Marks & Spencer's Leadership and Management: Strategies for Success

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ASSIGNMENT 2: LEADERSHIP STYLE AND
MANAGEMENT PRACTICE OF MARKS & SPENCER
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Executive summary
The entire study has focused on the effectiveness of leadership style and management
practice in the venture so that organisations are able to increase their reputation in the market.
In this context, Marks & Spencer (M&S) has been selected for conducting the study. Using
various examples of M&S, leadership style, importance of strategy making and managerial
practices have been discussed throughout the study. Different theories such as Controlling
Process, Path-goal theory, Mintzberg’s Managerial Roles and Leader-Member
Exchange Theory have been negotiated for analysing the concepts of leadership style and
managerial practices in M&S.
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Table of contents
Introduction................................................................................................................................3
1. Summary, history and rationale of Marks & Spencer............................................................4
2. Discussion on leadership style, vision, management practice and strategies using various
theories.......................................................................................................................................6
3. Analysis on the procedure for achieving strategies in Marks & Spencer along with
examples.....................................................................................................................................8
4. Recommendation for bringing improvement.......................................................................10
Conclusion................................................................................................................................11
Reference list............................................................................................................................12
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Introduction
Effective management practice in a venture is able to run business in a systematic manner
and as a result, business organisations can earn huge profit in the contemporary merchandise
market. For conducting this study, Marks & Spencer (M&S) will be selected. It is noticed
that M&S wants to close around 100 stores within 2022 due to lack of proper management
process in the venture (bbc.com, 2018). It can reduce the profit from the market. Therefore,
the aim of the study is to analyse leadership style, strategies and management practices of
M&S so that they can develop their profit level in the contemporary and international market.
The study will focus on the summary and rationale of M&S and after that leadership style and
strategies of them will be analysed by using various theories such as Mintzberg’s
Managerial Roles, path-goal theory, leader-member exchange theory and many other.
Recommendation will be included at the end of the study for bringing development in the
business of M&S.
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1. Summary, history and rationale of Marks & Spencer
History
Years Activities
1884 Michael Marks formed the business
1894 Marks joined with Thomas Spencer and
made Marks & Spencer. It ran wholesale
business in that time.
1904 1st shop of M&S has been opened in Leeds,
UK
1926 Became a public limited company
1931 Included food department
1975 Entered in international market such as in
Belgium and France
2000-2019 Own fashion statement has been created for
men. Their food sector is able to hold
reputation in market. However, in fashion
context, from 2015, M&S faces issue related
to dissatisfaction of customers.
Table 1: History of Marks & Spencer
(Source: Influenced by marksintime.marksandspencer.com, 2019)
Michael Marks established M&S in the year of 1884 and it started to give products in an
affordable price to the customers. After 10 years, which was in 1894, Marks took partnership
of Thomas Spencer and it became Marks & Spencer. In that time, they provided only
wholesale business. In 1904, M&S opened their first shop in Leeds, UK. The big change was
noticed in 1926, when M&S became a public limited company. After that apart from fashion
products, in 1931, food department was introduced. Gradually, they expanded their business
in international market and in 1975; their store was opened in Belgium and France. After
2000, they introduced their own fashion statement for men and it helped them to hold their
reputation in the merchandise market (marksintime.marksandspencer.com, 2019).
Overview of M&S
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Marks & Spencer (M&S) is a public limited company under retail industry. It has been
founded 135 years ago and its headquarter is at London in UK. It gives worldwide service
and their products are clothes, foods and many others. As per the report of 2018, their net
income is around £10,698.2 million. The number of employees is around 80787
(marksandspencer.com, 2019). However, in food department, 0.6% market growth is noticed
whereas, in fashion section, huge declination, which is 1.8%, is monitored
(corporate.marksandspencer.com, 2016).
Figure 2: Market growth in food and clothing sector of M&S
(Source: corporate.marksandspencer.com, 2016)
Rationale
As per the report of BBC news, it has been monitored that within 2022, M&S wants to close
their 100 stores due to lack of proper management process. In addition to this, due to the
closing of stores, it can reduce the profit level of venture in UK as well as in international
market. It is also found out that organisation wants to provide only online service in order to
avoid distribution related issues (bbc.com, 2018). Therefore, this venture is selected for
analysing its management and leadership style so that they can increase their market growth
of clothing sector.
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2. Discussion on leadership style, vision, management practice and strategies using
various theories
Vision
As per the viewpoint of Paliokaitė and Pačėsa (2015), if an organisation is able to set their
vision for the market, they try to meet it in an effective manner. It helps to get success in the
contemporary merchandise market. In case of M&S, it is an old brand and it provides food
and fashion related items to the customers. As their market growth in clothing sector is
declined around 1.8%, their vision is to get back their success again for holding reputation
in UK market as well as in international market by giving quality products and services
to consumers (marksandspencer.com, 2019).
Leadership style
In the opinion of Scott-Jackson and Michie (2017), effective leadership style is able to
increase the production of the venture. In case of M&S, it is noticed that they follow
democratic leadership style in the venture. As a result of it, in time of taking business
related decision, the board of members of Marks & Spencer discusses with other employees
for getting effective outcome.
Figure 3: Leader-Member Exchange Theory
(Source: Influenced by Martin et al. 2016)
Maintaining the concept of leader-member exchange theory, M&S is able to handle the
critical situation in a lucrative manner. It helps to increase collaboration nature of workers,
which can give positive outcome in getting success to the venture. In case of maintaining
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domestic and international reputation, democratic leadership style is an effective way as in
this process; employees are able to express their view to the higher authority of business.
Management practices
Figure 4: Mintzberg’s Managerial Roles
(Source: Influenced by Altamony and Gharaibeh, 2017)
If organisation is not able to manage their activities in an appropriate manner, they cannot get
success in the contemporary market. As per the view of Mintzberg’s Managerial Roles,
there are various types of roles for managers, which are interpersonal, decisional and
informational role (Altamony and Gharaibeh, 2017). In case of M&S, it is observed that they
follow informational role in time of sharing any decision with members of the venture. On
the other hand, few members of board are there, who prefer to follow the interpersonal role
in order to run business in an effective manner.
As mentioned by Lounsbury et al. (2016), in case of informational role of management,
higher authority just gives instruction related to the activity of venture. On the other hand, in
case of interpersonal role, organisation negotiates with members before taking final decision.
In M&S, as authority of clothing department just expresses their decision to members and
they do not communicate with employees of every store, as a result, communication gap is
noticed. In order to mitigate this gap, few board members of food department follow
interpersonal role and they analyse the present status of business before discussing with
members and taking decision. It also helps M&S for developing their food sector along with
earning reputation from international market.
Various strategies making using theories
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In order to run business effectively, M&S makes various strategies, which are followed by-
● Issue identification
● Development of goal
● Planning for taking effective action
● Monitoring the appropriate outcome
Figure 5: Path-Goal Theory
(Source: Influenced by Yang and Lim, 2016)
In the suggestion of Yang and Lim (2016), concept of path goal theory helps to develop a
good atmosphere in the venture if leaders follow the concept of leaders’ behaviour. In case of
M&S, organisation tries to behave politely with their members so that feel motivated in time
of working. It helps to increase their profit and reputation in the contemporary and
international market. In addition to this, M&S also follows the concept of control process so
that they bring development in their fashion department. It is noticed that in 2015, M&S has
faced around market growth declination of 1.8% due to lack of setting proper strategies
(corporate.marksandspencer.com, 2016). Hence, they try to follow the controlling process for
getting fruitful outcome. In addition to this, the company can do performance measurement
so that they can develop their product quality in an effective manner. This strategy also helps
to evaluate the efficiency of members in a venture.
3. Analysis on the procedure for achieving strategies in Marks & Spencer along with
examples
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It is found out that the vision of M&S is to provide good quality and innovative products to
customers of fashion sector; they try to collect feedback of customers. In this context, they
have received around 300000 pieces of feedbacks from world and based on it, they bring
development in their fashion items (cmo.com.au, 2018). As a result, in 2018, their sale in
fashion department of UK is increased around 5.2% (marksandspencer.com, 2019).
Figure 6: Product development of M&S
(Source: corporate.marksandspencer.com, 2016)
On the other hand, as commented by Scott-Jackson and Michie (2017), democratic leadership
style helps to bring improvement in the business process of the venture. For example, in case
of M&S, it has been monitored that their market growth in fashion sector was declined
around 1.8% due to lack of customer satisfaction in 2015. In order to remove this problem,
M&S tries to discuss with their operating department so that they can bring development in
their clothing items. It is also evident in report of 2018 that M&S increases their sale around
5.2% in UK, which helps to get back their reputation in market. Their target is to increase
sale around 100% in global market (corporate.marksandspencer.com, 2016). Thus,
democratic leadership style has been implemented in M&S.
By following the informational role, M&S has announced that they will close around 100
stores within 2022 due to lack of proper management. In time of taking this decision, higher
authority of M&S did not discuss with their lower level members. It is also the example of
controlling strategy. As mentioned by Wijethilake et al. (2018), expansion is not the only
way to develop business position in the market. Keeping this concept in mind, M&S tries to
close 100 stores of their clothing sector and develops product quality of existing stores so that
they can give full satisfaction to their customers. This strategy helps M&S to develop their
position in the global market. However, it can reduce their profit initially; best products and
services help them to mitigate it as early as possible.
In the example of interpersonal role, which is under Mintzberg’s Managerial Roles, it is
noticed that customers and staffs of M&S faced issue related to card payment. Around 1035
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stores have faced this issue (bbc.com, 2018). Gradually it decrease sale of the venture. In
order to mitigate the issue, organisation discussed with its member and solved the issue by
hiring IT experts. Thus, leadership, management practice and strategy making helps to hold
their reputation in UK as well as global market.
4. Recommendation for bringing improvement
Maintaining transformational leadership style
If the organisation M&S is able to follow the transformational leadership style, they can be
able to know the ever-changing demands of customers. In case of democratic style,
organisation only discusses with members before taking decision. Hence, they should follow
transformational leadership style so that they can know the demand of customers and change
their activities accordingly for getting fruitful outcome.
Need to focus on interpersonal role in management practice
M&S should follow the interpersonal role so that they can communicate with members.
Many a times, it is noticed that organisation cannot know the issue of workers of different
branches. Interpersonal role of a manager influences the concept of communication and it
helps to solve the issue of workers accordingly. It can bring development in the sale of
venture as well.
Reviewing customer demand
In time of designing new product related to fashion sector, M&S should review the customer
demand and design product based on their demands. It can increase the sale of venture in the
global market. Thus, M&S is able to hold their reputation in the contemporary competitive
market.
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Conclusion
Therefore, in order to draw the end line of study, it can be deduced that effective strategy and
leadership style help to gain reputation in the global market. Interpersonal role enhances the
communication concept among workers and it helps to reduce the issue of the employees in
time of working in the venture. In case of M&S, it has been found that though in 2015,
market growth in fashion sector is declined around 1.8%, they try to analyse the demand of
customers. Thus, in 2018, M&S is able to increase their sale around 5.2% in UK. This
reflects that proper strategy is essential for getting prosperity in competitive market.
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