The author will begin with the statement that multi-line retailer observed in the paper "Corporate Strategy of Marks and Spencer" was founded in 1884 in Leeds UK by Michael Marks and Thomas Spencer who established a niche by selling varied branded goods…
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The centralized organizational control structure at Marks & Spencer, as identified in the opening chapter, needs to be remembered as a core problem that has plagued company operations throughout this analysis. This centralized organizational approach was established by its founders when they opened the first store and continued after their passing as family members opted to retain control over operations (Goffee and Scase, 2015; Ward, 2003). Marks and Spencer’s centralized organizational structure represents the common approach used by many founders and strong business leaders who desire control over their operations under the principles of agency theory (Mudambi and Pedersen, 2007; Lan and Hercleous, 2010). Agency theory is brought forth in this analysis because it addresses disputes that usually arise in areas such as a difference in terms of goals, or the aversion of risk (Ballwieser, et al, 2012). This is an important underpinning that provides an understanding concerning the look into problems impacting Marks and Spencer. This founder approach, in terms of agency theory, in addition to the centralized organizational control aspects extends to other areas as well. Examples of the top-down centralized control that created problems for H&S can be seen in the company’s commitment to classic product lines and the reduction of sales floor staffing that hurt service delivery (Collier, 2004). In terms of the company’s product approach, the case study by Collier (2004) stated a key reason for declining sales represented competitors moving onto goods that were priced similar to M&S but were trendy and design-conscious, such as The Gap, Next, Oasis and others versus M&S’s classic styles. The moderate pricing that had served M&S for decades was now also under attack from discount chains and supermarkets such as Tesco, ASDA. Walmart, and others (Collier, 2004). In addition, these supermarkets were also competing with M&S’s food segment using lower prices and branded products (Collier, 2004). Evidence of the struggles M&S was having with strategy was summed up in an article that appeared in the Financial Times in 1999 that stated: “There are so many items here to find and they don’t tend to segregate it out, so there’s something I might like next to something my granny might like” (Collier, 2004, p. 31). The appointment of Lus Vandevelde as chairman lead to strategy changes representing four strategies (Collier, 2004): The creation of clear profit centers; The creation of a customer-facing organization (customer-centric); Restoring overseas profit, and Building revenues in the financial services sector that represented a better utilization of M&S store cards. These foundational aspects addressed core problems within Marks and Spencer that shaped strategies which addressed the core issues of the company and resulted in profit and revenue gains. The above strategies were utilized by the company to craft its approach to retail operations that were based on the application of a fundamental formula represented by the following (Collier, 2004): A simple pricing structure, Offering high-quality merchandise under the St. Michael brand name, Clothing was selected based on a generic, essential theme at reasonable prices, Quality control by working closely with suppliers, Providing customers with helpful and friendly service, Having a close-knit family type atmosphere by employing staff that fit this customer mode. Leverage of financial services (credit card issuance) to increase distribution of M&S cards and the resulting interest charges they bring.
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...?Prepare a report on a selected UK company from the FTSE 100 Table of Contents Introduction 3 Corporate Governance 3 Corporate social reporting 5 Stakeholder Engagement Techniques 6 CSR/Sustainability reporting assurance 9 Conclusion 10 The present paper found that Marks and Spencer indeed had complied with the expectations of its investors and stakeholders as promised in Plan A. the company not only undertook measures to retain environmental sustainability but also indulged in community services which even helped it earn rewards from Business in the Community. However, there still remain subtle rooms for improvement in this aspect even though it had come a long way...
...?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... ...
...him touch and try-out first-hand the product you are selling. Thus, the company will participate in both local, national and international technology and industry exhibits. Company representatives of prospective client companies and businesses will be invited to the exhibit.
Cnet.com staff. (No date). 4 portable printers. Retrieved on 12/8/05 from
Golden, CO: Pentax Media. Retrieved on 12/8/05 from Whenham, T.O. (2005, Nov. 18). Pentax pocketjet - portable printers with bluetooth.
Johnson, G., Scholes, K. (1998). ExploringCorporateStrategy. Hemel Hempstead:
Lynn R. A. Price Policies and Marketing Management. Homewood, IL: Richard D. Irwin,...
...4. Strategic Management - Competitiveness and Globalization", M.A. Hint, R.D. Ireland, and R.E. Hoskisson, 2001
5. W Cha Kim , Peter Hwang, Global Strategy and Multinationals' Entry Mode Choice., Journal article by Peter Hwang, W Cha Kim; Journal of International Business Studies, Vol. 23, 1992
6. Johnson, G, & Scholes, K, (2005), ExploringCorporateStrategy: text and cases, (7th ed Prentice
7. Hall), ISBN 0 273 678344, Library Reference 658.16 J67
8. Mintzberg, H, & Quinn J B, & Ghoshal, S, (1998), The Strategy Process, (Revised European edition, Prentice Hall), ISBN 013-675984-X, Library Reference DOJ 658.40 MIN
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...is revealed to hinge upon companies getting hold of further economies of scale, rather than decreasing outsourcing activities in under-developed countries with lower labor costs. This also suggests that respondents take a company's ethical practices into account only on limited occasions. These findings may offer some explanation as to why ethical market shares for individual sectors rarely account for more than 2-3 per cent of the total market (The Gap, 2008-a).
1. Business Week (2008), "The 100 top brands", Business Week, available at: www.businessweek.com/pdfs/2003/0331_globalbrands.pdf (accessed 15 Oct 2008).
2. Johnson, G. Scholes K. (2002). ExploringCorporate...
...at the objectives that have been previously set. The allocation of resources refers to the fact that there is likely to be a cost associated with the actions required to achieve the objectives.
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2. Griffith, D. A., Hu, M. Y. and Ryans, J. K. Jr. 2000, "Process standardization across intra- and intercultural relationships". International Business Studies, 31, pp. 303-24.
3. Johnson, G., Scholes, K. 1998. ExploringCorporateStrategy. Hemel Hempstead: Prentice Hall.
4. Marks and Spencer PLC. Case study (n.d.) Available from:...
...Marks & Spencer Group Plc is one of the UK's leading retailers of clothing, foods, homeware and financial services. It holds lading position in the UK for stylish clothing sales. For instance, Marks & Spencer sales during last quarter of 2005/2006 financial year exceed all experts forecasted.
Sales volume of shops, working not less than a year, increased for 6,8% for the quarter, ended on the April, 1 while analytics forecast was about 3,2%.
Surely, this company website strongly helps to increase sales and to keep the customers loyal.
Everybody knows that retail is one of the most competitive economics sector. Shops, marketplaces, boutiques, super- and hypermarkets offer...
.... (International success).
Threats to BMW:
In addition to the impact of politics, economics, social issues, technology, legal issues and environmental concerns, BMW may have to face competition from the existing competitors, the likelihood of the entry of new competitors, the threat of product substitution and the bargaining power of suppliers and buyers to remain not only just competitive but also make use of the new opportunities that have become available with globalisation. (Five Competitive Forces (Porter).
Strategic Management of BMW.
The corporatestrategy of BMW has several legs to its foundation. These include identifying potential and encouraging growth, knowing what they represent,...
... 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...
...conflicts. Incentive schemes, when they are carefully considered can create value for the company by motivating the key people and decision-makers for pursuing value-adding activities.
________. (2005). “Will the real Marks & Spencers stand up?: Search for that Winning Brand.” Strategic Direction. Volume 21, No. 9, pp. 28-31. Emerald Insight Accessed on April 27, 2010.
Arnold, G. (2008). Corporate Financial Management. UK: Pearson Education Limited
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Theory." Journal of Finance, V. 43, No. 3: pp. 593-616. Accessed on April 28, 2010 from the Social Science Research...
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