Strategic Management of Marks and Spencer

This document discusses the strategic management of Marks and Spencer, including its mission and vision, method of development, leadership style, change management model, and sustainable strategy. It provides valuable insights into the growth and development of the company.

Strategic Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Strategy of Marks and Spencer................................................................................................3
2. Method of development ..........................................................................................................4
3. Leadership style ......................................................................................................................5
4. Change Management Model for strategy implementation.......................................................7
5. Sustainable Strategy.................................................................................................................7
6. Future recommendations .........................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Marks and Spencer is a major British multinational retailer that specializes in selling clothes,
home products, and food products. The report will examine the information related to strategy,
the strategic tools which helps in analysing methods of development, leadership styles at Marks
and Spencer, its change management models and its implementation, future sustainability
strategy along with recommendations for the growth and development of the company. This
documentation will describe about the suitable mission, vision of M&S that will support for
implementing strategies in business growth and development.
Moreover, identifying the leadership style in which supports for changing the overall
business operations and functions. In this report, it will discuss the change management model
such as Change Kaleidoscope, which consider as method or technique for handling all kind of
logical business processes. Explaining the concept of Corporate Social Responsibility which
primarily used by M&S in order to develop or create as strong strength of enterprise. Afterwards,
it will provide the better opportunities for organization to change the current status of society and
workplace environment.
1. Strategy of Marks and Spencer
Mission — To make inspirational brand quality in the business environment (Scott and Walker,
2017).
Vision — The vision is to be the standard against which creates future strategies such that they
serve the customers better and company flourishes effectively and efficiently.

2. Method of development
Organic development is the growth of the organization by increasing output and enhancing
sales internally (Bernon, 2018). Organic growth is concerned with sales and expansion through
company's own resources. This comprises factors which are elaborated below -
Store closures (end of lease) — Marks and Spencer faced many challenges regarding the
growth and development of the organization. There were times when the company had grown
full fledged but due to some internal factors the company had to outgrow more to show its
power. As the clothing business became stagnated in 2015, the company had to bear the losses
due to the production in the clothing segment. At the same time company had problems with
availability when it still did have hits : a pink duster coat in 2013 and a brown cowgirl sued skirt
in 2015 had been hugely successful in the fashion media but stores had quickly run out of stock.
Changing Format or Use of Stores — Marks and Spencer changed its format to hands —
on style which stated that the company better runs that way than with the disengaged board.
Then came the “Transformation Plan” which was framed for the company to grow and expand
more on the larger basis than before. Archie Norman was appointed as the new chairman in the
later years who took out this transformation plan and clearly set the goals and objectives of the
company for effective and efficient formation of the plan with the strategies concerned.
Opening New Stores — Majority of the company's chains were opened in different
counties and cities. This gave the aspect of growth factor which led to overall development of the
company's reputation (Szymanska-Bralkowska and Malinowska, 2017).
The External Growth — The tie — up with Ocado with Marks and Spencer was done for the
growing digital operations for operating online delivery services which Marks and Spencer was
not able to create. Ocado took place when anxieties grew for growth in digital competition.
Collaboration with Ocado lead to deliver food at the start of September (Bajgai, 2017). There
was a 47.9% partnership jump in the sales which also enhanced profitability of the company. The
external growth of the company contributes to the internal environment as well. External growth
consists of the market environment, GDP, economies of scale, better distribution
channels/control of supplies, acquiring intangible assets. Along with the external growth consists
of increased market share. New products and market areas acquire faster speed for delivering the
products. Entry of new segments of an existing market leads to external growth of a business as

the new segments create opportunities for growth and development for the products and services
which are rendered by the company. Increased market share and market power leads to increase
in the external growth factor for Marks and Spencer (Bajgai, 2017).
Thus, this method of development enhances the external growth factor which mentions
opening of new stores, changing format or use of stores. The expansion of stores leads to internal
assessment of company's present situation.
3. Leadership Style
According to the given case scenario of M&S, it has found that Rowe use as Transactional
leadership style which help for changing the business policies and procedures. Marks and
Spencer is committed to achieve higher performance by following its objectives and
accomplishing its goals (Case Study — ‘Can the Saturday boy change M&S’).
Rowe was considered as tough-minded manager as the manager was only concerned with
the quality of the products and towards the services which the company was producing. The
manager was prone to taking photos of substandard packaging and rearranging shelf displays
when visiting local stores. Marks and Spencer nicknamed the manager as “Nails” which means
“Hard as Nails”.
According to case study, The manager was focused on the quality of the products and
services which Marks and Spencer was producing (Wilshaw, Fowler and Wallace, 2021). Strictly
adhered to the consequences the manager was focused on the best of what the company has to
serve in the food, clothing and the home products. The working environment of Marks and
Spencer is framed in such a way that the company and its employees are only focused on the
products and goods which attracts more customers and the performance of the employees is then
evaluated by it.
As the company faces many challenges still it never fails to improve the quality it serves
in the products. This is due to the high degree of evaluation and identification of the strengths
and the key points in which the company has made through (Case Study — ‘Can the Saturday
boy change M&S’). Whether it be any segment of Marks and Spencer this leadership style has
been the focus for the growth and development of the organization as whole. This leadership
style has encouraged and motivated the employees to improve their performance ensuring high
performance at each level of the hierarchy structure.

As per case study — ‘Can the Saturday boy change M&S’. Norman appoint as Chief
executive officer Marks and Spencer in 2018. Norman brought many changes in the company
which included major top management changes including new directors of both the food and
clothing businesses along with a head of digital and new head of menswear and womenswear.
Norman denoted Marks and Spencer as “a burning platform”. Then, Norman declared
Steve Rowe as chief executive. They followed strategies for the changes to be made for Marks
and Spencer. It was named as “transformation plan”. The first stage, “putting out the fires”
described the first two years of Rowe's leadership. Norman's leadership style was to calm the
situation which had caused imbalance in the company. The leadership factor became of utmost
importance for Marks and Spencer. The leaders formed for the company turned out to be
potential leaders which contributed to growth and development of the company on large basis.
The senior leaders of the company reorganized through a period of change, and developed ways
of leading change and making them happen. There are three types of leaderships which are
explained as below -
Transactional Leadership — Transactional leadership is also known as managerial leadership
which focuses on results, role of organization, supervision and group performance (Kark, Van
Dijk and Vashdi, 2018). Leaders in this style use rewards and punishments for specific tasks and
projects so that they can keep their followers motivated. This leadership style involves four
dimensions — Contingent rewards, active management by exception, passive management by
exception, laissez-faire. This leadership style was used by Rowe.
Transformational Leadership — It is a leadership style in which leaders encourage, inspire and
motivate employees to innovate and create change that helps the organization or the company to
grow effectively (Anthony and Hermans, 2020). This leadership style encourages and motivates
the team members. It is based on moral values and ethics which helps build the company culture
towards positive ways. Employees of the organization are being mentored for the task they have
to perform in the future.
Situational Leadership — This leadership style encourages leaders to take concern of their
team members, weigh different variable at the organization (Cote, 2017). This leadership style
works for the development of work groups by bringing out their capacities and skills which they
posses while performing their work. This leadership style was followed by Norman.

The years, 2018 and 2019 were about the second stage which was restoring the basics.
The third stage consisted of “shaping the future” by preceding “making M&S special” from 2021
onwards.
Critical Evaluation —
Thus, Transactional leadership style has proved to be of utmost importance for the
organization's growth and development and helped in understanding the company's leadership
style which it follows. Also, assisted in acknowledging the key aspects which this leadership
style follows. The company specially the manager following this leadership style has denoted
through this that the manager is concerned with the organization's performance. Through this
leadership style, employees are also rewarded for their performance. Therefore, it is being
significant for the company to use such style.
4. Change Management
Change Kaleidoscope
The theory in reference to the Saturday boy at M&S highlights the changes which took
place when Rowe became manager at Marks and Spencer (Rexhepi and Koka, 2020). The
progress which the company did determine the changes which took place in the organization and
converted the whole structure to progressive and profitability factors for growth and
development.
This change model outperformed when there were strategies formed for the company.
The Transformation Plan was outlined for Marks and Spencer which highlighted the key change
which were to be taken place (Haggblade, Babu, Hendriksand et.al., 2017).
There were many changes since the company was started which included the transformation plan
for Marks and Spencer. Strategies were made which contributed to the growth and development
of the company. And changes were made in the organization structure which contributed to the
inner and outer environment. The power of Marks and Spencer was shared between Rowe and
Norman who contributed collectively to make the company reach heights.
To apply change successfully, M&S context needs to be analysed and select the best
option in term of implementation. Change kaleidoscope can help to utilize effectively as provide
both wide range of availability. Change awareness from M&S in which encouraging by tool or
platform.

Thus, change management which took place in Marks and Spencer, helped in
acknowledging the changes in the company. This was done for the growth and development of
Marks and Spencer's products and services by reaching out to the consumers. The changes in the
company lead to different ways in which new ideas and innovations were done for increasing the
efficiency and effectiveness. The change kaleidoscope played an important part for the progress
of the organization.
Norman's “Transformation Plan” helped Marks and Spencer to accelerate the change
which was the only option. This was also the strategy presentation of the company which needed
basic support from the employees as they are the pillars of the plans and the strategies which are
being implemented. Norman changed the ways Marks and Spencer was working. Due to the new
changes there increased a scope for growth and development of the organization as whole. The
changes which took place in the management structure contributed to organization's success to
where it has reached now. There were difficulties and problems which company had faced, due
to which new strategies and plans were implemented which increased the sources and ways of
promotion of the brand and image of Marks and Spencer (Rexhepi and Koka, 2020).
Therefore, when these changes were made it took the company to another level of success.
Outgrowth of the company to both the external and internal environment helped in changing the
older ways of transformation rather followed the new techniques which focused on customer's
interest and the organization benefit for longer period. This was needs to Marks and Spencer
because as long as the company will serve its purpose of selling products to its engaged
customers more will be the sales and profit be achieved in the near future apparently.
5. Sustainable Strategy
According to the case study, it has been identified that M&S focus on the Sustainability
Strategy in order to minimize the wastage of materials. It supports for maintaining the overall
environmental condition or situation (Leite, 2020). As per Case study, M&S has adopted the
Corporate Social Responsibility assess the company's strengths and provides opportunity to the
company by giving positive impact to the society and environment. Sustainability is a concept
derived from environmentalism. Sustainability strategy leads to the secure and ensure that the
environment is not harmed or affected by activities which are going on in company.
Future sustainable strategy for Marks and Spencer in the year 2025 defined as Plan A -

 By 2025, all the key raw materials which the company uses will come from sustainable
sources.
 This commitment defines that the company will halve the food wastage from the stores
by the end of year 2025 (Szydlowska, 2020).
 By 2025, space will be available for community groups and charities done through 50%
of the clothing, home, food stores and offices reduction.
 Between 2017 – 2025, a million hours of work — time community volunteering will be
completed by Marks and Spencer colleagues.
 All edible surplus food from the Marks and Spencer stores will be distributed to charities
in the year 2025.
 Secured economic, social, and environmental benefits in the communities will be done by
learning programmes to 1,000 locations by 2025.
 Over next seven years the company's Global Community Programme will help a million
people in the supply chain communities to protect the environment and build livelihoods.
Objectives of this plan are -
 To improve the sustainability by enhancing the ways in which environmental conditions
remain sound and stable.
 To provide more charity to the needful.
 To redefine all key raw resources for future development in products and services of
Marks and Spencer.
Strategic Importance — This plan is an important strategy for the sustainability factor
as it well defines and demonstrates the key areas of improvement and the changes which are to
taken in sectors of Marks and Spencer (Taylor, 2019). This Plan A mention the future goals and
objectives which are to be achieved in the year 2025 and for future years till the company serves
its purpose by helping the communities and contributing to the charities. The strategy formed
becomes of utmost importance which serves not only the company goals rather enhances the
sustainability factor effectively and efficiently.
Furthermore, M&S has been focused on the “Corporate Social Responsibility” in which
supports for managing and controlling the social, economic and environmental concerns being
directly affected by the company (Jones and Comfort, 2018). M&S can operate CSR in different
ways which enhances the society and environment and does not negatively contribute to these

segments. Through CSR programs and voluntary efforts the M&S can benefit the society by
boosting the brands and engaging people on large platforms. The CSR activities of the M&S can
forge employees and the organization make strong bonds and the communication between them
is improved by its positive effects it leaves on the company.
Marks and Spencer has adopted the CSR activity and program which helps the company
to build their business so that they are able to give back the best to the society. Thus, CSR is an
important part of the company which integrates on the basis of the activities and the programs
that are enforced in the company. CSR is also accountable for the profitability of the company
which is the basis of the organization. Such activities are raised which increase the profitability
index of the organization and serves the best by managing the financial operations. Profits which
the company incur depends on the initiative Marks and Spencer takes.
6. Future recommendations
 It is recommended that Marks and Spencer can change their leadership style by which
they are able to attain goals. Besides that, they can provide training to staff and leader so
that it becomes easy for company develop new strategy.
 The company can hire new and experienced leader and train them for future. With that it
will be easy for firm emphasis on strategic management. Hence, it will enable in leading
team and accomplishing goals.
CONCLUSION
Thus, it is concluded from the above report that the mission and vision of the company
helps to analyse the key aspects for its future development. Transactional leadership style
defined that the work culture and the manager's behaviour towards the company. Change
management model helped in critically examining the strategy implementation on the company.
The future sustainability strategy explored the Corporate Social Responsibility, the activities
which the company constituted.

REFERENCES
Books and Journals
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environmental performance through the application of Green Lean/Lean and Green
approach (No. 127/2017). Institute of Economic Research Working Papers.
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Kingdom| Case study: Marks and Spencer Group plc.
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