Strategic Management Report: M&S Leadership and Development

This report offers a comprehensive analysis of Marks & Spencer's strategic management, delving into the company's overview, development methods, and leadership styles. It examines the application of Ansoff's Matrix, evaluating market penetration, product development, market development, and diversification strategies employed by M&S. The report also explores the leadership styles of Steve Rowe and Archie Norman, assessing their impact on the company's performance. Furthermore, it investigates change management models, specifically the Change Kaleidoscope, and its role in strategic implementation. The report concludes by discussing M&S's future sustainability tactics, highlighting their 'Plan A' initiative and providing recommendations based on the overall analysis. The report aims to provide insights into M&S's strategic approach and offers a detailed understanding of its operations and future direction.

Strategic Management

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK..............................................................................................................................................3
Company overview......................................................................................................................3
Methods of development used by M&S......................................................................................3
Leadership style use at M&S.......................................................................................................5
Change management models.......................................................................................................6
Future sustainability tactics of M&S...........................................................................................6
CONCLUSION..............................................................................................................................6
RECOMMENDATION.................................................................................................................6
REFERENCES..............................................................................................................................8

INTRODUCTION
Strategic management is about determination and description of tactics, approaches and
techniques that managers while working in a company could carry in order to achieve set aims &
objectives as well as to make organizational performance even better. The current assignment
will be based on M&S, which falls under list of leading retailers in the United Kingdom. The fey
fact about chosen company is that it has leading at third position in retail industry. This study
along with background information about organization, will also define strategic tools use to
analyze approaches of development utilized by firm. It will explain evaluation of leadership style
and usage of change management frameworks that help examine strategic implementation in
brand. Furthermore, this report will justify further sustainable strategy of selected firm and
possible suggestions base on overall analysis.
TASK
Company overview
M&S in retail sector is considered as third retailing brand. Its grocery market shares in
UK from 2017 to 2020 had increased as it up to 3.1% higher, which is quite beneficial for
company. The mission of firm is to make inspirational quality available to others; this statement
reflect what brand venture is and what important purpose is there. This retail brand while
operating its venture always conducting its activities and practices according to set objective and
aim that allow sustaining in sector for longer period of time. The main objective of firm is to
build its sustainable venture through profitable progress, reliable success and to make assure that
its management has always act accountably at the time of meeting its responsibility to wider
stakeholders. The vision of this fashionable brand is to cater excellent products against which
rivals may measure from consumer’s experience. In additional to above context, firm another
aim is to care for environment and society. By selling different category of goods such as food,
home appliances and clothing, M&S has gained benefits in term of increasing its sales and
profits margin. Its group profit in 2020 was £10.2 billion with adjusted revenue before tax of
£403.1 million (BUSINESS WIDE, 2021).

Methods of development used by M&S
Each company while operating its venture within specific sector has used several
approaches and methods in context of business development, which is an important act that
enhance level of productivity. M&S has done the same; it has used real method of development
which could show by using Ansoff’s matrix as strategic model that mention below.
Ansoff Matrix-
Market penetration-
M&S while managing business functions and operations in retail sector could use market
penetration as strategic approach which enable its venture to grow even better and develop in
systematic manner (Torres, D’Alessio and Stolzenberg, 2021). When company select this
method they need to concentrate on maximizing sales of product portfolio in regards to existing
customer base. With this approach, it could gain benefits in form of retaining current target
buyers who are able to purchase its goods exchange of money which in return allow Marks &
Spencer to enjoy success in retail market.
Product development-
The best and most effective method that M&S could use is this one because it makes
company able to gain attention of new consumers relate to international level (Yang and Hsu,
2019). According to current approach, firm need to manufacture new products with new features
that help to retain existing customers and attract new one, who could contribute in development
of its venture by purchasing new products. Product development tactic permit M&S and its
management to bring an innovative item that added value in consumer perspectives.
Market development-
It is one of the most effective and useful growth tactics that bring different benefits for
M&S. When company use this method for business development or progress it drives attention
of management towards targeting new consumers and serving existing items to them which they
have never provide (Santoso, 2020). It allows firm to expand its venture across new international
markets, which in return increase profitability and productivity as well as sales level even better.
It helps to enlarge M&S business size and scope.
Diversification-
It is one of the best business strategies that many companies in order to develop and grow
its venture use. It enables M&S to enter into new market with new product or goods lines, which

bring benefits in term of increasing sales and productivity. Diversification strategy provide key
benefits to brand as it decreasing risk of loss when single investment acts ineffectively over
certain duration. Furthermore, it eliminates potential losses of organization investment
framework from focusing all its capital under one form of savings.
All above methods and tactics are beneficial for growth and development of any business.
The most appropriate approach that M&S have chosen that is product development.
Strategic importance of chosen method of development by M&S-
The above method of business development is strategically essential for Marks &
Spencer as it provide benefits in form of determining and analyzing growth options and give
change in form of changing consumer tastes. On the other hand, it affects negatively upon sales
of company when customer could not like the new item.
Leadership style use at M&S
A leadership could define as competence of building confidence level and leading among
people & creating an urge in individual to be led. In venture it is use as capacity of firm’s
management to set and reach challenging aims. Different forms of leadership styles are available
in business world and used by many leaders as well in order to gain specific goal and objectives
of companies.
Steve Rowe who is known as Saturday Boy in M&S by using authoritative leadership
style make effective and influencing contribution. It is the best examples of leadership style for
him as it has been taken as an example after gathering information given in case study relate to
Chief Executive officer of chosen company. Authoritative means a person who is able to be
trusted and being appropriate. Steve Rowe is among those people who is capable to be trusted by
his management as he always considers other suggestions and options before taking any decision
relate to business growth and development especially time when M&S has facing issues in form
of sales decline. With authoritative leadership style, he takes better actions and decisions after
analyzing overall situations and identify reasons behind decline of sales (Sukri and Shasrini,
2020). After joining M&S as chief executive, he has handled everything from production to
supply chain operation. Furthermore, with this style he has successfully overcome negative
impact of competition or rivalry among existing players in retail sector upon Marks & Spencer
management functions and profitability.

Not only Steve Rowe, the new chairman of selected organization has used specific
leadership style which also make him able to deal with challenging situations of company.
Archie Norman has appointed as chair person in 2017 at M&S. As he optimized excellent
success in earlier period while working in different retail companies just like above one. He used
supportive leadership style which enable him to make strong commitment and promise a hands
on style as chairperson. Hands on style means a leader who never separate themselves from daily
operations of his or her company. Archie Norman does the same as he efforts making company
even better than other retailers in retail sector (Beer, 2020). His appointment in company has
brought different high authority changes which are quite beneficial and helpful in context of
M&S. He takes decision to appoint new directors of clothing as well as food venture of chosen
firm. By using supportive leadership style, he provides support from all the ventures of company
by making further and current changes within them. He hires new head of women’s and men
wears as well as head of digital, as it defines his style of management and leadership.
Importance of leadership styles-
The above usage of two different leadership styles is really very important for M&S as it
help overcome challenges and bring benefits in term of generating sales even better.
Change management models
Change management is one of the best and most systematic approaches; it allows leaders
and managers dealing with transformation of a company aims, technologies and procedures. It
could also consider as overarching method taken in a firm to move from existing to further
desirable state utilizing a supportive and coordinated as well as structured method in
collaboration with stakeholders. M&S could make management and other types of change and
implement it successfully by using effective change management model such as Change
Kaleidoscope. The chosen model was developed by Hope Hailey & Balogun in 2002. It is use to
pull workers together and arrange extensive different of logical highlight. Selected model of
change management mention below-
Change Kaleidoscope-
It consists of three different rings that define key resources or valuable assets that M&S
and its manager could use to implement change in management structure in systematic and
effective manner.

Figure 1: Change Kaleidoscope Model
(Source: Managing Strategic Change, 2020)
Ring One-
It describes three different elements that relate to change management process. This ring
is the base of inner and middle ring of model.
Ring Two-
It is one of the most essential rings in overall model as it indicates key features that help
managing change and implement at workplace within M&S successfully. Time, scope, diversity,
competence, readiness etc. are important elements that firm could use in regards to change
management. For instance, Steve Rowe as chief executive in Marks & Spencer could set duration
of time, according to that change need to be accomplished in effective manner with contribution
and coordination of each employee. Furthermore, just like this organizational contextual feature,

manager can use another one as well for managing and implementing change management
approach. As they can use his or her power for initiating alter as it provides benefits in different
terms.
Ring Three-
According to this ring, Steve Rowe and Archie Norman can implement plan relate to
management structure change by choosing right path, using change style, changing roles etc. In
the world of business different forms of change styles are accessible. For example, training,
direction, coaching, collaboration and other are included in this category that help implementing
strategic change at M&S.
Critical examining base on above change with actual one-
The above discuss change is beneficial for Marks & Spencer as it brings benefit in term
of improving performance of company and increasing its sales even better than last few years or
months. On the other hand, it impacts in negative manner when change management plan is not
developed by considering other points of views. The real change is relating to existing
management structure that occurred at workplace in firm. Steve Rowe and Archie Norman is
accountable for this change. It provide advantages in term of enhancing management
performance and overall venture as well.
Future sustainability tactics of M&S
Sustainability refers to approach or attempts that conducted by a company in order to
improves quality of human life and other things as well such as environment. Local, national
authority and target segments of companies are known quite concern about sustainability concept
as it relates to environmental safety. Just because of these concerns companies like M&S adopt
sustainable approach or method and develop its own, which is quite beneficial for growth and
success of company. It enables overall management of firm to grow excellently in retail sector.
Furthermore, it also provides benefits in term of boosting brand image in effective manner.
M&S like other retailers wants to grow its business even better and obtain several
benefits in term of increasing customer base, generating profits, protecting environment from
harmful factors such as air, land and other forms of pollution. In form of sustainable strategy,
Marks & Spencer has developed Plan A (M&S to relaunch Plan A sustainability strategy, 2020).
By 2025, organization and its management would share net food waster relatives to sales from its
brand operated & franchised destinations all over the world against a new developed baseline. In

form of sustainable strategy company take decision to reduce food wastage process and eliminate
operational emission. M&S has already contributed to redefine the main role and contribution its
business in society. Firm current plan includes enhancements of environmental and social
performance of business. By developing plan A management execute sustainable strategy of
company in systematic manner. Brand plan reduction of carbon footprint up to 2025, by taking
major actions and developing sustainable as well as effective tactics like above one. Plan A tactic
was founded in 2007 and then updated in 2017. After years’ company has taken decision in
context of further sustainable strategy and then again update the similar plan by including more
valuable features that is halve food waste by 2025. The objectives of this plan mention below-
 To reduce operational emission by 80% as compared to previous years.
 To introduce home products and clothing by using 25% recycled materials.
 To eliminate emissions in supply chain function by 13.3 million tones.
 To use recyclable raw materials such as paper bags that would come from sustainable
sources.
All above objectives are strategically and significantly important in context of M&S as it
help to set positive image of brand in mind of existing and new consumers successfully. By
implementing Plan A and gaining all objectives, M&S will gain many advantages as it support
keeping venture at high positive and assist enhancing brand reputation. Above sustainable
strategy it beneficial in term of gaining competitive advantages and building strong customer
base.
CONCLUSION
From above discussion, it has been concluded that Steve Rowe named as Saturday boy
has made several contributions in context of increasing sales, profitability, productivity and
performance of Marks & Spencer. By using authoritative leadership style, he has gained many
benefits in different terms such as overcome negative impact of decreasing sales. Furthermore,
by using product development as method of business development organization has increase its
consumer base and enlarge venture even better than other brands that has been operated in retail
industry. By summing up above discussion, it has been summarized that by reducing carbon
footprint, food wastage and using recyclable materials, organization has builds its excellent
brand image in market.

RECOMMENDATION
 There are different types of methods, strategies, approaches and techniques are accessible
that M&S should adopt as sustainable strategy and keep it for longer along with existing
one.
 Firm should start hire those people who are unemployed and facing challenges to
enhance their living standards which is one of the most challenging time and act. Due to
pandemic and other factors many people has lost his or her jobs. By providing
employment opportunities, Marks & Spencer would benefit these types of individuals and
enable them to enhance standard of living even better than, which is actually very
essential to do.
 Furthermore, along with usage of product development method for business
development. Marks & Spencer must consider diversification which is really an amazing
concept because it will allow firm to growth venture, generate revenue and increase
customer base more than other brands that has been managed business operations in retail
sector.

REFERENCES
Books and journals
Beer, M., 2020. Fit to Compete: Why Honest Conversations about Your Company's Capabilities
are the Key to a Winning Strategy. Harvard Business Press.
Santoso, Y., 2020. Competitive Strategy Analysis on Ivanova Printography by Foto 2000
Semarang. Journal of Management and Business Environment (JMBE). 1(2). pp.106-119.
Sukri, A. and Shasrini, T., 2020. Leadership Style of Multinational Corporations: A brief review.
International Journal of Media and Communication Research. 1(1). pp.1-11.
Torres, C.E., D’Alessio, S.J. and Stolzenberg, L., 2021. Market dynamics and systemic violence:
A longitudinal examination of market penetration, entry deterrence, and excess capacity
in the illicit drug market. Journal of Drug Issues. 51(1). pp.143-158.
Yang, C.L. and Hsu, H.K., 2019. Optimized new product development strategy. International
Journal of Organizational Innovation (Online). 12(1). pp.110-121.
Online
BUSINESS WIDE. 2021. [Online]. Available Through:
https://corporate.marksandspencer.com/sustainability/business-wide
M&S to relaunch Plan A sustainability strategy. 2020. [Online]. Available Through: <
https://www.edie.net/news/7/M-S-to-relaunch-Plan-A-sustainability-strategy/#:~:text=In
%202017%2C%20the%20strategy%20was,M%26S's%20approved%20science
%2Dbased%20target.>
Managing Strategic Change. 2020. [Online]. Available Through: <
https://kfknowledgebank.kaplan.co.uk/business-strategy/strategy-into-action/managing-
strategic-change#:~:text=The%20change%20kaleidoscope%20was%20developed,the
%20wider%20strategic%20change%20context.>