A REPORT ON A PROPOSED RESTRUCTURING STRATEGY FOR MARKS AND SPENCER GROUP,

BECKY WASE DIOR.
FLORENCE MANU.
STOIK MUSAH.


16 NOVEMBER 2006.



.



1 EXECUTIVE SUMMARY.
The subject of this report centres on the possibility of Marks and Spencer Group to keep profit growing and its recent sign of improvement,amidst strong opposition from companies like Tesco in its core retail operations.The management intends to explore the complexities involve within , outside and internationally –of these envisaged challenges ,and requires advice on the possible strategy for the application of a change management initiative for the Marks and Spencer Group.For this reason ,since Marks and Spencer is a global company .The report discuss indepth ,literature studies in domestic and international retail operation.It explores the general management of retail expansion, strategic withdrawal,divestment,investment in non food retail areas, and complexities in the learning process of retailing formats.It is believed that a comprehensive understanding of the idea behind each critism and strategies, will help inform better judgement on the subject.



2 INTRODUCTION.
This report centres on the activities of Marks and Spencer Group within the ever changing international and domestic retail industry.It explores the activities of its competitors particularly Tesco Plc,and other major retailers.For this reason a financial comparism on both company(Tesco and Marks & Spencer) was given with insight on the international presence of both companys.Possible areas of difference was identified between the two companys operation. In understanding these differences , discussions on the wider literature and research studies was introduced on this subject.In the end ,a sustainable strategy based on internal and external analysis,using SWOT Analysis was given.And the human resource and personnel implication of the implementation process of the strategic options, from the SWOT analysis was addressed, with detail insight on the specifics inherent in every item on the strategic options given.This was followed by a short recommendation on the reengineering process for M&S.


3 MARKS AND SPENCER OVERVIEW.
Historically Marks and Spencers relationships with its customers and suppliers was admired worldwide as the UK leading retailers of food , mens,womens and childrens fashion(whitehead 1994).These products form the core business together with home furnishings, accessories and financial services, which were introduced in 1985( Smith Bearney Cited in Withead 1994).Marks and Spencer has being built on a philosophy of a top down management approach to its formal operation(Tse 1982).Until the late 1990s Marks and Spencer was hugely successful both in terms of profit and market share .The company achieved this position and maintained it by establishing a set of fundamental principles which were held as core and used in all of its business operation(Tse 1982).But today the UK retail industry has changed dramatically and traditional stores like M&S in almost every other country face similar challenges. Specifically retailers of other brand in low cost fashion, are taken business away from department stores and established chains. At the same time supermarkets have moved aggressively into selling cloths, household goods and prepared meals(pioneered by M&S).The British firm has struggled , sacrificing its legendary high quality and employee friendly culture to make the cost savings needed to keep profit growing.M&S problem began in October 1998 when it halted its expansion programme in Europe and America (Beaver 2001).However in 1998 ,the company admitted having financial difficulties worldwide, having been hampered by tough trading conditions.In November that same year M&S announced a 23 percent decline in first half profit causing its shares to fall drastically- this was blamed on a turbulent competitive environment from its competitors who were offering similar priced goods,yet more design focus with uptodate fahion,and of which comparism could be made against the more traditional M&S merchandise.(Nardine Collin 2004).To overcome these difficulties ,M&S has began implementation of various restructuring strategies from splitting the company into three: Retail Business, Overseas Business, and Financial Service. Alongside the company has embarked in a companywide strategy to breakdown the power of the traditional consumer buying perception which was established around the product line , as well as the application of current basic retailing skills in a lot of its area of operation(Economist 7/17/2004).

4 TESCOS PLC OVERVIEW
When you consider the approach tesco has taken in penetrating the UK retail industry you will discover that, the strategy of tesco developing market share for goods outside the usual supermarket arena had led to Tesco surpassing other rival retailers to become one of the biggest supermarket in the UK(Palmer 2005).Until the 1970,Tesco operated on the “Pile it High Sell it Cheap Formular” the founding fathers imported from the USA( Corporate Watch).However during this period the UK retail industry was changing , leaving the company with slim margin and a serious image problem.In the late 1970s the company decided to try something new, dramatic and different from other retailers- this early adopters approach of the company has resulted in the many reason behind the company major feat in the UK retail industry .The company launched “ The Operation Check Out” which cut prices across the board and started a price war with major rival retail giants(Julia Finch2004).Tesco decided to modernized itself, closing some unprofitable stores and extensively upgrading and enlarging others .At this time Tesco prioritised the development of large out of town stores where parking was convenient , the selection of goods broad and where a higher volume of business could be generated at increased margins while reducing overhead (Management Today 2003).Then Tesco begin to open petrol stations on the grounds of its superstores .The idea was successful and by the early 1990s according to 2000 edition of Mintels European Retail Ratings ,Tesco was among UK largest independent petrol retailer ,and by 1995 Tesco became the first supermarket to introduce a companywide loyalty card.At first the other retail giants were sceptical about the idea, but the concept caught the public imagination leaving other retailers racing to catch up.These retail giants have eventually follow suit.

5 FINANCIAL STATEMENT AND CURRENT PERFORMANCE OF BOTH COMPANIES.





















































LIQUIDITY POSITION:
The current ratio determine how much of the current asset exist to cover for a company’s short-term liabilities or debt. All through the five years of analysis M&S current asset was enough to cover for its immediate financial commitments compared to that of Tesco, whose Current Ratio only shows high current asset in year 2004 and year 2005. Tescos year 2001 through 2003 current asset position was too small to cover its short term debt. Consequently Tesco may not be able to meet its short-term debt as at when they fall due.However Marks and Spencer Debt liquidity position was very much higher than that of Tescos Plc. Similarly when stock was deducted from the Quick Ratio, the quick ratio figures reflect the same drop,in the current asset position for Tescos Plc, while M&S maintain high current asset over its current liabilities. In otherwords Tesco hadly have the company’s cash tied down in the bank or in near cash or liquid form-the money is always reinvested, leaving no room for idle cash.This is a reflection of the companys ambitious quest to continue its expansion programme in other areas in the retail industry. Unlike M&S tactful and calculative investment drive -the companys high liquidity position reflect the company has at its disposal funds to embark on any change process in its operation. It just need to seek viable investments that generate meaningful return for the owners of the capital invested.

PROFITABILITY POSITION:
The Return on Capital Employed(ROCE) measures the return earned from the use of the companys resources- invested on the business.It shows how much extra profit will be earned by the business.The ratio should be as high as possible to generate profit for the owners of capital invested. Tescos Plc performance in this ratio was brilliant compared to the figures behind M&S. M&S only shows evidence of improve extra profit on resources invested in the companys business in year 2003,at 22.29% increase,this continued in year 2004 with a much higher percentage increase at 31.90% .Year 2005 ROCE was also remarkable-the company came up with a 142.90% increase:the highest through out the five years of analysis-the success of the M&S womens wear division,and that of Per Una Label must have accounted for this brilliant performance in 2005.Like wise,the period of year 2003 through 2005 (of high figures)should be the years of complete restructuring of all M&S operation,when the company realize the need for improvement in the companys operation.
Moreover,the Net Profit Ratio considers the profitability of a business after taking account cost of production and expenses. With reference to the above, Tesco Plc percentage return on profit less cost of production and expenses was controllable too low over the five years of this analysis (2001=3.36%, 2002=5.28%, 2003=5.45%, 2004=5.43, 2005=5.75) .That is to say, controllable in the sense that –from year 2002 through 2005 , the company maintained on average, a 5% return on profit after cost of production and expenses was deducted from profit, compared with that of M&S whose profit was less in the first 2years (2001, 2002) of the analysis, and starts to gain momentum during the companys restructuring years of 2003 through 2005 ( 2003=8.89%, 2004=11.51%, 2005=10.99).M&S profit position between these 3years was far better than that of Tescos Plc.

EFFICIENCY POSITION.
The Stock Turnover Ratio determines,on the average –the number of days ,stock is held before it is sold . If the Stock Turnover period is high , it indicates that too much money is being tied up in stocks, which could have being released to other areas of the business to generate other profit return..Similarly ,if this is done the cost of holding stock as those of warehousing damage , deterioration and obsolescence could be saved. In the same way, M&S (2001=32.9days, 2002=28.0days, 2003=24.4days, 2004=26.36days, 2005=26.28days) indicates the business is holding much of its stock in the companys warehouses unsold in a longer period of time than Tesco PLC .Tescos always low price policy may be the reason why the company maintain less amount of stock in its warehouses-since stocks are always being sold out as a result of consumers increasing preference for product with low price and added value, which Tesco is offering.
In addition , the Fixed Asset Turnover Ratio determines in financial analysis, how efficiently the assets are working in other to generate some form of income /gain /value or turnover for the business. In other word, if there is a high ratio of turnover to assets, it implies a good application and efficient use of company’s assets by management. However if the ratio is low , this implies that the assets are not being utilized effectively enough. That is to say from the analysis , for every 1pound of asset Tescos employ in its business operation –the company generates in (2001=2.27pounds,2002=2.23pounds2003=2.01pounds 2004=2.18pounds,2005=2.19pounds). While in the case of Marks and Spencer , the company generates for every 1pound invested- a return of (2001=1.93pounds, 2002=2.37pounds,2003=2.33pounds,2004-2.27pounds,2005=2.24pounds).
Subsequently the Debtor Turnover Ratio determines if a collection period (In days) is deemed to be too slow .This will ultimately affect the cash solvency of the business, and it is an important consideration in any financial analysis of a given organisation. If the debtor turnover ratio is high , the company should review its credit control procedures. For this five years of analysis on the financial report of both company , Marks and Spencer over 40days (On the average for the five years), is a very long period of time for a company to have its funds in the hands of its debtors compared to that of Tescos Plc(4days, 6days, 7days and 8 days) for the different years respectively. Marks and Spencer needs to review its credit control systems and policies. Perhaps, the collection systems could be improved by given discounts for early settlement or preparing detail age analysis of debts and putting increasing pressure on late payers. Equally, if the creditors turnover ratio is too high, this is seen as the company –taking longer period to pay its creditors and suppliers, which on the fact ,strategically it seems a good thing .However the company should be careful not to get a reputation as a slow payer and find itself on a “Stop List”( A list kept by suppliers and Bankers of customers they will only do business with if goods are paid for –upon collection). Again M&S 121.8days (Minimum period of paying its creditors over the five years of analysis) is a very long period of time with 162.1days in 2005 ; this is just too much compared to that of Tesco Plc. Which on the average-through the five years of analysis maintains a 70days payment period to creditors. M&S should realized that delays in offsetting ones debt may put key suppliers and creditors out of business and take away valuable source of supply and finance credit.

INVESTMENT POSITION
The Earnings Per Share ratio reflects the earnings achieved by an individual ordinary share to anticipate the company’s current investment performance and pessimism in the company’s market future. As an investor, the ratio tells you how much you earn in return for 1pound of your share invested in the company. Between the two companies, M&S earnings per share in year 2001 was up 0.9 p as against Tescos 0.8p.In 2002 M&S was down with 0.4p while Tesco had 0.9p earnings to its shareholders. In 2003 both companys maintain same amount of return to their shareholders. While in 2004 M&S regain investors confidence with 0.17p return to investors as against 0.11p paid by rival TescoPlc. In 2005 Tesco Plc staged a brilliant return to maintain its lead position among investors preferred choice of investment over M&S by offering a 0.29p return on every 1pound shares held by each investor. That same year M&S struggled with a 0.18p return to investors individual share held. In the whole both companys struggled through the five years of analysis to win the confidence of their investors.
Similarly the Dividend Per Share Measures the dividend return of the companys share price and its useful prediction of incoming cash flows from holding the companys shares, if the company pursues a consistent dividend policy. From the analysis both company maintain a consistent growth increase over the five years period of the analysis. But overall M&S figures was the highest. It started with a 0.81p in year 2001, when Tesco was paying out dividend of 0.39 that same year, and closed at 0.64p in year 2005 while Tesco maintains a 0.60p that same year. In addition to the above an investor who want a regular pay out of most of the companies profit should invest in a company with high dividend cover. Notably, the dividend cover ratio shows the number of times that the ordinary dividend could be paid to shareholders out of the available earnings.It gives the investor an idea of the proportion of earnings returned to the companys shareholders.It provides a useful indication of how much profit is being retained for future growth. M&S figures in this report analysis depicts the company only began having –high earnings cover on its proposed dividend from year 2003 through 2005. Perhaps this was the period the company began a massive re-engineering process in its business processes to change public perception of M&S failing performance. This is because , there was a steady growth increase in the figures in year 2003, year2004 and year 2005 i.e (2003=1.95times, 2004=2.1times, 2005=2.89times. This implies that ,in year 2003 the earnings available could cover the proposed ordinary dividend 1.95times , and so it goes for the other years through 2005. Unlike Tescos Plc that has always maintained a high dividend cover from 2001-the companys earnings available could cover the proposed ordinary dividend paid out 2.32 times, in 2002 it was 2.12times, in 2003 it was 2.14 times, in 2004 it was 2.14times and 2005 it was 2.32times. Also from the analysis M&S lower dividend cover in 2001 and 2002 indicates the company was distributing more of its profits to shareholders at those period of time than Tesco Plc does.

LENDING AND INTEREST COVER POSITION.
The Gearing Ratio determines how a company is financed. It determines if the companys long term borrowings makeup a high or low proportion of the company’s capital and reserves. This gives the investor insight ,if the company exist off its own capital , utilize a realistic proportion of its credit potential, or its highly geared and possibly in a risky situation as it is surviving on others capital. From the above excerpt one begins to wonder if the massive expansion (Tesco) and massive restructuring exercise (M&S particularly investment in BP petrol Stations) is brought about with borrowed capital. This is because the high figures all through the five years of both company’s in the analysis, indicates TescoPlc and M&S are highly geared companies or maybe the companies are making use of their credit potentials from their financiers to finance their investment drives . In the same way, the interest cover which indicate if the company is paying more as interest to service debt – is well covered by the net profit of both companies. Come to think of it UK retailers maintain close ties with their bankers, and every aspect of business revolve around banking in the UK.For this reason it is not surprising that companies as these retailers are highly geared.
















6 ANALYSIS OF THE CURRENT UK RETAIL INDUSTRY AND THE MAJOR RETAILING COMPANIES INVOLVED
Since the 1990s, the UK retail industry has undergone a profound transformation. Each retailer has adopted the nature and condition of its commercial range in other to meet with the changes in the environment.(Tordjman1994).The growth in absolute and relative size of the retailers not only replace the manufacturer dominance in the supply chain but also eliminated many wholesalers and started the trend towards backward integration of the retail business- were retailers started looking inwards to modify areas of their operations (Davis and Ward 2000).From the research and studies of Morganosky (1997),there emerge findings that suggest-when an increasing diverse array of retail format is developed , competition between all types of retailers heightens,i.e the present scrabble among the major retailers on the market for ready meals .Today ,the four major food retailers –Tesco, Sainsburys,Asda and Safeway dominates UK grocery retail, others following their lead are Morrison,Somerfield,Iceland,and the likes of M&S and Kingfisher. A brief introduction of the major and dominating retailers in the UK retail industry is discussed below.
Asda-Owned by Wal-Mart Stores, one of the leading US retailers, Asda is the second biggest supermarket chain in the UK with 17% of the market share. This includes sales of non-food items. Asda overtook Sainbury’s in July 2003 (they are now floundering with 16.2% of the market) although it is still a long way off Tesco's almost unassailable 28% market share. As of June 2004 Asda operated 259 stores and 19 depots, mainly in Scotland and northern England, and employed 122,000 staff (Mintel Retail intelligence 2004)
Sainsbury- Sainsbury was UKs biggest grocer until 1995, when Tesco aggressive Pricing strategy and rapid investment on non food retail areas overtook Sainsburys in UK grocery retail. Although Sainsbury operations in the UK reflect brilliant financial performance lately. The company is still behind Tesco in the industry today.(Mintel Retail 2004)
Morrison- Morrison is still struggling to absorb safeway.The company recently sold out 10 of the 52 stores it acquired from safeway to Tesco.There has also being ripple effect in the entire industry lately, as a result of this acquisition by Morrison.(Mintel Retail inteligence 2004)


As this big four become ever more concentrated and consolidated, their increasingly levels of power have provided them with the means to exercise substantial control over the supply chain. Dobson Etal (2003) describe this control as one in which the retailer effectively becomes the “gatekeeper” for access to the consumer ,by maintaining dominance via geographical space and multiplicity of outlet .In this situation traditional retailers continue to operate in a mature saturated market where growth is difficult .The resultant effect is a dominating drive for diversified investments in non food areas .As a result of this phenomenon , consumers are more informed of price variations and search for value retailing , especially in the food sector(Newman and Cullen 2001).The tendency therefore, is for consumers to switch stores or shops in multiple locations at will .The independent studies of (Hogarth Scoth 1999,Shannon1999) claims to have detected signs that British consumers are paying more attention to the relationship between price and performance. Consumers appear s to be shifting away from these retailers strategy of added value on product items ,under which they can automatically charge a high price for brand names, to more value for less money .An example of this can be seen with Sainsbury who was criticized for struggling to reposition this customers expectation , who are becoming more focus on price for value ,following the loss of the market leader position to Tesco- due to the application of this price swap mechanism by Tesco.(Voyle etal 1999).This singular activity and competitive strategy of Tesco has resulted in a situation in which difficult choices has to be made by some retailers to cut prices and struggle to reposition themselves as both price competitive and offering a superior service .It is not too surprising that retailers have opted to differentiate their formats and further diversify in areas seems inevitable i.e Pharmacy,Finance,and Petrol Station ( Asda , Sainsbury,Tesco and M&S has moved in this direction ).Here the struggle is not only in the area of ready meal items for consumers but in other non food areas. These new divergence from core retail business have also influenced the diversification of supermarket format ,where by existing retailers seek to reinvent themselves. Here Newman and Cullen(2001) observe a number of indentifiable retailers responses as seeking out of town outlet for massive space ,including car park for customers ,changing store image by adopting exclusive internal design-as its being done by M&S , organizing welcome greeting and choir songs for customers at the entrance door-Asda does this as well, Changing opening times –some retailers open 24hours of the day. Similarly retailers as Tesco Plc in the course of customers operation, open a new cashier till, when ever there is more than two persons waiting on a cashier till.

7 INTERNATIONAL RETAIL OPERATION OF BOTH COMPANY.

International retailing has being an important factor between supermarket giant within UK retail environment. Since the late 80s all through the 90s many major UK retailers has increasingly embraced this phenomenon in their activities amidst the ever saturated UK retail industry. While successful international activities may act as a catalyst for further international activity, it is also true to say that retail companies react in this direction as they learn particular valuable lesson from experience of other retailers in the international market(Alexandra and Quinn 2002), and they inturn follow suit to take advantage of the same opportunities.
However there are different studies in this perspective, but a common area peculiar among all international retail literature in this subject – is in the major retailers activities towards expansion, strategic withdrawal(Burt 1986;Tordman 1988) ,problems encountered in these foreign market (Alexander 1990) and diverstments(Fletcher 2001).The general management on these issue, and the understanding of international retailing activities can be only developed through the examination of actual retail case histories. Their experiences actually reflect the experience of a significant number of UK retailers in overseas markets. This report now briefly examines the international activities of Marks and Spencer Group and Tesco Plc in the context of the wider literature.

MARKS AND SPENCER
Marks and Spencer international retail activities has been marked with successful performance in the past and also relatively below industry standard in recent years.The company first attempt, at internationalisation was through exporting .As a result of its close and controlling relationship with suppliers ,which we discussed in its overview ,M&S was able to develop and export its unique private label brand: St Micheal to countries as Canada – which was its first area of international operation .In 1975, through a joint venture approach to market penetration with Cortifel : a retailer and manufacturer in Spain ,the company subsequently moved into a number of European markets(Briggs 1992).First it was France and Spain , its expanded through company owned store in Belgium,Ireland,and the Netherlands( Quinn and Alexandra 2002). Again through franchise operation the company expanded through Austria, Gibralter, Greece, Hungary, Malta, Norway and Portugal in the 1970s,1980s, and early 1990s (Alexandra 2002).During this period M&S undertook expansion from Canada to the US. In the US, the company acquired the Brookes Brothers Men’s Wear Retail Chain and the Kings Supermarket operations- a small New Jersey food retailer with 47 stores in the US ,and 21 stores in Japan(McGoldrick and Blair 1995).The Brookes Brothers 21 stores in Japan was the gateway for the companys expansion in the Asian markets of Singapore,Malaysia,Philipines and Korea. This number grew to 148 in 1999 with franchise stores in Hong Kong (Croft 1999).
In the late 90s, particularly 1997 the company took a giant step in its international operation amidst the saturation of its UK domestic market to engage in an ambitious expansion programme to increase further expansion in France, Germany, Hong Kong and the launch of a new franchise operation in Poland and Australia in response to global dictate of off shoring (Olins 1997).The result of this bold step was the weakening of the company home base operations. The company was facing harsh trading conditions as a result of poor UK clothing sales, amidst other trading clothing labels like Gap, Next,Primark,Newlooks,Acadia Group etc, subdue demands in Asia , and a disappointing sales in the Canadian market, for the St Micheals design to sufficiently understand the Canadian market(Piercy 1999). Also at this same period ,power tussle in the board of the company began to raise public concern on the management of the company. Similarly trading in Germany and other Europe market soon began to give the company cause for concern. Consumers quest for price and trendy fashion fail to see the value of the St Micheal brand. Subsequently price were cut and the company took step to improve its performance(Retail Intelligence 1999). The company began to cut down, on its international operation .The company sold off its retail chains in Canada , it reduces the companys presence in HongKong and the franchise operation in Malaysia,Korea,and Singapore. And in 2001 the management decides to effect the closure of its European subsidiaries, and its Brookes Brothers and King Supermarkets in the USA. The company indicated that its immediate focus would be on the core UK market to address the problems encountered in that market (Corporate Watch 2004).


TESCO PLC
Tesco success in recent years was brought about , mainly from overseas expansion. As the company engage in massive expansion overseas , its operations diversify to higher margin non food merchandise and at the same time regularly supporting and improving a strong UK core business, which was cultivated on low prices, building customer loyalty, and expanding into other retail services as legal,insurance,banking and telecoms services (Data Monitor 2004). Tesco initial international advancement was in 1979 when the company purchase the Irish Three Guys Retail Operation. This was subsequently divested to the Dublin based supermarket company HWilliams in 1986 due to problems of immature structural capacity for expansion of the company within their domestic market (Palmer 2005).In the works of Muskett(2000 ), his research findings on Tesco international operation reveals that towards the end of the 1980s, the company embarked on research efforts into possible international growth options and this primarily centred on the US market but also covered several European countries –the company spent several years engaging in these market analysis, in the end the product of this research effort was the Buyout of Catteau – a national retail chain in France. This move by the company serves as a platform for its future European expansion. Later in 1997,Tesco withdraw completely from France and focus on emerging markets in eastern European Countries, were strong retailing activity as in the UK was absent. The company acquired a global supermarket chain in Hungary –in total of 43 small stores (Palmer 2002). The intention of the company was not to trade the stores in the longterm like the French case : Catteau, but rather to secure a foothold in the market and learn from these businesses, while later building a larger hypermarket business based on their experiences. Through this means the company subsequently acquired in 1995 Savia SA – a retail chain 36 small stores in Poland. In 1996 the company penetrated the Slovakian market ,through the acquisition of Kmart. At the peak of the companys voyage in these emerging economies , the company re- entered the Irish Market: prior to this period the company pulled out of an Ireland Operation which was running at loss. The second attempt on the Irish market with the acquisition of ABF Irish Food retail chains became a major break in the performance of Tescos European operations. Following this acquisition the company secured a position as the largest food retailer in Ireland with 109 supermarket stores (Palmer 2005).The success of the Irish operation was followed by another international expansion programme in Asia. Tesco bought a contolling stake in Lotus ; a retail chain of 13 retail outlets stores –which presently has 64 stores in Thailand. In Korea the company formed a joint venture with Samsung ,one of the countrys largest conglomerate to maintained hold in the Korean market. Through this partnership Tesco entered the difficult Japanese market painstakingly in 2003, through equity stakes in CTwo Network- a successful retailer with 78 supermarket chain in Japan ( Corporate Watch 2004). During this period Tescos stores in Malaysia SDN BHD was also established as a joint venture with a local company SimeDarlyBehad in 2002. Although the company was placed under strict government regulation to control and curtail its expansion programme in the country, Tesco eventually has as at today 5 functional stores in Malaysia with plans to open more (Corporate watch 2006).


COMPARISM
The cases presented above clearly demonstrated that retail internationalisation is not a purely progressive process of contemporary academic principle of business operation and management. Learning about strategies in retailing, were different global markets and market conditions are involved , for expanding firm , is not just about analysing trends and anticipating what steps ahead- one get lost somewhere along the line in the process of analysis. For getting a perfect strategic fit sometimes entails : the longer you are in that direction of international global complexities the closer you get to what you need to succeed .This section provides an overview of the measurable extent of knowledge emerging from the activities of the two companies international operations. The important lessons learned are compared under the following headings.


ORGANIC STORE BY STORE DEVELOPMENT
The ambitious international expansion programme of marks and spencer group plc by penetrating several market at the same time at the height of its weakening performance in UK domestic market ,exposed the company to multiple risk of massive start up loss. Alternatively a store by store development program allows for a more strategic approach to internationalisation. The logic behind this approach by tesco is the use of such single unit stores to develop knowledge of the international competitors that has already establish there . Another reason is that , the small presence would facilitate the inplementation of an acquisition strategy by securing the necessary contacts and networks into foreign retailers and local suppliers ,especially considering the challenges associated with family owned and controlled chains .Also,retaining a direct and small operating presence in a competitors major market would lead to important insight into the competitive behavioural dynamics of competition that otherwise would not be possible without a direct presence(Palmer 2005).Strategic in terms of the choice and selection of market – some companies look at emerging economy with high income and population, also proximity in procurement and distribution as well as the store location in the overseas country. This strategic learning process allows you to have the lowest cost base. Unlike Tesco whose expansion was spatially characterised as being regional in nature and less global oriented.Tesco decision for penetration and dominance of the central and eastern European markets arises from reasons –that the chances of large retail multination companies (like Wallmat) presence was slim. The company thus incrementally entered these markets rather than entering the different eastern Europe countries market at the same time


APPLICATION OF MULTIPLE MODE OF ENTRY IN FOREIGN MARKET.
Marks and Spencer mode of entry in most cases in foreign markets was through franchise arrangements apart from the US and North America operation. Where the Brookes Brothers operations which included 47 stores was acquired by the companys Canada operation .Even at that, other similar acquisition in Europe reflect franchise characteristic with a mixture of joint venture approach. Only in the partnership with Cartifiel the Spanish retailer and manufacturer that this was not the case (Briggs 1992). Similarly this was Marks and Spencers first joint venture in the course of this study .Overall there exist in the company international operation (i)franchise(ii)joint venture(iii)acquisition of existing retail chains. Unlike Tesco whose mode of entry in the companys international operation fall under all three, alongside application of other multiple entry mode strategies within one and different countries in eastern Europe, by acquiring relatively small convenience stores in Hungary,a supermarket business in Poland and a departmental store in Czech Republic and Slovakia(Changs 1995).This was very unusual for such a large company to acquire single supermarket store in the form as above.The logic behind this approach by tesco is that , the small presence would facilitate the implementation of an acquisition strategy by securing the necessary contacts and networks into foreign retailers and local suppliers

EXPERIENCE AND THE KNOWLEDGE THAT A STRONG MARKET POSITION OF AN ACQUIRED COMPANY SOMETIMES ABSORB MISTAKE.
The advantages of a dominant market position by the acquired company for learning lie in the success that such a position implies.A small market position hardly absorb relatively small mistakes. In the course of M&S expansion it appears that M&S was just concern in establishing presence in countries of her export operations- at the initial stage emphasis was not much on dominating the market they operate in, unlike Tesco that seek not only to penetrate but establish a strong market leading position. Think about all the emerging market the company operates in –there exist evidence of aggressive expansion and dominance within a short period of time.

EXPERIENCE WITH LEARNING PROCESS AND STRUCTURES ABROAD.
Ascertaining whether a firm possesses an intent to learn is an important factor influencing their learning behaviour(Tsang 1999).Intention relates to commitment. On the surface it appears Tesco possesses a learning intent. In the studies of Tescos international operation by Tsang (1999), management was asked to discussed the structures and processes through which the international learning was disseminated back to the UK market .Critically the company’s expansion into central and eastern Europe coincided with the company’s ambition to broaden their non food merchandise in the UK market. The moving force was then on the diffusion of what the company had learned from developing a new format which accommodated non food items in overseas market. This had a catalyst effect, overtime the company began to employ personnel whose sole responsibility was to transfer the company format learning back to the UK from abroad. At the home market (UK) Tesco adjusted operational retailing activities, sometimes with minor modifications and at other times ensuring fundamental transformation of the format. Analyst believe this is an area companies could learn and experiment at the extremities of the company(Wigley2002).Even at that, internationally, the company competes directly with some of the best food retailers in the world notably Carrefour,Auchan,and Ahold, as a result the company is better informed on how to merchandise non food departments. Through this process management form more realistic perception of foreign market which they apply in the UK market ( Alexandra 1997).





HOME BASE STRENGH DETERMINE PROWESS ABROAD
This was the particular reason that prompts M&S withdrawal of its international operation. The failure of the company’s operation in its UK market to compete effectively with present day events resulted in a complete disorganization of future prospects in its international operation – for majority of its international outlets are dependent on its UK operation. Similarly a disruption of M&S UK operation tend to reflect in its overseas operation .Thus if you are struggling in your domestic market, what credibility do you have to show that you can manage a business in another country.Tescos international operations programme was driven by a relatively strong domestic position. Critically its international integration process was actually supported from earnings from the company’s core UK businesses.


INSTITUTE INTERNATIONAL LEARNING STRUCTURE.
Within the context of international retail expansion, Alexandra(1997) suggested that retailers have lacked systematic internal processes to support their decisions with respect to appropriate host market strategies.As far as internal learning structure is concerned. It is proposed that innovations and continuous improvements are more successful attained by the proactive formalisation and development of internal learning mechanisms. This learning structure M&S lacks, as a result, it failed to understand its environment of business. Every of its operation was centred on routine bureaucratic practice of age long tradition. Prior to the company’s present restructuring exercise, senior management appointment was exclusively reserved for those who grow through the organisation career path. The company looks inward for everything without looking outside the box.


8 PROPOSED SUSTAINABLE STRATEGY FOR MARKS AND SPENCER REENGINEERING PROCESS USING SWOT ANALYSIS.

Before discussing indepth the diagnosis process of a sustainable strategy for Marks and Spencer . It is important to first provide a useful conceptual framework for examining what is required for the re-engineering process. This is carried out by conducting a conceptual internal and external analysis of (i) the company (ii) its operative environment and (iii) and business strategy, using SWOT analysis.

EXTERNAL ANALYSIS

MACRO ENVIRONMENT: Presently the UK competition commission investigating UK supermarket retailing activities on behalf of the office of Fair Trade for existence ,or possible existence of monopoly situation in relation to the supply of groceries in the United Kingdom (Andrew Hollingsworth 2004). The investigation areas of focus were primarily of: barriers to competition, intensity of price, and the exercise of buying power in the supply chain. The objective of the commission is to break large supermarket chain as Tescos Plc to provide fair competition in the retail industry .The need for this objective came to the fore after the various complexities that arises as a result of the bidding for Safeway Stores retail chain. If this eventually works out as proposed perhaps, there is possibility of a new system of approval for supermarket development. All this development is aimed at reviving the ailing UK economy by encouraging retailers like M&S at the other end of the industry. Economically, although the industry is saturated there is still other related non food areas that is yet to be exploited-today the high street food chain hopes to have an extra 200 outlets in British Petroleum Garages. It will launch more into instore bakeries, restaurant and deli (The Sun Wednesday, November 8, 2006.pp44). In the same vain, income and purchasing power tend to be on the rise in the UK as a result of organisation insatiable demand to run processes to meet global dictate. And people are utilized for this process – given them opportunity to earn more and at the same time cutting them off their domestic life. There is the need for availability and convenience of ready made food items on the street to compensate for that loss of domestic cooking routine practice. What consumers require now is the convenient food items that will fit in their round the clock work schedule. Also the introduction of B2B internet exchange site and world retail exchange has helped Marks and Spencer a great deal to achieve the above excerpt (Andrew Hollingsworth 2004).

MICRO ENVIRONMENT.
Apart from Tesco and Asda whose dominant influence is felt in the UK retail industry.The only hang on major retail supermarket chain is Sainsbury , and internal problems and strategic errors have left Sainsbury struggling lately( Coporate Watch 2006).The company believes it could abandon the classic focus on price in favour of refurbishing its stores ( their own term for aesthetic design) and supply chain improvement .The company’s loss of market share to Tesco illustrate evidence of struggling performance. Infact internal boardroom issues resulted in the resignation of the chairman in July 2004(Corporate Watch 2006).The other retail giant in the picture is Morrison Stores, who is still struggling to complete fully its integration process after it acquired Safeway. If M&S reposition itself firmly in its everyday commodity food product, with calculative timing, it can compete favourably with Sainsbury in the area of geographical coverage. At this end Marks and Spencer can stand tall to face Tesco with the high street retail giant (M&S) meal solution. The company’s M&S brand in its product still enjoys wide positive appeal for value and quality, irrespective of present ailing performance. Asda parent company (Wallmat) is still indecisive to establish fully in its Asda UK operation.

INTERNAL ANALYSIS.

STRENGTH AND RESOURCE CAPABILITIES.
When it comes to business operation in organisations, brand image means almost everything to a considerable extent influences what choices –consumers make , and for a longtime now M&S enjoy this patronage. For any consumer searching for good quality need not look further than the company’s own St Michaels Brand Label (Benady D 2005).Without exception this apply to foodstuff, clothing and other non food items .Futhermore the company has the facilities and the structures in terms of asset ,chains of outlets on ground which it has acquired over the years .This can be constructively utilized to reposition the company to start a fresh. Similarly the proceeds from the sale of its international operations can also serve to suit this purpose as well .

WEAKNESS ( COMPETENCE).
From research findings it is obvious that the company possess only a handful experts and people who have the knowledge to provide specialist service at the strategic decision level of the business to improve performance . At the management level the people component appeared far less radical in thinking. They engage in strategies which on the surface appear necessary but in reality are not sufficient to deal with the magnitude of M&S problems. And this reflects in the working culture of the line management and inturn on the staffs working at the level of clerical operation and shop floor. The working culture was marked with bureaucratic and rigid procedures with a resistance to change . Other areas of weakness were in the area of its service standards, and lack of appeal of the St Micheal brand to the under 30s age bracket(Tony Grundy 2005).


From the foregoing the factors for analysis can be simply reduced to the following bullet points below.( See Appendix for figures)

STRENGTH

• High Brand Recognition (30) .
• Facilities and Resources. (13)
• Partners and Alliance (15)
WEAKNESS

• Mgt (recent take over battle ) (7)
• People (Competence) (3)
• Failure To Appeal to
the Under 30s age bracket (5)


OPPORTUINITIES

• Favourable Legislation (6)
• Consumers Changing Habit (5)
• Worldwide Retail B2B Tech (5)
• Clarify Brand Message through new
M& S Brand campaign.

• Signs of recovery in Germany which should help lift all European market.
• Falling prices for items has stimulated demand and a more impulsive driven market.


THREATS

• Activities of Competitors(Acadia)(15)
• Brand Not Trendy Perception ( 12)
• Management Incompetences (7)




STRATEGIC OPTIONS PROS CONSTRAINTS
1) Partnership and Alliance Help you to stay informed and broaden your perspective Fear of acquisition attempt.
2) Brand Repositioning The brand clearly has considerable economic value. An extension of the branch can generate cash flow Fear of not administering the right standard. i.e. Loss of public respect in the brand
3) Facilities and Resource utilization Resources can be used to affect change process.BPO,TQM,KBS processes can be use to improve business operation. Company’s credibility can facilitate credit. Inability of the management to maximize the use of M&S facilities and resources.
4)People competence Scout for change agents and drivers of change. Partnership with reputable MNE in people development program can help lay a foundation for this.i.e worldclass retailers like P&G. Management awareness of the need for strategic Human Resource Practice in the overall reengineering process.
Key words- KBS: knowledge base system, BPO: Business process reengineering, TQM: Turn Around Quality Management.



9 HUMAN RESOURCE IMPLICATION AND STRATEGY IMPLEMENTATION.


PARTNERSHIP ALLIANCE
The biggest theory in managing systems and processes in the models of Human Resource function is business partnering. This new paradigm is the future direction of the HR function using Ulrich (2005) business partnering model. The company can affect its strategy on partnership via the following components of the Ulrich model.
Shared Services:
Here the company can engage in streamlining of its systems and work process to make them more efficient. Department and units that show areas of underperformance are made redundant. And important functions that require specialist functions like data process, learning structures are outsourced to specialist consultancy units. Consider the performance of M&S relationship with George Davis (formely of Next)to form an alliance to create a new sub brand called Per Una. The result was a brilliant sales performance on that label displayed in the same store where other M&S label was displayed (Collier 2004) other partnership as this should be encouraged in other facets of the organisations operations.
Centre of Excellence.
Seek expert in various field of the organisation areas of interests in the company’s operation. Maintaining a league of resource persons, investment banks, financial advisors both internally and externally who have knowledge to provide specialist services to the business to improve performance. The HR function here is to link their expertise into every single area and level in the organisations structure.

Strategic Partners
Set the company to work very closely with worldwide leaders in retailing business. Tesco funds a partnership with Procter and Gamble leadership development program to help train Tesco’s senior management staff on Global Retailing Strategy (Mark Palmer 2005). This can act as an agent for transferring knowledge regarding the dynamics in other international markets- in effect accelerating the learning curve for a less experienced retail multinational.

Organisation Employee Involvement.
The Human Resource Function should have as its objectives in the change process of Marks and Spencer to help make employee contribution align with partnership, with institutions as(i) consultants, (ii)outsourcing organisations and (iii)investment banks.

BRAND REPOSITIONING
Developing the strength of a brand is not deemed to be easy. There is no single approach to developing a strong brand. Branding logic appears to vary for each individual brand. For example Marks and Spencer brand power is different from Tesco’s even though both are all strong brands in the global retail category. While marks and Spencer is a long established brand, Tesco emerged only recently and is as well a strong brand.Think about the sales performance of Tescos Clothing labels-cherokee,florenceand fred,and agels and heroes jeans Therefore the alternative path to consider in building a strong brand need to be better explored. Like the goal of logically creating to be different or develop what is broadly conceptualised as “brand meaning”.( C.K. Keller 1999). By this reasoning, managing the brand by creating meaningful association is the central task. The goal is to keep consumers actively engaged with the brand and to cultivate meaning. Within this perspective, managers need to find a consistent fit with all of the business decisions that could potentially affect consumer initiated brand meaning like especially the value that brands hold in being able to increase demand. Some brands are thought to be attractive due to their potential uses. This expectation and perception can alter consumers’ behaviours that affect the product. (Mark Kay 2003). By contrast if these techniques can alter behaviour, behavioural change can also be altered if marketing considerations are designed to manage these behavioural changes towards these expectations about the M&S brand. Another way is that M&S can redefine their brand by connecting it to distinct social values to appeal to customers’ perception like price or other consumers’ perception and loyalty to the brand.The sub branding by the company lately is a welcome development.These sub brands are:



WOMENS WEAR- MENSWEAR
• Look behind the label, .Blue Harbour.
• Body, .Blue harbour vIntage
• Truly you, .Collezione,
• Ceriso, .Autograph,
• Adored.,
• Per una,
• Limited collection,
• Autograph,
• Classic,plus,

MATERNITY,
• Look behind the label,
• Body,
• Truly you,
• Ceriso,
• Adored.






FACILITIES AND RESOURCE UTILIZATION.

Business Process Re engineering:
This requires taking a comprehensive view of the whole exisiting business. It involves thinking about what must be done,why it must be done,and how to go about the restructuring exercise(Gibson etal 1999).Business Process Reengineering encourages organisations to think about the acceptable processes of business operations within organisations and to question whats the alternatives to improve business operations within and between organisation.Before performing this process the HR function should perform business process management that define the process and activities of Marks and Spencers Group, and build standard process guidelines and performance benchmarking that support this process(Leonid and Alexander 1999). This it does by(i) Simplifying the organisational structure(ii) Remove unnecessary business processes(iii) increase greater flexibility and ability to change based on market condition(Leonid and Alex 1999).

Knowledge Based Systems:
This technology may be applied to a wide variety of human resource management activities to motivate employees and thus facilitate the effective use of its workforce (Donnell 1990). It can be used for manpower planning, recruitment, selection, staff development, performance appraisal and regulatory compliance. The objective is to get the right number and types of employees doing appropriate amount of work at the right time. Three basic phases are involved i.e. (i) Forecasting the future demand of a particular skill (ii)Analyzing the supply of resources and (iii) reconciling the most critical discrepancies between demands and supply by initiating or modifying the HRM activities.



PEOPLE COMPETENCE.
In the battle against competitors, the skills and motivation of the employees are important strategic aids in the realization of the company’s objectives. Strategic responsiveness in turbulent times requires individual competences and fundamental personality characteristics that are inherent in a persons action in relation to all kinds of tasks an situations (Jay.D.Jurie 2000). This involves being agile, open to the environment and capable of picking up those weak signals that are indicative of the need for change. The focus in the above excerpt is on competence necessary to perform certain duties in a superior way. As far as knowledge and skills are concerned, many people are equal as can be seen from: for instance, Diplomas, Certificates, and work experience and work results. It is precisely the employees’ effort, enthusiasm, motivation and self image that distinguish the successful employee (superior performer) from the unsuccessful one. The company should therefore consider the identification of the competences alongside the recruitment and retention of employees possessing these (buzzing) competences as one of the core objectives of the strategic staffing embedded in their strategic Human Resource Management practice. For this will help to facilitate superior work performance in the organisation work process.The appointment of Yasmin Yusuf as creative director –help the david beckham 07 label for boys.





10 RECOMMENDATION
From the foregoing, the future in the application of change management initiative for the Marks and Spencer Group, will consist of the management of M&S diagnosing the current state of the organisation from the mental framework of the paradigm highlighted in the analysis above and formulate a vision of the desired future state of the organisation. This vision must be continually and collectively constructed in the re engineering process in line with the strategic options. which is followed by a consistent upgrading of systems and structures which facilitate improvement in efficiency and effectiveness of the specifics inherent in every item on the strategic options.
Any tangible changes should be recognised and acknowledged and measured over a strategic parameter to review where the change process is in accordance with the company vision. Where there exist areas of failing performance, adjustments should be made. And automatic response to redress areas of failing performance should be instituted, when they don’t measure up to standard. To set the organisation in the direction of the vision again. This should be a continuously reviewed process until a desired balance of strategic fit is attained.
Although this is an evolutionary process,that requires a considerable time frame. A genuine commitment from organisation participants and involvement of resources constructively in line with the stated strategic option will to some extent successfully guide the organisation towards the path to recovery.






REFERENCES

Alexander, N. and Quinn, B. (2002) International retail investment. International journal of retail and distribution management, vol 30 No 2, pp. 12-25.
Alexander .N. (1990) Retailers and international markets; motives for expansion, international marketing review, vol 7, no4 pp. 75-85.
Alexander, N. (1997) International Retailing, Blackwell Publishers Oxford.
Beaver, G. (2001) Competitive advantage and corporate Governance: Shop soiled and needing attention, the case of Marks and Spencer PLC. A strategic change journal, vol 8, 1999, pp. 325-34.
Brenady, D. (2005) Will the real Marks and Spencer Stand Up? Searching For That Winning Brand. A Strategy Change Journal Vol 21. No 9.
Briggs, A. (1992), Marks and Spencer plc, international directory of company histories. St James press, Detroit, MI vol Barbour pp. 124-6.
Burt, S. (1986) The Carrefour group-the first 25 years, international journal of retailing, vol 1. No3 pp. 54-78.
Changs, S.J. (1995) International expansion strategy of Japanese firms: capability building through sequential entry, academy of management journal. Vol 38, No 2 pp. 11-27.
Data monitor (2004) food retailing analyst.
Davies, B. and Ward, P. (2000). Space allocation in the Uk grocery retailing. British food journal, vol 102, No 5/6, pp. 406-419.
Dobson, P. et al (2003) The patterns and implication of increasing concentration in European food retailing, A journal of agricultural economics. vol 54, No 1 pp. 111-25.
Donnell .O (1990) The Procedure of determining the order, Picking Strategies in a distribution centre, An International Journal of Problems Economics,Vol 60 pp301.
Economist, 2004, Has Stuart Rose seen the future of retailing 7/17/2004? vol 372,issue 8384 available: http// web.ebscohost .com/ehost/detail
Finch,J. (2004) super market wseep, the guardian 2004
Fletcher, S. and Godley, A. (2001)International retailing in Britain, 1850-1994, The service industries journal, vol 21 No 2, pp. 31-46.
Gibbson et al (1999) Enterprise Resource planning: A Business Approach to System Development: In Proceedings at the International Conference on Business Systems Science, 4-6 November, Hawai pp 161-169.
Groft, J. (1999) Marks and Spencer: Uk retailer to sell kings, Financial times.
Grundy, T. (2005) Business Strategy, reengineering and the Bid Battle for M$S. A strategic Change Journal, june july 2005, Vol 14 pp195-208.
Hammeth Steve and Mcmeikan, K. (1994) Tesco- Competitive management development. A journal of executive development, vol 7, No 6 pp. 4-6, MCB University Press.
Hamel G and Prahalad C.k, (1989) Strategic Intent, Harvard Business Review Vol 87 No 3,
Hamel G and Prahalad C.k (1990) The Core Competence of the Corporation, Harvard Business Review, Vol 68 No3.
Horgarth Scott, S. (1999) Retailer- supplier partnerships: hostages to fortune or the way forward for the millennium? British food journal, vol 101, No 9, pp. 668-82.
Hollingsworth, A. (2004) A Case Study of Increasing Retail Concentration: Evidence from the UK Food Retail Sector. A British Food Journal Vol 106. No 8 pp629-638.
Jurie, J (2000) Building Capacity Organisation Competencies and Critical Theory. A journal
Kay, M. (2005) Strong Brands and Corporate Brands. A European Journal of Marketing, Vol. 40 pp 742-700.
Keller, K. (1999) Managing Brands For The Long Run, A California Management Review, Vol 41 No.3 Spring pp102+24.
Leonard, B. and Alexander, J (1999) Component integration framework for manufacturing reengineering : agent and object approach, Robot and Autonomous systems Vol.27, pp 77-89.
Management today (2003) Tesco clean sweep.
Mcgoldbrick, P.J and Blair, D. (1995) International market appraisal and positioning. In Mc Goldbrick P, J, Davies, G. (eds) International retailing: Trends and strategies, Pitman London, pp. 168-90.
Morganosky, M.A. (1997) Retail market structure change; implication for retailers and consumers. International journal of retail and distribution management , vol. 25, No 8 pp. 269-74.
Muskett, D. (2000) Sainsbury and Shaw’s: Reflections on making an acquisition a reality. In Oldfield, B.M. Schmidt, R.A, Kirkup, M. Hart, C and Clarke, I. (Eds) Contemporary cases in retail operations management, Macmillan press, London.
Nardine Collier (2004) Marks and Spencer Case Study, In: Lecture as class discussion, Grandfield school of management.
Newman, A. and Cullen, P. (2001) From retail theatre to retail food show: The shrinking face of grocery”, British food journal, vol.103 No7, pp. 443-52.
Olins, R. (1997) Marks and Spencer sets out its stall for word domination. The Sunday times.
Palmer, M. (2005) Retail multinational learning: A case study of Tesco. An international journal of retail and distribution management. vol 33, No 1 pp. 21-48.
Piercy, N. (1999) Tales from the market place, Butterworth- Heinemann, London.
Retail intelligence (1999) Uk retail market report, November No 105, Retail intelligence London.
Shannon, J. (1999) Wal-Mart’s eyes smart shopper, Marketing week, 1st July, p 22.
Terry leafy (2004) Tesco: A new international company. A new perspective management today journal vol 2, pp. 12.
Tordyman, A. (1988), The French hyper market, could it be developed in the states? Retail and distribution management vol 4, No 2, pp. 3-16.
Tordyman, A. (1994) European retailing and distribution management. vol 22, no 5, pp. 3-19.
Tsang, E. (1999) Internationalisation as a learning process: Singapore MNC in china, Academy of management executive, vol 13, 1 Feb. pp. 91-101.
Tse, K. (1982) Marks and Spencer: Anatomy of Britain’s most efficiently managed company, Pergaman, Oxford 1985.
Ulrich (2005) Organising Shared Service Consideration. In: Armanda Thompson’s (2006) HR Service Delivery. Handout for Lecture Session. MA Personnel and Development. Leicester Business School.
Voyle et al (1999) Sainsbury counter fears of becoming a take over target; Financial times, 28 October, p. 30.
Wrigley. (2002) The landscape of Pan European Food retail Consolidation, International Journal of Retail and Distribution Management.Vol 30. No.2.pp 81-91l of organisation Change. Vol .13 No.3 MCB University Press.
Whitehead, M. (1994) marks and Spencer: Britain’s leading retailer quality and value worldwide, CORTCO case study conference, London.









APPENDIX









1 2 3 4 5 score
√ 5
√ 5
√ 5
√ 5
√ 5
Average score 25
STRENGTHS
1) Brand

-Public awareness…...……………………….
-Age and tradition……………………………
-Reflects British culture………………..........
-Quality………………………………………
- Class………………………………………..


1 2 3 4 5 score
√ 1
√ 2
√ 2

Average score 5
2) Price

-Expensive…………………………….............
-Non frequent reduction………………………
-How much to pay for M&S product
in place of another alternative……….........



1 2 3 4 5 score
√ 4
√ 4
√ 3
Average score 11
3) Value
-Quality………………………………………..
-Worth the standards………………………….
-Is it worth benefits……………………………

4) Facilities & Services (fashion, food finance)
1 2 3 4 5 score
√ 5
√ 3
√ 2
√ 3
Average score 13


-Asset…………………………………………
-Floor layout/Shop layout…………………….
-Quality of services…………………………...
-Sensitive to customers needs…………………


1 2 3 4 5 score
√ 2
√ 1
Average score 3
5) People/HR
-Creativity…………………………………….
-Autonomy as against
following procedure…………………………..


1 2 3 4 5 score
√ 5
√ 5
√ 5
Average score 15
6) Partners/Suppliers
-with George clothing…………………………
-with Next……………………………….........
-Per Una Fashion label………………………..

Key (1) poor (2) below expectation (3) above expectation (4) good (5) excellent



THREATS
1 2 3 4 5 score
√ 1
√ 3
Average score 4

1) Rival outlets clothing

-Can it withstand other cheap
clothes labels………………………….........
-Is it possible in the future? ............................


1 2 3 4 5 score
√ 3
√ 2
√ √ 2
Average score 7
2) Management
-Positive opinion about present management……………………………….
-competence positive………………………..
-can management face challenges…………...


3) Weak working culture within
1 2 3 4 5 score
√ 3
√ 1
√ 1
√ 3
Average score 8

-staff opinion about present changes…………
-are they supportive…………………………...
-still show confidence in the brand……………
-encouragement of people to think
individually outside the formal strategy………


1 2 3 4 5 score
√ 3
√ 1
√ 1
√ 3
Average score 12
4) Old Brand
-can it be changed easily?..................................
-is M7S meant for the rich?...............................
-Is M7S meant for the old?................................
-Is the brand trendy?..........................................


1 2 3 4 5 score
√ 5
√ 5
√ 5
Average score 15
5) Rural Competitors (Food & Retail)

-strong dominant market position………... …..
-strong asset capital base……………………...
-strong public awareness of product…….........


1 2 3 4 5 score
√ 1
√ 1
√ 3
Average score 5
6) Public Label Expectation
-Is public hopeful of M&S recovery?...............
-public confidence of M&S
regaining its lost glory……………………….
-Public opinion to still identify with
the brand……………………………………..
Key
(1) Strongly agree, (2) Disagree (3) Neither agree nor disagree (4) Agreed (5) Strongly agree







stoik musah writes from LBS. EMAIL stoik_joy@yahoo.com