Individual:

Coursework

C11ME – Quality Management

Critical evaluation of the quality

management strategy for Marks and
Spencer.

Afiya Ashraf (MSc Business, Strategy,

Leadership & Change): H00391246

Professor: Tarik Kandil

Word Count:
 Table of Contents

Table of contents

Introduction

References

Appendices

Table of Appendices

Appendix 1:
 Introduction

Marks and Spencer (M&S) is best known for its high quality which predominantly focuses on its own
branded products of clothing, home, banking & services and food (M&S, 2021). Whilst it is a British brand it
has effectively created global presence with 1,509 stores, 70,000 employees globally, 103 global websites
and serves around 30-million customers annually (Bayut, 2022). The first store in the Gulf opened in Deira,
Dubai in 1998 and successfully expanded to 17 outlets scattered around the UAE; M&S celebrated 20 years
in the UAE in 2018 (Bureau, 2018). This report will utilise selected quality management (QM) tools and
techniques to critically evaluate its QM strategy. For the purposes of this report the focus will be on M&S
two highest earners, clothing and food only with emphasis on its UAE market. Please see appendix 1 for
elaboration on the company profile and rationale for selecting M&S.

Total Quality Management (TQM)

Total Quality Management concepts have been seen as essential to organisations, as well as to the people
that compose them. Numerous organisations have shown a link between quality and profits therefore it is
critical to design a strategy for quality based on TQM concepts (Dahlgaard, Khanji and Kristensen, 1997).

In the midst of the Covid-19 outbreak, which corresponded with income reductions and mass
unemployment, consumer spending was hampered (Diaz, 2021) therefore the economy is struggling.
However, the issue is not only to make high-quality products, but to do it in the most cost-effective and
efficient way possible (Basu, 2004). TQM is a business strategy that examines the goods and services
offered by a business in connection to the processes used to develop them (Charantimath, 2011).
Additionally, it places considerable emphasis on the workforce to guarantee that the outputs properly
meet consumer expectations. TQM-driven organisations routinely meet or exceed customer expectations.
As a result, TQM might be described as ‘a journey where the sky is the limit for excellence’ (Charantimath,
2011). Organizations will differ in their selection of tools and techniques considered acceptable for TQM. A
single tool may be characterised as a device having a well-defined function and application with a
specific focus. Whereas a technique has a broader applicability that often requires a deeper level of
thinking and expertise (Dale and McQuater, 1998).

To understand M&S’s strategic position and competitive stance various analysis tools are used which will
help identify strengths, areas of improvement and gaps from a quality management angle.
 M&S’s Quality Management Strategy: Critique of Strategy, Strengths and Improvement Areas

Quality improvement and the preservation of the business position in the market are impacted largely by implementing “soft” TQM aspects (Fotopoulos and
Psomas, 2009). Therefore, this section will explore selected soft elements employed by M&S; the critical analysis is conducted in upcoming chapters.

Customer focus defined in TQM as per literature How to implement this TQM principle Benefits of being customer focused
This TQM concept refocuses attention on the customer; • Conduct research and get a thorough understanding of the customers'  Increased sales, income, market share, and
they judge the product's overall quality for their requirements and expectations. brand awareness.
requirements. Thus reassures the buyer that they have • Company aligns its aims with the demands of the customers and their needs).  High levels of customer retention
purchased a high-quality product. Understanding • Communicate with consumers, gauge their comfort, and utilise the data to resulting in repeat purchases
the customer's desires or requirements allows for a greater identify areas for process improvement.  Increased likelihood of word of mouth
opportunity to putting the correct materials, people, and • Maintain customer relations and communication. resulting in recommendations of goods and
procedures in place to meet or exceed customer • Strike a balance between gratifying consumers and other stakeholders. services.
expectations (Lucidchart, 2022).
Customer Focus: Source: (Lucidchart, 2022)

How M&S defines their TQM strategy for ‘Customer Focused” and how it achieved this (or proposes to) Sources: (Vizard, 2014; Davey, 2021).
1) In 2014 M&S stated that they promise to do business according to what “matters most to customers” thus being led by the customer needs and focusing on their feedback.
> M&S undertook a 'significant transformation' to become "more customer-focused than ever before" as it aspired to produce long-term sales growth by significant investment.
2) Particular attention to womenswear – better fitting sizes, style for all body shapes & more designs to ensure customer satisfaction. And attention to M&S foods.
> After 12 consecutive quarters of declined sales M&S promise to focus on womenswear for more appeal. M&S dedicated investment for product innovation and better marketing to capture its
audiences. For foods, investment was also made to create ‘special’ dishes and cater to more diets.

Criticisms and thoughts:

2014 is highlighted (for comparison) as M&S invested millions after a series of sale losses. However, fast forward to 2022, whilst food sales are commendable
and notably high, M&S is still struggling with clothing sales. In 2019 M&S reported a hit of £145m on unsold stock as clothing sales fell by 75% (Vizard, 2014).
In 2021 it was reported that M&S saw a profit loss of 90% and described it to be a “lost year” because of the pandemic (Davey, 2021). However, although the
pandemic has indeed been challenging for many retailers, not all have had such “lost years” as M&S has. Moreover, despite investing in clothing and foods in
2014, only foods have reaped the benefits but sale losses in clothing remains and is explained to be the effects of the pandemic. However, perhaps the issue
is not the pandemic but rather a lack of customer focus in clothing. TQM recommendations will be made to help M&S with customer focus.
 Leadership:
Leadership defined in TQM as per literature How to implement this TQM principle Benefits of (effective) leadership
Leadership is a relationship between a team and an individual centred on authority and Implementing TQM for leadership attributes may  Implements company vision and beliefs.
influence in which leaders aid these persons in achieving a predetermined goal (Cooper, involve the following: effective communication of  Ascertains successful communication.
2010). Approachable, likeable, and persuasive are just a few of the features of the mission statement, successful execution of  Encouragement & inclusivity of staff.
successful leadership (DuBrin, 2012). According to Crossan et al. (2012), organisations quality processes, talent retention & engagement,  Reduces cost wastage (i.e., productive staff).
need leadership to survive in today's difficult climate, and although this is a somewhat and timely data, analysis & awareness of quality  Meets customer’s needs & expectations.
antiquated position, they clarify that this is because organisations 'need' leadership, standards (Mishra & Pandey, 2013). It is the  Enhances staff morale.
thus demonstrating the critical role of successful leaders. leader’s role to develop a quality culture (Sallis, (Mishra & Pandey, 2013; Sallis, 2009)
2009).
Description of M&S’s leadership strategy for TQM:
CEO Steve Rowe (2016-present) started his career at M&S stacking shelves thus allowing him insight having worked in every department. He was tasked to ‘transform’ M&S and to do this he started
an “Suggest to Steve” campaign in 2018. This is a forum for staff to discuss ways in which M&S may improve, whether it's a product, a procedure or a style of working. From store to the service
centre, every M&S employee is encouraged to express their ideas. The challenge was to facilitate this degree of strategic dialogue on a never-before-seen scale and was achieved by collaboration
with Microsoft Teams (Sideways6, 2022). Now in 2022, employee involvement is at an all-time high, with over 3,000 ideas, likes, and comments posted each month (Sideways6, 2022).

Examples: as Michaela proposed at Covid-19, a new reusable bag to collect money for the NHS. Steve approved the proposal, which raised over £150,000; Sarah and Simon, who proposed M&S
create a new set of more diverse and inclusive toy dolls for children; and Lee, whose suggestion to manage some aspects of people compliance online saves over 600 pieces of paper each week.
Three instances from hundreds of 'Yeses.' However, suggest to Steve is more than just numbers. It's about the concepts and the people that support them (Sideways6, 2022).

Commendation and thoughts:

M&S staff responded quickly and enthusiastically to 'Suggest to Steve'. After

two years, 20,000 ideas were submitted and 500 were implemented,
transforming M&S into a better place to work and shop (Sideways6, 2022);
this could not have been accomplished without strong leadership and a

that all six core values and elements of the proposed

strategic approach to total quality management (Sideways6, 2022). Mr Rowe
emphasised employee buy-in for his transformation initiatives and the

TQM
development of an innovative culture across the organisation. His leadership
approach is driven by a commitment for staff and business, and his desire to
build an open and involved community was infectious (Sideways6, 2022).

framework have an obvious customer focus with an

Literature explains the importance of effective TQM in leadership requires
clear communication to improve quality, commitment to disable artificial

emphasis
boundaries, whether cultural or organisational and for leaders to establish
appropriate mechanisms for measuring and reviewing success (Sallis, 2009);
all exemplified by Mr Rowe's innovation initiative. As a result, M&S's
leadership is commendable and deemed as an effective QM strategy.
on customer satisfaction and continuous improvement.
Realizing these six core values and elements is to
identify the
core educational business process, namely teaching and
student
learning, that provides the main vehicle for achieving
customer
satisfaction and quality improvements.

that all six core values and elements of the proposed

TQM
framework have an obvious customer focus with an
emphasis
on customer satisfaction and continuous improvement.
Realizing these six core values and elements is to
identify the
core educational business process, namely teaching and
student
learning, that provides the main vehicle for achieving
customer
satisfaction and quality improvements.

(Figures sources: captured from Sideways6, 2022)

Cost of Quality (COQ):
Cost of Quality explained for TQM as per literature Implementation and benefits this TQM principle
Businesses emphasise quality as the primary customer value and see it as a vital success element The COQ is made up of expenses related with > Prevention > Appraisal >External failure >
in attaining competitiveness. Any real endeavour to enhance quality must include the related Internal failure and is generated from non-value-added operations or wastage in the process.
expenses, as the goal of continuous improvement initiatives is not just to satisfy customer needs, The focus will be on avoidance rather than detection, which will reduce the expense of
but also to do so at the lowest possible cost. This can only be accomplished by lowering the monitoring and inspection. Training and action-oriented approaches will increase prevention.
expenses associated with achieving quality but lowering these costs is only feasible if they are However, the actual gains will come from a large decrease in internal (rework, downtime) and
recognised and quantified. As a result, leaders should prioritise monitoring and reporting on the external failures (handing complaints, loss of goodwill). As demonstrated in Figure 1, the overall
cost of quality (Schiffauerova and Thomson, 2006). cost of quality will decrease with time (Basu, 2004).
Description of how M&S’s can be/is impacted by the cost of quality
External failures: from working in M&S customer services, the returns rate is fiercely high (especially after Christmas). M&S is well known for its after Christmas sales therefore as it has an extended
returns policy period this often means customer return unwanted gifts only to buy them cheaper in the sales. M&S is also struggling to compete with fast fashion retailers (e.g., H&M or Asos)
cheaper fashion such as (Primark in the UK or Shein online) of which heavily target adults as well as the younger generation which M&S has been criticised for failing to do for years (Wood, 2018).
Internal failures: Loss of time during downtime, i.e., if staff are not managed in a productive manner. Or mishandled stock e.g., damaged or dirty goods which are then rejected by the customer.
Appraisal: These costs are related to consumers and suppliers evaluating acquired materials, procedures, goods, and services to verify that they meet requirements. For example, if the clothing
quality is not appropriate, incorrect stitching, poor quality of fabric, poorly tasting M&S food, uncomfortable clothing etc. The products simple fail to meet the high quality which M&S stands by can
be costly.
Prevention: These are the additional costs associated to defect prevention process. These are systematic and proactive procedures that are taken before a product or service fails. M&S has vigorous
processes in place for this as it takes pride on its quality. Some examples: “Clothing Quality Charter and Environmental and Chemical policy in place for all suppliers, policies for quality control, in
accordance with ISO/IEC 17021:2015” (M&S Plan A Report, 2021).

Criticism and thoughts:

As mentioned earlier M&S has been criticised for its clothing range and has
reported losses for many years. Consequently, excessive unsold stock leads
to reduced shelf space, it sets M&S back - on keeping up with ‘fast fashion
and means M&S falls behind ‘on trend fashion’. Quick turnaround required
to keep customers wardrobes up to date is forfeited. Comparatively, Zara
has an effectively strategy whereby most designs only have a shelf life of
two weeks before new designs are swapped out for old. It maintains footfall
and customers make instant purchases. This also means designs which were
unpopular are reworked quickly and those which sold well and brought back
with subtle changes: this strategy keeps revenue high and reduces the cost
of quality. M&S has failed to make a significant change therefore continues
to endure quality related costs. Figure 1 of increasing quality awareness and improvement activities for cost of quality. Source:
Dale, Bamford and Wiele (2016, p. 116).
 Overview of the current retail environment & focus on identification of opportunities and strength

A SWOT analysis is technique used to determine the

level of competition and in doing so enables
attention on alternative
The growth and marketstrategies for improvement
share matrix known as the
(Basu, 2004). Main
BSC (matrix) is a factors have
valuable toolbeen highlighted the
for comparing for
M&S in figure 1. of a company's offerings to the
competitiveness
market growth rate - relative market share
Key Findings:
within market (Armstrong & Kotler, 2009). See
Significant strengths identified are M&S increasing
figure 2 which illustrates how M&S is positioned in
global presence and commitments to sustainability
the market. It highlights areas of weakness which
which should be continued. However, M&S must
is elaborated on in the upcoming sections from a
capitalise on its income stream from food. With
QM point of view.
review to its costing strategy, there is potential to
Key Findings: M&S ‘s success in foods is
attract a further demographics of customers (e.g.,
exemplary of what can be achieved if done right.
lower income households). Moreover, it must
Despite the struggles of the pandemic M&S not
remain ahead of competitors and ‘think outside the
only made sizable profits from food but it was
box’ as M&S has competitor from both online and
reported to have been the savour of the company
instore platforms in an already busy and fiercely
(Chapman, 2021). Figure 2.1 illustrates the true
competitive market place.
growth of M&S foods however comparatively its
clothing is now concerning which explains why
general merchandise stores are closing and food stores are opening – a strategy to capitalise on its high earnings departments.

Figure 2: Own illustration of the BSC Matrix for M&S

 Recommendations to enhance competitive advantage through improved approaches of QM

Kaizen tool for continuous improvement is recommended to M&S to enhance competitive advantage by
eliminating the identified weaknesses.

Kaizen is an effective tool for improving all

processes by engaging all staff, from the CEO
to the front line, it goes beyond correcting a
problem or putting in place a remedial action.
It promotes productivity by supporting in the
synchronisation of work and the development
of a healthy environment, as well as enabling
staff to recognise issues and propose realistic
solutions (Mani, 2009). Stages in continuous
cycle of kaizen activities are illustrated in figure 3. Figure 3. Source of image: (Tech Quality Pedia. 2022)

The PDCA cycle for continuous improvement is another name for the Kaizen tool and to use the Kaizen
technique 5W and 2H questions need to be asked. These will lead to actions such as eliminate, change,
simplify, or improve. This strategy may be used to any aspect of M&S's operations. Figure 4 exemplifies
how this technique can be used by M&S.
 Figure 4. Source of image: (Skilltech, 2020)

Utiling the aforementioned Kaizen methodolody coupled with basic QM tools (as discussed below) will be
advantagous to M&S; illustrated below for the weaknesses identifed from the earlier chapters.

Customer Focus: Academic theory explained that this soft element refocuses on the consumer, who
assesses the product's entire quality, ensuring the consumer of a high-quality product. Understanding the
customer's objectives or needs enables for better planning of supplies, people, and processes to meet or
exceed expectations (Lucidchart, 2022). However, focusing on M&S clothes and its year-over-year sales
decline, there was minimal data gathering that was evidence when researching the
company which helped capturing consumer comments on M&S clothing categories in practise. As a result,
it is reccomended that M&S should use its many channels to gather customer feedback through surveys
and polls in order to capture a better understanding of the issues with its present clothing options.
Following that, the data should be displayed in Pareto Charts, which are a useful tool to track the issues
that have been identified (Eyers & Naim, 2019). Because no one tool is flawless, it is advised that Pareto
Charts be used in conjunction with Check Sheets. The Check Sheets will provide a clear picture of the data
gathered and will assist in identifying the most critical and relevant information thus allowing M&S to make
changed accoridngly. Furthermore, Check Sheets are regarded as a useful tool for communicating with
several departments (Nilsen, Elin 2019), which is important to M&S. It will need to work with a variety of
teams, including design, textiles, and production. The Pareto Chart, when used in conjunction with check
sheets, will allow focus on the areas that have the greatest impact, track progress and distinguish the core
grounds of a flaw or failure (Wilkinson, 2006).

Leadership: Academic theory explains that leadership is a relationship between a team and an individual
centred on authority and influence in which leaders aid these persons in achieving a predetermined goal
(Cooper, 2010). M&S aligned well to academic theory in its practices and is exemplary of how the
collaboration between leadership and employees at all levels can results to higher sales, staff engagement,
better morale and attainment of company goals and vision. Therefore, there no recommendation but
rather a commendation though it is advisable that M&S utilises similar TQM strategies throughout its
weaker parts of the business to reap the same benefits and sustain competitive advantage.

Cost of Quality: Academic theory emphasises quality as the primary customer value and see it as a vital
success element in attaining competitiveness (Schiffauerova and Thomson, 2006). However, M&S has not
demonstrated firm footing amongst competitors from the market analysis but it has shown cost of quality;
M&S must make measures to monitor its costs and reduce costs wherever possible. It is recommended
that alongside Kaizen tools M&S also utilises fishbone analysis in its general merchandise departments.
M&S illustrates how the fishbone analysis is implemented in M&S Foods (see figure 5) therefore it is
appropriate to implement this into further departments.

Figure 5. Source of fishbone image: M&S systems for success lean toolkit PDF, 2020).

Conclusion:
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 Appendix 1

Company Selection:
Established in 1884, Marks and Spencer (M&S) is best known for its high quality and predominantly
focuses on its own branded products of clothing, home, banking & services and food (M&S, 2021).
Whilst it is a family owned, British brand it has global presence with 1,509 stores, 103 global
websites and serves around 30-million customers annually (Bayut, 2022). The first store in the Gulf
opened in Deira, Dubai in 1998 and successfully expanded to 17 outlets scattered around the UAE;
celebrating 20 years in the UAE in 2018 (Bureau, 2018).

Company Profile and Strategic Priorities:

M&S has set itself an aim of transformation' which is to reintroduce sustainable, profitable growth
to the organisation and restore M&S's uniqueness for its consumers which remained unchanged
from previous years. In 2021, as part of M&S's "Never the Same Again" initiative, it expedited key
components of the transition in order to maintain its relevance in an evolving customer world. As a
consequence of the actions taken, the pandemic has resulted in a significantly changed M&S (M&S:
annual and financial report, 2021).

Strategic priorities at a snapshot (figure 1)

M&S overview (figure 2)
(Figure 1, Source: M&S: Annual and financial report, 2021)

(Figure 2, Source: M&S: Annual and financial report, 2021)

Mission Statement:

M&S's mission statement is "to make aspirational quality accessible to everyone, via the breadth
and variety of our goods" (M&S, 2021; Mission Statement, 2022). This demonstrates the company's
desire to sell high-quality items globally while diversifying its offers. M&S aim to develop a
worldwide community in which everyone may easily access their product offerings. Additionally,
has a "Plan A, because there is no Plan B" in place that emphasises a sustainable future and the
importance of collaborating with communities to ensure environmental protection (M&S, 2021;
Mission Statement, 2022)

Vision Statement:

M&S has a vision statement of "to provide a standard against which its competitors may be
measured, from customer experience to care for the environment and community and to the
working environment for employees” (M&S, 2021; Mission Statement, 2022). The vision statement
demonstrates that M&S leaders are committed to reaching the heights of success by providing the
finest customer experience possible, which may serve as a standard for others. They want to foster
an atmosphere in which they may flourish in all areas in order to measure competition. Overall,
M&S's mission and vision exemplifies the importance of having a seamless QM strategy in-order to
deliver such aims (M&S, 2021; Mission Statement, 2022).

Values:

M&S values provide a continuous flow of trust and openness across the system that serves as the
company's foundation (M&S, 2021; Mission Statement, 2022).

 Integrity: M&S is devoted to doing business ethically and upholds the standards of integrity
in all of its interactions. It believes in treating everyone with dignity, from staff  to
consumers.
 Innovation: Throughout the firm, from designs and materials to technology, sustainability,
processes, and operations, innovative ideas are demonstrated.
 Trust: Bringing everyone together (customers, suppliers, stakeholders, and staff) and
ensuring openness is ingrained in Marks & Spencer's DNA and has been essential in the
company's success.
 Willingness to Change: M&S aspires to be an engaging, dynamic, and empowered company.

Rationale for M&S selection:

Although the food supply system is relied upon globally (Macfadyen, 2015), there is ongoing
pressure on the retail sector because of fierce competition (Donthu & Gustafsson, 2020). In the
midst of the Covid-19 outbreak, which corresponded with income reductions and mass
unemployment, consumer spending was hampered (Diaz, 2021), a 2.9% reduction in global retail
sales in 2020 was seen, resulting to a significant effect on the retail sector ( Sabanoglu, 2022).
Therefore, retailers must improve the quality of their resources in order to maintain their
competitive advantage (Tay et al., 2016). Therefore, as consumers rely heavily on the food retail
industry it makes for a particularly interesting sector to critically evaluate more so due to the
impact of the pandemic coupled with Brexit; with a focus on M&S and its quality management
(QM) strategy.

Additionally, I worked for M&S between 2010 - 2014. I began as a customer service representative
and advanced to a supervisory position. I received "spot light awards" for exceptional customer
service and was commended by management, often requested to take on managerial duties to
assist during peak periods. I was later invited to apply for the graduate scheme but declined as
working in retail did not align with my future career aspirations. My experiences spanned across
departments, allowing me to have a broad understanding of the organisation, although the latter
portion of my time at M&S was spent in the Food Hall.  As a result, the ultimate rationale for
choosing M&S is that my own experience will assist in the analysis and allow for some reflection
throughout the report.

Appendix 2