History: In 1998 it became the first British retailer to make a pre-tax profit of over 1 billion, [4] though a few

years later it plunged into a crisis which lasted for several years. In November 2009, it was announced that Marc Bolland, formerly of Morrisons, [5] would take over as chief executive from Stuart Rose in early 2010; Rose will remain with the company until mid-2011. [6] [7]
Classification of Ownership =============================== 4.2 Marks and Spencer can be classified as a public limited company; it can be also called an incorporated business. Marks and Spencer is a business that provides good and services e.g. clothes, finance. It therefore comes under the tertiary sector. Marks and Spencer is a profit making company, which belongs to the private sector. The private sector includes all those business that are set up by individuals or groups, of individuals. Most with the aim of making a profit. 5.0 Benefits of Ownership 5.2 The benefits of Marks and Spencers being a public limited 03-02-2011 Report on the Business of Marks and www.123helpme.com/view.asp?id=14 2/25 company is that all members have limited liability, this means that the firm continues to trade if one of the owners dies and more power is enjoyed due to its large size. The benefits as follows: 5.3 Huge amount of money can be raised from the sale of the shares to the public. So this means any one is able to buy shares from them. 5.4 Production cost may be lower as firms may gain economies of scale; this means that when they buy large amounts at a reduction in cost per unit, bulk buying reduces the cost. The company can also add value towards the goods to make a profit and to pay staff and any other cost. 5.5 As a result of their size, public limited company can often dominate the market. This shows that being a plc is a strong position on the market. 5.6 It becomes easier to raise finances, as institutions are more willing to lend to a public limited company because they are reliable. For example institutions are not likely to lend big amounts of money to partnership or a sole trader because it would be a high risk. 6.0 Constraints of Ownership ============================ 6.1 The constraints of marks and Spencers being a plc ownership are as follows: 6.2 Since anyone can buy their shares it is possible for an outside interest to take control of the company. In order to do this the person will have to buy a huge amount of shares. 6.3 All of Marks and Spencers accounts can be inspected by members of the public. Competitors may be able to use some of this information to their advantage. They have to publish more information than private limited companies. 6.4 As a result of Marks and Spencers size, they are not able to deal with their customers at a personal level. 6.5 They way they operate are controlled by various company acts which aim to protect shareholders. The reason this is because most people that invest in a company like to see an increase in the dividend yield.

 6.6 If marks and Spencers do not make enough profits, then fewer people will invest in the company. If this happens the company would then find it hard to raise capital for the public RFID Technology used in M&S supply chain: Each container has an RFID transponder with a unique identification number and the tare (weight of the empty container).The containers are carried by conveyor to the loading entrance where they are verified before going to the filling stations.

Each container is weighed after being filled. A blend code, lot number, net weight, date, hour and sequence number are automatically recorded on each transponder and also printed on a paper label adhered to the outside of the container. All of the information is held in a database linked to the SAP system so that manufacturing processes and schedules can be constantly monitored.

When the containers are put into the tipcarts, the readers compare the information on the transponders to the database ensuring that the product blend inside the container coincides with the programmed one in the tipcart. If it is correct, the container is authorized to be turned over. An operator completes the process by registering his/her identification card at a reader at the tipcart station.

The primary benefits of the RFID system include the reliable tracking of raw material and containers throughout the manufacturing process, the consistent implementation of FIFO (first in, first out) inventory management, and quality control of the final product.

The M&S partnerships extend to textile, as well as clothing, suppliers and deeply permeate the business practices of these suppliers. Lean retailing has increased the frequency with which replenishment is occurring. The movement towards faster replenishment of stocks is leading to a variety of innovations in these retailer supplier partnerships. However, there is a sense among suppliers that much of the development of closer relations is one-sided in that it largely benefits the retailer.

Examples include insufficient allowances for the added costs of services provided and the scaling back on purchasing commitments in the middle of the season.

IT Capacity in supply chain

IT developments are also gradually supporting greater integration between textile and clothing manufacturers and retailers. Developments in CAD technology facilitate quicker product development and later confirmation of specifications, while computerized knitting and dyeing and finishing provide greater flexibility for quick response production and for changes in style.

In addition, CAD/ CAM and EDI have emerged as pre-requisites of carrying out business off-shore and those firms that have invested significantly in overseas sourcing or manufacture have installed the most sophisticated communications technologies3. The survey shows that supply chains must deal with at least 8 different types ordering and replenishment strategies by retailers. These include:

Forward orders with no replenishment Forward orders with one replenishment during the season Domestic fast track replenishment for imported goods, where local suppliers are used to ensure stock availability of best sellers Forward orders with regular replenishment scheduled, used mainly for basic items with a long product lifecycle. Forward orders with a type of replenishment often referred to as call-off. Call off is a system that enables the retailer to place an order for the anticipated seasonal requirement of an item, but to take delivery of only a small initial quantity and to draw as needed from the total order as goods are sold. Call off goods are often replenished from inventories of finished goods held by the supplier.

Forward order with phased delivery. Goods are ordered in advance and a delivery schedule agreed for the forthcoming season that enables manufacturers to pre-plan production schedules and both manufacturer and retailer to avoid inventory costs.

Forward orders with fast track repeats where replenishment stock is not arranged in advance, but in response to sales performance. Fast track orders for fashion forward products launched throughout the season. This system depends on rapid manufacture as well as delivery.

Driving a Multi-channel business Customers shop with M&S in many ways. Whether they are shopping in store, at home, in the office or over the phone, companys aim is that every customer receives the same consistently high level of service from purchase through to delivery. Shop Your Way Launched on a trial basis in July 2009, companys Shop Your Way service enables customers to place clothing, beauty and home ware orders either in stores, online or over the phone. They can then opt for delivery to either a nominated address or free to their nearest store for collection. Since roll-out, the latter has proved very popular, with around 13% of customers who order online choosing to collect in store and driving footfall as a result. Shop Your Way has been welcomed by smaller stores, as the service brings the wider M&S product catalogue to their local customers. Weekly orders now stand at 2.5m and following the successful trial, Shop Your Way has been rolled-out to over 300 UK stores, with a roll-out to Simply Food stores underway in 2010.

Consolidation of warehouses

One of companys biggest projects is the consolidation of companys GM warehouse network, moving from 110 smaller warehouses to a small number of super warehouses, based in prime central locations and a dedicated e-commerce distribution centre in the Midlands. This is a long-term project but the first phase is well underway and they have begun the closure of 21 sites. Work has progressed quickly and the first of the new super warehouses, a 1 million sq ft site in Bradford, is due to open in summer 2010. Companys ecommerce site in the Midlands has been identified and they plan to start construction this year. All of companys new warehouses will have a state of the art design, with the aim of achieving an excellent rating under BREEAM, a voluntary measurement rating for green buildings.

Simplification In addition to companys consolidation program, they have simplified operating processes in companys warehouses to enable us to move products through companys supply chain more quickly. They have done this in two ways, firstly by streamlining day-to-day processes such as reviewing the floor layout of warehouses to reduce picking times and introducing a loose loading initiative, which has enabled us to carry more products on companys trucks and secondly by reducing the number of times they handle stock. Currently all stock goes to a sorting centre and then a regional distribution centre before being moved to a store. Following a successful trial this year, all stock will go via just one place in the future.

International supply chain: Companys international supply chain To support future international growth, over the next three years they will make companys international supply chain more cost efficient and deliver more products direct to companys international partners as opposed to going via the UK.

This year they have made good progress and delivered 9.8 million singles direct to companys overseas stores, companys plan is to increase this to 30 million by 2013.

IT and systems

This year they completed the in-store pilot of a new Point of Sale System (POS) and will begin the roll-out to all stores later this year. The new system is not only more cost efficient but also helps deliver a better customer experience, through a simplified process for transactions and refunds.

Following another pilot, they have introduced new software to improve stock management. Staff representatives from all stores are receiving training in the new system and this will be rolling-out during 2010. The new centralized system provides real-time data from stores to a head office team, providing an accurate picture of stock levels at all times. SWOT chart

Strengths - SWOT Marks & Spencer well-known and trusted company/brand excellent reputation for underwear and food presence in high streets increase in traditional older shoppers experience in running other brands e.g. Brooks Brothers discussion about chairman successor

Weaknesses - SWOT high cost of IT investment brand perception problems (M&S) for younger age group outer wear expectations of older female age group not met high cost of UK-based suppliers lack of efficient segmentation one store for all target customers distribution/stock system (sold out articles, home shopping service) limited means of payment possibilities (no credit cards) offering poor value lingerie (risking market pre-eminent position) difficulty of stretching St Michael brand problems in product design and delivery high prices for food unfavourable located M&S stores in city centres (parking, etc) unsuccessful overseas operations in USA and Europe

Opportunities - SWOT cheaper sourcing from overseas (strong pound sterling) aging UK population with high income (empty nesters) dressing down on Fridays demand for category breadth and modern outerwear busier lifestyles shopping on the go aspirational shopping in clothing and home furnishing

Threats - SWOT overall decline of department stores in the UK overseas turmoil riots and currency in Thailand, Malaysia and Indonesia recession in the far east planning constraints greenfield vs brownfield shopping over the Internet acceptance of discounters brand labels (Hugo Boss, Paul Smith) for aspiration purchasing for younger consumer specialist, trend and niche competitors e.g. Benetton mail order operations e.g. Lands End, Cotton Trade low cost financial services by Virgin, Legal & General mainstream competitors in food (designer boutiqued food) and clothing (discounters to niche operators)

Summary - SWOT M&S didnt react to changes in customer trends investments in the ailing distribution and SCM werent realized opportunities (internet shopping, credit cards) were not used the competitive advantage serving the mass market with innovative, high-quality goods at competitive prices didnt comply with reality (poor value, lack in style, cut, etc) lack of efficient target customer segmentation change to more overseas supply focus on home market (unsuccessful overseas operations)

 market segmentation change management board because of a ignorance and retrenchment strategy; implement mayor adoption with new management investment in distribution and information system

Strategic responses

ediTRACK Case Study for M&S:

In today's highly competitive and dynamic retail market, where product is sourced from all corners of the world, having the ability to control what, how and when stock is being moved is essential for maintaining supply chain efficiency and ensuring that the right product reaches the right customer at the right time.

Marks & Spencer have achieved this by implementing the ediTRACK business process tracking system throughout their international supply chain and now use the system to give visibil ity and control over all of their directly sourced merchandise. In 2005, ediTRACK was used to manage over 800 million of stock.

ediTRACK's event based structure tracks the progress of purchase orders all the way through the supply chain; holding detailed information on the activities performed to the orders, whether they have been consolidated at origin, loaded at the factory or if they have travelled by road, sea or air.

Integration with M&S's supply chain partners means that real time information on shipments is available, in addition to a complete audit history of all orders. Tolerance levels are held within the system for each supplier and automated authorization means that any event that falls outside the defined service levels is flagged. For example, when a supplier makes a request to ship goods and the requested quantity or despatch date do not meet the predefined tolerance, the supply chain manager is alerted for authorisation.

At the heart of the ediTRACK system, the event-based process architecture allows agile solutions to be built using modern, rapid application development techniques. This abil ity to deliver quality solutions within short time-scales has given the M&S supply chain team the flexibility to be innovative and to respond to business needs no matter what the scenario. Paddy McLaughlin, Head of Supply Chain Operations, commented ediTRACK's independence, speed and flexibility has allowed us to drive performance, visibility and control across a number of disciplines and regions, while using multiple logistics providers.

One of the many examples where ediTRACK has allowed the Supply Chain team to quickly respond to dynamic commercial requirements has been through the implementation of a tool to track and record quality audits and planned and unplanned reprocessing.

The systems structure means that secure, restricted access can be given to external

reprocessors enabling them to view only orders assigned to them. Reprocessors use the tool to plan their work-load and record the reprocessing of garments, detail ing the quantity of stock received, the type of reprocessing which has been carried out and the associated costs.

Warehouse bookings and the movement of stock on trailers is also recorded and integrated into the warehouse systems to ensure early visibility of stock in the pipeline and accurate receiving against despatched goods.

Having such a rich source of both current and historical data means that M&S have the ability to optimise their supply chain by performing real-time supplier KPI reports and responding to changing demands; expediting quick moving stock for example.

M&S also conduct detailed historical analysis on their supply chain performance by reporting on areas such as container utilisation and cost-per-single. For this reason the integrity of the data held within ediTRACK is of paramount importance to M&S and it is critical that the information provided by all sources is complete, timely and accurate. To monitor data integrity, ediTRACK has an error reporting facility that filters data before it is loaded and produces automated alerts to notify the relevant parties if the data does not comply and needs to be repaired.

M&S recognise the value that ediTRACK gives to the supply chain operation and see the tool as integral to the future growth of the direct business. Looking back over the last 3 years Steve

Foster commented: "ediTRACK continues to provide fast, flexible solutions which are allowing our business to develop and grow with real pace."

New developments include a critical path system for deployment to M&S sourcing teams throughout their regional offices. This system will be used to monitor product development and integrated directly into the order tracking system. Like all ediTRACKs solutions, the system is accessed by users with a standard web browser and is available twenty four hours a day, opening up the M&S supply chain to new opportunities for international collaboration.

RFID Technology Case study:

In this issue: UK Retailer Marks & Spencer Creates RFID Supply Chain for Refrigerated Foods Integrity For You Introduces Personal Recognition Dining Loyalty Program RFID Improves Tobacco Tracking and Inventory Management Pre-Register for a Free Exhibit Pass to Retail Systems 2002

TI-RFid Systems announced that UK retailer Marks & Spencer is replacing existing barcodes with a TI RFid-based electronic tagging system. Using TI-RFid Tag-it smart labels, UKbased systems integrator Intellident will create a system to track almost 3.5 million reusable trays, dollies and roll cages used throughout the stores refrigerated food supply chain.

TI-RFid technology will provide Marks & Spencer with a significant cost and speed advantage in tracking and managing its refrigerated food products. During Marks & Spencers extensive trials of electronic smart labels, the TI tags reduced the time taken to read a stack of multiple trays by approximately 80 percent, compared with bar coding. A complete dolly with more than 25 trays can be scanned in a single pass through a portal in just 5 seconds with high accuracy and reliability compared with 29 seconds for conventional barcode scanning. More than 70 percent of Marks & Spencers food business is in refrigerated fresh foods. Its supply chain needs to be very fast since the majority of its items are ordered at 6 a.m. and delivered the next day beginning at 7:30 a.m.

In addition to compliance with international standards, other advantages of the RFID system include faster, more accurate scanning and data capture, simultaneous read, lower labeling costs, and more efficient communication throughout the entire supply chain.

Electronic tags are reusable and their fixed costs can be spread over a long period of time, whereas barcodes are used once. Marks & Spencer estimates the capital cost of an RFID system will be less than a tenth of the annual cost of using barcodes.

Personal Recognition program participants are given an Integrity For You sticker embedded with a TI-RFid Tag- it smart label that can be attached to any card or object, such as a drivers license or wallet. At the point-of-sale or in the restaurant, customers pass the sticker over an RFID reader, allowing them to pay for their purchases quickly, without cash or a credit card. RFID technology automatically links customers with their transactions using a unique Each container has an RFID transponder with a unique identification number and the tare (weight of the empty container).

The containers are carried by conveyor to the loading entrance where they are verified before going to the filling stations.

Each container is weighed after being filled. A blend code, lot number, net weight, date, hour and sequence number are automatically recorded on each transponder and also printed on a paper label adhered to the outside of the container. All of the information is held in a database linked to the SAP system so that manufacturing processes and schedules can be constantly monitored.

When the containers are put into the tipcarts, the readers compare the information on the transponders to the database ensuring that the product blend inside the container coincides with the programmed one in the tipcart. If it is correct, the container is authorized to be turned over. An operator completes the process by registering his/her identification card at a reader at the tipcart station.

The primary benefits of the RFID system include the reliable tracking of raw material and containers throughout the manufacturing process, the consistent implementation of FIFO (first in, first out) inventory management, and quality control of the final product.

With Marks and Spencers you don't have to compromise on the quality of your cover to cut the cost of Home Insurance. At Marks & Spencer, we have a choice of 2 policies, Premier and Standard, to give you the cover you need at a price you want to pay. Apply online today and you can save 10% off our standard premiums, on new policies. With Marks & Spencer you get unlimited cover for buildings and contents (money limit up to 500) and generous liability limits which mean you are never knowingly under insured. You don't have the hassle of estimating rebuilding costs, or what it would cost you to replace your belongings. All we ask is that you let us know about any item, set or collection that is worth 4,000 or more. It's as easy as that. If you do need to make a claim, our fast efficient telephone claims service will take care of everything on your behalf. Your contents are covered on a new for old basis, and there's no excess to pay unless you choose to, apart from 1,000 for subsidence.

Social and environmental policy 1. Look Behind the Label

In 2006 the Look Behind the Label marketing campaign was introduced. [32] The aim of this campaign was to highlight to customers the various ethical and environmentally friendly aspects of the production and sourcing methods engaged in by M&S including: Fairtrade products, sustainable fishing and environmentally friendly textile dyes. All coffee and tea sold in M&S stores is now Fairtrade. [33] in addition the company offers clothing lines made from Fairtrade Cotton in selected departments.
[34]

At Christmas the company introduces a range of food products to support the housing charity Shelter [35] predominantly in the food to go range including a range of seasonal Christmas sandwiches.

2. Plan A
On 15 January 2007, M&S launched an initiative, known as "Plan A", [36] to dramatically increase the environmental sustainability of the business within 5 years and expected to cost 200 million. [37] The plan covers "100 commitments over 5 years to address the key social and environmental challenges facing M&S today and in the future" with the tag-line "Because there is no Plan B". The commitments span five themes: climate change, waste, sustainable raw materials, 'fair partnership' and health, [36] with the aim that, by 2012, it will: [38] Become carbon neutral Send no waste to landfill Extend sustainable sourcing Help improve the lives of people in their supply chain Help customers and employees live a healthier life-style Despite an 18% fall in the share price in January 2008, following publication of their latest trading statement, the company confirmed that they would be continuing with the plan, saying that there were 'compelling commercial as well as moral reasons to do so'. [39] The now iconic brown, reusable, hessian bag was first introduced in 2007 as an early part of this plan. It is hoped that this will reduce the use of plastic carrier bags over the next few years. [10] May 2008 saw the introduction of the 5p carrier bag scheme at M&S

stores, with customers now paying 5p per standard sized vest carrier bag for food purchases. This implementation was brought about through the Plan A scheme, [36] to try to discourage use of the traditional plastic bag. [40] All profits from the sale of food bags go to Groundwork UK. [41]
Wapedia - Wiki: Marks & Spencer http://wapedia.mobi/en/Marks_&_Spencer 7 of 8 29-01-2011 19:02

In becoming carbon neutral the company has committed to only use carbon offsetting as a last resort, [42] restricted to cases "where it is required by government or where the technology for green air or road transport will not be available for the foreseeable future". [43] As of August 2008, M&S had three wind turbines in operation, one at Methlick and two near Strichen, generating enough power to supply three stores via the National Grid. [44] In April 2009 the company began purchasing 2.6 TWh of renewable energy (wind and hydroelectric) from Npower, enough to power all Marks & Spencer stores and offices in England and Wales. [45] Company chairman Sir Stuart Rose is personally committed to further promoting green issues and the recycling of plastic bottles. He has also pledged to reduce non-glass wastage by 25% and plastic carrier bag usage by 33% in the near future. [10]

3. Charity work
M&S has sold a wide range of charitable women's clothes for Breakthrough Breast Cancer [46] for many years and the Ashbourne store collected a total of 2,000 for a local Derbyshire hospital's new ECG machine in 2010. [47] . Other charities are also represented at individual stores from time to time.