This document provides an overview of strategic management in Mark & Spencer. It discusses the methods of development, leadership style, change management, and sustainability initiatives in the company. The document also highlights the strategies implemented by the company and the leadership styles of Steve Rowe and Archie Norman.
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Strategic Management
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Table of Contents INTRODUCTION...........................................................................................................................3 Methods of development.................................................................................................................3 Leadership style...............................................................................................................................4 Change Management.......................................................................................................................5 Sustainability...................................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Mark & Spenser was founded in 1884 by Michel marks and Thomas Spencer.Marks and Spencer Group plc (commonly abbreviated as M&S) is a major British international retailer with central office inLondon, England, that specializes in selling clothing, home products and food commodity, mostly of its own brand name (Durand, Grant and Madsen., 2017). Mark & Spencer is one of the UK major retailers and around 21 million customer visiting our stores every week. They sell high quality & great value of clothes along with home products and outstanding quality food. There are over 76000 employee working under M&S along with 2000 suppliers over world and also have grown its business on territories overseas. The vision of mark and Spencer is “To be the standard against which all others are measured” and the mission is to make inspirational quality accessible to others.The values of Mark & Spencer is to provide good quality and services by introducing new thing. The latest report ODF the mark & Spencer that it will launch sausage dog called walter in coming month which will help them in growing their business. At the time of Christmas they have launched chip shop scarps and shopping scheme returns after corona virus hiatus and also have shown how their stores can be saved are also deciding to cut 7000 jobs and at the end of 2025 it will close its 2000 stores around the world and will do that business on digital marketing strategy. Number of employees – 80,000 revenue- 10.180 Number of stores-10,181.9 million pound (2020) Number of countries- 50 countries Methods of development There are various methods used by the Marks & Spencer within their organization that helps them to grow their business. There are various development done by Steve Rows that help the pompano to take competitive advantages within the market where they are operating their business (Dvorský., and et.al., 2020). Company implemented the new technology within their workplace that helps to increase their product and provide better quality in their clothing product. New technology within the workplace of Marks & Spencer has increase the production but also a
make the easy for their employees in their work. Marks & Spencer also use the new product strategy where they introduce new product in the woman wear that helps them to grow their business. They come up with the new product segments and various new designs that helps to attract the customers and increase their brand value as well. Marks & Spencer also has expanded their business in the various new markets like Vietnam, Indonesia etc. this strategy helps to improve the presence of Marks & Spencer. Strategy is what drives decisions in business. By helping organisations identify their strengths and weaknesses, an effective strategy will help you decide where your efforts and resources are best spent. These decisions are crucial in ensuring your business has a profitable and sustainable future (Teece., 2019). It is necessary for theMarks & Spencer implements the strategies and their CEO Steve top make strategies to increase their sales and develop new develop product, so they can take competitive advantages, and they can show their presence within the market where they are operating their business. Without having the strategies they cannot accomplish success in their business. Company should always have vision and mission so employees can understand that what they need to achieve and leaders should guide through the mission and vision that how they will go to achieve the success within their business make their company success within the market where they are operating their business.The leadership style help in making people work with better focus and it helped M&S to achieve good success. They are focusing into the growth of the organization which can make the business more successful. Organic development Marks & Spencer has developed their organic food department where they come up with the new polices to t provide quality food to their customers. They have set the limited store time to provide fresh organic food and most of the customers attract toward theMarks & Spencer because they provide Organic and fresh food. Store closers-company have recently decided to close their 20000 stores all over the world and reason behind closing This is to increase the profits by decrease their liabilities. Store that does not make profits for the company will be closed by the M&S. Operating new stores To expand their business more countries, company will look for the developing countries within the market like Indonesia, chain etc. where they have good opportunities to expand their business.
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Leadership style Leaders are most important part of the company, and they are responsible to lead employeestowardtheirsuccess.Withouthavingskillswithintheleaders,theycannot successfully lead their employees, so they should implement new leadership. There are various leadership style like democratic leadership, transformational leaders, situation leadership and all can be applied as per the situation within the workplace of Marks & Spencer. Leaders of the Marks & Spencer are having skills and Steve is using the transformational lectureship to leader their employees and helping company to get success within their business. Steve Rowe Steve Rowe is one of the most dominant personality and is always focused in working for differentthings(TrigeorgisandReuer.,2017).Steveusestheleadershipstyleofthe transformational in which they focus in making differenttransformationof the work and make every person with quality work. It is helpful and Steve wants M&S to become top brand of the world. Steve wants good in the work and always want to make others work hard so that they can achieve the best result into the business. The leadership style help in motivating the employee and it also shows them a great initiative from the CEO to motivate in improved performance. Transformational leadership Transformational leadership is the theory or the leadership style where leaders work with the teams create vision and identify the need of changes. Thorough the vision they guide employees toward the change by inspiring them and execute the change in tandem with committing to the team members . Archie Norman Archie Norman is a British politician and the businessman and person that has been Chairman of the FTSE 100 and Member of the House of Commons at same time. It joined the McKinsey on the graduation. Afterwards directorship at the Guest & Railtrack before becoming the group financial director at the largest retailer of Britain Kingfisher plc. It became the Chief executive of the Asda and chairman by the age of 42. The leadership of Archie Norman is highly influential.Situational leadership stylewas used for managing the business operations. It inspired the team members for working effectively and efficiently with themselves. Mark's &
Spencer also use the new product strategy where they introduce new product in the woman wear that helps them to grow their business. They comp up with the new product segments and various new designs that helps to attract the customers and increase their brand value as well. Mark's & Spencer also has expanded their business in the various new markets like Vietnam, Indonesia etc. this strategy helps to improve the presence of Mark's & Spencer. Situational Situational leadership style is one of the most difficult to adopt but most useful leadership style where leaders change their leadership according to the situation within the company. To adopt situational leadership, it is necessary for the leaders to have knowledge all other leadership style. Change Management Change management is a process that involves planning and implementing change within organisation while ensuring that everyone within organisation is ready for the change being implemented. Steve Rowe as became CEO of M&S he had to face several types of challenges (Jayatilleke and Lai, 2018) and these problems required different types of solutions and their solutions included change within industry. Change Kaleidoscope This is a model that helps in arranging different elements and coordinating different elements of change. This involves organisational change context and design choices for change. Organisational change context includes- Time- This is concerned with time that is required to accomplish change. Changes that were implemented in M&S were of long duration because changes involved four stages. This means that Steve Rowe presented four step transformation plan in which first two years that is 2018- 2019 were for restoring basics and changes will be followed by this. Scope- This is concerned with degree of change and degree of change in M&S transformation is high because organisation has and is planning to significantly transformed its different elements.
Preservation-Thisisconcernedwithretentionoforganisationalassets,practicesand characteristics during change. Transformation and change in M&S aims at retaining its financial assetsandinadditiontothischangedoesnotinvolveanythingthatrequireschanging organisational practices and characteristics of M&S. Diversity-This is concerned with difference in group of employees and divisions and change affecting diversity in terms of attitude, values and norms (Resnick and et.al., 2018). Because the changes in M&S are of operational nature in which change do not affect diversity in terms of attitude, values and norms. Capability- This is concerned with organisational competency in terms of skills of managers and personal knowledge and ability. M&S has adequate and effective managerial capability and ability to successfully implement change. Capacity-This is concerned with organisational resources including cash, human resources and time. M&S has sufficient resources of all types through which it can successfully implement change in organisation. Readiness-This is concerned with readiness of employees for adaptation and implemtation of change in organisation.Employees are being trained and developed in order to ensure their readiness for change implementation. Power-In this element power is included for initiating change. Change in M&S has been initiated by Steve Rowe who is CEO of M&S and this is why he has strong power to initiate change. Design/Implementation Choice Change Path- Path of change that M&S is implementing can be considered is Adaptation. In which M&S is adopting strategies and transformation through adaptation (Haggblade and et.al., 2017). Change Start point- Change in M&S has been initiated from Top Management.
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Change Style- Changes style that should be adopted by M&S is collaborative which includes high involvement of employees and style that is used by Steve Rowe and Archie Norman is direction style of change leadership because all important decisions are taken by them. This style is also effective because changes being implemented are new and realigning and participation and control by leader facilitates effective implementation of changes. Sustainability M&S has strong emphasis on sustainability in different types and organisation has developed Plan A to help sustainability in organisation. For sustainability M&S have considered different elements that are directly or indirectly linked with business operations of M&S. Ethically made and trusted value- This is one of the approach of M&S in which they focus on creating sustainable fashion (ETHICALLY MADE, TRUSTED VALUE, 2020). In this approach organisations aims at sourcing with care so that nothing waste and they are also working on making difference in supply chain. Protecting our forests- This is concerned with protecting forests and in this approach of sustainability M&S is working on eliminating deforestation from the production of palm oil, soy, meat and wood in M&S products. In this approach of sustainability M&S have achieved 100% of palm oil certified responsibly sourced by the Roundtable on sustainable Palm Oil. In addition to this M&S is also focusing on 100% soy sourced using Round Table for responsibly soy credits and also focusing on 100% responsibly sourced wood and paper. Plastic Plan- This is another approach for sustainability that has been adopted by M&S in their plan A. M&S is working on identifying new and innovative ways through which they can reduce use of plastic in M&S and they are also working helping customers to reuse and recycle plastic (OUR PLASTICS PLAN, 2020). In this approach they have teamed up with some of the NGOs, industry partnersand governmentto support improvementin UK’s waste collectionand recycling system. From Field to Fork- Farming Standards-In this approach M&S ensures thatbest food in M&S comes from best farmers. This includes those who are dedicated towards quality and those
who take care of their land and their animal. In this M&S considers it very important to have knowledge regarding farmers and producers of food. This is because good food starts with farmers and they play very important role in ensuring high quality of food. In addition to this M&S also ensure that they select farm and farmers meet their high standards for safety and quality of food, animal welfare and environment protection. Food waste approach- This is concerned with approach of organisation for sustainability regarding food waste. In this approach they are working on providing quality, fresh food and in have set targets to manage food waste across M&S from suppliers to customers. In this approach none of the food goes to waste in bin and is sent to create energy to power homes and businesses (OUR FOOD WASTE APPROACH, 2018). M&S is also working in halve food waste and working on ensuring that 100% of edible surplus food finds its way to dinner plate. In this organisation is working on testing new ways to recover food that nearing end-of-life and encourage customers to buy food on its last day at reduced price. In this approach M&S is also working local community to donate surplus food to ensure it ends up in person’s plate and does not get wasted. CONCLUSION On the basis of above discussion, it can be concluded that M&S have adopted effective strategies for development for both internal as well as external development of M&S. Later reportdiscussedleadershipstyleofleadersinM&Sandleadershipstyleinvolves transformational leadership style. This is because transformational leadership style is very important while organisation is going through change and transformation. Later report involved discussion regarding change management that contextualised Change Kaleidoscope. Followed by sustainability was discussed and this involved discussion regarding different approaches adopted by M&S for its sustainable future. M&S has developed a plan that is Plan A for sustainability. On the basis of recommendation it can be recommended that M&S should emphasis more on internal development. This means that on the basis of case study and change adopted by Steve Rowe mainly focuses on operational aspect and focus on development of employees and their involvement have not been considered in development and transformation (Hussain and et.al.,
2018). This requires that employees should also be involved as an important element of organisation and transformation of M&S. In addition to this it is also recommended that M&S increase its focus towards declining sales and revenue because along with change and transformation in organisation for future growth, immediate actions and strategies for increasing sales and revenue are also important for M&S. Increasing sales will also help M&S to increase pace of its internal growth aligned with external growth. Concerned with external growth M&S can also consider merger and acquisition with different businesses like Ocado in food retail.
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REFERENCES Books and Journals Durand, R., Grant, R. M. and Madsen, T. L., 2017. The expanding domain of strategic managementresearchandthequestforintegration.StrategicManagement Journal.38(1). pp.4-16. Dvorský,J.,andet.al.,2020.Selectedaspectsofstrategicmanagementintheservice sector.Journal of Tourism and Services.11(20). pp.109-123. Haggblade,Sandet.al.,2017.Whatdrivespolicychange?Evidencefromsixempirical applications of the Kaleidoscope Model(No. 1878-2017-2512). Hussain, S.T and et.al., 2018. Kurt Lewin's change model: A critical review of the role of leadership and employee involvement in organizational change.Journal of Innovation & Knowledge.3(3). pp.123-127. Jayatilleke,S.andLai,R.,2018.Asystematicreviewofrequirementschange management.Information and Software Technology.93. pp.163-185. Resnick, D and et.al., 2018. The Kaleidoscope Model of policy change: Applications to food security policy in Zambia.World Development.109. pp.101-120. Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management perspective.New Zealand Economic Papers.53(1). pp.1-43. Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management.Strategic management journal.38(1). pp.42-63. Online OURPLASTICSPLAN.2020.[Online].AvailableThrough:< https://corporate.marksandspencer.com/sustainability/quick-reads/our-plastics-plan>. OURFOODWASTEAPPROACH.2018.[Online].AvailableThrough: <https://corporate.marksandspencer.com/sustainability/quick-reads/our-food-waste- approach>. ETHICALLYMADE,TRUSTEDVALUE.2020.[Online].AvailableThrough: <https://corporate.marksandspencer.com/sustainability/quick-reads/ethically-made- trusted-value>.