Assessing the Marks and Spencers retail chain

Assessing the Marks and Spencers retail chain Marks and Spencer is a British retail chain with over 800 stores in around 30 countries (600 in the UK). Food and clothing retail play a large part in the Marks and Spencer corporate strategy. The Marks & Spencer business model has had to adapt to change and consumer trends over the years to maintain the company’s position as one of the largest retailers in the world. Marks and Spencer (M&S) is a heritage of the British retail and has been present for nearly 130 years. Throughout the years, several individuals have led the organisation and distinct patterns of leadership style can be observed. The impact of leadership style at M&S will be compared to the organisation’s performance and critically evaluated against published leadership models. Covey, S.R. (1990) Historical leadership (1880-1990) (Mathieu) Until the middle of the 20th century, the customers and employees were divided in two classes: middle class and working class separating people who had money and the wo rking class who hadn’t. Additionally, women during this period seemed to have predominantly a reproducing role and did not have direct political power. Gender and classes have shaped the evolution of M&S dominated by strong powerful males from its early days [Rippin A. (2005)]. The leadership of M&S has been and still is dominated by men. Michael Marks founder of M&S had the traits of an entrepreneur. As the leadership was passed on through the family, increased competition within the heirs led to emergence of stronger characters. Michael’s son, Simon Marks and later Simon’s brother in law Israel Sieff changed the leadership style towards a stronger dictatorial influence. Both Marks and Sieff families had been victims of violence especially during the war and controversially established an organisation with ‘systematic symbolic violence’ and bullying [Rippin A. (2005)]. M&S managed to blur the gaps between the social classes, at least on the fashion aspect by the type of clothes provided by the company. Working class women could at last afford and wear elegant and aspiring clothing deemed to a superior class. Derek Raynor took over in 1983 which was a major transition from a family business to a plc. In 1988, Sir Richard Greenbury concentrated on the operational and financial of the organisation. In the following year however, M&S failed to transform significantly and became reactive [Stockport G.J. (2000)]. As the environment became more dynamic, customers’ expectation changed, competition became fiercer but M&S failed to keep up and adapt to the market. The family business became victim of their past success and lacking of a person with exceptional calibre to lead change through its professional debut. 2.0 Leadership transition Changes outside and inside M&S In 1997 M&S made over 1 Billion pounds of profit and accounted for over 16% of UK’s clothing market. The company was then valued at 19 Billion pounds. (199 7 Annual Report). 1998-1999 marked the start of an under performing period and share price plummeted by 40% [Cape Times Business Report (1999)]. As competitors such as Zara and Next took market share from the top end of the market while the same time value offerings were attacked by the supermarkets who were increasingly entering the same market. Peter Salisbury became CEO in 1999 and started to question the M&S ways of working. He placed an emphasis on empowerment by reducing the number of hierarchical layer from eight to seven, and promoting a sense of ownership and decision-making in local stores [Stockport G.J. (2000)].