MGT6800: Strategic Management Case Study Analysis of Marks and Spencer

This case study analyzes Marks & Spencer's strategic management, focusing on its background, development methods, leadership styles, change management strategies, and sustainability initiatives. The report utilizes Porter's Five Forces and the Ansoff matrix to evaluate M&S's strategic positioning and market strategies. It examines various leadership styles, including autocratic, democratic, and laissez-faire, and their impact on the company. Furthermore, the study explores the application of the Lewin change management model to facilitate organizational change. The analysis also covers sustainability development plans and concludes with recommendations for future growth. The report is intended to provide a comprehensive overview of M&S's strategic approaches and offer insights into its operational and management practices, drawing on relevant academic literature and industry analysis. The assignment is based on the Richmond Business School assessment brief 2020/21, focusing on the key methods of development used by Marks & Spencer.

Case Study Mark and
Spencer

Contents
INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background for the company.......................................................................................................3
Methods of Development.............................................................................................................4
Leadership styles..........................................................................................................................5
Change Management....................................................................................................................6
Sustainability development..........................................................................................................7
Conclusion and Recommendations..............................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
Strategic Management is the process in which an organization plans, organize, monitors
and controls the tactics or the strategies which the organization has planned and applied so that
they can achieve their mission and objective in an effective manner. Changes are very much
constant in the business environment and to cope up with these changes strategic management is
very much necessary. It benefits to the business in both financial and non- financial terms. For
the reference, the report has taken the case study of Marks and Spencer company. Marks and
Spencer are the multinational British company which engages in the manufacturing of fine
quality clothes, home products and the food products. It is a retail company which is located in
around 1463 locations through out the world. The company was founded in the year 1884 by
Thomas Spencer and Michael Marks.
This report will discuss about the background of the company, appropriate strategies used
by the company for the development, examination of leadership styles in the organization and
the models for change management. The report will also discuss about the plans and
development of sustainability development strategies along with the recommendations for better
growth.
MAIN BODY
Background for the company
The company is originated from London, Britain. Marks and Spencer are a company
which is majorly engaged in the manufacturing of clothes and home products. In only United
Kingdom the company manages to locate its store at around 959 places. It is a partnership
between two people by the name of Michael Marks and Thomas Spencer. Both the people first
started their business by opening a clothing store or more over a stall in a market called
“Kirkgate Market”. Within a short period of time, they experience a huge success in that store.
After that they have planned for expansion and had opened up more of the stores and stall in
other markets also. In the year 1984, both the partners founded a permanent store for themselves
and then Marks and Spencer was invented. Later after gaining the success in domestic market,
they planned to internationalize their business. The first international store was established in
Canada in the year 1973. After Canada the stores were more expanded in France also in the year
1975. From that company then increases their expansion to some other countries and continents
also. Marks and Spencer have their stores throughout the world (Adeyemi, Isaac and Olufemi,
2017). They have established themselves not in UK but also in US, Asian countries, Arab
countries, Australia and much more. Marks and Spencer comes in the category of FTSE 250
INDEX and also has listed itself in London Stock Exchange. With the change in time the
company has always tried its best to cope up with the contemporary business environment. They
have computerized their operations so that they can gain the technological advantage, they sell
their business both at offline and online platforms, it is making the effective use of digital
marketing and social media marketing so build up a strong connection with the customers or
targeted market.

Methods of Development
The company follows the following strategic management tools for bring the necessary
development in their workings:
Porter’s five force models:
This model by invented by Michael Porter to understand the working of an industry so that an
organization which has planned to enter so which is already operating in to the sector can make
their strategies accordingly. The Porter’s five force model for Marks and Spencer can be as
follows:
Threat of new entrants: It is the degree towards which the new organization can enter into the
industry. The threat for new entrants in this sector is very high causing the burden for Marks and
Spencer. The new organization brings innovations, variety, new products in low prices or costs
that has created the pressure on Marks and Spencer. To surmount that pressure the company has
to bringing the innovation and further developments in the products and services which they are
offering. Through this not only new customer will purchase the products but also the old
customers will get some reason to stick with the brand (Ataş and Kasımoğlu, 2018). The
company can also attain the economies of scale so that they can lower their cost of production.
This will increase their margins for profits. Marks and Spencer can overcome from this problem
through bringing the innovations and developments in their products. This can be performed
through investing more of funds in research and development department which can help the
company in bringing the new and advanced products or services which they got to offer.
Bargaining power of suppliers: In the retail sector almost all the companies purchase their raw
materials for some other industry or company. The bargaining power of the suppliers depends
upon the number of suppliers available to the company. If the huge number of suppliers are
available then the bargaining power of the suppliers will be low but if a few numbers of suppliers
are available to the company then the bargaining power of the suppliers will be high. In the
clothing industry there are various or huge number of suppliers available to the companies and
due to this the bargaining power of the suppliers are very low. To become very much effective,
the Marks and Spencer can build up a very strong supply chain network which can minimize the
cost for supply the raw materials to the company in a low cost (Brui, 2018). A network must
consist of dedicated suppliers who can timely supply the raw materials to the company at low
costs compared with others.
Bargaining power of buyers: Buyers have the attitude to purchase the best product or
service at the minimum price possible. They will always go for the product or service which can
is very advanced or effective in use and also which is available at the low prices. The company
can attract the customers and retain the current customer base to the company through bringing
the regular improvements and development in the company’s products and services. They can
also build the base by releasing various offers and discounts to the customers.
Threats of substitute products: Substitute products are the one which sells the similar
products to the existing products but with more advance features and also in less costs. The
buyer will purchase the product which has the low cost and has the similar features to the

customers. To surmount this problem, the marks and Spencer company can more focus upon the
services rather than products so that they can satisfy more to the customers. The products must
be formed in such a way which can satisfy the needs of the customers.
Rivalry among the existing competitors: Increase in the rivalry in the industry will decrease the
profit margins for the company. For surmount this problem, the company can build the
sustainable differentiation and also through attaining the scale to perform the better competence.
This can also be performed through collaborating with the competition so that the market size for
the company (Bushuyev, Kozyr and Zapryvoda, 2019).
Ansoff model for Marks and Spencer
The Ansoff model for Marks and Spencer company can be as follows:
Market penetration strategies: The market development is the strategy in which the
organization expands its business at the regions where it is already establish with the same
products or services. This can be achieved through offering the discounts to the customers on
products, increase in advertainment and promotional activities of the organization and the like.
As in the case with Marks and Spencer company they can increase their sales through bringing
the customer loyalty programs, discounts and various offers for the customers. Also, the sales
can be increase through advertisements, promotional events and much more.
Market development strategies: The market development strategy is the one in which the
organization will try to develop the news markets with their existing products. As the company
Marks and Spencer operates in a global level, it is easier for them to gain the trust of customers
in new markets (Chidiac, 2018).
Product development strategies: The product development strategy is the one in which
the organization develops the new products or services for the customers. As in the case with
Marks and Spencer company, the development of new products will help the company in
bringing the innovation and development. This will help the company in surviving in the marker.
Marks and Spencer invest a huge amount in their research and development department for that
they can bring the new and innovative products. Due to which the company can bring new
products which can satisfy the needs for the customers in a more appropriate manner.
Diversification: The diversification is a strategy in which the organization will target a
new market with the development of all new products and services. Here the degree of risk is the
greatest in this case.
As in the case with Marks and Spencer, they follow the strategies like market development,
product development and market penetration as their strategies to develop themselves in the
market (Heino and Tuunainen, 2018).
Leadership styles
There is various leadership style which a leader can adopt in himself or during the
situation, some of these can be as:

Autocratic style of leadership: The autocratic style of leadership in one in which the
leader only gives command to his followers and do not listen to any his followers. Here the
follow of communication is upward to downward. The autocratic style is the oldest form of
leadership. The leader gives command to his sub ordinates. The goals of the leader although gets
achieved but the employees do not get happy with the leaders. Also, the leader does not take any
kind of suggestion, idea or opinion from the employees. In this style of leadership all the
decisions are made by the leader himself.
Democratic leadership style: In the democratic leadership style, the leader takes the opinion,
suggestions and advices from the employees also before making any kind of decision. In this
leadership style the flow of communication is performed both ways upward to downwards and
also from downwards to upwards (Meral, 2019). This leadership style if necessary, in building
the trust and team spirit among the employees. It also enhances the creativity level among the
employees.
Laisser Faire Style: In this style of leadership, the leader set free the employees so that
they can perform the work according to their own suitability and potential. The leader task is to
give the objectives to the employees which have to achieve and then the employees can use their
own creativity and intelligence to perform their work. Through this style of leadership, the
creativity level of the employees gets enhanced. Also, they will give the authority to the
employees to take the responsibilities and decisions for their work. This is the latest and most
current style for leadership.
The leaders for marks and Spencer opt for democratic and Laisser Faire style of
leadership. They give their employees full authority while giving the task and work. And the
employees’ motivational level also gets maintained consistent from the usage of these leadership
styles.
Change Management
To manage the change the company or the organizations adopts various models so that
they can bring these necessary changes in a more smooth and effective manner. The Marks and
Spencer company uses the Lewin change management model to bring the change in operational
department. The use of model can be as:
Situation: The company is planning to bring the necessary changes in the operations department.
The operations department is adapting the latest operational machines so that more units of
products can be produced with the minimum time and cost (Oppio and Bottero, 2018).
Lewin change model is consisting of 3 steps which are:
Unfreeze: Unfreeze is an activity in which the practices that the organization follow in
their operational activity got stopped. The organization in this step teaches the employees about
the need to bring change, clears all the doubts about which the employees have with the change,
educates the employees about the change and so on.

Change: At this step the organization is in the verge to implement the change. They
slowly but steadily bring the change in their working. Along with the change the organization
also clears all the hurdles which they face in the journey for change.
Freeze: In this step the organization has already implement the operational change which
they have planned to bring. In the Freeze the process or the new practices get full establish inn
the organization. All the employees are now fully trained and also in habit to bring the change in
a fully effective manner (Oskarbski, Birr and Żarski, 2019).
Through the use of this model, the marks and Spencer has brought their operational process
change in their working. They step by step brought the change in the organization and they
implement it. Also, they try to clear all sorts of hurdles and the barrier which they face in
between the journey.
Sustainability development
Sustainability development is the concept which states about the development of all the
factors or parties which are associated with the company. It also refers to the saving of natural
resources so that they can live for more long time. The Marks and Spencer forms the policies and
the strategies after taking the interest of all the stakeholders. These stakeholders may include the
investors, employees, suppliers, customers and so on. The strategies are formed in such a way
that an equal development can be brought in these stakeholders.
Conclusion and Recommendations
From the report presented above, the strategy management of the Marks and Spencer
company has been present. There are many styles of leadership but the company’s leaders
exercise the democratic and Laiseer Fair style because they this style gives the more productivity
to the organization. The organization brings up the change through the use of Lewin change
management model so that it can be brought in a more effective and efficient way. For example,
the company has to bring the operational process change in their working therefore to implement
the same they have taken the help of Lewin change management model in which they first
unfreeze the current practices, then they bring the change and at least they Freezes the change so
to make it permanent till the new change can come (Phornlaphatrachakorn, 2019).
The Marks and Spencer company can take the following recommendations:
 The company has to more focus upon the sustainability development as this concept is
very much new and trendy. The organization has to form the policies and the strategy in
accordance to that.
 They need to more focus upon their expansion activity and also, they need to cope up
with the dynamic change in this business environment.
 The company can increase their customer base through the effective use of social media
marketing where they can market the company’s products or services at the social media
websites. Through these social media marketing the company can also build the strong
connection with the people or the customers (Pour, Zadeh and Zadeh, 2018). Social
media marketing enables the organization in educating the targeted market or audiences

about the various things i.e., products of the company, offers and discounts, engaging
with the followers and the etc.
REFERENCES
Books and Journals
Adeyemi, I .I., Isaac, O. A. and Olufemi, A .S., 2017. Strategic management: A policy to
enhance sustainable business development in small and medium scale enterprises in
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Ataş, M. and Kasımoğlu, M., 2018. Strategic management sensitivity scale development and
validity research.
Brui, O., 2018. Implementation of strategic management based on the balanced scorecard in a
university library. Library Management.
Bushuyev, S., Kozyr, B. and Zapryvoda, A., 2019. Nonlinear strategic management of
infrastructure programs. Innovative Technologies and Scientific Solutions for
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Chidiac, E., 2018. Strategic Management of Diversity in the Workplace: An Australian Case.
Routledge.
Heino, H. and Tuunainen, J., 2018. Heading for decline? The significance of disturbances in
strategic management. International Journal of Strategic Change Management. 7(2).
pp.139-159.
Meral, Y., 2019. Strategic Management to Prevent Money Laundering: The Role of Effective
Communication. In Handbook of Research on Global Issues in Financial
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Phornlaphatrachakorn, K., 2019. Influences of strategic management accounting on firm
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Pour, M. J., Zadeh, Z .K. and Zadeh, N. A., 2018. Designing an integrated methodology for
knowledge management strategic planning. VINE Journal of Information and
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Presenza, A. and Sheehan, L. R. eds., 2017. Geopolitics and Strategic Management in the
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