Exploring Key Factors Behind M&S Retail Evolution During COVID-19 Era
Introduction
This study will look into how M&S, a business with a long history of success in the retail sector, manages and implements workplace change. The report will discuss a recent project for change that will be looked into and examine the effects of outside variables, such as the COVID-19 epidemic, on the organization.
Figure 1: Marks & Spencer announce eight more UK stores
a. A brief review of the CURRENT state of the Company
The assessment contained a brief overview of the present situation of the company which is Marks and Spencer; it is the most important British worldwide retailer company with headquarters in Paddington, London, the United Kingdom, and that was established in 1884. Previously, it was acknowledged for its excellent clothing and foodstuffs. But, the organization has bearded with major challenges in current years caused by changing customer pReferences and enhanced rivalry from online vendors.
Regarding financial performance, the organization has struggled in the modern years. In the financial year 2020-21, M&S addressed a debt of £201.2 million, and its income decreased by 11.9% because of the COVID-19 pandemic. M&S Company’s current revenue is $13.3 Billion and presently has 959 shops across the UK. Although, it includes 615 shops that only trade food products and its TV marketing, contends the entire nature and amenity of its food or liquid refreshment.
To deal with its challenges, the organization has experienced a transformation preparation, which involves closing some outlets, decreasing prices, and putting money into online potentiality (Gould, et.al, 2020). The company also has been concentrating on sustainability action and increasing its product offerings. Generally, the current situation of M&S is facing important challenges yet it is keenly working to adjust and continue competing in the recent retail background.
b. Relationship with the Company
I worked as an operation coordinator for 4 years in the M&S Company. As an Operation Coordinator, usually, I supervise the regular operations of a company. I was liable to make sure that every operational duty and procedure was running easily, efficiently, and successfully (Goodermote, 2020). In the case of M&S Company, as an Operation Coordinator I was responsible for maintaining the operations of their outlets or delivery centers. This might include integrating with the dealer to make sure timely transporting of products, controlling inventory stages to make sure that the shop or distribution core has the correct products handy at all times, furthermore supervising the work of further workers to make sure which operational projects are finished in a timely as well as efficient manner (Berenguer, 2020). Finally, the particular job of an Operation Coordinator in the M&S intends to depend on the particular work responsibilities defined in the career description and the requirements of the company all the while.
c. Current change initiative
The current change initiative of the report discussed that the M&S Company had newly begun an initiative d "Never the Same Again', which purposed to increase the speed of the organization’s transformation into an additional digital platform, agile, and to make sustainable trader (Beyne, 2020).
Below this initiative, an organization announced various changes, involving the termination of some material stores, the extension of its digital power, the development of its supply chain, furthermore the beginning of highly sustainable practices over its operations. The organization had also set an aim of attaining carbon neutrality greenhouse gas by 2040.
d) An analysis of the recent history of the organization
The company has been impacted by various exterior environmental changes. Here are some of the major changes which are described below-
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Changing customer trends: Customer preferences and attitudes have changed extensively in modern years. Now customers are more concentrated on purchasing products that are ethical, sustainable, and environmentally safe (Thakhathi, 2019). This move has put force on the Marks and Spencer organization to adapt their items to meet these shifting demands.
Economic situations: The global economic landscape continues to play a significant role in the retail industry. The COVID-19 pandemic that began in 2020 had a profound impact on M&S sales, with the company forced to shut down numerous stores due to the loss of revenue caused by lockdowns and decreased consumer spending. Despite some recovery in 2021, ongoing supply chain disruptions and rising inflation have presented additional challenges for the retail industry.
Technological progress: The retail business has experienced vital adjustments due to an increase in technology (Ng, 2020). The expansion of the e-commerce platform has affected the traditional unit, and the company has to spend greatly on its digital presence to stay competitive.
Brexit: The UK's pronouncement to leave the European Economic Community has had a major effect on retail production. The uncertainty nearby Brexit has created a refusal in customer confidence, and that has affected sales for M&S Company.
Covid-19 Pandemic
By analyzing the current history of the company the changes due to covid-19 pandemic have impacted the M&S that are discussed below:
Store shutdown: During covid19, the company had to shut down several of its physical shops provisionally, getting a rejection in stepping and sales (Pasmore, et.al, 2019).
Shift to digital sales: As the nation increasingly changed to online shopping throughout the covid19, an organization had to maximize its digital presence to maintain the demand for products.
Supply chain disturbances: The virus has caused disturbance to supply chains, creating it more complex for M&S Company to obtain items for its shops and consumers (Schleper, et.al, 2021).
Shifting customer behavior: it has altered as a result of covid19, where people becoming more cost-conscious and concentrated on necessary items, and that has impacted the company’s sales of unnecessary items.
Enhanced competition: A covid19 pandemic has also caused enlarged competition while more vendors have moved to online business.
In its 2021 annual report, M&S talked about how the COVID-19 pandemic affected the way it ran its business (Marks & Spencer Group plc., 2021). The company had to quickly adjust to the changes caused by the pandemic, such as the closing of stores, problems with the supply chain, and changes in how people behaved. According to the report, the pandemic had a big effect on the company's finances. It caused sales to drop by 11.9% and the business to lose £201.2 million before taxes.
The study also talks about how changing consumer trends affect how the company does business. M&S has started its "Plan A" sustainability program to meet the demand for items that are made in a way that is good for the environment and people. M&S has also put a lot of money into its online profile and ability to do business online. The study says that the company's online sales went up by 53.9% in 2021. This shows that people are buying more online because of the pandemic.
To acknowledge these threats, M&S Company had to transform and create modifications to its business model. Although, this has involved growing its online benefaction, raising its concentration on crucial items, and decreasing prices where possible. M&S has been researching fresh partnerships and collusion to support its navigates to the developing retail site.
e. Alternative change management models, theories, and techniques
Marks and Spencer might consider utilizing an array of change management theories, techniques, and models, depending on the particular framework of the change as they are executing. There are 2 alternative change management models that the company could consider which are discussed below:
Kotter's Change Model: This model includes 8 steps for executing change, involving beginning a sense of necessity, making a guiding association, increasing a vision and approach, communicating the change visualization, allowing others to work on the idea, making short-term achievement, collecting gains and generating more change, and also tie up fresh approaches in the company’s culture (White, 2019).
Figure 2: Kotter's 8 step model
Lewin's change management model: Organizations are helped by Lewin's three-step change management paradigm in successfully implementing changes. Three steps make up Lewin's model: unfreezing, changing, and refreezing. The M&S Company might put Lewin's change management concept into practise:
Unfreezing: The M&S Corporation can assess its current output, look at customer input and market trends, and identify areas that want improvement.
Changing: The process of altering includes putting the change into action. M&S organization might begin by formulating a plan for how to carry out the necessary changes, which would include identifying objectives and timelines, figuring out the resources needed, and allocating roles and responsibilities.
Refreezing: This stage involves incorporating the changes into the organization’s practices and culture. The M&S Company may consider developing new policies and procedures to support the changes, recognizing and rewarding employees who adapt to the changes quickly, and monitoring the effectiveness of the changes to ensure they have a lasting impact.
Prosci's ADKAR Model: This model focuses on a particular change, and includes 5 stages that are awareness, appetite, knowledge, skill, and reinforcement (Shahzad, et.al, 2020). The M&S Company could utilize this model to concentrate on how these individuals inside the company are affected by the change and also what particular steps are required to help them during the change procedure.
Figure 3: ADKAR Model
A model for change
Derived from the specific requirements and framework of M&S Company, it would also grow its change management model. A possible model for M&S can involve the following steps:
Assessment: Assessments is required for the company’s current status, recognize areas wherever change is required, and decide the effect of the change on shareholders (Ali, 2021).
Planning: Develop planning for executing the change, involving timelines, resources required, and communication approaches.
Communication: Communicate the requirement for a change to every stakeholder and offer continuing updates through the change procedure.
Implementation: Executes the change according to the plan, utilizing suitable change management methods and monitoring growth regularly (Whysall, 2019).
Evaluation: Estimates the victory of the change and creates adjustments as compulsory.
Institutionalization: Set the change in the company’s culture and procedures to make sure that it is sustained gradually.
It is essential to note down that this is one possible change management model, and the company must adapt its strategy to fit its particular requirements and context.
Critical evaluation of change management models
Even if each of the aforementioned change management models has advantages and disadvantages of its own, it is crucial to assess each one carefully before deciding which to use at M&S. Here are some things to think about:
Kotter's Model of Change
One of the strengths of this approach is its clear and structured methodology for managing change, which places significant emphasis on creating a sense of urgency and building momentum to facilitate the change process.
Weaknesses: Not all sorts of change may be appropriate for it, as not all changes necessitate following all eight processes. Additionally, it might not address how people inside the organization feel about change.
Lewin's Model for Change Management
Strengths: It offers a straightforward, uncomplicated foundation for handling change. It also underlines how crucial it is to get ready for change and reinforce new habits in order to make them stick.
Weaknesses: Given that it places more emphasis on little adjustments, it might not be as appropriate for complicated or extensive changes. Additionally, the emotional aspects of transformation might not be appropriately addressed.
The ADKAR Model by Prosci
Strengths: It emphasizes how each person experiences change, which can help to resolve change resistance. Additionally, it offers a precise framework for handling the various phases of change.
Weaknesses: The organizational and cultural dimensions of change, which are crucial for more significant changes, could not be covered. It might also be less appropriate for modifications that call for a substantial level of technical or procedural knowledge.
The suitability of a change management model is contingent upon the specific contextual factors and needs of the organization.
Incorporating issues related to strategic change
Incorporating issues referred to as a tactical change in Marks and Spencer organization includes identifying the requirement for change and also developing planning to execute the change successfully. Here are several steps which the company could take to absorb problems related to tactical change:
Conduct a tactical analysis:The Company should conduct a systematic analysis of its interior and exterior atmosphere to recognize the main problems and opportunities that need tactical change. This analysis must involve a review of its mission, vision, principles, and SWOT (Errida, 2021).
Identify strategic objectives: derived from the outcome of the strategic analysis; M&S must identify particular objectives that need strategic change. These objectives have to be aligned with its all-over mission and vision and must be SMART.
Build up a strategic plan: the company must increase a detailed plan for applying the strategic change, involving timelines, assets needed, and communication tactics. The plan will also involve emergency measures regarding unexpected setbacks.
Build a partnership for change: M&S must build a partnership of investors, which are committed to strategic change, involving the board, managers, workers, and exterior partners. This partnership must be responsible for executing the change and assuring that it is continued with time.
Communicate the change: the company will communicate the strategic change to every shareholder, involving workers, consumers, and stakeholders. Communication must be clear, translucent, and continual, and must address some concerns and questions which investors may have.
Execute the change: According to the plan, an organization should apply the strategic change while utilizing suitable changes management methods and monitoring growth regularly (Dubey, et.al, 2019).
Evaluate results: An organization must evaluate the outcome of the tactical change to decide if the objectives were achieved and if the change has been successful. The evaluation must be in progress, and adaptations will make as necessary.
Although, by these steps, M&S Company can successfully react to changing market situations, manage its competitive advantage, and also attain its long-term goals.
The management of change and the leadership style
Marks and Spencer have experienced several considerable changes in current years, and also the accession to change management and management style has varied depending on the certain change plan. Here are various steps of how change was handled and the leadership style in the company was discussed below:
Transformation plan in 2016: In 2016, the company released a transformation plan which involved reorganizing the company, decreasing prices, and improving operational effectiveness. The change was handled in a centralized way, by CEO Steve Rowe preceded with a direct leadership style, sharply lookout the growth of the transformation plan (Hendri, 2019).
Digital transformation: In modern years, an organization has spent a lot in digital transformation, involving the initiation of a new website and cell phone app, besides improving their digital shopping action.
Sustainability initiatives: An organization has made major efforts to get better their sustainability and to decrease its greenhouse effect. This change was handled through a collaborative style, with the company engaging with diverse investors, involving suppliers, consumers, and NGOs, to build up and apply sustainability initiatives (Powe, 2020). In this case, a leadership approach was extra participative, with a focus on attracting investors and building agreements around necessitated sustainability.
In comprehensive, the leadership technique in the M&S organization has diverse depending on the particular change initiative, with many changes being handled through an extra centralized method and others are being decentralized or collaborative approaches. Yet, there is a logical emphasis on interaction, collaboration, and including workers in the change practice, any way of the leadership method.
Critically evaluation of evidence, arguments, assumptions, abstract concepts, and data relating to the necessity of change in organizations
The present situation of Marks & Spencer Company might have changed afterward, and new facts or data could have emerged (Mirzoyan, 2022).
Evidence
Financial performance- Marks & Spencer has undergone decreasing sales and profits in current years, which can show the requirement for change. For instance, in its yearly statement for the fiscal year closing in March 2021, the company reported a decrease in income and pre-tax revenue compared to the earlier year.
Market rivalry- M&S faces brutal rivalry from both customary and online vendors, which may involve the organization adapting and also changing to stay competitive. The increase in e-commerce platforms and changing customer choices for online shopping has affected M&S, which can require adaptation to its industry model (Vahidi, 2019).
Customer feedback- is done through reviews, surveys, and social platforms, which can offer valuable facts for the necessary change. If consumers express disappointment with the company’s products, services, and all-over experience, it can point toward improvements or development in the organization's offerings.
Arguments
Adaptation to shifting customer preferences: customer choices and shopping behavior have important, with an enhanced highlight on comfort, sustainability, and online experiences. The company may require changing its product offerings, shop formats, and online strategies to line up with these shifting customer demands.
Increasing operational efficiency: the company wants to improve its supply chain, stock management, and total operational efficiency to decrease costs and advance profitability. Simplification of internal procedures and structures can support the company to become more agile and approachable to changing market act.
Innovation and distinction: To remain ahead in the retail competitive site, this company requires investing in advanced technology and differentiating itself from other competitors. This would include launching new services, products, or outlet concepts, and using technology to increase the consumer experience.
Assumptions
Assumption of consumer reliability: this company can imagine that its loyal consumer base will endure supporting the brand in any case of changes made (Hanelt, et.al, 2021). But, changing consumer tastes and enhanced rivalry may face this assumption, along with the company must carefully calculate customer trustworthiness against shifting market dynamics.
Internal conflict to change: Change action inside a corporation can face conflict from workers, especially if it includes job responsibilities, procedures, or cultural changes. M&S can want to address possible inner conflict to change and build up tactics to handle and mitigate it.
Market environment assumption: the company can also assume with the purpose of market situation will stay almost stable, and whichever changes are made will give up expected outcomes. Though external factors like economic situation, governmental changes, and earth science events can influence the victory of change initiatives as well, the company needs to consider possible threats and uncertainties.
Abstract concepts
Brand image or status: Marks & Spencer business has a long-lasting brand and status for quality and belief. Every change made to its products or services, and industry model must support by its brand ethics and keep going to increase its reputation.
Organizational culture: the business has its different organizational culture, which can impact the achievement of change initiatives. Shifting the organization’s culture might be challenging but compulsory to make a significant change (Gustafsson, et.al, 2021). It can include aligning business ethics, attitudes, and practices to help the preferred changes.
Stakeholder engagement: the business has diverse stakeholders, involving workers, consumers, suppliers, and investors who could have dissimilar perspectives and interests. Successfully appealing to these shareholders and maintaining their expectations can impact the achievement of change action.
A change management plan with sustained arguments, to make judgments ‘or solve problems
The concept of change management plan supporting members of M&S is to adapt these changes inside the organization. There are some steps to build up a change management plan with continued arguments that are discussed below:
Goals - firstly; developing a change management plan is to describe the change which requires taking place. Recognize the scale of the change and what the preferred result is.
By making sustained arguments, without a clear interpretation of the change, it is not possible to handle it effectively. Making the change supports setting up the goals and targets, this in order helps to lead the change management procedure (Cameron, 2019).
Stakeholders- identifying the shareholders who would be concerned by the change and it involves employees, suppliers, consumers, and other outer investors.
By recognizing the stakeholders' assistance to make sure that their requirements and concerns are marked throughout the change management procedure (Chebbi, et.al, 2020).
Communication- establishes a communication plan that forms how the change would interact with stakeholders. This must involve timing, regularity, and style of communication.
Effective communication is important for the success of whichever change management plan of the company. It also helps to make trust in the change and make sure that every person is aware of what is occurring in the company.
Risks and opportunities- Address a risk review to recognize possible threats and opportunities connected with the change. In this framework of change, the largest risk is conflict among the group who should adapt. When people were performing similar work, it is tough to change to a new procedure.
By assessing threats and opportunities, it is feasible to build up tactics to mitigate the threats and take favor of the opportunities. This supports checking that the change is handled effectively as well as the desired results are attained.
Training- establishes a training strategy that figures out how workers and other team members will be trained on the new procedures. Group members will need an indication source up to they have completely modified to the change.
Training is also important for the victorious execution of any change to the company. It makes sure that workers have the knowledge and skills they require to work in a fresh environment that supports decreasing resistance to change.
Monitoring and evaluation plan- in this increase a monitoring and assessment plan that figures in what way the change would be observed and estimated over time.
Monitoring and estimating are vital for assuring that the change is victorious in the long haul. It helps to recognize any problems or difficulties that can arise and permits improvement to be made as required (Dykes, et.al, 2019).
Particular aspects of current research
The company Marks and Spencer is a popular UK retailer that has gone through major changes in latest years. These changes have involved organizational revolution, supply chain development, and improvements in the consumer experience. On this basis, it is vital to critically evaluate the current research and execution of workplace change in M&S. One of the major changes executed in the company was a move to an extra-agile style of operation. The company acquired agile techniques to enhance its momentum of delivery and get better consumer satisfaction (Sunarsi, 2019). The agile method included collapsing work into minor, controllable chunks, and concentrating on repetitive development and constant feedback. M&S retained greatly in training its workers in agile techniques, also this was an important success aspect in the acceptance of this fresh approach to working.
Though, while the change to an agile method of operation was victorious, also there were difficulties. A few workers found the changeover difficult, mainly those who were utilized to operational in a further traditional style (Smith, et.al, 2020). This formed a possible barrier to the triumphant execution of the new method, and it was essential for M&S to concentrate on these concerns carefully. Another considerable change in an organization was a target on sustainability and behavioral practices. M&S recognized that consumers were becoming extra aware of ecological and ethical matters and that it required adapting to meet these shifting demands. Overall, the company had to defeat resistance from a few suppliers who were not utilized to gather these new principles. Moreover, there was a worry about the price of building these changes and if they would affect the company's productivity (Roscoe, et.al, 2019). But, M&S acknowledged that these developments were compulsory for the continuing success of the production, and it retained them in training and helped to make sure that its workers and suppliers were allowed to meet the new principles.
e. The impact of organizational culture on the change management program
Impact of organizational culture
Marks and Spencer (M&S) Company is a famous retailer in the UK with an extensive record of success. Over the years, an organization has experienced important changes involving strategy, culture, and leadership changes. The impact of organizational culture on the change management program at the company can be classified as follows:
Struggle to change- the largest impact of organizational culture on change management is the stage of struggle to change. The company has a tough culture that is resistant to change. This made it complex for an organization to apply major changes earlier, for instance, shifts to digital retailing.
Worker engagement- A powerful culture can cause a high stage of employee commitment that could be advantageous when building change (Asbari, et.al, 2020). But, if the customs are not coordinated with the change, it can cause low worker engagement and a struggle to adjust.
Leadership- This style and ethics of the company can impact change management. In recent years the company has had some distinct leaders. Also, they each have their method and move toward change. A few leaders became successful in beginning change, although others have strived.
Communication- Organizational culture can also affect communication which is a vital feature of change management. Whether the culture helps open and truthful communication, it can support making sure that workers are up to date about the change and also recognize its significance. But, if the customs are more hierarchical and interaction is bounded, it can cause misunderstanding and resistance.
Innovation- lastly, organizational custom can affect innovation which is essential for a successful change organization (Aboobaker, 2021). The company has previously been recognized for its traditional and old-fashioned style, which can bound the talent to innovate and adjust to change.
Lastly, the effect of organizational customs on change management in M&S cannot be overemphasized. A helpful culture that considers open interaction, training, innovation, and management support could be a major driver of success. On the other hand, an unhelpful culture that is opposed to change could be an important barrier to applying every change management plan.
The suitable change management plan
Change management is a procedure that helps M&S Company’s conversion from a present position to a preferred future position. Developing an appropriate change management plan includes several steps and considerations. There are some step-by-step points to developing a plan for the upcoming future:
Recognize the planned change- Initial step is to recognize the change which requires to be executed. This can be whatever thing from the latest technology execution to a change in organizational formation or its culture (Paais, 2020).
Perform a willingness assessment- It is essential to evaluate the readiness of the company and its workforce for future change. This involves recognizing potential barriers, threats and struggles to change.
Develop a workforce training and progress plan- Once the preparation assessment is finished, a training and progress plan will develop to make sure that team members have the ability and knowledge needed to successfully execute the change. The plan must involve training sessions, workshops, mentoring, and coaching.
Expand a communication plan- Communication is the main key to the victory of any change program. A communication plan must develop to make sure that all shareholders are knowledgeable about the change and also recognize its value.
Execute the change- Once the development, communication, and training plan are in position, the change can be applied. It is vital to monitor the execution procedure and address any argument that arises.
Develop timeline- The schedule must be evolved for the process of change management, involving key highlights and deadlines (Martínez-Caro, et.al, 2020). This schedule must be communicated to every stakeholder to make sure that everybody is aware of the schedule and plan accordingly.
Estimate the change- an evaluation plan must develop to calculate the achievement of the change plan. This must involve identifying the main performance signal (KPIs) and setting up a procedure for gathering and analyzing data information. The results must utilize to inform upcoming change plans.
By developing a suitable change management process for M&S needs cautious planning, communication, monitoring, and training. By acquiring these stages the organization can effectively navigate the change procedure and attain its desired results.
What triggered M&S to bring change need to be critically assessed?
To understand why M&S changed, one must examine how the retail industry has been affected by external factors. These changes include client preferences, the economy, technology, and Brexit. Consumer tastes drove most M&S adjustments. M&S had to adapt their product line to suit client demands for ethical, eco-friendly, and durable items. The company's 2007 "Plan A" sustainability program reflected this. Due to the economy and COVID-19 pandemic, M&S has implemented changes. E-commerce platforms and technologies to improve consumer experience have changed the retail industry. To compete, M&S had to invest in digital capabilities like a mobile app and online ordering.
Finally, Brexit has changed purchasing. Brexit uncertainty has lowered consumer trust, hurting M&S sales. Taxes and customs regulations have forced the business to adjust.
CONCLUSION AND RECOMMENDATION
Throughout this lesson, I have acquired a substantial amount of knowledge regarding the complex process of change management. The author's findings suggest that meticulous planning, clear communication, and collaboration with stakeholders are crucial components for achieving successful organizational change. The case study of M&S Company provides a useful demonstration of how a business can effectively implement change management strategies to respond to dynamic market conditions and achieve its strategic goals over the long run. This module encompasses various significant lessons, among which lies the significance of assessing the present situation prior to effecting any modifications. The utilization of a SWOT analysis has been found to be beneficial in identifying the strengths, weaknesses, opportunities, and threats that are integral to the development of an effective change management strategy.
The significance of engaging stakeholders in the process of change was also acknowledged by me. This involves engaging in collaborative efforts, acknowledging stakeholders, and maintaining transparent and regular communication with the employees. In order to increase the likelihood of success, it is advisable for the business to engage all stakeholders who will be affected by the proposed change and cultivate a culture of support and confidence. Ultimately, it has been determined that a steadfast commitment to ongoing enhancement is imperative in order to effectively execute transformative measures. The phenomenon of change is not a singular event, but rather a perpetual progression that mandates ongoing monitoring, evaluation, and adjustment. In general, this module has furnished me with a robust groundwork in change management that I can implement in my forthcoming professional pursuits. The comprehension has been attained that change is an inescapable facet of organizational existence, and its accomplishment necessitates meticulous preparation, proficient communication, and cooperation among all parties involved.
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