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Unit 9: Store Finance and Controls

14. Money which is owed to a company by a customer for products and services provided on Notes
credit is often treated as a .................................on a balance sheet.
15. A specific sale is generally only treated as an ................................. after the customer is sent
an invoice.

Case Study Financial Management in a Retail Setting – Marks &
Spencer

Introduction
Marks & Spencer is Europe’s most
profitable retailer with a global brand and
global recognition. Its achievement
largely depends on the effective use of
people. An organisation may have the
latest technology and the best physical
resources, but it will never thrive if it does
not value its people. Its most valuable
asset will always be its people and the
work they do. For Marks & Spencer, this
means that the people who look after
customers, select and merchandise the
products and run the operations, must
aspire to be the best qualified and
equipped in retailing.
Marks & Spencer’s leading position in the highly competitive market-place depends on its
ability to stay one step ahead of other retailers, both in the products and services on offer
and how the business is organised to deliver them. As an organisation which recognises
the importance of innovation, Marks & Spencer tries to nurture flexible and imaginative
people. The Company needs people who are good at planning and organising, who can
set objectives, establish priorities and allocate proper amounts of time to activities.
This case study focuses on the challenging role of the Financial Manager behind the scenes
at every Marks & Spencer store. In doing so, it highlights many of the qualities, such as
leadership, adaptability and analytical consideration, required by Financial Managers
every day in a busy retail environment.
Working for a Retailer
Retailing is ‘the practice of selling goods in small quantities to the general public.’ It is a
business where employees come face-to-face with customers every day. Customers can be
very demanding – they enter a store and expect their needs to be met immediately,
irrespective of whether the lorries delivering bakery goods are stuck in snow or that a key
supplier is having production problems.
Many businesses in different types of environment are able to keep their customers at
arm’s length. If they need to do some training or catch up on paperwork, it is relatively
easy to make time. This is not the case in a Marks & Spencer store. It is just not possible to

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