Understanding and Leading Change in Clothing Retail Industry: A Comparative Analysis of Marks and Spencer and Zara

This report provides a comparative analysis of Marks and Spencer and Zara in terms of understanding and leading change in the clothing retail industry. It includes a SWOT analysis, evaluation of drivers of change, impact on organizational behavior, and recommendations for change management.

Understanding and leading
change

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
An overview of the Marks and Spencer......................................................................................3
Overview of Zara.........................................................................................................................3
2) A SWOT analysis for each case study to identify the drivers of change................................3
3) An analysis of the drivers of change, showing similarities and differences between the
organisation’s approach and ways in which the change in the market will affect the
organisation’s strategy and operations.........................................................................................6
4) An evaluation of how the changes affect organisational behaviour of both individuals and
leaders..........................................................................................................................................7
5) An evaluation of how the impact of change was minimised and the application of
appropriate models applied to plan for and process change effectively......................................8
Critical evaluation of the long term implications of change........................................................8
Recommendations for change management................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A business field requires to evaluate and analyse each and every business function to run the
organization at definite level. Understanding and leading the change is a process where an
individual business prepares the areas to meet the problems and issues that comes and can be
change by implementing the relevant strategies. The report will illustrate the concept and brief
about the leading change at the organization where at first a comparative analysis will take place
between two organizations which are Marks and Spencer and Zara where both companies are
clothing retail organization (Trujillo-Cabezas, 2020). From implementing this analysis, it will
help to understand the changes and business function in definite manner.
MAIN BODY
An overview of the Marks and Spencer
The company Marks and Spencer is a multinational clothing retail organization located at
London, United Kingdom where it is mostly deals in clothing, beauty product, home care and
food products as well. The company mostly keeps their focus on providing the best products and
services to the customers from where they can be able to increase their customer scale and can
leads the company at successful level. Thus, the company uses different kinds of strategies to
develop and grow their organization in definite manner and can obtain the effective results and
outcome.
Overview of Zara
The organization Zara is a Spanish retail company deals in apparel wear where it is having the
specialised in fast fashion market which includes clothing, accessories, shoes, beauty and
perfumes whereas the company is sub-organization of the largest company Inditex. However, the
company is headquartered at Arteixo, Spain.
2) A SWOT analysis for each case study to identify the drivers of change
Swot analysis of M&S
Strength
The company M&S is one of the powerful
retail industry where it is quite good at
providing the quality, convenience and wide
range of products from where the people or
Weakness
The company is a multinational organization
where the company has a responsibility of
fulfilling the needs and requirements of the
people and customers from where the company

consumers do not have to obtain difficulties
and can buy the products easily (Pereira,
Pugliese, Montevechi, and et.al., 2018). The
company has their own branded labels from
where it is a strength for the organization and
can be able to obtain the effective results and
outcome. Also, the company provides the
variety of the products from where the
consumer does not have to look out at various
places to fulfil their needs and desires.
is not that much able to give the satisfaction
the customers where they are facing issues in
providing the satisfaction to the customers
which is considered as weak point. Also, the
company is weak at supply chain scalability
where they are having a poor scalability of the
supply chain management. thus, the company
is required to improve their supply chain areas
to grow and develop the company effectively.
Opportunity
The company M&S can have a great and huge
opportunity to grow and develop their business
at higher level in the Asia where there is a huge
demand of ethnic and traditional wear and
apparels where they have a great opportunity to
develop themselves effectively. the company is
able to provide the needs and desires of the
people from where the company can have a
huge opportunity to approach and attract the
consumers in definite manner and can be able
to increase their customer scale definitely.
Threat
The M&S company is having a threat due to
high competition in the market area as there are
many companies who have started their
clothing and apparels business and also
providing the new services and bringing the
innovation in the fashion industry from where
the company I shaving threat of being
substituted and can obtain the difficulties to
survive in the market at definite level.
However, the changes and regulations in
political and government laws and legislation
from where the company can get the issue and
threat of not able to grow and develop the
company at effective level.

Swot analysis of Zara
Strength
The company ZARA always focus on the new
trends and customers wants from where they
can be able to provide the appropriate
satisfaction to the customers also the company
also has the benefit of dealing the customer by
online platform where they made their new
website from which the customers of the
ZARA can gives their feedback and the
company can be able to resolve their issues in
definite manner. The company has switched to
online platform where they are able to grow
and develop their company at definite level and
can increase their productivity effectively.
Weakness
The company has limit their physical stores
due to recent pandemic Covid19 which has
accelerated the online shopping more where
the offline stores had provided the massive
drop in sales and causes the weak and poor
sales to the company (Hosaine, 2021). The
company is also not perfectly and accurately
able to manage the sustainability and fast
fashion industry in definite manner from which
the company obtains difficulty in attracting the
customers effectively and unable to increase
the sale and profitability accordingly.
Opportunity
The ZARA has the huge opportunity to provide
and deliver the sales to the customers as they
are having the service of rapid delivering cycle
which helps them to grow and develop their
company effectively (Blas, 2018). Also the
company uses the influence marketing where it
helps and support the company to attract and
approach more or maximum number of
consumer in definite manner. However,
adopting such types of opportunities allow the
company to obtain and acquire the definite
amount of results and outcome and can make
the company to grow and develop at successful
level.
Threat
The competition is increasing day by day
where the ZARA is having a threat of not able
to grow and develop or maintain the growth of
t eh company effectively. The new launched
company is bringing the new ideologies in
their business functions which is a threat for
the company and provides the difficulties to
develop and grow effectively. Also, the
company puts the prices at higher level which
makes the customers to avoid purchasing the
appeals from Zara and becomes a customers of
new launched company as they provide and
maintain the pricing structure as affordability.

3) An analysis of the drivers of change, showing similarities and differences between the
organisation’s approach and ways in which the change in the market will affect the
organisation’s strategy and operations.
To run any kind of business and organization, there are always some of the drivers who puts the
impact on the business functions and provides the results in different manner. Thus, the company
Zara and M&S also have been impacted differently by the drivers of changes which includes the
major five factors where, demonstrating and mentioning the model named Porter five forces
which will help to identify the market changes which impacts the organisational strategy and
operations effectively (Simon, Nayeem, Alam and et.al., 2020).
Threat of New entrance: The company Zara and M&S is having a threat of new competitor or
new launched organization as the both companies are clothing retail company and have a
similarity in having issue and threat of new competitor in the market. The company Zara focuses
on the product differentiation and M&S is keeping their focus on providing the wider range of
products to deal with the challenges.
Threat of substitution: In clothing retail industry, the company always has to keep their focus
on quality, pricing structure and a convenience services from where the Zara is able to focus on
every part and not having much issues and lower threat of substitution whereas the M&S
company is having a threat of being substituted as there are many companies who started to copy
the designs where bringing new designs and innovation in difficult for the M&S company which
make the company to get substituted by other companies who are able to launch new designs on
daily basis.
Bargaining power of consumer: Zara is a retail fashion industry where they innovate and
differentiate to attract the customer effectively and keeps the focus on customer satisfaction level
where they follow the customer-centric approach to improve their customer satisfaction level and
implements the changes according to the customers by managing their profit and costs
(Kohtamäki, Parida, Oghazi, Gebauer and et.al., 2019). On other side, the M&S is different
where they provide the products from lower ranges to higher range which makes the customer to
get satisfied effectively and can obtain the definite results and outcome.

Bargaining power of supplier: This factor where bargaining power of supplier is low always
where the Zara has the power of keep their prices dominant as they believe in providing the new
designs and products to the customers. On alternative side, the M&S also having a similarity
with the ZARA that the M&S is able to provide the differentiation and unique prices to the
customers where they still keep the process range lower to higher.
Competitive rivalry: The company Zara has a major competition with the H&M, Mango,
forever 21 and such more whereas the company has obtained the challenges with these new
competitive industries and provides difficulties as well. However, the company M&S also having
a competition but they are able to manage the competition a nd their growth effectively as they
believe in providing the customer satisfaction where they put the prices according to customer
desires and affordability which leads the company to obtain effectiveness (Benzaghta, Elwalda,
Mousa, Erkan, and et.al., 2021).
4) An evaluation of how the changes affect organisational behaviour of both individuals and
leaders
The above mentioned report has done the comparison between the two successful clothing
organization where they can get affected by the organizational behaviour of the both individuals
and leaders whereas both the companies deals in the clothing apparels where the goals and vision
of the companies is quite similar. The company Zara and M&S leaders have the responsibility to
provide the guidance and proper instructions to the employee and staff members from where the
employee can be able to improve their performances in definite manner. Also, the leader has a
responsibility to provide the excellent working environment to the employee from where they
can be able to deliver the appropriate results and outcome in definite manner (Barnes, 2021).
Organizational behaviour should very good and excellent from where the employee and staff
members should be able to put their best efforts in making the grow and develop effectively and
can be able to obtain appropriate results. Thus, the leaders of the both companies are able to
provide the definite education to the employee where they are able to obtain the effectiveness in
definite manner.

5) An evaluation of how the impact of change was minimised and the application of appropriate
models applied to plan for and process change effectively
For implementation of the change in regard to the company where they can adopt the
digitalization and technology information from where the impact of change can be minimised by
using the appropriate plan and process for the effective change management.
Establishing the vision: The companies has to understand and create an appropriate vision and
aim before establishing the change in the organization from where the company can be able to
understand the importance and its actual needs and requirement of implementing the change in
definite manner.
Cost and risk analysis: Also, the companies are required to do an appropriate analysis of the
costing area and risk identification or getting the better results and outcome (Hayes, 2022).
Profitability of success: The profitability or measuring of the success is quite important and
significant to evaluate from where the company can obtain the effective result by implementing
the change definitely.
Evaluation of time: The company also has required to evaluate and set the appropriate timing
for completion of the change from where the company can get the result effectively.
Critical evaluation of the long term implications of change
The change is essential within an organization for the purpose of enhancing the culture,
operations and success of the company. However, the change within an organization can lead to
positive as well as negative changes within an organization. The long term implications of
change within an organization can lead to the following:
The positive implications of change within an organization includes encouragement to
the employees to provide the organization with innovations, enhancement of the skill set of the
workforce within the organization, capturing new business opportunities and enhancing the
morale of the staff (Dzwigol, and et.al 2019). The change within an organization allows the
organization to embrace and implement new ways to carrying out a specific task within an
organization. However, sometimes, the change in the techniques of conducting activities allows
the organization to grow while sometimes it affects an organization negatively.
The negative implication of change within an organization can lead to turnover of
employees within the organization due to the implementation of technology within the company.

This might reduce the cost of the company but might affect the productivity and innovation of
the organization.
Recommendations for change management
In order to manage change within an enterprise and allow them to eliminate the negative
consequences of the change within the company, the organization should implement the use
following strategies within the organization:
 In order to effectively manage change within an organization, it is essential for an
organization to communicate the change to the workforce within the company (AlManei,
Salonitis, and Tsinopoulos, 2018). It is important to communicate change to the
employees in order to make them understand about the changes that will be taking place
within the company and what the organization expects from them in order cope up with
the changes.
 Implement effective leadership within the enterprise. Effective leadership styles and the
influential leaders can help the organization in effectively managing the change within
the company and also achieving the required organizational goals within the organization.
CONCLUSION
From the above report, it can be concluded that changes is essential part of success within
an organization. However, it has its own set of advantages and disadvantages within the
company. The present report effectively describes the drivers of changes with the organizations
such as Zara and Marks and Spencer's with the help of using PESTLE and SWOT analysis in
context of the organization. The present report also describes the similarities and the differences
between the approaches used by both the organizations with respect to managing the change
within the company. The present report also recommend ways in which the organizations can
effectively manage change within the company and eliminated all the risk factors associated with
the tasks and operations of the organization.

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