Finance

In 1980, Michael Marks, Russia born, Polish refugee opened Mark’s penny bazar in Leeds. In 1894, Thomas Spencer joined Michael as a partner. (Marks and Spencer, 2010 e) In 1903, Marks and Spencer Ltd. was registered as a firm. (Marks and Spencer, 2010 f) At present, it has more than 600 stores in UK and over 295 stores in 41 countries with its head office located in London. (Marks and Spencer, 2010 a,b,c) The company deals in home products, food products and clothing. (Marks and Spencer, 2010 d) Marks and Spencer underwent lots of changes during this period like any other company.

Simon Marks took over M & S from his father in 1907. (M & S, 2010 f) The penny bazaars were turned into stores and ‘St. Michael’ logo was introduced as assurance of quality in 1920’s. A simple pricing policy was adopted by buying the goods directly from the manufacturer. (M & S, 2010 g) Until 1970’s, the top management consisted of family members only. The new staffs were employed if the managers felt that they would adjust and fit in the family. The staff was treated well and better paid than the other companies. Richard Greenbury was elected as CEO in 1991. Until late 1990’s, the company was hugely successful in terms of market share and profit because of good quality products, modern and efficient production techniques and good relationship with buyers, suppliers and staff. (Johnson et al, 2009)

(Trends followed before change management)

Crisis in 1998

Why?

The company continued with its traditional techniques and ignoring the changes in the current market. Moreover, Greenbury was more focused on the daily operations rather than long-term strategy.

TROPICS Analysis

Time:

Bibliography

Marks and Spencer (2010 a) http://corporate.marksandspencer.com/aboutus/where/international_stores

Marks and Spencer (2010 b) http://corporate.marksandspencer.com/aboutus/where/uk_stores

Marks and Spencer (2010 c) http://corporate.marksandspencer.com/aboutus/where/head_office...