Strategic Management in Marks and Spenser

This document discusses the strategic management practices, leadership styles, and methods of development in Marks and Spenser. It also explores the future sustainability strategy of the company, including its CSR initiatives. The document provides insights into the company's background, leadership style, change management model, and future plans.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background..................................................................................................................................3
Strategic tools to analysis Methods of development....................................................................4
Leadership style of M&S.............................................................................................................5
Change management model taken under use by marks and Spencers is kootters model of
change..........................................................................................................................................6
Future sustainability strategy of Marks and Spenser...................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management includes planning, assessment, monitoring and analysis for all the
required necessity an organization needs to full fill the objectives and goals of the organization.
Strategic management helps the company in making strategies for the future and achieving the
goals and objectives of the company.
Marks and Spencers is public limited company. It was established in the year 1884. It was
founded by Michael marks and Thomas Spenser. Its headquarter are in London, England and
UK. Key people of Marks and Spenser are Stewe Rowe (Chief Executive) and Archie Norman
(Chairman). The company produces various products like, clothes, home products and food
products and also beverages. Products of Marks and Spenser are available online. The company
is listed in London Stock Exchange. Number of locations of Marks and Spenser is 1463. Marks
and Spenser has 959 stores across the U.K. Total number of employees working in Marks and
Spenser is 80,000. Revenue of the company for the year 2020 is £10,181.9 million. Net income
of the company is £27.4 million. Present report will cover the relevant strategic tools used by
Marks and Spencer. Leadership style used by the company. Transactional, transformational and
situational leadership is also discussed. Method of development is also discussed in this report.
Marks and Spenser will close 100 stores by 2022. More than 100 stores can also be closed. Due
to coronavirus pandemic Marks and Spenser has decided to cut 7000 jobs in the next three
months. This statement was of August 18, 2020.
MAIN BODY
Leadership styles
There are different type of leadership strategy that can be used for motivating the
employees to achieve the goal of the company. Different leadership styles are, democratic,
autocratic, coach style, transformational, strategic, bureaucratic, transactional leadership. Mostly
all the companies prefer transactional leadership strategy as the purpose of this strategy is to get
good results. In this leadership strategy all the work is done with proper planning.
Marks and Spencers is using a transactional leadership strategy in which the company
uses different methods of motivating the employs by rewarding them in certain ways and
punishment is also given when not fulfilling the company requirement and goals. Marks and
Spencers has always found a way to keep the CSR improved. The company manages to take

responsibility of the local communities, employees, customers and suppliers by taking in use of
the available resources and fulfilling their requirements. Company also focuses on the
environmental as well as ethical factors with the help of ethical trading and less use of the
materials which are harmful for the environment(Mamatova, and Pavliuk, 2020). M&S also manges
to do the social work in excellent way by donating to the different charitable organization. M&S
also donates food in their local community to the needy.
M&S effectively manages its waste management system by using the product material which in
future can be recycled.
Methods of development
Method of development means what methods the company is already using and what are
the new changes that are required. Organic growth( or internal) growth refers to the expansion of
the business. Expansion can be like expansion of product range, number of locations are
increased, making new products etc. Organic growth includes many strategies like, expanding
the business opening new branches in the market or opening new stores in different places.
Launching new products in domestic market as well as international market. Investing in
new technology to make new products to attract customers. Some benefits of organic
development are: it involves less risk than external growth. Finance can be arranged from
internal funds of the company. This organic development help in building reputation in the
market and also help in attracting new customers. It also helps in retaining the existing
customers.
It allows the company to increase its profit by increasing its sales. When a company
expands its business there are positive impact as well as negative impact. Negative impact of
organic development are, the growth which is achieved by the company can be the overall
market growth. If company produces new product then may be customers do not like the product
and demand for the product is less than compare to other companies. As marks and Spenser is
also expanding its business by opening new stores in India. Indian customers are more buying
products from marks and Spenser. So, to increase the revenue of the company, products of Marks
and Spenser are available online. Company is expanding its distribution channel to cover wide
area. Marks and Spenser is planning to develop new product in the market. The strategies of
Marks and Spenser is unique and the company maintain its position in the market.

So, these are some ways which help in developing new strategies and expansion of the
company. Marks and Spenser is also making changes as competition is increasing in the market.
To maintain its position company need to improve its strategies.
Steve Rowe and Archie Norman are planning to expand the business by producing different
products. They are developing their business by providing new products, changes in packaging,
exporting products to different countries, changes in distribution channel, creating new market
segments, making new pricing policies so that more customers get attracted. Doing innovation in
the products and also make good strategy for promotion of the products. Marks and Spenser is
also planning to enhance online product. More products of the company will be available online.
Company will close its 100 stores and focusing on attracting new customers. India has become
more important for Marks and Spenser as the company has its stores in 30 cities in India. The
objective of Marks and Spenser is to increase its online sales.
Strategic alliance
Marks and Spenser and Ocado group share joint ownership in August 2020. Both the
companies are having 50:50 share in the joint venture. M&S agrees at £750 million deal to own
half of Ocado's retail business. Marks and Spenser launched its products on the website.
Leadership style of M&S
Transactional leadership style is used in Marks and Spencer. The main objective of
transactional leadership is to focus on task and according to that rewards and punishments should
be decided. It is one of the leadership style which focuses on performance of individual.
Punishments and rewards are given so that employees can be motivated. The leader has the right
to give punishment to employees who did not perform well or not achieve the goal. In Marks and
Spencer employees get command from one leader only so their will be no confusion. It is helpful
in achieving short term goals of the company(Bryson, and George, 2020). It helps in maintaining
proper rules and regulations of the company.

This leadership style helps in motivating employees by giving them rewards when they
perform up to the standard. All the employees of this company are given individual task and their
performance is measure accordingly. Transactional leadership style focuses on how to improve
individual performance and also focuses on reducing cost. This leadership style is simple to
implement and also helps in improving performance of individual and doesn't require any
training. There are some disadvantages of transactional leadership as this style is strict and
follow rules and regulations which cannot be break. If anyone from the Marks and Spencer
refuse to follow rules and regulations he/she can be terminated from the company. In this
leadership style all the responsibility is given to the leader and the leader delegate the work to his
team members, if leader left the company then his team members did not know what work they
have to do, team members are only following their leader and depend on their leader for every
work.
There are other ways by which workers feel motivated, rewards are not everything by
which workers feel motivated(Hunger, 2020). Transactional leadership focus on the outcome or
result of individual not behaviour of individual. In Marks and Spencer Directions are given to
workers, and they have to do work according to the directions given, for this leader should have
proper knowledge and experience so that he can give proper directions to his team members and
achieve their target. This is good style for Marks and Spencer as outcomes are important. In
Marks and Spencer transactional leadership style is used so that company's goal can be achieved
and also helps in measuring performance of individual. With the help of this leadership style
company may know that which person require training and whose efficiency is low.
Transformational leadership: This leadership style helps the leader in identifying the change
which is needed. It helps in enhancing the motivation of the employees, improves performance
of the employees and boost morale of employees so that they can achieve organizational goals
and objectives. Transformational leaders are having the ability to adjust in various situations.
Situational leadership: This leadership style is adaptive and flexible style. Leaders should have
the ability to meet the different needs of the organization. Leaders should know how to find
solutions of problems like if the sales is decreasing then how leaders will deal with this problem
and find way to increase sales.

Change management model taken under use by marks and Spencers is kootters model of change
Kotters change model used by marks and Spencers to develop better organization culture
includes of various stages which are as follows :
Create urgency : The threats M&S currently facing in the industry like relative
competition in the market with the same products in different prices and different product
material offered by different companies.
Form powerful alliances within organization : This will include key people of M&S to
further proceed and form alliance within the organization to better perform and uplift the
company by changing its processing and production power.
Change management model
Kaleidoscope Model
The Change Kaleidoscope was developed by Balogun and Hope composes of the inner
and outer ring. The outer ring of the circle indicate the organizational features like Time,
preservation, capacity , scope, diversity, power, capability, capacity and readiness, while inner
provides implementation choices ad design for the change.
Inner features
Time
It is necessary for the Steve to decide time of change of period when the change will be
implemented within the organization.
Scope
The degree of change which can be separated into realignment and transformation. It
means that every people within the M&S should be aware of the change, so they can give their
support.
Preservation
Their are some assets, practices or the characteristics which needed to be retained by the
Steve during the implementation of change.
Diversity

The level of the group among employees and divisions who will be affected by the
change, leaders of the company should communicate with them to gain their trust and motivate
them.
Capability
It is necessary for the Steve as a leader of the organization to have leadership skills to
implement the change successfully.
Capacity
It is necessary for the leaders to see their capacity to implement change because change
can need huge capital requirement. M&S financial resources are strong, so they can easily
control their capacity ad implement change.
Readiness
Leader Steve is responsible to aware people about change awareness and readiness to get
support from the employees the change.
Design or implementing choices
Change path
Change can be characterized by the M&S in 4 types Evolution, Revolution, Adaption and
Reconstruction.
Change start point
The change start point indicate to the company that where the change is initiate and it
can be decided into 4 approaches by the leaders of M&S, Top Down Change, Bottom changes,
Pockets of the good practices and Pilot sites.
Change style
Their are five style that can be used by M&S to implement change- Eduction and
deletion, collaboration, participation, direction and coercion.
Change target
there are 3 type of change target that are value, behaviour, output and values.
Change levers
The level of levers and intervention needed for organization change.
Suggestion
leadership plays most important part within the changes and during the change Steve
uses the Situational leadership style and Archie Norman use situation. Both leaderships are

effective during the change and Steve can also use the situation leadership style because this kind
of leadership can be used in each and every situation.
Future sustainability strategy of Marks and Spenser
Marks and Spenser will adopt CSR as its future sustainability strategy. The term CSR
refers to corporate social responsibilities(Mikhno, ., Koval, . and Ternavskyi, 2020). It is a type of
businesses self-regulation with the aim of being socially accountable there are mainly four type
of corporate social responsibilities which marks and Spenser is following which are as follows :
 Environmental efforts — it is one of the major focus of CSR which means less harm to
the environment in terms of less carbon foot prints in the organization, low material
waste being produced in the environment, less harmful carbons being produces in the
environment and production would be in such a way of marks and Spencers that the
goods and service being produced could be recycled. Marks and Spencers has created
different programs for the protection of forests and the environment(Tumidei, ., Alexiou, and
Bourne,., 2020).
 Philanthropy — Marks and Spencers works excellent in this segment under philanthropy
the company practices its social responsibility by performing certain activities like
donation of money for the social causes giving charity to the NGO. Supporting local
communities and there local functions. Performing of voluntary activities at different
places.
 Ethical labour practices — The term includes of equal human rights and treating
employee ethically and fairly. Adequate policies for all the employees in the organization
are to be applied for the better and equal working culture in Marks and Spencers. No such
discrimination among the employees should be there. Women empowerment is to be
promoted in the organization so that there should be new leaders as women in Marks and
Spencers(Adeniran,, Jadah, . and Mohammed, 2020).
 Volunteering — volunteering in local causes are to be done by marks and Spencers,
supporting local causes and events and performing volunteering activities at different
places makes a good CSR for marks and Spencers. By performing such volunteering
activities it connects the company to the people. Volunteering allows the company to

connect with the local communities. It increases the social responsibility towards the
public welfare.
PLAN- A
Marks and Spenser launched its Plan-A which includes reduce wastage of resources, sustainable
raw materials will be used, trade ethically. It also helps customers to live healthy and safe
lifestyle. According to Marks and Spenser fair prices should be paid to suppliers, local
communities and ensure good working conditions. In Plan-A 2020 Marks and Spenser launch
100 new and revised commitments. The company is finding new ways of how to reduce the use
of plastic. The company is using 100% cotton from the sustainable sources. The company is
using less water and fertiliser. Marks and Spenser is providing better livelihoods to the
smallholders. The objective of the company is to protect the environment by reducing the use of
plastic. Marks and Spenser is also contributing to corporate social responsibility. The company is
contributing some part of its profit for social responsibilities. In this company is taking initiatives
to develop the society and this helps in building reputation. This helps in attracting customers.
CONCLUSION
From the above study it can be concluded that the company has improved its corporate
social responsibilities by applying new rules which includes of less use of materials which easily
pollute the environment and strategies tools to analysis the method of development by applying
porters five forces to reduce the wastage of material and increase in growth. The above study
also includes leadership style of marks and Spencers. Transactional leadership style is being used
in which the employees are being rewarded to promote good and healthy work and are being
punished if work not done in proper manner at Marks and Spencer. Company also uses the
change model which is kotters model of change in which the company uses this model to accept
the change as success. Future substantiality of the company is defines as the CSR in which the

environmental, ethical, volunteering and ethical labour practices are to be considered. In this
report methods of development is discussed which includes organic development. It means that
company need to expand its product, locations and stores. Marks and Spenser is planning to
expand its business by opening new stores and in different locations. The company is also
planning to open its stores in India as it is main source of earning revenue. Steve Rowe and
Archie Norman are planning to change the packing of the products to attract new customers and
retain the existing customers. Marks and Spenser and Ocado retail is sharing joint ownership
from the year 2020. Transformational leadership and situational leadership is also described in
the report. Transformational leadership helps the leaders in motivating employee and boosting
the morale of the employee. Plan -A of Marks and Spenser is also discussed. Plan -A includes
new and innovative ways to reduce waste of resources and also reduce the use of plastic.

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