Strategic Management Report: Marks & Spencer's Strategic Methods

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This report provides a comprehensive analysis of Marks and Spencer's (M&S) strategic management approach. It delves into the key methods of development employed by M&S, utilizing the Ansoff Matrix to evaluate market penetration, product development, and market development strategies. The report examines the leadership styles prevalent within M&S, specifically focusing on Autocratic, Transactional, and Transformational leadership, and their impact on organizational performance. Furthermore, it explores the company's change management initiatives, including the implementation of the "Saturday boy" strategy and the application of the Change Kaleidoscope framework. The report also addresses M&S's sustainability efforts and their significance in the current business environment. The analysis incorporates relevant academic literature and current market information to provide a holistic understanding of M&S's strategic choices and their implications for the company's growth and sustainability. The report highlights the critical role of strategic management in enhancing organizational performance and achieving long-term goals, as well as the importance of adapting to the changing business landscape.
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Strategic Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Methods of development........................................................................................................3
Leadership style......................................................................................................................4
Change Management..............................................................................................................6
Sustainability..........................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic Management is an implementation and direction being made by the organisation
in order to increase its performance of working. It is the organisational plans and various new
assessments being made by the head of the departments or the managers so as to try to make the
company to develop and achieve there goals this merely covers all the strategic approach by the
managers and the makes various plans according to the resources being present. The organisation
use to make all the strategical approach that implies and commend various methods and
strategies that are needed to be implemented. The companies tries to make various roles and
styles that helps in gaining more approach in market and provide development for the companies
work. The managers and the head of departments has main role in amending strategical
approach. This method also have an ideology of feedbacks from which they checks the working
and the implementation of there work this process covers the formulation of there working in
order to sell it globally to all kinds of age groups. (Busch and Shrivastava, 2017). Marks and
Spencer is a Multinational brand which deals with clothing, food products and home décor or
items used over there. It was founded in 1884 by united kingdom by Michael Marks Thomas
Spencer and its headquarter is in London , UK. This report deals with methods of development,
leadership style, change management, sustainability of the company and will provide various
methods that helps in gaining the relevancy of the company and its develop..
MAIN BODY
Methods of development
The strategic tools for the development and growth of Marks and Spencer is being
analysed by Ansoff Matrix. It is a tool which helps to identify the growth of the company and the
strategies which needed for the growth it gives various methods and plans on which company
should work in order top gain profit and increase more customers.
There are four main strategies of Ansoff matrix: Market Penetration: There implies that the companies in order to gain profit and attract
more customers use its existing product in the existing market by using various
techniques likes reducing the prices of there products in order to gain more customers by
also increasing the promotions of there existing product in the market.
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Product Development: In this strategy companies can try to introduce any new product
in the existing market with some innovation and something creative which attracts the
customers (Hao, 2017). This technique is applied by knowing the current market
situation and with proper research of the products as companies or the organisation
before introducing any new products should check the needs of the customers in the
current situation and the stereological idea made for there development.
Market Development: It covers the strategy where the organisations comes up with a
with there old and existing product in the new market and that means allocating there
products in the new geographical area the main agenda of the company in that is they
implies to gain more customers in other areas and to expand there brand image and value
in the new market, That kind of certain things helps to gain more profit by adding up
more customers. The strategy being used by the company in order to make the product
development in various markets implies all the various factors and consolidation. As
going in the new market can increase the market trend and also the growth of the product
with its epitome culture and value.
Ocado is a public traded company which provides the online services and the material to
the public traded companies and areas. M&S and Ocado has joined as the partners by the mid of
2020 as they were planning to get in August 2020. The main aim behind the partnership is to
raise out that all the delivery of their products can be done in a prominent way and that all the
products of the M&S will be online delivers with the help of Ocado. As Wait rose has made and
launched the social media marketing and that implies that their seems to be all the delivery of the
product may be made within the gross and increase in the areas. The main aim behind the
partnership is to increase the growth and the production of the company and to imply the main
reason of the markets within the arose area. M&S has spent b750 million in order to buy 50%
shjares of Ocado. This was beingn made inn order vto get the ocado share by the investors so as
to run the technology in the better and adavnce methids and means.
During the COVID when most the business were running in the downfall at that time
their has been a reason of adaptation that all the companies were there by being implicated and
Ocado has certainly helped the company ton increase the profit and run the business efficiently.
As in all the mean time the partnership of both has came out favourably stronger then ever and it
complies in varies means and methods by which the implications has been made.
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By all this above strategies Marks and Spencer use Product developments as there tools
as they develops new product in the existing market and tries to innovate there product in
according to the requirement of the customers they used there pre existing products and materials
and recycle them with new techniques and innovation with keeping in mind about the substantial
use of the products and introduce it in existing market (HEIDARI, and VALIPOUR, 2017).
They have certain team and staff which keeps check on the requirements of the customers and
then motivate there team to make such items.
Leadership style
Leadership merely involves all the skills and the challenges being given by the leaders to
there employees as in order to motivate, direct and guide there employees. It involves all the
organisation to follow and implicate the means and the method that has been used and are
important for the organisation. Steve Rowe and Archie Norman are the chief executive of
M&S and they implied various strategies that are been used in order to increase the growth of the
company and the organisation. The main aim by them was to make the company to increase their
growth and aims out to work in a strategic manner so as to be on the top position (Kaspar,
2018). The leadership style that is being followed by them is Autocratic leadership style.
The autocratic leadership style is mainly where the head of the organisation or the one
manager use to control all the decisions of the company. They implies that all the areas of
working are being under the control of the workers. Their has been used to imply that no
employees have the authority to raise a question or to give their embark views on that point
instead of that their their the lead person use to decide the working and the managing of all the
employees.
This type of leadership style is being used by the organisation in order to take quick
decisions as when there is the need of constant change or any important decision has to be taken.
The organisational structure of this quality use to variedly streamlined and has to be adaptive. It
merely provides that all the culture of self motivation and the growth has to be led out in the
variant area and zones.
M&S use to create a huge impact on the working and make their employees to work in a
prominent way with all the guided areas and by following this style.
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As Marks and Spencer is a multinational brand and in order to maintain its image the
managers and leaders follows Transactional leadership style, where company focuses on the
organisation culture and the main aim of the leaders and the employees are to make there
employees to attain and achieve the main objective and goal by motivating them from reward ,
incentive (Ignatiev and et. al., 2018). The leaders pertains the employees to give there own self
interest ideas and make them to think and give there own perceptions for various workings, In
this kind of leadership the responsibility lies on the leaders in order to make there employees
motivated and set such targets and rewards which cheers the employees to work harder and to
think inviolately. They make more mature learning techniques as by making there employees
independently thinking about various. The managers of M&S follows this style for organizing,
planning and controlling there employees, they makes there employees to gain rewards and that
rewards depend upon the initial working and progress being shown by the employees for the
company (Joseph and et. al., 2018). M&S as a leading brand always tries to reach to the
customers with better idea and products and that immensely being possible when there
employees and the team leaders in according to the strategy and helps implement the roles and
the requirements on a proper time.
Transformational leadership provides all the essential changes that are being made by the
leaders fore their teams in order to achieve the goal. It helps to create the vision and inspiration
of the company. The main aim lies in this theory is to make the employees motivated with the
work. M&S keeps using this strategy in order to gain more customer and increase the growth of
the company.
Situational leadership theory provides the leaders to make certain strategies for working
and also all the elements being made. M&S use to make their employees work in an efficient
way so as to create the work with equal and clear manner.
Change Management
The change in the organisation is merely the most important element. In the rapid change
in globalisation their has been given an advancement in all the business environment. And for
that their has been made the effective organisation strategy for the successful growth of the
company. M&S has been one of the efficient company have to regulate certain changes that are
being needed to be made.
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The new techniques of the Saturday boy that has embarked in the apparel for the kids to
the teenage has been a long adaptive theory which created an impact on the organisation. Their
Steve roves has used several changes through the Saturday boy strategy in order to make it
reluctant in all the features and the working of the company.(The Guardian, 2021)
The Change Kaleidoscope is been the most important area of development that is being
required and give the method for extensive variety and pulling together the amid changes in the
strategy. This method is being produced by Hope Hailey & Balogun in 2002. The main aim
behind this method is to make variable changes in the strategy and the market for the progress of
the organisation and the company. This method contains various rings that are external and the
internal ring in which the external ring provides the change in the context of M&S within then
organisation this change implies all the design of choices and the paths with the starting point
and all the intervention in the organisation (Vasile, and SIMION, 2019). This helps the
organisation to analyse the interventions within the context of the internal rings. The change
management in the context of M&S with the kaleidoscope is as mentioned: Time- This mainly complies the time period in which the companies can at any time
being accomplished and the change can be made within their mere areas and roles. M&S
has attain various time period in order to make the Saturday boy strategy to be
implemented. Scope- This provides all the areas that can be at any time be changed in the context and
the areas being important for transformation and realignment. M&S has taken certain
transformation in their products within the specific time zones. Preservation- All the asset and the characteristics with the features are being used to
retained for the changes. Thus this provides that all the organisation has ton make various
adaptability in the sections and zones which provides the impact in all the way. M&S has
a special team which use to take care of all the means and the assets that are surely being
used for the companies benefit. Diversity- It covers all the changes in the employees and their terms of working for the
benefit of the company and their mere specific areas. It provides the difference in the
group of the employers and the division of work that is being done by them. M&S has
created a zones and the areas in which the employees use to work in the team and the
sectors.
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Capability- The changes are being marked by the organisation through all the competent
change and the managerial skills with the companies personal knowledge and their
ability. The M&S develops certain strategy in which they have to mark the areas in
which they regularly check the working of the employees and the company with various
strategy band skills. Capacity- In this change method the organisation use to adapt various areas where the
fund, time, cash and the human resources have been analysed and skilled in all the
sources. The organisation in order to work in a proper manner has to implement the
capacities and the money that needed to be set out. M&S use to calculate all the funding
and raise all the development in the zones for the future assets and new projects and
implementations. Readiness- This change involves all the awareness in the principal of the company and
the organisation of varies being working in all the zones and sectors (Shanley,
2017).M&S time to time make it clear and aware to all the people being marked that their
should be a clear awareness about the branding and the growth of the product.
Power- The companies use to connect in order to initiate various power and the methods
implied. M&S makes various strategy which connect and make the sources for the
company impliedly and consenting.
Sustainability
The word sustainability is now the most focused word for everyone. The concept was
developed from the avoiding the harm that is being caused to the environment. This concept is
still developing and many companies are taking measures to include regulations for the same.
Marks & Spencer launched sustainable strategy firstly in the year 2007 with a goal to be no.1
retailer by the end of 2015 in the whole world. They named the strategy “Plan A”. they achieved
their goal early in 2010 and this also helped them save lots of cost. They again set new goals for
the company which had plans like zero waste business and many more like that. The new name
for the new goal of sustainability was launched in 2017 named “Plan A 2025”.
The program designed for the sustainability is mainly focused on its customers. This plan
will support different communities and help people to live happy and healthy life. They also
want to convert their business into zero-waste (Obydenov, 2016). This is a three pillar plan in
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which the company is facing three major issues i.e. the retailers, consumers and the society. The
main goals and commitments included in this plan of 2025 are:
To make all the packagings at the company recyclable.
To raise at least £ 25 Million for the charity at various cancer, heart disease and other
centres.
To make half of the sales from the food that is healthy to eat and uses healthy products.
Raw materials used at the company to be used from the sustainable sources.
The company is trying to reduce the emission of green house gas by 80%
Plan A 2025 is mainly focused on making the company a zero waste model. They are
planning to transform the lives and communities by providing them with help by volunteering
and giving charity at various health centres for the people dealing with cancers, heart disease,
mental illness, etc. they are further promoting the healthy environment by just not helping the
people and its communities but also by improving the local environment (Shanley, 2017). Plan
A has helped the company to make its environment sustainable. This plan is not just helping the
company with its own operations but also is supporting its product and supply chains.
The plan A of 2025 is also promoting their ideology to create awareness by a marketing
campaign both at the store and on social media. The Marks and Spencer is expected to present
progress reports of the plan every year in June. These commitments are then assured by the audit
team of the company and also by the independent auditors.
CONCLUSION
From the above report it is concluded that, Strategic management is used by the managers
or the heads of the organisation for the employees so as to develop and formulate various new
ideas and techniques in the market. It provides various strategies for the organisation in order to
the growing changes and the needs of the market this helps in managing the firms in a proper
way and gives direction to the employees about there working process. The M & S has used the
strategy plan A 2025 which covers the sustainability of product by recycling them and
generating new product, they also used transactional leadership style and Lewin's 3 step model.
Furthermore, it is analysed that these certain tools helps in effectiveness and to coordinate with
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the employees and to gain more market value. It also used product development in the ansoff
model to gain more profit from the market.
RECOMMENDATION
It is recommended from this above report that M&S being the multinational brand and is
the priority of the customers from the further years. They can also use the Situational leadership
theory as due to change in environment their has been change in the needs of the company so the
company should try to make the changes according to the needs of the customers. And other than
product development company can also use the Market development strategy thus will help them
to increase their products value in the other zones and areas.
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REFERENCES
Books and Journals
Busch, T. and Shrivastava, P., 2017. The global carbon crisis: Emerging carbon constraints and
strategic management options. Routledge.
Camillus and et. al., 2017. The business of humanity: strategic management in the era of
globalization, innovation, and shared value. CRC Press.
Gallo and et. al., 2019. Application of the Balanced Scorecard as a strategic management tool in
practice: a case of Slovak tourism sector. GeoJournal of Tourism and Geosites, 24(1),
pp.19-28.
Hao, M., 2017. Strategic Management in 50 Years: Development Context and Dominant
Paradigm. Foreign Economics & Management, 39(07), pp.15-32.
HEIDARI, A. and VALIPOUR, A., 2017. Strategic Management Research in Iran: An Overview
of Published Works in Domestic Scientific Journals during 2002 to 2015.
Ignatiev and et. al., 2018, November. Challenges for strategic management of the development of
the digital economy and advanced training. In 2018 XVII Russian Scientific and
Practical Conference on Planning and Teaching Engineering Staff for the Industrial and
Economic Complex of the Region (PTES) (pp. 197-200). IEEE.
Joseph and et. al., 2018. Reviewing, revisiting, and renewing the foundations of organization
design, organization design (advances in strategic management) (pp. 1-23). Emerald
Publishing Limited, New York.
Kałkowska, J. and Kozlov, A.V., 2016. Decision making process for the knowledge-based
enterprise: Fuzzy sets theory application to strategic management. In Information
Systems Architecture and Technology: Proceedings of 36th International Conference on
Information Systems Architecture and Technology–ISAT 2015–Part III (pp. 163-174).
Springer, Cham.
Kaspar, W.A., 2018. Strategic management and situational awareness in academic
libraries. College & Research Libraries, 79(3), p.302.
Obydenov, A., 2016. Foundations of the parametric strategic management: An institutional
economics perspective. VOPROSY ECONOMIKI, 8.
Shanley, M., 2017. Fragmentation in strategic management. The Oxford Handbook of
Management, pp.293-324.
Vasile, E. and SIMION, D.O., 2019. THE ROLE OF INFORMATION SYSTEMS IN
ECONOMIC ORGANIZATIONS FOR THE STRATEGIC MANAGEMENT. Internal
Auditing & Risk Management, 14(2).
Online
The Guardian, 2021 [Online] Available Through:
<https://www.theguardian.com/business/2016/apr/07/marks-and-spencers-
difficulties-come-into-focus-in-croydon>
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