Strategic Management of Marks and Spencer

This report discusses the strategic management of Marks and Spencer, including its background information, leadership style, management of change, future sustainability strategy, and recommendations for growth and profitability.

Report
Marks & Spencer
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1 M&S Background information.................................................................................................3
2 Method of development............................................................................................................4
3 Leadership Style.......................................................................................................................5
4 Management of Change............................................................................................................6
5 Future sustainability strategy of Marks and Spencer................................................................7
6 Recommendations.....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCE..................................................................................................................................8
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INTRODUCTION
Strategic management helps company to easily manage various external changes and take
competitive advantages through effective utilisation of opportunities. Marks and Spencer
manager have formulated different strategies to influence maximum number of customers and
earn large amount of profitability. This is report about Marks and Spencer that is operating in
UK offering products such as clothes, home appliance and personal care products and financial
services to customers. It covers about strategy management of M&S, different method that
company have use for growth and development of enterprise in competitive market. It explains
about different leadership style used by manager and leader of M&S to motivate and influence
employees to work hard. At last discuss about future sustainability and provide future
recommendation that can be used by company to expand its market share.
What about management of change?
Company through adopting various strategies has effectively managed different
changes of environment and had gain competitive advantages in retail industry. Therefore
effective strategies has helped in growth and success of M&S.
1 M&S Background information
Marks and Spencer is a British company in retail industry that operates its business across
nation to provide qualitative services and products to end user. Marks and Spencer have
established with partnership through Michael having employees 65000 and 450 stores operating
at different countries. company was one of the leading clothing retailer in 2007 with an market
share of 11.1%.
Top management of Marks and Spencer have formulated different strategies of M&S that
need to be included in brief description of company to expand its market share and gain
customer satisfaction. Such as:
1. Company continuously innovate its products and services to meet needs and demand
of customers or unsatisfied wants in order to gain competitive advantages. For
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example: M&S have recently introduced organic food products for customers that
are highly concerned about their health and wellness (M&S puts organic food back in
shops, 2019)
How does this relate to anything in your introduction ?
2. M&S have planned to use innovative technologies to reduce amount of waste
production and effective utilisation of resource so valuable products can be delivered
to end users therefore it is sustainability strategy of organisation to gain competitive
market share. Such as recycle packaging and zero base business model for safety and
security of human and natural resources (M&S Unveils revamped sustainability
strategy, Firts ever science Based target, 2019).– should be under Sustainability –
what innovative technologies ?
3. Company have increased its presence in online sites through offering products by
official websites of Marks and Spencer (Marks and Spencer, 2019). Thus, it
provides ease to customers to choose particular products and services of firm while
staying at their homes. It is strategy of marks and Spencer to increase its sales and
profitability for growth and sustainability.
i. How does this relate to anything in your introduction (report) ?
4. Company have planned to promote its products and services through digital platform
such as social media in order to attract younger generation. Therefore it has reduced
cost and increase profitability of firm through attracting various individual living in
different countries. Therefore it is strategies of M&S to expand its market share and
grow and sustain its retail industry through meeting needs of people (M&s launches
most digital marketing campaign to date: “must-haves”, 2019)
How does this relate to anything in your introduction (report) ?
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2 Method of development
Business development refers to developing of strategies and plans to have growth and
expansion of the company. It’s also helps in taking the advantages of the opportunities which are
prevailing in the market. There are many techniques and strategies to develop the plan of the
business. Marks and Spencer uses these techniques and strategies to take quality and fast
decision in achieving the goal. Once the plan and goal is defined by the company this techniques
helps in execution of the plan to achieve the target. Business development strategies provide the
way to reach to the goal of the company effectively and efficiently. Very weak.
Acquisition/merge
Marks and Spencer has acquisition (this is not an acquisition – it is an alliance ) half of
online grocery which is named as Ocado in the market. This acquisition results in formation of
new company (you need to explain this) which will offer customers a great range of products,
services, quality and value such as marks and Spencer products can be sold through OCado
websites. This collaboration will also help in growing the business faster and generating the
employment by adding of the jobs. This makes increase in the buying of scale as big volume of
the raw material is needed to supply the finished products in the market to achieve the goal
(Marks & Spencer completes acquisition of half of Ocado Retail Ltd, 2019). Company by
utilizing of large resources improves the brand label and branded goods to satisfy the customers
in the environment. Marks and Spencer checked the market of the food delivery for the first time
in the market. This helps in networking of people from the various stores which already
prevailing in the market. Ocado warehouse can be used as the storage of the products for the new
company which is made by the merging in the market. Entry of the new stakeholders will be
allowed in the company to generate the investment in the share market of the global world.
Skilled employees would be gained in the process of merge by Marks and Spencer thus helps in
effective achievement of predetermined goals. Weak – no real evidence of research here.
Another strategy that is used by Marks and Spencer to expand its business operation
across worldwide. is to effective trained and develop knowledge of employees so that can
perform their task easily. Company always give respect and recognition to employees that have
work hard for growth and success of enterprise in order to retain their satisfaction and build
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strong brand image. Therefore happy and satisfied employees of Marks and Spencer work hard
to provide qualitative services to customers for growth of enterprise in retail industry.
3 Leadership Style
Different leaderships style that are used by leaders and managers of Marks and Spencer
to motivate and retain employees within organisation for achievement of objectives. There are
various types of leadership such as Autocratic styles, participate and laissez fairer that are used
by leaders to influence different individual to work hard so that company can easily accomplish
its desired objectives.
Therefore, leaders of Marks and Spencer have followed participative or democratic leadership
styles in order to manage people and to gain maximum outcome. Leaders of Marks and Spencer
encourage views, ideas and opinion of different individual while taking particular decision in
order to create feeling of sense of belongingness. Employees feel happy and satisfied when
leader make efforts to ask their opinion in crucial decision making thus it helps in maximum
utilisation of their capabilities and skills for overall growth and success of enterprise.
Democratic leadership styles also helps M&S to build strong trust and coordination between
employees so that they can easily faced different challenges of firm and contribute towards
success of enterprise. Therefore most of the leaders and manager use participate leaders in order
to get maximum output within minimum efforts for effective achievement of goals. Another
leadership styles used by leader and manager of M&S is autocracy some of the manager take
responsibilities to make alls decision independently without consulting with employees. As they
have high experienced and knowledge in particular field at the same time provided authority to
take decision within limited time so that company can make utilisation of opportunity to earn
maximum profitability. Coaching leadership is also used by manager of M&S to influence
individual as they think some support and guidance provided to employees will helps in getting
more results or outcome (Panico, (2017) – how are allainces relevant here ?). Therefore manager
tries to understand views, ideas of each employees and provided appropriate guidance and
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support so that they can easily perform their task and contributed towards expansion of business.
It can be stated that different leadership styles used by manager helps in motivating employees of
M&S to enhance their performance so that company can gain maximum market share in retail
industry. STEVE ROWE have also used different leadership styles in order to manage people
such as democratic and coaching in order to retain employees within organisation (M&S CEO
Steve Rowe to take over leadership of retailer’s Clothing and Home business, 2019). According
to you M&S follows every leadership style – yet no mention of STEVE ROWE ?
4 Management of Change
There are various changes in external environment of business so Marks and Spencer
manager continuously monitors, supervise and identify change and formulate effective strategies
so that company can planned to expand its market share and profitability. Various method and
strategies that are used by manager of M&S in order to manage external change and helps firm in
gaining competitive can be illustrated through use of Mckinsey 7’s Model. There are 7 stages of
this model such as:
This is too general to be of any use – what is expected here is an application of the Change
kaleidoscope to M&S – see Chapter 15 set book – or last set of slides on Moodle.
Strategy: Marks and Spencer change its strategy and function as per external environment
situation so that customers can be delivered valuable products and services within limited time
frame. Top management continuously monitor performance of other competitors and existing
unsatisfied needs of customers so that various method can be used to satisfy needs and
preference of existing as well new customers (Wudhikarn, (2016) relevance ?).
Structure: Company have definite organisational structure that helps in distribution of roles,
responsibilities and task that need to be performed by particular individual. Manager of M&S
can easily adapt change by assigning different roles to particular employees within firm so that
qualitative, unique products can be delivered to customers.
System: Employees of Marks and Spencer are aware of roles and responsibilities that they need
to perform for accomplishment of particular task. Effective communication and interrelationship
between employees helps in coordination and completion of task within minimum amount of
wastage of money and time.
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Shared values: M&S have follow ethical practices for long term growth and survival of business
in market thus it helps in building strong brand image and satisfaction of customers needs
beyond their expectancy. Employees of M&S are highly motivated so they tries to put best effort
to give maximum value products to end user so that company can earn more profitability.
Styles: Different leadership styles are used by leaders of M&S to guide and influence individual
so that maximum output can be gained (Levine, Bernard, & Nagel, (2017) relevance ?).
Innovative and attractive leadership styles of leaders inspire individual to put extra efforts so that
company can gain competitive advantages.
Staff: It is one of the important resource of firm that contribute in expansion of profitability of
M&S as employees have use their skills, knowledge in order to develop new products , strategies
so that company can easily expand its market through entering into various countries of world.
Hasn’t really added anything to this report.
5 Future sustainability strategy of Marks and Spencer
Marks and Spencer have planned in advance various strategies for long term growth and
sustainability of organisation in future circumstances. Due to communication gap between brand
and customers company have planned to focus on three main areas such as wellbeing and health
and safety of customers, environment and transforming life of communities so that they can live
better live (M&S Unveils revamped sustainability strategy, Firts ever science Based target,
2019).
M&S Company have planned to start clothing recycle initiatives and to recycle 25% material till
2025. Some of the strategies that are planned by Marks and Spencer for future sustainability of
enterprise are as follows:
 One of the objectives of firm is to reduce greenhouse gas by 80% and 13.3% by cutting
emission of supply chain for protection of environment and health and safety of people.
 To use sustainable source of raw material so that no harm can be paused to end user or
manufacturer.
 Till 2025 Halve food waste
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 M&S have also decided to innovate its packaging such as mostly use renewable resource
for packaging of products and services to customers.
 To ensure that recycle material are to be used for manufacturing of most of the home and
clothing products and services of M&S.
Good – source of this information – should be referenced.
Thus, company have decided to redefined business roles by taking steps for health and safety
of people, planet and resource that are need by human to live life.
6 Recommendations
From the above analysis various recommendation and suggestion for Marks and Spencer
to enhance its market position and profitability are as follows:
 Company need to use innovative technologies such as social media, sites or
digitalisation of process (what innovative technologies ?) in order to satisfy needs
of customers as UK have large number of younger generation that like to make
purchase while staying at home. Therefore M&S through expanding its online
business can earn maximum profitability and sales volume than other companies
in retail industry.
 Leaders of M&S have to effectively satisfied needs of employees as they are one
of the most important resources. Leaders need to respect, understand employees
problem and challenges that they are facing while working so that they can be
influenced to work effectively. Leader can also use different techniques to
motivate team member in order to reduce cost and building strong brand image.
 Standard policies and products of company have impacted on brand image of
M&S so manager need to make flexible policies, organisation structure that can
be adapted as per external changes in environment so company can grow and
sustain in different market situation. Company through continuous innovating its
technology and products, marketing strategies to influence people can grow in
market for longer period of time and enjoy maximum amount of profitability.
 For development it can enter into new market through merging or joint venture
with another company that have strong brand image and resource to satisfied
customers needs.
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Do these recommendations relate to methods of development, leadership, change
management or sustainability – I don’t think so – so not really relevant to this report!
CONCLUSION
From the above report it can be concluded that M&S have use innovative strategies to
increase its profitability and market share. Company is making continuous efforts to use
innovative technology so that wants of customers can be satisfied. M&S leadership styles help in
reducing employment turnover and chance of absentee’s with firm thus promote strong brand
image in retail industry.
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REFERENCE
Book and journals
M&s launches most digital marketing campaign to date: “must-haves”, 2019, [Online].
Available Through :
<https://corporate.marksandspencer.com/media/press-releases/2018/mands-launches-
most-digital-marketing-campaign-to-date-must-haves>.
M&S Unveils revamped sustainability strategy, Firts ever science Based target, 2019, [Online].
Available Through :< https://sustainablebrands.com/read/organizational-change/m-s-
unveils-revamped-sustainability-strategy-first-ever-science-based-target>.
Marks and Spencer, 2019 [Online]. Available Through
:<https://www.marksandspencer.in/home?
utm_source=google&utm_medium=search&utm_campaign=9897984394&adgroupid=
100463569196&utm_content=437346374767&utm_term=marks%20n%20spencer
%20online&gclid=CjwKCAjw_LL2BRAkEiwAv2Y3SZY1FwDqCWPIsAeMk3_LUto
r3wHgKglJPGK0DwOZq4l11csb8rmPBRoCmhkQAvD_BwE>.
M&S puts organic food back in shops, 2019 [Online]. Available Through :<
https://www.independent.co.uk/news/ms-puts-organic-food-back-in-shops-1159307.html >.
Marks & Spencer completes acquisition of half of Ocado Retail Ltd, 2019 [Online]. Available
Through :< https://fashionunited.uk/news/business/marks-and-spencer-completes-acquisition-of-
half-of-ocado-retail-ltd/2019080544599>.
M&S CEO Steve Rowe to take over leadership of retailer’s Clothing and Home business, 2019,
[Online]. Available Through :<
https://www.proactiveinvestors.co.uk/companies/news/223771/ms-ceo-steve-rowe-to-take-over-
leadership-of-retailers-clothing-and-home-business-223771.html>.
Most of these references are not relevant to the requirements of this report!
No references to M&S, the set book or any books on module reading list
No references to media, quality newspapers, BBC news, etc.
M&S Unveils Revamped Sustainability Strategy, First-Ever Science-Based
Target
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