Strategic Management Change Marks and Spencer - Case Study Example

Strategic Management Change Marks and Spencer PLC . by Course Professor Institution City and state Date Introduction Organizations in the corporate world are notably in a continuous quest to increasing their adaptability and fitness with their internal and external business environments. In this search, organizations combine various strategic management elements to achieve the desired organizational change. The process involves the evaluation of current performance and makes comparison with their external environment context to get information and feedback for the establishment of a suitable organizational change. Both internal and external environmental feedback according to Suzanne (2014) constitutes the key drivers to have management organizational change. It is noted that different organizations have unique manner of addressing the need for organizational change. Therefore, it can be argued that the relationship between business environments and organizational change is significant and widely accepted by organizations but the scope and scale of organizational change is still apparently unknown. The management function of an organization play important role to establish necessary organizational change since it is the nature of organizations in the corporate world to be adverse towards risk (Harigopal, 2006). Organization’s strategic management team minimizes this risk aversion by crafting strategic organizational changes to achieve their goals and objectives. Organizational change is usually conditioned by the performance information in their past and also performances of other similar organizations. Emerging and existence of vital management gaps usually requires organizations to undertake organizational change by way of adopting various management strategies (Suzanne, 2014). According to Thompson, (2010), organizations taking into consideration the business environment in its context may decide not to have any changes thus keeping it old organization business model. Organizations can single out key management areas and undertake key strategic changes in its system; they can also undertake organizational change by executing them in its strategic management elements in the whole system. Organizational change focusing on applying various management strategies with the aim to modify every old organization’s aspects to becoming a completely different organization (Thompson, 2010). It is evident that such organizational changes can be risky and also bringing desired changes to the organization. This report addresses this management activity by defining and exploring the concept and comprehension of organizational change. Taking into account past studies and organizations which have undergone organizational change, organization performance feedback is considered a minor organizational management gap thus organizations implement minor organizational change (Harigopal, 2006). On the other hand large performance gap have resulted into the need for the implementation of a major organizational change. The key notable areas underlying organizational change in this report include development and implementation of an appropriate organizational change strategy taking into account leadership and planning; organizational change theories; management of organizational change; suitable perspectives and dimensions for a successful organizational change (Sherman, 2006). In regard to this, Marks and Spencer Plc is chosen for the exploration, description and strategic analysis of its move for organizational change in the context of its business environment. Background of the company Marks and Spencer plc is one of the biggest retailers and has its headquarters in UK. This company also operates globally having its business operations in more than thirty countries selling various products under its brand. Having its business operations scope from international perspective, this company continues to take into consideration its external environment. The company brand has continued be a source of confidence to its customers. It is evident that it has significantly edged its competitors mainly attributed to quality, customer trust, diversity of its products and service delivery. Throughout its existence as a retailer the company has strategically focused on product diversification and expanding its scope of operation. Its global operations outside UK market are mainly franchises and according to Williamson (2013), it has a reported turnover of almost $7billion. Marks and Spencer Plc has its business activities target market mainly food, furniture, clothing and provision of financial services. It is notable that in the recent past the company has faced stiff competition from its competitors more importantly on its management strategies (Williamson, 2013). This led to the need to undertake organizational change to enable this company to fit into the retail industry business environment. Marks and Spencer Organizational Change Strategic management change at Marks and Spencer Plc has contributed significantly to the organization in its performance recovery. Strategic management change is an important aspect of any organization. The need for organizational change in this organization became inevitable after the fall in organizational performance at the late 1990s; this situation was attributed to inappropriate management strategies. Since the event of this management crisis at Marks and Spencer, this has led to initiation and development of management strategies thus resulting into notable organizational change (Demers, 2007). The strategic management organizational change in the context of Marks and Spencer was the step change. This type of organizational change affected the entire perception of this business organization. This change involved making significant changes in many in more than one area of the organizational management at once. This strategic management change notably has a domino effect on the organization (Thompson, 2010). This implies that the organizational change undertaken in one aspect of Marks and Spencer caused changes in other aspects of the organization. In addition, the strategic management change made in Marks and Spencer was basically incremental. This organization change involved development and implementation of strategic management practices focusing on various demand aspects. The scale of change underlying the incremental change emphasized the need for the organization to meet all of its stakeholder’s demands (Williamson, 2013). During this time when Marks and Spencer was facing underperformance challenges, investors were concerned on how operations were undertaken pointing on the management function. The key notable organizational change was the change of organization top management with a focus of meeting the existing and the future organizational demands. Marks and Spencer undertook change in management activities by establishing clear vision and mission towards their organizational activities (Sherman, 2006). This involved wider extent of delegating management activities across the various management levels. The key factors for the need of strategic management change at Marks and Spencer included the traditional unclear goals and objective among the organization employees. It is also notable that the organization had un-precise guideline of the organization extra spending and attention of extracurricular activities (Harigopal, 2006). There was also the need to change management strategies which required regular reviewing and monitoring process which had been attributed to internal audit. Marks and Spencer needed to implement important management strategies in order to accomplish its old mission statement. The organization also needed strong leadership more importantly at the top management so as to motivate and attract its employees. There was also the urgency for strategic management change since most of its employees did not focus on the organization activities to implement the necessary strategic initiatives to fit into its business environment. Therefore the organization needed change within its management leadership in order to fully and successfully implement the necessary change in the organization. Marks and Spencer SWOT analysis SWOT analysis is an important organization concept tool essential for the recommendation of management strategies that Marks and Spencer can adopt to achieve suitable alignment between its internal and external environment. This organization strength is embedded on its emphasis on developing high quality products, offering better pay for its employs thus achieving good employee relationship. In addition, the management has focused on maintaining good relationship with the company stakeholders thus the company has earned itself quality brand reputation (Williamson, 2013). The weaknesses of Marks and Spencer include the management failure to update its management strategy considering the dynamics in the retail industry. It is notable that the Marks and Spencer for a long time has not been able to develop a clear and precise corporate strategy. The management has over relied on UK based organization supplies without the consideration of overseas suppliers. In regard to opportunities, the company has the opportunity to make changes on the adoption of new technologies and incorporating them into the overall management of the organization. The strategic management of the organization has the opportunity on how to effectively manage its market segments and adopting diversified corporate management strategy. Marks and Spencer potential threats are the extreme competition from various other retailers who have well crafted corporate and competitive management strategies. The retail industry in UK is considered very dynamic and customers have various considerations thus the management needs to invest in research and development to ensure that they hold on their leading position in the industry. The company also faces the threat of unsuccessful global expansion considering their corporate strategy which needs further implementation of effective management strategies. This organization’s SWOT analysis provide an insight on key management focus strategic issues mainly the top management organizational decisions that need to be undertaken and implemented in regard to both present and future corporate strategies essential to respond the dynamics of its business environment. PESTEL analysis This analysis provides a framework in which the organizational management can identify key environmental factors affecting the organization (Williamson, 2013). It uses information essential for addressing directly business environmental issues. Political factors Government policies have affecting Marks and Spencer operations mainly on the rational in which the organization management make decisions and corporate strategy in regard to global expansion. There are also political factors on the choice of top organization executives which has the effect on leadership effectiveness. The company is also affected by the international trade policies, government response of economic aspects such as recession. Economic factors This includes the threat of global recession which required Marks and Spencer to realign its management strategies. Currency fluctuation has affected its global operations, collapse in global markets, inflation and the increased competition potential. Social factors The demographic and lifestyle trends have notably shaped the strategic approaches applied by the organization management. There are also culture trends in which consumers consider other organizational aspects such as the management of corporate social responsibility (Williamson, 2013). There is increased demand by the consumers considering the organization management plan in which the organization requires support and acceptance. Social-cultural convergences also affect Marks and Spencer management of its operations mainly in international markets. Technological factors In the retail industry there is increased use of technology in all aspects of operations in the retail industry. There is increased technology development and the integration of ICT in the management of organizations. Legal factors This includes the underlying employment laws, corporate governance and management regulations, business and contract laws and changes in legal matters in the international markets. Organizational change strategy theories The organizational strategy theories underlying strategic management change in an organization guides the adopted strategic positions and the key organizational decisions in order to achieve organizational long-term and short-term objectives (Eriksson-Zetterquist, 2011). The underlying organizational change at Marks and Spencer can be linked to the following theories. Agency theory This is based on the perception that the achievement of key management organizational strategies is significantly influenced by the existence of a good relationship between owners, management, board of directors and shareholders. Good relationship is essential for organizational management change as the management requires the support from all stakeholders in order to implement corporate management strategies (Eriksson-Zetterquist, 2011). M&S management need shareholder’s support to effect the strategic management organizational change (Williamson, 2013). The theory provides that, good relationship can be achieved through constant and responsive communication between the management and shareholders informing them of key strategic issues and the management options that can be used to address such issues (Piers Myers, 2012). Contingency theory This theory provides that organizations should develop its management strategies uniquely based on an in-depth organization analysis and situation. Therefore, management should take into consideration the organization internal resources, capabilities, competence and culture. Accurate and reliable assessment of these factors will facilitate the development of suitable corporate strategies for the achievement of the desired organizational change (Piers Myers, 2012). Other theories applicable to Marks and Spencer organizational change include Human Resource Based Theory which provides that all human resources should be fully involved in the process of strategic management change of an organization. This has been put into practice where Marks and Spencer have engaged its employees in training, development and changing their workplace perception effectively (Eriksson-Zetterquist, 2011). Analysis of Marks and Spencer Strategic Management change Marks and Spencer during the late 1990s had acknowledged that its leadership style of management which was bureaucratic proved to being an obstacle in the implementation of key strategic management strategies for the desired organizational change (Samson, 2012). The move by the organization in developing a flatter management proved to being an important step towards the achievement of organizational change (Piers Myers, 2012). This organization failed to consider government regulations in the development of its strategic management change. This resulted into poor strategic management planning due to incomplete consideration of all the stakeholders prior to the implementation of this management strategy. The result of poor strategic management planning for change resulted into the loss of investment. The organization continued to shift emphasis on the engagement and increased participation of its employees in its management strategy (Samson, 2012). This management strategy was effective and it was consistent with the Human Resource Based Theory. With shareholders raising their concerns on the management functions of the organization, Marks and Spencer management faced the task of convincing the organization stakeholders that the developed and implemented strategies would result to positive performance of the organization. Their focus on employees was very significant to Marks and Spencer management strategy and implementation. The strategic management initiative of rolling out training programs ensured that employee perceptions were in line with the organization strategic decisions (Harigopal, 2006). Marks and Spencer strategic management change has put emphasis on the outcome of development and implementation of new strategies. This involves application of new management strategies to undertake business activities and this entails the organizational change (Pasmore, 2013). Marks and Spencer management change is essential in the management of the dynamic business environment. It is also important to note that management change require integration of organizational culture and behavior to achieve the desired strategic change. Therefore, the management change strategy implementation needs appropriate organizational culture and behavior. Marks and Spencer applied strong leadership in order to sustain the strategic management change. Strategic management change in this organization entailed having a clearly stated strategic vision, precise overall plan of the organizational change for the realization of the organization goals and objectives (Samson, 2012). Recommendation Development and implementation of strategic management change is essential for the achievement of a desired organizational change. Recommendations for organizations considering developing and implementing strategic management change may include the following. Organizations with the need to address key organizational issues require a management strategy comprising of competitive skills and suitable management decision making. Organization need to constantly respond to their competitor’s strategic decisions. This is referred to the call urgency need for management strategy change which not undertaken it will have negative impact on the organization. Therefore, Marks and Spencer and other organizations need to analyze its employee’s potential, learning capabilities, skills and knowledge to determine their perception towards the change. Organizations should have strong and effective leadership for the development and implementation of management change. Strong leadership play significant role for the achievement of successful organization change. Strong leadership combine with effective team work coordination is essential for organization strategy change. The management leadership should be keen on taking feedback from the employees, undertaking consistent external audit and hiring strong leaders to implement and manage changes. Organizations should make appropriate changes on its goals and mission. Organization can carry out internal audit regularly to ensure that all employees carryout the organization business activities with the knowledge towards a common mission and objectives. The management should ensure that there is a proper channel of communication, this will ensure that employees have common vision and mission to enable them understand their duties and responsibilities in regard to the new management strategy change. Organizations should ensure that the strategic change is undertaken and monitored continuously. Organizations should ensure that they regularly analyze its business environment to ensure that the management change is productive. References Daniel Samson, T. B. (2012). Implementing Strategic Change: Managing Processes and Interfaces to Develop a Highly Productive Organization. New York: Kogan Page Publishers. Dave Williamson, D. W. (2013). Strategic Management and Business Analysis. London: Routledge. Demers, C. (2007). Organizational Change Theories: A Synthesis. Boston: SAGE Publications. Dennis Manolito Weber, B. d, 2011, From Marks & Spencer to X Holding: The Future of Cross- border Group Taxation, Alphen aan den Rijn: Kluwer Law International. Harigopal, K. (2006). Management of Organizational Change: Leveraging Transformation. Boston: SAGE Publications. Herbert Sherman, D. J. (2006). Strategic Management: An Organization Change Approach. Indiana: University Press of America. John L. Thompson, F. M. (2010). Strategic Management: Awareness & Change. New York: Cengage Learning EMEA. Piers Myers, S. H. (2012). Organizational Change: Perspectives on Theory and Practice. Oxford: OUP Oxford. Sadler, P. (2003). Strategic Management. New York: Kogan Page Publishers. Suzanne Benn, D. D. (2014). Organizational Change for Corporate Sustainability. London: Routledge. Ulla Eriksson-Zetterquist, T. M. (2011). Organization Theory: A Practice Based Approach. Oxford: OUP Oxford. William A. Pasmore, R. W. (2013). Research in Organizational Change and Development. New York: Emerald Group Publishing. Read More