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Marks and Spencers
Overhaul helped change culture
A new image and corporate identity was created which built upon existing strengths made relevant to the present. The introduction of the loyalty/credit card has helped attain the 14% increase in this area of the business. The movement away from the autocratic style of management is complemented by the flatter structure which has been created. This also opens up the channels of communication between departments in the business and takes away the element of an employee being scared to speak up if they think something is not right.
The culture of the organisation is more orientated around the customer now and the company's environment. Too long had it kept its head in the sand and allowed itself to drift off course. The staff at M&S began to feel that they could possibly make a difference and took ownership of their own role in the company. Another success factor which is evident can be seen from looking at the profit and loss accounts (Document B9 & Document A, p.1055). Retained Profit/loss for the year rose from -£41.2m in 1999 to £255m in 2002, an increase in profit of over £296m. This can be credited to the change in culture as it is ultimately this change that has turned the company round.
It is still possible though that the effects of all the poor publicity have still to grab hold of them.…
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