Managing Innovation: Importance and Impact on Marks and Spencer

This report explores the importance of managing innovation in the context of Marks and Spencer, a leading retailer. It discusses the company's innovation history, its capabilities and performance, and the overall industry trends. The report also highlights the factors that facilitate innovation and recommends the use of Emotient technology for customer sentiment analysis.

MANAGING
INNOVATION

Executive Summary
Present report include innovation aspect along with their importance in order to bring
something new and advanced in respect to industrial sector by an organisation in order to extend
and ensure their growth. In order to conduct test report Marks and Spencer is being duly taken
that engage in the services of offering products like clothing, home product, accessories and
food. Most important motive of this entity is to provide consumer satisfaction to maximum level
by offering them attractive and high quality products according to their actual demand and need.
Further it has been identified that present report is characterized into three different parts in
which first segment involved innovation history of respective organisation that state that this
organisation undertake use of innovation over past years in a significant manner. Along with this
pestle evaluation is being undertaken to evaluate the factors that facilitate innovation in effective
manner. Second segment of this report include company overall existing performance in addition
to their capability that act as enforcing element to bring innovation. It states that entity is having
full capacity to take proper as well as effective use of innovative techniques as well along with
current prevailing trends in retail industrial segment. At last this project also includes overview
of retail industry to gain formative insight into scope for companies as well as growth of industry
to engage them in innovation.
It is being evaluated that M&S continuously take on themselves in innovation practices in
which they build up and devise the product and services accordingly to needs and demand of
consumer. It has been identified that and it has duly formulated a 5 year transformation
programme with a motive to maximize overall sales and profitability of company.
Company is being recommended to effective take utilization of Emotient in order to acquire
awareness of customer sentiments in terms with services and products that get company delivers
to their customers.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
Innovation History..................................................................................................................1
Company active Capabilities and innovation performance....................................................3
The Industry............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A process within which new product is formed by taking assistance of unique technology or
other value addition elements with an aim to maximize quality or feature of existing goods as to
make them more efficient according to needs and demand of consumers is known as innovation
(Md Zaini, Samkin and Davey, 2020). Present report is based upon Marks and Spencer,
organisation operate their services as a British retailer headquartered in London United
Kingdom. Entity provides product range of accessories, food, clothing, home product etc and
offer high quality services to their consumers. In addition to this report include formative
discussion on company performance in terms of innovation in addition to their ability is to take
innovation as future opportunity. Along with this report include overview of respective industry.
Innovation History
Illustration 1: Innovation Timeline of Marks & Spencer
(Source: Innovation Timeline of Marks & Spencer, 2019)
PESTLE
Pestle analysis is a statistical framework through which organisation can identify number
of factors along with their impact upon business operation. Mentioned below pestle analysis in
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terms with Marks and Spencer is being mention through which entity can drive innovation for
company in past.
Political:
Political stability of United Kingdom is strong that facilitate organisations to regularly
innovate their product and services with the assistance of latest techniques as well as tools in a
continuous manner of time (Li, Kumar and Hardman, 2020). It allow Marks and Spencer,
Research and Development department to take advantage of United Kingdom political stability,
tax regulations, flexible programs for R&D Tax Credit and Patent Box schemes for private
organisations in order to continuously innovate their procedure and practices for future
development.
Economic:
Marks and Spencer perform their operations in efficiently developed countries those are
having high economics of scale that facilitate organisation to enhance their expansion and
growth in well defined and effective manner (Ilyas, Hu and Wiwattanakornwong, 2020).
Innovation act is a key essential element that is one of the most essential revenue generation
source of entity that further sure there long-term sustainability in prospective industrial sector.
Social:
Consumer needs, demands, preferences, choices and taste are continuously or
dynamically changing with the passage of time. It has being evaluated that customers now days
are more tend towards low calorie and organic food items. It facilitated respective organisation to
undertake their innovation in the process of developing product which are having less calorie in
sugar content. In addition to this it has been evaluated that maximum number of individual in
United Kingdom are changing their shift towards their clothing life cycle in a continuous manner
that allow marks and Spencer’s to regularly engage in extensive market research as to develop
products according to their demand that allow them to gain more competitive advantage.
Technological:
Technology is one of the most important factors which are continuously or rapidly
advancing, it allowed organisation to develop their techniques, technologies and processes in
order to increase development in organisational workplace structure in effective manner (Zhou,
2020). Technology play key essential role for Marks and Spencer that constantly drive them
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towards taking use of innovation in the product and services that facilitated them to become first
British retailer who is having their own research lab.
Legal:
Adherence of legal legislation and law allows an organisation to assure their
sustainability for extended time, without any legal obligation of government (Taylor, Torugsa
and Arundel, 2020). In context to this big retailing entities like Marks and Spencer take
advantage of legal compliance with federal retail labour laws that allow them to take advantage
of these laws to foster their image in marketplace and to avoid any legal prosecution and penalty.
Environmental:
This is one of the most essential factor that facilitate an organisation to have their positive
concern towards environment safety in order to have their sustainable consideration towards
environment Marks and Spencer continuously keep the process of undertaking use of
Sustainable practices and take use of recycle waste material in their processes. In addition to this
company also launched their green policy which they referred to as “Plan A” (INTRODUCING
PLAN A 2025. 2019). In this policy Marks and Spencer encourage themselves to emit less carbon
footprints in order to have positive impact and interest over society and environment.
Company active Capabilities and innovation performance
M&S operate their functions as well as activities as one the leading entity in retail sector and
perform their operations with having it’s headquartering in London United Kingdom. This
organisation is also listed on London stock exchange and offer diverse range of products and
services to consumers and is a primary constituent of FTSE 100 Index.
Existing innovation performance
M&S is conducting their functions in Europe with having partnership with only professional
customer investment as well as a retailer entity, TRUE, it allowed them to identify latest
prevailing trend, technology and knowledge related to retail industrial innovations. By this,
company is having significant motive towards having access to more than estimating 2000
enterprise-ready business through their life network. By conduct their operations in collaboration
with true significantly impact upon Marks and Spencer and are one of the most essential
transformation processes that allow entity to put digital expertise in their business operations. It
has been evaluated that in the year 2017 company formulated a 5 year transformational
programme that provide success and opportunity for company through which they in earned
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maximum profitable figures and sales. It further facilitated Marks and Spencer to bring
innovation in their clothing and home Logistic network. In addition to this it has been identified
that digital and marketing team of Marks and Spencer is also undergoing in a significant
restructuring, along with this company have also set up a consumer insight partnership with
Starcount.
While if it is talked about Marks and Spencer food segment, in this they have introduce
many key technical themes by evaluating future requirements and need of food industry. By this
company aim towards offering significant opportunity for business in order to ensure their
maximum shareholding by providing high quality and special services and products to customers
in a new variant and unique packing style. In addition to the M&S, R&D department by
identifying current need and demand of customers introduced these themes that also promote
health as well as well being agenda in order to enhance diet and healthy enrichment food
nutrients. In addition to this it has been identified that respective organisation also assure their
lead in food retail industrial segment by making reduction in campylobacter in poultry along
with adhering with food standard agency guidelines. Further it has been evaluated that Marks
and Spencer also started working various healthy food ranges and also introduced Company's
Plan A Innovation fund in order to undertake many initiatives and innovation practices for the
former plan. These funds are subjected to utilise in vacuum packing and testing of fresh meat
cuts. It allowed entity to reduce 75% of packing and offering better quality and fresh products to
consumers. This facilitated company to enhance their sales in a significant manner while
reducing their overall based storage that also lower down complaint from consumers.
Capabilities
According to industry evaluation performance of Marks and Spencer this is being
determined that organisation is having significant potential to come up with advanced, new and
high- tech innovation in their product and services by taking significant assistance of innovative
prosedure as well as practices. Along with this entity is having significant capability to
successfully execute their 5 year transformation program as to assure maximum success and
share holding in retail industrial sector that enhances their overall base of profitability and sale in
international market place. Along with this, it is identified that entity is also having capability to
enter in new market segment geographical area of Brazil and Poland hat effectively foster their
growth of innovation. This is being evaluated that M&S is also having capability to undertake
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utilisation of high and Technology extensive techniques like multi-channel platform and
cognitive computing through which they can provide maximum satisfaction to consumers by
completing their needs and demands in a well defined and effective manner. According to
evaluation is has been identified that company is having software Emotient through which they
can effectively deduct reactions of customer towards products, services, product, display design
in market segment (Kerr and Phaal, 2020). Innovative technology offer significant
assistance to Marks and Spencer can allow themselves to ensure maximum profitability in retail
industrial segment by providing immense satisfaction to consumer.
The Industry
Global market is facing transformation immensely with the passage of time, retail industry
also did not get untouched with this immense transformation, as it has been evaluated that this
industry have measured significant transformation over the years in the trends of cognitive
computing, e-commerce and more that are widely being used by any organisation for their
growth and development (Gerarden, Reeder and Stock, 2020). Innovative practices are being
widely undertaken by entities operating the services in this sector for their long-term
sustainability.
It has been identified that in this industry innovations are mainly associated with process,
communication, product, consumer engagement, consumer services. In context to this some
certain form of innovative example that retailing entities are undertaking HDFC Bank’s Eva
Chatbot (innovation in communication), Coca Cola's engagement programme, Greggs'
Vertically integrated operations, etc.
According to the evaluation of the innovation undertaken by organisation in retail sector
it has been identified that innovation is a crucial component that facilitate an entity to gain
maximum success profitability and consumer satisfaction that allow them to sustain for a long
period in market.
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Illustration 1: Retail Trends
(Source: Retail Trends, 2019)
As per according to the retail industrial segment evaluation it has been identified that
these findings offer assistance to gain essential knowledge related to respective market segment.
Mentioned below there are some certain of aspects is being defined with the application of Porter
Five Force:
Porters Five Force Model
Threat of new entrants:
Retail industry is facing new entrant as a low threat because of requirement of maximum
capital investments along with continuous investment of funds in order to ensure sustainable
business operation (Kerr and Phaal, 2020). In addition to this because of maximum shareholding
of leading organisations in this sector also make new entrant face number of challenges to out
power them in any way to gain maximum profitable advantage.
Bargaining power of suppliers:
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This is determined that due suppliers wants to conduct their business operations with
those entities who are having maximum shareholding and profitability in market segment, that
indicate low bargaining power of suppliers in this segment. Marks and Spencer is a largest
company that offer high quality of product and services that makes many suppliers to work with
this organisation in order to ensure their continuous growth.
Bargaining power of buyers:
Bargaining power of buyers is extremely high in retail sector due to the presence of
already existing leading entities like LIDL, Tesco, Sainsbury and ASDA who offers similar or
quite alike product and services to customers in reasonable price. It facilitates M&S of persuaded
to take on use of innovative practices in their business operation in order to influence maximum
number of consumers to undertake more profitable advantage.
Threat of substitute products:
In accordance with evaluation, presence of many leading organisations those who provide
their product and services in a similar range it has been evaluated that there is high rate of
substitute products in retail industrial sector (Gerarden, Reeder and Stock, 2020). In this Marks
and Spencer by undertaking use of differentiation and constantly engaging themselves into
innovation allow themselves to grab loyalty base of more consumers.
Rivalry among existing players:
It has been evaluated that existing organisations is having high rivalry, as according to the
evaluation this has been described that competitive entities of Marks and Spencer like Sainsbury,
Tesco, ALDI, Asda undertake extensive competition techniques in order to attract large number
of consumers towards their offering by providing them their goods as well as services in
reasonably priced range. Thus, in order to overcome this company undertake use of unique and
innovative development.
CONCLUSION
According to the above evaluation, it is concluded that innovation proves to be a crucial
strategic tool that an organisation uses nowadays in order to maximize their market share holding
respective industrial sector. In addition to this it has been determined that entity is required to
effectively and continuously engage in the process of innovation in order to serve their customers
better while sharing the long-term profitability. Along to this, pestle evaluation allows them to
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elements within internal as well as external environment in order to drive innovation process. In
addition to this porter five force model also access entity to evaluate elements that can hinder or
foster the process of innovation and for allow them to develop strategies against time take
advantage of innovation in an effective manner.
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REFERENCES
Books and Journals
Winch, R., Clough, J., Mant, A., Hamilton-Russell, E., Barker, A., Payne, S., Gilchrist, A.,
Tantanasi, I., Clay, G. and Rothwell, J., 2020. Making the case for green infrastructure:
lessons from best practice.
Md Zaini, S., Sharma, U., Samkin, G. and Davey, H., 2020, January. Impact of ownership
structure on the level of voluntary disclosure: a study of listed family-controlled
companies in Malaysia. In Accounting Forum (Vol. 44, No. 1, pp. 1-34). Routledge.
Taylor, R., Torugsa, N. and Arundel, A., 2020. Transformed management scholarship and ways
forward for exploring social innovation in organizations. International Studies of
Management & Organization, pp.1-23.
Zhou, S.W., 2020. Total Carbon Management Model. In Carbon Management for a Sustainable
Environment (pp. 123-160). Springer, Cham.
Ilyas, S., Hu, Z. and Wiwattanakornwong, K., 2020. Unleashing the role of top management and
government support in green supply chain management and sustainable development
goals. Environmental Science and Pollution Research, pp.1-14.
Kullak, F.S., Baker, J.J. and Woratschek, H., 2020. Enhancing value creation in social purpose
organizations: Business models that leverage networks. Journal of Business Research.
Li, Y., Kumar, V. and Hardman, P., 2020. Managing supply chain visibility: The challenges of
the UK food sector. Journal of Supply Chain Management, Logistics and
Procurement, 2(3), pp.261-275.
Gerarden, T.D., Reeder, W.S. and Stock, J.H., 2020. Federal coal program reform, the clean
power plan, and the interaction of upstream and downstream climate policies. American
Economic Journal: Economic Policy, 12(1), pp.167-99.
Raveendran, L., Bagli, D., O’Kelly, F., DiCesare, R., Twardowski, K., During, D., Moretti, M.E.
and Koyle, M., 2020. Time-Driven Activity-Based Costing of Management Pathways for
Vesicoureteral Reflux. Urology Practice, pp.10-1097.
Kerr, C. and Phaal, R., 2020. Technology roadmapping: Industrial roots, forgotten history and
unknown origins. Technological Forecasting and Social Change, 155, p.119967.
Nawaz, W., Linke, P. and Koҫ, M., 2020. Sustainable Initiatives and Practices of the Most
Sustainable Organizations in the World. In International Business, Trade and
Institutional Sustainability (pp. 17-41). Springer, Cham.
Online
INTRODUCING PLAN A 2025. 2019. [Online]. Available Through:
<https://corporate.marksandspencer.com/sustainability/report2018>.
MARKS & SPENCER SELECTS TRUE TO DRIVE DIGITAL INNOVATION AGENDA. 2019.
[Online]. Available Through:<https://corporate.marksandspencer.com/media/press-
releases/2018/marks-and-spencer-selects-true-to-drive-digital-innovation-agenda>.
Retail innovation: Trends, challenges and opportunities. 2019. [Online]. Available Through:
<https://www.hackerearth.com/blog/innovation-management/retail-innovation-trends-
opportunities/>.
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