management - Marks and Spencer Marks and Spencer is a brand of retailer group in the United Kingdom leading among several companies. The company provides its customers with clothing and other home products that are superior in quality and provide high value for money to the customers. The company is into the businesses of clothing, home products as well as food. It is also presently known for its environmental friendly activities (Company Overview, 2011). A study of the financial status of the company also reflects a sound business performance of the company with satisfactory revenue through its sales and this status has been...
14 Pages(3500 words)Essay
Strategic managent of Marks and Spencer
...regularly and is therefore critical to strategy formulation. The management is therefore required to continually monitor factors that are determinant or can influence the business performance. According to Hitt, Ireland and Hoskisson (2010, p. 39), a comprehensive and detailed environmental analysis of a business firm should comprise of four parts, they are scanning, monitoring, forecasting and assessing. With the help of environmental analysis, the strategic management will be able to find and recognize the major areas of opportunities, threats, challenges and strengths that organization may face in both internal and external environments. SWOT analysis of...
14 Pages(3500 words)Essay
Strategic Management: Marks and Spencer Case
...?Running Head: STRATEGIC MANAGEMENT Strategic Management of Strategic Management Introduction This paper is basedon the company, Marks and Spencer and appropriate models have been used to conduct internal and external environmental analysis as well as the assessment of the culture which is being followed in the company. Company Background Marks and Spencer is located at more than 718 locations across 34 countries worldwide (Marks and Spencer 2011, pp. 10).. The company sells products such as clothing, footwear, gifts, home furnishings and foods, however these are sold to...
16 Pages(4000 words)Essay
Marks and spencer assignment
...of subsidiaries’ amounting to 5.4 million pounds in 2010. Operating segments-IFRS 8 Marks & Spencer Group Plc adopted International Financial Reporting Standard (IFRS) 8- operating segments on 29 March 2009. This Standard requires the internal reporting should be used as a base to report the performance of operating segments of an entity. The Group has reshaped its operating segments as UK and International and their performance is reviewed by the executive directors. On the basis of review, the chief executives ascertain the amount of the further resources. The UK segment comprises of the UK franchise operations and UK retail business. The International segment operates in the Republic...
8 Pages(2000 words)Coursework
Marks and Spencer
...the research developed by Dreiling and Robinson it was revealed that certain unions in USA and Canada were stronger than others in confronting NAFTA (Dreiling and Robinson 1998), a fact which was related to the types of the unions (Dreiling and Robinson 1998). On the other hand, it has been proved that trade unions are not so strong in order to face effectively the challenges of globalisation (Dolvik 2001). In the case under examination of particular importance is a specific category of union response: Europeanization. Indeed, since Marks and Spencer is established in UK the labour laws of UK should be used for resolving the dispute between the firm and its employees in...
7 Pages(1750 words)Essay
Marks & Spencer
...?What are the major challenges facing this organisation? Marks and Spencer’s (M&S) has always enjoyed a strong M&S brand, strong retail and trading, and strong quality. The main issues that have affected the brand are product, price and stores (Ruddick, 2012). It has been facing survival crisis amidst intense competition (Mellahi, Jackson and Sparks, 2002). In addition they have not been spending on marketing. Its competitors include the traditional rivals such as John Lewis and Next, and in addition very recently Primark, with its low-cost clothing has changed the face of British High Streets (Ruddick, 2012a). Long after its competitors had started sourcing cheaper goods, M&S adhered to its ‘buy British’ policy (Mellahi, Jackson... ...
6 Pages(1500 words)Essay
Marks & Spencer
...Marks & Spencer PLC Marks and Spencer PLC (M & S) is known as an international retailer with 718 locations. The Group has a worldwide reputation, selling items in 34 countries. "The company was always considered to have a great management support that helped in its growth. But the last years, M&S's managers seem to fail on their strategic decisions, leading the group to lower and lower sales and profits" (Marks and Spencer PLC, n.d.). Sales decline was 4.8 % in 2000. The tools and frameworks applied to marketing in the UK do not differ to those used to market products in other countries. Identifying these...
11 Pages(2750 words)Essay
Marks & Spencer
...as their discount system. They also offers great discounts on their site and a customer can immediately watch it. Let's provide a comparative analysis between two these sites. Each side should contain company information. At Marks & Spencer website this information is represented rather widely: you can see as general information (company history, main figures, different reports etc.), so convenient interface of shop search for each region. The navigation and information usefulness for great variety of visitors are well thought-out. A little disadvantage is the lack of reference to company information section on the main page. Company information at Tesco website is also full enough....
6 Pages(1500 words)Essay
Managing Strategy: Marks and Spencer
... Managing Strategy Question Draw a cultural web for M and S during the early 1990s. Using this and any other appropriate strategic models and concepts to analyse the factors that lead to the success that Marks and Spencer experienced before its performance down turn in the late 1990s. The Cultural Web The cultural web for Marks and Spencer includes the stories, the signs, the procedures, the power relationships, the control mechanisms and organisational structures that made up the company (Johnson, 2005). The cultural web is rather difficult to break especially for a company like Marks and Spencer since it has had a substantial history and a well established culture. However, as the mapping of the cultural web shows, it did lead... did not...
16 Pages(4000 words)Essay
Marks & Spencer
...by using the traditional shares repurchase, as well as their concerns when funds are distributed by increasing the amount dividend payout – that is, the high amount of income taxes that investors incur when they receive dividends (Hakanson 1982). From the point of view of the company, it also uses this scheme in order to leverage certain payout policy theories. For one, the B share scheme addresses the issues of payout policy such as information asymmetry, residual theory and expectations theory (Keown 2002). When the company has decided to return the £2 billion to its shareholders, it aims to reorganise its capital structure in line with the strategic changes that aims to implement...
12 Pages(3000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic What are the Strategic Issues Facing Marks & Spencer and what strategy should they follow next for FREE!
Contact Us