Leadership And Change Management An Introduction Of Marks Spencers Business Essay


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Marks & Spencer is a leader retailing company with 21 million UK customers and 2000 suppliers that targets the customer's satisfaction and quality services. The organization reflects overall performances of its leaders and employees to carry out its objectives and goals. It is one of most famous retailing companies of UK built almost 120 years back. Company owns more than 450 outlets 65,000 employees. Organization is effectively progressing with its efficient management and leadership .employees of organization effectively influence and get influenced through leadership management. Competition in global market has been effecting organizations to respond to globally changing environment.

Vision: The standard against which all others are considered

Mission: Making inspiring quality available to all

Values: Quality, value, service, innovation and trust


Tesco is an international retailing company with 4th in number of its annual revenue. It is 2nd largest retailing company in terms of profit. Founded in 1919 focusing UK especially in food and drinks Tesco has shown diversity in its geographic location and range of products. New product lines are covering clothing, electronics, telecoms, financial services, home, health care, insurances, retailing, internet services and many more. Company expended to Scotland in 1994.introduction of loyalty card, brand club card, internal shopping services, has made it more valuable retailing. It was the only online offering store till 2006 .Tesco purchased retailing arm of British food in 1997 and this gave Tesco a major acquisition in Ireland .Tesco also aligned with petrol filling stations and it provided a way to generate more revenue through 600 stores all across Accompany has launched telecom division to support its ITP services. Tesco is acquiring Japan and Turkish markets. It has also launched broadband services in 2004.in 2006 Tesco has purchases 80 % stake in Poland market. Company jointly ventured with O2 to provide Tesco mobile services

Vision: to market own brand products

Mission: to provide finest, mid-range, low price high value with wide product range


M & S has been facing business challenges in form of competition .business is demanding for new strategies to be formulated and to cope with changing demands of customers .business is demanding the following change in its business plans for coming futures.

Refocusing new business plans


New quality services

New promotional campaigns

New product developments

Innovation with values

Training employees to adapt change.  

Perception of High Prices

Customer disinterest

Environmental issues: Pollutions

Buyer sophistication and knowledge

Substitute products or technologies THREATS

New & existing competition

Volatility in Price of raw products

New legislations

September 11th

Economic recession

Market shift to globalization

Takeover bids

Low cost retailers

Extremely high competition for customers and resources

Company has started up new plans of refocusing its leadership strategies. The chief executives are concerned with formulating ne and applicable ideas with changing environment.

Johnson, G., Scholes, K., Whittington, R., (2005)

We can see from the An off Matrix that Marks and Spencer's lunch of financial services products will have involved a diversification strategy. As M&S did not already sells financial products, so new market and new product. Both capability and market consideration has driven M&S to into development into new markets and products.


Tesco is facing an investigation by office affair trading (OFT) for being involved in cartel with five other companies for fixing the price with dairy companies. This investigation is still going on as Tesco is claiming it not involved into this. IT is used to improve the shopping method of customers, sometime effective delivery of merchandise becomes tough .Tesco is looking ahead to define complex structure to offer insurance, retiling services. Technology including innovative retailing methods to gain skills as online shopping exposure for bringing change in future online grocery shopping site with international can gain competitive advantages.


M&S being market leader has seen on-off successive and inconsistent changes so the strategies formulated are replaced quickly. The company is facing revenue and profit problems, company have enjoyed a longer period of decades of being leader in retailing. Consumer's choices, taste and preferences are dynamically changing, reputation and brand imaginings is getting tougher for leaders to sustain. M&S has ruled retailing with satisfied employees and customers expectations delivered and standards maintained. It was leading others including Tesco. The company was not spending a lot on advertisement.

Present day challenges are faced by top management in M&S no matter if its objectives and long or short termed. High tech growth and potential in businesses are taking place and leadership is looking ahead for more potential and profitable business plans. Leaders are swift to adopt change and gives competitive advantage to other retailers. From present day strategies to future planning. All goals defined are tangibles and provide future vision. Although future is unpredictable yet an intelligent prediction could be made. Customers with VFM (value for money) witnessed a visible fall in standard with delayed actions or plans taken by top management. This megabrand needed rebuilding. Management with top down management dealing same with customers and suppliers were failing to cope with problems. Top down management is imposing its decisions and does not allow participation.


Since 1997 CEO has been influencing strategies using company's inner purposes, mission, objectives, policies and goals. The leadership strategy of CEO has made Tesco domestic as well as internationally known company implying a shift to focus on its people, customers and employees core strategy is to use innovative utilization of technology ,first time self service at till was also introduced by TESCO.


They have recently implemented the policy of launching defamation procedure and have sued few companies to libel and civil defame them. Terry Leahy being CEO of Tesco is responsible for success of leadership .he is a visionary leader that brought number of changes with customer-focus strategies and to develop company's workforce. The leader is regarded excellent leader


Leaders at Tesco are trying to follow the leadership with action center leadership in achieving the desired goals, building and maintaining team work and developing new skills. As per Thomas, 2005 leadership is to focus action that can bring success to the organization


Leadership in Tesco demands real problems to be sorted out and requires initiatives to be taken. This leadership requires business objectives and goals to be transformed into business development and company's values. The company is looking ahead to identify customers growing needs of customers choices and employees skills and capacities with rewards and incentives. Leadership demands global integration and international competitiveness to deliver its services all around the globe


Leadership in Tesco requires development and active participation of management skills and capabilities in leaders. These leaders require capacities that could practice management and leadership effectively. The leaders of Tesco requires the following attributes as

Interest and concern


conflict resolution






Tesco requires motivation and value management. Monetary rewards with task orientation and future task relationship with future objectives are demanding leadership with strong vision and recognized change and human management. Leadership requires building objectives and goals with strong relationship. Business leadership development (BLD) has to be initiated by Tesco


Leaders are seeking initiatives and dealing with risks at every d managerial activity. Risks involved in any area is communicated to all levels with internal analysis and evaluation to identify factors involved in risk by forming groups called group risk profile(GRP).This GRP is reviewed by executive every six months to identify progress and tools to manage risks.



Businesses today are focusing on desires of change with global and dynamic changes occurring all around. Corporate social responsibility (CSR) incorporated into accomplishment plans are calculated goals of its top management and leaders.


Regular review of marketing plans pricing promotion and marketing strategies with ways to adapt strategies for changing consumer market preferences. Controlling cost with negotiating with suppliers


Adapting new product lines to meet customers need, maintaining UK market and reaching niche markets with inventions in food sectors and online accessibility, targeting markets with lesser competition or higher profits


Detoriation in financial position limits and how to grow business to generate more revenues, forecasting debt recovery, financial rating metrics strategies formulated for pension deficits and funding planning


M&S aiming at meeting brand reputation and fulfilling customers all requirement with most sustainable retailer in 2015.monthly customers feedback policies and procedures with efficacies and performances achieved results, communication and customer's satisfaction is checked regularly.


To attract people with formulating objectives including behaviors of employees aligned with M&S brand values. delivering plans to employees with successful leadership tracking potential employees hiring new skills, giving learning and training opportunities, promotions, incentives, bonus schemes and bridging gaps between individual objectives and company goals are all integrated .governance of future project with teams to deliver change and lessen day to day risks and disruptions focusing 2020 projects are forecasted to implement change. Investment and expenditures are upgraded giving milestone to new upcoming projects.


Significant investment in IT to improve forecasting is used as commercial and marketing tool to improve stock availability. Business crises team with IT security



Appraise the value of three different approaches to leadership. Identify the situations, in which a dynamic leader will adopt a particular approach with relevant traits

M & S leadership strategy

M & S has leadership strategy to become low cost retailers covering higher market share. They also apply differentiate strategy to offer differentiated products that could bring more and more revenue to the company. Customers are ready to pay premium prices for the cost of differentiated products & S applies focus generic strategy focusing executive groups for clothing with core (food and clothes )products, within chosen segments it is differentiating from Tesco and other retailers


Scope Competitive advantage 

subordinate cost demarcation 

Broad target (industry wide) Cost leadership Differentiation 

Narrow target (market segment) Cost focus Differentiation focus

Risk assessment & contingency plan

M&S must plan for risks around its strategic choices; there are risks in terms of focus strategies in that imitation and changes in the target segments. Furthermore, it may be easy for a broad-market cost leader to adopt its products in order to compete directly, hence, ASDA, Tesco all of which have the same portfolio of products/services as M&S. M&S must have a contingency plan in terms of cost leadership and not just focus differentiation, to counter the growing rivalry from other supermarket chains


Outline the role of leadership in change management and how it can be tackled most effectively.


Role of leadership in bringing change in M & S

Leader had taken initiative prior so that change could be made effective. Demand in external environment has created an internal urge in company leaders to adopt change. Leaders with effective use of information made timely solutions for arising problems like increasing product lines or enhancing number of out lets. Leaders are focused and consistently paying attention to all areas of interests, time was managed effectively. Leaders are well aware of their best human resource and employees even in economy of tough recession and economic down turn. a big change is to be implemented called project 2020 focusing multi channel operations and brand communication with customers. Programs is to take M& S to success, revitalization of human resources functions has been created dedicated HR hubs. Recession has been demanding change so is M&S are coping with these challenges through leadership strategies. Talent management conference (TMC) with conceded period of change has stated that change is unprecedented. HR director for M & S is playing integral part for bringing the effectiveness of project 2020.director has mentioned that it is a through robust succession period with detailed analysis of individual capacities from all levels measured against all high profile company objectives

Role of leadership in bringing change in TESCO.


Clearly analyze and compare the strategies and policies applied by the leadership hierarchies of the two corporations of your choice. Indicate where you find historical and contemporary leadership skills.


Your essay should present a clear picture as to how the two company chief executives are performing as leaders, and how they are dealing with change management.

Stuart Rose CEO of M & S gives perspective on bringing change considering change management and HR and managing transition approaches. As soon as need to change was realized, inventory was not managed properly, decision making was done with no one held accountable customers were attracting towards other competitors. So was change crucial.


Business leadership in M &S is focusing to deliver change with research attributing leaders' head heart and capacities. All researches and market business analysis to bring change .leadership really needs attributes going ahead with underpinned trust, value, service, quality and innovation. Individual as well as teams across organization and leaders collectively through coaching and simulation can bring change and it is seen that change has brought positive impact with success while bringing change. He brought new talent for new clothing designs that are differentiating than others. New advertising campaigns featuring super models and attracted investors and raised shares and market.

New leader Robert swannell new chairman has been formulating new leadership strategies along with chief executive MARC BOLLAND


Reorganization of HR department with centralized policies and procedures .revitalizing the company has seen duplication of efforts with execution of same store to store little shared learning .HR is revitalizing with creating HR hubs dealing with responsibilities and accessing problems to find out solutions. HR is held responsible to provide consistent leadership strategies and focusing and approaching learning synergism & S has been focusing especially in bringing change with HR functions effectively new leadership programs and efforts of communications are lying for future to be implemented & S is committed to implement change with miles stones to be reached. HR director Dodge concluded as

"M&S has survived world wars and recessions and one of the things it has got good at is how to manage change and adapt," 


Make a point of highlighting any situations, where specific Leadership skills were used or where they should have been used.


Leaders adopted diversification strategy and introduced new lines in retailing like food.

Management increased its resources and internal strength to face the challenges.

They are felt compelled to outside for assistance

Implementing cost effective responses to legislation and regulations

Guidance to employees including code of conducts

Minim sing trade disruption and leveraging business initiatives and sharing experiences

Negotiating terms with suppliers and protecting brand image and innovation

Internal control and check on internal and external risks

Protecting quality heritage

Assisting employees and share holders participation

Maintaining opening price point





Top down management in M&S must realize the importance of all management participation in decision making.

Company must move ahead with maintain their standards and must identify weakness and strengths dispassionately

Talented and skilled employees with wider experiences must be given participation in the process of bringing change.

Products must instantly give recognition of same brand strategy and positioning of all consumers. Wide range of products must be maintained properly.

All departments involved in process of change must coordinate with each other and all levels management must ensure coherent procedures and policies to adopt changes.

Retail teams with enforced goals and objectives must be unified assuring value, quality style and innovation.

Change must be adopted timely or prior to its need. It is not essential to wait for change to come into practice by other companies.

Variety of changing needs, preferences and customer choices is demanding new and innovative products; the challenge is to take initiatives by top management with active participation of all managers to all levels in companies.

New fresh employees with innovative and attractive ideas must be appreciated to apply for higher positions in companies.

Different experiences of managers with their working skills and styles to use in bringing change

Workshops, seminars can be conducted to identify the need of change and use of new technology to bring change.

Human resource department must be given priorities by both companies.

Team working must be appreciated where employees could be given roles to play and exchange their tasks and job profiles.

Customers are asset of any business so must be given importance and their feedback must be considered for bringing change

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