Strategic Management Analysis: Marks and Spencer PLC Report

This report provides a strategic review of Marks and Spencer PLC, a multinational retailer specializing in clothing, food, and home products. It examines the company's background, including its history and international presence, and analyzes its development processes, particularly its partnership with Ocado. The report delves into leadership styles, focusing on the democratic leadership of Steve Rowe and the transformational leadership of Archie Norman, and their impact on the organization. It also explores change management initiatives, outlining the change path, starting point, style, target, and levers used by M&S. Furthermore, the report addresses the sustainability of the organization and concludes with recommendations for future strategic direction.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
2.Background of an organization.................................................................................................4
Process of development...............................................................................................................5
3.Leadership style in organisation...............................................................................................6
4.Change management.................................................................................................................7
5.Sustainability of organisation...................................................................................................9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management delivers the entire guidance by growing policies and plans
constructed to acquire objectives and later allocating resources to execute the plans. It supports
organizations to gains competitive edges on top of their rivals. This also involves the proper
formulation of the prime initiatives and goals taken by the company's. The selected company for
this report is Marks and Spencer PLC which is a multinational retailer that is specialized in
trading clothes, food and home products mainly of its personal label. M&S had opened its first
store in 1884 and till now its has approx 1038 store globally (Hitt and Duane Ireland, 2017).
With its international presence the company currently earning around 10.2 billion yet in the
current year the revenue has dropped with 2 percentage. M&S vision is to stand against the
measures and mission is to provide good products to all. This report outlines and provides a
strategic review of Marks & Spencer and conduct analysis of fresh development methods used in
the strategy. It also examines the procedure of implementing a strategy and evaluates leadership
styles, used management models ans sustainability by delivering future recommendations.
MAIN BODY
2.Background of an organization
Marks and Spencer PLC is the biggest British multinational retail food and clothing
organization. Headquarters of this company are in London. It was established in 1884 as small
kiosk in Leeds Yorkshire market. Later well-known as Marks penny bazaar. This kiosk was
haberdashery, sheet-music, toys and household business of Poland Jewish refugee called Michael
marks (Scott and Walker, 2017). Then some sign was generated by that was don't ask for the
cost- its penny store. Then Thomas Spencer joined as a partner in Michael Marks business in
1894. After some years son of Marks whose name was Simon transformed stalls and kiosk to
shops in numerous markets of north England and introduced organization bran d name as St.
Michael which was famous label for decades. In 1988, Marks and Spencer group PLC, a parent

firm, acquired brooks brothers and older retailer of U.S clothing, however it auctioned that
portion in 2001 and at that time the firm operated above 300 outlets of retail in United Kingdom.
It was colloquially known as Marks and Sparks along with extra outlets in other dozen countries
that includes Germany, Spain, Hong-Kong and France and later after a decade the organization
doubled the number of stores in United Kingdom around 700. M&S is the epitome of stylish and
sustainable wear and is humble bearer of legacy which dates overall of 135 years that discovers
the latest trends along with it delivers a lot of varieties at its stores. Later Company began to sell
for both men and women in clothing accessories and beauty products by collaborating with other
developed brands. The organization also has belief that the style is special and external and make
possible efforts to bring the best in its consumers wardrobe at this period of modern fashion (Hitt
and Duane Ireland, 2017).
Process of development
M&S is a multinational company of used to sell clothes, food as well as home products.
Organic development is occurring on regular bases as manager is trying to innovate its products
and customer's services. M&S employees are doing good at their place but manager all take care
of their personal development. For developing employee's moral and skills as well, the
management is trying to improve the internal environment with its maximum potential yet the
growth rate is still lacking behind the company has opened huge number of store international
and also due to some specific reason they have close the store in a particular reason, M&S is
having a higher rate of growth in its external factor with rapid expansion of its brand in all over
globe.
M&S partnership with OCADO
Ocado is a public trade company that offer the grocery to sell its products through online
market (Barbier and Burgess, 2020). The Ocado is having a build with the latest technologies as
they claim to have better value than brand of amazon. The M&S has joined with Ocado to
expand its business. They have transformational partnership in this the M&S also able to sell
their product through ocado website this help M&S to increase its sell rapidly and it is also lead
to increase the brand value. With the partnership of Ocado the M&S can also able to sell its all
the food product online. Earlier the company is not able to sell its products and services online
this is lacking the sell of the company. But after doing partnership with Ocado the sell has been

increased rapidly (Scott and Walker, 2017). The product is being in good quality the value has
been increased with the fast delivery process. The partnership is taken place in 2019, the deal is
set in that half share of Ocado are taken by M&S and the M&S can easily sell its product by the
mean of online market. As the people can order the M&S products through online market of
Ocado the cost that is incurred in this is £750m for partnership. With this investment of M&S
the company can now sell all of its product online this has increase the product value and brand
image in international market. As the M&S and ocado become the jointly owners of company
with half shares (Gandolfi and Stone, 2018). Its is strategic significant opportunity to Ocado as
well as M&S. The current market can easily show effective the strategic management is effective
for both the company. M&S also uses to development a new product in new market and sale
them online to wider people. M&S is using horizontal and vertical diversification to attract the
new customer's. In horizontal, they are changes and making modification in existing product
range so that people who may know the product they can also get modification. In vertical
diversification the brand itself be the distributor of products. Basically for its food and clothing
M&S is using horizontal type in which they change product with taste and preference of
customer's and sale them through Ocado online services.
3.Leadership style in organisation
Leadership is a technique to motivate and inspire group of people to do their work
towards achievement of group goal. Leadership is action to prepare the people with their creative
and borrowed ideas and innovations applied in the workforce. Marks and Spencer is a UK
retailer company having its headquarter in London. The company is having a large operational
system as it used to sell clothes and food products. The leaders in the M&S uses to inspire its
group people so that is productivity and brand image get improve with leading style.
Democratic leadership style followed by Steve Rowe: Leaders play a great role in the growth of
an organization. They are the one who make vision and work in the direction to meet the goals
and objectives of a firm. Also, the growth of the firm and leaders depends upon the leadership
style they opt. The Steve Rowe of Marks and Spencer have adapted democratic leadership style

which have helped the business to grow flourishingly. It has mainly ensured the participation of
individuals in a team. It gives opportunity to all to express their thoughts and ideas. There are
many advantages of this particular style such as it is applicable for almost all types of business.
Solutions acquired on the bases of this style have the ability to last for a long time. It promotes a
healthy and engaging environment within the team (Yahaya and Ebrahim, 2016). Democratic
style has assisted the Steve Rowe with good ability in solving complex issues. It allows the team
of M&S to come up with innovative and new ideas for tackling critical issues and for
examination of the strategy. It has helped the organization to come up with creative ideas.
This style has built up a strong collaboration within the teams. The firm make certain that
the mentioned leadership style will encourage the participation and evolvement of all. It will help
the firm to come out with flying colours. It provides a wider picture to the view. It boosts the
morale of the employees and gives them a feel of satisfaction with the company. That enhanced
the productivity level of an individual (Gandolfi and Stone, 2018). Strong relations are built
within the team. It helps cultivated good qualities such as honesty, trust and confidence in the
team.
But also the democratic style has affected the business in negative ways. It has created such an
environment that every individual can expect that their thoughts and ideas should be valued and
implemented. But that is not possible so its hurt individual exception and also arise conflicts
within a team. When a sudden critical situation arises it needs to be handled authoritatively and
quick but with adaption of such style leaders and managers may fail disastrously. But the leaders
of Marks and Spencer have made a good balance between the disadvantages and benefits of
democratic style which have help the firm grow effectively (Al Khajeh, 2018). It has come up as
the most appropriate style for the company. Therefore, it is clearly analysed that with the help of
effective leadership style, company is able to meet the define aim of a business and improve the
overall performance of a business in positive manner as well. Hence, through democratic
leadership style, quoted business may easily take a business at further level of success, whereas
if leader opted other leadership style, it may affect the entire working performance in opposite
manner.
Archie Norman leadership style in M&S: Archie chairmen at M&S and using transformational
leadership style in its decision-making and motivational work. With this leadership Archie is
working with its subordinates and finding the changes which are needed and guide the people to

perform the change. Transformational leadership lead to identify the various opportunities to the
M&S and encourage the people to do their work with their responsibilities. The main role of this
leadership is to inspire the employee's to endeavour beyond expectation to work in shared sight.
The leadership styles of Steve Rowe and Archie Norman has some significance as
democratic style of Steve uses to inspect and take the feedback from its employees and take
decision accordingly. Archie's leadership is quite more effective as in the transformational
leadership help M&S to identify the necessary changes and change them regularly. The Archie's
has used to transformational leadership as it inspire the employee's and focus more on
collaboration that help drive the M&S vision.
4.Change management
CHANGE KALEIDOSCOPE
Change path: As the review of customer's M&S has found that the products are not that much
capable in the competitive market so for this they make necessary changes. The company has
decided to make changes to resolve this issues.
Change starting point: The board member in the M&S has taken decision to make changes which
are required to resolve the issue related to quality of product. With this decision the company
will increase the revenue.
Change style: Manager of M&S has make use of different changes style in order to bring change
so that needs of customer's can be fulfilled. The manager has make use of participative in which
they use the involvement of employees to give its feedback for the upcoming change. With the
help of participative style major peoples of company have given their creative ideas which are
helping in make effective decision for company.
Change target : M&S having its target to produce a premium quality of products which will help
to improve the customer's loyalty. Making effective changes in the existing and new products
and services so that the company gets benefits.
Change levers: For making an effective change management the manager preplanned the
operational system, its structure, role and responsibilities of all the employee's in the
organisation.

Marks and Spencer uses the major model of changing management to display the seven
elements that are factored together to fulfil its adequacy (Trigeorgis and Reuer, 2017). There are
seven factors that are in this model and are mentioned below:
Strategy
M&S pursues distinct business strategy with specific concentration on the advanced features and
abilities of its products. The firm aims to get benefits from its foremost move advantage to an
increased extent as in its case of launch9ing a new designed product. It uses switching costs
strategies and delivers some kind of opportunities to leverage relations with its current
consumers to provides offers on other services and products (Gökdeniz, Kartal and Kömürcü,
2017).
Structure
The structure of M&S remains hierarchical because of its company size which is very large. Its
project teams represents necessary features of M&S structure. Two major factors of
organization's structure are specified as effective collaborated and project based grouping among
divisions and groups within the organization.
System
M&S rely on huge range of systems which include yet not have any limits to selection and
recruitment of employees. The multinational organization depends on processing systems of
transaction, knowledge management and business intelligence systems. Competitive advantages
of United Kingdom's is based on effective developments of products to a great extent compared
to other systems.
Shared values
Organization prepares some core values to display its works ethics and corporate culture. The
company and includes required innovation to show perfect planned shared values,
Skills
Marks and Spencer form abilities and competencies which enables its resources to acquire
organization goals and objectives.
Style

The company trains its senior employees to maintain their attitude properly because the style
represents Marks and Spencer's code of conduct of their methods of communication and
symbolic decision-making that forms leaders management style of an organization.
Staff
Changing management of staff includes managing their talent and all human resources regarding
decisions of company like recruiting, training and system of rewards in Marks and Spencer to
make appropriate modifications in managing its strategy.
5.Sustainability of organisation
Sustainability is a wide term basically it focused on the current needs and want without
conciliatory the capabilities of upcoming generation and their requirements. The sustainability
primarily consist of economic, environment and the social factors. Sustainability is relating to a
fresh thought which change the future better than today accordingly. M&S having its
sustainability plan for current as well as future. M&S is lunching its plans of sustainability which
are eco-friendly and which are following ethical values of the society (Barbier and Burgess,
2020). As the company used to sell the food and clothing products in the international market.
Earlier M&S is using less cotton in its clothing product which used to sustain less so in the
current year the M&S is using more cotton material to reach more customer preference. Marks &
Spencer is having nice trade and using recycled product in its product categories which is
helping company to sustain better in its near future (M&S Unveils Revamped Sustainability
Strategy, First-Ever Science-Based Target, 2017). M&S has decided to build a strategy in which
is prepared focusing on CSR (corporate social responsibilities) because without following social
responsibilities company cannot able to survive and sustain. With the social responsibilities the
M&S had made a fair image in the mind of its potential customers and employee's so that they
will continue with the organization in long- term than M&S make strategy of sustainability to
make its packaging techniques better so that they use environment friendly material to pack the
products which can be easily recycled and not harm the nature. The M&S planning to use
strategy in 2022 is to reduce the wastage of food product and clothes product because this both
industries are emissions very much but in future M&S will try to reduce this with 80 percentage
this is one of the sustainability strategy of M&S (Fakhimi and Mustafee, 2019). To sustain in the
international market M&S will optimum utilization of its organization resource so that the

company will produce more products and less wastage in the environment. By doing this more
customers get attracted towards the brand this will increase the sustainability of M&S. Company
is thinking to developing a technique to reduce its wastage of resource to zero level. Reduce the
exploitation of natural gas in the operational activities (Shults and Wildman, 2020). M&S is
planning to being more transparent which uses to provide a detail information of its product to
customers. So that they will have a clear image of product which are purchased by customer's
this work will do by providing information on the label to identify the product quality their
sustainable criteria. It will become easy for customer's to buy their required quality of product in
global stores and online of M&S (Elmqvist and et. al., 2019).
M&S is using reward to customer's strategy to enhance their sustainability in future
because the customer's also expect from its brand so M&S provide gifts and rewards to the
customer's who are purchasing sustainable products of the company (Kijima, Ochiai and
Ishiguro, 2020). The company have a clear vision to ben sustainable for a long time, so they are
planning on regular basis from the time when the company has been established with its
strategies from past year the company has reach a great position in the market and now also
M&S having its preplanned ideas which will improve current sell as well as help to capture
future market.
Recommendations
M&S is one of the huge international brand (Martín and Mittal, 2020). To increase its
development from its competitive company the company can introduce digital marketing
technique to promote its products because with digital marketing technology M&S can reach a
wider range of customer as it is an international brand so digital marketing will definitely help it
to expand and develop its promotional methods. M&S can develop is selling with innovation and
this is done through its employee's. The company should recruit more qualified employee's so
that they have creative and innovative ideas which they can apply in their work and lead to better
development of M&S brand. With improvement and development more international customers
are going to attract towards the brands and its brand image is also get high. M&S have
transactional leadership style in which the employees are rewards and punished accordingly but
if the leader will punish the employee's than they get demotivated so as per the industry and
situation in M&S the transformational and democratic leadership styles are more effective in

M&S because in transformational leadership help to develop all the individual skill and
knowledge which are required according to they need of M&S and democratic leadership will
help to motivate the employee's of M&S because all the employee's will get chance to give the
suggestion and ideas to perform the task because the leader in the M&S will work with high skill
or experience so if they are giving their ideas than it will be fair and innovative (Chaturvedula
and et. al., 2020).
CONCLUSION
The above report concludes that organization are using different strategic management
needs to meet its goal and manage their approaches in effectively. M&S is also using strategic
management in its organization to work smoothly. M&S is development method to expand in
international market company used product development and diversification methods to develop.
The company has used change management to improve its product quality. The company make
use of product development strategy in order to expand its business both at gross and
international stage. M&S is using leadership styles to lead its employee's and motivate and
inspire them well mainly transactional leadership is used in M&S to deal with employee's. It
further concluded that M&S has adapted its strategy as per changes in external environment to
achieve its goals. M&S is having different plan to sustain in the current and future market more
effectively.

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Online
M&S Unveils Revamped Sustainability Strategy, First-Ever Science-Based Target, 2017
[Online]. Available Through: <https://sustainablebrands.com/read/organizational-
change/m-s-unveils-revamped-sustainability-strategy-first-ever-science-based-target>.