This strategic management case study focuses on Marks and Spencer (M&S), a British multinational retailer. It covers their background, methods of development, leadership style, change management, sustainability, and recommendations.
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Strategic management case study
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Table of Contents INTRODUCTION...........................................................................................................................3 Background information of M&S................................................................................................3 Methods of development used by M&S......................................................................................3 Leadership style-..........................................................................................................................6 Change management-...................................................................................................................6 Sustainability-..............................................................................................................................8 Recommendations........................................................................................................................9 CONCLUSION................................................................................................................................9 REFERENCES................................................................................................................................1
INTRODUCTION Strategic management reflects setting objectives, determination of goals, analyse the competition of the company. Basically it shows the management of resources of the company to accomplish the goals (Velikorossov, 2020).This report defines a company called Marks and Spencer, it is a British multinational retailer, trade in clothing, home products, financial services and food products. This report shows the relevant strategy implemented by M&S in their work, apart from this method of development, and various leadership styles has been defined in this report. Various change management models and their impacts on the company has elaborated in this report. Besides this, what should be the future sustainability strategies adopted by M&S has explained in this report.Apart from this numerous recommendations to the company is also consisted in the report. Background information of M&S Michael Marks and Thomas Spencer is the founder of this company, established in 1884. As it is a UK based company so its headquarter is also located in London.Marks and Spencer plc operated in the glob, it is serving millions of people from their product. The major product in which they are dealing is food, clothing, home and financial products.It is currently having approx 950 stores in London, the major stores are of food, now it has opened their food delivery services online as well. Company gives more emphasis to the quality rather than quantity, there for it has become the most liked companies by the customers. The business strategy of M&S is to provide variety and differentiation in the range of product they are offering to its customers, so that they also get something new and change in the products which they are using on daily basis, this will stop the customer to switch. M&S is emphasising cost reduction as well, they are trying to provide affordable products so that any consumer who is rich or belong to middle class can easily buy the product. As the company is selling the products under its own brand so market penetration is always been an important part of this company. The another strategy which the company has adopted to survive in the different market of different countries is merger and acquisition. To set the presence of M&S in different countries it got merged with the big name and famed companies to earn profit and create an image among people.
Methods of development used by M&S There are various strategic tools used by M&S in order to grab the objective or expand its business operations. Some of the tools includes: Ansoff matrix: This is one of the major strategic tool which could be used by M&S in order to develop strategies regarding future or helps in the expansion of the business of the company. According to this matrix there are 4 strategies which M&S can adopt while making strategic planning: Market penetration: M&S by adopting this strategy may increase the sale of its existing product in the existing market which on the one side help the company in achieving its sales objective while on the other hand this technique proves to be safe for M&S because of prior experience and knowledge of the market. Product development: M&S may adopt this strategy to launch its new product in the existing market. This means that this strategy gives advantage to M&S in terms of more expanding its existing market share through the launching of new product. Market development: If M&S wants to enter into new market through its existing products then it can adopt this strategy. This strategy helps the company to expand its business by capturing share in the new market through the sale of its existing products. Diversification: This strategy is completely different from the above three strategies which focus on launching of new product in the new market (Loredana, 2017). This strategy proves to be risky for M&S because in this strategy the market and product both are new and there are chances that the product may not been able to survive and bit the new market as expected. Porter's generic strategies: According to Porter's generic model there are broadly three main strategies which M&S can adopt in order to develop its business. These strategies are: Cost leadership:
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By adopting this strategy M&S can achieve high degree of profits because this strategy focus on lowering the cost of production by using most suitable and efficient resources. By using this strategy M&S can lower its cost of operation and thereby increase its profit percentage. Differentiation: M&S by making its products unique according to customer's attributes and wants may achieve a good position in the competitive market (Islami, Mustafa and Latkovikj, 2020). Thus, this strategy helps M&S in making the product different from other and thereby achieving good market position. Focus: This strategy helps the M&S in focussing a specific segment or group of people and thereby helps the company to achieve its objectives. The focus can either be lied on product or cost or combination of both. By following porter's generic model, M&S may easily develop its business operations because this model guides the company to either lie its focus towards cost or product and thereby helps it to grow and expand its business concerning both the aspects. Porter's five force model: This model helps the M&S in analysing the market competition and get the competitive advantages. According to this model there are five main competitive forces: Competition: (high) Marks & Spencer's market place is full some of the biggest market competition of UK because of which company has to face a high amount of competition and customer count is also affected (Martin, 2017). Potential of new entrants: (high) UK's market is full of tough competition and a new entry will increase the competition drastically because of which organizational sales will be further more reduced, thus this is high. Power of suppliers: (medium) Marks & Spencer is a well-established organization because of which company can utilize its market reputation and supplier alternatives for achieving products at low price, therefore it is low. Power of customers: (high)
UK's market is having high market competition because of which organizations have to make concentrated efforts for maintaining its customer count. Threat of substitute products: (high) In the present time customer are having high engagement in buying products through internet because of which chances of brand switching is high for the organization. Leadership style- Leadership style is the way in which organizational leaders tend to establish communication with employees and provide effective working instructions through which organizational activities are done. Marks & Spencer use Transactional leadership style at work place by which it is able to provide effective working instructions to employees by which it is able to achieve high level of work productivity. Transactional leadership style is the managerial approach of leadership at Marks & Spencer in which it tends to provide instruction to employees in such a way that it motivates them to improve their working capability through which employees are able to achieved their desired target (Maamari and Majdalani, 2017). This is an effective working process of motivatingemployeesto increase their working capability by showcasing the rewards which they can achieve by increasing their working capability and because of which this leadership style is highly effective. But also on the other hand this leadership style tends to limit employees from working beyond their comfort areas because of which employees tend to work in a specified work area and due to which it makes negative impact on organizational team working which are made in order to increase the working process. Thus Marks & Spencer must improvise its working strategy to participative leadership because it is highly effective and because of which employee's working capability can be increased (Archambault, 2019). In case of participative leadership style organizational leadership tend to include employee in the decision-making process through which leadership tends to increase employee's loyalty and involvement in the improvement of organizational activities and also achieves a different point of view for solving organizational problems. However, the final decision is taken by the leadership only because of which it is highly effective in terms of improving working capability accordingly. Change management- Organizations like Marks & Spencer has to make sure that it is able to provide products and services according to the current market trend through which it can make sure that it is able to
achieve organizational goals but this is not as easy as it is said because company may have to faceresistancefromemployeesbecauseofwhichitmusteffectivelyimplementchange managementapproachessuchthatorganizationalworkingchangescanbeeffectively implemented (Gallagher, 2019.). Following is the kotter's 8 steps model for change for Marks & Spencer. Increase urgency of change- Company has to develop a urgency of change for the employees by which it can motivate employees to improvise their working capability in such a way that company is able to achieve its organizational goals and also at the same time it can reduce the employee resistance to change. Build up growing team- Marks & Spencer can also develop organizational teams for the effective implementation of change through which it can make sure that company is able to fulfil employee requirements and through this activities Marks & Spencer can influence employees to integrate change. Develop a vision for change- Company can also showcase a clear organizational vision to employee by which it can provide a detailedexplanationabouttheadvantageswhichemployeeswillbehavingthroughthe implementation of these changes. Communication for buy-in- Marks & Spencer must also develop a proper communication channel with the employees by which it can influence employees to provide their feedbacks and suggestions through which the effectiveness of change can be increased and also by taking effective feedbacks from employees company can increase their creativity for problem solving. Empower action- Organization must also empower employees to implement changes in the work area by which it can increase work productivity of the employees through which employees can increase their engagement in developing organizational working strategy in such a way that employees are able to achieve high work productivity. Create Short term wins- Organizations like Marks & Spencer is a complete long hierarchy of chain because of which it will be very difficult to implement sudden change because of which company must use
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integrated working process in which consecutive continuous small efforts are made to increase the work productivity. Consolidating Gains- It is important for organization to maintain its efforts to increasing working process and for which it has to measure the advantage which are achieved for the implementation of change and through which it can increase the probability of achieving targeted update. Make change stick- Through the developed change company can achieve its target but has to make sure that changes made for increasing the effectiveness are long-lasting and able to provide company an advantage in long term. Sustainability- It is very important for Marks & Spencer that it tend to provide new and rare products to customer through which it can make sure that it is able to achieve organizational goal by improving customer engagement with organizational activities which will increase customer's loyalty (Goworek, H. and et.al, 2018). Thus Marks & Spencer has to implement several organizational changes in such a way that it can enhance the work productivity by which it can reduce organizational expenditures and also increase company's sustainability in the market place. Marks & Spencer has to evaluate the changing market trends and has to make sure that it is able to improvise organizational working strategy accordingly through which it can make sure that it is able to attract new and trendy customer towards the organization by which it can achieve high sales and also can increase the chances of having diversity at its work place by which it increases customer count. Thus, in order to increase the customer count company has to evaluate the current working process and has to evaluate the difference with the current market trend, then on that basis it can develop concentrated to working strategy to improve the weak areas which are making negative impact on the working process (Virah-Sawmy and et.al, 2019). Thus, this is important because in order to maintain company's sustainability in the market company has to make sure that it is having a competitive edge through which it can attract customer on that basis and can maintain its sustainability in the changing market place. Also, with that company has to increase its involvement in the implementation of technological advancements at the work areas through which it can enhance the customer's experience.
This is important because technological advancement is motivating customers to increase their engagement in online activities because of which company can improve the working process accordingly. This is beneficial for the organization because in the present time of COVID-19 travelling is limited because of which organizational sales were also affected through traditional means like in-store purchase (Adams and et.al, 2016). Due to which organizations like Marks & Spencer has to increase its engagement in online activities by which it can influence customers to make purchase from online customer touch points and utilize organizational services. Through this integrated approach of online and offline activities company can increase itssustainabilityinthemarketplaceandhasincreasedtheprobabilityofachieving organizational goals. Recommendations Afteranalysingallthe management,marketing,businessandchange management strategies of M&S it is recommended that they should make some changes in their price strategies as they are focusing on the quality which is good but for that they are taking too much expensive prices which all the people can't afford this will impact on their sale and profit margin. They should enter in such market where people are not aware about the brand such as in developing counterspies (Hitt, 2020). In developing countries they can open their stores as the rent and operating cost of the store in developing country is lees as compared to UK and London, and people will get new products so the profit of the company will get increased. Apart from this they can diversify their products as the competitors of M&S are dealing in numerous products at the same time so it has become a threat for the company, because diversity has been a big issue in front of the company, they should take quick action to overcome this, so the competitors don't take undue advantage of their issue. It is suggested to the company that they should use social media platform to encourage and promote diversity. As the market is tuning towards online, many people preferring to purchase products via online instead to going to physical stores. So it is recommended to the company to put more detailed information on their website so anyone who visit the website and get the entire information about the product.
CONCLUSION By analysing the whole report it is concluded that this report shows various relevant strategies about the company and how the particular company can use strategic tools and methods to enhance the profitability. Except this various leadership styles has been explained, by which the company can manage its resources and increase the sales by adopting correct leadership styles.Apart from this, impact of change management has been described in this report. Besides this, various sustainability strategy have been explained which will benefit the company in the near future. Except this various suggestion and recommendation has been given to company which will help them to rule the market.
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