Strategic Management Report: M&S Strategies 2016-2021 Analysis

This report provides a comprehensive analysis of the strategic management of Marks and Spencer (M&S) between 2016 and 2021. It begins with an introduction that outlines M&S's current status, mission, and vision. The main body delves into the methods of development employed by M&S, critically analyzing their strategic importance, and includes an application of the Ansoff Matrix. It then examines the leadership styles of Steve Rowe and Archie Norman, drawing from the provided case study and evaluating their impact on the company. The report also applies the Change Kaleidoscope model to assess change management strategies within M&S. Finally, it discusses M&S's sustainability initiatives and concludes with recommendations based on the analysis.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................4
Methods of development.............................................................................................................4
Leadership Styles........................................................................................................................5
Change management...................................................................................................................6
Sustainability...............................................................................................................................7
Conclusion & Recommendation ................................................................................................8
REFERENCES................................................................................................................................9
Appendix 1.....................................................................................................................................10

INTRODUCTION
The present report gives emphasis on strategy management. Strategic management refers
to framework of goals and objectives and implementation of strategies to achieve those specified
objectives in effective manager. It mainly focuses on utilization of strategies for better working
of organisation. The chosen company in the report is Marks and Spencer
Marks & Spencer represent an important UK retailer which is focussed on provide good
quality food, clothing and home accessories. In 2021 M&S still implement the mission of
providing high quality products manufactured in UK and another 62 countries, with a number of
1,519 stores and 44 websites around the world. In 15.01.2021 the share price value is 139,60 £
comparative with the same date 15.01.2020 when the share price it was £182,05. The purpose of
this report is to analyse the impact of Steve Rowe in Mark & Spencer Strategy direction between
2016-2021 (Corporate, M&S. 2021)
The year 2020 was a challenging one but in the same time a good year for implementing
the transformation program. The total revenue for previous year is 10,2 bilion £ with -1,9%
comparative with 2019. Because online competitors like Amazon become stronger the company
should adapt the business strategy to the new business requirement and in order to do this
management team develop a strategy called ”Never the same again”. Conform with the company
Chairman.
The company plan for 2021 include sustainability and is focused on three P: people, product
and planet. The people focus is represented by goals like: human rights and combating modern
slavery, easy access to employment, employee health and well-being, diversity and inclusion.
The product focus goals are: sustainable raw materials, reducing food waste, support UK
farmers, health and nutrition. Planet focus goals: to reduce emissions, sustainable manufacturing,
reducing, reusing and recycling packaging, and zero waste on landfill. (Corporate, M&S. 2021)

MAIN BODY
Methods of development
Development means process that creates progress, growth, positive change or addition of
physical, environmental, social, and demographic components. It is the process rather than the
outcome they are related to the dynamic that involves change from one state from another.
Methods of development can be internal and external. However, it has been critically evaluated
that if the company will not have implemented any strategy then it causes negative impact upon
the business performance.
Internal or organic growth represent a development inside the organization like: lunching a
new range of products, market penetration, diversification or expansion into new markets. For
M&S internal development between 2016-2020 see appendix 1. The company runs three
different business models: owned, franchised and joint venture. The CEO strategy is to place the
customer satisfaction in the heart of business and keep things simple. External strategic methods
are represented by: merger, acquisition and alliance. In 2021 M&S done one acquisition of
fashion retailer Jaeger (Capital, 2018).
The company have grown their market in different ways by providing a new distribution
channel, product, packing, geographical markets by providing different price policies to attract
more customers and to create new market. Therefore, by applying Ansoff Matrix for the
company's development will help the business to grow its market further (Dvorský and.et.al.,
2020). Thus, it helps executives, senior manager, and marketers to examine and developing plans
for future growth. They are used to indicating how the development of product range are
managed. There are four quadrants of the model which are as mentioned below:
Market penetration: This is used by the organisation as growth strategy for existing
offerings (products and services) in active markets. It also involves increasing the sale of its
existing product in market by using this strategy and can be achieved by exchange of more
services and products to set customers or by finding new customers within existing markets. The
company can also decrease the price of the product and can increase its promotional and
distribution level.

Market development: In this strategy firm develop new markets (geographies,
countries) using existing products and services. The main objective of the strategy is to find out
new markets (areas or region of country) for the existing firms product.
Product development: In this strategy company create new products and services in
existing markets for growth. The company have changed the packaging of the products who buy
them in bulk and in small quantity and has also introduced new collection as per the change of
fashion to attract more customers.
Diversification: The strategy used for offer new products in new markets. The M&S may
uses this strategy for development in which it changes its existing market segments and then
offer the same in new country. This strategy helped the firm to reap exceptional benefits and to
remain top of all retailers.
From all, market development is adopted by M&S as a method of development because it
helps to improve its business operation and expand existing business in new markets. In addition
to this, quoted firm uses this in order to develop its new products according to change in fashion
and also helps in expanding their business globally (Lan and et.al, 2019). Further, the products of
M&S are of high quality and have good reputation that helps them in growing easily in new
markets, that is why market development is chosen over others.
Leadership Styles
The leadership style opted by Archie Norman and Steve is transformational leadership. In
2016 Steve Rowe becomes the Chief Executive of M&S after 25 years of work for company (
Leadership Style at Marks and Spencer). Steve Rowe is considered a leader authentic, decisive
and straightforward. The clothing and home business it was underperform at that time. The firm
use transformational leadership style which means change in individuals and social systems and
create positive and valuable change in leaders. By using transformational leadership style, CEO
of the company inspire staff members to participate in the organisation actively by motivating,
sharing values and bringing innovative ideas. It helps in inspiring the employees to work towards
a shared vision by performing the specific job tasks (Dzwigol, 2020). Steve and Norman with the
help of this leadership takes company at further level of success.
The transformation strategy for M&S is divided in four steps: step 1 putting out the fires,
step 2 restoring the basis for period 2018-2019, step three shaping the future for period 2020-
2021 and step four is making M&S special. Such that the company's leader Steve have spent his

more time on working on the problems that are need to be solved on a planned way and to
improve the performance of clothing. Example of this step is deep-seated which means problem
or feelings that are need to be changed because it causes have been for long time. Also,
leadership style adopted by M&S also specified the changes company have done at the time of
restoring period for increasing the resources for future (Ketchen Jr and Craighead, 2020). Like,
‘complex corporate culture and structure ‘which means changes in several levels of the company
assist the firm to reach at further level of success. Apart from this the company will also close its
100 stores and with the help of leadership style by the third of its turnover through online.
The CEO of the firm has decided to make better clothing and home stores that are large and
located in good place. Example of this is more to do on style and to analyse the trend of the
customers examine them to give value in clothing and home. The opening of new stores will be
inspirational having both digital and multichannel services that also include delivery of product
and services on next-day with the help of mobile and social.
Change management
Change management refers to method within which organization describes and apply all
internal and external changes. The purpose of change management is to implement all required
modification to obtain better functioning of company. The Saturday boy can change the M&S by
applying change management (From Saturday boy to big boss, 2021). The change kaleidoscope
refers to the outer and inner ring which gives both range of implementing and contextual features
analysis (Rosenbaum, More and Steane,2018). It helps company to identify time, scope,
preservation, diversity, capacity, capability, readiness and power. These are the changing areas
that help company to assess information that how quickly change can be implemented, what is
the degree of resources required, the organisation is capable of applying change or not,
organisation assets, characteristics, and skills that need be retained during change.
Change Kaleidoscope can help the management of M&S to understand the changing
areas like reducing cost, increasing footprint global market effectively and efficiently, increasing
economics of scale, making better digital marketing strategies, Changing previous human
resource with experienced directors (Thakur and Mangla, 2019). The change management can
help the Marks and Spencer to implement the above stated changes with the help of changing
leadership style and Kaleidoscope model to get better results. The company has been established

several years ago. So it need to adapt the methods that are more convenient for today's market.
Changing outlet of stores to meet the requirement of customers. Making strategies so that
economics of scale can be achieved. The change model can assist the M&S to evaluate the time
required to implement these changes and also how diversify the company is. It assists
management of M&S to assess ability to adapt these changes. Saturday boy can also identify the
power of company to accept improvement areas. It will not only help the management to get the
true position but also it will address the lacking areas.
There is proper method for instrumentation of change through Kaleidoscope model. It
can help the Marks and Spencer to assess the changing path, contextual enablers, and other ways
of applying change. To obtain proper complete change the Marks and Spencer need to support
the Kaleidoscope with culture web. The best result can be obtained when changes are match with
objectives and goals of organization (Hayes, 2018). Starting point, change path, style, target and
change roles are steps or elements through which the model is implemented to any company. The
change path is decided with reference to degree of change, from where the organization need to
imitate the change is starting point of change, which type of approach is suitable to management
is change style and at which extent the organization aim to assess change is change target and
there are different types of roles are needed to initiated and implemented. In this ways change
management helps the company to adapt the current circumstances. It also provides assistance in
enhancing its capability of adopting these changes (Haggblade and Babu, 2017). It also
motivates the workforce of organisation to accept the diversification approach of handling
improvement areas. There are several ways implementing of change management. But choosing
kaleidoscope model will be appropriate for the M&S for implementing changes in organisation
of retails sector.
Sustainability
Sustainability refers to the set of actions that focus on investment and performance which
are related to economic, environmental and social that are firms goal, activities and planning to
create long term value to internal and external stakeholders and society. The sustainability plan
of quoted firm upto 2025 is, there will zero wastage in business operation and will also include
the supply chain (Marks and Spencer launches Plan A-225 an ambitious, customer focused
sustainability Plan, 2021). The plan of M&S are related to the working with its customers and

suppliers to battle climate change, reduce waste, use more sustainable raw materials, trade
ethically and help customer to live healthy life.
Company will also improve their product designs so there will be no waste of the product
and can be recycled, this will help to collaborate with other company to bring changes in local
government recycling policy. Firm have set a goal of using 100% raw material using sustainable
resources till 2025 this will apply to cotton, sugar, cocoa, fruit, vegetables, wool and leather.
Between 2017 and 2025 the company will donate £25 million for the charity who will help the
people affected by the cancer, heart disease, mental health and dementia. By the end of 2025 it
will also start selling the ice creams and snacks that contain less than 250 calories that will make
customer more health conscious (Marks and Spencer launches Plan A-225 an ambitious,
customer focused sustainability Plan, 2021). Further ¼ of the M&S product will be made using
25% recycled materials and it will also reduce its greenhouse gas emissions by 80% by its own
operations and will cut emissions of supply chain by 13.3m tonnes. The 50% stores of M&S will
make a place or space available for the communities and charity. Moreover, the company will
start launching customer focussed sustainability framework and targets and at the end of 2025 so
that it will become one of the most trusted companies that are keep rising as a sustainable
retailer.
Conclusion & Recommendation
From the above report it has been concluded that Mark &Spencer has a brand image in the
country that deals under various products include home, clothing and food. In addition to that
company also used Ansoff matrix in which market development is used as a method of
development. the study also summarised that Transformational leadership is used by the leaders
of quoted firm to create positive and valuable changes within a firm. Also, for change in
management the company has applied kaleidoscope change model that assist to implement the
change in a workplace and lastly report concluded that quoted firm uses range of sustainability
plans in order to protect environment such that uses recyclable packaging materials and minimise
the carbon emission gases etc.
Recommendation:
 It is to be suggested that leaders of M&S can also use situational leadership style that is
based on the relationship between leaders and followers. With the help of this leadership
style it allows leaders to adequately drive behaviour change.

 Company can also start training and development program to help employees be aware of
the new changes that company has made and deal with it in proper manner.

REFERENCES
Books and Journals
Capital, A. G., 2018. Articles of Confederation, 62, 178: see also Constitution, US Art of the
Deal (Trump), 203 ASDA, 143, 200. History (Sexton). 13. p.31.
Hadrawi, H.K., 2018. Network analysis of the effect of strategic leadership on organizational
success: Evidence from Iraqi Heavy Industry. Academy of Strategic Management
Journal. 17(4). pp.1-12.
Dvorský, J. and.et.al., 2020. Selected aspects of strategic management in the service
sector. Journal of Tourism and Services. 11(20). pp.109-123.
Dzwigol, H., 2020. Methodological and Empirical Platform of Triangulation in Strategic
Management. Academy of Strategic Management Journal. 19(4). pp.1-8.
Haggblade, S. and Babu, S., 2017. A User’s Guide to the Kaleidoscope Model: Practical Tools
for Understanding Policy Change (No. 1879-2017-5330).
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Johnson, G., et al., 2019 “ Exploring Strategy Text and Cases, 12th ed. Pearson, pp. 490- 492.
Johnson, G., Scholes, K., Whittington, R. 2019” Exploring Strategy: Text and Cases”. 12th ed.
Harlow, UK, Pearson Education.
Johnsons, G., Whittington, R., Scholes, K., Angwin, D. & Regner, P. 2017 “Fundamentals of
Strategy” , 4th ed. Harlow, Pearson.
Ketchen Jr, D. J. and Craighead, C. W., 2020. Research at the intersection of entrepreneurship,
supply chain management, and strategic management: Opportunities highlighted by
COVID-19. Journal of Management. 46(8). pp.1330-1341.
Lynch, R., 2018 “ Strategic Management” 8th ed. London, Pearson.
Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change
management. Journal of Organizational Change Management.
Thakur, V. and Mangla, S. K., 2019. Change management for sustainability: Evaluating the role
of human, operational and technological factors in leading Indian firms in home
appliances sector. Journal of cleaner production. 213. pp.847-862.
With, B. and Mayer, R. 2017 “ Strategy. An International Perspective” 6th ed. Cengage
Learning.
Online
CorporateM&S, 2021,“Making plan a part of M&S Family of Business” available at
<https://corporate.marksandspencer.com/, accessed in 15.01.2021>
Marks and Spencer launches Plan A-225 an ambitious, customer focused sustainability Plan.
2021. [Online]. Available through:
<https://corporate.marksandspencer.com/media/press-releases/2017/plan-a-2025>.
From Saturday boy to big boss. 2021. [Online] Available through:
<https://www.theguardian.com/business/2016/apr/07/marks-and-spencers-difficulties-
come-into-focus-in-croydon>
Leadership Style at Marks and Spencer. 2021. [Online]. Available through:
<https://www.managementpedia.com/threads/leadership-style-at-marks-and
spencer.22112>

Appendix 1
M&S internal development for period M&S external development
2016 enable electronic shareholders
communication, design relation investition
app,
- 349 franchised Simply food Stores.
2017- lunched a new product “wow” which
provides vegan/ vegetarian fresh food.
2018- new retailer distribution center in
Whelham Green
- Techonological partnership with TCS
in order to increase digitalisation;
2019- lunched a new products “prawn
sandwich” and plants kitchen range
2020- M&S hold 50% investments in Ocado;
Acquisitions
2021 Aquire Jaeger and represent the first fashion
acquisition in the las 20 years for M&S