Marks and Spencer 2009 Annual Report Download - page 5

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Marks and Spencer Group plc Annual report and financial statements 2009 Directors’ report 1
Sir Stuart Rose Chairman
Our Plan for the future
Overview by Sir Stuart Rose
We have spent the last five years putting in place strong
foundations in line with our long-term plan. We have
introduced new products and services in our core business
of General Merchandise (GM) and Food, broadened our multi-
channel offer, expanded our international presence, improved our
property portfolio, and put Plan A at the heart of our business.
We are not immune to the short-term impact of the recession
and have had to take action to protect the strength of the
balance sheet. As a result we have cut the dividend by 20.9%.
While this was a difficult decision for the Board, we believe it is
the right thing to do for two main reasons: because economic
conditions remain uncertain, and because of the need for us
to retain financial strength and flexibility.
Throughout the year we have prudently managed costs
and continued our investment in our systems and supply
chain so we can improve efficency across the business.
We also responded to the changing needs of our customers
by improving our values without compromising on quality;
something we view as short-term pain for long-term gain.
As well as helping us through these tough conditions,
these steps will enable us to take advantage of the opportunities
that lie ahead and maximise value for our shareholders.
With a strong brand, the right products and an experienced
management team, we are now:
Increasing the pace of change and operational execution in
the business;
Leveraging M&S Direct by building more channels to market;
Building our international portfolio to grow our global customer
base; and
Reinvigorating our brand communications.
In addition to leading M&S successfully through the recession,
another of my priorities is to ensure there is a strong
management team in place and an appropriate succession
plan for the business.
As we celebrate our 125th anniversary we do so with an
unrivalled reputation for Quality, Value, Service, Innovation
and Trust. These core values are as important today as they
ever have been. They are all about doing the right thing which
is, quite simply, how we do business.