Importance of Change Management in Strategic Management Process

This report discusses the critical assessment of the strategic management process, models, and tools used by Marks and Spencer. It explores the application of critical analysis tools such as PESTLE and SWOT analysis. Additionally, it highlights the importance of change management in achieving organizational goals.

Individual Report

Table of Contents
INTRODUCTION (150).................................................................................................................1
TASK...............................................................................................................................................1
Strategic management..................................................................................................................1
Critical assessment of process used by M&S to determine their strategy...................................1
Evaluation of critical models and tools used by organization to determine their strategy..........2
Application of critical analysis tools to Marks and Spencer's.....................................................4
Critically appraise the importance of change management on the basis of complexity of
information process, cost/price, risk and sustainability...............................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION (150)
Strategic management is the management of an organization resources to achieve its goal
and objectives. This process has involvement of setting objectives, analysing the competitive
environment, analysing the internal organization, evaluating different strategies and ensuring
management to rollout strategies across the organizations. Marks and Spencer are major British
multinational fashion retailer headquarter in London specialise in selling clothing, home products
and food products, mostly of its own label. In this report, there will be discussion on the critical
assessments of strategic management process, model, application of tools and importance of
change management.
TASK
Strategic management
A strategic manager of M&S is overseeing strategic management plan and devise out ways
for organization to meet up the bench marks goals. Strategic management extends to internal
and external communication practices as well as tracking to ensure that company meet goals as
defined as its strategic management plans. Hence strategic thinking has ability to identify the
need of the organization to achieve its respective goals identified through strategic planning
Changes in the business environments will be require organization to have constant assess
of different strategies for success. A successful process helps out organization and leadership to
have thought in term of planning for future existence fulfilling chief responsibility of board of
directors. Effective strategic management tends to take continuous planning, monitoring an
testing organization activities resulted in increased operational efficiency, market share and
profitability.
Critical assessment of process used by M&S to determine their strategy
Different manager and leader of the organization tends to develop numerous frameworks to
guide the strategic management process. The perspective approach to strategic management
outlining different strategies to be developed accounting threat and opportunities. On the
other hand, descriptive strategic management tends to put all strategic management employ
to management theory and practices.
In general, the process typically includes four phases
Analysis
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Before planning new strategic process, manager of M&S has need to evaluate current position
and futuristic goal and objective of company. This is all important question in relation to
firm stakeholders that will help in developing strategic plan. Manager can use SWOT
analysis for identification of strength, weakness, opportunities and threat.
Formation
After getting information from the SWOT analysis, it is time to create an action plan for reaching
goals. Manager have to make sure step are clear focus, clear and directly related to gaols.
Manger will prepare easy understand implementation guidelines of the process and
procedure impacting people within organization.
Execution
The employer has to formulate and outing the strategic plan to make sure that all stakeholders
are implementing the plans designed for maximum efficiency. Strategy stemming from
consistency in behaviour, whether or not intended and which can be independent of a plan.
Evaluation
There is need to evaluate the final products as been successful in the process an appropriately
achieved by company worldwide. Hence, this will be helping out to gains competitive
advantage over competitors because its proactive nature means will always be aware of the
changing market. It is evaluating the degree action plans and making changes when desired
results are not being produced
Evaluation of critical models and tools used by organization to determine their strategy
In the context of strategy identification it can be said that Marks and Spencer’s make use
of several effective tools because they believe that strategy is one of the main key of their
business success. Business environment is sum up of internal and external business environment
which consists of several factors. All these factors can have critical impacts on the performance
of company so, it is important for them to make use of effective strategy for reducing negative
impacts and increasing positive impacts (Lim and et.al., 2017). There are mainly 2 critical tools
which can be used by Marks and Spencers for determining their internal and external strategies.
PESTLE analysis tool: It is one of the effective critical analysis tool which helps companies in
identifying all external environmental factors which can have both positive and negative impacts
on its performance. This tool can help Marks and Spencer’s in identifying political factors like
political stability and instability of the country in which it operates, economical condition, social
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factors like current market needs, usage of advanced technology, environmental laws and others.
An effective strategy can help them out in accomplishing their goals and increasing customers'
satisfaction.
All these factors cannot be controlled by Marks and Spencer’s but by analysing all these
factors it can reduce negative impacts and can select appropriate strategy accordingly (Perera,
2017). It can be possible by PESTLE analysis tool only. It can make plan to take advantages of
opportunities and also reducing negative impacts of threats.
SWOT analysis tool: It is another effective tool which help companies in identifying internal
business environmental factors like own strengths, weaknesses, opportunities and threats.
Strengths of this model can make able to company to take advantages of external opportunities
and also develop effective strategies. Whereas, weaknesses are those which can create barriers
for company in accomplishing goals but by developing strategies it can reduce all of its
weaknesses. In addition, opportunities and threats are directly proportional to strengths and
weaknesses and strengths can help them out in taking opportunities and weaknesses can increase
barriers or threats.
So, it can be said that by identifying all these factors before making an effective plan,
they can develop effective strategies. It also allows employees to improve their strategic
thinking, innovation and creativity. But one of the main limitation of this tool is with this critical
analysis tool, company cannot prioritize threats and issues. It is also stated in this regard to
model that companies who want to succeed, they often recognize their limitations but focus on
their strengths (Phadermrod, Crowder and Wills, 2019). By identifying weakness they develop
and improve themselves and take advantages of competition.
So, overall it can be said that by making use of both PESTLE and SWOT analysis tools
play an important role and by making use of these tools Marks and Spencer can better elucidate
their short term as well as long term schemes.
Pestle and swot analysis are commonly used framework or tool that help for marketers to
analyse current position of business in global marketplace. Sometimes, it help for enterprise to
applicable change procedure while establishing a strong position of business in competitive
marketplace. In this way, it can be analysed the Pestle or Swot analysis tool to examine the
certain aspect of enterprise in term of growth and development. In above, it has been described
about the overview M&S where how uses innovative idea in future to eliminate threat, weakness
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of business. Overall analysis depend upon the analytical tool which providing brief idea about
the organization in order to resolve the business issue or problem in proper manner.
Application of critical analysis tools to Marks and Spencer's
PESTEL Analysis of M&S
Political factor
Political factors such as Brexit memorandum affect badly to the M&S , they were brining
their raw material from the European countries. It was less costly as compare to the raw material
from the other countries.
Economic factor
Price is always a challenging economic factor for the Mark's & spacer company. In the
retail industry of UK, last few decades has been seen the many budget retailers business pop up
and they are selling product less than the product prices (LIU, and LI., 2017). It creates force on
the M&S to reduce their product prices.
Social
M&S is known for their quality cloths and Food products but trend and taste within the
society change frequently and it is necessary for the M&S to follow the new trend and bring the
new trendy product in their stores. It will help them to add some value for their customers, and as
a result, company satisfy their needs and demand.
Technology
Technology trends in the retail industry is providing profitability and growth to M&S
and one of the trending technology called “self check- out” is helping this company to take
competitive advantages and satisfy their guest. Customers can self checkout so company can
save money as quoted firm do not need to pay salary to cashier.
Environmental
Environmental factors can help M&S to take competitive advantage as well, and they can
create huge reputation in the market. M&S run some charity programs for the Poor and
otherwise they can motivate their customers and employees top plant tress. This will helps them
to create huge reputation in the market along with preventing environment.
Legal
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M&S is operating their business on the international level and Every country ha their
ow n lows and tax structure. Changes in the tax structure has creates huge impact on the
companies profitability, but M&S develop strategy in order to minimize the same.
SWOT Analysis of Mark's & Spencer's
Strength
M&S company has good market reputation because of their great quality in products, and tit
is one of the leading retail firm in whole UK (Damasceno and Abreu, 2018).
Marks and Spencer has stores and online presence in number of countries across Europe, the
Middle East and Asia. It has 1,463 stores worldwide out of which 1035 in the UK and the
rest abroad.
Weakness
 Most of the people in UK think that M&S is not much cheaper for the young age people
or teenagers. It is not affordable for everyone to buy a products from M&S.
 Need improvement on their online website and customers services.
Opportunities
 Online market is rapidly growing and creating opportunities for the retail stores to sail
their product online. M&S can take the advantages by investing online market and
grow their business.
Threat
 Competition is the retiral industry is increasing day by day and M&S is also facing huge
Competition in the UK market. They are not only getting Competition from the big
brand but some discount stores also creating threat for them.
So, it can be said that applying all these tools, Marks and Spencer's can accomplish its goals and
can retain its customers with it for the long run.
Critically appraise the importance of change management on the basis of complexity of
information process, cost/price, risk and sustainability
An effective organizational change management allows for M&S to maintain a constant state of
evolution, facilitate periods of general business change. It help for worker to remain motivated
and productive during implementation of innovative technologies or procedures.
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As with change management, a successful organization change management strategy that
will require for effective communication between managers and employers (Lozano, Carpenter
and Sammalisto, 2020). However, it is important for M&S to relief stress that must happen
across different level of organization. When M&S can use change management process by
nature, intended to provide the better structural change so attention must be paid to each
constituent part.
In M&S, process of change management should start with planning, training. It would
encounter involve new modern technologies and other ICT system. This will help for
establishing the better communication with existing consumers. If M&S wishes to remain
maintain the business process that need to perform best practices, ensure that staff members are
continually trained in particular technologies (Merzlikina and Kozhanova, 2020). They will be
used in order to increase performance of organization in global marketplace. Change
management is consider as important aspect for managing the entire business processes in
context of information process, price, sustainability and risk.
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Importance of change management
External factor: It plays an important role in M&S business change management process.
Globalization and other rapid development new digital technology that are providing the
opportunities for enterprise to increase the entire performance. Sometimes, it is to be considered
as digital solution which forcing enterprise to respond. Change process will help for considering
the external factor to achieve organization’s success. M&S is a leading retailer that will
implement new technology to attract more and more consumers towards product as well as
services. This is because M&S keep up with change in goods and services. As a result, it will be
established the strong position in global marketplace. This can possible due to innovative change
management processes.
Engaging people with change process: It is another important part of managing change in
M&S to engage with individual’s affected by change initiative. In M&S, staff members will be
involved in the process of change eventually, therefore, it will engage with potential client and
establish communication through different media channels (Alikhani, Torabi and Altay, 2019).
Change management process will help for M&S to identify interest, demand of client towards
products and services. In order to change the process according to client and resolve their queries
in proper manner.
Making innovative idea for business success: Change management process will enable to get
innovative idea about the service delivery. In M&S, employees are working along with manager
who have provided the new capabilities into organization. Change manager and agent helps for
ensuring staff members to fully utilise new capabilities or abilities.
Reducing price/cost: M&S has applied the positive change in the business procedures
which help for reducing waste, therefore reducing price or cost (Merzlikina and Kozhanova,
2020). An effective change management is very important for M&S to make smart choice, will
be increasing the productivity, decrease risk and help to improve the profitability of M&S.
Reducing the resistance to change management: The resistance is becoming inevitable if any
type of change occurred in M&S. this is because when people often find out the new innovative
things from M&S. In this way, it has been changed the need or requirement of existing client so
that change manager often expect a denial reaction from employees.
In additional, from a process perspective, change management is one of important process that
mainly used by different employees within organization. It initiative towards business strategy
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and plans focused on the individual through change. In M&S, Change management can be
divided into different ways: preparing for change, managing change and reinforcing change.
These are applicable in the business process to handle entire operational, managerial tasks
effectively (Merzlikina and Kozhanova, 2020). Mostly, Manager of M&S is being a leader to
lead people through change process. It became easier to fall into trap thinking about the change
management within business.
From perspective of sustainable, change management will develop the methodology of
sustainability for enterprise activity in context of growth and development. At that time, M&S
should consider the growing influence of culture or environment on the economic activities. The
sustainability fundamentals are appropriate for business to change the design, structure, layout of
process. Sometimes, it will be creating strategies of sustainability for enhancing overall business
capabilities.
CONCLUSION
From the above study, it has concluded that strategic management plays important role in
organization. It help for performed the ongoing planning, monitoring, assessment and analysis of
all essential need of enterprise. In order to achieve the desirable goal and objective. In this report,
it has summarised about the critical models and tools used by organization to determine their
strategy such as pestle. Through this report, it has been considered the most suitable pestle
analysis framework or tool, which always help for enhancing overall business capabilities and
abilities. By using Pestle analysis, it has been discussed about the different factors that help for
identifying political, economic, social technological, environmental and legal. Furthermore, this
report has been discussed about the importance of change management in organization. It
supports for enhancing overall business performance in context of price, risk, sustainable and
information processing.
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REFERENCES
Books and Journals
Alikhani, R., Torabi, S.A. and Altay, N., 2019. Strategic supplier selection under sustainability
and risk criteria. International Journal of Production Economics. 208. pp.69-82.
Damasceno, V. S. and Abreu, Y. V. D., 2018. Avaliação da energia eólica no Brasil utilizando a
análise SWOT e PESTEL. Interações (Campo Grande).19(3). pp.503-514.
Lim, S.A.H. and et.al., 2017. Critical observations on the statistical process control
implementation in the UK food industry. International Journal of Quality & Reliability
Management.
LIU, X. T. and LI, J. H., 2017. SWOT and PESTEL Analysis on the Coordinated Development
of New Urbanization and Agricultural Modernization in Heilongjiang Reclamation Area.
DEStech Transactions on Economics, Business and Management, (eced).
Lozano, R., Carpenter, A. and Sammalisto, K., 2020. Analysing Organisational Change
Management in Seaports: Stakeholder Perception, Communication, Drivers for, and
Barriers to Sustainability at the Port of Gävle. In European Port Cities in Transition (pp.
205-224). Springer, Cham.
Merzlikina, G.S. and Kozhanova, T.E., 2020. Strategic Change in the Enterprise: Foresight and
Management. E&ES. 459(6). p.062059.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
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