Marks and Spencer: Structure and Culture

Marks and Spencer: Structure and Culture 1. INTRODUCTION Marks Spencer is British institution. Opened in 1884, the company emerged as a major retailer of clothes, food, household items and financial services. By 1997, Marks Spencer was an international company with sales of over  £8 billion and very high net profit margins. However, the group experienced a shocking reversal in fortune at the turn of the 21st Century when its main customer base, women aged between 35 and 55 began to stop shopping at their stores. This posed a very serious threat to the companys survival and Marks Spencer thought hard and long about how to rectify the situation. It did so by introducing bold new moves changing its corporate culture and by strengthening existing systems and processes. By doing so, the company was able to regain its loyal customers and grow once again. Yet, the last few years have been challenging as the company was badly affected by the global economic crisis. This report outlines the changing structure and culture at Marks Spencers. It provides a comparison of the contributions of the key business functions to the organizational change. It also identifies the key stakeholders of the organization and the key issues of managing them. Finally, a SWOT analysis is done for Marks Spencer along with an assessment of its long term future prospects. 2. CHANGING CORPORATE CULTURE AND ORGANIZATIONAL STRUCTURE All organizations have their own cultures, which consist of the values and beliefs shared by its members which determine to a considerable degree how managers respond to problems and opportunities. But corporate culture can become static and excessively bureaucratic over time, even among successful organizations (Huff et al, 2009). An organizational culture is powerful because it automatically shapes the way members see their world. Any culture is deeply rooted in beliefs and values that members have internalized. When beliefs and values are held without challenge for a long period of time, they are even less likely to be questioned (Robbins and Judge, 2007). The norms rarely change to accommodate those who deviate from them. Inertia sets in and employees become stuck in a rut. Employees become resistant to change and are unwilling to do things differently because they involve inconvenience and uncertainty. This could ultimately destroy the company. Like most successful organizations, Marks Spencer was a victim of its own success. Its corporate culture because inflexible, rigid and resistant to change because it was felt that since the company was successful, there was no need to change. Deeply entrenched was a sense of employee entitlement regarding remuneration and working hours. However, when it became clear that the old culture was unable to cope with changing demands of the marketplace, the top management decided on a major revamp. As a result, employees became less resistant to change and began to embrace new ways of doing things. Employees were willing to work for longer hours if it meant better pay and they were less resistant to the fact that they might lose their jobs if the company performed poorly. They were also sent for learning and education programs to equip them with new skills sets so that they were better able to cope with changes in the working environment. All these efforts contributed to the change in corporate culture which is now more dynamic and flexible. A number of major changes were also made to the organizational structure. The formal chain of command was flattened to a certain extent and in doing so the company became more agile and responsive to changes in customer demand and taste. The regional management structure was simplified to delegate more responsibility to individual store managers to give them more autonomy. 3. CONTRIBUTIONS OF KEY BUSINESS FUNCTIONS TO ORGANIZATIONAL CHANGES 3.1 Finance The finance function plays a critical role at Marks Spencer in cutting costs and eliminating unnecessary expenditure. The entire value chain was examined to determine where and how costs could be trimmed. As a result, the company was able to reduce costs, provide better prices to the customers and improve its overall profitability. Ultimately, it is the shareholders who stand to gain the most from the initiatives made in terms of maximization of shareholder wealth. 3.2 Marketing To attract new customers and retain existing customers at Marks Spencer, the marketing function critically examined the cause of declining sales. The main cause negative customer perception of its main customer base women aged between 35 and 55 that the clothes sold at Marks Spencer were unfashionable and even dowdy. Therefore, the marketing function decided to split up the long-cherished St Michaels brand into a number of categories to cater for different customer needs. Consequently, the company launched three new product categories for women (www.marksandspencer.com, 2011). The first, the Perfect and Classic ranges were for basic purposes, for example jeans, sweaters and plain shirts. The second range, Autograph is for the more fashionable woman of a larger demographic group. The final range, per una, is targeted at the younger woman of ages 25 to 35 and is of average dress size. By segmenting its products for different markets, the company was able to regain most of the sales it lost. Different marketing campaigns are held for each range and this makes the companys products appear more attractive to customers. 3.3 Operations A number of critical changes were made to the companys operations. For one, the supply chain was made leaner and in doing so, the company made substantial savings. Fewer suppliers were used and this facilitated transparency and response time. The lead time was reduced and the company placed a greater emphasis on timeliness and quality. These contribute to leaner operations which lead to higher profits. 3.4 Human Resource This function is critical to the successful implementation of a strategy. The HRM function at Marks Spencer played an important role in changing employee mindset and modifying the corporate culture to be more attuned to the changes that need to occur (Hitt et al, 2004). As a result, employees were more receptive to change and aware of the sacrifices they need to make. 4. KEY STAKEHOLDERS The key stakeholders of Marks Spencer are shareholders, management, employees and customers. The following diagram shows their relative importance and power: Power of Stakeholders Meet Their Needs Key Player B, C A D Least Important Show Consideration Interest Key: A Shareholders B Management C Customers D Employees 5. MANAGING KEY STAKEHOLDERS Shareholders would like to maximize their wealth. Share maximization is through share price appreciation and dividends (Aaker, 1996). Therefore, satisfying this group would require increasing profits and the company profile. Management is concerned about maintaining control over operations. Their goals are sometimes similar to that of shareholders but in some cases they differ (Daniels et al, 2007). Hence, there is the agency problem. The employees at Marks Spencer are most concerned about job security and work conditions. Ideally, they would like jobs that pay well and have good hours. However, this may be incompatible with the goal of wealth maximization of shareholders as employee benefits will erode profits. Similarly, if employees are unionized, they may cause problems to management and reduce its influence. Hence, management must strike a balance between making employees and shareholders happy. Customers are concerned about satisfying their needs and wants. Managing them effectively would require Marks Spencer to improve its product offering to make satisfied customers who make repeat purchases. 6. SWOT ANALYSIS 6.1 (S)trengths Excellent control system for suppliers, inventory and layout of stores. Very high quality products Efficient and modern production techniques Good understanding of its core customer base. 6.2 (W)eaknesses Generic clothing that is often perceived as unfashionable An image of being boring 6.3 (O)pportunities Global expansion Utilizing more overseas suppliers to achieve cost advantage Maximize use of existing technology to obtain competitive advantage 6.4 (T)hreats Competition with premium quality clothing manufacturers Competition with discount stores Economic downturn 7. FUTURE PROSPECTS Marks Spencer is facing a very difficult time. After its successful business turnaround, it is once again facing problems due to the recession. Indeed the next few years may be a very difficult time for the company. Not only is it facing competition from high end retailers but discount stores as well. Meanwhile, the middle class is shrinking and if the company does not take bold steps, it may collapse. To succeed, the company must grow its market share by penetrating new markets or new product lines. 8. CONCLUSION Marks Spencer is a company with a long history of success. To overcome its current difficulties, it must draw on its strengths, overcome its weaknesses and revamp its strategy to stay relevant and competitive.

Biometrics :: Science Technology Essays

Biometrics For most people when first hearing the word biometrics, they have an instant reaction to tune out. Just because the term sounds complicated and somewhat boring does not mean that the information behind the term is incredibly interesting and fun! When first discussing the term with others, I too thought it would be a typical boring computer topic. It was not until I began to research the topic, that I saw computers to be intriguing. One of my favorite aspects of the topic is what it initially reminds me of. I could not help but think of spy and other technical movies that show biometrics being used. The term biometrics, refers to the automated methods of categorizing a person, based on their behavioral, and physiological characteristics. What people may not know about biometric systems, is that the basis alone is from natures oldest way of identification. By determining these characteristics in an authentication inquiry, this information can then be saved in reference, for identification to determine if the user can be granted access to any private or secured location. This particular method of recognition is preferred to those such as, passwords, or pin numbers. Although these methods are still commonly used, with biometrics we are able to make sure the person being identified is physically present, and elements the hassle of remembering several passwords. These physiological techniques could include fingerprints, retinal scanning, voice patterning, facial recognitions, DNA analysis along with hand and finger geometry. Biometrics is such a rapidly improving technology, that has been previously used for years in forensics, such as identification, and prison security. While the behavioral techniques include handwriting and voice recognition, gait, and keystroke dynamics. By having these special techniques replacing pins, we are able to feel secure about unauthorized used of ATM’s cellular phones, desktop PC’s, and other personal securities. In addition to these currently password protected areas, biometrics can also replaces keys for automobiles, such as key-less entry. Trust in these areas of secured access, is essential to a happy and healthy environment. Even though there are several ways of detecting identity, the most popular has been the facial recognition and fingerprint matching. These techniques are expected to be added in aid for homeland security identification, at places such as airports, along with helping in reliable travel documents, and preventing ID theft. Along with th e important need for reliable homeland security, biometrics are important in areas such as financial transactions, retail sales, investing, electronic banking, law enforcement, and health and social services.

Land Ordinance of 1785

Land Ordinance of 1785 I)The Land Ordinance A. Adoption 1. The United States Congress adopted the Land Ordinance of 1785 in May 1785. 2. Thomas Jefferson wrote the Ordinance of 1784, which called for the land west of the Appalachian Mountains, north of the Ohio River, and east of the Mississippi River to be divided. a. This ordinance did not exactly describe how the land would be settled, governed, or how the land would become a state. 3.The Land Ordinance of 1785 put the 1784 resolution in operation by providing mechanism for selling or settling the land. B. Goals and Accomplishments: 1. Due to the fact that Congress could not raise taxes, the main goal of the ordinance was to sell the unmapped territory west of the states acquired in 1783 through the Treaty of Paris and uses the income as federal profit. 2. Over three-fourths of the continental US was surveyed using the rectangular survey, which provided the following: a. Easily recognizable land descriptions . Economic, political, and social development in the townships. 4. The Ordinance divided the land into townships, six square miles each that were divided into 36 1 square mile sections. a. Each of the 36 sections were subdivided into portions of land that were sold or used for a specific purpose. b. Section 16 of every township was reserved for the maintenance of public schools. c. In later townships, section 36 was designated as a school section. d. Sections 8, 11, 26, and 29 were reserved for federal sale Related article: Land of Opportunity

Henry Higgins - 1403 Words

Henry Higgins Higgins is an extremely interesting character and the life of the play. Although the plays obvious concern is the metamorphosis of a common flower girl into a duchess, the development of Higgins character is also important. The play isnt only Elizas story. One also detects changes in Higgins or to be more precise he appears to the reader in a new light at the end. This is seen when he tells Eliza that he has grown accustomed to seeing her face and hearing her voice. This is not much of a sensitive display of emotions but it is quite different than the savage invective he hurled at her at the beginning of the play in Covent Garden. Higgins is portrayed as being highly educated. Apart from being a professor of†¦show more content†¦At a certain level Higgins is an overgrown child. Shaw wrote in his stage directions that Higgins is, but for his years and size, rather like an impetuous baby taking notice eagerly and loudly, and requiring almost as much watching to keep him out of unintended mischief. His manner varies from genial bullying when he is in a good humor to stormy petulance when anything goes wrong, but he is so entirely frank and void of malice that he remains likeable even in his least reasonable moments. This trait of impetuous childishness in an otherwise extremely articulate and learned adult lends complexity to his characterization. This interpretation is confirmed by Higgins himself when he defends himself against the imagined notions held by Mrs. Pearce. He tells Colonel Pickering, Here I am, a shy, diffident sort of man. Ive never been able to feel really grown-up and tremendous, like other chaps. And yet shes firmly persuaded that Im an arbitrary overbearing bossing kind of person. I cant account for it. His blindness to his faults serves to endear the audience to him despite him being an egoist and a bully. It is important to note Higginss lack of interest in women. In Act Three, Higginss conversation with his mother regarding Elizas society appearance gradually turns to the topic of young women and his antipathy towards them. Higgins dismisses the idea of any romantic association with a faint contempt for the fairer sex and dismisses them asShow MoreRelated The Character of Henry Higgins in Pygmalion Essay1562 Words   |  7 Pagescharacters are usually seen as mere puppets propelled by the crisis of the plot or as mouthpieces for his socialist viewpoint. However in Pygmalion,, Shaw vindicates himself of these charges by the creation of rounded and life-like characters such as Higgins and Eliza. Clearly they are not authorial stooges. They have a peculiar quality that leaves a lasting imprint on the readers memory. But there is some truth in the charge that Shaw created a mouthpiece for his own ideas and the character of AlfredRead MoreThe Misogynistic Henry Higgins1990 Words   |  8 PagesThe Misogynistic Henry Higgins The key to understanding George Bernard Shaw’s Pygmalion lies in understanding the power struggle between the â€Å"haves† and â€Å"have-nots† – specifically the active and intentional disenfranchisement of women at the turn of the 20th century. At the core of Pygmalion there is a focus on the societal inequities of the day, with Shaw presenting society’s treatment of women as property without rights and with little understanding of their surroundings or place in society.Read MoreCharacterisation of Eliza Doolittle and Henry Higgins in Shaws Pygmalion1730 Words   |  7 PagesPygmalion is written by dramatist, playwright and critic George Bernard Shaw in the year 1912 and was first published in the year 1913. 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As a social activist during the early 1900s, Shaw chose to introduce the inc orrect judgment placed upon working class citizens to his wealthier audiences within his play Pygmalion. Henry Higgins finds poor flower girl Eliza and determines her a lost soul, deciding immediately he couldRead More What drove Eliza to change? What does it mean to be high class? 1502 Words   |  7 PagesIn George Bernard Shaw’s didactic, Victorian play Pygmalion, Linguistics Professor Henry Higgins’s perceptive ears are offended by the sound of Eliza’s lowly, Cockney accent, so he wishes to change it into a flawless, pleasant voice that would blend in among high society. Higgins is a sarcastic and rude character who treats Eliza badly throughout most of the play, sometimes not even acknowledging her presence. This brings up the question of why she tolerates his rudeness. What drove Eliza to changeRead MoreThemes of George Bernard Shaws Play Pygmalion Essay1156 Words   |  5 Pagesstory of Henry Higgins, a master phonetician, and his mischievous plot to p ass a common flower girl, Eliza Doolittle, off as a duchess at the Embassy Ball. In order to achieve his goal, Higgins must teach Eliza how to speak properly and how to act in upper-class society. The play looks at middle class morality and upper-class superficiality, and reflects the social ills of nineteenth century England, and attests that all people are worthy of respect and dignity. Shaws Pygmalion is Henry HigginsRead MoreHow Does Shaw Present the Relationship Between Eliza and Higgins and to What Extent Does the Audience Find It Funny.1500 Words   |  6 Pagesungraceful ivory to a stunning female statue. Shaw emphasises, social class and manners through the play of his version of Pygmalion . I will be analysing these affects and how they are comedic to the audience. 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