Business Strategy M&s

Question 1:

Historically, underlying M&S operational strategy has been to develop quality products at low prices while maintaining good relationship with customers, staff and suppliers. It also has a unique drive for simplicity of operations by converting stores from daily indent to weekly indent system to achieve the same, all M&S stores operate on a single platform with identical basic and special offerings. They are customer focused and invest heavily on their people because they believe that content employees increase the sales and bottom line of the organization.

During this period, M&S plans to expand abroad especially in Canada and to enhance British exports. This shift in strategy was a result of increase in corporate tax rates from 40% to 52% and British government's expectations from retailers to restrict their gross margin to a maximum of 10%.

Question 2:

M&S Architecture:

M&S is an organization with functional structure. It is divided into sub-units based on different functions. The categories managed by joint managing directors are divided on the basis of regions, sub-functions and products. The organization promotes a family culture and relationships are personalized by the senior leadership. Sub-units are completely independent and people can exercise power that is vested in them. Supply is one function that impacts all other customer facing sub-units. Information sharing is superseded by processes but standard documents are used widely in organization e.g. stock checking list to track inventory. It is an organization with a tall hierarchy. Decision making power have been allocated at relevant levels and these decisions are not challenged by superior levels.

M&S takes cares of its employees and pays them well. They believe that content personnel are more effective and hence they add to the bottom line. M&S spends money to ensure employees get good perks such as, pension and medical benefits, subsidized lunch and tea and access to good recreational facilities. M&S believes in a family culture and promotes from within.

Routines:

M&S operates all stores on one platform hence there is standardization. Resources are allocated in a systematic manner and authority levels are set and predefined. Information sharing is standardized through various sub units that work on the demand and supply side. This is a cyclic process. People are involved in business and decisions are taken real time and information is channelized accordingly. The senior management makes it a point to visit all stores personally. They believe in a family culture hence even the directors know store level workers by name and the relationships are personalized.

Culture:

The culture is very inclusive and family like. People are hired young and then trained by M&S to ensure that they understand that M&S philosophy. Anyone who fails to be part of the team fails to grow in M&S. The chairman knows the barbers and workers in stores by name that signifies that these relationships are personalized and staff feels proud to work for such a dynamic organization.

Question 3:

M&S ARC and Strategy Alignment

• Architecture: The architecture is in line with M&S's 1975 strategy. They have the organizational structure and people in place who can fuel their aspirations of expanding internationally and to focus on British exports business

• Routines: M&S has a robust routine in place. They have all the required resources; people, infrastructure and suppliers to fuel their current business but the suppliers do not have enough muscle to produce enough for M&S's aspiration of international operations

• Culture: The culture is in line with the new strategy. M&S have a culture that any corporate entity wishes to have and the best practices can be replicated in international/export operations

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