Strategic Management Report: Analyzing Marks and Spencer Strategies

This report provides a detailed strategic management analysis of Marks and Spencer (M&S), a British multinational retailer. It begins with an introduction to strategic management and its importance, then delves into M&S's strategies, focusing on customer satisfaction and outlining their three-step approach. The report includes PESTLE and SWOT analyses to examine the external and internal environments, identifying key political, economic, social, technological, legal, and ecological factors, as well as strengths, weaknesses, opportunities, and threats. It also explores M&S's transactional leadership style and change management strategies, including the application of Kotter's theory. Finally, the report examines M&S's sustainability strategy, particularly Plan A, and its commitment to environmental and social responsibility. The analysis offers valuable insights into M&S's business practices and strategic decision-making.

Strategic Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
M&S strategy..............................................................................................................................3
Methods of Development............................................................................................................4
Leadership style of M&S............................................................................................................6
Change management of M&S.....................................................................................................6
Sustainability Strategy of M&S..................................................................................................8
RECOMMENDATIONS.................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Strategic management is a continuous process for an organisation as it is a part of
management function. In involves planning and plotting of the strategies to evaluate targets
objectives into desired manner. It drives a path towards success of organisation by involving all
human resources in fulfilling the aims and mission of the company to enhance the profitability.
This report is going to focus on about strategic management on Marks and Spencer. Is is a
British multinational company specialised in selling goods and services into retail sector. The
company has the largest dealer of clothing, food and home essentials. The company has started
their operations in 1884 (Mwakio and Awuor, 2018). Moreover, the report enable the essential
factors of the company by analysing internal and external market forces with the help of Swot
and pestle analysis. Also, how the company target their audience and make segmentation to
distribute their product is going to acknowledge in this report.
M&S strategy
M&S strategies are meant to be focused on satisfaction of consumers. This strategy
follows three steps in order to satisfy and provide their customers better services and by
performances. The first step involve is restoration of basics which conclude maintaining the
competitive advantage of the organisation by focusing on capital factor and products that is in
demand to their costumers. For this company can determine various strategies which can be
helpful to attain productivity in the external environment. This conclude the shift of the basics
into faster one which can improve in the efficiency of workforce. This will also help in
improvement in the communication ways of the organisation and also lowers the operational cost
of the company. The next step is to construct the future of company. For this M&S will illustrate
the competitive forces of the company and develop strategies for the upcoming threats and
prospects (Pysmak, 2017). This will help to gain a platform for the organisation where they can
introduce their products and services digitally perhaps it can enhance business across the globe.
Moreover, the company can also supplying innovative products in the industry which may help
in building their competitive advantage.
The last step includes making M&S special adopt plans and model in order to increase
their sustainability. As these goals will help them to achieve desirable future growth of the
company and establish competitive advantage for the company. Company can change

management by adopting various leadership styles. the company can implement strategies to
become digital retailer as well.
Methods of Development
PESTLE Analysis
It is the most important strategy that helps to analyse the external or macro environment
so that they have to identify the factors that affect the organisation (Boon and et. al., 2018).
PESTLE analysis is most commonly used tool that helps to achieve their target market with
handling of unexpected risks or situations that affect the organisation. Political factors: It include those factors such as political stability, terrorism, etc. It is
very important for organisation that they firstly analyse the market where they want to
grow and explore their business in market. The most important factor that affect Marks &
Spencer is Brexit. Due to the separation of European Union from UK it is the situation of
probability that affect the business positively or negatively. Economic factors: It include factors like disposable income of individual, taxation
policy, etc. Marks & Spencer get affected by the taxation if the government of UK tries to
change policies frequently then it get negatively affect the business of Marks & Spencer. Social Factors: One of the most important factor that affect the sales of business. It is
analyse that Marks & Spencer is most non trendy organisation that reduce the sales and
revenue of the business. Technological factors: To compete with competitors it is very important for organisation
that they should update their techniques and methods with the change in time because if
they do not perform this then it can be affect on their productivity. Marks & Spencer is
one of the important organisation that focuses on technological up gradation in which
they innovate their online portal so that they can sell their goods and services (Varley and
et. al., 2018). Legal factors: It include all rule and regulations that is important to follow in
organisation such as employment laws, equality laws, etc. There is no as such legal
factors found in Marks & Spencer.
 Ecological/Environmental factors: It include factors that doesn't damage the ecosystem
of environment. Marks & Spencer use renewable resources so that they can maintain the
hygiene of environment and doesn't damage the environment.

SWOT Analysis
Strengths Weaknesses
Marks and Spencer rule the market
from past 136 years and because of this
it is well experienced in its field.
The company offers several variety of
product to its customers and become a
recognised brand.
The company hires large number of
designers in the store from different
brands.
Marks and Spencer is a multinational
company which have their stores in
various countries and struggle to create a
good brand image.
 The poor supply chain and non-
availability of products decrease the
sale of marks and Spencer.
 The wrong perception of general
public that M&S only offers clothes to
older people and not to young and
teenagers.
 The brand follows a manual process
which cost them high in compare to
other brands and they became costly
for their consumers (Stavroulakis and
et. al., 2020).
 Some factors are there which creates a
bad image of the company such as non
availability of clothes and food
products, wrong perception for the
company as well as high cost.
Opportunities Threat
 It is a multinational brand and opened up
stores in many countries and they had
opportunity to expand their stores in
those countries.
 E-commerce is future of shopping and it
is an opportunity for Marks and Spencer
to focus on growth of online store.
 There is a very high competition in the
market which can affect M&S too.
 Introduction of new brands increase
competition for the store.
 Rapid change in fashion these days
can also affect the company.

Leadership style of M&S
Leadership is a process in which the leader guides the team in order to accomplish the
given task on or before the deadline that were being pre decided. The task that is undertaken is
performed effectively in order to enhance the efficiency and effectiveness of the team members.
In relation with this, M&S adopts the transactional style of leadership in their working
environment. The managers are selected with a very selected criteria to cope up with the
dynamism of organization. The managers have potency in framing decisions of firm. They are
accountable for carrying on daily work. The organization uses this form because this is
comparatively effortless to execute (HIEU and NWACHUKWU). It includes two elements. The
first tells about the administration by rewards in cash or kind. It refers to the work by rendering
them initiatives for their performing abilities.
This focuses on constructing impressiveness within workforce. The working class gets
incentives and bonus. The incentives are paid on behalf of understanding among the both. The
another element in the style is management by exception. It refers to that organization is coming
through with working class and keeping a knowledge of their working capacity. It includes
mainly two kinds of leading authorities namely Active and Passive leaders. Active leaders
regularly focus on the working abilities of their masses and invent systematic plans to modify it.
Whereas on the other hand passive leaders checks the work at time of its wind-up and then tell
the masses about any kind of rectification required in it. It can also be assumed as to Marks and
Spencer have grasped the following transactional style that includes both incentives and penalties
for the work assigned to the working employees (Abdullahi). The transactional style of
leadership propels the masses who follow leaders by initiating them their own self interest.
Change management of M&S.
Change is an important process and it is important to adopt the change. The world is
dynamic and changing at a fast pace so an organisation should also understand the need of
change and adopt the changes that helps the organisation to work effectively and efficiently. The
impact of Brexit is explained with reference to M&S. There is discussion related to how the
company deal with and managed changes (Langat and Wainaina, 2019). There are many
challenges that the company faced due to Brexit like working according to the changing taste of
the customers in the clothing, food price inflation and many more. To manage all these

challenges and cope up with the problems M&S introduced various strategies that helped them
and increased cooperation and coordination among employees.
These strategies have positive impact on employees and they are motivated towards work
that has helped to increases the productivity of the company. A leader plays a vital role in
success of an organisation and managing change. M&S has adopted Kotter's Theory for
managing the change. The steps are described below:
 Create a sense for urgency: M&S analysis the possible warning and contrive scheme to
pull off and maintain them very potency. The organisation demand cooperation from the
employees part so that they can handle the situations and remove the threats.
 Forming powerful guiding Coalition: In this M&S goals at investigate efficacious and
impressive mangers or leaders so that they can apply modification in the company. The
organisation formulate a strong alliance in that the associate are create the fields or sector
of cross functional.
 Developing a vision and strategy: M&S goals at processing a imagination that will
explain its operations and functioning in the company. For accomplishing that
imagination the organisation contrive effectual scheme for pull off alteration.
 Communicating vision: The alteration in the imagination have to be stated efficaciously
by the leaders of the company (OSAWA, 2019). M&S select those administration that
tackle the problems of the work environment regarding the alteration efficaciously.
 Removing Obstacles: This include the company framework and civilisation are aligned
by the direction of the alteration. M&S doing a daily basis testing on the issues.
 Creating short term wins: This will inspire the manpower because they think a
awareness of defeat after accomplishing the abbreviated quantity aims. M&S mortal
those individuals who are participating in the plan of dynamic management.
 Consolidating gains: M&S identify the dynamic management procedure endlessly to
pull off the developments effectually.
 Anchoring change in the corporate culture: Mangers has a responsibility to assure that
the alteration become an constitutional portion of the operative civilisation of the
organisation (Alozairi and Aga, MPánek, 2017).
Hence, these are the modes by which a M&S pull off the alteration enhancement in the
operative surroundings of the company.

Sustainability Strategy of M&S
Sustainability refers to a process in which the company attempts to save the resources for
future use. This will help in reducing the environmental problems that will tamper the
organisational performance in the external environment. With this, M&S have developed an
strategic plan in order to ensure effectiveness in the sustainability. Also, the company is focusing
on training and development of the workforce so that they can manage the strategic plan for the
sustainability. M&S have developed Plan A as a sustainability transformation plan on a multi
year basis. This projects the potential opportunities and threats that will restrict the growth
prospects of the company in the near future (Stehnei and et. al., 2017). Also, this plan will help
in evaluating the cultural priorities of M&S. There is an involvement of the effective leaders in
order to sustain their market share in the industry.
Furthermore, this plan highlights the commitments promised by the company to their
customers regarding the attainment of the gaols of the plan. For this M&S have included three
factors such as; planet, place and people. In this the place factor helps the company in creating
awareness among thousand of people regarding the sustainability. For this the company have
established a target of becoming a part of 1000 communities till 2025. the people factors depicts
that the company have set a target to help 10 million people by providing them healthy and
happy lives. At last the planet factor defines the aim of the company to become a zero waste
operating business organisation (Zainal and et. al., 2018). For this the company is adopting the
five principles of plastic which involves re-design, re-use, re-duce, re-turn and re-cycle.

RECOMMENDATIONS
 The company has established its effective strategies to carry out the operations. It use
STP approach to target their market and and make enable effective segments in order top
evaluate appropriate factors in relation of people age, gender, income and other factors.
 The company has build up an effective planning to be environmental friendly in terms of
production process so that environment and society would take sound growth. They
involves healthy products by knowing the rising health concerns of people. M&S
encourage their employees to take part in society welfare through contribution in plastic
waste and pollution removal activities.
 The company has effective leadership style to enhance employees productivity and guide
them with effective tools and techniques which is beneficial for their future growth. They
process their operation by keeping customer preference at their priority.

CONCLUSION
It can be concluded that strategic management plays a crucial role in success of an
organisation. It helps to formulate strategies and implement them properly and that helps to
increase the customer base of the organisation. M&S follows transactional form of leadership
style that is described in he report. PESTLE ans SWOT Analysis is also done to check the impact
of external and internal factors on the organisation and to build strategies accordingly. Change is
an important process that takes place no matter what the operations of the organisation are so
Kotter's Theory for managing the change is also discussed in the report. Sustainable plan is
important for an organisation to focus on people, place and planet.

REFERENCES
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