Q1. What were a) the symptoms and b) the causes of the problems (turnaround situation) at M&S in the late 1990s? How well do these map against those suggested by ?
There were at least two major discrepancies in the operations of Marks and Spencer in the late 1990s. There was over diversification on the part of the company. This is seen in the emergence of the other brands on which Marks and Spencer manage. They have also entered into the food business which essentially is a considerably cutthroat industry as existing companies like Tesco and Sainsbury has already entrenched themselves in this field.
The other problem compounded this existing market strategy, inefficient management style. The style of appears to be too proud. They held considerably to what they perceived as the “image” of Marks and Spencer as a premium brand. They failed to recognize the changes that took effect in the market where the consumer now dictates how the market revolves.
Q2. Evaluate the recovery strategies adopted by and later by – how do these compare with those suggested by
recovery strategy fell short because of he wasn’t able to establish an effective change management system that fits the operations of the company. This means that instead of turning the company around, he got stuck in managing change. This is considerably the opposite in the case of as they did not recognize the need for change management. In the case of , Mark and Spencer rose from the ashes because of him because he did something different from what the said individuals did: he evaluated the situation. knew what Mark and Spencer is all about and he was aware of the changing environment. In this manner, he was able to find ways to keep the company from the hands of Philip Green.
Q3. Identify the characteristics required in a successful turnaround manager. Why is it so difficult to manage in these circumstances?
It is difficult to manage circumstances where a turnaround is required because of several factors. First, expectations are high hence the pressure is on the manager to actually turn things around for the downtrodden company. In the same manner, the manager will be working on a limited time frame and a limited amount of resources compounded with the cynicism of the stakeholders and other members of the company. This then justifies certain requirements for a turnaround manager.
First, the manager must have exceptional experience in the field. This does not equate to the number of doctorate degrees or where he got his MBA, practical knowledge of what works and what doesn’t is essential. It also doesn’t hurt that he has a great reputation to back it up with. Second, a turnaround manager must have professionalism. This doesn’t only mean that he carries out his work properly. It entails that he operates with integrity and within the realm of ethics. It is also imperative that he have great managerial skills. The turnaround manager would have to deal with the people internal and external of the company. He must have the capacity to make these individuals see his vision and comply with the means to achieve these ends.
Credit:ivythesis.typepad.com
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