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marks & spencer’s case study booklet
for Unit One: People at Work
Ownership
M&S is currently a PLC and also operates franchise concessions. However, it
did start off as a sole trader in 1884 when Michael Marks opened up a market
stall in Kirkgate Market, Leeds. It was in 1894 that he joined forces with Tom
Spencer who was the cashier in the wholesaler where Michael used to
purchase goods for his stalls. Tom wanted to start his own business and had
£300 to invest. The two worked well together and by pooling together their
skills and experience, the business expanded. Upon their death, the business
was taken over by Simon Marks [son of Michael] and ably assisted by his good
friend, Israel Sieff, the business became a private limited company.
This was necessary because both men wanted the business to expand and
therefore required a different form of ownership. The risk of unlimited liability
was removed by becoming a private limited company. More capital could
be raised through the sale of shares and there was a divorce of ownership
and control. The shareholders were the owners and they appointed the
directors to run the business. The shares could only be bought or sold without
the permission of all the shareholders and therefore this safeguarded against
potential takeover.
The business went from strength to strength and became a Public Limited
Company – the ownership it still has today. Becoming a PLC meant that
shares could be bought and sold on the stock exchange and this led to
greater capital generation. It would have been more complex to set up [with
the Memorandum and Articles of Association having to be filed with
Companies House] and £50,000 of authorised share capital having to be
raised. There was still the benefit of limited liability but a greater risk of being
taken over with the shares being readily available.
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There is a greater divide between ownership and control. There are literally
thousands of shareholders who are the owners and they appoint the board of
directors to run the company. Sometimes there is a conflict of interest
between the shareholders and the directors. This is one of the reasons why
the company did so badly in the 1990s. The Board needed to cut back on
operating costs and create more profit so that the company could pay the
shareholders greater dividends which they were demanding. This is why cut
backs were also made in training and in the provision of perks to staff.
Every year the company produces two reports – its Report and Accounts
which is a report of its performance during the past financial year – it contains
a full set of accounts which by law have to be made public – and the
Corporate Social Responsibility statement. It also holds an Annual General
Meeting or AGM and this is where the directors invite the shareholders to a
meeting and inform them about the performance of the company and its
plans for the future.
This form of ownership allows Marks and Spencer the opportunity to expand
and diversify and shareholders are happy to invest because of the good
dividends that are paid out. There is also limited liability which reduces the
risk.
To expand its Simply Food stores, the company offers franchise arrangements
to would-be franchisees. This has allowed the number of stores to grow
without the company having to make all the financial commitments.
What is the difference between a private and public limited company?
M&S operates in the private sector – what does this mean?
What are the disadvantages of being a PLC?
Aims and Objectives
The mission statement of the company is ‘to make
aspirational quality available to all’. This means that
it wants to be seen as offering really high quality
goods at a very affordable price which in turn leads
to the consumer receiving good value for money.
The company’s aims can be seen on its corporate
website and they are filed in the Corporate Social
Responsibility statement. They are based under the
headings of Products, People and Places.
In terms of products, the company wishes to provide exceptional quality,
competitively priced products for customers, using a wide variety of raw
materials and technologies. They also want to ensure that suppliers operate
ethically and ensure that customers can use and dispose of products
responsibly, without undue harm to the environment. For example:
Ethical trading: make greater use of the Supplier Ethical Data Exchange
database and encourage more suppliers to use it.
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Food packaging: expand ‘Responsible Food Packaging’ initiative to use more
recycled and natural, sustainable materials.
In terms of people, the company needs great people to deliver great service
for customers. To attract and retain the right people, the company needs to
be seen as a retail employer of choice. Examples:
Career Development: launch a ‘Your M&S Career Path’ programme for
section and store managers. This will provide a step-by-step path linked to
skills and performance.
Occupational Health: extend trials to provide employees with free, fast
referral to physiotherapists, osteopaths and chiropractors, and access to
confidential telephone advice and counselling to help with physical and
mental health problems which affect performance at work.
Fire, Health and Safety: reduce accidents and absence related to any workrelated injury.
In terms of places the company aims to make communities better places to
live and work in. The company wishes to foster good relationships with
communities and manage responsibly the impact of operations on the
environment. For example:
Breast Cancer Awareness: extend the Breakthrough Breast Cancer support to
include the Fashion Targets Breast Cancer campaign.
Energy: reduce store energy carbon emissions by a further 20%. Use
compliance with new legislation on energy efficiency to work towards a low
carbon footprint energy efficient stores.
Transport: start to upgrade delivery fleets to Euro IV standard engines.
At store level these aims would be broken down into SMART objectives. I do
not have access to these but based on the aims listed above, try to create a
SMART objective for each of the three categories. Write this in the space
below:
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Functional Areas
Below is an organisational structure for a typical Marks and Spencer store:
General Manager
Commercial Selling Manager
Store Operations Manager
Visual Merchandising Manager
Commercial Manager
Store
Service
Manager
VM Section Manager
Staff
Service
Manager
Section Manager
Advisers
HR Manager
VM Advisers
Operations Advisers
How many levels of hierarchy?
Is it flat or tall and why?
What are the advantages and disadvantages of this type of structure?
Why isn’t there a finance function in the store?
The HR function allows M&S to ensure staff continue to be regarded as the
company’s best asset. The function recruits and manages staff and ensures
each member of staff is developed to their full potential. The company
invests heavily in staff development and training is viewed as important. The
function is also responsible for managing change at store level and it
identifies staff and training requirements. It also communicates to staff how
the changes are going to take place and why they are taking place. The
function is also responsible for implementing and maintaining the disciplinary
procedure. It is the function’s responsibility to ensure that all staff are aware
of its presence and content. The function also handles grievances that might
occur in the store with the minimum fuss and disruption. One important role
of the function is to be aware of the Health and Safety at Work Act and
ensure the safety of staff and customers.
The Commercial Selling function is very large within a store because it is the
front line of the business. It is the sales area and therefore is responsible for
maximising sales performance. Staff are required to have good product
knowledge and be fully trained in customer service expectations.
Commercial selling also includes the Returns and Ordering functions.
The Operations function is important because it provides all the ‘behind the
scene’ support. For instance, it supports all areas of the Commercial Selling
function by moving stock from the warehouse to the shop-floor when
deliveries are made. It also deals with all the return stock. It also runs all the
in-house services such as the staff restaurant and staff shop which offers
products to staff at 25-50% less than cost price. These staff do not come into
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customer contact that much. They tend to deal with in-house staff but they
still need to provide good customer service so that staff remain motivated
and good teamwork is ensured.
The Visual Merchandising function has been formed because of the
importance of visual display to attract customers. The staff within the function
are charged with the responsibility of making the store appealing so that
customers are inspired to try on and purchase garments. The layout of the
store has to be such that disabled shoppers are not disadvantaged and the
garments are easy to find. Signage is an important part of this function’s
responsibility. The store layouts are changed on the recommendations of
head office. There is a mock store in London which is charged with the
responsibility of trying out new layouts and researching them for effectiveness.
*****-*****
The functions need to support each other in order for the store to perform
efficiently and effectively. For instance, the Operations Department works
behind the scenes. It is responsible for providing the staff shop and canteen.
It also ensures the correct materials are available for the Commercial
Department such as carrier bags, stationery, clothes rails etc. The Operations
function also unloads the stock and places it in the warehouse in readiness for
the Commercial function.
The HR team provides staffing information for the Operations and the
Commercial Selling teams. They also provide the necessary training for all
functions and ensure the training meets the specific needs of each function.
They also recruit staff for the store and discuss manpower requirements with
the manager of each function. The HR function also coordinates the hours
worked for each member of staff and ensures they are paid.
The Commercial Selling team is responsible for serving the external customer
but they work very closely with the VM team to ensure the layouts are
attractive and practical. They also work with Operations.
Job Roles
The focus of M&S since its disastrous period in 1998
has been to regain customers and the company
has once again become people focused – it is now
caring for staff [internal customers] as well for the
external customers who come into the store. The
organisation structure that exists now represents a
loss in some levels of hierarchy and a reduction in
bureaucracy. Some 1000 managers were made
redundant [mainly through natural wastage]. This has led to an improvement
in communication and speed of process. Staff are now being empowered to
make their own decisions and the change is being driven from the bottom
up. For example, if authorisation is required on a switch card, the supervisor
used to be called over. This was considered a waste of time and means the
customer has to wait. Sales Advisers were empowered to do this function
which gives them more responsibility and improves customer response time.
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The Directors of the company are based in Head Office in London and there
is one for each overall section [www.marksandspencer.co.uk for
information/details on board of directors].
The current job roles in store are as follows:
HR Function:
HR Manager
Overall responsibility for the function but also
deals with disciplinary and grievance procedures.
Performance Manager
Concerned with the provision of training solutions
to meet shortfalls in employee skills.
Resource Manager
Responsible for the recruitment of personnel at all
levels within the region. Particularly busy at the
moment due to the recruitment of seasonal staff.
Policy Manager
Responsible for ensuring all company policies are
carried out in-store. Has particular responsibility for
implementation of health and safety.
HR Admin Manager
Deals with the administration of staff matters such
as payroll and personal details.
HR Advisor
Assists management by data-entering information
and keeping records/files up-to-date.
Commercial Selling:
Store Manager
Commercial Manager
Section Manager
Advisor
Operations:
Commercial Manager
Store Operations
Store Services Manager
There is one for each area – Food, Menswear,
Ladieswear, and Home. This person takes overall
control for his/her specific function.
There is one for each area and s/he is responsible
for store change. The layout of the store has to be
constantly changed to meet sales patterns,
seasonal trends etc. S/he will have to liaise with
VM.
There is one for the service and tilling in each
section who ensures that there are enough staff
and tills to meet changes in demand throughout
the day. There is also one for stock and selling
and this person will ensure that stocks for the
section are kept as high as possible.
This is the ‘shop assistant’ and there are two types
- some just work on the tills, others ensure stock is
displayed and work on returns or ordering
points. They need to have good product knowledge because they are working on the shop
floor and have direct contact with customers.
Overall responsibility for the section.
Ensures stock reaches the various sections when
delivered and liaises with staff in the commercial
function to find out when and where they
want the stock. Also, oversees collection of
money from tills and cash points and liaises with
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Staff Services Manager
Facilities Advisor
Staff Services Adviser
Store Services Adviser
VM:
Store VM Manager
VM Section Manager
VM Advisor
security company. Also ensures the correct
‘point of sale’ material is available to match
store layouts.
Responsible for the staff canteen and staff
shop.
Deals with outside contractors.
Works in the staff canteen/shop.
Deals with the cash office and ensures money
is collected at regular times. Also removes out of
date shop from shelves.
Overall responsibility for the function. Receives
instructions from head office and ensures they
are carried out in-store.
Responsible for the VM within the section. Looks
for accessory opportunities and links with other
sections to do this.
Carries out the instructions as laid down in the plan
for each section.
*****-*****
The HR function has been changed to have specialists for each of the
important functions and this ensures that staff receive a better service. This
ensures that M&S can meet its objectives of investing in staff so that the level
of service will improve through improved motivation and job satisfaction.
Before, the staff in personnel had to be experts in all areas and, therefore, the
level of provision was ‘patchy’. Now, there is increased investment in training
and the recruitment and selection process has just been overhauled.
The creation of the VM department has enhanced the stores and shoppers
are now returning to the store.
The Store Operations function is an excellent ‘back up’ provision and is
working very well. Much of the finance has disappeared to region due to
computerisation and it is the job of this function to ensure that point of sales
are provided with sufficient cash and to collect the money at different times
throughout the day.
In some stores there has been a problem with the size of the Section
Manager’s span of control and it means the post-holder feels unable to do
the job as well as s/he would like. This can lead to a loss of staff morale. Also,
the subordinates where the span of control is wide can feel demotivated
because of lack of support. For instance, some Section Managers find it
difficult to carry out effective performance management leading to staff
demotivation.
At the moment, the promotion routes for sales advisers are limited and in the
Commercial function, a sales advisor has to be working full-time to be
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appointed Section Manager. The decision whether or not a sales advisor is
promoted is made by the Section Manager, based on the appraisal review.
The company at the moment is working in a decentralised fashion with
advisers being encouraged to share in the decision-making and objective
setting at store level. There is a Business Involvement Group [BIG] and this is
like a staff council where a representative is selected by each function to sit
at committee meetings which are held on a regular basis. This works well
because it means that sales advisors as well as management are able to
have a say in the decision-making.
However, on average about 50% of staff working in stores tend to have
worked for the company for at least 15 years. This means that they are set in
their ways and some are reluctant to accept change.
Recruitment
M&S has just introduced TALENT PHILOSOPHY which is
ensuring the right person is placed in the right job. ALL
perspective candidates undertake an online questionnaire
or telephone interview as the first stage of the recruitment
process. Candidates need to pass this to ensure that they
have the right personality and mindset to fit in with the ethos
of the company. The questionnaire has been devised by an
external company and has led to a lower staff turnover and higher rate of
productivity. This has been measured by performance at appraisal review.
INTERNAL vacancies are advertised on the:
staff noticeboard
company intranet [although a lot of shop floor staff still do not use this]
monthly newsletter
EXTERNAL vacancies are advertised via:
newspapers – for local jobs it will be in the local newspaper such as the
Bristol Evening Post on Wednesday night. For higher level jobs it will
appear in national newspapers such as The Times or The Guardian.
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-
-
company website – this is now extensively used and there is a ‘Careers’
hyperlink on the Home Page.
careers stall instore – this is mainly used for the Christmas temporary
staff that are required each year to accommodate the higher level of
sales and longer working hours. Staff are recruited on a temporary
basis.
shopping centre website – a lot of stores are now located in malls
and shopping centres which have their own websites with vacancy
lists.
graduate vacancies – can be accessed via the website during a
certain window of opportunity each year. Also the company
participates in the annual milk round of graduate recruitment fairs.
new store – the company uses the job centre, places a large
advertisement in the paper and places a billboard outside the
intended site giving details how and when to apply.
Appointment of staff
The first stage is the TALENT PHILOSOPHY which is the on-line or telephone
questionnaire. This is designed to check candidates have the right personality
and disposition to join the company. This is all managed by one central
recruitment centre based in the north-west of the country.
If successful the candidate is then invited to a STORE INTERVIEW where they
are given a tour of the store and an interview. All candidates are asked the
same questions to ensure equal opportunities and are asked to take part in a
JOB RELATED activity:
VM
Sales
HR
given a model and a range of clothes and asked to dress and
accessorise it for a particular occasion.
approach two customers on the sales floor and engage them in
conversation, or undertake a role play.
situational analysis.
The offer is made by a designated date and is subject to two references
being taken up. If the references prove positive then there is a confirmation
of the offer with a start date and details of the induction programme which
all staff go on.
For graduate recruitment courses, the process is a little different:
The first stage is the TALENT PHILOSOPHY questionnaire and if successful there
is an invitation to the Training Academy which is in Swindon. Candidates are
asked to arrive the evening before for dinner with M&S staff ad other
candidates.
On the following day the candidates [normally between 6-8] will undertake
four activities on a carousel basis and they are:
presentation
goldfish bowl discussion
role play
interview [one hour long]
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Candidates are informed whether or not they are successful within three
working days and the offer is made subject to two references and a medical
examination. The formal offer is then made.
[refer to the interview notes from Dave Allinson which you have in your
classwork folder for general overview of the graduate recruitment
programme].
Training
M&S has formed a ‘Retail Academy’ which is responsible for delivering
training and development programmes for staff at all levels.
Induction programme:
This is now three days and is undertaken by EVERY employee before they start
work at the company. It means that staff feel more confident before they
start work and each course is run for between 5 to 15 people. The three days
encompasses a range of activities to encourage teambuilding and an
awareness of the company’s ethos. There are the obligatory sessions on the
organisation structure and health and safety, and staff are also measured for
their uniforms to ensure a good fit. There are huge benefits both to the
company and to the employees of carrying out this type of induction training.
The newly recruited staff are aware of company policies and what the
company’s aims are. They know what the company is aiming for.
Whole staff training:
There is training for all staff when new initiatives are
launched but it is hard to train all staff at the same time
because of the stores being open seven days a week. At
the end of 2005, M&S employed Mary Grober [retail
motivationist] to run one-day long training sessions for 56,000 staff, from
directors to storeroom assistants. The company paid her £1 million plus fee as
part of a £10 million training initiative. The course was designed as part of a
company ‘culture’ change and staff were given tips and advice on how to
treat customers. They were informed that successful sales people should
never use the words ‘can’t’ or ‘unfortunately’ in a conversation and were
given a list of hot tips and reminders how to provide excellent customer
service.
Specific training for specific needs:
The company has started using outside contractors to design training
programmes for specific areas of the business and these courses are either
run at head office or at Retail Academy. For instance, a series of workshops
are being run for staff who work in the ‘money’ section of the business. It is
aimed at non-managerial staff to give them more confidence in
communicating with customers and developing more subtle ways to get the
potential customer to sign up for the product.
Coaches:
Coaches have started being appointed and these are customer advisors
who are given additional pay to train up to three other customer advisors. For
the additional money they are trained how to mentor and coach new
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customer assistants and also to update them on new procedures. This frees
up time for the Section Managers so that they can oversee performance
reviews and ensure they are carried out really well. Also, they have more
time to actually manage the function in which they work and this should
increase motivation. It also provides an opportunity for progression which did
not exist beforehand.
Training on demand for line managers:
Managers are now able to access innovative and
engaging e-learning to support them with HR and
people issues. 96% of managers who have used
this approach recommend it to others and
consider it to be a cost-effective means of
providing engaging learning on demand.
Lead to Succeed:
The Group HR Director has launched a flagship development programme
which is known as Lead to Succeed. It targets the development of 300 most
senior managers within the company and is designed to train the next
generation of leaders. The training involves coaching and business simulation
which is designed around some of the challenges M&S experiences as an
organisation.
Management training schemes:
These are available on an annual basis to graduates and internal placements
within the company. There are on average 150 vacancies each year across
sales, HR and ICT. The company accepts any graduate discipline and
candidates are offered top-notch training and development through both
formal and structured methods. All graduate trainees receive a varied
programme that includes a dedicated personal development plan following
a needs analysis and regular reviews.
Most join in a store-based role and are placed on a fast-track route into senior
level retail management. This means running a small store – or a whole
department of a large one – after the one year training programme is
completed. The HR programme is 18 months and offers the chance to gain
professional qualifications and build a successful, long-term HR career.
The company looks for people with drive and ambition to make the most of
opportunities on offer. M&S needs people who can match the energy, vision
and ideas that have kept the company at the forefront of the industry. The
starting salary ranges between £24,000 and £25,500.
[refer to the classwork notes – interview with Dave Allinson – for details of the
training programme]
Motivation
In the first half of 1998 M&S’s profits fell by 23%
and the reason was a fall in the quality of goods
together with prices remaining the same. It
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meant that customers were not receiving value for money and stopped
coming to the store.
In store, the staff on the shop floor were having to do the displays as well as
collect the stock that was delivered to the store – this was taking them away
from the sales floor and so there was a fall in service. Staff started to feel
stress and there was an increase in the number of customer complaints. This
coincided with an increase in the absenteeism rate and turnover ratio – staff
were leaving the store to work elsewhere such as Next which was becoming
a presence on the High Street. [Herzberg: lack of working conditions, hygiene
factors; Maslow, lack of physiological needs].
To cut back on expenses, staff salaries became lower than other retailers and
this led to staff becoming dissatisfied and was another contributor to a higher
staff turnover rate. The perks that used to be unique to M&S staff were now
provided by other retailers but the competition also offered more money.
[Taylor: satisfactory wage not being paid; Herzberg, lack of salary and
benefits, hygiene factors; Maslow, lack of physiological needs].
The opportunity to achieve qualifications such as NVQs were withdrawn and
were not replaced with other training opportunities. Staff felt just the
graduates [who were being taken on as future management] were being
invested in by the company. There were little advancement opportunities for
staff within the stores who were not graduates. [Herzberg: lack of hygiene
factors and intrinsic factors such as achievement and recognition; Maslow,
no opportunity to develop self-esteem and self-actualisation]
Staff were not given the opportunity to contribute to decisions – policy
decisions were made by Head or Regional Offices and staff had to accept
and abide by them – CENTRALISED MANAGEMENT WHICH DEMONSTRATED
THEORY X MANAGEMENT STYLE.
Putting things right
Organisation Structure
The store’s organisation structure was changed with two new
functions being introduced to help staff in Commercial Selling.
This means that staff can now stay on the shop floor and
concentrate on the customer which improves the level fo service.
[Maslow, safety needs; Herzberg, office life and working conditions, hygiene
factors].
Coaching
A new principle of ‘coaching’ is being introduced whereby a sales assistant is
given the opportunity to mentor three other sales assistants and s/he is
responsible for their development plan. In accordance with
recommendations by the Institute of Management, managers will not have a
span of control of greater than 20. [introducing intrinsic opportunities such as
Maslow, self-esteem and actualisation; Herzberg’s motivators].
Improved HR function
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Staff in the HR function are now allocated specific roles and they are
qualified within that particular aspect. This means the support for staff at store
level is much better. The legal and moral responsibilities to ensure the health,
safety and wellbeing of employees as well as creating a fair, equitable and
diverse working environment can now be achieved. [Maslow, safety needs;
Herzberg, office life and working conditions, hygiene factors].
Talent Philosophy
The new concept is to have the right person in the right job [TALENT
PHILOSOPHY] and the company is keen to promote ambition – the ethos for
the staff is, work hard and you will get promoted. [McGregor Y and also
opportunity for intrinsic motivation recognised by Maslow and Herzberg].
Staff Survey
The company has introduced a staff survey that is carried out twice a year.
This provides staff with the opportunity to have their say and through this, the
company has appreciated the need to have more staff levels within a store
and higher levels of advisors to provide excellent service. [McGregor Y;
Herzberg responsibility motivators [intrinsic motivation]; Maslow social needs]
Business Involvement Group
A Business Involvement Group [BIG] has been set up in each store and it is a
staff council with elected representatives from each of the store’s functions.
Meetings are held on a regular basis so that reps can express what their
functions feel about certain changes or policies that might be introduced.
This is working well because it means that sales advisors as well as
management are able to have a say in the decision-making.
[DECENTRALISED MANAGEMENT] [McGregor Y; Maslow self-esteem; Herzberg
job interest motivators].
Occupational Health
The company’s investment in staff is heavily featured in its Corporate Social
Responsibility statement and it shows its commitment to investing in staff. One
of the areas that it is developing is ‘occupational health’. The company is
extending its trials to provide employees with free, fast referral to
physiotherapists, osteopaths and chiropractors, and access to confidential
telephone advice and counselling to help them with physical and mental
health problems which affect their performance at work. In the stores that
have been trialled absence has fallen by 8%. [Maslow; safety and
belonging].
Other motivation strategies used by the company include:
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subsidised
beauty treatment
manager of the
month
share scheme
thank – you
award
bonus paid every
quarter
advisor of the
month
discount shop
team briefings
External Influences
Environment
M&S has set an overall corporate aim to be the world’s most sustainable
retailer by 2015. The company has now added 80 major new commitments
under its eco and ethical plan, known as Plan A. They include:




converting all 2.7bn individual M&S food, clothing and home items sold
every year into Plan A products.
encouraging 21m M&S customers to live a more sustainable lifestyle.
working with M&S suppliers to provide training and education
programmes
helping suppliers create 200 Plan A factories with either ethical or
environmental features and encouraging 10,000 farmers who produce
fresh foods to join the sustainable agricultural programme.
The company has converted all its coffee and tea to Fairtrade because
consumers have conveyed they are concerned about how products are
made and want to make fair-trade part of their retail habit. A survey
conducted by the store found that consumers are becoming more ethically
aware with 78% saying they would like to know more about the way goods
are made including the conditions in the factories and where they come
from.
Equal Opportunities and Diversity
The company is committed to an active Equal Opportunities policy which
covers recruitment and selection procedures as well as training,
development, appraisal, promotion opportunities and retirement.
The company promotes an environment free from discrimination, harassment
and victimisation and works hard to ensure everyone is offered equality of
opportunity to achieve their full potential. All decisions that are made relating
to employment practices are objective, free from bias and based solely upon
work criteria and individual merit.
The company has devised a policy which promotes a working environment
free from discrimination, harassment and victimisation on the basis of:
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gender, sexual orientation, marital or civil partnership status, gender
reassignment
race, colour, nationality, ethnic or national origin
hours of work
religious or political beliefs
disability
age
The company has introduced and extended flexible working practices,
including fully paid maternity leave, part-time working, homeworking,
parental leave, child break dependency leave/break and term-time working,
and has taken an active role in increasing the opportunities available to
women, working closely with external organisations including Opportunity
Now.
80% of the total workforce is female, a figure that has been constant for
several years. The number of women represented in senior management has,
however, grown and is now over 50%. Female representation accounts for
25% of the plc board and the UK retail board is 36% female.
Consumer Protection
The company is very aware of consumer protection law but in terms of sales
and revenue, it is not surprising that on some occasions it has fallen foul of
legislative requirements.
In 2003 the company was rapped over the &more launch. The &more card
was announced in a blaze of publicity by the chain, which said that it
planned to upgrade all its current store card holders to the new system. This,
in theory, is a benefit, as the new card not only offers a lower rate of interest
than the store card but it is also a loyalty card, allowing shoppers the chance
to earn points every time they use it. However, in practice, automatically
changing the store card for a credit card contravenes the UK Consumer
Credit Act, prompting the OFT to take action against the retailer. It is an
offence to send a credit token to a consumer unless it has been requested in
writing and the company was obliged to change its scheme.
In 2005 MEP Robert Kilroy-Silk claimed under the Unfair
Commercial Practices Directive that M&S misled women
shoppers with mirrors that make them look slimmer in its
clothes! The company was mystified by the claim stating
that it provides normal mirrors with absolutely no distortion
and the claim was dropped by the EU Commissioner for
Consumer Protection.
Trade Unions
Workers at M&S are members of GMB and Usdaw but there has not been
much union activity throughout the 125 year history of the company. In
January 2009 the company faced criticism that is was to cut over 1200 jobs.
The unions displayed concern that managers in some cases, had allegedly
chosen who was going to be made redundant and employees learnt of their
fate in the media. This is against the law and ignores the employment rights
Page 16
of employees. The company had to enter a 90 day consultation with their
employees before selecting those to be made redundant. A meeting was
held with M&S management and many of the jobs to be lost [due to the
closure of some Simply Food stores] could be made through natural wastage
and the company reiterated that it would indeed follow the 90 day
procedure.
Just before the launch of BIG, employees voiced their concerns about
changes to their working conditions to retail union Usdaw. The union held the
first ever conference for members working in M&S and heard from long
serving staff that the company’s new process wasn’t addressing real
concerns about significant changes in terms and conditions. The conference
was not about knocking the company but pointing out hat an independent
consultation process was in the best commercial interests of the company.
The conference was a success for both the company and the employees
and as a result the BIG group was formed which allowed employees to have
their voice heard. This was an example of fruitful dialogue between the
employer and the union.
Questions from previous exam papers relating to case study material
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Discuss the responsibilities that a manager in the business will have [6
marks]
Analyse one non-profit objective that this business has set [4 marks]
Explain how the business you have chosen uses induction training [6
marks]
Suggest how this business could develop by increasing the training of
its employees [4 marks]
Using one example, explain how the business you have chosen is
affected by the Trade Description Act [4 marks]
How does the business you have chosen use one of the motivational
theories to manage its staff? [6 marks]
Outline how the ownership of the business influences the way it
operates [4 marks]
Examine the role of the HR function in the business you have chosen. [6
marks]
Describe the methods used by your chosen business to advertise its
vacancies [6 marks]
Using an example, explain any nationally recognised training scheme
used by this business [4 marks]
Examine how the business motivates its employees [4 marks]
Describe the main steps this business takes to apply consumer
protection legislation [6 marks]
Explain the role of the manager responsible for finance in the business
you have chosen [4 marks]
Discuss to what extent centralised management affects the day-today work at one branch of the business you have chosen. [6 marks]
Explain two common elements that would appear in any job
description from the business you have chosen. [6 marks]
Page 17
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Give an example of a person specification for a new member of staff
who has face-to-face dealings with customers in the business you have
chosen [4 marks].
How does this business retain its employees? [4 marks]
To what extent has this business been successful in dealing with a local
environmental issue?
Analyse why one financial objective, for the business you have chosen,
has been set [4 marks]
Name two different functions within the business. Discuss how these
two functions work together to contribute to the success of the
business you have chosen. [6 marks]
Evaluate the recruitment process in the business that you have chosen
[6 marks]
The three main principles for implementing the Investors in People
scheme are Plan, Do, Review. How did your chosen business
implement the IIP scheme? [4 marks]
Examine how one stakeholder in your chosen business influences the
way the business is run [4 marks]
Evaluate how the business you have chosen manages its fire safety
responsibilities [6 marks]
Give two reasons why this business will need to recruit staff, other than
because it may be growing [4 marks]
How does the ownership of this business make it operate in a different
way to Wellingley Council? [5 marks]
Discuss two ways in which the work of this business is influenced by the
need to avoid creating pollution [4 marks]
Evaluate the effect that pressure groups have on the work of this
business [6 marks]
State one responsibility of a manager, supervisor or employee in your
chosen business. Analyse how carrying out this responsibility
contributes to the success of the chosen business. [6 marks]
Select a job role in your chosen business. Examine two personal
qualities that would be looked for in a person carrying out this job role.
[4 marks]
The Employment Equality [Age] Regulations 2006 make it illegal for
employers to discriminate against employees, trainees or job seekers
because of their age. Analyse the impact of this law on your chosen
business. [6 marks]
How has your chosen business responded to two relevant pieces of
consumer protection legislation? [4 marks]
Discuss the effectiveness of your chosen business in retaining its
employees. [6 marks]