Marks and Spencer Business Management Analysis

The assignment analyzes Marks and Spencer's business management practices, including its decentralization techniques, employee motivation, and Henry Fayol's administrative theory of management. It also examines the company's use of attractive colors and symbols in packaging to attract consumers. The report concludes with suggestions for future improvement.

UNIT 4 MO

TABLE OF CONTENTS
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INTRODUCTION
Operation management deals with managing and controlling all operations of business,
for overall growth and development (Astarita and et.al., 2018). Managers perform different
activities like planning, decision making in order to increase its productivity and profitability.
Marks and Spencerwhich is British Multinational Company is selected for this project, its
headquarter is situated in the City of Westminster, London. Project discuss about functional
management structure of Marks and Spencer required to synchronise and coordinate all
commercial activities.
Further this report explores that leaders and managers plays a crucial role in organisation.
Management designs policies and strategies to maintain sustainable business environment. End
of the project consist of recommendation provided to Marks and Spencer to increase its
performance.
TASK 1
1.Introduction to Management structure of Marks and Spencer
Marks and Spencer is a British multinational company which deals with clothes,
luxurious products and home items. This is among the oldest retail businesses, it satisfies
demands of wide range of customers. M&S adhere to functional structure of management, in
this strategy job and activity of similar nature are grouped together in one department (Boezeman
and Ellemers, 2014). They follow proper hierarchy system for communicating messages, top
management give instructions to lower and middle level workers follow them and they work
accordingly. Every individual have different skills and capabilities, people having similar
attitude are grouped together.
Superiors train subordinates in order to carry out business operations effectively and
efficiently. Managers are responsible for controlling and managing departments, they coordinate
efforts of employees in one common direction. Synchronisation of all commercial activities is
significant to achieve goals and objectives .
Marks and Spencer follows decentralisation technique of decision making, managers
motivate employees to actively participate in decision making and express their opinions.
Superiors delegate work and responsibilities to subordinates, this will lead to specialisation.
Functional structure plays a crucial role in growth and development of employees, which is
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useful in achieving functional goals of company (Bolman and Deal, 2017). Organisation
improves its productivity level with the help of operational efficiency, because development of
specialized skill is essential for employee to complete task quickly in prescribed manner.
2.Define and Compare the different roles and characteristics of a leader and a manager
Leaders and manager have different roles and characteristics which is significant for
growth and development of organisation. The leaders and managers of Marks and Spencer are
very skilled and knowledgeable. Management of company is very effective as well as the
functions and operations of company is adorable (Clark, 2018). It is only because of leaders and
managers, they are are responsible for a smooth working of an organisation.
Leader is a person who have skill of leading in an organisation whereas managers
possess skills of coordinating various activities of businesses in effictive manner. There are many
types of leaders and managers in an organisation and they all have different roles and
responsibilities within an organisation. Some roles and responsibilities of leaders and Manager
of Marks and Spencer are given below.
Managers control all operations of business and are responsible for every activity of work
force, work is divided in different departments on the basis of skills and capabilities of
individual.
Self-Motivation- Managers are always motivated other within organisation to motivate
them in such a manner to work effectively and efficiently (Fairhurst and Connaughton, 2014).
Motivation is the essence of organisation as because if there is no encouragement than
employees will not work in prescribed manner.
Confidence- Managers of Manager of Marks and Spencer are very confident people as
they handle all activities in the company in a systematic manner. They make strategic decisions
which are very important for organisation. They are capable of making good decisions.
Leaders motivate and guide their followers to achieve desired objectives and goals, it provides
guidelines to coordinate efforts towards common direction.
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Flexibility- they are very flexible person and can change their decisions as per the
situations and conditions. In order to smooth working of an Manager of Marks and Spencer, it is
very essential that leaders should have certain amount of flexibility.
Reliable- leaders are most reliable person as all employees of organization as well as
structure of company is depends upon their motivation.
Basis Manager Leader
Subordinate People working bellow
designation of manager such
as employee, follow
instructions and work
accordingly.
Leaders influence behaviour
and mind set of people known
as followers.
Approach M$S follow formal hierarchy
system for communicating
message and instruction to
employees.
There are various approaches
adopted by leader of of Marks
and Spencer like situational,
contingent leadership style to
give directions to people.
Focus Manager of Marks and
Spencer manager Coordinate
and synchronise work between
different groups, which will
help in accomplishing target in
prescribed manner.
their main concerned is
motivating followers to work
effectively and efficiently.
Risk Less risk taking because they
follow guidelines.
Leaders have creative mind set
and the implement innovative
strategies and policies.
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3.Different managerial functions and leadership roles effectively applied using management
theories
Mangers and leaders influence behaviour of employees and direct them perform work in
desired manner. Management deals with controlling all operations of business whereas leaders
provide guidelines to followers, implement innovative ideas to accomplish goals. Management
design policies and strategies to maintain sustainable business environment (Glaeser, Michels
and Verrecchia, 2018). According to contingency theory, managers critically evaluates
circumstances and takes decisions accordingly. They can use leadership approach, in order to
motivate employee to actively participate in business operations.
Henry Fayol gave administrative theory of management, which deals with organisation as
whole, work should be divided among various department to reduce workload. Managers can
evaluate and examine events happening in workplace, with the help of system approach. They
coordinate all business activities collectively in common direction which will increase overall
productivity. In order to maintain peace and harmony, it is significant to have disciplined
workers. Chaos theory of management help leaders in dealing with complex situations and
optimally use resources. Individuals having different backgrounds and culture work together as a
team. Superiors of every department gives instructions to subordinates and they are responsible
for completing task in prescribed time.
Management theories plays a crucial role in influencing behaviour and attitude of
workers (Haimelin and et.al., 2017). Managers provide incentive to employees in order to boost
up their morale.
4.Examining the roles of a leader and functions of a manager applied in different situations
Decision making is an important function in management process because it has direct
impact on productivity of business. Organisation deals with various difficult situations and
issues, in order to resolve implementing of right policy is essential. All important decisions
related to finance, products, etc. are taken by managers. They are responsible for every actions of
employees. Leadership is essential at all levels of organisation, it is persuasive and continuous
process.
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Effective utilisation of resources and funds: in order to carry out business process smoothly, it
is important allocate resources and funds. Effective utilisation of resources will minimise
wastage and maximise revenue (Harding and Ford,2014). Managers of Marks and Spencer are
responsible for distributing funds which are received from investors, bankers and shareholders.
Handling situation of crisis: M&S face difficult situations and issues, on the basis of
experience and knowledge they critically evaluate them and provide situational strategies.
Mangers are responsible for designing an effective plan which is required in overcoming hurdles
and issues. Leaders play role of mediator, they listen to employee’s problems and communicate
it to top level management. Effective communication skill of managers help them in interacting
with superiors and provide them information about new techniques and procedures.
5.Theories and approaches applied within Marks and Spencer
Marks and Spencer is the leading organisation which uses various theories and
approaches to maximise profitability and productivity. Leaders and managers plays a crucial role
in managing operations of business. They motivate followers to complete assigned task in
prescribed time, some of the theories are given below:
Situational theory: managers to the organisation should adopt different leadership styles on the
basis of their circumstance. Leaders of Marks and Spencer changes their techniques, in order to
achieve organisational goals (Leadership Styles in Business, 2018.). Selection of style or
techniques depends upon the capability and skills them. They analyse situations and implement
techniques which are necessary for growth and development of company.
System leadership: it is responsibility of manager to create positive working environment in
which employees work effectively towards common goals. Leaders guides their followers to
think creatively and apply skills for enhancing their performance level. It helps managers in
controlling all operations of business. They provide effective strategy and policy to get desired
outcome.
Contingency leadership: leaders changes their behaviour and attitude according to situations and
provides effective guidelines and suggestions to deal with them (Hemphill and et.al., 2015). On
the basis of their experience they predict circumstances and design policy to resolve it.
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6. Strength and weaknesses of the leadership theories
STRENGTH
Situational leadership: leaders take initiative to identify and evaluate various other
circumstances of business and select appropriate style to deal with them. This is flexible and
effective style leadership.
System leadership : this technique help management to communicate instruction and guide
employees to complete work (Hugos, 2018). This is style is economical and generally preferred
by small scale organisation.
Contingency leadership this is most flexible type of leadership style which is used by many
companies. It is significant for them to choose appropriate technique in order to increase
productivity.
WEAKNESSES
Situational leadership : it deals with short term goals of business as a result long term profits are
affected. Managers continuously struggle about which style should be implemented. It is lengthy
procedure as managers need to evaluate every situation.
System leadership : this is a fictitious style and it can not be implemented in practical
circumstances of business. It is expensive and complicated techniques, not affordable by small
and medium size entrepreneur.
Contingency leadership: it theory is reactive, it deals with complex situations so its
implementation become difficult and complex (Pohl, 2014). Managers has limited time, it is
possible that they will cut short the techniques because testing of each factor become difficult
and expensive.
QUESTION 7
Impact of managers and leaders on the organisation
Managers direct and control all important activities of business and leaders motivate
followers to accomplish target. Some of their impacts are given below:
 it is significant to have trust between superiors and subordinates to create a positive
working environment. Continuous interaction between managers and employees help in
establishing strong relation. Marks and Spencer’s leaders identify weakness of staff and
train them accordingly to improve existing skill and develop new one.
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 Human Resource managers selects individuals on the basis of capabilities and knowledge
they have (Quinn and et.al., 2014). In order to increase productivity and efficiency Marks
and Spencer’s leaders organise workshops and training programs to guide staff members.
 On the basis of experience, managers identify strength and weaknesses of team members,
and assign them task according to it. Right allotment of task will motivate employees to
work and accomplish target.
 Marks and Spencer designs products according to taste of potential buyers, managers
help in identifying new market trends. Main objective of business is to satisfy customers
and establish positive brand image.
 M&S deliver quality products to consumers and at the same time it focuses on its
affordability. Managers apply their knowledge to compare cost with revenue and decide
suitable price for it.
 Leader and managers effectively utilise technology in order to minimise its cost and
maximise quality (Rittinghouse and Ransome, 2016). Due to this reason Marks and
Spencer is able to offer quality products and services at economy cost.
TASK 2
1.Operation management in Marks and Spencer
Operation management is the highest level of administration practices which deals with
designing and managing manufacturing procedure of business. It includes managing both
commercial and regular activities in an efficient manner. Marks and Spencer guides and provides
detailed instructions to employees to accomplish given target. Due to effective management
organisation are able to train employees to perform task in a prescribed manner. Given below are
key approaches of operation management:
Customer Centric Approach: customer centric approach help business in delivering quality
products and service with objective of creating positive impact on clients and customers. Marks
and Spencer offers online shopping facility to consumers to save time and money (Ross, 2017).
Company uses this approach to identify customers and establish new brand image in world.
Lean Manufacturing Approach: lean production focuses on minimising wastage which will
increase overall productivity of the business. Marks and Spencer uses this approach to render
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valuable products and services to its customers and decide economy price which consumers are
willing to pay.
Software Centric Management : Software Centric Management identify importance of software
and technological advancement in order to deliver quality services. Application of this process
reduce the cost and resolve issues related to production process. It helps management to keep
record of input and output of materials and product.
2.Roles and responsibilities of managers and leaders in successful management of organisational
objectives
Managers and leaders play crucial role in effective utilisation of resources to minimise
cost of operations and increase share of profits. Effective communication help organisation in
maintaining coordination between various departments and activities of business. Marks and
Spencer’s leaders and managers has following roles and responsibilities towards success of its
company. Management Of Resources: resource management is among important duty of manager
because it is essential in growth and development process. Marks and Spencer effectively
manages supply of raw materials and delivering quality products (Schönsleben, 2016).
Managers take important decisions regarding purchasing of raw material, managing of
inventory, etc. Financial Management: financial management is essential to carry out all activities of
business efficiently and smoothly. Marks and Spencer allocates their profits on the basis
of priority, this is an effective measure implemented by manager. Proper utilisation of
financial resources is an activity performed by top level managers. Goal Setting: Managers of Marks and Spencer set separate goals for every department
and coordinates their efforts to analyse overall performance of company. They provide
guidelines to workers and provide them suggestions regarding what is to be done next.
 Communication: effective communication is essential for managers to deliver clear and
definite instructions to subordinates. This will reduce chances of communication and
goals will be achieved timely and in prescribed manner.
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3.Important approaches of operational management
Six sigma: It is an effective tool used by management to deal with various issues and
problems related to process of management (Astarita and et.al., 2018). Marks and Spencer main
motive is to meet the requirements of customers and provide them with valuable products and
services. Demand of consumers change according to business environment. Managers measure
all changes which are taking place in organisation and implement strategy to meet desired
requirements of clients. They critically evaluate every circumstances and identify key problems
and develop plans to deal with them. Senior managers of Marks and Spencer decided to improve
its existing strategies in order to accomplish goals and objective.
Six sigma is used to measure performance of workers by comparing their actual and
standard performance and identifying reasons of deviations. Failure of this method can be great
loss for company because this is complicated and expensive method. M&S use this tool to
increase overall productivity and profitability of business. Trained and expert employees use six
sigma in business management process to meet short and specified objectives of business.
Managers interact with consumers in order to gather feedback related to products, on the basis of
this they implement strategies to improve the defective items (Boezeman and Ellemers, 2014).
Marks and Spencer can use this technique to increase quality and minimise the wastage cost,
which will lead to economies of scale.
Total quality management : Manager of Marks and Spencer use this technique to achieve
long term objective of business like consumer satisfaction. This method improve efficiency and
productivity of employees which is essential for delivering valuable services to potential buyers.
Manager with effective communication maintain discipline and coordination between various
activities. M&S design products and services according to consumers requirement which will
increase over all sale and revenue of business.
4.Importance of managers and leaders in improving operational efficiency
Operation efficiency is defined as ratio between input and output, in order to deliver
quality products and services to consumers. Managers design, plan and provide detailed
information to employees and colleagues, this is the initial stage in business management
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procedure. Marks and Spencer is improving its efficiency by managing all business activities
with the help of time management skill of manager. It is significant to improve quality and
quantity of products and services in order to make buyers happy and satisfied.
M&S follow systematic hierarchy in which subordinates are answerable to its superiors
for not completing work in a prescribed time. Marks and Spencer organises general meeting on
regular basis and leader’s influences employees to actively participate in decision making
process to share ideas and opinions. Mangers motivate workforce to work hard by providing
them with proper incentives and bonus (Bolman and Deal, 2017). In order to increase work
efficiency rewards can be offered either in monetary terms or non-monetary terms. From the
above, it can be said that managers and leaders is significant for improving operational efficiency
of Marks and Spencer.
5.Impact of external business environment on the decisions taken by managers and leader
Economy: Economic factors include tax rate, employment rate, policies, etc. has direct
impact on business. Financial decisions of Marks and Spencer will be affected by this, which
will minimize overall profitability.
Political: Managers critically evaluate business environment, these factors have affect
welfare of employees working in an organisation. For example Marks and Spencer consider
political factors before drafting of business policy and procedures, to maintain sustainability and
healthy working environment (Clark, 2018).
6.Application of operations management to manage the impact on business environment
Internal factor
Marketing: According to Henry Fayol it is prior duty of mangers to analyse attitude and
behaviour of individual, on basis of that they target market segments. Marks and Spencer design
their products and services on the basis of consumer’s demand.
External factor
Competitors: Marks and Spencer should be aware about its competition in the market, business
decide price of products on the basis of above identification. This will have direct impact on
company’s market position.
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7.Recommendation for future improvement of Marks and Spencer
Given below are some suggestion for the company
 Marks and Spencer can use effective promotional strategies in order to grab attention of
the potential buyers (Fairhurst and Connaughton, , 2014).
 Company may use attractive colours and symbols in its packaging process, to attract
consumers.
CONCLUSION
This project concludes that Marks and Spencer follow decentralisation technique of
decision making, managers motivate employee to actively participate in decision making and
express their opinions. Henry Fayol gave administrative theory of management, which deals with
organisation as whole, work should be divided among various department to reduce workload.
Leaders of Marks and Spencer change their techniques, in order to achieve organisational goals.
On the basis of above report it is suggested that company can use attractive colours and symbols
in its packaging process.
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REFERENCES
Books and Journals
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