Innovation and Change Management Report: M&S Case Study, BU7030

This report analyzes innovation and change management within Marks & Spencer (M&S), a UK-based retail company. The research begins with an executive summary and table of contents, followed by a company background, and then delves into M&S's strategic management processes and specific innovations, including customer mapping via IT, recipe development, and digital media promotions. The report evaluates the outcomes of these innovations, highlighting their role in customer retention and competitive advantage. Furthermore, it identifies internal and external environmental factors through SWOT and PEST analyses, assessing their impact on M&S's operations. The study also examines the contribution of the management system to the success of the innovations and proposes potential future innovations. Finally, the report concludes by summarizing the key findings and implications of the research, offering insights into how M&S can sustain its competitive edge through continuous innovation and effective change management. The assignment follows the Faculty of Business & Management assessment brief for the Managing Innovation module, BU7030.

Running head: INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS
INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS
Name of the student
Name of the university
Author note

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Executive summary
The concerned research aimed at identifying the needs of innovation in an organization while
evaluating the case of Marks and Spenser (M&S). The research enumerated the different
innovations that are initiated by the organization and the manner in which it supported the
venture in achieving a competitive edge. On the contrary, the research also aimed at evaluating
the current micro and macro environmental considerations in order to maintain the effectiveness
of the innovative potentials of the organization. Lastly, the research enumerated the different
technologies that might be implemented by the organization in order to facilitate sustenance of
the venture in the competitive markets.

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Table of Contents
1. Company background..................................................................................................................3
2. Strategic management and processes associated with company’s innovations...........................3
2.1 The innovations that are initiated by the business................................................................3
2.2 Strategic management processes for the innovation..............................................................5
2.3 Outcome of the innovations...................................................................................................6
3. Identification of internal and external environments of the organization....................................7
3.1 Micro environmental analysis (SWOT).................................................................................7
3.2 Macro environmental analysis (PEST analysis)....................................................................8
3.3 Assessment of the micro and the macro factors..................................................................10
4. Contribution of the management system to the success of identified innovations....................11
5. Two potential future innovations...............................................................................................12
6. Conclusion.................................................................................................................................13
References......................................................................................................................................14

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1. Company background
Marks & Spencer Group plc is a British multinational retailing organization, which is
headquartered in Westminster, London. Michael Marks and Thomas Spencer established the
concerned venture in the year 1884 (Marksandspencer.com., 2019). The growth of the business
was based on the uniqueness of the propositions relating to apparels, home products and
luxurious food products. The diverse range of products that were offered by the organization
supported the sane in achieving a competitive edge over the other players in the market. The
concerned venture currently holds around 979 stores across UK, which specifies the
unprecedented growth of the venture in the respective markets (Marksandspencer.com., 2019).
The revenue of the organization was £10,698.2 million and the operating income was
£29.1 million by the end of the fiscal year 2018 (Marksandspencer.com., 2019). It supported in
understanding the continuous growth process that is facilitated by the organization through
continuous innovation.
2. Strategic management and processes associated with company’s innovations
2.1 The innovations that are initiated by the business
The innovations that were facilitated by the concerned venture supported the venture in
continuing the effectiveness of the operations while adhering to the requirement of the
customers. The major innovations that were initiated by the business were customer mapping
through IT systems, development of new recipes and utilization of digital media for promotions
(Marksandspencer.com., 2019). The concerned venture aimed at developing the innovations in

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the business processes in order to enhance the service and product propositions of the business
while adhering to the market trends and demands.
Hvass (2015) noted that frequent innovations in the operations and the product or
services offered by a venture assists the venture in continuing the effectiveness of the operations
in adherence to the needs of the customers. Customer mapping through the utilization of the
suitable IT systems has supported the organization in identifying the preferences of the
customers while moving around stores and discovering small tweaks. Customer mapping is one
of the major elements through which the demand of the customers might be assessed by
organizations in order to maintain the effectiveness of the propositions (Pantano, 2014).
On the contrary, the concerned venture also took innovative measures for bringing forth
modifications in the recipes that are delivered by the venture. The innovativeness of the
organization provided the venture with attracting the attention of large amount of customers
towards the customizable recipe options. Kim and Min (2015) stated that the frequent
innovations in the propositions help an organization in retaining the loyal customers through
adherence to the changing tastes and preferences of the venture. The different innovative
customizable options that are facilitated by M&S have supported the venture in retaining the
trust and loyalty of the target customers towards the propositions (Marksandspencer.com., 2019).
M&S utilized different digital media and social media platforms in order to communicate
with the target audience and make the venture aware of the subtle modifications that are being
initiated by the business (Marksandspencer.com., 2019). It has supported the business in
enhancing the PR operations of the venture. Pantano et al. (2017) noted that communication with
the customers through different social and digital media platforms assists an organization in

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developing and modifying the range of product or service offerings through delineation of the
preferences of the customers.
2.2 Strategic management processes for the innovation
The major aspects of the strategic management processes that are initiated by the
organizational management are reliant on the uninterrupted functioning of the systems, which
helps in continuing the effectiveness of the innovativeness of the business (Tidd, 2014). The
application of the strategic management framework on the existing processes of the M&S
supported in continuing with the systematic operations. The framework supported the
organization in identifying the present situation that is faced by the venture while doing business
in the different markets. Cao (2014) stated that the assessment of the organizational situation
helps a business in identifying the recent trends that are shaping the operations of the retail
industry. In this relation, the M&S has taken steps to review the current situation of the market
for the suitable understanding of the objectives and creation of the corporate strategy relating to
innovation (Marksandspencer.com., 2019).

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Figure 1: Strategic Management Framework
(Source: Kant Hvass, 2014)
Tidd (2014) stated that the continuous innovativeness of an organization supports the
goals of continuing the sustainability. On the contrary, the competitive strategies that are
initiated by the organization have supported the venture in achieving a competitive edge while
operating in different economies. Kamasak, Yavuz and Altuntas (2016) stated that the
competitive strategies of an organization helps the venture in developing the propositions in
adherence to the demand of the customers. The delineation of the strategic decisions supported
the organization in facilitating the uninterrupted implementation process in adherence to the
needs of the business. Monitoring the processes and controlling the operations of innovation has
supported the organizational management in upholding the effectiveness of the processes in
adherence to the concerns of the business.
2.3 Outcome of the innovations
The innovations that were initiated by the concerned business supported the venture in
retaining the base of loyal customers (Pantano et al., 2017). The innovations that were initiated
by the concerned venture supported in remodeling the product and service offerings in adherence
to the changing trends and preference patterns of the customers. The innovations that were
considered by M&S supported in facilitating systematic functioning of the processes though
identification of the demand of the customers and development of products in- line with the
preferences. On the contrary, the utilization of the digital channels has supported the business in
continuing their proficiency while marketing the line of product offerings. Bigliani et al. (2015)
stated that the innovativeness of the idea helps an organization in continuing the effectiveness of

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the operations in adherence to the preferences of the customers. In this context, the innovations
that were initiated by the concerned business supported the venture in upholding their
competitive edge through retention of the loyal customer base. The frequent innovations that
were initiated by the business supported the venture in achieving the competitive edge over the
other players in the market.
3. Identification of internal and external environments of the organization
3.1 Micro environmental analysis (SWOT)
Strengths
 Diverse range of product and service
offerings
 Brand value
 High focus on enhancing the customer
experience
 Enhanced infrastructural growth in the
e-commerce industry
Weaknesses
 Heavily reliant on the UK markets
 Poor expansion rate and financial
condition
 Frequent product recalls affected the
confidence of the customers
(Carayannis, Sindakis & Walter,
2015)
 Higher labor cost in some of the
markets which enhanced the operating
expenses of the business
Opportunities
 Plans to invest on the developing
markets in Asia (Carayannis et al.,
2014)
Threats
 Threat of new entrants
 Depreciation of value of Sterlings after
Brexit (Evans et al., 2017)

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 Dynamic online presence for attracting
the attention of the customers
 Remodeling the clothing segment of the
organization and simplifying the
operational model
 Drastic changing trends of the apparel
industry
 High competition in the UK markets
Adapted from: (Marksandspencer.com., 2019)
3.2 Macro environmental analysis (PEST analysis)
Political  The free trade policies has supported
the organization in significantly
reducing the sourcing costs which
supported the business in continuing
the effectiveness of the operations
under the supervision of professional
personnel
 Brexit has created a situation of
uncertainty for the organization related
to trade-ins and trade-offs which might
affect the potentials of the concerned
venture in continuing the systematic
functioning of the systems (Kim &
Min, 2015).
Economic  The market volatility and fluctuations
in the global economy might affect the

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potentials of the organization in
developing resources or facilitate the
operations that are planned by the
business.
 The growth of the small scale retailers
and the enhancement in the product
price as an adverse effect of Brexit
which might result to the incapacitation
of the concerned venture in continuing
business with the venture rate of
profitability (Demirkan, Spohrer &
Welser, 2016)
Social  The concerned venture undertakes
several initiatives relating to the
enhancement of the CSR activities
through enhancement of living
conditions among the different
communities. The social contributions
that are made by the organization has
supported the venture in developing a
positive brand image (Anderson,
Potočnik & Zhou, 2014)
 Product recalls have affected the

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competitive edge of the business
through negative influence on the
consumers’ buying behavioral patterns
(Kim & Min, 2015)
Technological  The concerned venture has taken steps
to develop partnership with different IT
based organizations like TCS which
will support the uninterrupted
functioning of the business through
diverse technologies (Ostendorf,
Mouzas & Chakrabarti, 2014)
 The concerned venture developed Plan
A 2025 with the aim of supporting the
sustainable needs through
implementation of various technologies
and policies for the common wellbeing
of the stakeholders and the environment
(Morgan, 2015)
Adapted from: (Marksandspencer.com., 2019)
3.3 Assessment of the micro and the macro factors
The assessment of the internal and external environments of an organization assists the
venture in continuing their effectiveness while developing strategies (Hristov & Reynolds,
2015). The micro and macro environmental analysis of an organization delineates the different

11INNOVATION AND CHANGE MANAGEMENT IN ORGANIZATIONS
issues and opportunities that are faced by the organization while operating in adherence to the
objectives. In this context, the research will conduct a micro and macro environmental analysis
of M&S and thereby evaluate the results for understanding the position and the modifications
that might be induced in the structure for the uninterrupted functioning of the systems
(Schaltegger, Lüdeke-Freund & Hansen, 2016).
The micro environmental assessment of the concerned venture portrayed that the major
strength is comprised on the brand value and the diversity of product offerings of the business.
The diverse range of products and the enhanced brand value has added a competitive edge of the
business (Pantano et al., 2017). On the contrary, the development of the resource base on the
assessment of the needs of the customers has supported in forging developments in the business
model. However, it was also noted that the concerned venture heavily relied on the UK markets,
which restricted their scope of expansion in the global economies. On the contrary, the changing
trends in the apparel industry also affected the operations of the business. However, the
opportunities faced by the organization to expand in the developing countries of Asia continent
hold a greater opportunity for supporting the sustenance of the venture (Marksandspencer.com.,
2019).
The macro assessment of the concerned venture clearly exhibited the different issues that
are faced by the venture due to the unclear outcomes of Brexit (Foss & Saebi, 2017). On the
contrary, the changing taxation policies and free trade options has supported the organization in
continuing the effectiveness of the operations in adherence to the needs of expansion (Ostendorf,
Mouzas & Chakrabarti, 2014). Moreover, partnership and collaboration with different tech
giants has supported the organization in achieving a competitive edge over the other players
through maintenance of global online presence (Kim & Min, 2015).