Marks and Spencer's Strategic Management: Leadership and Development

This report provides a strategic analysis of Marks and Spencer (M&S), examining its leadership styles, development methods, and approach to change management. It begins by exploring the background of M&S and the impact of Steve Rowe's leadership, highlighting the use of transactional an...Read More

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Background informations of Marks and Spencer’s relevant to strategy......................................1
Development methods by strategic tools.....................................................................................1
Leadership style at Marks and Spencer’s....................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Strategic management is a process of setting objectives, analysing business environment,
evaluating strategies which company use in order to expand business and becoming the market
leader in the industry Rothaermel, (2016).
This study is based on Marks and Spencer’s which is a British multinational retailer
report is going to show the importance of effective leadership at M&S. It will also consider
methods of development (merger, acquisition, alliance ) used by M&S since the arrival of Steve
Rowe. (CEO) The importance of the management of change will be discussed by applying
various models to the M&S situation. The report will conclude by looking at M&S’s
Sustainability strategy.
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MAIN BODY
Leadership style at Marks and Spencer’s
Leadership plays an important role in any type of organization and considered one of the
main key of the success and growth of an organization. Leadership is the way of guiding people
and the company in a way which can help them out in increasing productivity and reducing
errors (Muenjohn and McMurray, 2018). There are several styles and ways of. In the context of
leadership of Marks and Spencer it is stated that leader of this retailer has an ability to adapt
changing situations in an organization and make use of leadership styles as per the current
situations.
Transactional leadership: One of the most used leadership style by Marks and Spencer’s is
transactional. As per this style leader of this company focus on employees and identify different
ways to motivate them. A transactional leader believe that employees are key of the success of
an organization they have power of supporting company in accomplishing their goals. For that it
is important to have motivated employees because motivated and valued employees are more
likely to engage with the company.
On the other hand, if employees feel that company and leaders do not focus on them and
are not concerned with them than they also do not support the company and it increase s
employee turnover rate. One of the best ways of leader of motivating employees is rewards
(Kark, Van Dijk and Vashdi, 2018). By providing rewards to employees on the basis of their
performance and other effectiveness it makes them feel valued and they support company in
accomplishing their goals.
In addition, it is also analysed that this company also use democratic leadership style as it
has skilled workforce. By providing them opportunity to take participation in the decision
making process, it makes effective decision regarding projects and business expansion. It also
motivates and makes employees feel valued when they are being given rights to be in the process
of decision making. They provide suggestions to company on which basis company make the
final decision. Kark Van Dijk & Vashdi, (2018).
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Background informations of Marks and Spencer’s
In the context of Marks and Spencer’s it can be said that it has been one of the most
respected retailer who achieved over 1 Billion pounds i9n annual profit. It is a clothing company
who made a tremendous growth because of its good quality standard clothing at a reasonable
price. It is also stated that kit also refunded to customers if customers found any variances and
get poor quality of products. It came in food business in 1950s and at the time of 1980s it became
the first premium supplier of ready meals. It faced many problems until the late 1990s, 2001 and
2004.
Steve Rowe who became chief executive at Marks and Spencer’s made tremendous
changes at this retailer. His history of growth and development was fascinated and unique than
others. It is stated that at the age of 15, Steve used to work at Marks and Spencer as a Saturday
boy in its menswear of its Croydon store. Later, after 4 years as a trainee at Topshop which is
one of the main fashion chains left Steve by complaining that he does not have career
progression. After that he re joined Marks and Spencer and started working on floors of some
stores. After 12 years, he became company director and lead Marks and Spencer successful food
business. He remembered that he used to work here as a Saturday boy at Croydon store so he
went back to that store and took photographs with members who remembered him as a Saturday
boy. So, it can be said that Steve made several changes at Marks and Spencer’s and in his regards
to chairman of M&S said that Steve has knowledge and skills of developing business and he
described him as a encyclopaedic. He was also known as a stickler for quality and managing or
arranging shelf displays at the time of visiting. So, it can be said that Steve was diehard supporter
of this company.
Rise of digital sales also created some problems but having knowledge of E-commerce,
Steve adapts this situation in an effective manner. About 6 months they faced problems but after
6 month, they accounted online sales 20 % of total clothing as well as home products sales. He
also faced problems related to cost. After facing several problems, Steve addressed problems in
effective ways.
Recent Methods of Development at M&S
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There are several ways by which an organization can develop its business. In the context
of marks and Spencer’s it can be said that this retailer faced several problems but after some
times with the help of development methods or making use of strategic tools he made
tremendous growth.
Acquisition: There are several ways of tools by which companies can expand their
business and increase market share by entering into new market. Some strategic tools include:
acquisition, mergers and others. These are ways of entering into new market in order to increase
market share and increase revenue. In the late 1980s, it acquired businesses in the US.
David & David, (2016). It has of half of Ocado retail, which is one of the world’s largest online
grocery retailers.
Joint venture: In addition, it is also stated that Ocado and Marks and Spencer’s both
announced joint venture in around £750m as a part of a 5 years plan to unlock growth and it
helped this company to increase market share and revenue as well (Connelly and et.al., 2019).
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Change Management at Marks and Spencer
Management of change in terms of process, tools and techniques for the purpose of
improvement and development in existing process, tools and techniques (). Change management
involves developing change and implementing change so that organisation can enhance its
existing practices in order to achieve its objectives in most effective manner. This also takes care
of people side of change in organisation. Change in Marks and Spencer was required as they
were facing serious issues which were resulting in constant loss in their revenue and profit. This
makes it important to bring change in M&S. The model they can apply for change management
in M&S is Kurt Lewin’s change model. This is widely accepted and applied model and involves
three stages in implementing change in the organisation. For making changes in culture and
structure of this company it can make an effective use of this model. The stages in this model are
Unfreeze, freeze and refreeze.
Unfreeze- This is the first stage of the model and this stage involves preparation for the change
that organisation is willing to implement (Cummings, Bridgman and Brown, 2016). This
involves that organisation prepares it for change considering the importance and urgency of the
change. This is the most important stage as this possesses possibilities of resistance from the
people involved in the change. This is because change in organisation brings change and
disturbance in existing equilibrium. Changes in existing process also affect comfort and this is
also important reason that this stage faces resistance Sjöblom (2018). To avoid this effective
execution of this stage involves that people involved in the change at M&S are sensitized with
the need to change. This will inform that why change in needed what will result of the change
what loss might organisation and its people face in case change is not implemented (Van der
Voet and Vermeeren, 2017).
Freeze- This is second stage and involves that once people are convinced for change and M&S
has prepared for the changes then the change actually gets implemented. This involves following
new process and adapting changed way of working. For example M&S turns its full store into
food store than this stage will involve that people at the store think in terms of food service while
dealing with customers. This is important stage and M&S needs to appreciate small achievement
to encourage for bigger achievements.
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Refreeze- This is the final stage of change in this stage change becomes regular and people
involved in new process become used to the new processes Sjöblom (2018). The new processes
and change becomes normal and routine.
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Sustainability strategy form future
Marks and Spencer should develop recycling program in order to develop sustainable
strategy. It has to work on waste management. If resources are used in accurate manner and
wastage is recycled properly then it would be better in using resources in excellent manner. This
would be helpful in minimising wastage to great extent (Sjöblom 2018).
Making proper balance between supply and demand is the great sustainable strategy. If
there is over allocation of inventory and assets then it may create problem to firm. Hence balance
production and great sourcing will help the business in minimising inventory wastage. Great
controlling and developing supply chain relationship will be benefit of making balance between
supply and demand (Van der Voet and Vermeeren, 2017). Firm should raise relationship with its
suppliers, if there is strong bonding with supplier then it would be better in managing inventory
and getting quality raw material on time. This sustainable practice would be better in making
greatly control over stock and minimising issue of over production. By this way firm will be able
to deliver goods to consumers on time. That will be better in managing business practices greatly
and generating more profit as well.
M&S should fulfil its corporate social responsibility (Galli 2018). By fulfilling its CSR
duties it will be able to raise its brand image and will be able to sustain in market for longer
duration. If M&S spend capital for social development and wellbeing of society members. This
strategy will work for the company as it will aid business in gaining trust of buyers and this
sustainable strategy will give benefit to firm in making people positive and sustaining in market
for longer duration. If these sustainable strategies are followed by business then it will be better
for company to gain success in market. Fulfilling corporate social responsibility is the great
sustainable strategy as it will raise image of brand. This would be better for company in gaining
competitive advantage and sustaining in market for longer duration.
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CONCLUSION
From the above assignment, it can be concluded expansion and development are essential
elements for business. Merger is the best development method as it leads new stock being issued
and it can allow company to cut prices and increase operations. This is the great strategy through
which business can grow well and can manage operations greatly Democratic leadership is
considered as best leadership style. This may help in involving employees in decision making
process so that retention of workers can be held. Changes are essential for growth of company,
there is need to make necessary changes in business by considering market situation. By this way
firm can gain competitive advantage. Effective utilisation of resources and great supply chain
relationship can help firm in gaining success in market.
RECOMMENDATION
On the basis of above discussion and case of M&S it can be recommended that M&S
adopted a strategy for aggressive change and this involves that they are implementing change in
four stages. But after implementing and in between the implementation of change M&S has
faced fall in its profit and revenue. This suggests that their strategy and planning for change
either looked over something or change was not properly implemented and this can only be
solved by continuous monitoring Galli (2018). Continuous monitoring involves that performance
is monitored and evaluated in short time span this will give idea about practical drawbacks of the
planning and will also allow for timely changes.
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REFERENCES
Books and Journals:
Brueller, N. N., Carmeli, A., & Markman, G. D. (2018). Linking merger and acquisition strategies to
postmerger integration: a configurational perspective of human resource management. Journal
of Management. 44(5). 1793-1818.
David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach, concepts
and cases. Pearson–Prentice Hall.
Galli, B. J. (2018). Change management models: A comparative analysis and concerns. IEEE
Engineering Management Review. 46(3). 124-132.
Kark, R., Van Dijk, D., & Vashdi, D. R. (2018). Motivated or demotivated to be creative: The role of self‐
regulatory focus in transformational and transactional leadership processes. Applied
Psychology. 67(1). 186-224.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Sjöblom, S. (2018). Exploring the role and challenges of middle management in a changing
organisation: Using change management models as a tool for analysis.
Muenjohn, N. and McMurray, A., 2018. LEADERSHIP AND DECISION
MAKING. Leadership: Regional and Global Perspectives. p.379.
Kark, R., Van Dijk, D. and Vashdi, D.R., 2018. Motivated or demotivated to be creative: The
role of self‐regulatory focus in transformational and transactional leadership
processes. Applied Psychology. 67(1). pp.186-224.
Connelly, B.L. and et.al., 2019. Shareholder influence on joint venture exploration. Journal of
Management. 45(8). pp.3178-3203.
Cummings, S., Bridgman, T. and Brown, K.G., 2016. Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations. 69(1).
pp.33-60.
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