Marks and Spencer: Impact of Change on Strategy and Operations Report

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This report provides a comprehensive analysis of change management within Marks and Spencer (M&S). It begins by examining the impact of change on M&S's strategies and operations, differentiating between planned and unplanned changes and their effects on revenue, customer relationships, and various sectors. The report further explores the influences of change drivers, using a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It delves into how these factors affect individual, team, and leadership behaviors, emphasizing the importance of employee support and customer satisfaction during organizational transitions. Additionally, the report discusses measures to mitigate the negative impacts of change, including the application of the Burke-Litwin and Lewin's change management models, and the importance of advance planning and continuous monitoring. Finally, the report explores barriers to change and how they influence leadership decisions, applying the Hersey-Blanchard Situational Leadership model to provide practical recommendations for leading through change effectively. The conclusion summarizes the key findings and reinforces the significance of proactive change management for organizational success.
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Understanding and Leading
Change
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Impact of change on Marks and Spencer’s strategy and operations......................................3
P2 Influences that drivers of change have on leadership, team and individual behaviors .........5
P3 Measures to minimize the negative impacts of change on organizational behavior..............6
TASK 2............................................................................................................................................7
P 4 Barriers of change and determine how they influence leadership decision making.............7
P5 Apply Hersey Blanchard Situational leadership model in relation to change.......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
The present business environment is changing at a high speed and it is crucial that change
is maintained on regular basis so that the competition can be faced with equal level of efficiency
and comparative advantage is achieved. There are range of options with the business through
which the change can be brought and every time a modification is made has its own positive and
negative outcomes (Anderson and Anderson, 2010). Mark and Spencer is huge brand which is
dealing in range of products from last many years. It offers variety of goods like clothing, home
products, food items etc. for which it needs to formulate strategies so that it can compete the
other brands. It experiences distinct results of the change which was brought by it in the
business. The following report will talk about the issues which were faced by the administration
while implementing the change and how those were overcome will also be highlighted which
will further assist in understanding the concept in more detail.
TASK 1
P1 Impact of change on Marks and Spencer’s strategy and operations
There is different store of M&S which are spared through the world and it was found that
they are not generating equal level of revenues for the firm. Different departments were having
distinct business which created a need to bring change in the way they are operated so that profit
margins can be maintained. There is different type of change that are brought in an enterprise.
On border concept it can be divided into two parts:
Planned change Unplanned Change
These are those modifications which
are made after doing proper planning and
with the consent of all those who will be
effected by same. These alterations are
brought in business with a view of leading
towards higher market share so that the
present scale of operations can be
developed. These are favorable as the
management are prepared for bringing this
change which increases the chances of
These are entirely distinct variety of
changes which are brought not with the
desire of management but are forcefully
enforced due to demand of external or
internal factors. Depending upon the
nature and extent of change
implementation of same is determined as
a big change is difficult to bring due to
non-planning behind same.
E.g. – Modifications made due to change
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achieving the desired results. As all the
planning is done well in advance
availability of resources are made which
helps in maintaining continuity in business.
These are preferable changes which helps
business to grow in long run.
E.g. – Alteration in the marketing strategies
in order to attract different segment of the
market (Aslan and Reigeluth, 2013)
in the present political situations such as
increase in the tax rates.
To earn higher revenues alteration in the present system of M&S were done which has
the following impact on it:
Raised the group profit margins – It was evaluated that there is a need to bring change
in the business so that every sector in which the referred organization is dealing can experience
growth. Closing of existing non profitable stores were done which helped in improving the
efficiency level of other existing departments. Working was concentrated to only the food
products which helped in concentrating more on them only (Inozu and et. al., 2011).
Jump in the food sales – When the change was made in the business separated stores
were made like different for food products, clothing and house hold items. It helped in division
of management and people responsible for same. This way close monitoring was done which is
essential for identifying the flaws at each section so that accordingly corrective measures can be
taken.
Fall in sales of clothing sector – The impact of change on the appraisals sector was
negative. The sales for same were effected which shows that it was not beneficial for the
management and alteration in same were required.
Improve customer and company relationship – With the change brought by M&S a
positive effect in customer relationship was found as they now can communicate with
department concern more effectively (Bingham and Main, 2010).
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P2 Influences that drivers of change have on leadership, team and individual behaviors
In an organization there are different factors and elements that influence change and each
one of them has their major effect on the work force and team member’s behaviors. In order to
analyze the diverse of change SWOT analysis is done below:
Strength – Every organization has some strong areas which helps it in doing a better
business. These factors act as a driver for change as through focusing them and implementing
same in business the productivity and profitability of business can be improved. The major
strength of Mark and Spencer is that it has got effective management team who has the potential
to innovate the present working style and therefore it can take risk of changing its working
patterns with a view that they will be managed with the given work force. Apart from this it is
one of the most leading brand that has top of the mind recall. As the referred brand is delivering
quality products customer find the offering of M&S worth spending and enjoy the quality of
services received. Apart from this another major driver factor that influence change in business is
that it is has high number of dedicated employees that supports it in bringing change on regular
basis without showing resistance to same (Branson, 2010).
Weaknesses – Though M&S has a range of strong areas it suffers due to its flaws too. It is
UK based enterprise and most of its revenue is generated from the local market which makes it
so much depended on it. Any unfavorable change there may affect the business to a great extent
and hence it is important that it adopts change so that accordingly the balance in business is
maintained. Another area which makes the referred weak is that it does much of products recalls
which effects the brand image to a great extent. Also change is required in M&S so that it can
overcome the weakness of having wastage space in the stores that can be better utilized with new
ideas. It also needs to modify the system so that it can overcome the weakness of flaws in stock
control system. It was found that customers were not satisfied with the products which were
made available through net.
Opportunities – This factor is one of the major element that influence the management to
bring change in the business. The technology is developing at a high speed which shows that by
implementing same in business the productivity of M&S can be raised. Customers can be
provided with better services which further assist in raising the total sales in long run. Through
exploring more areas, the total market share can be increased which is important for retail sector
so that it can grow (Carrington, Deppeler and Moss, 2010).
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Threats – Though it has distinct opportunities, threats and strengths M&S faces distinct
dangers too that are result of internal and external factors like competition or any other. In order
to raise the profit margins, it is required that policies of government are in favor but M&S faces
the danger of flexibility in the political conditions of local and international market. It is
important that distinct strategies are formulated so that the distinct market conditions are dealt
with care. Due to developed rivalry in the retail sector the market conditions become tough and
demands change so that the competitive advantage can be achieved.
The above discussion shows that there are various factors which are influencing change in
the business and hence the same has its great effect on people, team dynamics and management
practices. The manner in which it affects each one of them are as follows:
People – It includes customers of a particular brand. Whenever any change is brought in
the business it effects its stakeholders too. As users of M&S has great role in the growth of
business it is important that they are kept happy and satisfied with the brand. With the
implementation of change a positive brand image is established in front of the customers as they
believe that the research and development team of the firm is active and is concern to make
improvements in its day to day operations. This way it also develops trust among the customers
and the organization and hence the user’s loyalty also increases (Doppelt, 2017).
Team dynamics – In order to achieve success and to use the distinct resources to full
capacity it is important that the work force of the firm contribute towards the growth of business.
No change can be brought without the consent of employees and hence it is important that they
are happy with the modifications made. They help management in implementing to change
which is otherwise difficult if the work force is not supportive. Modifications keep the
employees active and they start believing that the firm is capable of leading in the competitive
world by adopting the required changes periodically. Apart from this with a culture of change
weather it is planned or non-planned helps in raising the work force capacities as they learn from
the new code of conduct and develop personal connections with business. It reduces the
turnovers ratios which is required to maintain the profit margins.
P3 Measures to minimize the negative impacts of change on organizational behavior
Whenever a modification or change is brought in the business it is not certain that it will
always have eh favorable results (Finnigan and Stewart, 2010). There are chances that the
expected results deviate from the actual results and has a negative impact on the business. It is of
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great importance that steps are taken in advance so that the negative impacts of alteration in
M&S can be minimized. With the help of different concept, the risk of change is controlled by
maximizing the value using transformations, technology developments etc. Few theories which
can be applied in same context are Bruke – Litwin change model which is one the most
effective one in understanding and leading to change. According to this model it is decided in
advance that how change is brought like how change will be implemented. When it is decided in
advance that what has to be changed than it becomes easy to formulate plans for the same. It is
required that all the arrangements are done well in advance so that during the course of change
difficulties are not faced (Fullan, 2014). Once it is identified that what will be changed than the
process of implementing same become easy as deviations are therefore less. Apart from this to
ensure that whatever change brought is implemented without having any risk of drawbacks same
are measured against the planned manner. Apart from this there are range of models that can be
used to minimize the impacts of change such as:
Lewins change management model This is an effective model that helps in
implementing change in an appropriate manner to a great extent. Under this the success of
change is ensured by dividing the whole implementation process into three stages which are
Unfreeze, make change and than again freeze. At the first stage the need for modification is
recognized. After identifying it change is brought as per the need and hence again the new
system is made universal at the work place and hence than the work is done as per the same.
The Mckinsey 7-s model – This is another model which helps management in identifying
the area where change is required. Through this model without dong deep analyses it can be
recognized that which act can give better results if modifications in them are made. Strategy,
structure, system, shared values, style staff and skills are the distinct factors which are analyzed
so that a clear image of efficiency level of each model is recognized and hence planning against
them is further formulated (Fyke and Buzzanell, 2013).
TASK 2
P 4 Barriers of change and determine how they influence leadership decision making
Change management is important in organization and play crucial role main reason of
implementing alteration in organization is business environment. because it is dynamic in nature
and make several modifications these can be by both the factors internal and external.
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implementing and managing change is responsibility of leader in business. Thus, leader is the
person who manage entire working of business but everything has some barriers and same
change management also have which is not properly implementing modification in business.
Modification can be related to micro and macro both level. Barriers of change management and
their influence on leadership decision making is explained below: -
Lack of employee involvement – This is most common and foremost barriers to change
management because employees are facing fear of change management. For this they have to do
work hard as also personnel’s think that in most of the situations that alteration is not beneficial
for organization and its working. For implementing changes leader have to provide training and
development program to their customers. So they can adopt modification easily as well work on
it.
Lack of effective communication strategy – Communication is important for transferring
data and information related to changes as well it require proper pathway. Several organizations
don't have proper communication strategy in that situation leader think that they will announce
change and staff member will adjust according to that and start ready for new development. It is
the bad way of introducing change in company which create barriers. For removing barriers firm
have to use proper communication channel for providing change information that can be notice,
mails, seminar, messages and several other. Info included in these should be in proper format and
complete.
Bad culture shift planning – There is planning team in company who plan for entire
activity of business but at the time of change management they don't have any idea about it that
how it will effect employees who are working with them. The same team is always fail in
decision making related to intuitions and feelings. Barriers occur in this is because of bad culture
shift planning for removing this planning team have to understand the company in proper manner
and have to look feelings of staff members. Workers are important because them productivity
and profit maximization level of Mark and Spenser will decrease so respective business have to
take care of their staff members.
Organization Complexity – Mainly complexity is related to complex procedure of doing
work, products and system which is contributing as a barrier in change management because for
every member working in company is not easy to understand difficult things. Thus, it is
important to break such barriers by introducing a keen and skillful approach for handling fast
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growth and complexity both. Along with this they can break this barrier by employing diligent,
quality and highly effective project as well change management approach.
Above mention are barriers which occur in company when change management is
implementing. For these barriers leader has to take proper step so that these can be minimized
negative effect of change management within company. Because modification is important for
enhancing productivity and profit maximization. Along with this company can develop and
growth also (Nahavandi, 2016).
P5 Apply Hersey Blanchard Situational leadership model in relation to change
In order to implement change in the most effective manner the management of Mark and
Spencer can use the model of Hersey Blanchard situational leadership as this assist in making the
change understood to those who will be effected by same (Hintz and Bahia, 2013). It is a very
simple model to be applied and hence favorable for the organizations. The method through
which it works is as follows:
Direction – This is the first step in which the work force is provided with a vision toward
which the change will be implemented. It is important so that everyone work towards the same
path and common goals are achieved. If the work force is not provided with the direction than
deviation may take place in the actual and expected result (van der Voet, Kuipers and
Groeneveld, 2015).
Coaching – Only juts providing the direction is not sufficient as to follow same work
force needs to be provided with the learning too. It includes different programs through which
learning is given to the employees as how they have to work so that the change is implemented
in the most appropriate manner.
Supporting – After proving the required level of learning to the employees the duty of
management does not gets over as they have to check the work in progress on regular basis. If it
is found that the employees need assistance to continue further than it has to be provided so that
they can contribute in change.
Delegating – To achieve higher level of efficiency delegation of authority is important as
it share the work pressure among different individuals. When the project is divided into different
level effective accountability is also created which reduces the total stress of work (How to
Overcome Resistance to Change in an Organization, 2018).
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CONCLUSION
From the above report this has been summarized that Marks and Spencer has
implemented different changes in its working conditions which has resulted in both positive and
negative results for the business. It has experienced growth in its sales and on the other suffered
loss due to variations in the expected results. Different barriers were faced which come across
while bringing alteration in the present code of conduct. There are range of models that can be
used to minimize the effect of change for M&S so that profit margins are kept high and targets
are met.
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REFERENCES
Books and Journals
Anderson, D. and Anderson, L. A., 2010. Beyond change management: How to achieve
breakthrough results through conscious change leadership. John Wiley & Sons.
Aslan, S. and Reigeluth, C. M., 2013. Educational technologists: Leading change for a new
paradigm of education. TechTrends. 57(5). pp.18-24.
Bingham, D. and Main, E. K., 2010. Effective implementation strategies and tactics for leading
change on maternity units. The Journal of perinatal & neonatal nursing. 24(1). pp.32-
42.
Branson, C. M., 2010. Leading educational change wisely. Rotterdam: Sense Publishers.
Carrington, S., Deppeler, J. and Moss, J., 2010. Cultivating teachers' knowledge and skills for
leading change in schools. Australian journal of teacher education. 35(1). pp.1-13.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Finnigan, K. and Stewart, T., 2010. Leading change under pressure: An examination of principal
leadership in low-performing schools. Journal of School Leadership. 19(5). pp.586-618.
Fullan, M., 2014. Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Fyke, J. P. and Buzzanell, P. M., 2013. The ethics of conscious capitalism: Wicked problems in
leading change and changing leaders. Human Relations. 66(12). pp.1619-1643.
Hintz, C. and Bahia, H., 2013. Understanding mechanisms leading to asphalt binder fatigue in
the dynamic shear rheometer. Road Materials and Pavement Design. 14(sup2). pp.231-
251.
Inozu, B. and et. al., 2011. Performance improvement for healthcare: Leading change with lean,
six sigma, and constraints management. McGraw Hill Professional.
Nahavandi, A., 2016. The Art and Science of Leadership -Global Edition. Pearson.
Thomas, T. and et. al., 2013. Leading change and innovation in teacher preparation: A blueprint
for developing TPACK ready teacher candidates. TechTrends. 57(5). pp.55-63.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management. 28(2). pp.290-300.
Online
How to Overcome Resistance to Change in an Organization. 2018. [Online]. Available
through :<http://smallbusiness.chron.com/overcome-resistance-change-organization-
154.html>.
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