Strategic Management: A Case Study of Marks & Spencer
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This report explores the strategic management practices of Marks & Spencer, including its background, methods of development, leadership style, change management, and sustainability strategy. It provides insights into the company's vision and mission, as well as recommendations for future sustainability.
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Strategic Management
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 M&S Background information...................................................................................................1 Methods of development.............................................................................................................2 Leadership style..........................................................................................................................3 Change Management...................................................................................................................4 Sustainability...............................................................................................................................6 CONCLUSION...............................................................................................................................7 REFERENCES................................................................................................................................9
INTRODUCTION Strategic management is the continuous planning, observing, determining and evaluating of all necessities a business entity require to meet its goals as well as objectives. This concept mainly based on the organization mission and vision for where it requires to be in future. For this procedure requires proper strategic planning in different manner and allocated resources as per the requirement(Adegbile, Sarpong and Meissner, 2017). This report based on the case study of Marks & Spencer which is a British multinational retailer organisation that established by Michael Marks and Thomas Spencer in the year of 1884. In this report consist of background information of M&S, methods of development used by the company. Along with determine the leadership styles that adopt by different person and apply change management in order to analysis of strategy in M&S. At the end of the report analysis future sustainability strategy for M&S and provided recommendations. MAIN BODY M&S Background information Marks & Spencer is the biggest multinational retailer that situated in United Kingdom. The company has long history in the UK market and established first store in the year of 1884. In the year 2020, company have 1038 stores that are located in United Kingdom and remaining 481 stores situated across the world. The company conducted their business operations at world wide level and recruit about 75 thousand peoples, the majority of female. Vision: It helps the organisation to achieve its goals effectively and efficiently. It helps in the decision of the company like what are the goals which the company has to achieve in future and how company can perform their task. Mission: This statement reflect on the business activities and what key purpose is there. Marks & Spencer are to develop inspirational quality accessible to others. The clothing and home items in business still essential part of business activity and collect sales 3.9 billion. In the year of 2016, online sales figured out to approx 20% of total clothing and sales of home utility sales in regard of 40% at the similarity positioned British retailer John Lewis.
Methods of development ANSOFF MATRIX Marks and Spencer is the top retailer company in UK it is famous for the products like clothing,home products, food products etc.(Ramly and Syukur, 2017). Mark and Spencer operates in the high functioning environment so it has to plan strategies to improve its business activities. Because if the business will run according to their old strategies then their growth in the market will never be achieved. Ansoff matrix is used for business expansion and business growth in the market this matrix was developed by H.Igor AnsoffandwaspublishedintheHarvardbusinessreviewin1957(Strategic management,2021)With the help of ansoff matrix an organization can easily know about the strength and weakness of the organisation to achieve any business goal planning a strategy is very important so for any business to grow fast in the market we need to plan strategy and work accordingly. Market Penetration:It basically helps the organisation to increase the sale of the productin the same market with the same productMark and spencer can increase the sell by putting more efforts in the products like they can include more varieties in the same product which will automatically increase the sale of the particular item in the particular market. Market Development:This strategy basically helps the organisation to earn profit with the same product but in different market because any organisation can never earn more profit in the same market they have expand their business to earn more profit. Mark and Spencer will never be able to expand their business if they will remain in the marketforever they need to change their market place so that the customer can get aware about the product and services of the company. Product Development:It basically focuses on development of new and innovative product in the same market so that the customer can get some change in the products and services of the organisation and sale can be increased and profit can be earned every business has to under go some changes to achieve the target if they will not follow change according to the market then they will never be able to satisfy the need of the customer. Diversification:It basically means development of new product in the new market like how business can expand in the new market with the new product. Mark and spencer wants to earn more and expand their business globally then they have to adapt a change and this strategy will
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help them to achieve their target it is slightly a risky factor but it can also expand the business business should always adapt changes according the requirement of the market because if business will not adapt changes the competitive firm will take advantage of it which will give a bad impact on the organisation. Leadership style Steve Rowe and Archie Norman followed a transactional leadership style. This style is used by the leader to encourage and motivate employees to create changes in the organisation so that the organisation can fulfil its customer requirement and earn profit. Mark and Spencer was undergoingthroughthelosswhichcompanyhastoovercometomaintainits productivity(leadership,2020). The CEO and chairman of mark and Spencer has planned various strategies to overcome from the loss which has occurred in the organisation they have planned several program so that the organisation can fulfil his growth by observing the market condition. A leader should always ensure high performance in the organisation by motivating their employees so that the organisation goal can be achieved fast and proper working environment can also be developed. If the organisation have proper working environment then it helps the organisation to increase its productivity within the short period of time which will also helps in the long time survival of the organisation. A good leader motivates its employees to achieve the business goal of the organisation with the proper use of resources available and so that employeescanworkmoreeffectively(Edwards,2018).Aleadershouldhaveaproper knowledge and skill so that proper guidance can be provided to the employees in order to achieve success leader should be biased with his employees they should treat their employees equally. Archie Norman created several changes in the top level management so that customer oriented activities can be performed in the organisation without any conflicts. Archie Normal appointedSteve Rowe as a chief executive for his support so that organisational strategies can be planned properly Steve Rowe observed the activities of the organisation and started its planning according to that he developed the transformation plan in which organisation can adopt changes according to the requirement of the customer he used several methods to provide changes to the organisation like use of technology, pricing of the product, developing of websites etc so that the organisation can achieve its growth and earn profit because the proper will not
take place then organisation can never overcome from the loss occurred in the organisation which will effect its growth and survival in the economy(Garzella and Fiorentino, 2017). Change Management Change management is defined as methods and manners in which define about the organizationchangesandapplychangeswithininternalandexternalprocesses.Inthis management consist of preparing supporting staff members and setting the require procedure for changeandobservingpreandpostchangeactivitiestoassureaboutthesuccessful implementation(Bosquetti, Fiates and Ponting, 2017). Due to increasing globalization, advanced technology and changes in present time become important part of each business in which require to survive in changing business environment. To handle this change in Marks & Spencer apply the change kaleidoscope model. This model is developed by the Hope Hailer & Balogun composes of outer ring and inner ring. In the outer ring focus on the business features that are based on time, scope, diversity, readiness and power. On the other side in inner ring focus on the design, applying choices that are related to change path, change start point, change style, change target and changes roles. There are applying the features and choices in the context of the Marks & Spencer such as:
Organizational contextual features: The company apply the transformational changes in Marks & Spencer such as: Time: It is time in which organisation wants to apply change in the business activities. These are related with the longer term strategic development normally have more time to change in Marks & Spencer. Scope: The scope is the degree of change necessary in regard of realignment and transformation. It is mainly utilised to measure how much change affected to business activities. After the changes in business Marks & Spencer measure the impact of entity (Rylková, 2017). Preservation: It is related to the level of which is required for arrange various ways of workingaswellasdifferentaspectsofculture.Alongwithpreserveparticular organisational competencies effectively in Marks & Spencer. Diversity: In this term degree of diversity among the staff members in which required to take changes in Marks & Spencer. These departments categorised as, sales, research & development, divisional culture that impact on the national cultures.
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Capability:Itiscategorisedintothreelevelssuchas,individual,managerialand organisational. These changes based on the different people who cope up with changes and help to staff members for the change. Capacity: It is related with those resources which are available for the investment in regard of proposed changes that are, amount of money available for investment and number of people with effective change capability. Readiness: This is extent in which staff members of Marks & Spencer aware about the changes and affianced to making the personal alternation require for them. Power: It is amount of power as well as liberty that key changes agents have to apply change as they want(Thorén and Vendel, 2019). Design or applying choices: Change path: It is consisted of different kinds of changes in regard of extent of alteration and speed of change that required to undertaken and results to be delivered. When Marks & Spencer apply changes in business so identify all the results and send to management. Change start point: There are mentioned that point where require to apply changes and developed. Such as, Marks & Spencer apply changes in top down and bottom up for more combination. Change style: For the changes in M&S apply the continuum style that based on the highly collaborative to participative. Change target: For the changes in business target to particular things such as, cultural activities, interpersonal, technical intervention and political changes(Todorov and Akbar, 2018). Change levers: In this term consider those people who take the responsibility of changes. In M&S Steve Row's take al the responsibility and struggling for investor support. As per the discussion it is critically analysed that in the Marks & Spencer apply transformational change in which focus on current operating procedure and technology. For the changes in the business M&S apply change kaleidoscope model. Sustainability The term of sustainability concentrate on meeting the requirement of the present without sacrificing the ability of future generations to meet their requirement. After the ten years
companyunveiledPlanA2020anewandsustainabilitystrategythatdeveloponthe organisation's previous success at the time of addressing a communication gap that exists in between brand and customers. As per the strategy report takes a three pillar approach to the future, mainly concentrating on clients and well as staff members well-being and transforming lives and communities for the planet. According to this sustainability strategy requires to business bid to become a truly sustainable by key actions in which targeting of every focus area like sustainable sourcing, increasing £25 Million for charity and having food waste across its operations by 2025. Plan A 2025 will also see a continuation of M&S shopping of clothing recycling initiative and the business has committed with at least use of 25% that reused material in at least a quarter of clothing is sells by 2025. The Plan A of 2025 is plan for future which is effectively sustainable in partnership with customers as well as stakeholders have positive effect(Trigeorgis and Reuer, 2017). It will force us to identify questions in which required to give all answers and meet with others because drive true changes across client with good industries. For the achievement M&S said it: Make all M&S packaging broadly recyclable by 2022. Assure for one quarter of all M&S clothing and utility items will be developed on 25% recycling material by 2025. Deduct green house gas emissions through 80% as compared to 2007levels its own activities by 2030 and at the time of cut emissions in its supply chain by 13.3 tons. As part of 2025 the main aim of the M&S also committed to be clear and transparent and motivate to live more substantially: Company become more transparent and add further food and clothing & home supply chain details by 2019 and raw materials by 2022. By the year 2019, set up and launch a mechanism items that meet with particular sustainability criteria(Vitkauskaitė, 2017). CONCLUSION As per the above report it has been concluded that strategic management consist of setting objectives, determining the competitive atmosphere, assessing the inner organisation as
well as analysis different strategies in order to assure about the management roles across the business entity. It is recommended that to accomplish Plan A 2025 require to follow all the procedure in effective manner and become transparent.
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REFERENCES Books and Journals Adegbile,A.,Sarpong,D.andMeissner,D.,2017.Strategicforesightforinnovation management: A review and research agenda.International Journal of Innovation and Technology Management.14(04). p.1750019. Andersen, T. J., Torp, S. and Linder, S. eds., 2019.Strategic Responsiveness and Adaptive Organizations:NewResearchFrontiersinInternationalStrategicManagement. Emerald Group Publishing. Bosquetti, M. A., Fiates, G. G. S. and Ponting, J., 2017. Strategic Management at Mormaii-the Brazilian Surf Industry Leader.Brazilian Business Review.14(Special Ed). pp.110-129. Edwards, J., 2018. Mastering Strategic Management: 1st Canadian Edition. Garzella, S. and Fiorentino, R., 2017.Synergy value and strategic management. Springer. Krzakiewicz, K. and Cyfert, S., 2017. Dynamic capabilities in strategic choice processes within organisations.Management.21(1). pp.7-19. Ramly, A. T. and Syukur, D. A., 2017. Strategic Management of Organization Development and Civil Service Based PumpingHR Model at Ibn Khaldun University Bogor. Rylková,Ž.,2017.Municipalstrategicmanagementandperformance.JournalofPublic Administration, Finance and Law, (11), pp.49-57. Thorén, K. and Vendel, M., 2019. Backcasting as a strategic management tool for meeting VUCA challenges.Journal of Strategy and Management. Todorov, K. and Akbar, Y. H., 2018.Strategic Management in Emerging Markets: Aligning Business and Corporate Strategy. Emerald Group Publishing. Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management.Strategic management journal.38(1). pp.42-63. Vitkauskaitė,I.,2017.Strategicmanagementofindependentfilmproduction companies.Chinese business review.16(6). pp.259-277. Online Strategicmanagement,2021[Online]Availablethrough:<https://searchcio.techtarget.com/ definition/strategic-management> leadership,2020[Online]Avaiable through:<https://hbr.org/2004/01/understanding-leadership>