Paper type: Summary Pages: 12 (2988 words)
1.Executive SummaryIn a competitive and rapidly market, accelerated change is the only option. We’re becoming more relevant, more often to our existing customers and appealing to new ones. The right actions and a strong management team can revive again one of the UK’s most special brands. A business is much loved by its employees, customers, and suppliers. Mr. Steve Rowe chairman sets out his diagnosis of our problems and announced the beginning of a five-year transformation programmed strategy. Marks & Spencer, in the annual report, set out in great detail the composition of that programme.
The first phase is about restoring the basics getting the organizational structure and infrastructure of the business fit for the future.Our supply chain in both clothing & home and food require significant re-engineering. In the fast-moving fashion, we are slower than most of our major competitors. M &s online sales are growing, our capability is behind the best of our competitors our fulfilment centre of castle Downingtown has struggled to cope with peak demand.
Technology supports is improving as we are migrating off legacy systems and an old mainframe. In the retail business, our customer base has narrowed and we have lost share of younger family age customers.Although we will present more detail of the transformation strategy over the next 1 year. We are closing near to 25% of our clothing and home space. Web sites are being improved and we are investing to remedy the problems at Castle Donington distribution centre.Aim to almost double our online share of clothing and home sales to over 35%, reduce the number of product lines and buy a more stylish product in greater depth. The expansion of food space has been slowed while we concentrate on refreshing the format and driving sustainable growth. Our international business has already been rationalized and we are now creating a competitive network of a mainly franchised business in territories where we can grow.Marks & Spencer chairman announced formative changes in the organization which is lead by functional directors. The food business is very different from home. Our property assets need proactive management. M&S Bank is clearly a very separate entity. We are moving the heavyweight corporate structure to a family of parallel businesses. Each with shared brands values about each led by its own integrated management team.M&S has a wonderful brand which most people in the UK’s still held in great affection. The great operator in the store, thirdly technical skills in both clothing and food and our understanding of quality, finally, ingredients, sourcing, and size to remain outstanding. The purpose of transformation plans is to restore the business to sustainable profitable growth. Board remains committed to maintaining the night balance between investment in the business, dividends for shareholders and balance sheet strength.Strong corporate governance routines brought to the business many intellectuals challenge and financial discipline. Finally, at the time of declining profit, it is the colleagues on the ground that bears much of the brunt of change. (Mr. Archie Norman chairman) 2018.2. Introduction and backgroundM&S is a UK’s company that operates in 700 retail stores. Its stock includes clothing, different food items, and household items. M&S is the name of a retail clothing store in Europe. The business was started in 1884. Its head office is located in Westminster, London and employed around 82000 staff in the UK. The mission of m&s is to make as much profit as possible by selling garments and different food items products to customers. M&S net income in March 2019 reported $25.70m and revenue was $10.70m according to market watch report. M&s net income after tax reported Ј25.7m according to annual financial M&s group plc reports 2018.It’s objectives to make sure that business has the right mindset of what they want to do. The aim is to increase profits by cutting variables cost to overcome decreasing sales of retail stores. Its competitors are Primark, Procter & Gamble, Debenhams, Lidl, Aldi, B&M. M&s has its culture which guides the organizational behavior in the changing internalThe head of learning, recruitment, and organizational development at Marks & Spencer communicated to develop global leadership. Workshop aligned to the international strategic vision of top leaders. M&s set out a five-year plan for the aim of becoming a truly international, multi-channel retailer. The increasing number of employees will now work with international colleagues, suppliers and ultimately customers. Motivation Theories, Goal-setting theory and McClelland’s Theory of Need are supporting these business goals strategies. As a business consultant, from academic point of view goal setting theory supports determining performance goals, departmental targets they set for M&S. A more systematic way to utilize goal-setting is with management by the operation. (MBO), which emphasizes participative set goals that are verifiable and measurable for a period of time. M&s has key functional areas are human resources, financial distribution, purchasing, customer service, and sales and online marketing departments supporting by goal-setting theory and organization structure. Finally, McClelland theory is also supporting M&S structure. Its focus on the need for achievement which explained to excel to achieve in relation to set standards. Secondly, the need for power explained, employees and leaders behave in a way they would not have otherwise and finally need for affiliation explained a desire for friendly and close interpersonal relationships. Achievement of need and job performance and an intermediate degree of risk. All these important factors and resources are explained further in organization culture, structure and leadership approach in this business report.3. Reviewing the organization culture and leadership in organization behaviourAccording to Dr. Andrzej Huczynski and Prof D. Buchanan, Organizational Behaviors (2016) is a set of beliefs and attitudes of staff and management. It also influences the decision making and behavior within the organization. Furthermore, he explained its focus on the values, beliefs and visibility and accessibility by individuals.The original culture is derived from the founders and the founder’s family. In a sense, you can say that there was a family’s value, with an overtone of religion. It was based on quick turnovers, honesty, hard work and no frills attached. The type of culture of M&s is everywhere in the business to real efforts to improve customer service, market research, employing the right people and training. It has a positive culture where staff and workers communicate.Laurie J.Mullins (2010) said shared values which then produce norms that govern behavior. Corporate culture is an assemblage of all shared values beliefs policies and attitudes which will be reflected on the people of the organization.Organisation’s approach research reviews Leadership, it’s the process of influencing the activities of an organized group, efforts towards goal set and goal achievement. (Huczynski and Buczynski), the qualities that make a successful leader. This line of research has been greatly influenced by the great man theory.By the late ’90s when Marks & Spencer was in financial difficulties, need for a change of leadership. A vision of a possible future that allows leader and others to see more clearly the steps to take building on personal capacities and strengths. Example: Steve Rowe is the Chairman of M&S, and Winston Churchill was the leader.Mr. Steve Rowe, chairman, the plan is getting the company closer to its customers and expansion in growth strategy. Its focus on selling clothing and food items of their supply chain. M&s bank market share and property expansion strategy, the key values and beliefs on which the newly review M&s is based. It becomes more competitive in the retailers market. Simply food” stores to accentuating one of M&s, management leadership style is a pattern of behavior that shows management roles.Consultative managers are ones who seek to consult other people before making a decision. They consult with employees and other managers before implementing a decision of strategy. Over an organization a series of mechanism, team briefing, suggestion and opinion for the innovation in household products. (www.ukessays.com)M&s management leadership style is consultative so this would mean that leader consult with others before the decision is made. A group influence in the final decision even though it is made by the leader. Those around the middle level are permitted to adopt a laissez-faire attitude to management.Marks and Spencer pattern in British retailer clothing, food illustrates the concept of hierarchical structure. Its internal and external culture is affecting performance and supports its structure. 4. Explanation of organization structure and motivation in organisation behaviorM&S employees became less resistant to embrace new ways of doing jobs. Employees were willing to work for longer hours if it meant better pay and they were res resistant to the fact that they might lose their jobs if the company performed poorly. They were also sent for learning and education programs to equip them with new skills. All these efforts contributed to the change in a corporate culture that is now more dynamic and flexible structure. The formal chain of command was flattened for a certain extent and in doing so the company became more responsive to the changes in customer demand and taste and innovation. The management structure was simplified to delegate more responsibility to individual store managers in their regions and to give them more autonomy. The employees of the month award recognize an employee that illustrates M&s values being innovative and inspirational. Stephen. P. Robbins, OB structure (2016) The award also acknowledges outstanding achievements by M&s workers who show passion and commitment for their co-workers. Each month workers submit their nominations to their line manager and one employee is selected to nominations. M&s offers staff performance incentives. Employees were informed that whichever store sold the most clothing or bottles would get a visit from heads of beauty or regional manager. This engagement on teams and staff shared best-practice tips and ideas of how to drive sales on social media. It’s also support mixed approach to staff motivation. (Sarah Findlater, Head of employee relation).6. Evaluation of financial analysis M&s has reported a fall in food and clothing sales. But little improvement in sales this year, a 1.5% quarter drop in 2018 for clothing and a 3% drop in food items was recorded.Chief executive Steve Rowe told BBC that food was trading in our expectations. But retailers were reshaping its business with price lowered on hundreds of food items.According to Dominic O’Connell business researches to report, 2018 M&s clothing in a slow slide, food a bit worse than expected, with like-for-like sales down nearly 3%. It’s a great matter of needs to be done to break the pattern. Fewer stores-100 will close- a better online offering and general tightening-up of management and structure. They can save more than Ј350m a year. M&s leasehold commitment on its store to 20 years it is also going faster in closing stores or shrinking them would be extremely expensive.Director of grocery Mr. Steve dresser explained that M&s can run a business on meal deals and 25% off wines forever but these things take time to back out off. Closures of stores will have an impact on food and case they didn’t perform.M&s plans to intend close 100 shops by 2022 as announced in May 2018. It is also vital moves for its future. Mr. Steve Rowe, chief executive said the retailers will be continued to review its store closure programmed and did not rule out future closures. Third of its business would be online in the future. For a broad range of customers a broad range of merchandise available that suits all their taste. Its directors were not awarded bonuses last year because of disappointing results.M&s new plans intend to have fewer larger clothing and homeware stores in better locations. It is also facing high competition from online stores and discounters such as Primark, P&G, Lidl, Aldi and Debenhams. According to David Jeary report $1.5bn worth to goods imported each year which equates to 65% of the stock of m&s Finally, a change in M&s women clothing items pricing strategy which focus was to delaying its summer sale a week, accounted for 9% fall last year and clothing sold on the promotional price. Its share price dropped 40% in the market; investors should be assessing the impact of Mr. Rowe plans on profitability and due to Brexit vote.7. Strength and weaknesses EvaluationM&s could use analysis for sett its periodic short term sales targets. This analysis is a way of summarizing capital strength and weaknesses relate to external opportunities and threats. My view as a store business consultant for M&s retail stores for clothing; opportunities do emphasize the following factors in this business report to improve the business performance.¶ Good communication¶ Online sales and know the audience¶ Good customer service, live to chat¶ Product video¶ Leadership in stores ¶ Strong brand and offer a guarantee¶ Stay in the loop¶ Best use of financial resourcesIts strength is very effective to achieve its success in the international market. M&s can capitalize strength to avail external important factors and minimize its weaknesses. M&s also has operational weaknesses that include the following factors and need more improvement.¶ Only stock own brand ¶ Few outlets¶ Not 100% global¶ CapitalM&s could achieve its objectives of becoming a leader in emerging markets. This needs a strong commitment to organizational people. In order to achieve its objectives following opportunities are available, the growth of emerging markets (China, India), cost countries have huge potential for the company’s sales. Corporate strategy can expand its strong brand in these emerging markets.M&s is also not free from threats; the following factors need to be considering before making decision of expansion in the market.¶ Competition¶ Political issues¶ Late entrance Finally, Political issues could limit the chances of its growth in China markets of management of M&s managers do overcome its weaknesses and get success in those markets. Another factor is risk measurement which is also important.8.Summary¶ As a business consultant, goal setting theory supports in determining performance goals they set for M&S. ¶ A more systematic way to utilize goal-setting is with management by the operation. (MBO), which emphasizes participative set goals that are tangible, verifiable and measurable.¶ MBO works from the bottom up as well as from the top down. The result is a hierarchy that links objectives at one level to those at the next.¶ M&S all objectives are translated into specific objectives for each divisional department. Lower level manager jointly participates in setting their own goals.¶ Goal or objectives an explicit time period and performance feedback. Effective online promotional communication strategy for M&s to achieve its objectives.¶ A change in quality through innovation policy can be helpful for Marks & Spencer. Market growth and products development may enable the company to enhance its global presence. (Ogden’s 2006).¶ M&s has key functional areas are human resources, financial distribution, purchasing, customer service, and sales and online marketing departments employees will need more coordination and communication with their line managers to improve business performance.¶ Annual sales of clothing and Simply Foods” need more improvements in variables and fixed cost reduction strategy. Stephen P. Robbins (The Matrix structure P.488)¶ Organic or flexible structure is favourable in the clothing and household items brands and lower level managers’ opinion considered for the decision making process. Mr. Stephen. P.Robbins, Structure p. 483( 2016)¶ It also helps to make sure the company runs customer-driven the culture encourages needs. Management and leadership style is formal and to make important decisions to attain the desired objectives. ¶ The democratic style is useful when an individual team works together for discussion being made by them. (Strinfellow, 2010).¶ The structure, culture, motivation are important for top-level managers to make arrangements. Management style is all used to improve the way the company works towards its objectives.¶ A 3% decline in sales of clothing, improvement is possible through innovation and technological change in clothing, household items, and food stores.¶ This approach brings to the company and change in people and the way that they challenge problems of the organization. (Stephen P.Robbins 2016).9.ConclusionM&S Chairman, annual meeting and reviews a decline in sales and new online marketing strategies to increase products sales. Focus will be one innovation and fashion in market. Online sales of clothing and household items in the international market. The board is accountable for identifying the principal risks facing the company. Strategic analysis of short term goals from organising the resources and employees. 4P’s of product, price, place, promotions impacting its business performance, customers, people, values, operations, and ongoing viability. 11. Recommendations for change and improvement ¶ The marketing mix strategy should be reconsidered; 4ps are having a crucial place in the marketing strategies and its identification, analysis, the implementation from managers for the achievement of strategic objectives.¶ Employee’s recruitment, training, test, periodic review of work and their incentive, pay increments should increase the work efficiency of production and sales volume.¶ Food items price, location, online promotion of M&s and cutting flexible cost could contribute to its success in the new market. New clothing line to focus on value and quality. Develop new brand identities through innovation in production.¶ Figuring out how to increase online sales, getting to know about your audience and building rapport with them. Provide commendable customer service m&s can boost store sales through product video.¶ A conversion rate optimization strategy is a way of optimizing each stage of your marketing funnel. Your marketing does include your website, live chat, blog, paid ads. Social media profiles, email marketing complains and mobile apps. There also video marketing and landing pages with forms and so on to increase performance.¶ Customer segmentation through digital marketing process in order to target your marketing messaging and overall campaigns. Managers should know the profit margins of your sales when taken into context with your investments.¶ According to M&S financial reports Ј545m forecast to change in two years.¶ Market value of Ј4.8bn leaves the company towards it progress in FTSE 100 index.¶ Finally as a consultant, the role of organisation behaviour is compulsory in competitive environment.¶ Best use of resource and coordination between all stakeholders to accomplish the desired objectives is compulsory.
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Executive SummaryIn a competitive and rapidly market accelerated change is the only. (2019, Aug 20). Retrieved from https://studymoose.com/executive-summaryin-a-competitive-and-rapidly-market-accelerated-change-is-the-only-essay