SWOT Analysis and Climate of Innovation in Marks & Spenser

This report applies SWOT analysis to Marks & Spenser, analyzing internal and external drivers for innovation. It also explores conceptual models of the climate of innovation and presents case studies of innovation for social benefit. The report concludes that innovation is crucial for the success and growth of Marks & Spenser.

INDIVIDUAL
REPORT

EXECUTIVE SUMMARY
The present report applies SWOT analysis which includes both internal and external factors that
can affect the organization. For the climates of innovation three factors have been taken into
consideration that is Organisational Structure, Team Members and Leadership Style. Out of
which organizational structure has been recommended. Further two cases has been taken to know
about the innovation and its climate based on clothing and technology for social benefit.

Table of Contents
EXECUTIVE SUMMARY......................................................................................................................... 2
INTRODUCTION ................................................................................................................................... 4
TASK ..................................................................................................................................................... 4
External and Internal Drivers for innovation to deliver social value:................................................4
Conceptual models of climate of innovation: .................................................................................... 5
Case Studies who brought innovation for social benefit: .................................................................7
CONCLUSION ....................................................................................................................................... 8
REFERENCES........................................................................................................................................ 9

INTRODUCTION
Innovation refers to a change making process either in a product or in service of any
nature. It gives a new touch to the product and service and brings into market. Without the
presence of creativity and proper strategy innovation could not be imagined. For any company to
be successful and to survive for long term in the market they need to bring innovation in their
offerings because market demands something new in the product or service. Marks & Spenser is
a leading retail brand in UK which offers various foods varieties, clothing and home ware to the
market. Marks & Spenser continuously brings innovation in its offering for its customers
worldwide. In this report we are applying SWOT analysis in relation to the company including
its internal and external drivers which delivers some social value. Various conceptual models are
also being used to analyse the climate of innovation in the organization. (Aguilar, 2018)
TASK
External and Internal Drivers for innovation to deliver social value:
According to Teoli Dac, and et. all.,SWOT refers to a business strategic analysis used by
companies in respect of Strength, Weaknesses, Opportunities and Threats to compare with its
competitors. The authors quoted that SWOT analysis is a composition of both external and
internal factors, out of which Strength and weaknesses are part of internal and opportunities and
Threats are the part of external factors. This analysis is used for the facilitation of the formation
of company's assessment. SWOT Analysis, 2020 [Online] Available through;
<https://www.ncbi.nlm.nih.gov/books/NBK537302/>.
External and internal factors are those which creates an positive or negative impact on the
innovation and helps the organization to earn profits.
SWOT analysis is done for the same for Marks & Spenser which comprises of internal factors
such as Strength and Weaknesses. External factor includes opportunities and threats to the
organisation. (Yoo, and Kim, 2017)
Each of the factor is discussed below in detail:
 Strength: Strength includes the positive points which the firm posses. Its strong areas,
advantages and competencies are analysed in this category. Marks & Spenser brings wide
variety for its customers in its each outlet. The company offers very strong products with

the latest updated trends prevailing in the industry to the market and enjoys a good
position. This is an internal part to the organisation. (Asim, and Sorooshian, 2019)
 Weaknesses: This refers to the less efficient areas of the organization on which it have to
work upon. It includes the area in which the company is lacking behind and is required
for improvement. Companies internally works upon it and its internal management helps
the organisation to overcome all the identified weak areas. Marks & Spenser still uses
manual work in the production which acts as its weakness and operations although offers
a wide range of varieties to customers. Company is investing less in the technological
enhancement which needs to be improved in order to expand its business or operate in
international market. (Bagno, and et.all., 2017)
 Opportunities: Opportunities are related to the external factors which affects the
organization from the boundaries outside the company. This gives a chance to the
company to gain competitive advantage over its rivals and earn super profits from
market. Marks & Spenser carries an opportunity to have differentiated pricing strategy in
the new marks by adopting new technologies. It also has an opportunity to reframe its
clothing section by simplifying the operational model in the company. (Benhabib, Perla,
and Tonetti, 2017)
 Threats: Threats refers to the negative effect on the organisation which hampers the
internal management from outside factors. It is very important for any company to find
out the threats and to resolve as soon as possible because if delayed it can harm a lot.
Threat is an external force that which impacts the organisation. Marks & Spenser faces a
tough competition in market as having big established rivalries in the existing market.
The effect of Brexit has also affected the company in terms of decrease in sales.
(Caputond, et.all., 2020)
Conceptual models of climate of innovation:
Innovation is considered to be an important factor for ensuring the continuous survival
and growth of an organisation in the competitive environment. For implementation of the climate
of innovation across the company, there is an conceptual model designed for enhancing the the
scope of creativity in the working environment. The conceptual model can be defined as a model
comprising of three factors namely; organisation structure, team and leadership. These three
factors perceive innovation in order to sustain the competitive advantage of company. These

factors are interdependent and interrelated in the complex working environment. Furthermore, it
is the responsibility of the manager to make use of these factor effectively to enhance the growth
prospects of the company in the external environment. The results of these factors can be
described in two constructs; business performance and innovation diffusion outcomes. (Huesig,
and Endres, 2019)
Climate for Innovation
Organisational Structure: The organisational structure emphasizes on the diffusion of
innovation in the working environment of the company. In relation to this marks and Spencer
follows the flat organisational structure which comprises of limited levels of management. These
structure motivates the employees to participate in the decision making process. Also, the
structure enhances the socialisation process and stimulates creativity among the employees. The
behaviour of employees of M&S are supportive in nature and this motivates the innovation
climate in the working environment of the company. Organizations & Behaviour -HND Business
Management 2014/2015, [Online] Available through
<https://laetitiastuder.wordpress.com/2014/10/24/organisational-structure-corporate-culture/>.
Team Members: The other factor of the model is the team members of the company. The
team is a combination of the knowledge of the effective members towards diffusing the
innovation in the operations of the company. Considering this, the team members foster the
innovation and creativity which outlines the support system for the attainment of the mission and
vision objectives of the company. Support of innovation is the implementation of diversified
ideas for introducing innovation in the range of products of M&S. A company having innovative
team climate will predicts the future innovative outcomes for the company. (Mostaghel, 2016)
Leadership for Innovation: Lastly, the model considers the leadership for innovation as
the factor which determines creativity and innovation in the organisation. Marks and Spencer
adopts the transactional leadership style. This style ensures that the team members of the
company are committed towards the attainment of high performance for the company. The
leadership style is considered to be an influential factor that affects the management of the
company. For this, the company must recruit change oriented leaders in order to adapt the
enhance the potential innovation in the working environment. Organizations & Behaviour –
HND Business Management, 2014/2015, [Online] Available through,
<https://laetitiastuder.wordpress.com/2014/11/27/leadership-management/>.

Marks and Spencer adopts the organisational structure as their base for ensuring climate
for innovation. The structure followed by the company provides numerous opportunities to their
employees to think in an creative manner for the development of the operations. This will
enhance their scope of thinking and the employees will work towards the diffusion of the
innovation. In the meanwhile, M&S have developed a PLAN A in 2007 and 2020 which
promotes the sustainable development and innovation in the industry. For this the innovation
have acted as the main pillar for the implementation of the plan. In the meanwhile the company
have introduced the new series of products for young people which have enhanced their level of
customer engagement. M&S supports the team members and leaders who are emphasizing on the
development of their own innovative ideas for the success of the company. (Saguy, 2016) M&S
IS A LEADING RETAILER with A STRONG AND UNIQUE HERITAGE OF BRAND VALUES,
EXTRAORDINARY COLLEAGUES AND CUSTOMERS WHO WANT TO SEE IT SUCCEED
AGAIN, 2019 [Online] Available through
<https://corporate.marksandspencer.com/documents/msar-2019/strategic-report.pdf>.
Case Studies who brought innovation for social benefit:
Case I:- The Autograph weekend and Strom-wear:
Marks and Spenser has launched an extension program of Autograph with the name
“Autograph Weekend” especially for women's. It brings vast variety of clothing for them
offering variety of choices and trendy clothes. This innovation offers smart casual wear for its
women customers and also to youngsters who are getting attraction from it. This has increased its
sales by approx 26.1 percent in the UK market.
For men's Wear Marks and Spenser has came up with Strom-wear who offers water
repellent and stain repellent brands for them. The company has also came up with special edition
designed for military people made up of breathable fabric. To make flees garments Marks and
Spenser used plastic bottle instead of oil which saves the environment in context of recycling the
unused plastic bottles creates a social value. Approx 4.5 plastic bottles were converted into
polyester to make the fabric by the company to show in its retail store and also used for uniform
trial.
To keep a track record and improve efficiency of the inventories in its retail stores Marks
and Spenser has used a radio frequency identification tool commonly known as RFID. The

adoption of this tool has reduced the wastage of time in operations and has increased the
company's sales.
Company has used flat organizational structure in the organization which leads to free
flow of communication within it. There is no need to report to any team or any higher authority
for any kind of information. In Marks and Spenser all are free to communicate to anyone which
saves the communication process time and helps in faster decision making. (Salajan, 2018)
Case II:- Collaboration with True:
Marks and Spenser have collaborated with True technologies in order to bring innovation
in technology and its enhancement. They both have came up with some technological solution
and innovation which will benefit M&S to look for more than 2000 enterprise and consumer
product business. The technology provides a pre-emptive access over its operations. The firm
after collaboration will be enabled by digital models and live networks which will keep track on
its 2000 enterprises. The technology will transform the way of operation and the running of the
business to become first digital retailer company in the area. Other then True collaboration the
company has also came up with Optitex in order to use first inside product testing solution with
3D computer aided design software. The software will help Marks and Spenser to create
sustainable sampling process and helps in digital workflow. This technological innovation will
motivate the employees to work with more efficiency and need not to visit the immediate
manager for everything. This innovation will provide information to all the employees in the
organisation. (Tajeddini, 2016)
Questionnaire:
We have taken sample of 20 people and were asked five questions from each. The questionnaire
along with their frequencies are below:
Questionnaire
Q1 Do you know about Innovation?
a) Yes b) No
Q2 What factors do you feel to be considered under the umbrella of climate of innovation?
a) Organizational Structure b) Team Members c) Leadership Style
Q3 Does innovation done by Marks and Spenser in clothing segment is beneficial for the

society and organization?
a) Yes b) No
Q4 Is there a need to keep track on all 2000 stores of Marks and Spenser for smooth
functioning?
a) Yes b) No
Q5 Do you think innovation will help Marks and Spenser to grow?
a) Yes b) No
QUESTIONS FREQUENCY
Q1 Do you know about Innovation?
a) Yes 15
b) No 5
Q2 What factors do you feel to be considered under the umbrella of
climate of innovation?
a) Organizational Structure 13
b) Team Members 5
c) Leadership Style 2
Q3 Does innovation done by Marks and Spenser in clothing segment is
beneficial for the society and organization?
a) Yes 14
b) No 6
Q4 Is there a need to keep track on all 2000 stores of Marks and Spenser
for smooth functioning?
a) Yes 17
b) No 3
Q5 Do you think innovation will help Marks and Spenser to grow?

a) Yes 18
b) No 2
CONCLUSION
From the above report it has been concluded that Marks and Spenser keeps doing
innovation continuously in order to bring efficiency, increase sales and cater more customers.
The company also cares for the society and hence creates some social values in its innovation.
Marks and Spenser uses three factors which affects the climate of innovation in the organization
out of which organizational structure is being followed and innovation are done by keeping this
in mind. Innovation is a key to success and company has understood this in better manner and
keeps on offering something new to the customers.

REFERENCES
Books and Journals
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Asim, Z. and Sorooshian, S., 2019. Exploring the Role of Knowledge, Innovation and
Technology Management (KNIT) Capabilities that Influence Research and
Development. Journal of Open Innovation: Technology, Market, and Complexity. 5(2).
p.21.
Bagno, and et.all., 2017. Models with graphical representation for innovation management: a
literature review. R&D Management. 47(4). pp.637-653.
Benhabib, J., Perla, J. and Tonetti, C., 2017. Reconciling models of diffusion and innovation: A
theory of the productivity distribution and technology frontier (No. w23095). National
Bureau of Economic Research.
Caputo, F., and et.all., 2020. Over the mask of innovation management in the world of big data.
Journal of Business Research. 119. pp.330-338.
Huesig, S. and Endres, H., 2019. Exploring the digital innovation process. European Journal of
Innovation Management.
Mostaghel, R., 2016. Innovation and technology for the elderly: Systematic literature review.
Journal of Business Research. 69(11). pp.4896-4900.
Saguy, I.S., 2016. Challenges and opportunities in food engineering: Modeling, virtualization,
open innovation and social responsibility. Journal of food engineering. 176. pp.2-8.
Salajan, F.D., 2018. An analysis of rhetorical devices in policy narratives on the European
Institute of Innovation and Technology: Implications for European higher education.
European Educational Research Journal. 17(4). pp.555-583.
Tajeddini, K., 2016. Financial orientation, product innovation and firm performance—An
empirical study in the Japanese SMEs. International Journal of Innovation and
Technology Management. 13(03). p.1640005.
Yoo, K.S. and Kim, Y.D., 2017. A Study on the Effects of Entrepreneurship and Innovation
Activities of Venture Enterprises on the Increase Firms' Revenue. Journal of the Korea
Convergence Society. 8(12). pp.329-341.