CORPORATE STRATEGY

The Case Study of Marks and Spencer



Table of Contents

Introduction3

Position of the Case3

Case Analysis3

Marks & Spencer culture4

The product/market 'core' of Marks and Spencer5

The change context6

SWOT Analysis8

Strengths8

Weaknesses9

Opportunities10

Threats10

CEO, Holmes11

Why was Holmes unsuccessful?12

The overarching aspect in Rose's favor14

References17

The Case Study of Marks and Spencer

Introduction

This case study follows on from Marks & Spencer (A) in Exploring Corporate Strategy (7thedition and the case example for Chapter 5 on Culture and Strategy). The case briefly explains why M&S was so successful and the problems, which led it to face so many difficulties. The case study is focused on the various change initiatives that were mounted by Holmes, and his successor Rose, to turn around M&S (Wright, 1998, 35-50). It is therefore useful to explore issues concerned with managing change, and turnaround style.

Position of the Case

The case study relates, in particular, to the problems and means of managing strategic change in M&S. Therefore, it is particularly related to the coverage of types of strategic change, the importance of context and programmatic design and change in Chapter 14.However, it could also be used as a case to require students to analyze the reasons for the continued problems of M&S, in terms of the market and competitive position of the firm. In this sense, it could be used as a strategic analysis case earlier in the course. It also poses the question of the strategy that should be followed to regain competitive advantage, and is therefore concerned with strategic choice.

Case Analysis

The case shows the almost frenetic activity in trying to manage change and turn around the organisation since the departure of Richard Green buries (Wright, 1998, 35-50). It might be useful to encourage the students to use the diagnostic approach suggested at the beginning of Chapter 11 as a basis by which to evaluate the se initiatives; specifically, the y might be asked to use the cultural web as a basis for identifying the main features of the culture of M&S. Perhaps do a re-webbing analysis similar to that in Illustration to identify required change and draw up a force field analysis; to consider the contextual features of M&S, which might inform required change (Keating, 1999, 120-134).

Marks & Spencer culture

The characteristics of M&S's culture identified through a cultural web exercise might include:

Paradigm:

We are the best; we set the standards; we know best; we occupy the middle ground; we are Synonymous with high quality; people respect will and us always shop here;

Power:

Very top-heavy with deference to top management; male dominated;

Organisation:

Mechanistic, bureaucratic; top-down; hierarchical;

Control:

Top-down control in detail both of the stores and of suppliers; insistence unconformity;

rituals and routines:

Deference; knowing your place; store layout; family atmosphere;

Stories:

History and legacy; Simon Marks; power over suppliers; authoritarian behaviour of top management; staff welfare benefits;

Symbols:

The St Michael brand; Simon Marks and CEOs as father figures; identical store appearance.

The picture that emerges is one of tradition, formality, set ways of doing things and huge self-confidence bordering on arrogance (Keating, 1999, ...