Critically assess any additional logistics strategy approaches that could have been used to develop existing logistics capabilities.
The company initially failed to adopt flexible strategic approaches to its logistical needs in its international operations based on longstanding corporate practices and an ingrained organizational culture. According to Canals, "Marks & Spencer's growth was based upon the values and policies that had served it so well for so many years. Its achievements were a springboard for new challenges. However, in 1999 Marks & Spencer was facing challenges that seemed to require approaches that were different from the ones the firm had executed so well in the past" (p. 74). In fact, the company had a lot at stake during these early years as it sought to apply the same approach to logistical management that had proven effective in the past. In thi regard, Canals reports that, "As the British retailer faced the reality of a mature market at home, with stagnating retail sales, it had to reconsider wholeheartedly its timid and so far not very successful -- international expansion" (2000, p. 74).
The research is consistent in describing Marks & Spencer's branding efforts as being highly effective, but the same approaches to marketing were not being matched by responsive logistical management practices to support them. As Canals points out, "Marks & Spencer was overwhelmingly dependent on the home market, and only a few of the international ventures in the retailing industry had been successful. A more aggressive international expansion would mean that some of the experiences, values, and policies that had been so successful in the past in the British market would have to change" (p. 74). Based on the foregoing, in order to overcome these initial challenges to the internationalization of its operations, Canals suggests that there was more involved than just fine-tuning the supply chain, and the changes needed had to begin at the top. According to Canals, "The British retailer would have to forgo some of its most cherished practices to adapt to a new world -- among them its branding 'Buy British', its buying policies, its network of British suppliers, and its strong centralization around the corporate centre at Baker Street" (2000, p. 74).
More importantly, the company was faced with the need to identify better ways to coordinate its supply chain to facilitate the design-to-market process. In this regard, Baker and Bass (2003) report that:
Having greater consistency and control over production realizes savings. The biggest advantage, however, lies in the reduced amount of time it takes to get a design on to the shop floor; the organization can react quickly to the fickleness of pre-teen fashion. Traditionally, this process has taken 28 weeks and [the company] aims to reduce this t 12 weeks. The potential rewards are great as children's wear accounts for about 10% of Marks and Spencer's non-food sales. (p. 155)
This level of consistency, though, does not just fall out of the sky but is rather the result of technological solutions that are used to promote a company's strategic goals for growth, but implementing and sustaining these initiatives over time requires more than seat-of-the-pants management and these issues are discussed further below.
Identify the management issues caused by implementing a new logistics strategy with consideration for available capital, technical and human resources.
According to Baker and Bass (2003), Marks & Spencer was faced with a number of factors when it first expanded its operations abroad. For instance, in its primary domestic market in both clothing and groceries in the UK, the company was confronted with more and more consumers purchasing online, but from suburban and even rural regions of the country, further complicating its logistical operations (Baker & Bass 2003). The company needed to decentralize its operations in some ways, and centralize them in others, but there was little room for experimentation and no room for false starts since customer satisfaction was at stake. With around 78,000 employees, the company possesses the human resources capacity to implement and administer new logistics strategies, but organizations by nature are unwieldy and require time to change.
At present, the company appears to possess the corporate know-how and requisite resources to achieve logistical harmonization along its entire supply chain if it applies the lessons learned from its earlier failures to coordinate its logistical function abroad by taking into account local cultural preferences and business practices as well as the purchasing clout to make its requirements stick. For instance, according to the company's "How we do business" report from 2011, "Marks and Spencer is one of the UK's leading retailers with around 21 million customers visiting our stores every week. We source our products responsibly from 2,000 suppliers around the world. Over 78,000 people work for Marks & Spencer in the UK and in 42 territories overseas, where we have a growing international business"...
Walmart Income Statement Analysis of Wal-Mart Income Statement 2009-2011 Broad Overview Wal-Mart operates retail stores classified into the three categories of Walmart U.S., Walmart International, and Sam's Club. International sales account for 26% of net sales, while Sam's Club is just 11.8% (Walmart, 2012, p. 17). An initial perusal of Wal-Mart's income statement evidences the staggering scale of its retailing operations. In 2011, revenues from both retail receipts and club memberships rose 4.3%,
Walmart is the world's largest retailer. The company has operations in many countries around the world, but its biggest market remains the United States. For the 2015 fiscal year, Walmart had revenues of $485 billion and a net income of $16.3 billion, both of which represented an improvement over the year previous. The company's revenues have increased steadily over the past five years, but profits peaked in FY2013 (MSN Moneycentral,
Brief History and Background Sam Walton founded Wal-Mart and quickly grew the company by offering goods at the lowest prices. The stores were originally smaller than the stores of today, and focused in rural areas of the South that were otherwise underserved by retail stores. The current Wal-Mart model emerged by the 1980s as a large format store selling a wide range of consumer goods. The company would later extend its
Management Yes, managers are important to organizational success. But this is a logical fallacy question. All organizations, both the successful ones and the utter failures, have managers. So the question isn't about whether managers are important to success -- mathematically there is 100% correlation between having managers and being successful, but also 100% correlation between having managers and being unsuccessful. Then there is the issue of where organizational success comes from. First,
Strategic Management: Management, Organizational Structure, And Corporate Strategies Manager, management, and organization The significance of managers . Size and strategy of a company Mission, vision, and corporate strategy Organizational culture. In an organizational setting, strategy has always been more of a high stakes game where the management team identifies the company's mission and makes important decisions that focus all the company's capital, resources, and energy towards its attainment. With the dynamic nature of the current business
Their legacy is in traditional multi-tier distribution channel management, where the location of the warehouses had to coincide with the locations of retailers and corporate accounts. Yet today the company is increasingly moving towards could computing which frees them from the location-specific requirements, which the majority of their business is predicated on (Casacchia, 2012). Ingram Micro is in the middle of a multi-year strategic shift from having logistics entirely
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now