Strategic Management: M&S Case Study

This document provides an overview of strategic management and its impact on organizations, with a case study on Marks and Spencer (M&S). It covers M&S's background, leadership styles, change management, and sustainability efforts.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
M&S - Background Information.................................................................................................3
Methods of Development............................................................................................................5
Leadership Styles .......................................................................................................................7
Change Management...................................................................................................................8
Sustainability...............................................................................................................................9
CONCLUSION ...............................................................................................................................9
RFERENCES.................................................................................................................................10

INTRODUCTION
Strategic management is the process by which decisions and actions is leading over
making development of an organization possible with the help of effective strategies which
makes goals and objectives to be achieved. Under such management strategies impacting
decision making is been developed. These management is been used by various organizations in
order to improvise there business, service, management and makes them attain sustainability in
market. This is an continuous process which makes evaluation to be done over performance of an
organization in market. Strategic management is basically deals over strategies that helps in
making an organization grow and develop itself from all perspective. In this file Marks and
Spencer has been taken as an organization. This is an UK based retailers which deals over
clothes, daily use product and food products. It has its headquarters in London and was
established in the year 1884. Things to be covered background of M&S, porter generic model
for development method, leadership style and chain management. In the end sustainable
management has to be explained.
MAIN BODY
M&S - Background Information
Marks and Spencer Group Plc it is an British multinational retailer and has its
headquarters in London, England. The organization deals over selling of clothing, home products
and food products under its brand name. This is listed on London Stock Exchange with
constituted to the FTSE 250 Index, having previously been in the FTSE 100 Index from its
creation until 2019 (Wan and et. al., 2019). Organization was formed in the year 1884 By
Michael Marks and Thomas Spencer. M&S is having 959 stores across U.K out of which 615 is
only related to selling of food products. Also the company offers online delivery service. In the
year 1998 the organization become first British retailer for making per-tax profit which was £1
billion. On November 2009 Marc Bolland become chief executive officer by chairman Sir Stuart
Rose in early 2010 and remain chairman until January 2011. Then replaced by Robert Swannell.
Further the organization also began to sell branded good like Kellogg's Corn Flakes from
November 2008. On 18th August 2020 M&S has cut 7000 jobs for three months due the
pandemic situation. On 4th November 2020, the organization faced loss for first time in 94 years
due the pandemic of COVID-19. In six months till 26th September 2020 the company announced

pre-tax loss of £87.6m and compare profit worth £158.8m on 2019. Due to this stores makes
identification for closure that resulted into 430 worker to loss there job. From 2017-2018 various
small stores were smaller and makes identification for closure on November 2017. on 31st
January 2018 fourteen stores were closed. Stores due for closure in April included one of their
oldest presences that in the town centre of Birkenhead. Other stores were also closing within the
same month they were located in Bournemouth, Durham, Fforestfach, Putney and Redditch. Also
eight other stores has been marked for closure which were situated in Basildon, Bridlington,
Falmouth, Fareham, Keighley, Stockport and an outlet store in Denton, Greater Manchester. In
the year 2001 M&S brought changes to its payment methods and started accepting credit cards
which become very much effective and helped in earning profit with revenue generation
possible. On February 2007 M&S announced world's largest M&S shop outside UK at Dubai
Festival. Then on 2nd october 2008, M&S opened its first shop in China. Also various problems
were being faced by supply chain in starting month. M&S is always known for its advertising
(Pozdnyakova and et. al., 2017).
Marks & Spencer Product Strategy
M&S is an popular an top retail brand over the world and operates from UK. It covers
wide range of products that is for every age group. The products sold by it included blazers,
Cardigans, Cashmere, Jeans, Linen, shirt, skirt and various other products. In this luxurious
products is also been sold by the organization. Footwear including shoes, loafers and various
accessories is been used by the organization. All brand products is been sold by the organization
which makes it targeting of all class customers possible. It has been offering products for daily
use and clothes for daily use also. The strategy of selling variety of products has helped in
making development of customers base to be developed within an organization.
Marks & Spencer Price/Pricing Strategy
The strategy that has been followed by M&S is competitive pricing strategy for its
products portfolio. M&S consists of its own house brand over clothing for women, men and kids.
Costs of its products is been priced in a way that meddle class, higher class can afford premium
quality of products. It still follows competitive pricing strategy as customers upon more options
that has to be choose as increase of competition with pressure upon organization. M&S has been
facing tough competition over online retailers and other players. During festive times or seasonal
time dynamic pricing strategy is been used in order to make its stock clear.

Marks & Spencer Place & Distribution Strategy
Marks and Spencer has 1000 stores in operation within 50 plus countries. Majorly the
organization does its business in UK as it has 850 stores in the country. It has been operating in
various countries like Turkey, Spain, France, Ireland, Hungary, Finland etc. M&S has got its
own website in which customers and buy products through its online portal also. Such kind of
strategy has been making distribution of products to be done with more efficiency and
effectiveness.
Marks & Spencer Promotion & Advertising Strategy
M&S chooses marketing strategy that is adversing which has helped in developing its
name in the market of UK. This has given space for digital marketing which made online stores
to be developed. Further the organization has majorly focused upon communication that made
circulation of information possible. Then it has used print media, TV and mobile which made
marketing possible of the products sold by organization. Also its website is so well managed that
customers can get information about latest trends and fashion existing in market. Firther M&S
provides for reward system in which reward is given to customer on minimum purchase and can
be used later on to avail exciting offers with discounts (Meyer and et. al., 2017).
Methods of Development
Porter generic models is that model which is used for making applicability of product and
services within an organization or industry. This models was presented by Michael Porter in
1985. In this strategies are there like the Cost Leadership Strategy, the Differentiation Strategy
and the Focus Strategy. Further the analysis has been done upon Marks and Spencer as follows:
The Cost Leadership Strategy
In this strategy of porter generic model helps in attaining competitive advantage in market. As
per the strategy main focus is upon gaining higher sales to an organization like Marks and
Spencer. There are two main impact of cost leadership strategy upon Markers and Spencer and
they are as follows:
 It increases profit by making reduction in cost possible by charging average price over
products.
 Also through this market share increases through lower price which makes profit over
sales increase with revenue generation.

Organization like Marks and Spencer required to be develop stability in its process before
applying cost leadership route. For this purpose M&S should develop certain things in it that are
as follows:
 Access to the capital needed to invest in technology that will bring costs down.
 Very efficient logistics.
 A low-cost base and a way of sustainably cutting costs below those of other competitors.
The Differentiation Strategy
This strategy makes product and service of an organization like Marks and Spencer to get
different from its competitors. It is mainly focused over the nature within which product and
services is given. Various factors like features, functionality, durability, support, and also brand
image that your customers value. In order to apply this strategy an organization like M&S is
required to:
 Perform better and effective research by involving innovation within it (Makadok, Burton
and Barney, 2018).
 Also should make high-quality product or services to be develop.
 Then marketing and efficient sales is to be used over making market to understand about
benefits existing within it.
In this an organization like M&S should pursue innovation in order to make new product
to be developed in more efficient manner. If its is not used by M&S then its competitors will
impact the sales and customer base in negative manner.
The Focus Strategy
Organization using Focus strategies is based over contact over particular market and
making it to be analysed in proper manner. This makes needs of customers to be identified in
particular manner which makes dynamics of market understood by management of an
organization like M&S. In order to use this strategy it is very important to make factors of
market to be analysed which makes establishment of organization like M&S possible within
market. Market should not be analysed only form one side all aspects of it should be analysed

which makes over all condition to be understood in market. This strategy helps in bringing
innovation within different process that makes goals and objectives to be achioeved that has been
set by an organization like M&S.
Leadership Styles
Autocratic Style
In this kind of leadership style only the leader order which can be understood by the word
“Do as I say”. In autocratic leaders is of the opinion that leader is only the smartest person and is
more intelligent than its employees. They are only required to take all the decision that makes a n
organization. Such leadership style is going to impact an organization like M&S in a way that
under emergency situation quick decision making is possible which leads over making an
organization cover emergency situation.
Authoritative Style
As per such leadership style an leader of an organization is required to develop vision and
makes employees run upon it. This is to be understood by phrase "Follow me." Such leadership
style helps in developing of confidence within leaders that eventually makes positivity to be
developed within employees of an organization. Leaders of M&S if uses this kind of leadership
then productivity of employee is going to be enhanced. Also confidence within employees
develop which makes vision of the organization like M&s to be achieved in more effective
manner. Further due to this only coordination with feeling of togetherness is developed within
an organization like M&S 's employees (Hitt and Duane Ireland, 2017).
Pacesetting Style
This leadership style is based over an phrase "Do as I do!" which makes all employees
follow only the procedure that has been given by leaders. In this kind of leadership the leaders of
M&S should given commands to employees and worker that makes proper development of as
framework which makes process to be completed in easy and effective manner.
Democratic Style
Democratic style of leadership is based upon making sharing of information within the
employees possible. This helps in developing of decision making mechanism in an organization
like M&S which makes decision taking process to be smooth and responsibility to be completed
in appropriate manner regarding task in an organization.

Change Management
To improve management within an organization like M&S can take place with the help of
the management model that has been explained as follows:
Kotter’s Change Management Model
Kotter's change in management theory is one of the most popular theory that is been
adopted within an organization. As per the model there are eight stages mentioned and is mainly
focused over employees response to change.
 Increase urgency: This deals with creation of emergency within employees which makes
motivation to be done within employees which makes engaging of employees within
process possible in more effective manner.
 Build the team: In this there is determination of right skills with personality which makes
development of changes to be developed within an organization. The main focus is upon
team formation that is possible through skills and appropriateness to be developed in
employees (Cosenz and Noto, 2016).
 Get the vision correct: In this various kinds of strategy has to be developed for making
employees with creativity , emotions and projects objectives achieved. This makes
development of vision with innovation possible.
 Communicate: This makes transparency and frequency to be be developed within an
organization that makes changes to be applied within various process. This is makes
employees to develop relationship with employer.
 Get things moving: As per this step feedback is collected which makes constructiveness
to be developed in more impactful manner. This make all process and task to be
completed in effective manner.
 Focus on short term goals: In this main focus is upon end result of the project that has to
be produced. In this small goals is recognized which makes small achievements over
various process that makes moral of employee to be boosted.
 Incorporate change: In this reinforcing and making changes within working culture
possible. This makes employee to adjust and discipline to be maintained.

 Don’t give up: Changes is been made overnight and obstacles is also taken care. This
makes process of change in management by making things to be developed in appropriate
manner possible.
In this Kotter's change management model applied in an organization like M&S makes its
over all progress to be attained in more effective manner. Also the model makes company to
develop innovation within its process which helps in making growth to be attained with goals
and objectives to be achieved (Bettis and et. al., 2016).
Sustainability
Sustainable development that kind of development which makes competitive edge to be
attained within market. For an organization like M&S sustainability can be attained through
making innovation within its products and services that makes enhancement of sales possible
with higher revenue to be generated.
CONCLUSION
From the above file it can be concluded that strategic management is the process by
which an organization is able to develop various strategies that makes sustainability to be
developed within an organization. Further in this file background of the organization is covered
with strategies used in various sector by it. Also leadership style has been explained and
management model has been explained. In the end sustainability in relation to organization has
been explained.

RFERENCES
Books and journals
Bettis, R.A and et. al., 2016. Creating repeatable cumulative knowledge in strategic management.
Cosenz, F. and Noto, G., 2016. Applying system dynamics modelling to strategic management: a
literature review. Systems Research and Behavioral Science. 33(6). pp.703-741.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal. 39(6). pp.1530-1545.
Meyer, G.D and et. al., 2017. The entrepreneurship‐strategic management interface. Strategic
entrepreneurship: Creating a new mindset. pp.17-44.
Pozdnyakova, U.A and et. al., 2017. Strategic management of clustering policy during provision
of sustainable development. In Integration and Clustering for Sustainable Economic
Growth (pp. 413-421). Springer, Cham.
Wan, W.M.K.F.B and et. al., 2019. Strategic management in fatwa-making process. Academy of
Strategic Management Journal. 18(4). pp.1-6.