Marks & Spencer: Strategic Management Report and Analysis

This report offers a comprehensive analysis of Marks & Spencer's strategic management, beginning with an introduction to strategic management principles and their application to M&S. The main body delves into M&S's core strategies, emphasizing customer satisfaction through a three-step process: restoring basics, shaping the future, and embracing sustainability. The report examines the company's internal and external environments, utilizing PESTEL and SWOT analyses to identify political, economic, socio-cultural, technological, legal, and environmental factors, as well as strengths, weaknesses, opportunities, and threats. It explores M&S's transactional leadership style, change management strategies, particularly in response to Brexit, and its sustainability initiatives. The report concludes with recommendations and a summary of key findings, highlighting how M&S can enhance its competitive advantage and adapt to the dynamic business landscape. The report also touches on the company's methods of development and how it is working towards becoming a digital retailer.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
M&S strategy..............................................................................................................................1
Methods of Development............................................................................................................2
Leadership style of M&S............................................................................................................4
Change management of M&S.....................................................................................................5
Sustainability Strategy of M&S..................................................................................................6
RECOMMENDATIONS.................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is as process of planning, monitoring and controlling the activities
of the workforce towards the attainment of organisational goals. It involves the formulation of
strategies by the top management of the company for ensuring the success and growth of the
organisation. Strategic management is a way used for the enhancement of the profitability and
productivity of the company. Moreover, this report will focus on the strategic management of
Marks & Spencer in the working environment. Marks & Spencer is British MNC retailer
headquartered in London, UK (Brenes, Ciravegna and Woodside, 2017). The company have
diversified its operations in clothing, home products and food products. M&S was founded by
Michael Marks and Thomas Spencer in 1884. These strategies will allow the company to create
value for the customers in order to satisfy them. It considers the analysis of the external and
internal environment of the company which will provide them an overview of the position of the
company in the competitive industry. This report will analyse the company's internal
environment through the SWOT analysis and STP approach. Also, there is an evaluation of the
external environment of the company which is performed through the PESTEL analysis.
MAIN BODY
M&S strategy.
M&S implements a strategy which focuses on the enhancement of customers satisfaction.
For this the company uses a three step process. The first step is the restoration of basics which
involves sustaining the competitive advantage of the company by focusing on their base and
effective products that provide value to their customers. For this the company can devise various
strategies which will enhance their productivity in the external environment. This also includes
the transformation of the basics into faster one which will enhance the efficiency of the
workforce. This will consider improvement in the communication ways of the company and also
lowers the operational cost of the company. The next step is the shaping of future of the
company. For this M&S will evaluate the competitive forces of the company and develop
strategies for the future threats and prospects. This will provide a platform for the company
where they can generate digital leads which will enhance their business across the globe.
Furthermore, the company can also build their competitive advantage by supplying innovative
products in the industry. The last step includes making M&S special by adopting sustainability
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plans and models. These plans will ensure the future growth of the company and establish
competitive advantage for the company. The company can also adopt various leadership styles
that will ensure change management in the company (Bryson, Edwards and Van Slyke, 2018).
Also, they can rebuild their growth in international market by offering effective value added
products to the customers. In the food sector the company can modernise the food concept but
taking cultural diversification along with it. The company can implement strategies to become a
digital retailer which will elevate their position in the industry.
Methods of Development.
The methods of development for M&S can be explained thorough the analysis of the
external and internal environment of the company. For the evaluation of the external
environment of the company PESTEL framework can be used. This framework is explained
below:
PESTEL Analysis
The PESTEL analysis of M&S includes the following factors which are explained underneath: Political Factors: These are the factors which defines the impact of political situation
and changing decisions of policies of the government on the working environment of the
company. One of the factor is free trade which have allowed M&S in diversifying their
operations across the globe. The another factor is the impact of Brexit which might result
in the loss of numerous free trade policies which will restrict their operations to a limited
area. This factor can be considered as a threat for the company. Economic Factors: These factors are the inflation rate, exchange rates and many more.
The price factor is considered to be an effective factor which can elevate their position in
the industry. M&S have taken a decision to switch to foreign suppliers have already
affected their competitors. These factors can be considered as a threat for the company. Socio-cultural Factors: These factors defines the impact of preferences of consumers
and changing trends on the company (Dionisio, 2017). Due to their effective reputation
M&S can easily capture the market through their innovative products. This factor can be
considered as an opportunity for the company as this will help in product development.
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 Technological Factors: These factors include the up gradation or launch of new
technology and their impact on the company. M&S has adopted the trend of online
shopping which have enhanced their customer base across the globe. This factor can be
considered as an opportunity for the company. Legal Factors: These factors include the policies and laws prevailing in various countries
across the globe. M&S is working globally and for that they should ensure government
support in their trading operations. This factor can be considered as threat for the
company as the government situation is dynamic in nature (Dogan, 2017).
 Environmental Factors: This includes the factors like increase in pollution, scarcity of
raw material and so on. M&S have developed their sustainability plan which will
eliminate plastic waste from the environment. This factor can be considered as an
opportunity for the company.
For the evaluation of the internal environment of M&S the SWOT analysis is explained below:
SWOT Analysis
STRENGTHS WEAKNESSES
 The company is a well experienced
brand which has diversified its
operations across the globe.
 The company have offered wide variety
of products to their customers which
has elevated their position in the
marketplace.
 Due to their poor supply chain network
the sales of the company has declined.
 The company is incurring high cost due
to their manual way of processing the
work. The company is impacted by the
perception of the customers also.
OPPORTUNITIES THREATS
 The company can expand their
operations world wide with
improvement in their current products
and launching new products (Drumaux,
2018).
 Furthermore, the company can segment
 Increase in severe competition can
effect the growth prospects of the
company.
 Resistance to change can also effect
their workforce and their level of
efficiency.
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their target market and then implement
their plan of online store.
Leadership style of M&S.
Leadership is process in which a person from the workforce of the company has the
responsibility to mange the operations of the company effectively. It is dynamic process which
involves motivating the people for working in the complex situations efficiently. M&S have
adopted transactional style of leadership in their working environment. The leaders are choose
precisely in the company to manage the change and growth prospects of the company. This
leadership style focuses on the results and the existing structure of the company to identify the
rewards and penalties (El-Hallaq and Tayeh, 2016). The transactional leaders have the authority
in the decision making power of the company. These leaders are responsible for managing the
daily routine activities of the company. M&S uses this style because it is easy to learn and
implement this style. Also, the company makes use of this style in emergency situation which
proved to be effective for the organisation.
This leadership style includes two factors. The first factor defines the management by
rewards. This means that the company is managing their workforce by providing them rewards
for their effective performance. Also, M&S aims at building effective relationship among the
workers of the company. The employers will get the bonus and monetary benefits in this
leadership style. The reward will be decided on the basis of the agreement between the follower
and the leader. The second factor involved in this style is management by exception. This means
that M&S is managing their workforce and keep a check on their regular performance. This
comprises of two leader namely active and passive leaders (Janjić, Karapavlović and
Damjanović, 2017). Active leaders continuously keep an eye on the performance of their
followers and devise strategies to improve them. While on the other hand there are passive
leaders who only checks the task after its completion and inform the followers only about the
involvement of any problem in that task. It can also be predicted that M&S adopt the
transactional style which involves both rewards and punishment for the task allotted to the
workforce. This style motivates the followers by introducing them to their own self interest.
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Change management of M&S.
Change is pervasive and Uncontrollable in nature. Every company must have to go
through a phase where they have to adopt change in their working environment to ensure
efficiency and effectiveness among the workforce. In relation with M&S, the change
management can be explained through the Brexit. The impact of Brexit on the company how the
company have deal with this change is shown in this section (Ethiraj, Gambardella and Helfat,
2017). The Brexit have introduced some challenges for the company which includes the food
price inflation, working according to the changing taste of the customers in the clothing and
many more. To manage the change the company have introduced effective strategies which has
ensure collaboration and cooperativeness among the employees.
This will enhance their motivation level towards the work which will help them in
maintaining high standards of productivity. M&S have adopted the Kotter's Theory for managing
the change and adaptation of the economic climate in the industry. The successful
implementation of leadership style will require positive actions from the leader's side. A leader
plays a crucial role in driving change in the working environment of the company. M&S follows
the following steps for implementing the Kotter's theory :
 Create a sense for urgency: M&S identify the potential threats and devise strategies to
manage them effecti9vely. The company request collaboration from the worker's side to
tackle the threat.
 Forming powerful guiding Coalition: In this M&S aims at searching effective leaders
that can implement change in the organisation. The company forms a powerful coalition
in which the members are form cross functional departments.
 Developing a vision and strategy: M&S aims at developing a vision that will define
their workings in the industry. For achieving that vision the company devise effective
strategies for managing change.
 Communicating vision: The change in the vision must be communicated effectively by
the leaders in the organisation. M&S hires those leaders that handle the issues and
concerns of the workforce regarding the change effectively (Joyce, 2019).
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 Removing Obstacles: This involves that the organisation structure and culture are
aligned towards the management of the change. M&S keep a regular check on the
barriers and people who are resisting the change.
 Creating short term wins: This will motivate the workforce as they feel a sense of
victory after achieving the short term targets. M&S rewards those people who are involve
in the process of change management.
 Consolidating gains: M&S analyse the change management process continuously to
manage the improvements effectively.
 Anchoring change in the corporate culture: the leaders has a duty to ensure that the
change become an integral part of the working culture of the company (Kundu and Bairi,
2016).
Hence, these are the ways through which M&S manage the change development in the
working environment of the company.
Sustainability Strategy of M&S.
Sustainability refers to a concept which is introduced with the purpose of saving the
resources for the future use. This concept is adopted by various organisations for the
maintenance of competitive edge for the company. Also, this concept helps in securing the scarce
resources for the future generation. M&S have developed many strategic pan for ensuring
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sustainability in future (Lawton, 2017). Furthermore, the company focuses on building and
enhancing the capabilities of the workforce in order to sustain sustainability. M&S have
developed plan A as a multi year sustainability transformation plan. This plan is the future
sustainability strategy of the company. It reflects the opportunities and threats for the company in
relation with social and environmental issues that restrict the growth of the company. This plan
will reflect the M&S organisational culture and their commercial priorities. In this plan the
company highlights the current commitments which will not be pursued in the future thereof.
There is an involvement of the leadership on social and environment issues will be solved as
promised to their customers (Marin, 2016). The actions of this plan is aligned and focused
towards the achievement of the organisational goals.
M&S highlights three factors in this plan namely places, people and planet. The place
factor of M&S reflects their help in transforming thousands of people. For this the company is
implementing effective strategies to become a part of the community. The company have
developed an aim of helping 1000 communities in transformation by 2025. the company have
also supported 230 activities which has benefited 3000 people across the globe. The people
factor of M&S plan of sustainability aims at helping 10 million people live healthier and happier
lives. For this the company have planted kitchen range. The mission of the company is to provide
sustainable diets to their prospective customers. For ensuring this M&S have launched a range
of plant kitchen which is extensive and exclusive. The planet factor of this plan involves the
principle based on plastic (Miller, 2018). The aim of M&S is to become a zero waste business
unit. The company is developing lead for taking forward the global concern of pollution and
plastic waste. The aim of M&S is to develop the five principles of plastic which involves the re-
cycle, re-design, re-use, re-turn and re-duce. The company have developed the projects to
eliminate 1000 tones of plastic in near future which involves plastic packaging of food products.
RECOMMENDATIONS
The recommendation for strategic management of the company can be explained as
follows:
 The company is using various strategic tools for managing their operation effectively.
The company can make use of STP approach for focusing on the customers rather than
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their products only. This will transform the operations of the company into an efficient
business unit who is working for the welfare of the community.
 The company have developed a sustainable plan focusing on three factors and five
principles of plastic. The company can use effective ways to enhance their carbon
footprints in their sustainable plan. Also, the company can adopt healthy diet products to
offer them to their customers to enhance their scope of communities.
 The company can also adopt transformational leadership style which can also help them
in managing change in working environment of the organisation. This style of leadership
focuses on the improving the convention of the company by prioritizing the customers
and employees of the company.
CONCLUSION
From the above mentioned report it can be concluded that strategic management plays an
effective role in the growth and development of the operations of the company. Also, there are
many approaches which can be used for the company in enhancing their customer base and
productivity in the competitive environment. This report have focused on the transactional form
of leadership style which is adopted by the mentioned company. Moreover, change is necessary
to be adopted by the workforce and for that there are leader appointed by the company to manage
the change effectively in the external environment. The sustainable plan is quite impressive and
useful which is focusing on the factors people, place and planet. The analysis of the external
environment of the company is performed with the help of PESTEL analysis and internal
environment is done with the help of SWOT analysis.
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REFERENCES
Books and Journals
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Strategic Management Theory and Research. In The Complexity Turn (pp. 21-66).
Springer, Cham.
Bryson, J. M., Edwards, L. H. and Van Slyke, D. M., 2018. Getting strategic about strategic
planning research.
Dionisio, M. A., 2017. Strategic Thinking: The Role in Successful Management. Journal of
Management Research, 9(4), pp.44-57.
Dogan, E., 2017. A strategic approach to innovation.Journal of Management Marketing and
Logistics,4(3), pp.290-300.
Drumaux, A., 2018.Strategic management for public governance in Europe. Palgrave Macmillan.
El-Hallaq, K. and Tayeh, B. A., 2016. Strategic planning in construction companies in Gaza
strip. Journal of Engineering Research and Technology, 2(2).
Ethiraj, S. K., Gambardella, A. and Helfat, C. E., 2017. Reviews of strategic management
research. Strategic Management Journal, 38(1), pp.3-3.
Janjić, V., Karapavlović, N. and Damjanović, J., 2017. Techniques of strategic cost
management–the case of Serbia. Teme, pp.441-455.
Joyce, P., 2019. Strategic management in the public sector.
Kundu, G. K. and Bairi, J., 2016. Strategic management and innovation. Quality Assurance in
Education.
Lawton, T. C. ed., 2017. Strategic management in aviation: critical essays. Routledge.
Marin, S. C., 2016. Strategic Management in Public Administration. Risk in Contemporary
Economy, pp.187-191.
Miller, E. W., 2018. Nonprofit strategic management revisited. Canadian journal of nonprofit
and social economy research, 9(2).
O'Brien, D., Parent, M. M., and Gowthorp, L., 2019.Strategic Management in Sport. Routledge.
Orlov, O., Dumanska, K., and Kobets, D., 2020. Company's strategic success as the basis of its
potential sustainability. E3SWC, 166, p.12002.
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