Strategic Change Management in Marks and Spencer PLC (Research Paper Sample)

Running head: STRATEGIC MANAGEMENT CHANGE FOR MARKS AND SPENCER PLC
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Strategic management change in an organization, need for change, crafting change and implementation
Name
Institution
City and State
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 et al (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 r...