1. Presented By: Group 2
Anu Matthew
Hinal Khemani
Sanchari Majumdar
Shilpi Hota
Sunil Prasad
Aasma Bhasin
Aakansha Agarwal
2. • Marks and Spencer, one of UK’s leading retailers with over 1330 stores
worldwide
• Originated more than 130 years ago when Michael Marks came to the north
of England
• Before long, he owned a market stall in Leeds which immediately flourished
• Michael approached Tom Spencer to handle the accounts
• Thus on 28th September 1894 Marks & Spencer was born
ABOUT THE COMPANY
3. Timeline
• 1901, Built a
warehouse at
Derby Street,
Manchester (First
headquarters)
1900-1940
• Introduction of
‘cold-chain’
processes
• Ventured into food
segment
1940-1970
• Introduced frozen
foods
• Introduced the “A
Plan”
1970-2010
• 790 stores in UK,
86,000 employees
• Market leaders in
Clothing
2010-NOW
TIMELINE
4. Values Quality, Value, Service, Innovation
and Trust
Mission To make aspirational quality
accessible to all
Vision To be the standard against which all
others are measured
6. International
Expansion
Bricks and
clicks
strategy
Increase
food stores
• Aims to open about 250 stores
outside UK
• Increase their overseas sales by
25% and profits by 40%
• Priority markets are India, China
and Gulf with 1.9 percent increase
in group sales
• Plans to include flagship stores in
major cities and a collection of
new dedicated lingerie and beauty
stores
Leveraging E-commerce to
strengthen brand awareness in
China and reach across the
country
• Aims to set up 20 stand-
alone food stores in Paris
• Expand food business in
Western Europe
GROWTH PLANS
7. India
•Important market outside UK for M&S
•Earmarked 20 sites in India for the lingerie and beauty concept
•In total, M&S wants to have 100 stores in India by 2016
China
•Focus on entering key cities
•Taken the decision to close five of its supporting stores in the greater Shanghai region
•Leveraging E-commerce to strengthen brand awareness
•Marks & Spencer launched a new dedicated kids-wear store on TMall.com and a new clothing store on JD.com
Middle East
•Marks & Spencer Lingerie & Beauty has already opened at two locations in Saudi Arabia, with 10 further stores
planned in the next two years
GROWTH PLANS
8. Strength
•High brand recognition
•Wide variety of products
•It has over 1000+ stores present across 40
countries
•Over 80,000 employees form a part of the
workforce globally
•Organic, healthy food products
Weakness
•Highly priced products vis-a-vis their
competitors
•Attracts only people over 25-30 years of age
•Weakening company financials
Opportunities
•Opportunities in the online retail space
•Introduce clothing fo younger people
•Geographic expansion in emerging markets
Threats
•Still reliant on mega stores
•Competitors like ASDA, TESCO etc and
various new entrants
SWOT
SWOT ANALYSIS
9. Political
• Liberalization in east Europe
• Free trade agreements
Economic
• Rising Incomes
Social
• Changes in consumer tastes
and lifestyle
Technological
• Internet has become a
powerful selling channel
• Mobile phone shopping is just
taking off
Legal
• Regulations for standard
packaging, eco-friendly
material and processes of
manufacturing
Environmental
• Waste management
• M&S has developed a program
called Plan A in this regard
PESTLE ANALYSIS
10. Porters
5 forces
Threat of
substitutes
Bargaining
power of
buyers
Threat of
new
entrants
Bargaining
power of
suppliers
Degree of
rivalry
The alternatives came from Tesco
and Sainsbury as they acted on
providing added value foods.
The bargaining power of suppliers is
quite low when it has concentrated
purchasers. Marks & Spencer
outsourced, globally to reduce its
cost similar to its competitors which
result a lower bargaining power of
its UK suppliers.
Under competitive rivalry, Marks &
Spencer really faced threat as other
companies entered the industry
with the same quality goods but
with affordable price and up-to-date
fashion.
Low bargaining power due to
delivering services or products to
the changing demands of consumers
in the market
The threat of entry looks out in
terms of differentiation for Marks &
Spencer to the customers' loyalty
that can discourage potential
entrants. Marks & Spencer has a
long time developed focus that has
served as an entry barrier.
PORTER’S FIVE FORCES MODEL
11. BCG Matrix
Stars
• Men and
women's
clothes
Question
Marks
• Food
Products
Cash Cows
• Lingerie
and
Nightwear
Dogs
• Children's
wear
BCG MATRIX
15. S
T
R
A
T
E
G
I
C
P
R
I
O
R
I
T
I
E
S
Food Sales
Growth
• Availability
and choice
• More stores
GM Gross
Margin
Improvement
• Better buying
processes
• Renewing old
processes
GM
Performance
Improvement
• Newness
• Quality
Strong Cash
Generation
• Supply chain
initiatives
• Less capital
expenditure
16. HR STRATEGY
1. TO ADDRESS CURRENT CHALLENGES
2. TO SUPPORT THE BUSINESS STRATEGY
HR STRATEGY
18. CHALLENGES
HR store-to-store basis
No centralization of policy
No shared learning
SOLUTION
Remove HR responsibilities
to do with case laws away
from stores
Dedicated HR Hubs
Access to case law pages
CENTRALIZATION
19. CHALLENGES
• HR function was heavily burdened with administration, relying on manually intensive processes,
with difficulty producing useful management information
SOLUTION
• Streamline the range of HR activity
• Remove admin tasks that burdened the Store Managers
• Retail Training Specialists to design and deliver all training needs nationally
• Invest more heavily in HR technology - national People Policy service , telephony system
TRANSFORMING ADMINISTRATIVE PROCESSES
THROUGH TECHNOLOGY
20. • Introduction of new business units to create them fully profit-
accountable
• Shift to a flatter organizational structure
• Increased employee empowerment and responsibility
ORGANIZATIONAL STRUCTURE
21. TRAINING AND DEVELOPMENT
• M&S recognised that you need the best leaders and managers to get
you through and out of the recession.
• During 2009 M&S spent more on leadership and management
training than previous years
• The retail training function focused on developing the skills that
would make the biggest difference in both the short and long term.
TRAINING AND DEVELOPMENT
23. • Equal Opportunities Policy
• all decisions relating to employment practices are objective
• Employ a workforce that reflects the diverse community they serve and maximizes
personal and commercial opportunities
• Review changes in attitude and application of internal policy
• Raise staff awareness by designing and delivering training programmers that
support the Equal Opportunities aims.
• Comply with the law and communicate to their stakeholders the responsibility to
protect both individuals and the company.
• They also recognize that it may be necessary to make reasonable adjustments to
ensure that disabled workers or applicants are not placed at a substantial
disadvantage by a practice or policy that exists at M&S.
DIVERSITY
24. • Pay- review the basic pay every year
• Employee discount
• Holidays
• Bonus
• Pension
• Life Assurance
• Sharesave
• Salary Sacrifice
• Discounts
• Health & Wellbeing
• Charity Volunteer Day
REWARDS AND BENEFITS
25. Lifestyle Options
• Flexible working
• Supporting working parents
• Supporting careers
• Supporting the community
• Supporting you
LIFESTYLE OPTIONS
26. Employee Engagement
• According to the HR director of M&S Tanith Dodge, the company
emphasizes on four factors to engage its employees.
These four factors are:
1. Opportunity and Well-Being;
2. Pride in the company;
3. Trust and
4. Involvement Opportunity and Well Being
EMPLOYEE ENGAGEMENT
27. Employee Engagement
• Internal social media network Yammer helps bring workers together,
as well as congratulate them for hard work.
• Employee-of-the-month award
• Staff performance incentives
EMPLOYEE ENGAGEMENT
28. • Enhance life of our customers by providing high quality and
innovative products in the field of clothing, food and home products
with a special focus on making sustainable future
VALUE PROPOSITION
29. Value Chain
Capability Sub-Capability Practices Metrics Gaps Addressed HR Strategy
Solid
Infrastructure
Warehouse
Construction
Distribution
Centers
Retail Chains
Strategic Location
Planning
Distance Travelled
by Transport fleet
Procurement
locations
Fuel costs
Areas not covered
by retail outlets
Visibility gap
Increase in
Procurement
options
Recruiting
Operational
experts
Marketing
Strategists
30. Capability Sub-Capability Practices Metrics
Gaps
Addressed
HR Strategy
Logistics
(Inbound &
Outbound)
Inventory
Management
Global & Local
Sourcing
Channel Operations
Inventory locations
placed close to
customers
Sourcing very close
to the place of
origin
Wide range of order
and delivery options
Demand-supply gap
Amount of potential
customers in an
area
Transportation costs
Availability of
material
Speed of delivery
Costs are reduced
to a great extent
Increase in
transportation fleet
Competitor speed is
matched
Competencies to
analyze gaps and
metrics (analytical
ability)
Retention and
Engagement
strategies for the
fleet of drivers
31. Capability Sub-Capability Practices Metrics
Gaps
Addressed
HR Strategy
Services
Customer
Engagement
Internal
efficiency
“SHOP YOUR
WAY” model
(ordering online
and in-store
collection)
Staff Zoning
(also included
increase in
staff)
Percentage of
sales through
online portal
Increase in
customer
footfalls
Customer
Satisfaction
Index
Lapsed/Potentia
l customers are
brought within
the ambit
Help needed by
customers is
always available
Effective hiring
policies and
procedures to
enable efficient
and prompt
service (Training
Needs)
32. Capability Sub-Capability Practices Metrics
Gaps
Addressed
HR Strategy
Marketing and Sales
Promoting exclusivity
Branding
Advertising
Bringing in the
“English” flavor into
the promotion
campaign (reliance on
the British brand)
Sub-branding
Strategy
“Your M&S” campaign
(Core brand)
Traditional ads (Print,
TV, etc.)
Market Research
Surveys
Monthly/Annual sales
figures
Cannibalization figures
Concentration on a
single brand through
various sub-brands
Brand Visibility
Rewards and
recognition to the
sales and marketing
teams to bring in the
necessary amount of
motivation (being the
central revenue
generating exercise)
Perks for crossing
minimum sales
numbers
Engagement activities
to perk them up
33. Capability Sub-Capability Practices Metrics
Gaps
Addressed
HR Strategy
Technology
Automation at
various levels
Store Design
Auto-generation
of order forms
and delivery
details
Online Shopping
Ease and range
of shopping is
increased
Order and
delivery time
Customer
satisfaction
Index
Store
revenues
Time spent by
customer in a
store
Competition
from other e-
commerce giants
Decreased
revenues and
low interest
among
consumers
Recognition of
technical
competencies
for the
recruitment of
suitable
candidates to fill
up these
positions of
responsibility
34. GLOCALIZATION
• Organization should hire/ promote locals to help in designing the products
which better suit the market needs while still maintain the international
appeal.
• More people from the local geography should be added to the board of
directors of M&S per country.
• Acceptability of ideas by the employees
STRATEGIC RECOMMENDATION
35. RECOMMENDATIONS TO IMPROVE HR
1. Promote Plan A
2. E-learning/Training
3. E-HR
4. Talent management/Succession planning
• Predictive algorithms
• Promote from within
• Use competency based selection process for hiring
• Use local talent to reduce mobility expenses
36. M&S.com
• Advantage : penetration and presence
• Challenge : price sensitive purchases
Right Locations
Premium products -> expensive -> not everyone can buy
Managing Compensation Expectation
• Wafer-thin margins and scarce talent
• Pay matters more than organization
Rewards and recognition
• The retail sector in India is not considered as an important industry
• high churn rate and low morale
M&S in INDIA
