MGT6800 Strategic Management Report: Marks & Spencer Analysis

This report provides a detailed analysis of the strategic management practices of Marks & Spencer (M&S). It begins with an introduction outlining M&S's business, financial performance, and recent challenges. The main body of the report delves into M&S's methods of development, including internal growth strategies like market penetration and diversification, as well as external strategies such as the joint venture with Ocado. The report also examines the leadership style of M&S, specifically focusing on the transformational leadership of key figures like Steve Rowe and Archie Norman. Furthermore, the report explores the changes in management, highlighting the use of the kaleidoscope model. Finally, it addresses the company's approach to sustainability, emphasizing its importance for achieving organizational goals. The report concludes with a summary of the key findings and references.

STRATEGIC MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN Body.....................................................................................................................................3
Methods of development.............................................................................................................3
Leadership style..........................................................................................................................5
Change in management .............................................................................................................6
Sustainability...............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Mark & Spencer is a UK based retailer which has been dealing in good quality food,
clothing and home accessories. In 2021 M&S carry out the mission of delivering high quality
products that include 29 countries and number of 959 stores within the UK with 44 websites
around the world. Revenue of mark & Spencer in the year 2020 was 10,181.9 and it has around
80000 or more employees working with them today in their company. In recent year the share
price value the company is 139,60 £ comparative with the same date last year the share price was
182,05£. Marks and Spencer is a British multinational retailer which is having their headquarters
in London and England.
But at the same time year 2020 was a challenging one for the company and a good year
for implementing the transformation program (Spencer and et.al., 2019). The plan is to increase
the food sells through a collaboration with Avocado for online delivery. The online competitors
like amazon and flip kart become stronger then the M & S that's why company have planned
strategy to make their business new in order to manage a team with a statement never the same
again along with the chairman and the leaders. The product of mark and Spencer focus on
sustainable raw materials, made with full nutrition and delivering quality products at good value.
The present report will be discussing about the strategic management of Mark & Spencer.
Strategic management means framework of preparation, observation, investigation and appraisal
of all the requirement that are to be fulfilled to achieve organization goals, objectives and
implementation in effective manner. It mainly focuses on utilization of strategies for better
working of organisation.
MAIN Body
Methods of development
Mark and Spencer have develop their market in so many countries by providing different
distribution channels, new product packing, pricing policies and customers to create new market
segments. Methods of development can be internal and external. Internal or organic growth
represent a development inside the organisation like: lunching a new range of products, market
penetration, diversification or expansion into new markets. Organic growth means achievement
that company achieves by increasing their output and better sales. Market development is
adopted by M&S as a method of development because it helps to improve its business operation

and expand existing business in new markets. In addition to this, quoted firm uses this in order to
develop its new products according to change in fashion and also helps in expanding their
business globally.
Mark & Spencer and Ocado came in partnership that is join venture on august 2020 that
is both have equal share that is 50:50 in the venture. The Ocado is the retail business which
provides the customer or supplier internet based delivery service. The company have agreed a
deal with Ocado for £750m which is related to food delivery. The partnership was the way M&S
food to more retail store because the range of the product was small for the consumers to do
weekly shopping with firm. The cost that was spend on the stores was £13 with the average bill
of £100 or more at Ocado. The main motto of this partnership is providing food online and the
change was a strategic opportunity for Ocado retail (M&S food to go online in $2 billion Ocado
joint venture 2019 ). The strategic significance of the company is based on the ideas which are
related to becoming the most imperishable retailer of the world with the plan to provide many
services that contains large number of commitments. Mostly the firm is offering high price goods
and services. The strategic alliance is:
Improving client relationship and competitive skills: The company is having a special
bond with their partners which will give them a reputation to increase their ability that will create
a force which will offer total package to their potential customers. (Strategies of Marks and
Spencer, 2021).
Enter new business territories: entering into the partnership the mark and Spencer have
to follow all the rules and regulations and will also help in developing new identity and new
geographical boundaries.
Create different sources of additional income: The company use its resources for
improving and expanding within the firm and service to the partner which will help in making
the income.
Level industry ups and downs: If the goodwill of the partner company is high this will
lead to the profit for the company.
Build valuable intellectual capital: The two partnership firm by combining their capital
can dig deeper and think harder which will result in growth of the organization.
Affordable alternative to merger/acquisitions: The mark and Spencer have right to
choose what part they have to merge which are related to the capital and size of the company.

Reduce risk: Both the company can understand what they can do for their long term
business goals. If the both company will work together the strategic management will combine
and this will lead to reduce risk.
Leapfrog the competition: The joint venture of both the firm will become a new
challenge for its competitors.
Gain new resources and improve existing resources: The resources of the both the firm
will combine which will expand into new resources. If the resources will increase the capital of
firm will also increase and this will lead to new strategies and plans for the company.
Leadership style
Leadership is a creation of motivating group of people to achieve its organizational goals
and directing workers with a strategy to meet company's needs. Since 25 years of work for the
company in 2016 Steve Rowe was promoted as the chief executive of M&S. Archie and Rowe
both uses transformational leadership that means change in folks and community systems which
will create constructive and helpful changes in the company (Baluja and et.al, 2019). With the
help of transformational leadership CEO of the company motivates staff members and encourage
them to participate in the organisation activity which will enhance their performance in near
future that will result in growth of company. Leaders define the objectives of the organization
but allow each individual to work as per his/her needs and wishes in order to come up with best
ways to achieve these goals. They assign greater freedom to the workers and give them
autonomy in their actions. They also inspire their employees to work towards a joint vision of the
company by performing the specific job tasks that were assign to them by their leaders. Steve
and Norman by using this leadership will take company at the top level in the world.
The strategy for M&S is divided in following steps: putting out the fires, restoring period
from 2018-2019, shaping the future for 2020-2021 and making M&S special (Chen and et.al,
2018). Further, leadership style adopted by M&S has specified the changes that company have to
deal at the time of restoring period for increasing their resources for future growth. Like,
‘complex corporate culture and structure ‘which means changes in several levels of the company
assist the firm to reach at further level of success. A good leadership is someone who gives his
subordinate flexibility and freedom to do job and keeping in line within the organization
objective and must be very friendly with the employees so that they can be cooperative has
inspired a spirit of enthusiasm among the management team by assigning entirely new

departments to some and additional responsibilities to others. Steve has been the great leader
who always spends his time in solving the problems of the company so that there will be no
disputes in future among the employees and planned to improve the performance in the clothing
brand. Example of this is deep-seated which means trouble or opinions that are needed to be
changed because that will harm the company.
Also, leadership style adopted by M&S also specified the changes company have done at
the time of restoring period for increasing the resources for future (Spencer, 2018). Like,
‘complex corporate culture and structure ‘which means changes in several levels of the company
assist the firm to reach at further level of success. Transactional leadership means increasing the
performance of the organisation by motivating their employees with the help of rewarding
system. The aim of using transactional leadership by mark and Spencer to encourage and involve
its employees in projects and inspire them about the values and benefits and creating mutual
goals between the leaders and employees encourages them to come forward and bring
suggestions forward. Situational leadership is used to incorporates different techniques.
Change in management
The leaders of the company have changed the management by using kaleidoscope that
means the outer and inner ring which will give both range of implementing and contextual
features analysis to the firm. Outer ring is related to the broad organisational structure that
is change in context and middle which represents the more specific features of change in
situation and inner which are related to menu of design choice (Chen and et.al, 2018). It
helps company to identify
Time: The Company renews its policies that are concerned with long term strategic
development which can be changed in future.
Scope: This is related to the scope is the degree of change which is at the time of
transformation or realignment. It also helps in knowing that how much the organisation is
affected and what are the scopes of the plans.
Preservation: This is the time when organization assets, practices which are to be
maintained during the change in management.
Diversity: If the management will change the level of difference between the employees
which will affect the attitude, values and norms of the company.

Capability: The ability of organization is to utilize change in provisions of managerial
power, personal knowledge and ability.
Aptitude: At the time of managerial alteration the organization resources need to be
change like human resources, cash and time
Readiness: If there is the company and employees should be ready to accept that change
(Poynton and et.al, 2018).
Power: For the change in management the leaders have power to explain the changes to
its employees.
By using this model, it helps organization to understand the reason about the change in
design that is appropriate or inappropriate for them. The change kaleidoscope model will enables
M&S to bring dynamic change into large scale target revenue growth and goodwill among
company. There is proper method for change in management through Kaleidoscope model which
will help the Marks and Spencer in changing path and policies that is the other way of applying
the change. To obtain proper complete change the Marks and Spencer need to support the
Kaleidoscope with culture web (Safonov, Maslennikov. and Lenska, 2018). The best result for
the company can be obtained when changes are matched with their objectives and goals of
organization. Starting point, changing path, style, target and roles are steps or elements through
which the model is implemented in the company. Path is decided with reference to degree of
change where the organization need to imitate the change related to the points of the models
that is suitable to management in changing style which will result in level of the organization that
aims to assess change in targets. There are different types of roles that are needed to be initiated
and implemented. In this way the change of management will help the company to adapt the
current circumstances and also provides assistance in enhancing its capability of adopting these
changes. This can also motivate the workforce of organisation to accept the diversification
approach of handling the improvement related to certain areas. Hence choosing kaleidoscope
model will be suitable enough for the M&S for implementing the changes in organisation.
Sustainability
It refers to the actions that are focused on investment and performance related to
economic, environmental and social areas which is important for achieving organizational goals
that are planned to create long term value to internal and external stakeholders and society. The
plan which was between 2007 and 2017 have increased on its science based targets (Shaari and

Hong, 2018). Mark and Spencer have stopped using black packaging for their food trays and
started using 100% sustainable cotton sourcing. One of the important strategy of mark and
Spencer is to become world most sustainable retailer.
The sustainability plan of firm is set upto 2025 that is related to zero wastage in business
operation and which will also include the supply chain. Around 50% stores of M&S will make a
place available for the communities and charity. Similar to this, company will also start
launching customer focussed sustainability framework and targets till the end of 2025 which will
result in creating the most trustworthy companies across the globe. Further plan of M&S is to
work with its customers and suppliers to battle with climatic change, reduction in waste, use of
more sustainable raw materials, ethical trading and help customer to live healthy life.
Company will also try to improve their product designs that will result in less product
wastage and can be recycled which will deal in bringing changes in local government and their
recycling policy. Firm have set various goals that are related to using 100% raw material like
cotton, sugar, cocoa, fruit, vegetables, wool and leather. In the year 2017 to 2025 the company
will decide to donate £25 million for the charity to the people who are affected by the cancer,
heart disease, mental health and dementia. With the 2022 the aim of mark and Spencer for food
and clothing to become first-tier manufacturing sites to have 25% women in management
positions (silber and et.al., 2017). The strategy of mark and Spencer is important because they
provide home energy services to its customer which will save their hundred pounds and will
reduce carbon footprint. This sustainability is important because it will protect the forest which
regulate our climate, protect water supplies and provide a home for the animals and the people.
In the recent years the company is also finding the new and innovative ideas for how to reuse the
products.
CONCLUSION
In the report it can be recommended that company can use effective leadership style for
the betterment of the company and can also use the scientific change management models and
how to utilise technological advantages in changing the markets. From the project it has been
concluded that Mark &Spencer has a product image in the country that deals in various brands
including home, clothing and food. In addition to that company have use organic development
for internal and external growth of the company. Mark & Spencer and ocado have joint venture
partnership with equal shares that is benefit for both the companies. Both the leaders Archie and

Norman uses same style that is transformational which is used by the them to create positive and
valuable changes in company. By using this style the CEO of the company inspire staff members
to participate in the organisation actively by appealing, sharing values and bringing pioneering
ideas. For the better management skills the company has applied kaleidoscope model to
understand changing areas of markets which composes of three rings that is outer, middle and
inner. lastly we have concluded by describing the plans which are related to the sustainability
strategy that company have prepared for long-term goals that is the sustainability plan of quoted
firm up to 2025 is, there will zero wastage in business operation and will also include the supply
chain.

REFERENCES
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Online
Strategies of Marks and Spencer. 2021. [Online]. Available through:
<https://www.slideshare.net >
M&S food to go online in $2 billion Ocado joint venture. 2019. [Online]. Available through:
<https://www.reuters.com/article/us-ocado-m-a-marks-spencer-idUSKCN1QG0R8>