Management Principles of Marks and Spencer - Case Study Example

Management Principles Task Marks and Spencer Armstrong defines management as the process of coordinatingthe efforts of organisational publics with an objective of accomplishing goals and objectives through efficient and effective utilisation of available resources. The functions of management include planning, directing, leading, organizing, and staffing. The primary goal of management is ensuring that the organisation focuses on its mission, vision and strategic plans to achieve its goals. Marks and Spencer has several managers working under different levels. The company’s management is classified into top level, middle level and line level managers (Worth, 2007). The three levels of management forms a hierarchy characterised by extensive cooperation to achieve improved performance. The modes of communication that prevails across the levels of management constitute vertical, both upward and downward, which ensures effective communication for mutual prosperity. Top-level management The top-level management comprises of the Chief Executive Officer (CEO), the managing director, and the members of the board (Schermerhorn & Wright, 2014). Marks and Spencer’s CEO is the general manager and the president of the company and the administrative representative of the shareholders. The top-level management in Marks and Spencer is responsible for maintaining contact with the international stakeholders. This level also provides guidance and direction for the overall management of the company. Schermerhorn and Wright (2014) posit that the top ensures that the interests of the shareholders are met through assuming the responsibility towards the performance of the company. Middle-level management The middle-level management in Marks and Spencer comprises of general managers, departmental managers and branch managers. The middle-level management coordinates the activities of the division or department (Schermerhorn & Wright, 2014). In Marks and Spencer, the sole role of the middle-level managers is to act as a link between the top-level management and the low-level management. The middle-level managers also evaluate and inspire low-level managers to improve their performance. Line-level Management This level of management consists of supervisors, section managers, and foremen. They mainly focus on controlling and directing. Line-level managers assign employees tasks and monitor the quality and quantity of production. Other functions of line managers include guiding employees on day-to-day basis, making recommendations, and channelling the problems of employees to higher levels of management (Armstrong, 2012). The roles of line level managers in Marks and Spencer include monitoring quality and quantity in production, maintaining good relation in the organisation, and helping in solving workers’ grievances. Figure 1: Diagrammatic representation of the levels of management (Source: http://catalog.flatworldknowledge.com/bookhub/reader/7?e=collins-ch06_s03) Task 2 Management Culture Management culture refers to a set of tacit assumptions, values, beliefs and norms that strategic management share with their lower level managers in order to influence people’s behaviours (Armstrong, 2012). Adopting the right culture constitutes the mainstay of modern business organisations as it steers the business into the right direction. Thus, the business with the right culture is in a position to guarantee quality goods and services to its customers. Culture primarily defines the way the business dedicates its resources and energy towards ensuring proper control of the business and efficiency and effectiveness in productivity. Marks and Spencer has recorded an excellent history of management culture throughout its one hundred and twenty-nine years of history. Marks and Spencer works to improve gender balance in the company’s management (Ann, 2005). Approximately 81,000 people have secured jobs in the company, with 72,000 mainly from the United Kingdom. Marks and Spencer was featured in the Times Top 50 for Women during the period of 2011 and 2012. The company signed the initiative, 30% Club, which targets at least 30 percent women in the company boards. Currently, 74% of workforce in Marks and Spencer is female. Marks and Spencer emphasizes the necessity of employee participation in management decision making. Worker participation constitutes the intrinsic part of the company’s corporate social responsibility and forms of its brand (Schermerhorn & Wright, 2014). The company provides employees with clear feedback; the communication channels are characterised by both bottom-up and top-down through which the management receive feedback and give views concerning employees’ views. Marks and Spencer is committed to environmental sustainability. Commitment towards environmental sustainability is evidenced by the company’s Plan A was launched on January 15, 2007 (Gyekye, 2010). The company’s plan A initiative was meant to dramatically increase the environmental sustainability between 2007 and 2012 at a cost of £200 million. The main themes of Plan A commitment include climate change, waste management, health, sustainable raw materials, and fair partnership (Bevan, 2007). Marks and Spencer also focuses on charity work; for many years, the company sells a wide range of charitable women’s clothes for Breakthrough Breast Cancer. The Ashbourne store collected £2000 for to buy a new ECG machine for Derbyshire hospital (Worth, 2007). Figure 2: Diagrammatic representation of the components of an organisation’s management culture (Source: http://nitieim19pomb07/2012/08/organizational-culture-ntpc.html) Task 3 Planning focuses on developing goals and structuring the organisation in a way that can permit achievement of organisational goals (Schermerhorn & Wright, 2014). The main purpose of planning is to create and maintain the plans of the company. Planning is vital to businesses since it helps in determining the long-term direction and scope of the organisation and regulating organisational publics in order to satisfy the stakeholders’ interests. Marks and Spencer can be analysed based on SWOT analysis portfolio to show how effective planning can be used to challenge the company’s strategic plan. The mission of Marks and Spencer focuses on providing new quality products in the lines of clothes, food, home, and financial services (Bevan, 2007). The company aims at achieving social revolution through provision of the working class citizens with clothes fit for lords and kings. Total quality ranks highest in the company’s strategic plan. This is backed by the dedication towards offering affordable prices ensuring customers receive good value for their money. The company’s vision statement focuses on being the standard against which other companies measure themselves. Customer perceptions that the company holds include trust, quality, innovation, value, and service. Achieving the company’s goals is accelerated by its strengths and weakness as the management strives to reduce the ramifications associated with its weaknesses and strengths. Strengths The company is the market leader in clothing, food, home appliances and financial services (Bevan, 2007). Consistency in market leadership over several years has led to the company’s strong brand equity. The management of Marks and Spencer is required to do a thorough planning to ensure that it maintains its position in both local and international markets. Planning can take the form of allocation of funds for marketing, avoiding unnecessary costs of quality and employing highly qualified and experienced personnel to enhance customer satisfaction. Marks and Spencer also has effective corporate social responsibility strategy. The company may fail in terms of corporate social responsibility if the management does not consider proper planning for funds to ensure success of its Plan A prospects. The company’s markets in the UK are already mature; Marks and Spencer has stressed on investing in foreign countries to reduce susceptibility for the UK saturated markets (Gyekye, 2010). These ventures require intensive planning in terms the strategy of entry into global markets, the type of employees to hire, and the exact location for installing production of units. Failure to plan for critical aspects of the business may have undesirable consequences to the business. The management should also plan their finances with due care to avoid falling into financial crises. Weaknesses The company is experiencing declining sales in food products. This is caused by cutthroat competition that characterise the UK food markets (Ann, 2005). Marks and Spencer needs to come up with new plans for food provision in the available markets. The company can develop a variety of food products that are unique from those of competitors. Marks and Spencer should also have thorough plans for being a market leader in the industry. According to the law of demand, price is inversely proportional to quantity demanded. Therefore, if the company increases its prices beyond the competitors, it has high chances of losing its market to competitors. Reducing prices cannot be done without considering the costs of production; the company should strive to minimize the costs of production while maintaining quality in order to be able to reduce the costs of production. Marks and Spencer is also characterised by weak returns on investments (Ann, 2005); this is caused by high pensions and debt deficits. It is the sole responsibility of the company’s planners to ensure they strategise on ways of reducing pensions and debt deficits in order to prevent the consequences associated with these escalating expenses. Opportunities Online shopping is currently flourishing at a high rate particularly in the UK (Ann, 2005). The company can maximise on the increasing online market to increase its revenue. The plans associated with tapping increased online markets will constitute developing a website for the company and establishing call-centres to serve online markets. Other cross-border markers are rapidly growing in other countries. For example, the company can make India and China centres of attention and expand into these two fastest growing markets. Marks and Spencer has a strong brand image and quality perception, which it can effectively utilise to reap the benefits of its line markets. Threats Modern markets, particularly in the United Kingdom, are characterised by intense competition (Ann, 2005). Several companies have begun offering similar and substitute products to those that Marks and Spencer offers. This is worsened by the fact that Marks and Spencer does not have the required scale to compete with the leading UK competitors in the UK (Bevan, 2007). The company management need to make extensive plans to gain a competitive advantage and counter this galloping competition. Another threat affecting Marks and Spencer is economic deteriorations, which reduces the buying power of the customers. The company can find ways of less costly production in order to reduce prices for its customers. References Ann, R. 2005. “Marks and Spencer-waiting for the worrior: A case examination of the gendered nature of change management,” journal of Organisation Change and Management, 18(6), pp.578-593. Armstrong, M. 2012. Armstrongs handbook of management and leadership: Developing effective people skills for better leadership and management. London: Kogan Page. Bevan, J. 2007. The rise and fall of Marks & Spencer: And how it rose again. London: Profile. Gyekye, L. 2010. “Marks and Spencer’s Plan A makes good progress.” Journal of Material Recycling Week. [online]. Avaialable at http://www.mrw.co.uk/marks-and-spencers-plan-a-makes-good-progress-comment-update/3005441.article> Accessed, April 6, 2014. Schermerhorn, J. R., & Wright, B. 2014. Management. John Wiley & Sons: Canada Ltd. Worth, R. 2007. Fashion for the people: A history of clothing at Marks & Spencer. New York: Berg. Read More