Marks & Spencer

The Marks and Spencer (M&S) is a general retailer that sells clothes, gifts, home furnishings, and foods under(a) the St. Michael trademark in the UK, Europe, the Americas and Far East. The company also operates advantageous financial services. It has over 373 stores located throughout the UK. In addition, the order has 280 stores worldwide, including over 85 franchise businesses, operating in 31 countries. Its philosophy is to sell durable, classic styles and conservative colors trade in at a moderate price. In response to changing taste of its customers and the possible competitive threat posed by international niche retailers such as Gap & Zara, M&S decision to be fashion conscious backfired. This slip discuss about these issues and its possible solution. Root Cause First, the styleless and outdated clothing lines along with outdated merchandising techniques in store pulled customers away toward trendy fashionable boutique-like stores like Zara. Second, preferably of listening to store managers advice to customer trends, M&S relied heavily on consultants opinions.

Third, appointment of Salsbury as CEO resulted in lay-offs of 25% of management, and a warning to suppliers that they had to become more price-competitive (urging them to relocate output signal to low-wage economies, preferably Sri Lanka, South Africa, and Cambodia). Finally, the recession in 1998 and lack of divination systems increased the inventory level only exacerbated sales, compounded by currency fluctuations and collapse of Far Eastern economies. The increased oversea sourcing hurt M&S. Suppliers were struggling to remain price-competitive and in severe to reduce their costsâ€"bringing clothing from overseas facilities and purchasing partially-finished goods from low cost countries & having to bring them back to the UK for finishing sooner of direct shipping. This was adding as much as 14 lbs (that ordinarily only cost 4 lbs to make) and lengthening the delay to the stores. As a result of... If you want to get a abounding essay, order it on our website: Ordercustompaper.com

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