Marks and Spencer 2016 Annual Report Download - page 12

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10
MARKS AND SPENCER GROUP PLC
STRATEGIC REPORT
LISTEN & RESPOND STRATEGY & PLANNING DEVELOP & DESIGN
OUR RESOURCES & RELATIONSHIPS
We create long-term value through the
e ective use of our resources and relationships.
We manage these in line with our core values of
Inspiration, Innovation, Integrity and In Touch.
These values infl uence how we behave and they
run through everything we do – they make the
M&S di erence: making every moment special
through the products and services we o er
our customers in the UK and internationally.
Activities: By cultivating talent and
harnessing our people’s ideas, we can
continue to develop the delicious
and stylish products that our customers
love. 65% of our clothing ranges are now
designed in-house and this will rise to 70%
as we continue to create value from our
intellectual capital. The skills in our Food
team cover the breadth of the industry,
from nutrition to marine biology, and our
product developers are experts in scouring
the world for the latest trends and fl avours.
Outcome: Direct design gives us greater
fl exibility and control over how we source
so we can better respond to the market
and customer demand. The expertise in
our Food team gives us the authority to
deliver the new and exciting products
that drive sales.
Activities: We create long-term sustainable
value through the delivery of our strategy
and prudent fi nancial management.
We will continue to invest in the business
to support future growth whilst tightly
controlling costs. It is not only fi nancial
resources that need e cient management
– it is natural resources too. Through Plan A,
we are evolving a more sustainable way of
retailing. Plan A infl uences every stage of
our planning, and infuses all that we do.
Outcome: By strengthening our fi nancial
position through the delivery of improved
profi ts and strong cash fl ow, we are
improving returns to shareholders.
Activities: Our customers are our most
important stakeholders. Through detailed
understanding of their needs and changing
behaviours, we can achieve our core
purpose of making every moment special.
Our Customer Insight Unit analyses
feedback from over 60,000 customers
a month. We also gather insights from
our team of over 65,000 employees who
serve customers in our stores. Furthermore,
we engage with over 5 million followers
daily on social media. By continually
analysing what they tell us, we can equip
our people with the insight to learn and
adapt to meet our customers’ needs.
Outcome: Knowing what our customers
want helps us tailor our products, channels
and services around them so that they
have more reasons to shop with M&S.
OUR PRODUCT & CHANNELS
Maintaining our channels and
supply chain infrastructure to
meet customer demand
OUR INTELLECTUAL CAPITAL
Strengthening our brand through
creation and protection of our
intellectual property
FINANCIAL
Generating returns for
our stakeholders through
e ective management of
our fi nancial resources
OUR BUSINESS MODEL
OUR BUSINESS
CREATING
SUSTAINABLE VALUE