Critical Review of Marks and Spencer's Financial Performance and Strategies

B: Learning Outcomes

1. Deploy appropriate accounting theory and tools to the critical evaluation and interpretation of financial reports.

2. Master critical awareness of how management accounting has developed tools and techniques in order to improve strategic decision making and performance management.

3. Deploy appropriate accounting theory and techniques to the evaluation and analysis of performance measurement.

4. Critically evaluate strategic and stakeholder analysis using appropriate accounting theory and tools.

C: Assessment Task

Retail Economics chief executive Richard Lim said the cuts represented a "massive reduction" in the M&S workforce. The retailer was "desperately attempting to reposition the business towards a new-normal emerging in the sector". "Retailers were already battling with the pace of structural change facing the sector but the impact of the pandemic has been a step-change for the industry."

He said retailers remained in "survival mode, preserving cash and hanging on for more sustainable levels of demand to return".

"But the way we shop has changed on a permanent basis for many parts of the sector almost overnight.

"The reality is that many more retailers will fail and the number of job losses will ramp up as government support is withdrawn. This is the calm before the storm."

A financial summary of Marks and Spencer (M&S) Plc performance for 2014 to 2016: Year Revenue

Profit before Tax

Earnings per share (p)

Compile more recent financial information yourselves. Using all the financial data available, critically review the financial performance of M&S PLC.

Your report will need to include an analysis of any new plans and strategies.

· Assess and review the financial summary above and the most recent financial performance of the group leading up to and including YEAR END 2020. You are required to undertake additional research to determine the following:-

· What have been the underlying reasons for the financial performance? (identify and discuss significant strategic developments)

· What significant trends/ developments have occurred since 2014 in respect of the case study organisation and relevant business sector?

· What do you consider to be the major financial performance challenges and opportunities in the foreseeable future?

D: Specific Criteria/Guidance See below

E: Key Resources

Atrill, P. and McLaney, E. (2020) Accounting and Finance: An introduction, 10th Ed., Pearson.

Atrill, P. and McLaney, E. (2019) Accounting and Finance for non specialists, 11th Ed., Pearson.

Atrill, P. and McLaney, E. (2018) Management Accounting for decision makers, 9 th Ed., Pearson.

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