M&S

M&S

  • Submitted By: d3adc3II
  • Date Submitted: 01/05/2009 10:04 AM
  • Category: Business
  • Words: 1031
  • Page: 5
  • Views: 1

Organisation Change for Mark & Spencer I/Introduction It’s never easy to determine a precise point in time when the company need to change its organizational structure in order to sustain and grow its business. The problem is not the result of one decision or change, it is the result of many oversight and incorrect decisions. Therefore to establish a point in time when Mark & Spencer (M&S) begin their decline, many factors need to be considered. II/ Marc &Spencer issues 1) Complacence One of the major factors that appear to have negative impact on M&S is their complacence. It is easier to understand why this could be taken place when M&S learnt from their history. M&S was very successful in the 90’s. M&S diversified their retail business to include more products than any other retailer and continued to expand into other fields such as personal loans and life assurance. With their strong policy on expansion of shopping space, M&S maintained their strong market position and making very good profit. They rapidly moved to international expansion for getting more influence in Europe and the US. Another factor was that M&S had found that they had such a strong position in the market that it’s no need to focus on advertising, (for example, their first advertising campaign was only launched as an attempt to stop the wave of declinations against their products in the late 90’s) Such a serious issue like complacence can be very hard to identify a point to establish any changes. Financial figures in recently years show the big drop in sales, especially in Europe market. Moreover, share price fell constantly until it had 2/3 its original price by the mid of 2006. It shows that their decline is beginning, however there are no clear indications of why. 2) Lack of innovation Another reason that M&S started to lose their sales figures is because they were still working in the same fashion for many years. In the industry like clothing and fashion, M&S is lack of...

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