PEST Analysis of Marks and Spencer

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
UNDERSTANDING AND LEADING CHANGE.........................................................................1
INTRODUCTION...........................................................................................................................3
P1. Drivers and their impact of a change ..............................................................................3
P2.PEST analysis of marks and Spencer company................................................................6
P3.Impact of change and effect it has upon the organisation strategy and operations...........9
P4. Presenting how change will affect leadership, individual and team behaviour.............10
P5. Evaluate how the impact of change minimized using appropriate model of change.....11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Changes in business is all about to meet the problems' comes with implementing and
initiating change in the strategies. Changes in organisations help to build a network of global
contacts. It is process where a company identify the requirement of change to achieve the
specific goals. Further it is described as the change in the processes, strategies, culture,
technology, and the procedure of the company.
Marks and Spencer is one the biggest multinational retailer company. This company is
producing different kinds of products such as- clothes, home products and luxurious food
products. Company is expanding its business across the world. This file discusses about the
drivers and their impacts of change and how it affects the organisational strategy. It also describe
some external factor that affect the company by using PEST and SWOT analysis. Further report
also describe how the change of a company will affect the leadership and team behaviour by
applying different theories. Beside this, report also evaluate how the impact of change also
minimized by using Kurt Lewin change model.
P1. Drivers and their impact of a change
New technologies- change in the applied science creating new opportunities. Innovation
is one of the important thing when introducing the new engineering. Marks and Spencer is
adopting the new application to increase its production. Other companies which are based on the
traditional method production, are also adopting the way of new technologies for the profit
maximization (Lynch and et.al., 2018).
Globalization- It is drawn in every single country into in single economic system. There
are many people who are participating in social system through the social media. It affects the
strategy of every company because strategy address a globalised market in which many people’s
are participating in business and social communities beyond the boundaries. It will be helpful for
the Marks and Spencer to understand the current and future impacts of worldwide trends and
operation's. It is not possible for Marks and Spencer to be more successful without addressing
global markets, as customer community’s are also a global part. Globalisation has effected the
expansion strategy of marks and Spencer. Due to globalisation, marks and Spencer has able to
expand business at international level. On the other hand, capturing the opportunities provided
by globalisation, Tesco has planned to enter into new market which has helped an enterprise in
increasing sales and profitability.

Commoditization- It is a big pressure in which price can goes downwards. This driver
can also be a cause of change for the business of marks and Spencer. As commodization will
impact the price of goods and as a result, it will help to create positive impact upon the business
performance which help to sustain its brand image in market. On the other side, in TESCO if it
realize the needs of the customers then it will help to raise profitability of a firm.
Digitalization- It impacts all the aspects such as- business, society, entertainment,
manufacturing, distributing, product designing. Nowadays it has become a big source of
success. Because it will help to Mark and Spencer to expand business in different countries.
Digitalization is an approach which helps to reach out all the objectives beyond the exceptions.
There are few companies which are not adopting the way of digitalization, and based on the
traditional methods which cannot survive in the market. Tesco is using the strategy of online
marketing that is affecting the growth of company. And Tesco is expanding its business through
online marketing.
Mergers- it is very difficult to merge with other companies. It is very critical for the
company to change in internal leadership, culture and business models. Marks and Spencer has
started collaboration with the new companies of rural areas and also faces different challenges
but on the other side, this driver creates positive impact upon financial position of a firm by
raising its sales power. And Tesco is expanding its business by collaborating with other big
companies of different countries which help to sustain its brand image in market that further help
to raise its financial position in market and also gain high competitive advantage.
Social mediatization from society- it is very important for business to be a part of
Internet. That means business should accomplish every activity on the internet. Business in
invocable and inconceivable without internet. And social different kinds of software which are
used to maintain the new companies (Chen, Brissette and Lucas‐Picher, 2015). In the same way,
TESCO and Marks & Spencer also uses different social media in order to promote their products
into a market so that quoted firm will let people about new offered products. Therefore, social
media creates positive impact upon business which help them to move in forward direction.
Overview of organisation case study
Marks and Spencer is a British multinational retailer company. Which is selling a number
of products such as clothing, home products, luxury products, food products. Marks and spacer is

funded in 1884 by Michael Marks and Thomas Spencer. That is why company is also known as
MARKS and SPENCER. Company has also starts to selling the branded goods like – Kellogg
Corn Flakes in November 2008. There are 979 stores in the UK of Marks and Spencer. Company
made its reputation in the 20th century with the policy of British made goods. And company
started work with different manufacturers. And started selling goods, cloths and food under the
St. Michael brand.
Company mainly focusing on the quality of products. Company had a reputation for
offering fair value of product for money. Company started selling Christmas puddings and
Christmas cakes in 1958. Company haired a food expert Net Goldberg to improve the quality of
food. Marks and Spencer has opened its first store in the Kabul, Afghanistan. There are two
segments of the company through which company is operating it business and I.e International
and UK. The segment of UK consists retail business. And franchisee of UK, operations. Marks
and Spencer has introduced new sub brand s in clothing against the difficult trading market
environment.
Mission
Mission of the company is delivering its own brands food, cloth and other products.
Company is also selling the menswear, kid swear, home products, beauty products. Mission of
the company is to achieve the long term goals for profit maximization. Mission of the company
can be divided into 3 parts. Mission- make the best quality of products which should be
accessible by all.
Vision
The company wants to be a competitor of all the retailers company in the market.
Company wants create a standard against which other companies are measured. Company
believes top take an initiative in every fields.
Income statement of the company- According to last figures, company's net income in 2017 is
$115.7 million. Magazines, newspapers and Ads was running by the company. But later eome
famous starts such as- David Johnson, Twiggy in different channels helped to increase the brand
image. Many problems are arising of marks and Spencer. Company has been criticised for the
food trading with the Israel.
In the 1990 marks and Spencer adopted more high profiling marketing strategies.
Company is using the marketing mix strategy to target customers. Masks and Spencer company

is built on the innovation, valuers, quality and trust. Company gives the priority to the demand of
customers. Company is capable full fill the expectations of the customers. Nowadays company is
focusing to expand its business.
P2.PEST analysis of Marks and Spencer company.
Pest analysis is a tool to identify the external factors which are affecting the company. therre are
some factors in environment which are affecting the business of marks and Spencer company
and these factors are written below-
Political – this factor made and run by the government of the country. This factor
indicates towards then interference of the government in different trends and business of marks
and Spencer. Government is specially anticipating with the labour law, trade policy, tariffs, trade
restrictions. This factor also affect the goods and services of the company. That means what
types of services and goods are going to be provided by the government. Government of the
country made a rule which describe that what type of goods and services can enter and goes out
from the country. Only government can change the in the policies. There are many rules has
discovered by the government of UK for the example- labour act, companies act. Government
controls all the activities of the companies through all these policies and Acts. Change in
government and taxation policy can also affect the business of marks and Spencer.
Political factor can affect both the ways -
Marks and Spencer is first company which is adopting a fair trade path in food and cloth
segment. Fair trade policies helps to reduce in sourcing cost and maximize the benefits.
Company is facing many international marketing issues. Each and every countries have their
rules and regulations for marketing. So it becomes a very issues for the company to expand the
business in different countries.
Economical factor- change in economic position of the county can also affect the business of
marks and Spencer. This factor affects the long term goals of the company.
Inflation rate of economy can affect the price of products and services. It also affects the
supply chain model of the company and power of purchasing products. Interest rate, foreign
exchange rates, inflation rate all are the economic factors which can affect the business of the
marks and Spencer company. Uk has open economy and rank in the world. All the monetary and
fiscal policies are managed in the UK because the inflation rate is so low and government

finance condition is so strong in UK. Current financial situation of the UK government is so
strong so it would be in favour of marks and Spencer company to expand it s business. Healthy
economy of helps to increase the income and it sis good for business. It will to marks and
Spencer to focus on the fashion area of clothing for the younger generation.
Social factor
Social factors are based on the choices of the customers. Taste and choice of the
customers can change anytime so this a factor can also affect the business of marks and Spencer.
Socials factors can indirectly affect the marketing strategy of the business. Marks and Spencer
includes the strategic marketing factors such as age distribution, cultural aspects of the people.
New trend in society can be beneficial for the company because it will help to increase the
demand of products. So marks and Spencer has modified many things according to social
demands, such as- range of cloths, range of food products. Marks and Spencer company is
mainly focused on the products of 40-55 age of people. Company should focus on new
fashionable things for the younger generation.
Lower price of the cloths can be a reason of loss. 18 April 2000, marks and Spencer has
allowed its customers to pay with credit cards because of the competitor who has already
allowed their customers to paying by credit cards(Thompson and Glasø, 2018).
Technological factor
Technology is playing a main role for the growth of business. IT system helps to increase
the productivity and lower cost in Retail market. Marks and Spencer is a multinational, company
so the people across the world can purchase the items online. And they can get the delivery
straight to their homes. It is the best example of IT contribution in the business world. Marks and
Spencer is using the online strategy to expand its business. And company is also adopting the
marketing strategy for selling product. Marks and Spencer invested a lot of money behind the
heavy mescheneries to increase its efficiency.
Recently marks and Spencer company is decide to provide free Wi-Fi facilities to the
customers in the stores. For the purpose to attract the customers. It will help to customer to
search about the new offers and products of the company. But there are some losses of adopting
the new technology.
SWOT analysis of Marks&Spencer

Strength- Marks&Spencer is most powerful retailer brand in UK. It is the brand which
positioning in the mind of customers. It is the brand with top of the mind recall. It focuses on the
quality product in the best price so that the customers attract toward the brand and customers are
the biggest strength of any brand. Marks&Spencer includes 6 other brands in it and it is also the
strength of it that maximum people afford it easily. It spared off all around the world and have
wide area.
Weakness- Many of the other brands make existence in the market and it is the biggest
weakness of Marks&Spencer. They have limited market shares just because of competition in
the market. In today's world there is more fake products which are easily available in the market
and it creates danger for the organisation.
Opportunities- Marks&Spencer have many opportunities to develop its business. They
can develop their websites for selling. They can introduce new product segments in the market
with the best quality. There are future opportunities to expand their brand in high population
country like China and India.
Threats- Competitors create big threat for any organisation. Threat from the other retailers
which gives the product on ow price and it can develop the danger for Marks&Spencer. There
are many governments policies and legal actions which affected the organisation and it is not
easy to spread the brand in all around the world with clearance of governance policy.
P3. Impact of change and effect it has upon the organisation strategy and operations.
Tesco company is mainly facing all this adaptive changes such as-
Persistence conflicts, employees working behaviour, collaboration with other companies' to
expand its business, crisis(Hassan,2018).
Impact of changes and strategies in Tesco
Effective leadership is one of the best ways to overcome from all these problems. A
leader is a person who can influence the other employees. So the Tesco is providing the effective
training to the leaders which can be helpful for the company to solve all these problems.
Reward system- Tesco is providing the rewards' system to the employees. So the can improve
their working behaviour and work more effectively. Company is providing two kinds of reward
system such as- monetary and non-monetary system.
Change in their posts- Tesco is adopting this way to solve the conflicts of employees. And they
can work together to reach out a common goal of the company.

Change in marks and Spencer
Poor stores – marks and Spencer company is suffering with this problem. There are no
any availability of the stores in rural area. So company is facing a big problem of business
expansion.
Fashion changes with time- marks and Spencer company is mainly focusing on the
products of old people and home products. Company is not growing with the time. Company is
not focusing on the fashion garments of young people.
Impact of changes
Employee resistance was the big change in the company because many of employees was
satisfied with the changes but few were supporting the traditional products.
Customer satisfaction- marks and Spencer is going to start fashion products. For the all young
generation. It will be helpful for the customers to satisfied their expectations from brand.
P4. Presenting how change will affect leadership, individual and team behaviour
As the management change is also affected the leadership style of leaders of Marks and
Spencer and it also creates positive as well as negative impact upon company's performance. In
order to cope up this change, leaders of quoted firm has to use situational leadership theory in
order to initiate some changes.
Situational leadership: This leadership style refers when leaders and managers has to
adjust their own style in order to fit themselves into the sudden change in a company. Using
situational leadership style, it depends upon the leaders to manage their style not up to the
followers to adopt leader's style (Situational leadership, 2018). Beside this, situational style
usually changes continually in order to meet out the needs of others in an organization which is
based upon the situation. There are four leadership style in this theory which are mentioned
below:
Telling: This type of leaders are make decisions and communicate to each others. They
actually create the roles as well as objectives and also expect others to accept this rules. This
style is fruitful only when business wants perfect results because communication is usually one
way (Lynch and et.al., 2018). If the leaders of Marks and Spencer follows this style then they are
quite involved and closely supervise to the peoples who are working with them. As this style is
top- down approach that is why employees have to follow what their supervisor told to them.

Selling or coaching: In this type of leadership, leaders are quite involved in their day to
day activities and hence the decisions are lie with leaders only but also take opinions and
suggestions to their subordinates or employees. Thus, the leaders or managers sell their ideas to
others in order to gain the cooperation (Thompson and Glasø, 2018). As when this style is opted,
then employees are still supervised but with different coaching manner rather than management
manner. So that it helps the employees of Mark and Spencer for direct praise in order to increase
their self- esteem as well as confidence.
Participating and supporting: In this leadership style, leaders support their employees
and they keep involve them in order to take better decision for the welfare of a company. After it,
this style helps a leader to raise the confidence level and also take proper feedback from them in
order to get exact results. Although, leaders force employees to take participation in the decision
making process and left choice to them only. In this way, the leader of Marks and Spencer will
easily perform well and those who work under this style, then they should posses necessary skills
so that they can achieve the target of a firm.
Delegating: This leader are also responsible for their team but on the other side, they
provide better guidance to their workers in order to solve their problems (Lincoln and Keller,
2018). In this type of style, leaders are involved with the least amount and only employees are
responsible for their own decision. So that employees will know their role and perform it with
little supervision.
If leaders of Marks and Spencer chooses situational leadership style, then it will be easy
for them to easily accept the changes and can lead a team as well as individual to achieve the
goals in defined time period.
P5. Evaluate how the impact of change minimized using appropriate model of change
In order to cope up with different change in management, leader of Marks and Spencer
will use Kurt Lewin's change model which is used when the organization makes changes or
adjustment because employees are not always happy with change in management, as a result it
increases employee resistance. To handle such, Kurt Lewin change model is applied which focus
on behaviour modification into three stages.
Unfreeze stage: In this stage, employees of the company will realize that something is
going to be change and that is why they have to strongly face it. Therefore, it is quite necessary
for leaders of Marks and Spencer to disclose all state of affairs and explain why this change

process is put into working area (Hussain and et.al., 2018). Hence, through proper or clear
communication, with employees then they are more willingly accept the new change and let go
all old customs. Therefore, it is recommended to M&S to keep involve employees so that they
take constructive approach for change process.
Change stage: this stage is also known as move stage and it is quite essential for a
business to implement the change for short time. Because it has been analysed that if the change
process takes longer time then more employees are inclined to failure into old customs. Through
implementation f a change in short time, then employees are al so easily adjust into new change
system and can be aware of new management process. In this stage people are also learn new
behaviour and change the way of thinking so that they will easily complete the assigned task. If
the change is better implemented into the working area, then it will be more beneficial for a firm
as well as employees to adopt new strategy which will further help Marks and Spencer to reach
further level of success (Hassan, 2018).
Refreeze stage: In this stage, refreeze all changes and when the change is implemented
during second stage, then employees are inclined in order to revert to some old habits. That is
why, it is recommended to Marks and Spencer to make proper arrangements and through proper
monitoring as well as adjustments, employees will easily make cope up with new one. As the
system implement new process into better way, then employees of a firm can easily adjust with it
and they will also act accordance with new situation and also realize different advantage of using
it.
Therefore, using Lewin's change model, Marks and Spencer can easily minimize the
negative impact upon change in management and as a result, the process will also change in
effective manner.
CONCLUSION
From the above study it has been summarised that the impact of change and factor affected
organisational strategy, overview of organisation. Also, discussed about the PEST and SWOT
analysis of the company, also discussed about the impact of change and effect it has upon on the
strategies and operation, leadership affected the organisation, individuals and team behaviour.
This file further discussed about the application of appropriate models to process change
efficiently.

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