Strategic Management Report: Analyzing Marks & Spencer's Strategies

This report provides a comprehensive analysis of Marks & Spencer's (M&S) strategic management. It begins with an introduction to strategic management and its application to M&S, a major retailer. The main body of the report delves into M&S's core strategies, including their focus on efficient resource utilization, innovation, and adaptation to market trends. It examines the methods of development using PESTLE and SWOT analyses, evaluating political, economic, social, technological, legal, and environmental factors, as well as internal strengths, weaknesses, opportunities, and threats. The report further explores M&S's leadership style, focusing on its transactional approach, and change management strategies, particularly the application of Kotter's theory. Finally, it addresses M&S's sustainability strategy and offers recommendations and conclusions based on the analysis. The report is based on a case study and current information, offering a detailed overview of M&S's operations and strategic direction.

Strategic management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
M&S strategy..............................................................................................................................3
Methods of Development............................................................................................................4
Leadership style of M&S............................................................................................................6
Change management of M&S.....................................................................................................7
Sustainability Strategy of M&S. ...............................................................................................9
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
Strategic management is a process of management function which drive planning and
organising the resources in such a manner that it took effective strategy into consideration.
Strategies used to give rise to effective planning and formulation of techniques which
organisation desired to use it to their management to enhance their productivity and profitability.
The main aim or strategical management is to develop and implement the plan for present and
future purpose so that employees could be aware of what needs to be done. This report will
shows the management criteria of Marks and Spencer, the company is the largest manufacture
and retailer which came under contract into 1884 by Michael marks and Thomas Spencer and
originated their name into M&S. The company is the dealer of diversified products of food,
clothing and house hold essentials (Allison, 2017). The report will considers all the operations
functions the company perform by analysing their internal and external factors in order to make
their products their customers priority and be competitive into market. These all will be done by
assistance of SWOT, PESTLE and STP approach also the methods of development and change
management will also evaluated.
MAIN BODY
M&S strategy.
Marks and Spencer focus on business strategies and makes its proper execution into their
operations because of that fact the company has reputed brand name into market and high
potential to take competitive advantage. The company use their strategy into three aspects. First
stage includes their execution of their existing resources into efficient manner and gain
competitive advantage to maintain customers loyalty which they look forward with the company
product. Another strategy they use to provide for workforce efficient through encouraging them
with transformational style that make sure the work lead to faster processing. Also, the company
study about all the external forces which could become threat for its existence into future and
uncertainties may arise for which they develop plans according to the same. Into the next step,
the company focus on being innovative in terms of their production and procedure so that it
could be adjustable into dynamic market trends (Berisha, 2017). These all strategies will make
sure sustainable growth of the company. Moreover, change management is also necessary to be
implemented at regular intervals because of changing demand of customers, for that instance,

company could to adopt leadership style to influence their employees towards innovation and
creativity and enhance their business through digital sources and exploit e-commerce sector into
their consideration. These plans are beneficial to grow and expect large expansion for many
years into existing or new market. Offering qualitative product is the major task of the company
which standardised their products into market. Their strategy influence on factors which could be
better reconcile into their operation and maintain power and authority towards competitive
rivalry. They could modify their products ion flow with changing trends (Boskov, and
Magdinceva Sopova, 2018).
Methods of Development.
Development is necessary for prospering growth with context of M&S, these methods could get
analysis by assistance of PESTLE tool. This will undertake all the external factor that the
company make decision regrading its betterment.
PESTEL Analysis
This tool includes its most essential factor in order to give accurate analysis of external
environment of M&S. There factors are described below:
Political Factors: This factor categorised into several government regulations over
policies and change in taxation rates, custom duties, subsidies and many more. Through these
factors companies work environment get affected as they have to regulate these changes into
their operations. M&S has affected positively by free trade policy which make them able to
distribute into globe (Carter, 2020). Also, Brexit amendments change the whole scenario of
revenue and impact on tariff policies due to which organisation needs to push up their cost and
result in rise in prices.
Economic Factors: Economy of country get affected by demand and supply, rates of
inflation, fluctuation in monetary rates. These factors eventually depended on organisations
functions which could negatively affect the economy. M&S needs to be cost effective in order to
generate positive response towards their image otherwise it could be hurdle for company growth.
Socio-cultural Factors: These factors consist social and culture aspects of society that
clearly shows customers demands and changing trend into market. Organisation could avail the
benefit of enormous profit and expansion through focusing on these factors. For which M&S
needs to be innovative into their products and serve a unique experience to customers which will
be beneficial to diversifying the product segments.

Technological Factors: This factor includes awareness regarding technological
opportunities and implement in practical aspect as M&S has adopted online selling through
which it get benefited with large customers and increment in turnover.
Legal Factors: Organisation runs under legal provision to better grow into society. That
includes all the laws and acts regarding equality, discrimination, and maximum payback. M&S
undertake all these laws and work under government influence so that they must not lack with
society support (Chidiac, 2018).
Environmental Factors: These factors consist environment benefits through eliminating
wastage and reduce pollution through organisation production. M&S use the strategies to recycle
their waste materials which create positivity into society and government policies are fulfilling
at its best.
Internal environment could get easily identify by SWOT analysis of M&S. it consist four factors
which are mentioned below:
SWOT analysis
STRENGTHS WEAKNESSES
 Main strength of M&S is their well
established brand name due to large
operation into whole world.
 The company has strong financial
positions and reputation to acquire
investment for research and
development which will ensure
implementation of innovative
production ( Demir, 2017).
 The company has inefficient product
distribution channel which results in
declination into sales.
 The company has served outdated
products which is not on behalf of
customer preferences therefore, lacks
with customer retention.
OPPORTUNITIES THREATS
 New product development is the best
opportunity to grow and expand their
brand by using innovative technologies.
 The company could easily grasp large
market share through hiring efficient
 Due to same products segments and
option for customers. The company
face a lot competition into segmenting
market.
 Regular changes could be the threat for

employees and provide with effective
training.
company as it fluctuate in employees
efficiency.
Leadership style of M&S.
Organisational activities are severely large and complex to handle with single person.
Due to which team will be allotted, department gets separated and structure has formed which
classify the management function into better way. The employees could not work without
guidance and instruction otherwise work will not get completed on time. For that instance,
leaders play crucial role in showing the path and ways to perform. The not only instruct their
employees but also motivate through effective ways. For that purpose leaders should acquire
effective leadership style in order to prove their knowledge into better ways. Leadership style
assure workplace activities and eliminate the necessary obstacles from working criteria. They are
the only persons who could decide to whom gets rewarded and further focus on performance
level (Gladden, 2017). M&S leaders work with transactional style of leadership which is
effective and easy to understand and implement its significant power. Transactional leaders are
allow to take restrict free decisions and encourage effective flow of communication between top
and lower management. This style is the way to decrease chances of uncertainties as all the
strategies are done with future preferences.
Transactional leadership style has divided into two parts with provides leaders with
different powers and authority and flow of management function into other ways. As per first
part of leadership style, leaders of M&S believes in motivation and go through with effective
ways by providing bonus and rewards for good performance. Leaders provide these benefits to
the most effective workers who has performed well. Through these styles and approaches to
motivation employees get influence and desired to work more hard. Into other part, leaders are
categorised with different authorities that define them as active and passive leaders. Active
leaders takes active participation on checking and guiding employees performance and provide
solution to their issues (Hansen, 2017). These leaders are stand by their side for their support and
keep an eye on them. Whereas, passive leaders does not actively participate in checking on
performance at regular basis. They only emphasis on employees task after its get complete and
enable their mistakes to get solved by their reviews as they have to go through with any problem
regarding the task. M&S may use these both style of leadership as they have huge operations and

various department which require more of leaders to manage diversifies range of activities and
employees feel valued as well as work with fuller efficiency
Change management of M&S.
Change is a necessity of every organisation and environment. Without change an
organisation could not grow as per leading changes in customers mind, government policies,
market trends and technological up gradation. These all needs to be change as per changing
demands and market requirement. M&S has facing a giant change into Brexit policies through on
its production and cost. Here is evaluation of how the company has facing these challenges of
Brexit into the economic factors (Kodali, and Bharadwaj, 2018). Economic change reflect price
inflation and innovative products as per customers demand. These change not only reflect into
society but impact on internal environment of organisation so that effective strategies needs to be
formulate to get ready for its impact.
In order to manage change into organisation, M&S has decide to acquire Kotter's Theory
of managing change. Through which company could undertake the positive acquisition of
environmental crises and enhance the operation by being effective into qualitative section of
production. In order to enhance change, leaders are liable to operate into into management level
by being proficient into their work and adapt reliable technique to aware employees about new
policies and segmentation. M&S follow stage of this theory:
Create a sense for urgency: Change management require less time to implement and
come up with new change into market on an urgent basis. The company motivate employees to
actively participate as much as possible.
Forming powerful guiding Coalition: M&S search for effective leaders in order to
maintain change into organisation. They choose these leaders by taking cross cultural aspect into
consideration.
Developing a vision and strategy: In order to encourage change, M&S decide their
vision first where they want to go and what they wants to achieve. After that they implement
effective strategies so that employees and leaders work together to its execution (Laužikas, and
Miliūtė, 2019).
Communicating vision: The vision and objective behind the change management needs
to be convey in proper manner. M&S ensure that their leaders must tackle their workforce so that
change could also tackle at most crucial times.

Removing Obstacles: M&S find out the areas which become hurdles in adopting
effective change and eliminate those people or elements who are restricting the growth.
Creating short term wins: Employees feel motivated after completing their task and
wins a short terms goals. Employees feel like they have achieved something what they targeted
and with expectation of getting its reward. M&S reward these employees in order to motivate
them more.
Consolidating gains: M&S check on their performance and results by comparing past
and present performance. So that improvements can be visualize and being focused on them to
maintain change into organisation.
Anchoring change in the corporate culture: it is the responsibility of leaders to
maintain change culture into organisation so that innovation and product development could take
place into effective manner (Owich, 2018).
Therefore, by engaging with these factors, the company could fulfil their objective and manage
change into their productions that leads to provide benefits with future growth and sustainability.
Sustainability Strategy of M&S.
Sustainability refers to secure organisation resources weather tangible or intangible, employees
stakeholders and suppliers needs to be well settle in order to maintain their appropriate working
environment. Also, these strategy works as future saviour that assist into crises and uncertainties.

Sustainable growth is essential in M&S history as the company has faced the dilution of
technological up gradation into their production serving. So that they are in needs of strategical
formulation to maintain their competitive edge against their close competitors. this will impact in
employees area of capabilities and skills. M&S formulate strategical plans into two segments
which includes plan A and B. plan A focus on future stability and their commitment towards
marketers and customers (Martin, 2018). Factors that affect on companies social and
environmental issues are solved during implementation of this plan. These issues would not be
taken off into future and require solution at urgent basis.
M&S focus on mainly three factors to welfare for their people who they serve, the planet
in which they are working and places. As per the plans, company makes its huge contribution
regarding community and society. The company build up their aim to support local communities
in 1000 of number by the upcoming times. Also it has supported their area by indulging in free
activity participation to better understand their business and goals. When come to people, M&S
has supported their living standard as well as health concerns simultaneously. Through this
instance, 10 million people are in support of of their kitchen varieties which has complementary
diet food to generate habits of eating healthier and live healthier. The company eliminate use of
plastic material to support pollution disruption and concern about recycle and reuse of materials.
Through these effective strategies no economy will suffer through harmful substances and lead
to better quality of life.
RECOMMENDATIONS
 The company must evaluate their production cycle and enable effective distribution
channel for delivering products and enhancing customer loyalty. STP approach will be
the best method to analyse the segments and people who are looking forward for their
product purchase.
 The company have already developed sustainable plan for future purpose and
community support. They must look forward for its effective working and fulfilment of
their promises to community and customers.
 The company use effective leadership style. therefore, they could easily analyse where
further management is require and adopt other styles from the list in order to more
reliable and authenticate.

CONCLUSION
The report on strategical management has explained the facts and significance towards its
growth and development. Internal and external analysis drives the strength and weakness of
companies position through which it could force their management towards better performance.
The company has strong build up of its strategies which will benefit them into future and present
performance by boosting up employees morale and encourage their contribution in enhancing
change into management. This change is significant in company in order to move in flow with
market trends and involve in community services for welfare of society so that it eventually
benefit to companies sustainability and brand image.

REFRENCES
Books and Journal
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INSIGHTS INTO CIVIL SERVICE ORGANIZATIONS. Journal of Security &
Sustainability Issues, 8(4).
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