Leading Innovation and Change in Marks and Spencer

LEADING
INNOVATION AND
CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company overview.................................................................................................................3
SWOT analysis.......................................................................................................................4
PESTEL analysis....................................................................................................................4
Innovation...............................................................................................................................5
Change....................................................................................................................................7
Leadership..............................................................................................................................9
RECOMMENDATIONS...............................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
Ensuring smooth implementation of change is one of the main concerns of business environment
in the current world. This is because innovation and changing external environment result in
changes in the organisation. Businesses focus on continuously innovating business process and
products in order to meet needs of consumers. Effective leadership plays an important role in
implementation of change and development of innovative. Innovation and changes in British
retail chain Marks and Spencer is the basis of this report. M&S is one of the leading members of
the British retail industry. The firm is located in more 29 international markets along with Hong
Kong. Suitable innovation, change management models and leadership styles are applied to
innovation and change in Marks and Spencer. The annual revenue earned by Marks and Spencer
in the year 2020 was equal to 10.2 billion GBP, with 67.2 GBP million group profits before tax.
The company captured 22.5% of UK clothing and home sales online (OUR YEAR IN REVIEW
2020, 2021). The present report analyses changes and innovation at M&S with suitable change
management models. In addition to this relevant innovation models are described and applied to
innovation at Marks and Spencer. In addition to this suitable leadership styles are applied to
M&S. This report aims to evaluate the effectiveness of innovation model, change management
model and leadership style applied to M&S for handling change and effective leadership.
MAIN BODY
Company overview
M&S is headquartered in headquartered in London, United Kingdom. The company was founded
in the year 1884 and offer wide range of own label food, homeware and fashion products along
with banking services. The company has been leading voice of change and innovation in British
retail sector. The firm was the first retailer in UK to create food technology department in 1940's
and introduce fresh chicken by developing cold chain process with their suppliers in the 1960's (
M&S FOOD TO SUPERCHARGE DISRUPTIVE INNOVATION WITH THE LAUNCH OF
DEDICATED NEW TEAM, 2020).
Sale of own label gluten free pastry line is an innovation in the product portfolio of M&S
introduced in the year 2018. In addition to this the company is aiming to integrate more flexible
management structures into its store operations. This change will provide clearer leadership
accountability and free their retail teams to focus on the consumers (M&S ANNOUNCES

PROPOSALS TO ACCELERATE THE TRANSFORMATION OF ITS RETAIL MANAGEMENT
STRUCTURE)
SWOT analysis
Strength Weaknesses
 M&S offers wide variety of products along
with own label brands.
 M&S has a strong digital presence with
accessible e-commerce portal (Lavorata and
Sparks, 2018).
 M&S regularly recalls products reduce
consumer loyalty and trust.
 M&S is highly dependent on UK retail
market to generate profits.
Opportunities Threats
 M&S has the opportunity to expand to new
regions with the help of digital technology
and e-commerce.
 M&S has the opportunity to gain new
income sources by expanding banking
services provided by M&S Bank.
 Intense competition in retail segment
from online and offline firms.
 Shift of young consumers from fast
fashion due to sustainability (Krause,
2018).
PESTEL analysis
Political factors: The implementation of fair trading policy by the British firm affects M&S as
the company sources their own label products from more than 70 nations.
Positive effect: This policy allows M&S to ensure ethical and sustainable sourcing.
Negative effects: Fair trade tariffs increase the cost of M&S.
Economical factor: Depreciation of British currency affects M&S as it is dependent on UK
market for income.
Positive effect: The firm gains the opportunity to expand their International presence due to slow
down in the UK market.
Negative effect: Decreasing sales of the company due to weak economic conditions of UK.
Social factors: Increasing health concern among consumers affects sale of food item by M&S.
Positive effect: M&S has the opportunity to introduce healthy variants of fast food items such as
gluten free food to attract consumers.