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C A S E T E A C H I N G N O T E S
Marks & Spencer: is this as good as it gets?
Phyl Johnson
1. Introduction
This case explores the past, present and future of Marks & Spencer (M&S). The story of M&S
unfolds through long periods of supremacy on the high street, to profit warnings, take-over bids,
a long and high profile struggle for recovery by Sir Stuart Rose and the troubled term of office
of CEO Marc Bolland.
2. Position of the case
The case is primarily concerned with the strategic issues M&S faces, the strategic options it
might consider and the strategic choices it has to make. Consequently it is best used in the
3. Learning objectives
This case is designed to help students grapple with the complexity of strategic choice and
organisational change; why some options may make more sense than others and why
4. Teaching scheme
This case is designed to be taught in a plenary session. In terms of preparation, the students
might use the case as it stands or supplement it with their own research into the issues M&S
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There is of course a vital decision to be made in teaching this case: how to deal with the passage
of time since 2013. The questions that follow could be answered by students simply reporting
the choices that M&S has in fact made. This offers very little learning for the class. There are
two choices to be made by the tutor:
1) Ask the students to take M&S actions since 2013 and critique them in terms of the strategic
5. Questions for discussion
1. What were the main issues that were faced by M&S CEO Marc Bolland in 2013?
6. Case analysis
1. What were the main issues that were faced by M&S CEO Marc Bolland in 2013?
The overarching issue that faced Mark Bolland when he took over in 2010 was: how was he to
achieve the improvement in performance desired by the M&S shareholders? According to many
(ii) Some critics of M&S wondered whether M&S needed a much more radical re-think. One of
the areas of challenge was around the issue of floor space. M&S had far more space to fill
than other comparable retailers (John Lewis) and as a result clothing collections expanded
(iii) Could M&S really claim to have competitive advantage over other retailers? If so, what was
it and could it be sustained? If not, could they sustain, indeed improve, the return expected
by the shareholders.
To tackle these core issues students should explore the strengths and weaknesses of M&Ss
position.
Strengths would include the M&S brand; widely recognised across a range of
demographics. The brand is closely associated with quality and customer service and has a
In addition, in some areas of offering within the stores (homeware, soft furnishings,
electronics and luggage) M&S were really a marginal player. For instance, ask a shopper in
a queue in M&S where they would go to buy a TV and they are likely to say John Lewis
and not M&S.
Other themes to explore and challenge in the classroom would be:
Past culture; how much has it changed, where are the indicators?
2. What strategic options do M&S have and what recommendations would you make to the
board of M&S?
One of the primary criticisms levelled at M&S. How much have they really changed if they
have, is it enough? For sure there have been repeated phases of change and updating/upgrading
at M&S; but a question to encourage students to ask is: is this just what is needed to maintain
steady as we go or is more radical change needed? In the past twenty years has M&S just been
playing catch up?
The challenge for CEO Mark Bolland is summarised in Figure 7.2 the Ansoff matrix. One
option would be to continue in the direction that Rose had travelled and maintain a steady-as-
you-go option. Making business improvement to keep in close competitive touch with the tough
retail market and keep trying to attract the key 30-year-old female demographic: essentially
option A in Figure 7.2 (i.e. market penetration).
Option A: Making business improvement with a steady-as-you-go approach should not be
underestimated in terms of its difficulty as an option. This would mean that M&S have to
continue to innovate, continue to improve on levels of efficiency and effectiveness in all areas
of their operations. The dangers here are:
That there remains a lack of clarity on what their source of competitive advantage should be
based on in the future; and arguably in the past?
There may well be students who will argue for this option. If so it is worth pushing them to be
clear on just what they mean by it, how competitive advantage might be achieved in any of them
and how and why they expect greater growth and returns than in the past.
Option B: Some of M&Ss innovations that students suggest under option A above may in fact
meld into option B, taking M&S into new service/product areas. Note Roses predecessors
already made some mileage taking M&S into BP service stations, into new formats such as
Simply Food, on to the web and into insurance.
The debate might be about:
What can M&S add to its products and services within its current market? Does it need to
offer a fuller range of electrical goods in its homeware section, or wider ranges of furniture
It may be interesting if students can consider or indeed re-consider some of M&Ss strengths
(e.g. its store network) as a weakness in their analysis. For instance, if M&S stayed in high
street fashion, could it be a concession in another store? This might leave some of its shopping
mall locations available as large food and consumer good outlets: e.g. an up market Tescos in
upmarket locations?
Option C: M&S have famously attempted and failed to crack overseas markets in the past.
However, with the UK base running well, should overseas expansion be re-visited? Could the
M&S model be applied in new and emerging markets for example?
Of course, the primary challenge would be the absence of brand strength. The M&S brand would
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Option D: In terms of the discussion of options B&C it should be noted that when students
begin to talk about the conflation of both new products and new markets, they are by default
talking about new businesses and travelling toward conglomerate diversification. For example,
if M&S were to move into the garden centre business, this would be both a new product area
and a new market.
The radical thinkers in the class might go further however, and consider the possibilities of
conglomerate diversification; i.e. an M&S corporation owning all manner of different
businesses. An example could be the easy-brand that Stelios Haji-Ioannou attempted: easy jet,
Figure 7.2 infers that the lowest risk option is A and the highest risk is D. That, as firms
increasingly diversify, risk grows. Students might be encouraged to consider if this is so for
M&S. Some may argue that the risk of A is, itself, relatively high if the shareholders cannot be
satisfied. If so, where does the risk of diversification become too great?
Concluding with the theme of is this as good as it gets, students can be asked to consider
would any of the options be enough. If not then do M&S need to address even more
fundamental questions such as:
Should they focus on clothing rather than food or vice versa?
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C A S E T E A C H I N G N O T E S
Hotel du Vin: strategic entrepreneurship and
innovative continuity in the boutique hotel sector
Michelle Lowe, Neil Wrigley and Katherine Cudworth
1. Introduction
This case explores six dimensions of strategic entrepreneurship which defined the development
2. Position of the case
The case considers brand creation, innovation and expansion as well as the challenges of
3. Learning objectives
The main learning objectives of this case study are:
To provide an illustration of innovation-led brand development.
To explore the issues involved in the four stages of the entrepreneurial life cycle.
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4. Teaching scheme
The case could be used as the basis for plenary discussion, small group work or individual
assignment. With cross reference to publicly available documents (e.g. press reports and
5. Questions for discussion
1. What were the key innovative attributes of Hotel du Vin that contributed to the rapid
development of its brand equity?
6. Case analysis
1. What were the key innovative attributes of Hotel du Vin that contributed to the rapid
development of its brand equity?
The HdV defined the UKs boutique hotel sector by filling a discernable gap in the middle
market for good quality, affordable, provincial hotels. With an emphasis on quality food and
wine at sensible prices and with charismatic and knowledgeable leadership provided by the
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2. What are the key strategic issues for entrepreneurial innovators, like Hotel du Vin, in
different stages of the entrepreneurial life cycle?
Entrepreneurial ventures typically go through four stages of a life cycle (start-up; growth;
maturity and exit) see Section 9.3.2 and Figure 9.6 in Exploring Strategy. Each stage of the
life cycle raises important strategic issues for entrepreneurs and these issues are well illustrated
As the chain grew, Hutson worried that the firm would begin to become less flexible and start to
lose the cohesiveness vital to effective knowledge sharing between management and employees.
To counter these problems Hotel du Vin introduced its system of incubation which helped to
preserve the culture of the group but as the chain grew still further this policy became less
feasible.
Maturity: A key challenge at this stage is for entrepreneurs to retain their enthusiasm and
commitment and also to generate new growth. In the case of Hotel du Vin this was never a
problem. The chain grew very quickly (from one hotel in 1994 to six hotels in 2004). It all
2. How successfully was the Hotel du Vin brand equity transferred to, and maintained by,
MWB in the post acquisition period?
An inevitable consequence of the growth and subsequent sale of the HdV chain was a struggle
to maintain brand identity. A core leadership team and the filtering of that team through new
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3. What are the likely future challenges of HdV in the light of the collapse of the parent
company MWB holdings and its subsequent purchase by KSL?
It will be interesting to track the future development of the HdV chain in the light of its
purchase by US private equity group KSL in 2013. The chain will face continued challenges in