Strategic Management Case Study: Analysis of Marks & Spencer (2020)

This case study provides a comprehensive analysis of Marks & Spencer (M&S), a British multinational retailer, examining its strategic management practices. The report begins with an introduction to M&S, outlining its background and core business operations in clothing, home products, financial services, and food. It then delves into the methods of development employed by M&S, including the Ansoff matrix, Porter's generic strategies, and Porter's five forces model, to assess market competition and gain competitive advantages. The study further explores leadership styles, specifically transactional leadership, and suggests the adoption of a participative leadership approach. Change management is addressed through Kotter's 8-step model, highlighting the importance of adapting to market trends and employee engagement. Sustainability strategies are also discussed, emphasizing the need for innovative products and customer loyalty. The report concludes with recommendations for M&S to enhance its market position and achieve its goals. This detailed analysis provides valuable insights into the strategic management of M&S and the challenges it faces in a competitive market.

Strategic management case
study

Table of Contents
INTRODUCTION...........................................................................................................................3
Background information of M&S................................................................................................3
Methods of development used by M&S......................................................................................3
Leadership style-..........................................................................................................................6
Change management-...................................................................................................................6
Sustainability-..............................................................................................................................8
Recommendations........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management reflects setting objectives, determination of goals, analyse the
competition of the company. Basically it shows the management of resources of the company to
accomplish the goals (Velikorossov, 2020). This report defines a company called Marks and
Spencer, it is a British multinational retailer, trade in clothing, home products, financial services
and food products. This report shows the relevant strategy implemented by M&S in their work,
apart from this method of development, and various leadership styles has been defined in this
report. Various change management models and their impacts on the company has elaborated in
this report. Besides this, what should be the future sustainability strategies adopted by M&S has
explained in this report. Apart from this numerous recommendations to the company is also
consisted in the report.
Background information of M&S
Michael Marks and Thomas Spencer is the founder of this company, established in 1884.
As it is a UK based company so its headquarter is also located in London. Marks and Spencer
plc operated in the glob, it is serving millions of people from their product. The major product in
which they are dealing is food, clothing, home and financial products. It is currently having
approx 950 stores in London, the major stores are of food, now it has opened their food delivery
services online as well.
Company gives more emphasis to the quality rather than quantity, there for it has
become the most liked companies by the customers. The business strategy of M&S is to provide
variety and differentiation in the range of product they are offering to its customers, so that they
also get something new and change in the products which they are using on daily basis, this will
stop the customer to switch. M&S is emphasising cost reduction as well, they are trying to
provide affordable products so that any consumer who is rich or belong to middle class can
easily buy the product. As the company is selling the products under its own brand so market
penetration is always been an important part of this company.
The another strategy which the company has adopted to survive in the different market of
different countries is merger and acquisition. To set the presence of M&S in different countries it
got merged with the big name and famed companies to earn profit and create an image among
people.

Methods of development used by M&S
There are various strategic tools used by M&S in order to grab the objective or expand its
business operations. Some of the tools includes:
Ansoff matrix:
This is one of the major strategic tool which could be used by M&S in order to develop
strategies regarding future or helps in the expansion of the business of the company. According
to this matrix there are 4 strategies which M&S can adopt while making strategic planning:
Market penetration:
M&S by adopting this strategy may increase the sale of its existing product in the
existing market which on the one side help the company in achieving its sales objective while on
the other hand this technique proves to be safe for M&S because of prior experience and
knowledge of the market.
Product development:
M&S may adopt this strategy to launch its new product in the existing market. This
means that this strategy gives advantage to M&S in terms of more expanding its existing market
share through the launching of new product.
Market development:
If M&S wants to enter into new market through its existing products then it can adopt this
strategy. This strategy helps the company to expand its business by capturing share in the new
market through the sale of its existing products.
Diversification:
This strategy is completely different from the above three strategies which focus on
launching of new product in the new market (Loredana, 2017). This strategy proves to be risky
for M&S because in this strategy the market and product both are new and there are chances that
the product may not been able to survive and bit the new market as expected.
Porter's generic strategies:
According to Porter's generic model there are broadly three main strategies which M&S can
adopt in order to develop its business. These strategies are:
Cost leadership:

By adopting this strategy M&S can achieve high degree of profits because this strategy
focus on lowering the cost of production by using most suitable and efficient resources. By using
this strategy M&S can lower its cost of operation and thereby increase its profit percentage.
Differentiation:
M&S by making its products unique according to customer's attributes and wants may
achieve a good position in the competitive market (Islami, Mustafa and Latkovikj, 2020). Thus,
this strategy helps M&S in making the product different from other and thereby achieving good
market position.
Focus:
This strategy helps the M&S in focussing a specific segment or group of people and
thereby helps the company to achieve its objectives. The focus can either be lied on product or
cost or combination of both.
By following porter's generic model, M&S may easily develop its business operations
because this model guides the company to either lie its focus towards cost or product and thereby
helps it to grow and expand its business concerning both the aspects.
Porter's five force model:
This model helps the M&S in analysing the market competition and get the competitive
advantages. According to this model there are five main competitive forces:
Competition: (high)
Marks & Spencer's market place is full some of the biggest market competition of UK because of
which company has to face a high amount of competition and customer count is also affected
(Martin, 2017).
Potential of new entrants: (high)
UK's market is full of tough competition and a new entry will increase the competition
drastically because of which organizational sales will be further more reduced, thus this is high.
Power of suppliers: (medium)
Marks & Spencer is a well-established organization because of which company can utilize its
market reputation and supplier alternatives for achieving products at low price, therefore it is
low.
Power of customers: (high)

UK's market is having high market competition because of which organizations have to make
concentrated efforts for maintaining its customer count.
Threat of substitute products: (high)
In the present time customer are having high engagement in buying products through internet
because of which chances of brand switching is high for the organization.
Leadership style-
Leadership style is the way in which organizational leaders tend to establish communication with
employees and provide effective working instructions through which organizational activities are
done. Marks & Spencer use Transactional leadership style at work place by which it is able to
provide effective working instructions to employees by which it is able to achieve high level of
work productivity. Transactional leadership style is the managerial approach of leadership at
Marks & Spencer in which it tends to provide instruction to employees in such a way that it
motivates them to improve their working capability through which employees are able to
achieved their desired target (Maamari and Majdalani, 2017).
This is an effective working process of motivating employees to increase their working
capability by showcasing the rewards which they can achieve by increasing their working
capability and because of which this leadership style is highly effective. But also on the other
hand this leadership style tends to limit employees from working beyond their comfort areas
because of which employees tend to work in a specified work area and due to which it makes
negative impact on organizational team working which are made in order to increase the working
process. Thus Marks & Spencer must improvise its working strategy to participative leadership
because it is highly effective and because of which employee's working capability can be
increased (Archambault, 2019). In case of participative leadership style organizational leadership
tend to include employee in the decision-making process through which leadership tends to
increase employee's loyalty and involvement in the improvement of organizational activities and
also achieves a different point of view for solving organizational problems. However, the final
decision is taken by the leadership only because of which it is highly effective in terms of
improving working capability accordingly.
Change management-
Organizations like Marks & Spencer has to make sure that it is able to provide products and
services according to the current market trend through which it can make sure that it is able to

achieve organizational goals but this is not as easy as it is said because company may have to
face resistance from employees because of which it must effectively implement change
management approaches such that organizational working changes can be effectively
implemented (Gallagher, 2019.). Following is the kotter's 8 steps model for change for Marks &
Spencer.
Increase urgency of change-
Company has to develop a urgency of change for the employees by which it can motivate
employees to improvise their working capability in such a way that company is able to achieve
its organizational goals and also at the same time it can reduce the employee resistance to
change.
Build up growing team-
Marks & Spencer can also develop organizational teams for the effective implementation of
change through which it can make sure that company is able to fulfil employee requirements and
through this activities Marks & Spencer can influence employees to integrate change.
Develop a vision for change-
Company can also showcase a clear organizational vision to employee by which it can provide a
detailed explanation about the advantages which employees will be having through the
implementation of these changes.
Communication for buy-in-
Marks & Spencer must also develop a proper communication channel with the employees by
which it can influence employees to provide their feedbacks and suggestions through which the
effectiveness of change can be increased and also by taking effective feedbacks from employees
company can increase their creativity for problem solving.
Empower action-
Organization must also empower employees to implement changes in the work area by which it
can increase work productivity of the employees through which employees can increase their
engagement in developing organizational working strategy in such a way that employees are able
to achieve high work productivity.
Create Short term wins-
Organizations like Marks & Spencer is a complete long hierarchy of chain because of which it
will be very difficult to implement sudden change because of which company must use

integrated working process in which consecutive continuous small efforts are made to increase
the work productivity.
Consolidating Gains-
It is important for organization to maintain its efforts to increasing working process and for
which it has to measure the advantage which are achieved for the implementation of change and
through which it can increase the probability of achieving targeted update.
Make change stick-
Through the developed change company can achieve its target but has to make sure that changes
made for increasing the effectiveness are long-lasting and able to provide company an advantage
in long term.
Sustainability-
It is very important for Marks & Spencer that it tend to provide new and rare products to
customer through which it can make sure that it is able to achieve organizational goal by
improving customer engagement with organizational activities which will increase customer's
loyalty (Goworek, H. and et.al, 2018). Thus Marks & Spencer has to implement several
organizational changes in such a way that it can enhance the work productivity by which it can
reduce organizational expenditures and also increase company's sustainability in the market
place. Marks & Spencer has to evaluate the changing market trends and has to make sure that it
is able to improvise organizational working strategy accordingly through which it can make sure
that it is able to attract new and trendy customer towards the organization by which it can
achieve high sales and also can increase the chances of having diversity at its work place by
which it increases customer count.
Thus, in order to increase the customer count company has to evaluate the current
working process and has to evaluate the difference with the current market trend, then on that
basis it can develop concentrated to working strategy to improve the weak areas which are
making negative impact on the working process (Virah-Sawmy and et.al, 2019). Thus, this is
important because in order to maintain company's sustainability in the market company has to
make sure that it is having a competitive edge through which it can attract customer on that basis
and can maintain its sustainability in the changing market place. Also, with that company has to
increase its involvement in the implementation of technological advancements at the work areas
through which it can enhance the customer's experience.

This is important because technological advancement is motivating customers to increase
their engagement in online activities because of which company can improve the working
process accordingly. This is beneficial for the organization because in the present time of
COVID-19 travelling is limited because of which organizational sales were also affected through
traditional means like in-store purchase (Adams and et.al, 2016). Due to which organizations like
Marks & Spencer has to increase its engagement in online activities by which it can influence
customers to make purchase from online customer touch points and utilize organizational
services. Through this integrated approach of online and offline activities company can increase
its sustainability in the market place and has increased the probability of achieving
organizational goals.
Recommendations
After analysing all the management, marketing, business and change management
strategies of M&S it is recommended that they should make some changes in their price
strategies as they are focusing on the quality which is good but for that they are taking too much
expensive prices which all the people can't afford this will impact on their sale and profit margin.
They should enter in such market where people are not aware about the brand such as in
developing counterspies (Hitt, 2020).
In developing countries they can open their stores as the rent and operating cost of the
store in developing country is lees as compared to UK and London, and people will get new
products so the profit of the company will get increased. Apart from this they can diversify their
products as the competitors of M&S are dealing in numerous products at the same time so it has
become a threat for the company, because diversity has been a big issue in front of the company,
they should take quick action to overcome this, so the competitors don't take undue advantage of
their issue.
It is suggested to the company that they should use social media platform to encourage
and promote diversity. As the market is tuning towards online, many people preferring to
purchase products via online instead to going to physical stores. So it is recommended to the
company to put more detailed information on their website so anyone who visit the website and
get the entire information about the product.

CONCLUSION
By analysing the whole report it is concluded that this report shows various relevant
strategies about the company and how the particular company can use strategic tools and
methods to enhance the profitability. Except this various leadership styles has been explained, by
which the company can manage its resources and increase the sales by adopting correct
leadership styles. Apart from this, impact of change management has been described in this
report. Besides this, various sustainability strategy have been explained which will benefit the
company in the near future. Except this various suggestion and recommendation has been given
to company which will help them to rule the market.

REFERENCES
Books and journal
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review. International Journal of Management Reviews. 18(2). pp.180-205.
Archambault, J.R., 2019. An Examination of Leadership Style and Supply Chain Performance in
Supply Chains with High Levels of Complexity. Wilmington University (Delaware).
Gallagher Jr, M.S., 2019. The Relationship of Leadership Style and Motivation to the Aptitude
for Resiliency for Entrepreneurs Success: A Correlational Study (Doctoral dissertation,
University of Phoenix).
Goworek, H. and et.al, 2018. Managing sustainability in the fashion business: Challenges in
product development for clothing longevity in the UK. Journal of Business Research.
Hitt and et.al, 2020. Strategic Management Theory in a Post‐Pandemic and Non‐Ergodic
World. Journal of Management Studies.
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal.6(1). p.3.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series.2. pp.141-149.
Maamari, B.E. and Majdalani, J.F., 2017. Emotional intelligence, leadership style and
organizational climate. International Journal of Organizational Analysis.
Martin, M., 2017. Porter's Five Forces: Analyzing the Competition. Business News Daily.26.
Velikorossov and et.al, 2020. Strategic management.
Virah-Sawmy, M. and et.al, 2019. Sustainability gridlock in a global agricultural commodity
chain: Reframing the soy–meat food system. Sustainable Production and
Consumption. 18. pp.210-223.
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