Strategic Leadership in the Apparel Industry: M&Co Analysis

This report analyses the strategic leadership of M&Co in the apparel industry of the UK, with a focus on survival and success factors in the current online shopping market. The report uses leadership theory and critical thinking to assess M&Co's business environment and strategy. It also includes Porter's Five Forces and Business Model Canvas analysis.

Running Head: STRATEGIC LEADERSHIP 0
Strategic Leadership
M and Co analysis: Strategic Leadership
(Student Details: )
3/3/2019

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Executive Summary
The strategic report is focused on apparel industry of the UK, with the help of M&Co case
study of the company strategic leadership analysis will be done while referring also to the
current “death of the high street” caused largely by online shopping. The company M&Co is
out of the largest, privately-owned fashion retailing companies of the UK. The company has
been selling good quality clothes since last 50 years. The company is having so many local
department stores, selling contemporary products within a convincing store environment,
whereas on-time service as well as quality is paramount. In this way, this report will use
leadership theory and critical thinking application from the module to assess M and Co’s
business environment at distinct levels. Finally, the paper will appraise the company’s
strategy at the end of the case study analysis.

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Contents
Executive Summary...................................................................................................................1
Strategic Leadership: Apparel Industry.....................................................................................3
Introduction................................................................................................................................3
Strategic Leadership...................................................................................................................3
Analysis of the industry’s environment and survival or success factors...............................3
Political and Legal Aspects................................................................................................4
Economic Aspects..............................................................................................................4
Social Factors.....................................................................................................................5
Technological Aspects.......................................................................................................5
The appraisal of the organization’s strategy..........................................................................6
Porter’s Five Forces and Business Model Canvas.................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................11

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Strategic Leadership: Apparel Industry
Introduction
This report is based on strategic leadership module and hence contains background info of the
company with the purpose of the company’s business. In addition, paper is containing the
analysis of the industry environment, survival as well as success factors. Report will be
focused on the appraisal of the organization’s strategy for increasing business in the current
“death of the high street” caused hugely by online shopping. Basically, death of the high
street scenario is affecting retail stores of offline market considerably due to increased
popularity as well as people’s craze for online shopping. Hence, the paper will evaluate the
effectiveness of the M and Co company’s marketing strategies as well as survival factors so
that leaders, stakeholders, readers and other management of the company can utilise the info
resulted through an analysis and leverage for the betterment of the company over online
shopping market (Book Boon, 2010).
Source: (M&Co., 2018)
Strategic Leadership
Analysis of the industry’s environment and survival or success factors
This industry’s success factors include factor of overall environment of the store hence
clothes presentation in a retail environment is an essential component. Environmental factors
communicate with the customers by telling which products are new arrivals, popular, as well
as exciting. In this way, the retail environment directs the consumers throughout the store
while ensuring the overall experience is a better one (Bass & Dalal-Clayton, 2012). In

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addition, macro environmental factors include consumer characteristics; technologies,
government influence as well as the economy are affecting the retail clothing industry. PEST
tool of analysing clothing industry’s environment as well as survival factors is used here
(Goldman, 2012). In this way, following are the industry’s environmental, survival as well as
success factors in detail:
Political and Legal Aspects
In this context, a number of legal as well as political macro-environmental factors impact
small businesses in this retail clothing industry. This industry has also recurrently been
impacted by problems like workers' child labor laws and rights. In this context, union
workers of clothing manufacturing industries may stake their employers, when their wages or
medical profits are less positive than workforces in comparable businesses (Forbes, 2017).
Source: (M&Co., 2018)
Economic Aspects
Over the clothing industry, economic factors can impact positively and negatively as well. As
we know that during economic flourishing times, people do have much disposable income.
Thus, people might buy more clothing which increases sales of the clothing wholesalers,
manufacturers as well as retailers. However, economic recessions in the market impact in an
opposite manner. Hence, sales for the various clothing entities during those periods may be
suggestively lower. Subsequently, clothing retailers might get stuck with huge amounts of
catalogue. This is the reason that they might have to retail the clothes at noticeably compact
prices. In this way, M and Co. clothing retailer might also require to sell lesser-priced
clothing brands for competing with increasingly standard brands as the customers often shop
for inexpensive brands while they have low expandable income (Zahra & Nambisan, 2012).

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Source: (Doolin, et al., 2003)
Social Factors
Likewise the whole retail clothing industry, M and Co.’s consumer micro-environmental
factors comprise norms, cultures, lifestyle, demographics as well as population changes. The
reason behind is that the above mentioned factors impact the clothing industry in so many
ways. For an instance, a tiny clothing manufacturer requires to create styles which are
attractive to different cultures, particularly when those cultural groups denote large enough
sections of their market (Howland, 2013). Perversely, retail clothing producers, wholesalers
as well as retailers generally avert producing too many clothing pieces which fall outside the
rules of the society. For an example, an aging population may cause an increase in the
demand for large sized jeans as well as pants sizes, like relaxed and looser-fitting styles. In
addition, customers' waistlines enlarge hence they require bigger sizes as well as more room
for comfort. On the other hand, decreased birth rates in specific areas will automatically
lesser the request for baby clothes.
Technological Aspects
Technological are the micro environmental factors which are significantly affecting the retail
clothing industry contain availability of resources, demand as well as production. For an

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example, the lack of some materials like leather may compel retail as well as wholesale
clothing firms for selling more alternative leather products. In such cases, retailers can
increase the expenses of cotton clothing if they want to meet the shortages of the raw
material, because they have to pay their manufacturers more (Elmas, 2018).
Source: (Bosua & Venikitachalam, 2013)
The appraisal of the organization’s strategy
This section will contain appraisal of the selected organization’s strategy by using VRIN
framework (Buckley & Ghauri, 2015). This framework is having the VRIN characteristics
those can be learned through emphasizing on 4 important qualities:
 Value: as per this element, resources which can bring value for the company can be a
source of competitive benefit while keeping in mind that not all of the resources are
similarly easy to acquire.

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 Rareness: it contains the resources which are available to all of the competitors and
rarely offer an important competitive advantage.
 Imitability: it suggests that an ideal resource cannot be acquired through competing
businesses.
 Non-substitutable: this factor suggests that an idyllic resource cannot be replaced by
any other resource.
In order to apply VRIN framework over retail clothing industry, the report has used M and
Co. organization’s strategies and resources. M & Co. organization is working in the areas of
retailing of clothing and homeware since the year 1834. Since then, the company developed a
lot and hence a lot of international franchise stores have been opened world-wide. Company
is serving areas covered by UK, Middle East and Continental Europe. In addition, M&Co. is
having 3900 employees and 270 international stores at present, out of which 3500 employees
work in-stores and further rest 400 employees segmented amid London buying office and
Inchinnan Head office (M&Co., 2018).
Recently, M&Co. shows their revamped image on the basis of 4 guiding principles include
clarity, beauty, sustainability and functionality. Hence, first question from VRIN framework
arise for the value factor. In this context, instead of relying on other parties, M&Co. manages
all warehousing, design, distribution as well as logistics function by their own. Hence, by
doing so, this retail clothing organization has become more flexible and quicker than their
competitors (Kapferer, 2012). Flexibility as well as competitive advantage among others is
two most important pillars of development in apparel industry. Apart from this, M&Co. is
having a vertical integration that reduces operational costs. M&Co. owns an excellent
conceived organizational structure as well as values which all employees should respect.
Moreover, rewards are also a great autonomy which this company’s store managers possess.
Furthermore, M&Co. follows evolutions in customer tastes and hence this flexibility as well
as quick service creates a unique and reputed organization’s image. Besides, this clothing
retailer follows global trends and outsources more by the Asian clothing markets in order to
reduce their costs.
Now, the second factor of this framework is about rarity, if we analyze M&Co. competitors
the results are depicting that most of the competitors outsource major production while
emphasizing on retailing and distribution. The main reason behind is clothing industry is

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highly labor-intensive whereas M&Co. puts more focus on capital-intensive business. Thus,
about M&Co. it can be said that the resources are rare (M&Co., 2018).
Furthermore, third question is raised about the imitability about the clothing firm. As we
know that in this present era, almost each and everything is imitable hence the question
should be how long it takes to emulate. However, in the case of M&Co. if competitors had to
copy this clothing company’s business model they could but only in long-term. In this
context, we must consider enormous costs which clothing retailer firms would include for
copying the business model and that is often not possible for such firms to include.
Lastly, the question of organization is about non-substitutable firm. In this context, it is quite
visible from the annual reports that M&Co. firm is constantly hiking profits and sales through
their unique leadership strategies like servant and transformational ones. In terms of
resources and strategic leadership qualities the M&Co. firm is non-substitutable among the
whole retail clothing market of UK (Zheng, et al., 2010).
In this way, at M&Co. firm leaders first understand their mission to be strategic from all
perspectives. It means that the company’s management fully grasp why the firm exists, who
are the stakeholders as well as prime customers are and how precisely the company can offer
value for them. Furthermore, strategic leaders at M&Co. create a vision about the mission to
be successful in the future. Finally, M&Co. leaders craft a detailed strategy to put the vision
into action. Moreover, M&Co. strategies are mapping out the steps a clothing firm should
take or the alterations it requires to make for promoting from their current state to their
desired state (Bass & Dalal-Clayton, 2012).
Furthermore, as per the annual reports and factual data, strategic leadership competencies at
M&Co. include 6 below listed essential skills:
 The leaders at M&Co. use their critical thinking to anticipate first.
 The leaders at M&Co. use their critical thinking to face as well as prepare for the
challenges.
 The leaders at M&Co. use their critical thinking to interpret before getting to any
conclusion.

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 The leaders at M&Co. use their critical thinking to decide by keeping the risks and
trade-offs in mind. They also include customers and stakeholders, while making
decisions.
 The leaders at M&Co. use their critical thinking to align to identify conflicting
interests (Forbes, 2017).
 The leaders at M&Co. use their critical thinking to learn through evidences and
practices.
Porter’s Five Forces and Business Model Canvas
Furthermore, Porter five forces analysis of the UK’s apparel industry is as follows:
1. Bargaining Powers of Suppliers: This analysis of M&Co. implies that suppliers
possess a high bargaining power in UK.
2. Bargaining powers of Consumers: this analysis depicts that customers own high
bargaining powers in the UK fashion market.
3. Rivalry from market players: the porter’s analysis implies that rivalry from present
market players has an important high impact on the UK’s fashion industry.
4. Threat of novel entrants: the analysis implies that novel players do not own any
significant powers to challenge the current players of UK’s apparel industry.
5. Threat of alternatives: thus analysis depicts that alternatives are not presenting
significant threats to the present players in the UK apparel market.
Furthermore, Business Model Canvas of UK fashion industry and M&Co. is presented as
below:
It is a business model canvas which is describing the rationale of how M&Co. produces,
delivers as well as captures value in fashion market of UK. Thus, business model canvas of
the M&Co. clothing company will be helpful to assess its business strategies in future.

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Source: (Book Boon, 2010)
Source: (M&Co., 2018)

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Conclusion
In conclusion, the report has successfully analysed the strategic leadership from the
perspective of a retail clothing industry. To analyse environmental and survival factors for the
clothing retailers the report has used the renowned name of the industry as M&Co
headquartered in UK. In addition, external analysis tool PEST has been used for analysing
clothing industry with the help of some specific examples about M&Co. Furthermore,
appraisal of this organization’s strategies has been done by using VRIN framework. Finally,
M&Co. has demonstrated a well-defined strategic leadership in the UK clothes retailing
market.
References
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London: Routledge.
Book Boon, 2010. Thinking Strategically. [Online]
Available at:
http://training.hr.ufl.edu/resources/LeadershipToolkit/job_aids/strategic_thinking.pdf
Bosua, R. & Venikitachalam, K., 2013. Aligning strategies and processes in knowledge
management: a framework. Journal of Knoledge Management, 17(3), pp. 331-346.
Buckley, P. & Ghauri, P., 2015. International business strategy: theory and practice.
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Doolin, B., McLeod, L., McQueen, B. & Watton, M., 2003. Internet strategies for established
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Available at: https://www.insideretail.com.au/news/coles-signals-new-strategic-direction-
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[Accessed 27 09 2018].
Forbes, 2017. 11 Strategies For Achieving A More Diverse And Productive Work
Environment. [Online]

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Available at: https://www.forbes.com/sites/forbescoachescouncil/2017/01/20/11-strategies-
for-achieving-a-more-diverse-and-productive-work-environment/#6c332d1574d0
[Accessed 27 01 2019].
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