Essay about Marks & Spencer Case Study

2905 Words Jul 7th, 2012 12 Pages
With close to 400 shops, 11 million customers a week and 66,000 workers, Marks and Spencer is a respected organization and one of the High Street’s most recognized brands. Nevertheless the days when M&S was uncontested have long gone as clothing sales have come under stress from other high street brands like Topman and River Island and food revenue has been hit by Tesco. Over the last 15 years, Marks and Spencer have experienced a succession of changes in management and organizational culture following a massive decline in sales. What used to be a leading store in excellence food and clothing retailer has now become an out-of-date, passive company fighting to survive in a very aggressive market. Below the organizational culture of M&S will …show more content…
Power Structures
The Power Structure of Marks and Spencers during the early 90s was top heavy with all major decisions being made centrally not by individual stores. The top management was held with the highest level of esteem. This was seen time and time again, if top management made a decision with unfavourable results then efforts would be made to hide them. E.g. When Chairman Richard Greenbury decided that to control costs there would be less full-time sales assistants. Although this led to an inability in stores to meet the service levels required by M&S, when Greenbury visited a store, all available employees were brought in so that it appeared the stores were levels of service, that at other times, they were not. On another occasion customer satisfaction surveys showed a decrease in happiness of customers throughout the late 1990s. These surveys were kept from Greenbury by senior executives who felt he might be annoyed by the results. The above two examples show an almost fearful respect for the chairman, not wanting to show Greenbury the full scale impact of his bad decision. Finally although Marks and Spencers mainly catered for were women and much of the merchandise was womenswear, top management was dominated by men. Marks and Spencers management had a notoriously insular view. Some could argue that this was a cause of an initial disconnect between top management and their main customers base. As top management never had a woman’s

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