Business Understanding and Leading Change: Marks & Spencer Case Study

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BUSINESS UNDERSTANDING AND LEADING
CHANGE
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Executive Summary
This discussion comprises of analysis of different aspects of change management.
This analysis has selected the Marks & Spencer as organisation conduct business in
retail sector and evaluated its change management on real time scenario. A
comparison has been done with another retail organisation that is Tesco plc by
including its management strategies in the global context. Change management
mitigate the negative influences that exist in the prior business management
strategies. In the last section, an importance of autocratic approach has been
evaluated in order to manage the employees in changing environment of
organisation.
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Table of Contents
Introduction................................................................................................................. 4
LO1............................................................................................................................. 5
LO2............................................................................................................................. 7
LO3........................................................................................................................... 12
LO4........................................................................................................................... 17
Conclusion................................................................................................................ 21
Reference List...........................................................................................................22
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Introduction
Change management is defined as systematic approach followed by an organisation
in order to handle the changing business process, technologies and objectives of
organisation. The business strategies of organisation play an important role in its
operation that affects business growth and profitability. Business strategies are made
for many different reasons that make help the organisation to conduct its operation
efficiently and effectively. In this context, Marks & Spencer business strategies are
evaluated with Tesco’s strategies where the changes will be observed in their
operations in first part of this discussion. Different driving factors will be discussed in
the context of internal and external business environment that affect the leadership
style and individual performance in the chosen organisation. In the last section,
several barriers that influence the decision-making of leaders referring to operation
of an organisation have been discussed.
Overview of Marks & Spencer
Marks & Spencer (M&S) was established in the year 1884 in London, UK. Steve
Rowe is current Chief Executive Officer of organisation. This retail organisation
conducts its business in the international market and successfully established 900
stores all over the world. M&S has wide range of product such as clothes, furniture,
flowers and food items. M&S is famous mainly for its traditional clothes and price
value in the international market.
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LO1
P1 Compare different organisational examples where there has been an impact
of change on an organisation’s strategy and operations.
In this context, two giant organisations have been chosen to find out different
business strategies that bring a change in its operations, which affected the
organisation. Marks & Spencer (M&S) is giant retail organisation that is located in
London, UK and Tesco plc is another giant retail company located in Welwyn
Garden City, UK. Therefore, a comparison conducted in the context of these two
organisations is mentioned below:
M&S Business Strategies and Impacts Tesco Plc Business Strategies and
Impacts
Marks decided to open many stores in
the UK market and international market
for clothes and home wares. This has
increased the number of stores more
than expectation of management of
organisation. Consequently, it affected
their business in negative way. Thus,
management of M&S decided to cut the
number of outlets in market. Thus, M&S
decided to close down around 300 high
street stores in order to manage the
losses through its operation
(Marksandspencer.com, 2019). This
brings a change in the workforce and so
many employees is going to be fired from
their job.
Currently, Tesco plc decided to bring
change in their items of stores located in
Britain. Management of organisation has
observed that some of the customer
frequently leaves the store even after
availability of fresh meat and fish in the
store. Tesco decided to close down
servicing fresh meat and fish in its 90
stores located in Britain. Tesco
management predicted that 9000
employee working in their stores would
effect from this decision of organisation.
In other word, organisation would cut
employment of 9000 staff of its store
(Tesco.com, 2019).
Marks & Spencer has taken a decision to
bring change in its supply chain in this
year 2019. This organisation decided to
open a 4, 95,000 square feet Clothing
and Home distribution centre in Welham
Green, Hertfordshire (Marks & Spencer
announces changes to its logistics
network, 2019). This will give a tough
competition to Tesco plc, as
Hertfordshire is main location of Tesco
for its business. M&S predicted that this
clothing distribution centre provide
services to 150 retail stores in particular
location. Consequently, this will affect
the network of M&S supply chain and
business process will be conducting in a
fast pace.
According to Telegraph, Tesco plc, CEO
Dave Lewis decided to expand its retail
services by providing its product and
service to slum area. Management of this
organisation decided to close down it’s
headquarter in Cheshunt and open 49
supermarket. Tesco plc also plans to
close down company’s 43 stores, which
is not making much profit from its
organisation. In order to achieve the
targeted sales volume, organisation cut
down price values from its 26 branded
product. This will attract more customers
toward Tesco store and consumption will
be increasing. This compels the
management to make contact with more
stakeholders for its new stores.
M&S kept their approach consistent and
rigid in design of clothes for women,
men and kids. In the context of women’s
According to CEO Dave Lewis, Tesco
has to face trust issue in the context of
service in its store. Therefore,
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cloths, earlier old and middle-aged
women prefer M&S clothes due to its
traditional design. Currently,
management has observed that they
are facing issue in selling women
clothes as old women started
demanding new fashion in their clothes.
Therefore, M&S started incorporating
features that can attract the old woman
for its clothes.
management has made arrest some of
these staff of Tesco’s stores regarding
this context. According to Lewis, some
of the manager has been eliminated from
their service to make the environment
better in organisation (BBC News, 2019).
Table 1: Change and Impact on M&S and Tesco plc
(Source: Created by Learner)
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LO2
P2 Evaluate the ways in which internal and external drivers of change affect
leadership, team and individual behaviours within an organisation
Few driving factor exists in the organisational context that influence the business
process of an organisation internally and externally. Thus, it influences the
leadership style, team performance and individual performance in the organisation.
Figure 1: Internal and External Driving factors in organisational context
(Source: Lozano, 2015)
Above diagram shows the internal and external factors of an organisation that
influence the behaviour of leader, team member and whole team. Marks & Spencer
and Tesco plc both are retail organisation and influenced by change of effect at
some point of their business.
Internal Drivers of Change
Capabilities: Leaders and team member capabilities effect the production and
quality of product and service of Marks & Spencer. Therefore, leader must provide a
right direction to employee of M&S so that company can maintain the sustainability in
its business (Leonidou et al., 2015).
Resources: Marks & Spencer is Retail Company that require raw material for its
resource and knowledge in leaders to maintain good relationship with supplier
makes their supply chain efficient. Leader guidance to its team members keep them
updated with different aspect of M&S business that aligns team member’s activities
with business objective (Bossle et al., 2016).
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Invention
A retail company require inventive product and service that earlier never provided by
any other retail companies in order to access competitive advantage. In order to
bring inventive service, leader must apply democratic approach to manage its team.
This would help the team member to open up with new idea regarding the retail
business of Marks & Spencer.
Dissatisfaction: Marks & Spencer manages its employee with training program that
influence them to face the issue comes in its business process. Thus, leaders
motivate its team member so that each team member must face the challenge
comes in business of M&S.
Desire: A retail organisation develops when leaders and employees have desire to
work dedicatedly. In order to manage the changing approach of Marks & Spencer,
leader must clear out the motive to its team members so that they start taking
interest in their daily assignment.
External Driver of Change
Customer: Customer is an external driver that influences the management of
organisation to change its strategies. In the context of Marks & Spencer, company
has changed their traditional approach for designing its clothes so that it can attract
more customers. It influences the leaders and its team member in organisation to
adopt new perception for conducting its business.
Competitors: In the above context, the changing business management of Tesco
has been described with respect to Marks & Spencer business. Therefore,
competitors compel organisation to change their approach in order to sustain their
business in market. Therefore, M&S is bound to change their management
procedure to keep their business consistent and uniform. Leader has to manage the
team accordingly in order to keep business operation in a track (Yunus and Tadisina,
2016).
Investor: For expanding new business, a huge capital is required for an
organisation. However, this factor directly does not influence the leadership style but
capital of an organisation influence the management activity, which affect the
behaviour of leader and its team members. Therefore, M&S invite small-scale
venture to invest in its project so that organisation can invest for its business
expansion.
Technology
In this context, the technological innovation is referred to business of Marks &
Spencer. Technological innovation influences strongly to the operational procedure
of an organisation. Marks & Spencer has adopted many technological concepts and
incorporated it in its operational procedure. Thus, technological innovation has major
impact on the leadership style or managerial approach for business of Marks &
Spencer in the global context.
Government
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Marks & Spencer conduct its business in different nations in the global context.
Thus, government rules changes for employment when organisation moves its
business from one nation to another nation. Therefore, it affects the management
approach and leadership style in concern nation where M&S conduct its business.
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P3 Evaluate measures that can be taken to minimise negative impacts of
change on organisational behaviour
In order to maintain the changing management approach of organisation, it is very
important to mitigate its negative impacts on organisational behaviour. Therefore, the
measures, which need to implement by management of Marks & Spencer, are
mentioned below:
Communication: A change management brings modification in different aspects of
business structure of an organisation (Roshan et al., 2016). Therefore, it becomes
very necessary to communicate properly to leaders and employee about this
change. An improper distribution of information regarding the management change
among employees might create miscommunication in system. Marks & Spencer
conduct a survey in its employees regarding the changes made in management so
that it can observe the awareness among employees regarding change
management. This survey helps the managers of an organisation to understand the
importance behind changing the approach for management. M&S conduct this
survey in official way or unofficial way (Binder, 2016).
Systematic Implementation: A management consist of different aspects for
maintaining the business process of organisation. Therefore, it is very essential for
management to incorporate every change stepwise. Management must plan before
implementing new changes. Firstly, old managing process need to be evaluated very
deeply so that management can understand where to incorporate new changes in
old system. Systematic implementation would help leader to make its employee
about the management change and that make the employee to be prepared to adopt
new changes happened in management (Noe et al., 2017).
Participation of Employee: Marks & Spencer bring change in its management in a
fast pace when it allows its employee to participate in changing management
process. Employee should be allowed to state their opinion regarding the changing
factor in management. In this way, Marks & Spencer implement certain changes in
the management that clears out the role and responsibilities of employee in changing
management.
Theory for critical evaluation for response of organisation toward new
changes in management
Researchers and authors stated that bringing change in the management of an
organisation require a behavioural science and practice in order to incorporate
changes in management process in an efficient and effective way. A proper change
management in organisation improve its performance of different functional units. A
capability of organisation to create innovative idea and its implementation brings a
change in the management process of an organisation. This change management
concept accomplished when employee capable enough to adopt new changes in
management.
As mentioned by Cameron and Green (2015), there are no particular steps, which
change the business strategies of management all of a sudden. It is slow process
that takes places gradually and reformation happen in management procedures in
organisation. In the context of large organisation, the change management concept
is incorporated with proper planning as complete operational procedure is going to
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affects. The accomplishment of new management procedure develops a new vision
for conducting business. Consequently, it affects the leadership style and employee
adopts new techniques in their working process.
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Forces for change is customers trends
Implementation
of Online
Strategy in
M&S business Resisting force is lack of trained em
Forces for
change Forces resisting
changes
LO3
P4 Explanation of different barriers for change and determine its influences
related to leadership decision-making in the organisational context.
Leaders of Marks and Spencer (M&S) faced engagement issues in their team due to
which employees in organisation cannot meet objectives of enterprise within specific
deadline. Presently, M&S brand strength has been reduced from $22.5bn in
2007 to $9.6bn in the year 2018 due to lack of online marketing strategy,
issues in clothes design and quality (marketingweek.com, 2019). Higher team of
the organisation takes decision without examine every detail of issues in order to
take quicker decision due to which it hampered working procedure of M&S.
Simon et al. (2015) opine that lack of engagement survey by higher team before
implementation or modification of strategy mitigates psychological understanding in
between higher and lower team. Force field analysis is implemented in order to
analyse driving and resisting force related to modification of strategy. Managers in
M&S are very much customer oriented, therefore, they change the strategy as per
the recent demands of customers’. Forces for change in M&S are customers’
demands and needs, forces that resist the changes in organisational strategy and
practical skills of employees. However, to maintain their organisational identification
in recent market, managers’ strictly follows customers demand to maintain their
business sustainability. Henceforth, in this case example, forces for change is
stronger than the forces resisting the change.
Figure 2: Changes in Business in M&S using the Force Field Analysis
(Source: learner)
In recent days, M&S faced greater competition due to online shopping. It has been
noticed that competitors from Boden to MeEm has adopted online marketing and
selling features that adversely effects business market of M&S in recent
merchandise community (theguardian.com, 2019). Leaders of M&S faced
communication saturation issues due to which it cannot handle all issues and
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