Marks and Spencer 2008 Annual Report Download - page 47

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marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 45
About us
Key performance
indicators Financial statements
Shareholder
information
Principal risks and uncertainties continued
We fail to deliver sales
growth by failing to meet
customer expectations
See pages 26 and 27
Adverse effect on
financial results
Lost market share
and customer loyalty
• Capability to grow sales via new products and new customers
• A focus on improved order fulfilment and customer service
M&S DIRECT: We are further developing our M&S Direct business as an important part of our commitment to becoming
a multi-channel retailer.
We fail to grow our
International business
successfully through franchise
operations, partnerships or
wholly-owned businesses
See pages 28 and 29
Adverse effect on
financial results
Damage to brand
• A focus on appropriate resource required to integrate
new ventures
• New operational and financial processes in place to
support growth of International businesses
• Strong relationships forged with key stakeholders
INTERNATIONAL: We have ambitious plans to grow our International business through expanding our franchise operation,
entering into partnerships and developing wholly-owned businesses in emerging economies.
PLAN A: We launched our five-year ‘eco plan’ in January 2007 to address challenges across five areas:
climate change, waste, sustainable raw materials, fair partner and health.
We fail to deliver, measure
or communicate
performance against our
Plan A commitments
See pages 30 and 31
Lost stakeholder trust
and confidence
Damage to brand
• Governance in place to achieve our commitments,
including a new Director of Plan A
• Performance reporting further developed
• Plan A integrated into day-to-day operation including
Plan A Champions throughout head office and stores
• Open dialogue with stakeholders developing our mutual
understanding of the challenges we face
PEOPLE: As we continue to grow our business and invest for the future, it’s important we keep strengthening our team
at every level from shop floor through to management.
We fail to attract, develop
and retain talent with the
correct skills and capability
for succession
See pages 6 and 20 and 21
Inability to develop and
execute business plans
Competitive
disadvantage
• New senior management structure in place
• A focus on senior leadership development and succession
• Competitive reward packages
• Buying Academies in head office and coaches in stores
• Graduate recruitment and development
• Employee communication
• Tracking of employee satisfaction surveys
• Tracking of customer perceptions of service
Risk Impact Examples of mitigating activities
Business review Financial review Governance