Marks and Spencer 2016 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2016 Marks and Spencer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

12
MARKS AND SPENCER GROUP PLC
STRATEGIC REPORT
OUR BUSINESS
CONNECTED VALUE
We are committed to delivering sustainable value for stakeholders.
Here, we summarise how our business model drives value creation,
how the process is managed, and how we measure the value created.
CORE OBJECTIVES BUSINESS MODEL THE M&S DIFFERENCE
INPUTS
Our resources and relationships
Across our business, we depend
upon key resources and
relationships to create fi nancial,
non-fi nancial and strategic value.
OUR PRODUCTS
& CHANNELS
OUR INTELLECTUAL
CAPITAL
FINANCIAL
NATURAL
RESOURCES
OUR PEOPLE
OUR
STAKEHOLDERS
Strategic
objectives
Driving growth
Reaching customers
Improving profi tability
See KPIs p20-21
How our activities deliver strategic value
1. Listen & Respond
By analysing what our customers
want, we ensure our growth plans
are right for the future of M&S.
2. Strategy & Planning
By carefully managing our property
portfolio, we ensure we have the
right stores in the most convenient
locations, meaning we can reach
more customers and deliver
sustainable sales growth.
3. Develop & Design
By constantly improving product
quality and choice, we drive growth
by making M&S more relevant to
our customers more often.
4. Source & Buy
Our progress towards a more
fl exible and direct sourcing
operation is benefi ting our Clothing
& Home margins.
5. Brand & Sell
We sell our products through our
own branded channels, empowering
us with the ability to grow and
develop them in the way that is
right for our customers.
6. Serve & Engage
The rationale behind every strategic
decision starts with our customer
and we drive a high-performance
culture built around giving them
great products and service.
Group fi nancial
objectives
Grow Group revenue
Increase earnings
and returns
Strong cash generation
See KPIs p18
How our activities deliver fi nancial value
1. Listen & Respond
Understanding our customers’
changing needs informs
every product we make and
service we o er.
2. Strategy & Planning
Robust fi nancial management
ensures we are able to continue
to invest in our business and
deliver profi table growth for
our shareholders.
3. Develop & Design
New ideas fuel future performance,
which is why attracting and retaining
the right talent is central to the future
of our business.
4. Source & Buy
We capitalise on the strong,
long-term relationships we have with
our suppliers to deliver e ciencies,
improve margins and drive
profi tability without compromising
on the quality of our products.
5. Brand & Sell
Our brand is at the heart of the M&S
di erence and we create unique
products that drive fi nancial value.
6. Serve & Engage
We build and maintain customer
loyalty by investing in customer
service and linking it to our
employee benefi ts.
Non-fi nancial
objectives
Engage, serve and
retain customers
Foster a skilled,
motivated and
engaged team
Sourcing products
with integrity
E cient and
responsible operations
See KPIs p19
How our activities deliver non-fi nancial value
1. Listen & Respond
Our customers’ trust in the M&S
brand is a key point of di erence.
We retain this competitive advantage
by doing things in the most
responsible way – we do the work
so our customers don’t have to.
2. Strategy & Planning
We improve e ciency and reduce
waste across the business through
the e ective use of our resource
and sourcing systems.
3. Develop & Design
By cultivating talent and
encouraging entrepreneurialism, we
have an engaged and autonomous
workforce empowered to develop
innovative new products and ideas.
4. Source & Buy
We are leading the way on sourcing
products with integrity to exceed
customers’ expectations on quality,
safety and sustainable sourcing.
5. Brand & Sell
We have built our brand on robust
standards of responsibly sourced
products and services.
6. Serve & Engage
We bring our brand to life by driving
engagement and participation
in-store, online and through Spark
Something Good.