This research aims to identify the needs of innovation in organizations, using Marks and Spencer as a case study. It evaluates different innovations, micro and macro environmental considerations, and technologies for sustaining innovation.
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Running head: INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Name of the student Name of the university Author note
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1INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Executive summary The concerned research aimed at identifying the needs of innovation in an organization while evaluating the case of Marks and Spenser (M&S). The research enumerated the different innovations that are initiatedby the organization and the manner in which it supported the venture in achieving a competitive edge. On the contrary, the research also aimed at evaluating the current micro and macro environmental considerations in order to maintain the effectiveness of the innovative potentialsof the organization. Lastly, the research enumerated the different technologies that might be implemented by the organization in order to facilitate sustenance of the venture in the competitive markets.
2INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Table of Contents 1. Company background..................................................................................................................3 2. Strategic management and processes associated with company’s innovations...........................3 2.1 The innovations that are initiated by the business................................................................3 2.2 Strategic management processes for the innovation..............................................................5 2.3 Outcome of the innovations...................................................................................................6 3. Identification of internal and external environments of the organization....................................7 3.1 Micro environmental analysis (SWOT).................................................................................7 3.2 Macro environmental analysis (PEST analysis)....................................................................8 3.3 Assessment of the micro and the macro factors..................................................................10 4. Contribution of the management system to the success of identified innovations....................11 5. Two potential future innovations...............................................................................................12 6. Conclusion.................................................................................................................................13 References......................................................................................................................................14
3INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS 1. Company background Marks & Spencer Group plcis a British multinational retailing organization, which is headquartered inWestminster, London. Michael Marks and Thomas Spencer established the concerned venture in the year 1884 (Marksandspencer.com., 2019). The growth of the business was based on the uniqueness of the propositions relating to apparels, home products and luxurious food products. The diverse range of products that were offered by the organization supported the sane in achieving a competitive edge over the other players in the market. The concernedventurecurrentlyholdsaround979storesacrossUK,whichspecifiesthe unprecedented growth of the venture in the respective markets (Marksandspencer.com., 2019). Therevenueoftheorganizationwas£10,698.2millionandtheoperatingincomewas £29.1million by the end of the fiscal year 2018 (Marksandspencer.com., 2019). It supported in understanding the continuous growth process that is facilitated by the organization through continuous innovation. 2. Strategic management and processes associated with company’s innovations 2.1 The innovations that are initiated by the business The innovations that were facilitated by the concerned venture supported the venture in continuingtheeffectivenessoftheoperationswhileadheringtotherequirementofthe customers. The major innovations that were initiatedby the business werecustomer mapping through IT systems,development ofnew recipesandutilization of digital media for promotions (Marksandspencer.com., 2019). The concerned venture aimed at developing the innovations in
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4INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS the business processes in order to enhance the service and product propositions of the business while adhering to the market trends and demands. Hvass(2015) noted that frequent innovations in the operations and the product or services offered by a venture assists the venture in continuing the effectiveness of the operations in adherence to the needs of the customers. Customer mapping through the utilization of the suitableIT systemshassupported theorganizationin identifyingthe preferencesof the customers while moving around stores and discovering small tweaks. Customer mapping is one of the major elements through which the demand of the customers might be assessed by organizations in order to maintain the effectiveness of the propositions (Pantano, 2014). On the contrary, the concerned venture also took innovative measures for bringing forth modifications in the recipes that are delivered by the venture. The innovativeness of the organization provided the venture with attracting the attention of large amount of customers towards the customizablerecipe options.Kim and Min (2015) statedthat the frequent innovations in the propositions help an organization in retaining the loyal customers through adherence to the changing tastes and preferences of the venture. The different innovative customizable options that are facilitated by M&S have supported the venture in retaining the trust and loyalty of the target customers towards the propositions (Marksandspencer.com., 2019). M&S utilized different digital media and social media platforms in order to communicate with the target audience and make the venture aware of the subtle modifications that are being initiatedby the business (Marksandspencer.com., 2019). It has supported the business in enhancing the PR operations of the venture. Pantano et al. (2017) noted that communication with the customers through different social and digital media platforms assists an organization in
5INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS developing and modifying the range of product or service offerings through delineation of the preferences of the customers. 2.2 Strategic management processes for the innovation The major aspects of the strategic management processes that are initiatedby the organizational management are relianton the uninterrupted functioning of the systems, which helps in continuing the effectiveness of the innovativeness of the business (Tidd, 2014).The application of the strategic management framework on the existing processes of the M&S supportedincontinuingwiththesystematicoperations.Theframeworksupportedthe organization in identifying the present situation that is faced by the venture while doing business in the different markets. Cao(2014) stated that the assessment of the organizational situation helps abusiness in identifying the recent trends that are shaping the operations of the retail industry. In this relation, the M&S has taken steps to review the current situation of the market for the suitable understanding of the objectives and creation of the corporate strategy relating to innovation (Marksandspencer.com., 2019).
6INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Figure 1: Strategic Management Framework (Source: Kant Hvass, 2014) Tidd(2014) stated that the continuous innovativeness of an organization supports the goals of continuing the sustainability. On the contrary, the competitive strategies that are initiatedby the organization have supported the venture in achieving a competitive edge while operating in different economies.Kamasak,Yavuz and Altuntas(2016) stated that the competitive strategies of an organization helps the venture in developing the propositions in adherence to the demand of the customers. The delineation of the strategic decisions supported the organization in facilitating the uninterrupted implementation process in adherence to the needs of the business. Monitoring the processes and controlling the operations of innovation has supported the organizational management in upholding the effectiveness of the processes in adherence to the concerns of the business. 2.3 Outcome of the innovations The innovations that were initiatedby the concerned business supported the venture in retaining the base of loyal customers (Pantano et al., 2017). The innovations that were initiated by the concerned venture supported in remodeling the product and service offerings in adherence to the changing trends and preference patterns of the customers. The innovations that were considered by M&S supported in facilitating systematic functioning of the processes though identification of the demand of the customers and development of products in- line with the preferences. On the contrary, the utilization of thedigital channels has supported the business in continuing their proficiency while marketing the line of product offerings. Bigliani et al. (2015) stated that the innovativeness of the idea helps an organization in continuing the effectiveness of
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7INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS the operations in adherence to the preferences of the customers. In this context, the innovations that were initiatedby the concerned business supported the venture in upholding their competitive edge through retention of the loyal customer base. The frequent innovations that were initiatedby the business supported the venture in achieving the competitive edge over the other players in the market. 3. Identification of internal and external environments of the organization 3.1 Micro environmental analysis (SWOT) Strengths Diverse range of product and service offerings Brand value High focus on enhancing the customer experience Enhanced infrastructural growth in the e-commerce industry Weaknesses Heavily reliant on the UK markets Poorexpansionrateandfinancial condition Frequent product recallsaffected the confidenceofthecustomers (Carayannis,Sindakis&Walter, 2015) Higherlaborcostinsomeofthe markets which enhanced the operating expenses of the business Opportunities Planstoinvestonthedeveloping marketsinAsia(Carayannisetal., 2014) Threats Threat of new entrants Depreciation of value of Sterlings after Brexit (Evans et al., 2017)
8INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Dynamic online presence for attracting the attention of the customers Remodeling the clothing segment of the organizationandsimplifyingthe operational model Drastic changing trends of the apparel industry High competition in the UK markets Adapted from:(Marksandspencer.com., 2019) 3.2 Macro environmental analysis (PEST analysis) PoliticalThe free trade policies has supported theorganizationinsignificantly reducingthesourcingcostswhich supportedthebusinessincontinuing theeffectivenessoftheoperations under the supervision of professional personnel Brexithascreatedasituationof uncertainty for the organization related to trade-ins and trade-offs which might affect the potentialsof the concerned ventureincontinuingthesystematic functioning of the systems (Kim& Min, 2015). EconomicThe market volatility and fluctuations in the global economy might affect the
9INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS potentialsoftheorganizationin developing resources or facilitate the operationsthatareplannedbythe business. The growth of the small scale retailers andtheenhancementintheproduct priceasan adverse effectof Brexit which might result to the incapacitation of the concerned venture in continuing businesswiththeventurerateof profitability(Demirkan,Spohrer& Welser, 2016) SocialTheconcernedventureundertakes severalinitiativesrelatingtothe enhancementoftheCSRactivities throughenhancementofliving conditionsamongthedifferent communities. The social contributions that are made by the organization has supported the venture indeveloping a positivebrandimage(Anderson, Potočnik & Zhou, 2014) Productrecallshaveaffectedthe
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10INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS competitiveedgeofthebusiness throughnegativeinfluenceonthe consumers’ buyingbehavioral patterns (Kim & Min, 2015) TechnologicalThe concerned venture has taken steps to develop partnership with different IT basedorganizationslikeTCSwhich willsupporttheuninterrupted functioningofthebusinessthrough diversetechnologies(Ostendorf, Mouzas & Chakrabarti, 2014) The concerned venture developed Plan A 2025 with the aim of supporting the sustainableneedsthrough implementation of various technologies and policies for the common wellbeing of the stakeholders and the environment (Morgan, 2015) Adapted from:(Marksandspencer.com., 2019) 3.3 Assessment of the micro and the macro factors The assessment of the internal and external environments of an organization assists the venture in continuing their effectiveness while developing strategies (Hristov& Reynolds, 2015). The micro and macro environmental analysis of an organization delineates the different
11INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS issues and opportunities that are faced by the organization while operating in adherence to the objectives. In this context, the research will conduct a micro and macro environmental analysis of M&S and thereby evaluate the results for understanding the position and the modifications thatmightbeinducedinthestructurefortheuninterruptedfunctioningofthesystems (Schaltegger, Lüdeke-Freund & Hansen, 2016). Themicro environmental assessmentof the concerned venture portrayed that the major strength is comprised on the brand value and the diversity of product offerings of the business. The diverse range of products and the enhanced brand value has added a competitive edge of the business (Pantano et al., 2017). On the contrary, the development of the resource base on the assessment of the needs of the customers has supported in forging developments in the business model. However, it was also noted that the concerned venture heavily relied on the UK markets, which restricted their scope of expansion in the global economies. On the contrary, the changing trends in the apparel industry also affected the operations of the business. However, the opportunities faced by the organization to expand in the developing countries of Asia continent hold a greater opportunity for supporting the sustenance of the venture (Marksandspencer.com., 2019). Themacro assessmentof the concerned venture clearly exhibited the different issues that are faced by the venture due to the unclear outcomes of Brexit (Foss & Saebi, 2017). On the contrary, the changing taxation policies and free trade options has supported the organization in continuing the effectiveness of the operations in adherence to the needs of expansion (Ostendorf, Mouzas& Chakrabarti,2014). Moreover, partnership and collaboration with different tech giants has supported the organization in achieving a competitive edge over the other players through maintenance of global online presence (Kim & Min, 2015).
12INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS 4. Contribution of the management system to the success of identified innovations The management of the concerned venture undertook steps to encourage innovation in the workplace through facilitation ofinteractionswith the employees. Interactions with the employees have supported the organization in encouraging maximum participation of the employees to the different processes (Pantano,2014). Schaltegger, Lüdeke-Freund and Hansen (2016) stated that communication and consultation with the employees helps an organization in continuing the effectiveness of the operations through rational decision making. On the contrary, the concerned venture also maintaineddiversityin the recruitment process in order to facilitate knowledge from different streams in the workplace. It has supported the development of positive workplace culture and collaborative team functioning (Tidd, 2014). The major contribution of the management to the innovative procedure of the business is based on thetrainingthat is provided by the venture to the employees (Hvass,2015). Training to the employees has supported the business in implementing innovations more proficiently (Pantano et al., 2017). On the contrary,inter- trust factoramong the management and the employees resulted to change readiness. Foss and Saebi(2017) stated that the training to the employees assists an organization in building up an innovative culture in the venture. Innovative cultureandcollaborativefunctioningoftheworkforcewiththemanagementhelpsan organization in continuing the effectiveness of the operations in adherence to the needs of the business. Therefore, the different steps that are initiated by the organizational management have supported the venture in upholding the proficiency of the innovative measures.
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13INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS 5. Two potential future innovations The most recent innovations that might be initiatedby the concerned venture are reliant on the assessment of the needs and preferences of the customers. Hu(2014) noted that the adherence to the needs of the customers helps an organization in continuing the effectiveness of the position while operating in diverse international markets. The concerned venture might take steps to implement theNeiman-Marcus’ Memory Mirror, which will enable the shoppers to admire an apparel eight-second 360-degree video view (Gaur,Singh & Ramakrishnan,2017). On the contrary, the innovation will also help the shopper in comparing between two dresses, which will help in perfecting the buyer’s decision making.The mirror will be assisting the concerned venture in attracting the attention of the loyal group of customers towards their products. On the contrary, the innovation in the processes will also help the concerned business in achieving a competitive edge over the other players in the market. Cao(2014) stated while analyzing the results of a survey that more than 46% of the shoppers dislike trying on the apparel in the fitting room. However, Pantano et al., (2017) noted that the customers who are trying on cloths at a store is seven times more likely to make a buy. Tidd (2014) noted that adhering to the needs of a customer helps an organization in supporting the sustenance of the venture while operatingindiversemarkets.Therefore,theimplementationoftheinnovationinthe organizational model will support the uninterrupted functioning of the systems in adherence to the needs of the customers. The concerned venture might make user ofdronesfor supplying and distributing to the commodities to the end users or customers (Siegel, Welch& Barfield, 2016). Drones will be supporting the needs of the organization in making on-time deliveries to the customers, which will ensure the satisfaction of the venture. Hvass (2015) stated that customer satisfaction is one
14INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS of the crucial factors that correlates to the sustenance of the business while operating in diverse market environments. The different changes that are initiated by the organizations are reliant on the uninterrupted functioning of the systems in order to maintain the effectiveness of the operations.Therefore,theconcernedventuremighttakestepstoimplementdrone-based technologies for supplying the commodities to the end- customers and adhering to the changing trends in the retail industry. 6. Conclusion Therefore, from the above research it might be stated that the concerned venture Marks and Spenser (M&S) has initiateddifferent innovations in order to maintain the effectiveness of the operations in adherence to the changing needs of the customers. The innovations have supported the concerned venture in supporting the sustainability of the venture. The research enumerated a micro and macro assessment of the environment where the concerned venture operates. It has supported in understanding the current position of the business and the different challenges and opportunities that are faced by the venture.The research also enumerated two future innovations that might be implemented by the organization in order to facilitate the sustenance of the venture.
15INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS References Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework.Journal of management,40(5), 1297-1333. Bigliani, R., Feblowitz, J., Eastman, R., Gallotti, G., & Segalotto, J. F. (2015). Designing the new utility business models.White Paper IDC Energy Insights. Cao, L. (2014). Business model transformation in moving to a cross-channel retail strategy: A case study.International Journal of Electronic Commerce,18(4), 69-96. Carayannis, E. G., Grigoroudis, E., Sindakis, S., & Walter, C. (2014). Business model innovation asantecedentofsustainableenterpriseexcellenceandresilience.Journalofthe Knowledge Economy,5(3), 440-463. Carayannis, E. G., Sindakis, S., & Walter, C. (2015). Business model innovation as lever of organizational sustainability.The Journal of Technology Transfer,40(1), 85-104. Demirkan,H.,Spohrer,J.C.,&Welser,J.J.(2016).Digitalinnovationandstrategic transformation.IT Professional,18(6), 14-18. Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C. Y. (2017). Business model innovation for sustainability: Towards a unified perspective forcreationofsustainablebusinessmodels.BusinessStrategyandthe Environment,26(5), 597-608.
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16INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: how far have we come, and where should we go?.Journal of Management,43(1), 200-227. Gaur, L., Singh, G., & Ramakrishnan, R. (2017). Understanding Consumer Preferences using IoT SmartMirrors.Pertanika Journal of Science & Technology,25(3). Hristov, L., & Reynolds, J. (2015). Perceptionsand practicesof innovation in retailing: Challenges of definition and measurement.International Journal of Retail & Distribution Management,43(2), 126-147. Hu, B. (2014). Linking business models with technological innovation performance through organizational learning.European Management Journal,32(4), 587-595. Hvass, K. K. (2015). Business model innovation through second hand retailing: a fashion industry case.Journal of Corporate Citizenship, (57), 11-32. Kamasak, R., Yavuz, M., & Altuntas, G. (2016). Is the relationship between innovation performance and knowledge management contingent on environmental dynamism and learning capability? Evidence from a turbulent market.Business Research,9(2), 229-253. KantHvass,K.(2014).Post-retailresponsibilityofgarments–afashionindustry perspective.Journal of Fashion Marketing and Management,18(4), 413-430. Kim, S. K., & Min, S. (2015). Business model innovation performance: when does adding a new business model benefit an incumbent?.Strategic Entrepreneurship Journal,9(1), 34-57. Marksandspencer.com.(2019).WelcometoMarks&Spencer.Retrievedfrom https://www.marksandspencer.com/
17INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS Morgan, E. (2015). ‘Plan A’: Analysing business model innovation for sustainable consumption in mass-market clothes retailing.Journal of Corporate Citizenship, (57), 73-98. Ostendorf, J., Mouzas, S., & Chakrabarti, R. (2014). Innovation in business networks: The role of leveraging resources.Industrial Marketing Management,43(3), 504-511. Pantano, E. (2014). Innovation drivers in retail industry.International Journal of Information Management,34(3), 344-350. Pantano, E., Priporas, C. V., Sorace, S., & Iazzolino, G. (2017). Does innovation-orientation lead to retail industry growth? Empirical evidence from patent analysis.Journal of Retailing and Consumer Services,34, 88-94. Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business models for sustainability: Aco-evolutionaryanalysisofsustainableentrepreneurship,innovation,and transformation.Organization & Environment,29(3), 264-289. Siegel, R. S., Welch, S. C., & Barfield, J. R. (2016).U.S. Patent No. 9,494,937. Washington, DC: U.S. Patent and Trademark Office. Tidd,J.(2014).Conjointinnovation:Buildingabridgebetweeninnovationand entrepreneurship.International Journal of Innovation Management,18(01), 1450001.
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