Marks and Spencer is one of the leading foods and non foods retailer almost all over the world and its quest is to provide excellent quality to their customers. They have long history of excellent service and product and successful experiences of business. Nowadays they have experienced some very nice extend of competition using their rivals such as competitive price strategy and use of excellent market tools and new fashion at low priced prices. In such a survey we will discuss the necessity of change that Markings and Spencer would required in business.
These days' companies are focus to increase their product line and market their process by using of effective marketing tools for example 4p's for example Tesco is the one of the largest retailer in the united kingdom and currently having more than 2500 line of products in their store and they are increasing their products day by day because they want to retain their old customers as well as they want to attract clients, for this purpose they may have strong R&D Team that helps them to learn that what will be the competitive product and they not only took effort but also start their specific group researched to boost their existing product. Mean while the complete process is checked by upper management level plus they use right place, right process and right product for the right people and increase their sales level with the slogan of 'Every little help'. This is very effective technique to show the complete process by expressing that they are only supporting their customers.
The need of above example is the main key process of their R&D team is that they review their entire process over and over to make their decision and products better and use changes on urgency basis.
Before discussing the necessity of change in Grades and Spencer I will discuss and model for changes which can be these:
Kotter's Model for Change
Change is an activity that require to be placed compulsory in each and every organization these days after certain period, these changed could maintain management level or labour level, but the important thing that change should be put in place successfully to gain the same level or even more then your old level of satisfaction or earnings.
In Harvard Business College Korter unveiled the eight step of style of change that help organization to implement the desired change successfully and carefully and also on immediate basis. (Head Tools, 2011)
He pointed out that changes that corporation need in the existence of their competitors are most quick so that is why employees should acknowledge the change to help the org. to lead in market with quick decision.
As we've talked about above that company needs a quick change to lead in the market with competitive skills and products and with competitive decisions. Now we will have its importance with a good example of Markings and Spencer, imagine its competition ASDA presents a discount of 10% bread and butter collectively, now the next morning it's the challenging situation for Grades and Spencer to retain their customers before beginning hour they need to call the assembly on urgent basis and plan the change in their strategy as a result of competitors actions, they introduce loyalty plan that who will buy loaf of bread and butter will get double club credit card point that will help to retain the customers and their profit will remain same, but later they have to make it sure that this one decision is use in every their branches in UK to protect the self-assurance of the clients. That is call urgency need of change. To put into action these skills and situation M&S would have to:
Analyse their employees potential of learning and their knowledge skills that how effective these are towards any change
Allow the room and a chance to employees to find out the necessity of business by doing SWOT examination and made them aware that how quick they should be in term of change
When management take your choice from employees than employees would know and can assess the forthcoming change and will be ready to adopt it.
Implementation of change without strong management means possessing a profit without assets in retail industry. We are able to measure the value of change without leader inside our daily lives. Relating to Korter team work of firm towards change leads to success. For your purpose Grades and Spencer must follow these details:
Take a feed back again from employees about the progress of the leader
Do external audit to learn the effect of leader on the employees
Hire new strong head to put into action the changes on immediate basis
Every corporation do practice and do inside audit to make sure that their workers are working with the knowledge of their journey that causes common mission and objectives. Corresponding to Korter in case of change in group goals and mission they must remember these new methods to their employees. (Value Based mostly, 2010) They are able to do in the next format:
Use of few words and post it inside the business on small distances
Do the workshops with the general public and with employees showing your improvement and the treatment company's for customers and their employees
Use of the words in common speeches in mid term accounts, etc.
As we've talked about before that the need of the management is to do practice of keeping in mind of common eyesight and mission among their employees to tell them their obligations and any new changes.
As we've mentioned the korters need of urgency at start they also focused that if indeed they found any obstacle in reviewing process it must be removed urgently.
Management while remembering the perspective among employees should appreciate every little work of employees to made them perfect and productive in their own responsibilities. This might help the other employees to be motivated. (The first choice dispatch hub, 2011)
This step defines that company have to be productive and really should not stop after certain level of change but regularly should analyse the marketplace situation.
Company such as Marks and Spencer should always associate the change ideas and strategized with the company environment and using its current ethnicities.
In recent research it is found that M&S having low level of sales due to their extra expenses on non related items like corresponding to M&S they spent 2m pounds in partnership with Oxfam to accumulate the old unused cloths and for stopping land filling up. This strategy also market on the websites and on different paid place these activities acquired lot of amount and performed give back nothing in term of financial to stake holders. Before putting into action these types of strategies it's important to measure the benefit of key stake holders. (Markings and Spencer, 2010)
Initially they get 1200 of people on their web site in a single moth by saying that they will award a amount of amount who would supply the most productive idea to safeguard the surroundings but this activity to invite them didn't provide them with as such because they were more targeted towards alternative activities than introducing new styles and products.
As we have discussed the reason that why they need change that is first of all the over allocated to the advertising and second thing is that the focus of the management towards companies goal and quest and third is increasing the merchandise line.
These factors are not only centered on company's strategies but if we discuss the same factors with the business's objective we must ensure the quality of whole process to let every employees know the importance and principles of company's mission.
With the relationship of most above talk now I am going to discuss the exact main root of change that what exactly are the places needed change?
Below are the main root that causes the disturbance and these factors need to be changed in Markings and Spencer:
Unclear goals of M&S among the employees
Extra spending and attention of extra curricular activities
Low quantity of product line
Increase new style fashion
Regular reviewing and monitoring process (Internal Audit)
These will be the few points that must be implementing in Marks and Spencer to accomplish its old quest statement.
As we've discussed that the key problem in markings and Spencer is that their vision towards their business activities is not clear they are focus to treat alternative activities as their own business activities such as they signed up with their side with Oxfam a charity company and have started campaign to gather the unusable cloths to stop land filling and reselling them by making use of Oxfam. Actually they have got distracted off their real work its not credited for some employees activity but this action is being made a decision and taken by upper degree of management.
Now the change is necessary for the reason that area to recover the lack and demage to business brand value to complete their uncompleted short-term goals to attain permanent goals on chosen time until 2020.
Here kotter's first step of model of change can be applied that they needs to create the problem of quick change by considering the current situation with their business as compare to the other opponents they must have the ability to become quick as they want to gain the profit from the market businesses. For this they desire a strong leadership that would motivate and draw in the employees towards the necessity of urgency because some times employees didn't target that what they are doing and they didn't adopt the change so that it is the duty of leader to insist them that change is the compulsory thing that should be implement. (brain tools, 2010)
The change is necessary in product line where there are incredibly few fashion products they can be presenting as compare to their opponents. BY doing SWOT analysis they would come to learn the necessity of new and progressive product that will help them to retain the old customers and by adding new styles in non food industry they will attract other clients as well. (Markings and Spencer)
They need to improve their belief towards your brain capturing of customers until now they recognize that the ultimate way to attract the clients is socialise them on their web site and have them to give new suggestions to win the awards but these ideas weren't so popular but still the reason why of spending extra money and time onto it.
After guaranteeing the strong head management should do a quick review of their planning and find out any barrier that puts a stop to their progress towards their goals. After making sure all tools and techniques than they want to be sure that they are appreciating their employees to escape them some thing extra to market their vision and to get the suggestions and new ideas from them.
As we've discussed that they are presently in need to attract the customers by introducing new styles and fashion in clothes industry to catch the attention of more customers from all around the UK so if so they would able to become the market leader in short term in the UK's market.
After making certain they have got removed the obstacles and have created short-term wins now they have to change the internal environment of M&S time by a chance to get the present day techniques and styles directly into their corporation. That constant change would remind the employees to give their on recommendations on their short-term wins and get back opinions business can act quicker to the change.
Now we will discuss the importance of stake holders in virtually any organizations and their need in the companies change strategies and their importance in total business planning.
Stake holder means several person and companies having direct or in direct relation with the company strategies and they're affected with company decision internally or externally.
Supplier at Grades and Spencer are both food and non foods so while making tactical planning it is crucial to care for their interest in that policies. Suppliers interest could be upsurge in variety of their order so they might get paid more and taking new purchases would increase their productivity and profit. With the consent in change running a business strategies of suppliers they would in a position to provide services and new ideas on time to the clients on the shop and also on online stores and they would get on time door to door delivery.
They also a great effect on environmental by using renewable factories and transport while delivering the meals and fashion products to the clients at their entrance doors.
Board of Directors are those one who have superior electric power inside the business and are having large number of shares and any nay insurance policies results their interest more terribly or positively. So that it is vey important to design the change coverage in the way where BOD can easily identify their short term and long-term profit of the business.
Their are two types of customers who shop from Marks and Spencer that is within shop customers and other type is Online customers in recent gross annual report matching to M&S they proved the sales physique in which the total 15% of sale from UK was online founded that was the large amount sold from online language resources. Now while doing change in organization it is very important to consider the interest of both kind of customers to get the best degree of satisfied customers with increasing range of sales.
In some projects govt. is included available planning as a stake holder such a charity program that works nation large have a great impact of govt. section in it so doing change in procedures would impact them badly. So management needs to care their interest as well to protect their permanent benefit.
Bow we will discuss the need of change and exactly how they implement it in the business with consent of most other key stake holders. To comprehend this technique easily I have divided these steps in main five steps such as financial and function level and their sub mind with Kotter's models, etc. The execution is defined in table below:
Need To made quick decision on Urgent basis
Strong control that contributes to strong team work
Clear eye-sight on all company's objective
On regular basis communication with company's employees
Improve composition level by removing any obstacle
Increase the confidence by awarding them on short term achievement
Regular working towards change with the help of marketing tools
Daily revision of old achievements and new targets
Progress with repetition under supervision
In Marks and Spencer company have lot of branches inside the united kingdom to ensure that each of them act on guidelines of change at practical level and process level it's important to get their strong authority to them to bring the new and desired change it is because of the study of Kotter's model of change relating to him the necessity of change only could be produced if the team would have strong coalition and strong leadership. That is why doing SWOT research as of this level is also important to get rid of obstacles at urgency level, other sensible entire process would lead to the company towards unsuccessful change and the eye of stake holders would be damaged.