Strategic Management of M&S: Methods, Leadership, Change, and Sustainability

This report explores the strategic management of M&S, including methods of development, leadership style, change management, and sustainability practices. It provides an overview of M&S's background, financial performance, and the leadership styles of Steve Rowe and Archie Norman. The report also discusses the internal and external methods of development implemented by M&S, along with its sustainability initiatives.

STRATEGIC
MANAGEMENT

Table of Contents
1. M&S - Background Information.................................................................................................3
2. Methods of Development............................................................................................................3
3. Leadership Style..........................................................................................................................4
4. Change Management...................................................................................................................6
5. Sustainability...............................................................................................................................8
6. Conclusion and Future Recommendations..................................................................................9
REFERENCES..............................................................................................................................11

1. M&S - Background Information
M&S operates in 62 countries and has its operations at 1519 location and 44 websites
globally (WELCOME TO M&S, 2021). In these numbers of stores around 959 stores are located
in UK in which 615 stores only sell food products. M&S has its major business in selling
clothing, home products and food products and among these most of the products are of its own
brand. As of 2020 M&S has employs 78000 employees. Concerned with financial performance
of M&S as of 2020 group revenue of M&S was £10.2bn (-1.9%), group profit before tax was
£67.2m (-20.2%) and profit before tax and adjusting items is £403.1m (-21.2%) (OUR YEAR IN
REVIEW 2020, 2021). Financial performance of M&S has greatly affected because of Covid-19
pandemic and this has cause significant reduction in profit of M&S in 2020. Presently Chairman
of M&S is Archie Norman and Steve Rowe is Chief Executive Officer of the organisation who
became got appointed as CEO of M&S in 2016. This report will discuss about strategic
management of M&S and discussion includes identifying methods of development. Methods of
development includes different ways in which organisation develops internally as well as
externally. Because as a CEO Steve Rowe faced different difficulties in M&S and its reducing
revenue and profit required to make some changes and take steps for further development of
M&S and these steps will be discussed in this report. Report will also discuss about style of
leadership that has been adopted and is practices by Steve Rowe and Archie Norman and change
management within M&S and lastly report will discuss sustainability.
2. Methods of Development
Steve Rowe undertook several steps for development of M&S when he became CEO of
M&S and in their development plans they included cutting down 525 jobs at London head office
and moved further 400 roles outside capital city to cheaper location.
Development plan also included closing of stores and their location and also conversion. In this
25 percent full-line stores of M&S were marked for closure. In these stores some of the stores
were relocated, this means that their location was changed to some other place. Some of the
stores were converted into food products store. This means that food operations of M&S are one
of the most successful businesses and this is why considering success of food business some of

the stores were converted into food stores. Internal development plan of M&S also that M&S
retreated its operations from 10 international markets (CREATING A STORE ESTATE FOR
THE NEW WORLD: M&S OPENS MAJOR NEW STORE AT NOTTINGHAM
GILTBROOK, 2020). In addition to this M&S also started and opened new stores and these
stores are more digitalised in which they are integrated with M&S app. In relation with store
opening M&S opened 20 new stores in 2019-2020. In its transformation around 100 stores were
either closed or relocated.
Other than this, some of the steps for external development have also been taken by M&S
and this includes strategic alliance with Ocado (BRINGING THE BEST TOGETHER MARKS
AND SPENCER GROUP PLC ESTABLISHES ITS JOINT VENTURE WITH OCADO
GROUP PLC, 2019). This joint venture if M&S and Ocado was acquisition of Ocado in which
half of the shares were acquired by M&S and this is a 50-50joint venture. This deal took place in
2019 and under this deal 50 percent shares of Ocaado have been acquired by M&S for £750
million. This joint venture is names Ocado.com but this will stock and sell food products of
M&S and its own brand products. Additionally, this business will be benefited by database of 12
million M&S food shoppers. This new venture is likely to start in September 2020 (UK online
venture is big deal for M&S but investors unconvinced, 2020). This strategic alliance of M&S
with Ocado will help M&S in improving its food business because in times of difficulties of
M&S, its food business was working well, however its falling sales and revenue requires taking
immediate actions to increase sales and revenue of food business of M&S.
This means that M&S has adopted different strategies for its internal as well as external
development. This means that company is working on its internal development by closing,
relocation and starting of new stores. This means that formats of stores have been changed so
that it can reduce its cost and adapt businesses that are working well. Considering this some of
the stores have been converted into food products stores. For its external development M&S has
developed strategic alliance with Ocado. However external development strategy is stronger and
its pace is also faster than internal growth strategy in which M&S has cut down jobs and changed
positions within organisation.

3. Leadership Style
Leadership style is concerned with style and approach that leaders utilise while leading
teams or organisations. Every leader has their own style they utilise while reading and in relation
with business organisations have its own leadership style on the basis of which leaders generally
work and lead their teams and Organisation.
Leadership style of Steve Rowe
Transactional leadership style- Transactional leadership style also known as managerial
leadership style focuses on role of supervision organisation and performance of group (Khan,
2017). This leadership style focuses on specific tasks and use rewards and punishments to
motivate employees and team members. In other words transactional leadership involves
motivating and directing followers by appealing to their individual self-interest. Power of
transactional leader comes from their authority and responsibility in the organisation. Some of
the dimensions of transactional leadership style are-
Contingent rewards- this means that transactional leader creates link between goals and report
and clarify their expectations regarding performance and quality.
Active management by exception- CEO at M&S also has a strong focus on standard and
performance of organization as per standards and in order to monitor CEO of the company often
visits different stores of M&S.
Passive management by exception- This is another dimension of transactional leadership in
which only interfere when performance of organization is not as per standards and expectations.
In case performance is not as per standards they might use punishment as a response.
Case study outlines that Steve Rowe is a stickler for quality and also prone to taking
photos of substandard quality packaging and rearranging self displays (Saravo, Netzel and
Kiesewetter, 2017). In addition to this reputation of Steve Rowe is of tough minded manager and
these are some of the qualities of transactional leaders. On this basis Steve Rowe can be
considered as a transactional leader. Steve Rowe actively visits local stores and this monitoring
is also known as management bby exception and is also an element or quality of transactional
leader. This means that Steve Rowe is a transactional leader.

Transactional leadership help in creating achievable goals for individuals at all levels.
Transactional leadership includes a chain of command and because of this possibility of
confusion remains very low and it also contribute in reducing cost by improving productivity
levels in organisation.
Leadership style of Archie Norman
Archie Norman’s leadership style can be considered as transformational leadership style.
This is because transformational leaders are effective at bringing change within organisation and
case study outlines that Archie Norman have previously transformed Asda and in addition this
appointment of Archie Norman have also brought changes in top management of M&S (Bernarto
and et.al., 2020). Additionally, Archie Norman and Steve Rowe have also planned long term
transformation within M&S to address different issues that organisation is facing and also for its
continued growth and success. He also supported Steve Rowe for the transformational plan he
presented and considers that M&S requires to make a daring leap in future which is possible
through change and transformation.
4. Change Management
Change management is a process and practice of managing change implementation
within organisation. Change is considered as significant for growth and future success of every
organisation and in order to ensure that organisation is able to achieve its goals of change
effectively it is important that change management in organisation is successful. Strategy
implementation within M&S is also a part of change management and in order to ensure strategy
implementation and its success change management is very important.
Change Kaleidoscope
Change kaleidoscope is a model that involves eight key elements of change in organisation and
these features include-
Time- This element is concerned with time that will be required for change planning and
implementation. Time required for changes and transformation within M&S is long because
change implemented is long term in nature.

Scope- This is concerned with extent to which change will bring realignment and transformation
within organisation. Degree of change is high because change is expected to bring several kinds
of realignment and transformation within M&S (Rexhepi Mahmutaj and Koka Grubi, 2020).
Preservation- Change within organisation is aimed to save financials assets. In addition to this
change will not have any impact on retention of practices and characteristics of organisation
during change.
Diversity- This is concerned with diversity being affected by change implementation in M&S.
Change within M&S not have impact within diversity in organisation in terms of attitude, values
and norms.
Capability- M&S have all competency required for planning and implementing change in terms
of managerial skills and personal knowledge and ability of managers. Steve Rowe and Archie
Norman are examples of effective and efficient managerial skills and capabilities.
Capacity- In relation with capacity M&S has all the required resources needed for change
investment such as cash, human resources and time. This is because change changing
organisational practices and for change in organisation step to reduce its cost have also been
undertaken such as closing of stores and relocation of stores.
Readiness- In relation with level of change awareness and readiness of employees, change have
been effectively planned and implemented to prepare employees product change within
organisation.
Power- Change has been initiated by Chairman and CEO of M&S and they have all the required
power to initiate change in organisation.
In relation with changes that M&S is working on style of change leadership required is
collaboration. Collaboration is concerned with employee involvement on decision (Haggblade
and et.al.,2017). This allows organisation to get benefit from Intelligence and creativity of
employees and effective participation of employees also enhance organisational performance
during change implementation.
However on the basis of case study it can be said that style of leadership adopted by
Steve Rowe is direction style of change leadership. This means that leaders direct and control
change planning and implementation within organisation.

Style of leadership adopted by Steve Rowe and Archie Norman is also effective and
effectiveness affected by employees and organisational preparedness for change.
5. Sustainability
Sustainability is concerned with ability of something to exist constantly and for long
time. Sustainability of organisation is concerned with its sustainable and long term performance
efficiency which enables organisation to achieve its goals effectively. In present business
environment every organisation has to consider impact of the activities on environment and
M&S is also one of the organisations that have considered sustainability. M&S is developed and
implemented Plan A for its sustainability. As per organisation Plan A is their way through which
they help building a sustainable future by becoming a business that enables their customers to
have a positive impact on wellbeing communities and on planet through everything that they do.
Sustainable fashion- M&S has a plan for sustainable fashion in which they work on creating
high quality cloth that last rather than creating throwaway fashion (OUR APPROACH TO
SUSTAINABLE FASHION, 2019). In addition to this M&S also has a plan in which customers
can donate their clothes of any brand through their Shwopping scheme with Oxfam. In this
clothes are either resold or are given for recycling.
Plastic plan in sustainability- In their plan to reduce effect impact of plastic on environment
they use less plastic and also plastic is reused and recycled. In addition to reducing plastic use in
the business they are also working collaboratively to reform UK’s waste and recycling system
and also are making it easier for consumers to reuse and recycle plastic.
Actions on climate change- In order to work on climate change plan of M&S are to remain
carbon neutral business and as they have become carbon neutral business they have offset over 2
million tons of carbon emission and are planning to continue to offset the residual emissions
(OUR ACTION ON CLIMATE CHANGE, 2019). Regarding their actions on climate change
their plan also includes reducing Greenhouse gas emission from there Global operations by 80%
by 2030 and 90% by 2035. Their plan for climate change also include reduce Greenhouse gas
emission from their suppliers chain and customers by at least 13.3 million tonnes by 2030.

Farming standards- organisation has strong and effective standard for food safety standards and
animal health and welfare. Recording this term plan includes lending their support to project that
help farmers find new ways to reduce water and energy used in farming and improve their soil
management and increase biodiversity.
Protecting forests- Sustainability plan of M&S also includes protecting forest and in there zero
deforestation their plan includes 100% of soy resourced using the round table for responsible soy
credit and recognise the sustainable soil schemes (PROTECTING OUR FORESTS, 2020). In
addition to this organisation is also planning to get 100% responsibly sourced wood and paper.
M&S is having many plans for different areas considering their sustainability and organisational
performance related to those areas (Keay and Iqbal, 2018). In its plan company has considered
several elements that are closely related with retail organisations and also elements of inability
that has impact on wider community and Society.
6. Conclusion and Future Recommendations
On the basis of above discussion it can be concluded that M&S has adopted development
strategies that are effective and helped it in maintaining strong position in competition. However
there are certain elements in which M&S can perform better and its methods were not much
effective. Concerned with leadership style that M&S uses, it has several benefits but
disadvantage and limitations are also there. Concerned with change management M&S adopts
right approaches for strategy implementation within organisation and in relation with
sustainability M&S have highly effective plans. Plan A of M&S outline different practices and
approaches of organisation that they have adopted for sustainability in organisation.
On the basis of above discussion it can be recommended that-
M&S primarily work on increasing its sales and revenue because it is being declining
continuously. This means that leaders are working on increasing pace of change within
organisation but working on other methods of increasing sales should also be considered to
increase sales and revenue of M&S.
Methods of development adopted by M&S for its internal and external development suggests
that external development methods are more effective like strategic alliances compared to

internal development methods. It is recommended that M&S should increase pace of internal
development of organisation.
In its development methods M&S undertook different practices and cutting job was also part of
it. In this situation it is important that effective practices are adopted to ensure high morale of
existing employees. This is because fear of job uncertainty can have negative impact on
performance on employees.

REFERENCES
Books and Journals
Bernarto, I and et.al., 2020. Effect of transformational leadership, perceived organizational
support, job satisfaction toward life satisfaction: Evidences from indonesian teachers.
Haggblade, S and et.al.,2017. What drives policy change? Evidence from six empirical
applications of the Kaleidoscope Model (No. 1878-2017-2512).
Khan, N., 2017. Adaptive or transactional leadership in current higher education: A brief
comparison. International Review of Research in Open and Distributed
Learning, 18(3), pp.178-183.
Rexhepi Mahmutaj, L. and Koka Grubi, A., 2020. Models of change in organizations: the case of
XYZ construction.
Saravo, B., Netzel, J. and Kiesewetter, J., 2017. The need for strong clinical leaders–
Transformational and transactional leadership as a framework for resident leadership
training. PLoS One. 12(8). p.e0183019.
Online
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<https://corporate.marksandspencer.com/media/press-releases/5c2f8d617880b2108445
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CREATING A STORE ESTATE FOR THE NEW WORLD: M&S OPENS MAJOR NEW
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<https://corporate.marksandspencer.com/home>.