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The given case of Mark and Spencer which is huge brand dealing in variety of products from past years thus plans and strategies had to be formulated in order to fight competition with other brands.
- Explain influence of change management, by comparing organisations on basis of strategy and operations of Mark and Spencer.
- Analyse the impact on organisation behavior by analyzing drivers of changes at Mark and Spencer
- Discuss the influence of change barriers on leadership decision making at Mark and Spencer
- Provide application of various leadership approaches while dealing with change used by firm.
The present business environment is changing at a high speed and it is crucial that change is maintained on regular basis so that the competition can be faced with equal level of efficiency and comparative advantage is achieved. There are range of options with the business through which the change can be brought and every time a modification is made has its own positive and negative outcomes (Anderson and Anderson, 2010). Mark and Spencer is huge brand which is dealing in range of products from last many years. It offers variety of goods like clothing, home products, food items etc. for which it needs to formulate strategies so that it can compete the other brands. It experiences distinct results of the change which was brought by it in the business. The following report will talk about the issues which were faced by the administration while implementing the change and how those were overcome will also be highlighted which will further assist in understanding the concept in more detail.
P1 Impact of change on Marks and Spencer’s strategy and operations
There is different store of M&S which are spared through the world and it was found that they are not generating equal level of revenues for the firm. Different departments were having distinct business which created a need to bring change in the way they are operated so that profit margins can be maintained. There is different type of change that are brought in an enterprise. On border concept it can be divided into two parts:
These are those modifications which are made after doing proper planning and with the consent of all those who will be effected by same. These alterations are brought in business with a view of leading towards higher market share so that the present scale of operations can be developed. These are favorable as the management are prepared for bringing this change which increases the chances of achieving the desired results. As all the planning is done well in advance availability of resources are made which helps in maintaining continuity in business. These are preferable changes which helps business to grow in long run.
E.g. – Alteration in the marketing strategies in order to attract different segment of the market (Aslan and Reigeluth, 2013)
These are entirely distinct variety of changes which are brought not with the desire of management but are forcefully enforced due to demand of external or internal factors. Depending upon the nature and extent of change implementation of same is determined as a big change is difficult to bring due to non-planning behind same.
E.g. – Modifications made due to change in the present political situations such as increase in the tax rates.
To earn higher revenues alteration in the present system of M&S were done which has the following impact on it:
Raised the group profit margins – It was evaluated that there is a need to bring change in the business so that every sector in which the referred organization is dealing can experience growth. Closing of existing non profitable stores were done which helped in improving the efficiency level of other existing departments. Working was concentrated to only the food products which helped in concentrating more on them only (Inozu and et. al., 2011).
Jump in the food sales – When the change was made in the business separated stores were made like different for food products, clothing and house hold items. It helped in division of management and people responsible for same. This way close monitoring was done which is essential for identifying the flaws at each section so that accordingly corrective measures can be taken.
Fall in sales of clothing sector – The impact of change on the appraisals sector was negative. The sales for same were effected which shows that it was not beneficial for the management and alteration in same were required.
Improve customer and company relationship – With the change brought by M&S a positive effect in customer relationship was found as they now can communicate with department concern more effectively (Bingham and Main, 2010).
P2 Influences that drivers of change have on leadership, team and individual behaviors
In an organization there are different factors and elements that influence change and each one of them has their major effect on the work force and team member’s behaviors. In order to analyze the diverse of change SWOT analysis is done below:
Strength – Every organization has some strong areas which helps it in doing a better business. These factors act as a driver for change as through focusing them and implementing same in business the productivity and profitability of business can be improved. The major strength of Mark and Spencer is that it has got effective management team who has the potential to innovate the present working style and therefore it can take risk of changing its working patterns with a view that they will be managed with the given work force. Apart from this it is one of the most leading brand that has top of the mind recall. As the referred brand is delivering quality products customer find the offering of M&S worth spending and enjoy the quality of services received. Apart from this another major driver factor that influence change in business is that it is has high number of dedicated employees that supports it in bringing change on regular basis without showing resistance to same (Branson, 2010).
Weaknesses – Though M&S has a range of strong areas it suffers due to its flaws too. It is UK based enterprise and most of its revenue is generated from the local market which makes it so much depended on it. Any unfavorable change there may affect the business to a great extent and hence it is important that it adopts change so that accordingly