Strategic Management And System Thinking Process Of Marks & Spencer
- Carry out a literature review on the topic of “Systems Thinking and Strategic Management: The Dynamics of Strategy”.
- Based on the literature review choose an appropriate methodology to be able to explore business strategy dynamics for an organization or industry of your choice.
- Apply the causal loop diagraming technique for an organization/industry of your choice
- Formulate strategies based on scenario planning
- Present your work in a research paper and give a power point presentation
- Your paper should have the following sections: abstract, introduction, literature review, methodology, results, conclusions and references.
- References should be cited in the text using the Harvard Style
This report focuses on the different issues regarding the strategic management and system thinking process of Marks and Spencer. This study also highlights the importance of strategic management approaches that enhance the trading values in a competent manner. Beside this, the report also describes the various types of issues that an organisation may face to implement their strategic management approaches as well as the systems thinking process. The different types of theoretical frameworks have been discussed in this study that helps a company to mitigate their business issues in a competent way. Furthermore, the secondary data collection process has been applied to implement this research and thematic data analysis has been used to gain the objectives of this research.
1.1 Background of the study
Strategic management provides a proper direction to develop a business plan by which a company can achieve its trading goals in an efficient manner. This study focuses on the strategic management procedure of Marks and Spencer which is a renowned retail brand in the UK.
1.2 Aim and Objectives
Aim: The fundamental aim of this research paper is to focus on the importance of strategic management, the different issues and their impact on the trading process of Marks and Spencer and the different strategies by which this company can mitigate these issues and implement the strategic management process in an efficient way.
- To understand the importance of strategic management and systems thinking in Marks and Spencer that improves their competitive advantage in an effective way.
- To analyse the different issues that Marks and Spencer has faced to implement their system thinking and strategic management process
- To evaluate the impact of the issues on the trading process of Marks and Spencer
- To recommend the probable strategies by which Marks and Spencer can mitigate these issues and implement the strategic management process in an adequate manner.
1.3 Research Rationale
Marks and Spencer have encountered an issue in recent times due to their improper marketing strategy. Marks and Spencer have set a high amount of cost for their products and as a result, all the customers cannot afford their products. This process creates a huge barrier to getting an advantage in the competitive market. Currently, this is a major challenge to Marks and Spencer because they never focus on the requirements of their customers that pull them back from the competitive market. In addition to this, Marks and Spencer are not able to make effective decisions regarding their business process that creating a huge conflict in their trading process (Bbc.com, 2020). Due to these issues, Marks and Spencer are not able to make a proper plan regarding their trading process that creates a major hurdle to gain a competitive advantage over the competitors. Hence, this research focuses on the improvement of strategic management of Marks and Spencer by which they can enhance their trading values in a competent manner.
2. Literature review
In this chapter, the different types of aspects of strategic management operations have been evaluated in an effective way that provides a clear view regarding the importance of strategic management operations. This chapter also describes the different types of issues that create a conflict to implement the strategic management process within a company in a decent way. This chapter also implements the different types of theories regarding the strategic management process by which an organisation can mitigate the different types of challenges in a proficient as well as successful manner.
2.2 Significance of strategic management and systems thinking in trading process of an organisation
Strategic management process plays a crucial role to develop an overall plan regarding their trading process by which a company can achieve its operational goal in a positive way. In addition to this, the systems thinking process aids a company to predict the outcome of the future position of a company that enhances their trading values in a significant manner. According to the opinion of Sullivan et al. (2018), proper strategic management also boosts the efficiency level of a company that increases the productivity rate in an impressive way. Along with this, strategic management also improves the financial condition of an organisation that increases its profitability rate in a compelling manner. Thus, it is quite important for a firm to engage the strategic management process in an efficient way that increases its revenue value in a competent and decent manner.
Furthermore, the strategic management process also helps a company to make an appropriate decision regarding their trading procedures that enhance their operational values in a proficient way. The strategic management process also forecasts the future problems and the opportunities of an organisation by which a company can implement its marketing strategy in a competent as well as decent manner (Williams et al. 2017). In addition to this, the strategic management process also provides a clear direction regarding the trading process of a firm that enhances the performance level of the employees in a potential way. The strategic management process also provides proper incentives to the employees that aid a company to achieve its performance goals in a compelling way. The strategic management process also helps to reduce the conflicts within the organisation that improves their performance value in a proficient way. Hence, the strategic management process improves the values of organisations that also increase their profit margin rate in an adequate way.
2.3 Identification of different issues that create a conflict to implement the strategic management and systems thinking process
An organisation can face challenges due to the set of poor goals regarding the business performance that careers a huge conflict to implement the strategic management process in an adequate way. Along with this, the system thinking process does not apply to the complex systems of a company that affects the performance level of an organisation in a competent way. Besides this, a company can also encounter issues regarding the collaboration process that hampers the operational values and the strategic management process of a company in a proficient way. The lack of alignment of a firm can be occurred due to the non-strategic performance that creates a huge barrier to gaining the business objectives of a company. However, system thinking is not an effective tool to handle the crisis of an organisation and this tool does not provide any kind of emergency actions regarding their business process. As per the views of Burgelman et al. (2018), the strategic management process is not able to track the progress of the employees of a company that decreases the transparency level among the employees and the employers in a proficient way. A company can also face issues regarding the time-management process that may affect the strategic planning within a firm in a proficient way.
Furthermore, many organisations do not involve their employees with their strategic planning and the business goals that create a conflict to implement the strategic management process in an efficient way. Due to this challenge, the people are not able to connect with the strategic goals that make a huge conflict to achieve the strategic management planning in a competent way (Woodcock and Johnson, 2019). In addition to this, the conflicts regarding the communication process can also create a barrier to implementing the strategic management process in an impressive way. Hence, the above discussion states that there are different types of issues regarding strategic management as well as the system thinking process that creates a hurdle to implement these strategies in a proficient manner.
2.4 Evaluation of the effect of different issues regarding the strategic management and system thinking on the trading process of a company
The issues of the strategic management process can hamper to set a proper business goal by which a company is not able to gain their objectives in a compelling manner. According to the opinion of Ayd?n et al. (2020), the issues regarding the strategic management process reduce the productivity level of a company that create a barrier to gaining the advantage level in the competitive market in an efficient way. Due to the lack of performance strategy, a company is not able to motivate their employees that creating communication conflicts among the employees and the managers. The improper tracking process of the employees’ performance can decrease the transparency level among the employees and the managers that may hamper the organisational values of a company in a competent way.
Furthermore, the system thinking process is not applicable in the complex project system of a company and as a result, this tool is not able to provide the solution regarding the major issues of a company. In addition to this, the system thinking tool is not able to handle the emergency crisis of a company that makes a major negative impact on the growth of their business in a compelling and proficient manner (do Amaral and Fregni, 2021). Thus, the issues regarding the system thinking and the strategic management process can make a major negative impact on the business ethics of a company that also decreases their productivity rate in a decent way.
2.5 Implementation of different theories to mitigate the challenges regarding the strategic management operation
2.5.1 Causal loop diagraming technique
A Causal-loop diagram creates an interrelation between the process and issues that affect the trading process of a company. Similarly, Marks and Spencer have faced a lot of strategic issues regarding their trading process that creates a huge conflict on their business progression. Therefore, this company has implemented this model by which they are able to make an interrelation between the factors, issues and the process of the business that helps to enhance their productivity rate in a competent manner. However, the Causal loop diagram has also been identified by the system thinking model that plays a crucial role to identify the behaviour of a system that creates a positive impact on the performance level of a company in a compelling manner (Bureš, 2017). Hence, the Causal loop diagram provides a relationship among the factors, processes and issues of a company by which they can enhance their performance efficiency level in a proficient way.
Figure 1: Causal Loop Diagram
(Source: Bureš, 2017)
2.5.2 Resources based theory
Resources-based theory increases the competitive advantage of an organisation by providing long-term success within a company that also increases the sustainability level of a company in a competent manner. According to the opinion of Correa et al. (2017), due to the application of the resource-based theory, an organisation is able to fulfil the requirements of their customers by which they can enhance their trading values in a competent as well as decent manner. This theory also improves the innovation strategy of a company by which they can provide the best service to their customers that also increases the customers’ satisfaction level in a competent way. Thus, the resource-based theory increases the sustainability level of a company that improves its trading values in a positive and successful manner.
Figure 2: Resource-Based Theory
(Source: Correa et al. 2017)
2.6 Strategies for improving the system thinking and strategic management process
System thinking of an organisation can improve by enhancing the team working process that boosts the communication strategy among the employees and the leaders in a positive manner. Besides this, the strategic management process of an organisation can be developed by making proper decisions regarding their business that enhance their trading values (Keesstra et al. 2018). In addition to this, it is also important for the managers to monitor the performance level of the employees that motivates them to perform their job roles in a proficient as well as adequate manner.
2.8 Chapter Summary
From the above chapter, it can be summarised that the strategic management process helps an organisation to achieve its performance goals in a competent way. Along with this, the system thinking of an organisation helps to solve the critical business problems of a company. Thus, it is merely important for a firm to improve its strategic management approaches as well as the system thinking process of a company that increases its sustainability level in a decent way.
3.1 Research Philosophy
The interpretivism research philosophy has been used to implement the research that provides valid responses regarding the research. Based on the ideas of Ryan (2018), the interpretivism research philosophy focuses on the beliefs of the people that help to achieve the goal of the research in a competent way. Hence, the particular study has also gained valid responses regarding the research by which this study can achieve its objective in a competent way.
3.2 Research Approach
In this research, the deductive research approach has been used that plays a critical role to make the relationship among the variables and the concepts. Due to the help of this research approach, this particular study has formed an appropriate conclusion that aids to achieve the goals of this study in a decent way.
3.3 Research Strategy
The qualitative research strategy has been used in this study that creates a deeper knowledge regarding the research procedure in a potential manner. Along with this, the qualitative research strategy is quite flexible that helps to execute this study in an authentic and exclusive way.
3.4 Data Collection Method
In this research, the secondary data collection process has been used that reduces the time of the research in an effective way. In addition to this, the secondary data collection process is also cheaper and this data collection method also develops the result on the existing research process by which this study can gain a better result from the entire research process.
3.5 Sampling size and technique
For this research, 2 different newspaper articles have been chosen that provide clear information regarding the strategic management issues of Marks and Spencer. The secondary non-probability sampling technique has been considered to provide a better result regarding the research process.
3.6 Data Analysis
In the research, thematic data analysis has been used that increases the flexibility to interpret the data in an efficient way. Due to the thematic data analysis process, a large amount of data has been analysed in an effective way that executes the entire research study in an authentic as well as exclusive manner.
Existing operational issues within Mark and Spencer
Mark and Spencer is one of the reputed retail stores in the UK that are currently undergoing form several operations; issues that ultimately impact on their market performance. One of the significant issues within the organisation’s operation is that it failed to recognise the latest trend within the fashion market that failed to attract any new customers towards their stores. The organisation is mostly focused on selling conservative clothing styles that are not appealing for the young generation customers (Theguardian.com, 2020). Ineffective application of price and production strategy has a direct impact on their revenue generation. On the other hand, main competitors of Mark and Spencer such as Zara, Primark and H & M have introduced fast fashion strategy in their production line that adds advantages in their business. One of the significant issues of Mark and Spencer is that it fails to adopt e-commerce strategy within their business in a timely manner. In spite of gathering data on the purchasing behaviour of their target customers, they invested in setting up a high-tech warehouse that did not work properly. Management of the organisation often fails to make informed decisions that can add value to the organisation. Their decision to invest in Ocado online store has also been considered an overpaid business deal but this deal has helped in improving their online position. The partnership with Ocado has cost more than £750 million but allows them to sell their product directly to the diverse range customers that help in increasing the level of customer engagement within the organisation (Theguardian.com, 2021). In addition to that, the existing store of the organisation required extensive renovation to increase the customer association. The departmental store of Mark and Spencer has failed to deliver an enjoyable experience to their customers as opposed to the innovative stores of the main rivals of Mark and Spencer.
Involvement of strategic thinking to improve the present performance of Mark and Spencer
Mark and Spencer need to evolve their present operational strategy to strengthen their present market position and gain competitive advantages over the competitors. It is important for the organisation to point out the factors that develop issues within their organisation. One of such issues is the effective involvement of online strategy. The organisation is required to develop an effective online strategy to enhance their sales rate in upcoming years. Due to the outbreak of Covid-19 pandemic, most of the retail organisation has opted out form e-commerce strategy that allows them to serve their intended customers during the time of lockdown. Mark and Spencer need to include all their products in their online stores that reflect the variety of products and increase the level of customer engagement. On the other hand, inclusion of automation technology will also ensure the protection of their customers in their departmental stores as it will limit the interaction with employees and enhance the shopping experience. Most of the retail stores have already included automation technology in their stores such as Tesco, Wal-Mart, Zara and H & M that increase the customer retention level. Implementation of strategic thinking strategy will enable the organisation to introduce changes within their operation without creating conflicts between employees (Partidário, 2021). Mark and Spencer need to improve their existing communication process and introduce a two way communication process that will eventually allow their employees and customers to share their opinion and allow the organisation to act as per the demand of the market.
From the aforementioned study, it can be concluded that it is essential for an organisation to improve their strategic thinking to eradicate risks from their operations as it can impact on their performance level. M & S is a reputed retail store in the UK currently undergoing operational issues that directly influence their market position. It is essential for the organisation to recognise the potential issues that impact on their performance level and involve proper strategies to improve the business outcome. However, it is essential for the organisation to communicate with their employees before implementing any changes within the operation to minimise the risk of conflict occurrence. ?
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