MARKS AND SPENCER

(a) MARKS AND SPENCER’s SUCCESS

This question is answered in relation to the success achieved before the downturn in performance in the late 1990’s.

• The strategic intent was to have a simple pricing policy and the use of the ST MICHAEL LOGO as a sign of quality.
• Had structured formula for all its stores whereby a set of principles were held as core to the organisation
• The value chain was well managed suppliers been local and control could be exercised over suppliers and the manner in which the supply to the customers was dealt with in a uniformed manner throughout.
• The company was well funded through public listing and held value for shareholders.
• The business was in a cash cow phase with business and financial risk being medium.
• The company had a high market share within their target market with the promotion of the their flagship product the ST MICHAEL brand.
• The company had a strong competitive position.
• Products were valued by customers due to high quality.
• Products were made locally and perceived to be of high quality as they were British products. This can be especially true after the post wars years and before companies started large scale globalisation.
• Chinese boom of imports had not yet really affected the market.
• Customer loyalty was built and maintained.
• The corporate culture and top down structure suited the environment.
• Before globalisation could affect local markets in the UK the environment was relatively stable.
• Corporate culture of the “family atmosphere” was adequate for the pre-globalisation era ...