Marks and Spencer 2006 Annual Report Download - page 39

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37Marks and Spencer Group plc
Principal risks and uncertainties
There are a number of risks and uncertainties which could impact the Group’s long-term performance. The risk assessment
process is designed to identify, manage and mitigate business risk. The table below gives examples of activities across Group
functions to mitigate against risks and uncertainties in achieving business goals. Further information is given in the Chairman’s
statement on pages 1 and 2, the Chief Executive’s review on pages 3 to 7, the Operating review on pages 8 to 18 and the Financial
review on pages 20 to 25.
Area
Clothing & Home
Description
Delivering profit growth:
•Increasing competition
•Low price high volume retailing
•Economic factors
Examples of Mitigating Activities
•Increased full price market share
•‘Open to Buy’ – fast sellers, new fashion, improved
availability
•Better product, better styling and better value
•Overseas sourcing offices
•Ethical sourcing of products
•Look behind the label
•Growth of international business
Food Growing space and market share:
•Increasing competition
•Limited availability of sites
•Economic factors
•Simply Food expansion
•New formats, eg ‘Hot Food to Go’, bakeries, cafés,
restaurants
•Product innovation, eg ‘Marks & Spencer Cook!’
•Responsible food sourcing
•‘Look behind the label’
•Response to customer expectations eg ‘Eat Well’
and Fairtrade tea and coffee
People Succession planning, retention
and capability
•Competitive pay and performance related bonus
•Career progression for customer assistants, section
and store managers
•Customer service training – ‘Our Service Style’
•Buying Academy in head office
•Business Involvement Group (BIG) – employee
communication, consultation and involvement
Stores Store modernisation and new
routes to market
•Store refurbishment programme
•Improved store layouts
•Consistency of standards across stores
•Expansion opportunities at home and overseas
•Improved e-commerce offer
Business interruption Business continuity planning •Workplace recovery solutions
•Recoverability solutions for IT operations
•Business Recovery and Crisis Management plan
preparedness
•Communications and business continuity planning
with key suppliers