Leading Change: M&S Organizational Strategies and Operations Report

This report delves into the understanding and leading of organizational change, using Marks & Spencer (M&S) as a primary case study. It begins by comparing M&S with NEXT plc, analyzing how both companies adapt their strategies and operations in response to environmental and technological changes. The report then identifies and analyzes both internal and external drivers of change, such as resources, capabilities, government regulations, and customer demands, and their impact on individual, team, and leadership behaviors. It defines ways these drivers affect leadership and the behaviors of individuals and teams. The report further explores measures for minimizing negative impacts of changes, evaluating organizational responses through theories and models, and justifying recommendations for change planning. Different barriers of change and their influences on leadership decision-making are examined, along with the application of force field analysis. Finally, the report applies different leadership approaches to deal with organizational changes, examines these approaches using models and theories, and critically evaluates the effectiveness of leadership approaches and models of change management, offering a comprehensive view of change leadership within an organization.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Compare two organisation which impacts on the change on organisational strategies and
operations...............................................................................................................................1
M1 Analyse the change drivers..............................................................................................4
TASK 2............................................................................................................................................5
P2 Define the ways through which internal and external change drivers affect leadership,
individual and team behaviours..............................................................................................5
Impact of internal and external factors on team, individual and leadership:........................10
P3 Explain measures for minimising the negative impacts of changes on organisational
behaviour..............................................................................................................................10
M2 Evaluate how an organisation responds to change by applying theories and models.. .12
D1 Justify conclusion and recommendations for change planning......................................12
TASK 3..........................................................................................................................................12
P4 Different barriers of change and its influences on leadership decision making..............12
M3 Apply force field analysis in order to analyse the driving forces..................................13
D2 Critically evaluate the use of force field analysis in relation to the meeting organisational
objectives..............................................................................................................................14
TASK 4..........................................................................................................................................14
P5 Apply different leadership approaches to deal with the organisational changes............14
M4 Examine the approaches of leadership by using models and theories...........................15
D3 Critically evaluate the effectiveness of leadership approaches and models of change
management..........................................................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
The understanding and leading change defined as a process of taking initiatives by
implementing the organisational changes effectively which helps in solving problems of
businesses. Changes are occurred by the internal and external influences and it totally depends
on the resolution of issues. Whereas, leading a change termed as a leadership skill which helps
an organisation for taking change initiatives and moves the company's growth and success
towards the high rate of growth and success for the long term sustainability. In this report, Marks
& Spencer is taken into consideration which is a top British multinational company that deals in
retail industry with the headquartered in London, United Kingdom. The company was
established in 1884 and selling better quality of food, clothes and home products. Under this
report discuss about the changes which occurs in an organisation and their impacts as well as
analyse the drivers of changes. Also, examine barriers of change which may face by the
company as well as apply some specific range of leadership approaches and theories that helps in
minimising the impacts of changes and managed the alterations in an effective way.
TASK 1
P1 Compare two organisation which impacts on the change on organisational strategies and
operations.
Business operation refers to the day to day activities and functions of an organisation
which creates some unique values as well as accomplish objectives effectively. Whereas,
organisational strategies defined as a sets of actions that helps in accomplishing the long term
objectives of company (Akpoviroro, 2018). Both will aid in formulating a strategic plan that
utilised for gaining the competitive edge over their competitors. Occurrence of changes relates
with the various aspects that allow M&S to make appropriate strategies by giving a clear
guidelines and direction for increasing profitability. In this report, two organisations i.e. Marks &
Spencer and NEXT plc is taken into consideration to know about the changes in their operations
and strategies. It can be considered as follows:
Basis Marks & Spencer NEXT plc
Environmental
change
As the environment of businesses are
corrupting at a fast rate so the people
NEXT plc also a retail company the
influenced by the environmental

requires to puts more concerns towards
them. Due to the environmental
influences the company Marks &
Spencer has implements changes in
their operations as well as strategies in
order to minimise the harmful
substances and impacts from nature.
Impact on operations:
The company plans to minimise
wastages which are not man-made for
this a company has been capable to
reduce emission of carbon-dioxide by
approximate 40%. also, to adopts eco-
friendly as well as go green concept
company authorised with the minimise
leaks of gases, applied waste
management techniques and efficiently
use energy for increasing level of
efficiency and effectiveness and solve
environmental issues appropriately.
Impact on strategies:
For adopting changes in a positive
manner a company brings
modifications in their existing
strategies. For minimising the
deforestation a company has brings
cashless method of payment as well as
strictly prohibited the use of plastic
bags for reducing the usage of non-
redeemable things.
aspects at a large extent. Many
companies are suffering from the
huge pressure from the governmental
body regarding to addressing
environmental challenges and issues.
In order to get societal advantages
NEXT plc requires to responds
effectively on that factors as the
company brings strategical changes
in their operations and strategies.
Impact on operations:
The NEXT plc restricted to use
renewable sources so that they
minimise carbon footmarks 50% till
2020 and use 100% of electrical
energy by 2030. In order to assemble
discarded plastic bags from users to
recycle them and adopt fuel saving
mechanisms for more efficiency and
effective operations of company.
Impact on strategies:
The company NEXT plc increase
their base of customers by making
own websites for online shopping
such as next.com. It emphasised on
the assemblage of unwanted plastics
in order to recycle them for making
environment safe and clean and gets
societal advantages (Bligh, 2018).
Technological Technologies plays a major role in The demand of online shopping is

change retail industries and it impacts on them
at a great extent as company M&S was
facing issues regarding digital
transformation that leads in declining
the profits and revenue of organisation.
For this purpose, company focused on
adopting strategical and operational
changes by making five year plan.
Impact on operations:
The company changes their operations
by implementing “Customer are omni-
channel in nature” technique.
Supermarket chain helps in developing
businesses through effective changes
and facilitate better services to their
customers who give preference online
shopping. Also, to become efficient
technological advancement company
has plan to develop websites by making
partnership deed with digital firms that
named TCS.
Impact on strategies:
In order to gain optimistic results a
company M&S has executed some kind
of changes in their strategies as they
was thinking to boost digital
transformation plan and increase
financial performance. As they also
focused on retailing methods through
internet and e-shopping.
rapidly increasing which highly
impacts on the company's strategies
and operations. So that the company
has been investing in the
development of their websites as
well as operational delivery along
with the better experience of
customers.
Impact on operations:
As the company brings changes in
their operations by closing approx 21
stores in order to get benefits of cost
reduction and take initiatives in retail
sectors. By minimising the rental
cost company invest those money in
online shopping mechanism.
Impact on strategies:
The company NEXT plc adopts to
make developments in their own
websites and conduct operational
delivery for responding towards the
trends of online shopping and
consider these changes as an
opportunity to grow and expands
(Nelson‐Brantley, 2017).

M1 Analyse the change drivers.
Mainly two types of change drivers that are internal and external which assist in
alteration of strategies, policies, plans, designs as well as structures (Burnes, 2018). Internal drivers of change: It includes changes in the company's capabilities, rules,
legislations and culture as well that are complex changes but business have huge control
over them.
 External drivers of change: It involves the governmental rules, customers, competitors
as well as technologies that are not initiate and implement in a easy manner.
Types of organisational change: Transitional change: It will occurs while a business organisation needs to brings a new
change or required to adopt completely new methods or processes. As Marks & Spencer
can destroy their excess workers so that the finance can be used effectively in the
implementation of new plans and processes (Cameron, 2019).
 Developmental change: It is associated with the requirement of improvements in the
existing procedure and situation of company. As M&S can develop new or innovative
software in order to sale them online through internet as well as e-shopping mode to
achieve the better efficiency.
Impact of change on individual, team and leadership:
In businesses, changes are positively and negatively impacted on business strategies
and operations which will impact on the team, individual as well as leadership. It can be
considered as follows:
Individual Team Leadership
Positive
impact
Due to the environment
and technological changes
individual is able to work
smartly and work
effectively in order to get
huge trust of customers
and make them loyal
Changes helps in making
effective team as various
ideas and opinions are
available towards the change
solutions and on the behalf of
these individual's make
appropriate decision and
Due to the changes in
technological and
environmental factors the
leader of company need
to brings changes in their
leadership approaches for
leading a team in

(Jiang, 2018). formulate strategies. effective manner towards
changes (Jyoti, 2015) .
Negative
impact
Changes adversly impacts
on the individual's
behaviour and
performance because they
are unable to accept
changes immediately so
they fails to perform taks
appropriately.
Leading changes in an
organisation may lead
conflicts and disputes among
all members as all individual
have different thoughts that
are not possible to considered
in a single situation.
Changes in leadership
style may also effect
negatively as sometimes
leaders face difficulty in
influencing the behaviour
of their followers
(Alagaraja, 2015).
TASK 2
P2 Define the ways through which internal and external change drivers affect leadership,
individual and team behaviours.
Several types of drivers are presents which occurs changes in an organisation like
resources, capabilities, customers, technology as well as government policies (Dick, 2018). As
all these are deal in two categories i.e. internal and external so that the company M&S analysed
ways to reduce the impacts of that from leadership and the behaviour of individual as well as
team. These are as follows:
Internal drivers of change: Resources: It refers to the several resources such as financial, human and technological
as well which are necessary for the all businesses (Estrada, 2018). As in the context of
Marks & Spencer, while the company is unable to provide required resources then the
employees fails to perform tasks effectively which impacts on the performance of
individual as well as team work. As these are not able to perform organisational
operations smoothly that leads to the decrease in productivity and performance. Also,
leadership approach of a leader is effected as they are unable to use their skills in order to
direct and guide to workers for increasing the level of performance.
 Capabilities: Individual is capable to adopt the changes in a successful manner so the
company Marks & Spencer requires to recruit skilful and desired persons who are

capable to perform better either individually or in a team and gives appropriate results.
This will assist in meeting the organisational objectives effectively as well as efficiently
(Lozano, 2015). Whereas, leaders are crucial for managing changes appropriately and
successfully as they requires to have capabilities to adopts and manage changes by using
effective styles of leadership.
External drivers of change: Government regulations: The political changes can directly impacts on the
organisational policies, rules, practices as well as regulations. With respects of Marks &
Spencer, if company can neglects these changes or regulations which is imposed by
government then they face heavy amount of taxes and penalties. Huge charges may
impacts on the behaviour of persons as well as skills of leaders that will result in
declining their performance and they feel dissatisfied while taking the responsibilities
towards their works.
 Customers: These are closely related to the heart of an organisation and considered as a
king of the market. As the market is totally depends on the customers expectations and
demands so the company needs to focus on trends and conditions of market to satisfy
their needs on time (Hayes, 2018). Within the context of Marks & Spencer, individual's
and teams focused on offering several range of goods and services that highly satisfied
the needs of customers as per the market requirements. Whereas, leaders also require to
adopt effective approaches and styles in order to accept changes and manage them in an
appropriate manner.
Internal drivers of change:
Employees: These are the internal capability of businesses that helps in leading as well as
managing the changes appropriately. With regards of NEXT plc, employees are highly skilled as
well as trained that provides strengths to the company and manage or accomplish changes
effectively (Friedrich, 2017). Whereas, leaders plays an important role in managing employees
of the organisation by using appropriate leadership style that results in better understanding and
managing changes.
Organisational structure: Due to this internal elements of NEXT plc, changes are
manage easily as company may use flat organisational structure at a time of leading changes
because it helps in reducing the management layers and lead the direct communication among all

level of people or managers. Also, with the effective organisational structure, leaders may able to
adopt best approach for managing the changes of organisation in a successful manner.
External drivers of change:
Suppliers: It plays a crucial role within an organisation as it influences the organisational
changes by the fluctuations in their decisions (Espedal, 2017). As the employees and manager of
the NEXT plc need to be maintain strong relationships with their suppliers that results in leading
appropriate changes as per the market requirements. Also, leaders adopt most effective style of
leadership in order to lead workers and stakeholders.
SWOT and PEST analysis of NEXT plc and Marks & Spencer:
SWOT Analysis of NEXT:
Strengths Weaknesses
 The company has large number of
outlets in most of the states so they
have strong distribution system.
 Next plc has a strong financial position
along with the consecutive profits in
the last 5 years (Phadermrod, 2019) .
 The company has huge presence on
social media as well as they has skilled
and qualified professionals.
 Next plc has less current assets in
comparison of current liabilities which
creates liquidity issues for them.
 The existing culture and structure of
company have resulted in failure of
mergers related to the vertical
integration.
 Legal department workers are not
skilled and qualified as well as the
lawful experience of company is
lacking.
Opportunities Threats
 NEXT plc has an opportunity to expand
its online presence as they use internet
in order to interact with their potential
customers.
 The company can use social media in
order to promote their goods and
services as well as collect feedbacks
 For the company NEXT plc the threat
of new entrance is high so they can lose
their customers to those new entrants.
 The country's fluctuating exchange
rates effects the NEXT plc as they has
global sales with the local suppliers.
 Also, the rate of interest is fluctuating

from their customers. that do not facilitate the stable
economic as well as financial
environment (Sarsby, 2016).
PEST Analysis of NEXT:
Political factor Economic factor
Stable political conditions can be the relation
for making long term decisions. Whereas being
a member of European union has benefited for
the open transfer of goods and services which
makes easier for the NEXT plc to be able to
supply their offerings into different European
nations.
It includes the interest rates, inflation rate as
well as exchange rates that will effect on the
company's operations. The strong British
pound has increased the foreign investments
for the company NEXT as compared to less
expensive and it is expensive for other
companies to establish themselves within the
UK.
Social factor Technological factor
Several factors and cultural changes in UK
impacts on the performance of fashion retailers
like NEXT. The company realised that the
younger customers were growing as well as
being captured by the online fashion giants
ASOS who were growing by targeting
demographic market and the NEXT plc didn't
have their ranks in it.
Recently, internet and social networks becomes
most crucial developments in the modern era.
The online stores and catalogues are termed as
a key elements which have kept it updated with
the market competition (Jin, 2018).
SWOT Analysis of Marks & Spencer:
Strengths Weaknesses
 M&S is termed as a most leading
retailer in United Kingdom and their
market experience is a great strength
 As the company M&S has poor
financial performance which is
considered as a weakness of company.

for the company.
 The company has 1463 stores across
the world out of which 1035 in the only
UK and remaining in abroad as they
have strong presence at global level.
 Marks & Spencer has strong e-
commerce infrastructure and focused
on better customer experience.
 The one of the major weakness of
company is the poor supply chain
scalability as they have been fail scale
up in order to deliver at globally.
 Customers of M&S has low satisfaction
that has resulted in increasing the
switching ration and decreased brand
loyalty (Thompson, 2017).
Opportunities Threats
 In Asia, the demand of traditional and
ethnic wear is increased which is a big
opportunities for the company as yet
they have been unable to capitalise on it
(Deepak, 2018).
 The company has already reached at
the large countries like Russia,
Indonesia but there is an opportunity to
explore their business in big economies
like Brazil, Poland which is worth their
efforts.
 M&S has more competition in UK as
well as Abroad such as Tesco,
Morrison's, ASDA, Sainsbury etc.
which creates a big threat for the
company related to losing their scope in
business.
 Government policies for the retail
stores are also creates threats for the
company M&S.
PEST Analysis of Marks & Spencer:
Political factor Economic factor
There are mainly two factors which effect
M&S such as free trade and and Brexit deal.
Free trade is the positive element of politics
that has been formulated between a multitude
of nations (Shabanova, 2015). As M&S chiefly
operates in UK but also has the abroad
locations gets benefits from this. Whereas,
As the mainly price factor has been considered
as a big aspect in retail industry and from some
last decades it have seen that several budget
retailers pop-up in the UK. Whereas, the
present economic outlets is uncertain that
affect the retail sales through which M&S have
closed some stores that have had to make

Brexit highly impacts on the company's
operations.
negative impact and creates unemployment.
Social factor Technological factor
As a non trendy is considered as a most
important factor that effects M&S as the new
or trendy retailers pop-up each year so the
reputation of M&S may become low in trendy
brands for the customers mainly younger
population.
Recently retail companies adapting new
technologies as they introduced self checkouts.
As M&S has already introduced multiple
techniques such as self service check outs
systems as well as plan to raise the uses of AI
based checkouts in future.
Impact of internal and external factors on team, individual and leadership:
Internal /
External
Individual Team Leadership
SWOT Due to the internal
resources and capabilities
of any business the level of
motivation of employees is
reduced as well as business
suffers a lot from it. This
will lead adverse impact in
company's productivity
and individuals
performance.
If people suffers from the
internal factors then team
work is highly influenced
because members are
unable to participate
effectively and fails to give
better contribution towards
the achievement of goals as
well (Malik, 2017).
Due to the adverse impact
leaders suffers a lot as
they fails to influence
team members because
they are not motivated to
perform takes on the
basis of modifications.
PEST Due to the external
influences individual face
difficulties as they require
developed skills for
accepting and
implementing changes so
that they fails to contribute
Due to the external changes
the transitional change also
occur in an organisation
which means the alterations
in existing processes also
occur which is difficult to
accept by all members
External influences
impacts on leadership
styles as well because
they need to plan
appropriate policies in a
short duration. Due to the
unsettled changes leaders