Strategic Management Case Study Analysis: M&S - Change Management

This case study analyzes the strategic management processes of Marks and Spencer (M&S), a British multinational retail organization. The report begins by outlining the strategic management process, including identifying strategic positions, gathering information, performing SWOT analysis, formulating and executing strategic plans, and monitoring performance. It then evaluates critical strategic models such as PESTEL, SWOT, Porter’s Five Forces, McKinsey 7S, and VRIO frameworks, demonstrating how these tools can be applied to a real organization like M&S. The application of these tools, particularly PESTEL, SWOT, and Porter’s Five Forces, is discussed in the context of M&S's business environment. Finally, the report emphasizes the importance of change management, considering factors such as risk, cost, complexity, and sustainability within the transformation process. The analysis provides insights into how M&S can use strategic tools to navigate market challenges and achieve its objectives.

Strategic Management Case - Study
Analysis
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Table of Contents
Introduction...................................................................................................................2
Assessment of the process to determine the strategy adopted by the organization. . .2
Evaluation of the critical models to determine the strategy used by the organizations
......................................................................................................................................3
Application of tools to a real organisation.....................................................................5
Appraise the importance of change management based on risk, cost, complexity of
the transformation process and sustainability..............................................................7
Conclusion....................................................................................................................8
References.................................................................................................................10
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Introduction
Strategic management is concerned with a process in which organizations
determine strategies based on analysis and evaluation of different factors affecting
achievement of organizational goals and objectives. Strategic management is a very
important process for organization because success of organizational gets
significantly affected by how they develop and implement strategies. For developing
strategies a process is followed by organizations and this process will be discussed
in report. Report will also discuss about tools and models to determine the strategy
used by the organization and these tools will be applied on a real organization and
lastly importance of change management will be discussed. This report will
contextualize Marks and Spencer British multinational retail organization founded in
1884 in Leeds, UK and is headquartered at London, England, UK.
Assessment of the process to determine the strategy adopted by
the organization
Strategic management is procedure in which various strategies are framed for
welfare of organizations and this ensure that how organization will work accordingly
by following strategies being formulated. Strategic planning is management activities
which are formulated by business to ensure activities and processes of organization
are working which strengthens operations to achieve objectives targeted (Karlik and
et.al., 2017). With the help of strategic planning, management is able to decide key
functions and roles of organizations.
To determine the strategy, process used by the organization is –
Identifying the Strategic Position – For identifying the strategic position of the
organization both long – term and short – term goals should be analyzed as through
this the strategies will then be formulated keeping most concern of organization and
its success. The organization objectives and goals must be measurable and realistic
in defining the strategic position as to where the organization wants to reach.
Gathering People and Information – When the strategic position is identified the
next step which comes is gathering the information and the people to get them
involved in the planning process of the organizations. The data which is used should
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be accurate so that it helps in achieving the clear and exact results as expected.
Employees, partners and customers are the main source which helps the
organizations achieves the strategies framed effectively.
Performing SWOT Analysis – For effective and significant strategic planning
process the main aspect which is done is initiating the SWOT analysis helps in
analyzing the strengths, weaknesses, opportunities and threats of the organizations.
Through SWOT analysis the members of the organization work together so as to
achieve the targeted goal and objective (Elbanna and et.al., 2020). Also, the SWOT
analysis helps in providing the right direction towards the success factors in an
efficient way possible.
Formulation of a Strategic Plan – When the strategic position for the organization
is identified then the most important aspect which leads the position is the strategic
plan. Various types of initiates are taken in accordance as the plan is followed step
by step. And for this best way to measure the progress of strategic plan is also
identified which makes the work even easier. Therefore, measurable goals are
identified for success.
Executing the Strategic Plan – As strategic plan is framed; it is ready to be
implemented in organization. The management along with employees are made
involved in plan and through that they ensure that what whether employees and staff
are following strategic plan which is framed. This is done by keeping record and
track of employees whether they are following path and working step – by – step in
the strategic planning to be implemented.
Monitoring the Performance – Constant monitoring of the performance is done to
ensure that the strategic plan is being done appropriately and followed by the
employees. Corrective actions are then taken if there is any issue or any problem
arises (Demir, 2018). Collection of relevant and new data is done which helps in
making the strategic planning more effective for the organizations overall. This helps
in achieving the future strategic plan to be successful.
Evaluation of the critical models to determine the strategy used by
the organizations
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The critical models which are used by the organizations to determine their strategy
are the models such as - PESTEL framework, SWOT analysis, Porter’s Five Force
Model, McKinsey 7S framework and VRIO framework. Through these models and
frameworks the organizations will be able to achieve the targeted goals and
objectives. These models will help the organizations in making efforts towards
creating what is beneficial for organizations success. This is the main key source
through which the organizations will identify their core competencies overall.
The evaluation of these models is described as below -
PESTEL Framework – PESTEL framework denotes the factors which are political,
economic, social, technological, environmental and legal. With the help of these
factors the organization will be able to analyse factors which assists and how they
affect the organizations and its processing pattern (Graham, 2018).This framework
provides the detail of both the internal and external factors of organizations which
help in reviewing various possibilities and provides the information regarding how the
organizations follow these factors appropriately.
SWOT Analysis – With the help of SWOT analysis, there are various functions of
organization which are accomplished along with goals and objectives targeted.
SWOT consists of strengths, weaknesses, opportunities and threats. These four
aspects denote that what are key opportunities, threats, weaknesses and strengths
of organization. Further, the organizations are able to assess their performance by
evaluating these four aspects. For longer run, future is also predicted which helps in
ensuring that what are opportunities and threats to organization in external business
environment.
Porter’s Five Force Model – Porter’s five force model consist of the five aspects
which are - rivalry among existing competitors, threat of substitutes, bargaining
power of suppliers, bargaining power of buyers, threat of new entrants. These five
forces help in analyzing the market structure and the external forces which makes
the process for the organization effective and efficient enough (Espinoza and et.al.,
2019). The model also helps in identifying major threats in the business along with
the rivalries which are ready to compete in the market on large scale.
McKinsey 7S Framework – McKinsey’s 7S Framework comprises of structure,
strategy, systems, styles, staff, skills, strategy. These are the key essential
ingredients which are used in this framework. This framework gives the detail
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information both about the employees and the organization. By analysing these
essentials, the organization will be clearly able to take initiatives and through this
they will be able to make the aspect of growing on the scales of how to achieve
success on large scale effectively and significantly for the organization.
VRIO Framework – The VRIO framework constitutes valuable, rare, imitable and
organized factors (Samusenko, A.S. and et.al., 2020). These are the four sources
through which the organization is able to make the framework for the operations and
the products and services which are made available to the customers by the
organizations. This framework is based on the services and products which are
being worked upon for providing the information to the customers and the
organization. This framework is helpful in making the factors of organization most
effective and efficient.
Application of tools to a real organisation
Application of Pestle analysis in M&S which means that analyse key factors
such as political, economic, sociological, technological, legal and environmental.
These are considered the important aspect in order to influence M&S from outside.
The primary reason for using pestle tool in order to do flexible analysis, So that M&S
can use it in wide range of different scenario. Different professionals, senior manager
can use the better result so that they can implement suitable strategic in
organisation. It will support for M&S to take important decision in regards of business
growth and development.
Pestle analysis is applicable the current environmental condition of M&S so
that it is one of the important aspect in context of application. At some point, M&S
retailer can do such innovative thing and acquire raw materials, hire employee,
secure capital and obtain more knowledge (Bhuvanesh Kumar and Parameshwaran,
2018). On the basis of analysis, company will change their business working
environment or culture according to requirement. This is not only support for inspiring
or motivates the potential employees towards organizational goal or objective.
By using Porter’s five force model, M&S should be considered the best
analysis tool that help for analysing current level of competition and identify
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competitors of M&S. So as, it is useful for retailer when M&S can start a new
business in the international marketplace. The application of this tool,
competitiveness does not come from different competitors but rather, it is completely
depending on the basis forces such as bargaining power, supplier, and existing
rivalry. The most commonly used the Porter’s five force by M&S. For example- in
M&S, manager, executive staff members have a conscious about the current
competition level because it has been rapidly increasing the demand of people
towards product as well as service. So as, manager can do market research and
then compare prices, product quality. Afterwards, M&S will launch a new item
according to the demand of consumers. At that time, it will use Porter five force
analyses in order to represent the level of high competition in marketplace.
By using SWOT analysis, M&S company has been looking at strength and
weakness of enterprise. That’s why; it would be considered the Application of SWOT
tool in order to improve the performance of retailer. On the basis of evaluation, it has
been examined that M&S uses SWOT tool for purpose of resolving any kind of
marketing challenge. Therefore, it can support for company to find out its internal
characteristics. In recent times, it is identifying the failure and poor execution as
weakness (Bhuvanesh Kumar and Parameshwaran, 2018). Usually, M&S is focused
on the current business environment condition so that it will implement innovative
idea in business operational activities. This will help to prevent the enterprise from
reaching its potential. Moreover, it has been identified threat or risk in business but it
will be prevent by using effective strategic approach. As per analysis, it has been
already identified the toughest competitors of M&S, address threat from analysis.
Therefore, it can support for enterprise to eliminate or remove all kind of threat by
abandoning threatened activities. The use of SWOT tool in order to keep maintains
presence of market segment at current level without putting extra efforts to meet
need or requirement.
On the other hand, the application of McKinsey 7s Model refers to the tool or
platform the analyses an enterprise organisational design. In this way, retailer can
use this tool in order to identify the effectiveness and company will achieve desirable
goal or objective. There are different kinds of elements supports for identifying the
overall performance of enterprise so that it helps to understand the conceptual or
logical thing. Application of McKinsey model is to align with different model and
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contribute to different organisational processes. It allows implementing top down
approach and gaining a lot of advantage or benefits.
Appraise the importance of change management based on risk,
cost, complexity of the transformation process and sustainability
Change management can be defined as methods and process through which
company describe and imbibe change in the external and internal processes.
Developing effective change management approach is critical to success of
implementation of change within organisation (Akingbola, Rogers and Baluch, 2019).
Change management is highly important for Marks and Spencer because of several
reasons and these reasons are-
Complexity of the transformation process:
This is one of the reason because of which change management is important
for organization. Transformational processes can be complicated and they can only
be solved when a proper process is followed for implementation of transformation.
Change management involves different stages and phases and through these
phases of change management complications of transformational process can be
reduced.
Costs:
Cost is also an important reason because of which change management is
important. Change management in organization involves significant cost and when
change is not implemented properly in such situation M&S is likely to face significant
loss. In order to avoid such loss for the company, change management can help.
This means that during change management strategies are developed considering
different elements of the change and in these strategies financial aspect is given
priority. Strategies are developed in a way that change implementation can enable
organization to achieve best return on investment that they are making for
implementation of change in organization.
Risk:
Change implementation in organization involves significant risk and this risk
can be of several types such as strategic risk, resistance to change and several
other types of risk that can affect change implementation (Fernandez and Rainey,
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2017). Change management enables organization to deal with and reduce these
risks in organisation. This means that in change management employees in
organisation are firstly prepared for the change and this reduces risk of failure of
change implementation because of resistance.
Sustainability:
Sustainability is also an important element of change management
sustainability is concerned with long term success of change when it is implemented
in the organisation. Change management involves developing strategies and
implementing them so that sustainability for the organisation can be achieved with
change implementation (Grønstad, 2017). Along with this change implementation
and organisational transition also enables organisation to achieve their sustainability
goals and to effectively achieve sustainability goals change management can
facilitate overall process.
Engaging people with organisational transition:
Change management enables organisation to engage people effectively in
process of organisational change. Change management involves several processes
and practices in which people within organisation can be engaged for organisational
change. This involves training of employees and motivating them when change takes
place in organisation and engaging people in change implementation is important as
they are the one to drive change and make it successful when change has been
implemented in organisation.
Improving performance and productivity
This is also an importance of change management because when change is
being implemented in the organisation there is strong possibility that performance
and productivity will reduce. However when change is being implemented in
organisation effective change management process will enable organisation to
improve performance and productivity rather than reducing them (Karaxha, 2020).
Change management also improves working through changes in existing
organisational systems and workings.
Conclusion
Thus, it is concluded from the above report that strategic management played
an important part and element of organisational functioning. Strategic management
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enables organisation to effectively achieve its goals and objectives by ensuring that
effect all negative factors and elements can be reduced and avoided. Report
discussed about process of strategy determination in which phases involved in
determination of strategy are discussed. Followed by this different tools and models
that are used for strategic management were also discussed. Some of the important
tools and models for this involves Pestle, Swot Analysis, Porter’s Five Forces and
VRIO framework. Consideration and application of these models and tools help in
development of effective strategies for the organisation. Application of these models
to develop effective understanding was also done in this report. Lastly, report
discussed about importance of change management.
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References
Books and Journals
Karlik, A.E. and et.al., 2017, May. A model of a strategic economy management
system. In 2017 XX IEEE International Conference on Soft Computing and
Measurements (SCM) (pp. 678-680). IEEE.
Elbanna, S. and et.al., 2020. The harder firms practice strategic management, the
better they are. Strategic Change.29(5).pp.561-569.
Demir, F., 2018. A strategic management maturity model for innovation. Technology
innovation management review.8(11).
Graham, D., 2018. PESTEL factors for e-learning revisited: The 4Es of tutoring for
value added learning. E-Learning and Digital Media.15(1).pp.17-35.
Espinoza, J.M. and et.al., 2019. Extending PESTEL technique to neutrosophic
environment for decisions making in business management. Infinite Study.
Samusenko, A.S. and et.al., 2020. The Analysis of the External Environment to
Determine the Practical Focus of Applied Research and Development in the
Framework of Innovation. In Complex Systems: Innovation and
Sustainability in the Digital Age (pp. 245-255). Springer, Cham.
Akingbola, K., Rogers, S.E. and Baluch, A., 2019. Implementing change in nonprofit
organizations. In Change Management in Nonprofit Organizations (pp. 197-
221). Palgrave Macmillan, Cham.
Fernandez, S. and Rainey, H.G., 2017. Managing successful organizational change
in the public sector. In Debating public administration (pp. 7-26). Routledge.
Grønstad, A.F., 2017. Exploring work-related attributions of sickness absence during
organizational change. International Journal of Workplace Health
Management.
Karaxha, H., 2020. The Importance of implementing changes in
organizations. International Journal of Economics and Management
Systems, 5.
Bhuvanesh Kumar, M. and Parameshwaran, R., 2018. Fuzzy integrated QFD, FMEA
framework for the selection of lean tools in a manufacturing
organisation. Production Planning & Control.29(5).pp.403-417.
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