Strategic Analysis of Marks & Spencer: Leadership & Change Management

This report provides a strategic analysis of Marks & Spencer (M&S), a leading UK retailer. It begins with an overview of the company, its mission, and its position in the retail sector. The report then delves into the methods of business development employed by M&S, including organic growth, opening new stores, store closures, store format changes, and strategic alliances. It examines the leadership styles used by key figures like Steve Rowe and Archie Norman, highlighting their authoritative and supportive approaches, respectively. Furthermore, the report explores the change management models, specifically the Change Kaleidoscope, used by M&S to implement strategic changes. The analysis extends to M&S's future sustainability tactics, including Plan A and their commitment to reducing waste and emissions. The report concludes with a summary of findings and recommendations for the company's continued strategic success.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Company overview......................................................................................................................3
Methods of development used by M&S......................................................................................4
Leadership style use at M&S.......................................................................................................5
Change management models.......................................................................................................6
Future sustainability tactics of M&S...........................................................................................8
CONCLUSION................................................................................................................................9
RECOMMENDATION.................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is all about description of tactics, approaches and other strategic
things that managers while working in a company could carry in order to achieve set aims &
objectives. 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 used 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. 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.
(BUSINESS WIDE, 2021). Organization employ approx 85,000 people worldwide and over them
90% are based in UK. It generates 10,181.9% market revenue by using key strengthens and
building teams of experienced workers. In UK, Marks & Spencer has 959 stores including 615
that only sell grocery products. The success of chosen company has been identified in form of its
operations. It has operated in 29 nations and has 198 franchised stores.

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
that discuss below-
Organic development-
It considers as progress that companies such as Mark & Spencer achieves by maximizing
its output and increasing sales internally. It does not include growth and revenue attributable to
acquisition and mergers. Chosen company by using this method enhance and develop its
business even better than its rivals. According to current approach, firm expand and increase its
sales through usage of own resources which is quite beneficial and useful in term of developing
chance to grow business and generate revenue more than rivals that operates in similar sector
from longer period. Company use existing machines, employees and other approaches under this
method of development that provide benefits in form of gaining competitive edge.
Open new stores-
Along with above, M&S consider this approach as well, it has opened many new stores
across UK through which management sell products and serve services to target market. By
opening new stores company generate more revenue than existing and give touch competition of
its competitors. It is one of the best and most common methods of development that many
organizations while managing their business operations and management practices used. It
allows firm to expand its venture within new and profitable market where profitable buyers are
accessible who seeks purchase quality items exchange of money. This method of development
bring several benefits in context of M&S in term of increasing its customer base.
Store closures (End of lease)-
M&S by closing those stores that are on lease develop its business and manage current
performance of company. It has closed 47 shops out of 100 according to plan relate to shutting
non-profitable outlets by 2022. By shutting high street stores, company lose loyal shoppers, but
reduce risk of failure. By ending of lease, brand can open its new stores at the most profitable
market where success chance is high and consumers reach effectively without searching too
much. Closure of a place such as supermarket or other venture format is permanent ending of
work at specific location. It is another method of development that firm use.

Change format of stores-
The best and beneficial method of business development that M&S and management
select is current one according to that firm need to make change in its existing structure, interior
and format of outlets. By changing existing format of stores company gain a lot of benefits such
as it attract new customers and satisfy existing one as well as retain them for longer period of
time. According to this method of development, firm change the way it displays items, workers
tag each product which make purchasing easy for buyers.
Strategic alliance with Ocado-
M&S take major steps towards business development and according to that firm select
joint venture which enable them to conduct collaborative practice with Ocado in form of joint
venture. It is a type of joint venture partnership which take place in 2019 and cost 2 billion. The
strategic significance of this partnership in context of chosen company is it help developing
existing of company.
Strategic importance of chosen method of development-
When company select all above approaches of business growth they get benefits in term
of increasing sales, productivity and profitability level. By opening new stores at new place firm
attract those consumers who are seeking to buy a quality item from well-known brand like M&S.
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 (Sukri and Shasrini, 2020). 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 (Franken,
2019).
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.
According to this model, company use all eight resources such as diversity, time, scope,
capability of staff and management, readiness, presentation, power and capacity in order to make
change and implement it at workplace successfully. In regard to leadership style, change is
require leader need to adopt new style such as authoritative.
Comparison based on current and actual change introduce by Steve Rowe and Archie
Norman-
The leadership change is beneficial in M&S as it help to increase performance and
productivity level. On the other hand, change that both stakeholders introduce is much better
than previous one because it modifies the way firm operate which is important and beneficial in
form of improving quality and increasing operational efficiency.
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. 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 strategic alliance and other methods of 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. It must above below one tactic-
 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 joint venture for business development. Marks &
Spencer must consider other as well like open new stores at place where people cannot be
able to purchase quality items as at that places brand outlets are far away from home or
residence. It 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. They should pack products by using
recyclable materials.

REFERENCES
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Franken, E., 2019. Building people up: Leadership and employee resilience.
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https://corporate.marksandspencer.com/sustainability/business-wide
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