Strategic Management Report: In-depth Analysis of Marks and Spencer

This report provides a comprehensive analysis of the strategic management practices of Marks & Spencer (M&S). It begins with an introduction to strategic management and an overview of M&S's background, including its history, mission, and market position. The report then delves into the compan...Read More

Strategic management

Table of Contents
Introduction..................................................................................................................................3
M&S - Background Information:................................................................................................3
Methods of Development:...........................................................................................................3
Leadership Style:.........................................................................................................................3
Change Management:..................................................................................................................3
Sustainability:..............................................................................................................................3
Conclusion and Future Recommendations..................................................................................3
REFERENCES................................................................................................................................4

Introduction
Strategic management is plan which includes six-stages so organisation implemented in
order to grab market opportunities (Bawa, Jantan and Ali, 2020). Marks and spencer is a retail
company which is British based and headquarters of this company are situated in London. This is
a well reputed company and it is also listed in London Stock Exchange. This company was
founded by 2 friends naming Michael Marks and Thomas Spencer. This company was founded
in the year 1884. There are more than 1000 stores of this brand across UK and most of them sell
food products, clothing, luxurious items, beverages, etcetera. This company is having a good
reputation and brand image within market. Main mission of firm is to built core value of quality
innovation and trust in market. Vision of company is to be standard against which others are
measured. There are several people of other companies who want to know the strategy used by
this company in order to attain successful stop main reason behind success of Marks and Spencer
is that they mainly focus upon actual and present needs and demands of customers. This
companies involved in research and development that impresses customers a lot.
Background of company:
It is analysed that Marks and Spencer is one of the renowned retailer of fashion industry
within UK. It was founded by Michael Marks and Thomas spencer in 1884 (Chowdhury, 2020).
It has headquarters in London and deals in variety of products such as clothing, household and
foods products. In addition, it is the leading company of fashion industry that is currently
operating business in nearly 30 countries globally. Company has nearly 1500 outlets in different
countries which make it enable to meet with requirements of customers in an efficient manner.
Apart from this, organization also has franchise at global level that helps it to serve international
audience. Here, Marks and Spencer has nearly 65 franchise in Asia and 60 in Europe which
maker it enable to meet market demand that is crucial to earn potential profit margin.
Here, it owns nearly 450 stores only in UK that make company enable to lead fashion
industry of country in an efficient manner. Beside this, organization is also earning potential
amount of profit. As per one of the report, it generated profit of 67.2 million in 2020. Profit of
company is increasing with every passing year that is a symbol of growth and success. It is
monitored that entity has nearly 78000 employees across the globe who works for its growth.
Therefore, with above information, it can be said that M & S is a leading organization of fashion
industry that is able to meet with requirements of buyers in significant manner.

Methods of Development:
It refers to the methods that are used by organizations in order to expand business and earn
potential profit margin. There are ample of methods can be used by companies in order to
develop and grow business in an efficient manner. In addition, it also helps to earn higher profit
margin and enhance the overall profit margin of company (Dixit, 2019). In context of Marks and
Spencer there are several ways by which an organization can develop business. Expansion of
business is also a great approach of business expansion. Methods of development that are being
used by entity are given as under:
Internationalization: It is consider as an important approach to develop as well as expand
business. Here, managers expand business by opening several outlets and stores in other
countries at global level. In context of Marks and Spencer, it is monitored that organization is
operating business in nearly 30 countries at global level. This allows company to earn higher
profit margin that is essential to ensure long term sustainability at international market place.
Expansion: This is another method of development that is widely used by companies
globally. Here, companies can expand business by introducing new verities if products, opening
more number of outlets at national and international level and more. In regards of respective
entity, it is monitored that it has expanded business in different countries and currently planning
to expand business in more countries (Gupta and Tyagi, 2018). It is analysed that organization
has strong growth opportunities in existing market such as India, China, Russia and Middle
EAST. It is monitored that the stores of company in China are performing really well so
managers have decided to open more stores within nation. In addition, company also opened six
new stores in India that allows entity to serve customers in an efficient manner.
Joint venture: It refers to the relationship between two companies that come together in
order to attain common goals. It helps to increase synergy of business by maximizing resources
such as finance and human resources. With this, organization is able to have experience as well
as potential employees who will play a crucial role in overall growth and development of
organization. It is also analysed that M & S has done partnership with Ocado that provides it an
efficient platform to offer products to customers. With this partnership organization has acquired
nearly 50% share of Ocado. This partnership took place in 2019 that proved great success for
both of the company and also provide a range of products and service verities to customers. It is

a 50/50 joint venture that has been associated strengths of M & S, its quality as well as
innovations with the unique and creative technology of Ocado.
Therefore, there are different methods and strategies are used by company in order to
ensure future growth and development. Above stated methods such as internalization, expansion
and more will help organization to earn higher profitability by enhancing its presence at global
market place.
Leadership Style:
Leadership is an activity under which leader are required to provide proper guidance,
motivation as well as inspiration to employees so that they can perform well at work place
(Järlström, Saru and Vanhala, 2018). For this, leaders are required to set a vision, communicate
with subordinated on regular basis. It really helps them to maintain effective coordination at
work place. For this purpose, different style of leadership is given as under:
Authoritative leadership style: In this type of leadership, leader provides proper guidance
and keep proper control over employees. Here, leader dictates policies and procedure to
subordinates. In addition, they also guide employees at each and every step so that they will be
able to attain predefined goals. However, leader provides guidance but keep whole control over
the activities of work force. Here, last decision is taken by a leader that is crucial to attain
predefined objectives. In this, lower autonomy is provided to team members as all the authorities
and control lies in the hand of leader.
Transformational leadership: Under this, leader provides direction to employees by
setting vision. Here, they guide as well as lead subordinates in order to attain predefined business
objectives that is crucial for growth of company (Korff, Biemann and Voelpel, 2017). It is a new
approach of leadership that is used widely in organizations.
Transactional leadership: In this, leaders ensure that all the work within organization
need to be done as per predefined structure so that desired objectives can be achieved in
significant manner. Here, leaders have responsibility to manage daily work of individuals within
company in an efficient manner.
Situational leadership: Here, leaders are responsible to behave as per situation. There are
different kind of situation may occur at work place so it is the responsibility of leader to handle it
in an efficient manner.

From analysis of case study (can Saturday boy change M & S), it has been seen that
Steve Rowe who is being appointed as new boss is & is known as Saturday boy because he first
began working for M & S as a 15 year old boy. The style of leadership which is used by Steve
Rowe is authoritative leadership style. Here, Steve row also delegate necessary authority to
employees but keep proper control over their activities so that predefined objectives cab be
achieved. It also helps company to take quick and better decisions that will be helpful in
enhancement of business. Whereas in comparison with Archie Norman, joined the company in
2017 as chairman and play a great role in overall success of company. It is analysed that Nor,an
previously worked for ASDA that is a well known company of retail sector. Norman is
considered as a great leaders as provide proper guidance as well as support to employees for the
betterment of organization. For example- Steve Rowe focuses on operational issues & changes
them according to situation. Whereas Archie focuses on profit and sales revenue of firm rather
than divisional issues or problems.
Change Management:
Change Kaleidoscope
Here, change is really essential for companies in order to survive at market place for
longer run. This change can be done in terms of tools and techniques used by organization and
also in leadership style that are being adopted by leaders in order to guide as well as lead
employees in an efficient manner. For this purpose, Change Kaleidoscope model is given as
under:
It is a model which was proposed by Hope & Hailey (2002). It is being viewed as most
effective model and is used as strategy for conceptualisation the way of progress. It consist of
external ring in which it focuses on change setting that can empower change (Macke and Genari,
2019). This model comprises of several components such as time, scope, preservation, diversity,
capability, capacity, readiness and power. This model was designed to examine the change in
effective manner. The components in this model assist in managing change in most effective
way.
From this model, it is analysed that change of leadership depends upon situations and it is crucial
to adopt changes with proper considerations. The elements are to be focuses while implementing

change so that it is easy to achieve goals in appropriate way. In context of M & S, Steve Rowe
uses this model which assist him in using of leadership style easily.
It is seen that as per current scenario, it is crucial to have proper communication with
employees on regular basis in order to maintain effective relationship with them. As per the
recent trend, there are several changes introduced within company on regular basis. It is analysed
that leaders of respective entity communicate these changes to employees and motivate them in
an efficient manner in order to get their support. It is monitored that Steve rows adopted
authoritative leadership style where guidance provide by leaders to employees and also they keep
proper control over the activities of human resources (Mondy and Martocchio, 2016). But as per
current time, it is crucial to take suggestions from employees as it provides them a sense of self
esteem. It also help to maintain better relationship between leader and employees that is crucial
for growth and betterment of organization. So, they need to require welcoming the suggestion of
work force and motivating them by providing necessary authority rather keeping proper control
Here, leaders of Marks and Spencer adopt Change Kaleidoscope model with an aim to
bring required changes within entity that is crucial for betterment of whole organization. They
also take suggestions from subordinates that further motivates them to come with more positive
and fruitful solutions. In addition, they are also required to motivate employees by appropriate
ways such as monetary and non monetary that is crucial to get support of human resources for
goal achievement.
Sustainability:
For each and every business entity, it is really essential to prepare appropriate strategies
and policies in order to ensure future growth and success. It helps to get the faith of customers
and sustain at market place for longer run. As per the current time, there is higher completion is
prevailing at market place (Pattanayak, 2020). There are several companies that provide similar
goods and services to customers so it is essential for entity to adopt effective strategies in order
to create a difference at market place. In context of Marks and Spencer, there are several other
competitors such as TESCO, ASDA and more are also present at market place. Therefore,
managers are required to prepare appropriate strategies and policies for the betterment and
growth of company.

It is analysed that M & S is using several strategies such as use of cotton in clothing, purchase
food directly from farmers, sustainable see food and more. These all practices allow company to
ensure long term sustainability at market place. It is analysed that organization emphasis to
minimize the use of plastic by reducing its use as carrier bag, removing plastic covers and more.
It helps to make a strong image of entity at market place (Pattanayak and Sahoo, 2017). Their
aim is to make all their plastic packaging recyclable by 2022. Here, all the food that is being
served by entity to its customers is directly come from farmers thus there is adherence of higher
quality and standards. Therefore, with these techniques and strategies organization is able to
maintain first position in carbon neutral within the retailers of UK. It will help company to
ensure long term sustainability at market place by strengthen its current market position that will
further help to face completion in an efficient manner.
Therefore, it can be said that company has a great plan of sustainability under which they
are minimizing the use of plastic and adopting other strategies in order to maintain positive
image of organization at market place. These all strategies will help to improve the market
position of company and strengthen its position at market place. With this, company is able to
get a positive brand image among customers by proving quality products and use of better
quality raw materials. It will provide higher competitive edge to organization and will be helpful
to attain higher profit margin.
Conclusion and Future Recommendations.
Conclusion
It is concluded from the above report that marks and Spencer is drifting away from its
core values and it has failed to notice that competition has become tougher and higher. There are
several changing trends among customers and new products provided to the clients must be
according to the present trend within the company. There is a mid market segment which marks
and Spencer was operating and it was hit by recession. Due to this, customers move to other
brands like Tesco, Sainsbury, Primark, etcetera. All these are providing products at
comparatively lower rate.
Recommendations:
Here, managers are required to adopt effective plans in order to ensure long tetm
sustainability of company at market place. For this, they can expand business in more countries

as currently they are working in 20 countries. So, expansion will be suitable strategy for
company that will help in business growth and success.
The another recommendation is related to leadership style. Here, leaders are require to
make some changes in their existing leadership style and need to welcome the suggestion of
employees in order to motivate them and maintain positive relationship at work place.

REFERENCES
Books and Journals
Bawa, M. A., Jantan, M. and Ali, J., 2020. The Impact of Strategic Human Resource
Management Practices on Productivity: The Case of the Malaysian Oil Palm
Industry. Malaysian Management Journal. 4(1&2). pp.65-73.
Chowdhury, S., 2020. The ‘4V’Approach in Strategic Human Resources Management Post-
COVID-19. International Journal of Engineering and Management Research. 10(4).
Dixit, U., 2019. Strategic Role of Human Resource Management in Employee Skill
Development: An Employer's Perspective. Asian Man (The)-An International Journal.
13(2). pp.199-203.
Gupta, S. and Tyagi, R., 2018. Strategic Workforce Development. Asian Journal of
Management. 9(1). pp.239-245.
Järlström, M., Saru, E. and Vanhala, S., 2018. Sustainable human resource management with
salience of stakeholders: A top management perspective. Journal of Business Ethics.
152(3). pp.703-724.
Korff, J., Biemann, T. and Voelpel, S. C., 2017. Human resource management systems and work
attitudes: The mediating role of future time perspective. Journal of Organizational
Behavior. 38(1). pp.45-67.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource
management. Journal of cleaner production. 208. pp.806-815.
Mondy, R. W. and Martocchio, J. J., 2016. Human resource management. Pearson.
Pattanayak, B., 2020. Human resource management. PHI Learning Pvt. Ltd..
Pattanayak, T. K. and Sahoo, K., 2017. Strategic Human Resource Management (SHRM)
initiatives for organisational effectiveness: A case study of a process unit. Siddhant-A
Journal of Decision Making. 17(4). pp.343-350.
Sheikhaboumasoudi, A., Isfahani, A.N. and Barzoki, A.S., 2019. Evaluating the influence of
error management culture factors on human resources productivity and strategic human
capital-the case of Mobarakeh Steel Company. International Journal of Innovation and
Learning. 25(3). pp.267-284.
Tsao, C. W., and et.al., 2019. Organizational antecedents of firms’ adoption of strategic human
resource practices: Toward a reconciliation of CEO perceptions and family
influence. German Journal of Human Resource Management. 33(3). pp.223-248.