Understanding and Leading Change: A Case Study of Marks and Spencer

Desklib provides solved assignments and past papers to help students succeed.

UNDERSTANDING AND LEADING CHANGE

Table of Contents
Introduction...................................................................................................................... 2
LO1.................................................................................................................................. 3
LO2.................................................................................................................................. 8
LO3................................................................................................................................ 10
LO4................................................................................................................................ 14
Conclusion..................................................................................................................... 17
Reference list................................................................................................................. 18

Introduction
Globalisation and other external factors leads to change in an organisation it is
extremely essential for an organisation to change with the rapid developments. The
study will be depicting change on Marks and Spencer and its impact on the strategy as
well as operations. Marks and Spencer is a retail organisation based on UK with almost
80,787 employees working for its betterment. Under the leadership of Steve Rowe and
Archie Norman, the organisation has an operating income of £670 million and net
revenue of £10.7 billion (Marksandspencer.com 2019). M&S offers several products and
services including foods, grocery, clothing and merchandises.

LO1
P1Various organisational examples of change
In the modern generation, there is a dire need for the organisation to changes their
respective organisational structure that can allows them to embrace the rapid changes
caused due to globalisation. M&S is a world-renowned retail organisation that has
significant revenue of £10.7 billion. Michael arks and Thomas Spencer founded the
organisation in the year of 1884 and at present, the organisation has 1463 locations all
around the world. In this section, M&S will be compared with Tesco, which is known as
the retail giant and has several branches across the global platter.
Overview of case
Marks and Spencer has been facing several problems in the fashion industry. The
development of the technological sectors has led to the growth of several E-commerce
organisations that has been extremely famous among the common people of UK.
Moreover, the marketing approach of M&S has offended the people of UK. Despite of
the fact that it is influential for the organisation to take risks in the highly competitive
market, this can counter back at the organisation and a similar situation has occurred
with M&S. The downfall of the sales has allowed the organisation to close down several
of M&S stores across UK (Wood, 2019).
The tables below will be depicting the driving factors that affect the organisational
change:
Marks and
Spencer
Changes Drivers of
change
Impact on
strategy
Impact of
operation
Economic
changes
Brexit
Brexit has led to
several
uncertainties in
and has a direct
influenced the
traded a
commerce of the
retailers of UK.
Similarly, M&S
also has been
affected due to
brexit (Ramiah et
al., 2017). The
decreased value
of pounds has
caused several
impacts in the
financial
operations as
well as on their
The decision of
UK leaving the
markets of EU
has led to
several
uncertainties that
has affected in
every aspects of
the
organisational
strategy
including
financial,
business,
promotional as
well as
marketing
strategies.
Brexit shall affect
Marks and
Spencer directly.
M&S has to
ensure that their
business
operations are
stopped in the
markets of EU.
Moreover, the
organisation will
be losing the EU
staffs and shall
be facing a
shortage of
labours in the
market.

international
trade.
Controversies Fashion knickers
M&S has been
involved in
several
controversies
that involve the
decline of sales
growth in both
food as well as
clothing sectors
(Bide, 2018).
Due to harsh
competition from
other retailers
such as Next,
Zara as well as
Tesco, M&S had
to close their
shops in UK.
As per the
reports provided
by Hubbard
(2017), the
Marks and
Spencer, closing
the stores shall
be beneficial for
the organisation
in the near
future. This shall
allow the
organisation to
gain suitable
revenue in the
future. The
strategy of
getting their
stores off the
main areas in UK
shall be
beneficial for the
organisation in
the future.
This shall allow
the organisation
to agin suitable
time for
analysing the
trends in the
markets and look
for an
appropriate
strategy for their
come back in the
market suitably.
Taking the stores
off the streets of
UK shall allows
the organisation
with reduced
investment over
the business that
shall save cist
however, the
organisation will
also not be able
to receive profit
from the
customers and
shall be creating
issues for the
customers as
well as the
stakeholders
Globalisation Product
development
and marketing
The fierce
competition in
the retail markets
have resulted in
a steep downfall
in the sales of
clothing as well
as food section
(Souza-Monteiro
and Hooker
2017). In order to
ensure that there
is significant
sales growth, the
management of
The marketing
strategies are
directly related to
the product as
well as services
that are offered
by the
organisation.
The
characteristics
as well as new
features of the
products that has
been developed
by the
organisation has
to be portrayed
through the
The development
of the products
as well as
services are
extremely
necessary for
ensuring that the
organisation has
a constant
growth as well as
development and
also increases
the chances of
sales growth s
the trendy
products as well
as services are
high appreciated

M&S has to
ensure that the
products as well
as services that
the organisation
offers for the
customer are in
accordance with
the existing
trends.
promotional
channels in order
to reach the
common people.
by the
customers.
Table 1: Marks and Spencer Drivers of change
(Source: Created by the learner)
Tesco Changes Drivers of
change
Impact on
strategy
Impact of
operation
Economic
changes
Inflation rates
and economic
recession
The economic
rates have been
changing in a
fluctuating rate in
UK and this has
affected the UK
industries
including Tesco.
Apart from this,
the inflation rate
has been high
that affects the
business
operations of
Tesco. The
pricing strategies
have to be in
accordance with
the sending
behaviour of the
customers. Since
the economic
recession in the
year of 2008 has
affected the
markets.
The political
instability of UK
has a significant
effect in the
growth as well as
development of
the various
industries
operating in UK.
Several political
laws associated
with employment
as well as
international
trade have been
altered due to
brexit that has
affected the
strategy of
Tesco.
Being one of the
largest retail
organisations in
the world, Tesco
ensures to keep
a flexible
organisational
structure and a
highly
experienced
management
that mitigates the
issues related to
their trade as
well as
commerce.
However, the
organisation has
to ensure that
the laws as well
as legislations
passed by the
government are
followed suitably
that shall allow
the organisation
to avoid further
situations of
conflicts in the
future.
Globalisation Product
development
and marketing
The
developments of
the products as
Tesco has been
influenced on
their business

In the modern
generation the
retail
organisations
strives towards
achieving
suitable benefits
and in the
existing markets.
However, the
development of
the technological
sectors has
affected the
mindsets of the
customer highly
and they want a
diverse variety of
products as well
as services
being available
under the same
roof.
well as services
are regarded to
be extremely
necessary and
since there is a
fierce
competition in
the existing retail
markets,
organisations
have to ensure
that the
customers are
satisfied with the
goods and
services.
Globalisation has
affected the retail
markets
venture in the
markets of UK
mainly however;
they have been
operating their
international
operations as
well. The
products as well
as services
offered by the
organisation
include furniture,
foods, gadgets,
as well as
flowers.
Diversified
change
Product
diversification
There is an
intense
competition in
the global market
and it is
obligatory for the
organisations to
embrace the
rapid change of
globalisation and
diversification of
the products as
well as services
are regarded to
be of prime
importance for
the organisations
operating in the
global retail
markets.
In order to
eradicate the
issues involving
extremely high
competition,
M&S has altered
their traditional
product portfolio
that allowed the
organisation to
enhance their
sales of specific
products as well
as services
significantly. In
addition to this,
the change in the
strategy allowed
the organisation
to diversify their
risks.
Changing the
traditional
product portfolio
allowed Marks
and Spencer to
mitigate the
issues related to
their sales
operations and
allowed the
organisation to
gain the
attraction of the
customers. This
significantly
affected their
overall revenue
as well as
reputation in the
markets
positively.
Table 2: Drivers of change for Tesco
(Source: Created by the learner)
The tables above have depicted different drivers that lead to organisational change. The
tables above have depicted the drivers of change of Tesco and Marks and Spencer.

The tables have depicted the political, globalisation as well as economic factors that
influence the operational procedure of both the world-renowned retail organisations.
The uncertainties aroused due to brexit and its impact on the business of the retail
organisation in the future has been depicted in the table. In addition to this, there is a
detailed comprehension of the various aspects as well as influences of product
development in the growth of the organisation in the market that is comprised within
globalisation, which is regarded as an influential driver of change. Furthermore, the
political factors that affect the operations of the organisation have also been discussed
in the table.

LO2
P2 External and internal drivers of change that can affect individual and team
behaviour in the venture
The following depicts the internal drivers of change for Marks and Spencer:
Political change: This has direct influence on the leadership style that has to be
developed by the leaders in order to ensure that the organisation cooperates with the as
well as legislations that are passed by the government as it affects the operational
procedures that are related with employment as well as labour policies. Apart from this,
the teams that are comprised of the employees can be highly affected due to several
legislations. The performance of the teams can get affected that posses as an internal
threat of M&S due to political change. Brexit has led to shortage of skilled labours in the
markets of UK that can result in reduced productivity as well as efficiency of the
organisation.
Diversified interests: Several functional departments of M&S have their individual
roles as well as responsibilities towards the betterment of the organisation and
therefore, the leaders have to alter their leadership styles in accordance to it. Moreover,
the leaders have to ensure that their approach towards the organisation has direct
reliance with the requirements that are essential for surviving in the randomly changing
market. The teams are also affected from the leadership styles.
The following are the external drivers that affects that affects M&S:
Globalisation: It is extremely necessary for the organisation to embrace the rapid
changes of globalisation that shall promote the growth of development of suitable
products as well as services that shall allow the organisations to receive suitable
outcomes in order to attract customers in bulk. This also promotes the sales growth
highly and increases the customer satisfaction.
Economical change: This is regarded as an external change that affects M&S in
several ways. The employment as well as unemployment rates are highly affects the
operational procedures of M&S. The uncertainties due to brexit have led to reduction of
skilled labour force in the markets of UK that has a significant effect on the development
of the operational procedures of M&S.
P3 Measurement for minimising negative impact
In order to minimise the negative impact of change in M&S, the leaders have to ensure
that the entire organisation works as a single unit and develop suitable communication.
This shall allow the management and the employees to communicate suitable pieces of
information regarding the operational procedures and the barriers as well as risks
regarding the trade and commerce (Hayes, 2018). Transformational leadership allows
the leaders to have a close supervision over the team while team development theirs
such as Tuckman’s team development theory shall allow the leaders to develop strong

teams that can allow M&S to mitigate the issues related to their clothing and food
section (Forsyth, 2018).
In order to eradicate the issues faced by M&S in their clothing and food section, it is
obligatory fir the management to incorporate the modern technologies and emphasises
on E-commerce. M&S has to make sure that the online services include a diverse
variety of products as well as services. Furthermore, it is also essential for the
organisation to maintain a suitable way of approach while promoting their products as
UK has several classes of public and ill publicity takes less time to spread with the
application of the social platforms.

LO3
P4 various barriers and their influence in change
In the opinion of Maitlo et al. (2019), during changes in the venture, organisation faces
various barriers, which prevent them to imply the change in an appropriate manner. The
main barriers related to change in the venture of M&S are discussed, which are followed
by-
Various barriers for change
Figure 1: Different barriers for change in M&S
(Source: Created by learner)
Poor communication
As commented by Moore et al. (2018), in time of taking decision related to the changes
in the structure of business, organisation should communicate with all employees for
gathering their opinion. In case M&S, as they face huge loss in their clothing products,
they have decided to develop their online presence in a lucrative manner. In this
context, without effective communication, they are not able to implement the plan
properly, which can reduce their success rate in the competitive market.
Failure in order to involve employees
On the other hand, Rafferty and Restubog (2017) argued that inefficiency of
management could be another barrier for implementing change in the organisation. In
case of M&S, if the managers do not involve employees for increasing their sale through
Various
barriers for
change
Poor
communicat
ion
Failure in
order to
involve
employees
Wrong
interpretatio
n of
changes
Budget
issue

online, it can create hinder for them to achieve expected success. In addition to this,
along with the changes in sales process, they also try to bring improvement in their
fashion sector so that M&S is able to increase their profit level in the market. Therefore,
managers should create plan for their upcoming activities such as market research,
improvisation in cloths so that all employees are aware of their duty. If it is not
conducted, changes can be implemented in a proper manner.
Wrong interpretation of changes and budget issue
Many a times, it is also found out that organisation is not able to interpret properly about
their ideas related to achieving changes in the venture. For example, in case M&S, their
target is to bring improvement in their clothing items. If employees do not research on
the current market, they will not be able to get fruitful outcome. As a result, the profit of
venture from this change will not be increased in an effective manner. Moreover,
Doppelt (2017) stated that as revenue of venture is low, they should create budget
before changing. If M&S does not create budget, they can face issue related to their up-
coming activities.
Its influence in leadership decision-making
Different barriers influence the decision-making process of leaders in a various way. As
mentioned by Nahum and Carmeli (2019), if higher authority of organisation does not
explain the changes to leaders in an appropriate manner, they feel disgusted to work.
In case of M&S, it is found out that due to having worldwide presence, inefficiency in
management is noticed. As a result, managers are not able to clarify the changes to all
leaders. It instigates them not to cooperate with the changes. Moreover, if M&S faces
budget issue, it can create a fear among employees related to their job security.
Moreover, as communication process is poor, not all employees of M&S are aware of
their changes. It provides the de-motivation to work. This barrier influences in their
decision-making process. Lack of communication can increase misunderstanding
among workers. As a result, performance level of leaders can be decreased. Therefore,
above-mentioned barriers influence the leadership decision-making in a complete
manner.
However, if managers of M&S are able to communicate with leaders in an appropriate
manner related to their changes such as introducing updated style in their cloths and
online presence in market, they try to cooperate. It helps them to achieve effective result
in competitive market.
M3 Force field analysis
As per the viewpoint of Kumar Sharma et al. (2018), force field analysis helps to find out
the problem in the in the venture for introducing changes. It also assists to get solution
after analysing the problem. Therefore, in case of M&S, this analysis can be conducted
for getting lucrative outcome against the barriers and this are followed by-
Changes
 To bring development in the clothing sector for increasing its sale