Marks & Spencer is a British clothing and food retailer created in 1884 at Leeds (www.marksandspencer.com). It is the largest retailer in the United Kingdom and the firm is listed on the London stock exchange. The company was in a terrible crisis of growth in the early 2000s. Competition became an important threat, owing to the practice of offering the same quality products at a lower price (Kookaï, etc.). Frequent changes of management, decisions made too slowly and rapid changes in culture create difficulties in pursuing a clear strategy. The CEO Vandevelde and the retailer Holmes decided some strategic options during this period, such as the reorganization of its international activities. In 2001, the group decided to sell 18 unprofitable stores in Western Europe, and withdraw from France
[...] For instance, he continued to be wary when financial markets and analysts were trustful of the company's success; “I'm not going to say the ‘R' world (Rose quoted by Observer, 2005). He was credible and had competencies because he many years of retailing experience, having worked for (Collier, 2008) He was flexible, and undertook a lot. He succeeded in bringing change. He was dynamic in the implementation of his skills, such as the communication with partners (analysts and shareholders), and very persevering in the turnaround of the firm which was slow and difficult. [...]
[...] Let us apply it to the case study: - Are the current objectives of the organization appropriate? We can summarize the objectives in 6 points. Offer high quality products at reasonable prices; encourage suppliers to use modern production techniques; ensure the standards of quality control; provide service to customers; improve the efficiency of the business; and foster good human relations with customers, employees, suppliers etc (Collier case A). There is of course a contradiction between maintaining good human relations with suppliers and imposing standards of quality on them, between providing helpful service and high quality products, and maintain reasonable prices etc. [...]
[...] Thus we see that models other than that of Thompson exist, whereby one may to evaluate strategic choices. However, the Rumelt model is probably more appropriate to evaluate a global strategy. Question 2a Leadership is about “directing and co-ordinating the work of group members” (Fiedler, 1967). Rose became the CEO of M&S in 2004, and was successful in managing a turnaround strategy. He used an autocratic leadership that was very useful in times of crisis. He reacted strongly to events without discussing them (for instance defending against the bid: action without debate), and he pursued his objectives even if the employees and some directors were unhappy and left the firm. [...]
[...] Thus, it seems suitable because it is a strategic alliance which dilutes risk, and allows the company to learn from its partners. The direction for growth is a diversification, which is very useful when the current markets decline. M&S exploits its core competencies in new areas, to obtain better returns at higher risks by seeking new business (Considine, 2008). This project also seemed acceptable. month after its launch, M&S reported its first sales increase for three years, and a rise in share price” (Collier, 2008). [...]
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