Business Strategy Essay Example | Topics and Well Written Essays - 1500 words - 1

Business Strategy - Essay Example In the year, 2010 â€Å"Marks and Spencer plc† took the position of the largest cloth retailer in the United Kingdom. With 885 stores in over 40 countries with 600 stores being in the UK, the company boasted that for everyone on three women were wearing their bras. However, analysts were worried about the sustainability of the company in UK; retailing recovery. In the same year, a new CEO took over the running of the company he was faced with several issues that were associated with the reassessment of the company’s competitive strategy and the present challenges of strategic change. The choosing of 50-year-old Mark Bolland, who previously was the CEO of a UK supermarket chain, was greeted with a very positive response from the public, media and shareholders alike. The new CEO faced several challenges in his new position; he had to implement strategies, which would secure the future of the company that had the most famous name in the shopping malls. The company for long had been the largest retailer of clothes in the UK. This was an organization to which analysts referred to when they were reporting whether the high street has a good or a bad season of sales. An organization, which historically is loved and known by the people of Britain. At the end of 2009 and the beginning of 2010, investors were nervous. Below are several questions that were raised about the future of the firm that needed to be resolved (Bevan, 2007 p45). Analysis In the year 2009, the company delivered reasonable results in the 2008-09 financial, trade year. This was a period that was hit by the economic recession. In the previous year, the company had registered a ? 1 billion mark in the pre-tax profits for the first time in the decade. The company’s reputation had suffered a great deal when in 1998, it became the first retailer in Britain to make profits that amounted to ?1 billion, however, within the same year the company was issuing profit warnings. This was a self -inflicted catastrophic injury from its premium position. The company managed to limp through the period with the turbulent changes that were hitting it from all directions. With Sir Stuart’s appointment as the CEO of the company in the year 2004, saw the company regain its lost glory, and, as a result, regained its health and returned to the profit level of ?1 billion (Bevan, 2007 p57). When the company was founded and was still being rum by Simon Mark, he was known for his personal, autocratic and top-down management style. He was also known for his infamous attention that he had to detail. He showed this with the way that he dealt with the suppliers. He ensured that he always got his supplies from specific suppliers and always ensured that the goods that were supplied by these suppliers were to specification. By this, he built a relationship between â€Å"Marks and Spencer plc† and the supplying group. This assured customers with high and consistent quality. The com pany became largely successful in terms of delivery of high quality and reliable brand to the customers. By this, the company earned outstanding rewards in profit and market share (Bevan, 2007 p60). Historically the company was run using a trusted, tried and tested recipe; this is in the way the company did business (Bevan, 2007 p65). It was embedded in several fundamental principles that the company was run on: 1. The customers were to be offered high quality and well designed merchandise that was also