Strategic Management Report: M&S Company Background and Analysis

This report provides a comprehensive analysis of Marks and Spencer's strategic management. It begins with an introduction and background information on the company, including its vision and mission. The report explores the methods of development, including SWOT analysis, and examines the leadership styles employed, focusing on transactional and democratic leadership. It delves into change management strategies, including the Change Kaleidoscope model, and discusses the company's approach to sustainability. The report concludes with recommendations for the future, emphasizing the importance of effective leadership and strategic planning for continued success in the competitive retail market. The report highlights the company's global presence, its strategic alliances, and its ability to adapt to change. The analysis includes an examination of the company's financial performance and its ability to generate profit margins.

STRATEGIC
MANAGEMENT

Contents
INTRODUCTION.........................................................................................................................3
M&S-Background Information....................................................................................................3
Methods of Development...............................................................................................................5
Leadership Style.............................................................................................................................6
Change Management.....................................................................................................................8
Sustainability..................................................................................................................................9
Conclusion and Future Recommendations...............................................................................10
REFERENCES............................................................................................................................12

INTRODUCTION
This report is based on Marks and Spencer, a British multinational retailer of clothes and
household products. It has headquarters in London and provides designer clothes through its
outlets at global level. The report includes a description of the company’s background, the
various methods of development that are used by the company and the leadership styles used in
the company. In addition, there are several strategies with the help of appropriate models are
discussed in current report. The report also includes an explanation about the future sustainability
strategy for Marks and Spencer along with specific recommendations.
M&S-Background Information
One of the major retailers in the United Kingdom, Marks and Spencer, was founded by
Michael Marks and Thomas spencer in the year 1884. The company is headquartered in London
and specializes in selling household, clothing and food products. Most of the products that are
sold by Marks and Spencer are of its own label. It is analysed that company is working at global
level. Currently, it is operating in nearly 29 countries across the world. Manages of organization
are planning to expand business in more nations with an aim to earn higher profit margin. It is
analyzed that M & S has 65 franchise stores in Asia, 60 in Europe and more that are essential to
meet with the needs of customers. Here, organization has more than 1519 stores worldwide and
nearly 130 franchise. Company has 450 stores merely in UK that allows manages to lead fashion
industry and earn higher profit margin. In addition, organization is able to earn higher profit
margin with its more ample number of outlets at global level. In 2020, it generated profit of 67.2
million that was higher than profit of 2019.
So, it is monitored that the performance of entity is remarkable as it is able to earn higher
profitability. In addition, there are more than 78,000 employees are associated with organization
who perform several roles and responsibilities for overall growth of organization. Therefore, it
can be said that M & S is a leading company of fashion industry that is working remarkable at
global level. For this purpose vision and mission of organization are discussed as under:
Vision:The vision statement of the company is to be the standard against which other
companies are measured.
Mission: The mission of the company is to make high quality products accessible to all
its customers.

Methods of Development
Methods of development help an organization in enhancing its performance as well as
strengthening its brand name in the market there are different tools as well as techniques which a
company can use. Implementation of various methods of development is important because it
also helps in improving the overall motivation and confidence levels of employees. As a result,
they are more engaged and committed to their jobs (Coen and Vannoni, 2020). It is analyzed that
internal analysis plays a crucial role in developing strategies and tactics fir future development
and growth of company. For this purpose, SWOT is one of the most commonly used strategic
tools that can be used to analyze the various methods of development that are used by the
respective company.
Strengths Weakness
It is analyzed that M & S is a well known
brand that is renowned among customers and
also known as a leading brand of fashion
industry that allows company to earn higher
profit margin.
Here, organization provides variety of products
such as food, clothes and more. This
diversification allows managers to earn
potential profit and create a difference from
competitors.
It is monitored that in the year of 2019 sales of
organization declined drastically. It was due to
lack of supply chain efficiency and non
availability of products.
There is also a perception prevailing among
customers that M & S do not offer products to
younger and teenagers. This perception also
put adverse impact on overall sales and
profitability of organization.
Opportunities Threat
There is higher opportunity for entity of global
expansion. It is currently working in 15
countries and can expand business in more
nations.
It can adopt effective practices in the fields of
online marketing. It is really essential to grab
the attention of customers.
There is higher competition is prevailing for
company at market place that may create
constrain in its success and growth.
Competitors like ASDA, Sainsburya adopt
ample of strategies to attract more buyers by
providing products at lower price. It is creating
higher threat for organization.

It is analyzed that organization is expanding business in different countries by opening
stores at different locations. It has opened several new stores in 2019 with an aim to earn higher
profit margin. Internal capabilities of entity also help to ensure sustainability at global market
place. In addition, manager also analyzes external factors and their impact over business. it is
monitored that organization adopts expansion as the development strategy under which it has
expanded business in nearly 30 countries at global level.
Here, company has strategic alliance with Ocado as per which 50 % share of Ocado
acquired by M & S. This deal took place in the year of 2019 in which Marks and Spencer can
access the platform of Ocado to sale products online to customers. It is monitored that this is a
long term partnership that will be beneficial for both the companies as well as customers. Now,
customers will get a wide range of products and services.
Strategic importance can be defined as a way of evaluating of how important a particular
part of the plan is in the overall scheme of the work. Strategies play an important role for a
company because it guides the company in achieving its goals as well as objectives. Not only
this, the management is able to identify the resources that can be used in an effective manner. As
a result, the employees within the company have clarity as to how they can help the company
achieve its goals as well as objectives.
Leadership Style
A leadership style can be defined as the method which is opted by a leader in order to
provide direction to their subordinates and motivate them. Different leaders within different
organizations can opt leadership style that is best suited for the situations. Different type of
leadership styles are given as under:
Transformational leadership: It is a theory under which leader identifies leader set a
vision and guide employees to achieve it. In addition, they also inspire employees to get
predefined goals and objectives in an efficient manner.
Transactional leadership style: Here, leaders focus on results and ensure that all the work
in organization is done as per the predefined structure. These leaders have formal authority and

responsibilities within company and they are liable to manage routine of individuals in
organization.
Situational leadership style: As per this, leaders are required to act as per the situation
occur at work place. This really helps to handle the situation in more efficient manner.
As far as Marks and Spencer is concerned, the main type of leadership style which is
used by the leaders is transactional leadership style. This type of leadership style is based on the
assumption that managers or leaders give employees something that they want. This is done in
exchange of getting something that they would want(Gegg and Wells, 2017). Leaders who adopt
transactional style of leadership are the ones who follow structure as well as values. Such leaders
are able to manipulate their team members and also, effectively lead tasks at a global level which
require guidelines as well as regulations. This enables these tasks to be finished in an effective
manner. Transactional leaders aren't a very good in shape for locations in which creativity and
revolutionary ideas are valued.
This type of leadership style is mainly dependent on people who are self-motivated and
are able to work well in a structured environment. The leaders in Marks and Spencer are focused
on achieving short-term goals and favor implementation of policies and procedures that are
properly structured. Advantages of adopting transactional leadership is that the employees who
follow the instructions of their leaders receive rewards. Apart from this, the organizations get a
structure and also, short-term goals are achieved easily (What is Transactional Leadership? How
Structure Leads to Results, 2020). But there are alsocertain disadvantages of transactional
leadership style that the employees have to face. Like the creativity level within the company is
limited as the goals as well as objectives are already set. But there are also some leaders who
adopt democratic style of leadership.
A democratic style of leadership can be defined as a type of leadership style wherein the
managers or team leaders involve their team members during the process of decision making.
This helps in building trust among team members as well as encouraging them to provide their
suggestions and views during the decision-making process(HASAN and Gafforova, 2019).
Advantages of this type of leadership style is that the employees get an opportunity to share their
thoughts and views. As a result, the overall process of problem solving is much more efficient.

The job satisfaction of the employees as well as their morale is also increased. Therefore,
effective leadership is one of the major contributors to the company’s success.
The leadership style opted by the CEO of the respective company, Marks and Spencer,
Steve Rowe is considered to be the most appropriate for the company. This is because the
company’s employees have the clarity about their rules as well as responsibility. The CEO of the
company has democratic leadership style wherein the managers encourage the team members to
participate in the process of decisions. This way, they are able to develop new skills and enhance
their knowledge about the same. On the other hand, Archi Norman, has a lot of experience in the
retail industry. Therefore, this helps the company in achieving the goals as well as objectives.
Effective leadership style motivates the people to perform at a high level and as a result, they are
able to contribute to the overall. No organization can work efficiently without effective
leadership.
Change Management
Change control is described because the strategies and manners wherein a company
describes and implements alternate within each its inner and outside procedure. Developing an
established technique to trade is important to help ensure a beneficial transition while mitigating
disruption. Change management is an important process in an organization as it helps in making
any organizational transitions easy(Li and et.al., 2019). Also, it helps employees in
understanding and accepting change in the current working environment. Marks and Spencer is a
company that has been able to cope up with and manage change in an effective manner. There
are various models that can be implemented in order to understand the change management of
the respective company.
Change Kaleidoscope can be defined as a method which involves pulling together and
arranging the vast variety of choices that require change. This model comprises six crucial stages
such as Change path, Change start point, style change target and more. Nowadays, it is really
important to bring changes at work place and also communicate it with employees. It helps to get
support of employees in overall growth and success of company. Change management is an
important process for a company because it allows the management to ensure that the employees
are able to adapt themselves to the change in an effective manner. There are different types of
leadership styles that are adopted by different leaders across various companies. In the respective

company, Steve Rowe and Archi Norman along with the other members of top management
monitor the overall process of change management (O'Brien and et.al., 2019). It is analyzed that
leaders of respective company are able to adopt these change management practices in an
efficient manner. They set a vision for subordinates and communicate it to them in order to get
their support. In addition, leaders also welcome the suggestions and advice of employees that is
crucial to attain predefined objectives. With other companies strengthening their customer base
by offering a wide range of products, this has created an urgency for the respective company to
adapt itself to the same. The company started manufacturing high quality products and sold them
at reasonable prices in order to attract a greater number of customers.
Sustainability
The future sustainability strategy of Marks and Spencer is to make the packaging of all its
products recyclable in the coming years. This will not only help it in building a sustainable brand
but also reduce the level of harm which is caused to the environment. One of the major
sustainability strategies of the company is that by 2025, at least one fourth of all the clothing
products produced will be made using 25% of recycled materials. Besides this, the company will
also focus on reducing the greenhouse gas emissions by 80%. This strategy is important for the
company because it will help it in reaching out to customers who are looking for different
sustainable options. The main objectives behind this sustainable strategy is that Marks and
Spencer aims to reduce any kind of harm that is caused to the environment. Also, it aims to
attract a greater number of customers and enhance its profitability. Not only this, the strategy set
by the company is also to improve the wellbeing of the customers in an effective manner and
transform the lives of communities and the society on the whole.
Even today, a significant percentage of the company’s products are made using recycled
material. This has been beneficial for the company and helped it in reaching out to as well as
attracting a greater level of customers. The company also aims to reduce the greenhouse gas
emissions by nearly 80% in its own operations. Marks and Spencer believes in giving back to the
community and aims to raise a significant level of amount for charities that support people
dealing with various health problems such as dementia, cancer, mental health and heart
disease(Varelas and Apostolopoulos, 2020). Apart from this, the company ahs launched a
sustainability plan that it aims to achieve by the year 2025. This include the colleagues at its

workplace completing one million hours of volunteering for the community during their
worktime and all of the key raw materials that the company uses coming from different
sustainable sources (M&S LAUNCHES PLAN A 2025 – AN AMBITIOUS, CUSTOMER
FOCUSED SUSTAINABILITY PLAN, 2020).
Sustainability is important for Marks and Spencer and it takes various measures in order
to build a brand that is sustainable as well as successful brand. The CEO of the company is
responsible for developing sustainable strategies for the business. Apart from this, the managers
as well as team leaders make sure that sustainable practices are followed at the
workplace(Witcher, 2019). The Executive Committee, as M&S’s senior management team with
responsibility for the day-to-day operation of the commercial enterprise, will be responsible for
the whole program in addition to compliance with M&S guidelines and guidelines to assist force
alternate and a more sustainable destiny for M&S.
Conclusion and Future Recommendations
From the above report, it can be concluded that strategic management is an important
component that can contribute to the overall success of an organization. Not only this, it can
allow a company to enhance its overall performance and gain a competitive advantage against
competitors. There are different types of leadership styles that the leaders of a company can
adopt in order to motivate the employees and ensure that they are engaged to their respective
jobs. Also, the respective company is recommended to encourage its leaders as well as managers
to adopt democratic style of leadership instead of transactional leadership so as to attain long
term growth. Also, in order to build a sustainable business, Marks and Spencer is recommended
to start implementing the strategies that it has planned as soon as it can. Developing sustainable
strategies will allow the company to fulfil the needs of the customers in an effective manner.
change management is important and therefore, the company is recommended to ensure that the
strategies developed by it are executed in an efficient manner. This way it will be able to reach
out to a greater number of customers and fulfil their needs as well.This will not only help in
enhancing its overall profitability, but also attract a greater number of potential customers.
Lastly, the managers are recommended to implement change in an effective manner by
encouraging participation among the team members in the decision-making process. In addition,
they are required to provide products and services for younger segment so that the perception of

customers got changed. It will also help company to earn higher profit margin that is crucial for
future growth and success of organization. Further, they are also required to adopt expand
business in more countries in order to deal with completion prevailing at market place.

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