Report on M&S Management Model, Macro Environment and PESTLE Analysis

This report provides a comprehensive analysis of the management model employed by Marks and Spencer (M&S), a major British multinational retailer. It begins by outlining the core elements of M&S's management model, emphasizing strategic change initiatives and the application of Kotter's 8-step change management model. The report details each step of Kotter's model, including the need for urgency, building a strong coalition, establishing a clear vision, removing obstacles, and creating short-term wins. It also explores strategic management theories applicable to M&S, such as competition-based, resource-based, and survival-based theories, highlighting how these theories inform M&S's strategic positioning. Furthermore, the report conducts a PESTLE analysis of M&S's macro environment, examining the political, economic, social, technological, environmental, and legal factors impacting the company's operations. Each factor is discussed with relevant examples, such as the impact of Brexit on political factors, shifting consumer preferences affecting social factors, and the adoption of new technologies. The analysis provides insights into how these macro-environmental factors influence M&S's business decisions and overall strategy.

A high volume public private sector
organization
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Describe about the management model for M&S, bring out underlying theories, proponents
and unique characteristics of management model.......................................................................3
TASK 2............................................................................................................................................7
Conduct an analysis of Macro environment of its operations, discuss about factors of Pestle
with example................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marks and spencer is based on the major British multinational retailer with headquarters in
London. Specialises in selling various clothing, food items and home products. These are
considered the mostly of its own label. M&S was founded in 1884 by Thomas spencer and
Michael marks. It has currently open 959 physical stores across UK, including 600 different that
sell food items. This organization offers food items through online food delivery service.
This report will discuss about the management model for Marks and Spencer which brings
out underlying different theories, characteristics of this model. Furthermore, it will conduct an
analysis of Macro environment of its current business operation with the help of PESTLE
framework or tool.
TASK 1
Describe about the management model for M&S, bring out underlying theories, proponents and
unique characteristics of management model.
Marks and Spencer is a leading organization that currently undergoing some kind of change.
There are various programs on the changes resulting from different management practices such
as business process (Day and Armstrong, 2020). For Example- it is based on the ongoing process
of change at M&S as strategic change. It is usually reserved for such initiatives.
Kotter’s Management model for M&S
It is based on the change management model which is mainly consider different
processes for improving overall M&S. Change is a process that need to be handle the operations
of enterprise after certain period of time. It could be managed its management level and
important to implement as successfully to gain same level, achieving desirable goal or objective
(Mendy, 2019). Kotter’s Model have been introduced 8th different steps of model that help for
M&S to implement their desirable change successfully. On the other hand, it also mentioned that
change of enterprise needs in presence of their competitors as quickly.
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 Need of urgency- M&S needs a quick change in their business to expand their business in
global marketplace. Manager should consider all essential skills, products and make a
strong competitive decision. Alternative competitors of M&S is focused on the change in
business process while implementing innovation for growth and development. At the
time challenging situation, M&S to retain their potential consumer before opening hour
and they have to call meeting on urgent basis. In this way, it help for introducing a loyal
scheme that who can purchase product and service from M&S.
 Strong Coalition- In M&S, it is mainly focused on the implementation of change without
any strong leadership. It means having a profit without large investment in global
marketplace (Sullivan and Gouldson, 2020). Through this, M&S can measure the change
without leader on daily basis. Within M&S, each and every team members have
participated in overall business towards change lead to success.
 Change in goals and Mission- M&S do more practice and perform internal audit to make
sure that all team members are working within knowledge. In this way, it would increase
the mission and objective of enterprise. According to this model, it help for M&S to
change their business approach as per client demands. Thus, it will automatic change the
current goal and mission of business.
 Discussion and communication of Vision or mission- in M&S, manager will focus on the
interact with other team members regarding the vision or mission. It can be developed or
create an effective plan through discussion, identifying best management needs and
achieve common goal of every employee. In this way, each and every staff members are
focused on the common goals and perform their specific duties.
 Remove obstacle- M&S have concerned about threat, risks which increasing a problem in
term of business operation and function. Sometimes, M&S could start with need of
urgency and reviewing the obstacle in business process (Day and Armstrong, 2020). In
case, if any kind of obstacle identified such as conflicts among employees and lack of
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business performance and efficiency. These are resolving through effective plan or
procedure in proper manner.
 Short term goal- In M&S, management while identifying the vision among staff
members. They should be appreciated every efforts of employee which made them
perfect or efficient task in proper manner. Sometimes, it helps for motivating and
inspiring the employee in marketplace.
 Build the change continuously- in this step, M&S has defined the need or requirement of
enterprise that help to be productive. It does not stop after certain level of change in order
to handle the market situation or condition. This will support for M&S to provide the
equal right of every employee so that they can gain more opportunities (Day and
Armstrong, 2020). Marks and spencer needs to be productive and perform certain level to
monitor regular work on the management.
 Relation with enterprise’s culture or environment- M&S is always relates to change idea
and implement appropriate a healthy environment strategy. This company should
establish a strong connection with changes, innovative idea and strategies with business
environment (Sullivan and Gouldson, 2020). Usually, it arise problem or issue within
M&S regarding vision towards business activities. it is not clearly defined or focused on
treating other activities as their business.
Characteristics of Kotter’s management model
The primary characteristics of this management model is to understand learn as
successful change occurs when there is commitment, a sense of urgency, stakeholder
engagement, clear communication, vision, openness and strong leadership. These are considered
the important characteristics of management model that help for supporting M&S in term of
business performance and efficiency. Kotter’s 8 change model recognises of each characteristics
in proper manner. M&S can use characteristic of Kotter’s Management model for identifying
right people together and establishing a strong coordination with other stakeholders. It help for
increasing overall business profitability as well as productivity in global marketplace.
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Strategic Management theories applicable to M&S
The practice of strategic management is always influenced largely by M&S philosophy
on the basis of strategic position in global marketplace. It is beliefs of key decision makers
within enterprise and achieve to the desirable goal or objective. Different practice of strategic
management may be establishing the linked to other common theories of strategic management.
 Competition Based theory- it is commonly used theory that applicable in M&S for
existence of enterprise and increasing the profitability in long run, gain a competitive
advantage over its rivals in global marketplace (Sullivan and Gouldson, 2020). This type
of theory will help for M&S to maintain the position of its external environment or
culture. It acquire the business develop adequate intelligence in order to monitor the
competitive force within marketplace
 Resource Based theory – this type of theory is based on the premise that an M&S
improve its competitive advantage lies in particular resources. Through this, M&S can
achieve the competitive advantage as ability to produce superior’s performance items by
using unique resources and capabilities which are becoming valuable often difficult for
rivals. M&S can use the competitive advantage such as tangible and intangible assets,
*access to supply or distribution of products (Sullivan and Gouldson, 2020). In M&S, it
should maintain the excellence business culture and environment in proper manner. The
primary value of enterprise is to enhance their exploitation of opportunities and ability to
neutralise potential risk, threats.
 Survival Based theory- It is a type of notion that M&S needs ensure its survival by
continouslu adopting to its competitive environment or culture. Here, M&S trail its
current market development as opposed to being in increasing as innovations (Day and
Armstrong, 2020). This theory will help for organization to consider all essential
resources that can improve overall business capacity.
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TASK 2
Conduct an analysis of Macro environment of its operations, discuss about factors of Pestle with
example
Marks and Spencer can use pestle analysis as strategic tool or platform to analyse macro
environment of organization. Pestle stands for political, Economic, Technological, And
Environmental as well as legal factors that directly impact on the macro environment of M&S.
 Political Factor – this type of factor is impact on the M&S where they have been
provided the massive political advantage or benefits (Kuusela, 2019). But due to Brexit,
there are different policies and procedures not running longer as apply to the business.
Thus, it is directly affecting the overall M&S shipping out of England. M&S overseas
outlets will have to shut down while increasing the prices or cost.
 Economic Factor – While M&S have indeed as retail giant, current market trend in UK
which are shifting towards small retail stores. These are providing the lower mark-up
price thereby it allows for retaining premium status in global marketplace. Nowadays, it
has been increasing the majority of population in UK, which are taking to prefer as local
retail physical store rather than M&S premium items. But at certain point, it would be
generated as direct threat for M&S in term of target market (Pandey, Pandit and Pandey,
2020). In this way, M&S brand has not able to devise a means of combating this risk or
threat. For Example- M&S have been hit by closing of physical stores in marketplace. in
this way, it had to make cut job 3% of their 60,000 staff members.
 Social Factor- This factor is impact on the M&S where running the business as long
lasting existence. In UK, there are large number of population associates with brand in
past without any bottom revamp of enterprise. This will help for organization to be
projected and lose as majority of existing client (Helmold, Terry and Hummel, 2020).
Through this factor, M&S have been encountered by dominating the ready to handle the
industry. Sometimes, it will be increasing the consumption of meals in UK and establish
business as top leading brand.
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For Example-M&S has no specific exception to client but they have fixed the
range of clothes up to date, keep with latest trends. Because needs, want and demand of
clients have been continuously changed that requires to maintain or control.
 Technological Factor- In M&S, modern technologies are changing and adapting the new
innovative idea. That’s why, enterprise can adopt as self-check out based retailer which
added something good that really helpful for business growth and development. Usually,
M&S has introduced the multiple check out store and their plan to increase use of
Artificial intelligence technique in future. On the other hand, company have already
established the business in which become quite effective in uk marketplace (Nandonde,
2019). Alongside, M&s have established as e-commerce store that is quite effective
within global world.
For Example- it also found that M&S website and thus, people can save their time,
money by shopping at M&S. Adaptation of new technology may help for establishing as
stronger brand presence among competitive marketplace.
 Environmental Factor- M&S has promoted their business as luxury brand because they
have more concerned about its environment effects. Sometimes, it also promoted the
business as sustainable retailer with providing multiple good and service on different
occasion (Helmold, Terry and Hummel, 2020). But still it may have increase climate
related issue or problem at hand this move from M&S. For Example- this company will
sell fair trade good and service. it allows for M&S to reduce their production cost/price
and thus enable to environmental friendly culture of business.
 Legal Factor- this factor is consider as important aspect of M&S, which involved the
different kind of legal disputes. Every legislation have made it harder for remain maintain
their strong position (Helmold, Terry and Hummel, 2020). In order to gain more
opportunities. For Example- recently, M&S have faced dispute with other Frascati
landlord and consider as common dispute between enterprises. in this way, company will
change their trade legislation after Brexit, consideration as legal factor will directly
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affecting on the brand. Sometimes, it would be identified the legal enterprise strategy and
not able to elevate.
CONCLUSION
In this report, it is mainly focused on the M&S and where they have established the business
in global marketplace. This type of company has become first British retailer to make overall
business growth and development. It has summarized about the management model for Marks
and Spencer which brings out underlying different theories, characteristics of this model. It can
be performed the macro environment analysis, identifying business activities through PESTLE
framework or tool.
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REFERENCES
Book and Journals
Day, C.F. and Armstrong, B., 2020 Addressing the Challenges of Data-Driven Analysis in
Intuition-Driven Organizations.
Helmold, M., Terry, B. and Hummel, F., 2020. 11 Tools for Negotiations. Successful
International Negotiations: A Practical Guide for Managing Transactions and Deals.
p.173.
Kuusela, E., 2019. Sustainability trends effecting modern business practices.
Mendy, J., 2019. Supporting the creation of shared value. Strategic Change. 28(2). pp.157-161.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Pandey, S., Pandit, P. and Pandey, S., 2020. Marketing Strategies for Upcycling and Recycling
of Textile and Fashion. Recycling from Waste in Fashion and Textiles: A Sustainable and
Circular Economic Approach. p.253.
Sullivan, R. and Gouldson, A., 2020. Climate Change and the Governance of Corporations:
Lessons from the Retail Sector. Routledge.
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