Assessment 2: Innovation Audit of M&S
Table of Contents
1. Introduction 3
2. Innovation 3
3. Framework 4
4. Process and Operations 4
5. HR and Skills 5
6. Organisational Structure and Leadership 6
7. Competitive Strategy 7
8. Internal capability pertaining to innovation 7
9. Factor that affect New Product Development Framework. 8
10. Product Related Factors 9
10.1 Technologically Advanced 9
10.1.1 Technology usage in products of M&S 9
10. 2 Relative Price 9
10.2.1. Relative price for M&S products 9
11. Market Related Factors 9
11.1. Marketing 9
11.1.1. Marketing strategy by Marks and Spencers 9
11.2. Timing of market entry 10
11.2.1. Market entry timing by Marks and Spencer 10
12 Critical Success Factors and Issues in relation to M&S 10
13. Gap Analysis 11
14. Strength and Weakness 11
15. Recommendation 12
16. Conclusion 12
References 13
1. Introduction
Innovation has increasingly been considered as the key competency that must be developed. Organizations use the innovative audit for assessing presence performance in terms of innovativeness with the desire or past performance. This paper aims at developing a framework as well as using this for conducting an innovation audit over an organizational choice. Hence, the innovation process adopted by Marks and Spencer’s is aimed to be discussed in this paper. Moreover, framework would be adapted for demonstrating the innovation process in a more concise manner. On the other hand, the processes and operations associated with the product innovation strategies would be demonstrated this this paper. Moreover, this report also demonstrates the human resource management system of this organization along with the HRM skills of this company. Moreover, the organizational strategy and leadership have been portrayed along with enlightening the competitive strategy considered by this company. In addition, internal capability is also mentioned pertaining to innovation along with identifying factors affecting the framework of new product development. Apart from that, the critical success factors for this company would be demonstrated along with portraying the issues in relation to the company through identifying strength and weaknesses of the company and conducting a thorough gap analysis.
2. Innovation
Innovation in businesses is simply referred to the process of the organization in order to introduce products, services, methodologies, workflows or new ideas. Innovation in business aims at improvising the existing processes, services or products (Nambisan et al., 2017). Hence, in case of Marks and Spencer’s, this organization aims at improvising the existing business products of this organization in terms of bring innovativeness. The key sustainable product ranges of this company are long lasting toothbrush with detachable brush head, solar phone charger, recycled fabric cloth as well as eco-friendly kettle (Marks & Spencer’s, 2020). Innovation would be done in such a way that clothes made up of with the organic materials would be skin-friendly as well as these clothes can be recycled very easily. On the other hand, the long lasting tooth brushes would be very innovative as it would be made out of bamboo and it would help to clean teeth in a gentler process as well as more efficiently than the other alternatives types present in the marketplace. In case of eco-friendly kettle, it would work on helping in setting itself apart through implementing a stylish design of kettle through permitting the users who are conscious about environment for play a key role to protect and preserve the environment.
3. Framework
Fig 1: Innovation Framework
(Source: Created by the Author)
The above portrayed diagram is the framework of the adoption of innovation by Marks and Spencer’s. The diagram interprets the innovation framework as the cyclic process which simply the four basic operations and processes associated with the innovation. Moreover, all these operations such as product development, scientific exploration, market transition and technological research forms a cyclic connection with the entrepreneurship goals and objectives of this company as a whole. four inner cycles have been made with the entrepreneurship such as the natural cycle, integrated engineering cycle, differentiated service cycle and along with the social behavioural service cycle.
4. Process and Operations
Product innovation of Marks and Spencer’s can be accomplished based on the four process or operations such as product creation, technological research, market transition and scientific exploration.
Product creation – creation of product would emphasize the front end of the process of innovation where the individuals would think regarding the establishment of their own businesses and where Marks and Spencer’s would begin the improvisations on their four types of existing products (Marks & Spencer’s, 2020).
Technological research – this particular process or operation would deal with conducting and apply thorough research based on the technical guidelines (Berry & Berry, 2018). Most importantly, this particular process would develop the key tools along with the efficient test equipment and processes so that Marks and Spencer’s can easily provide with thye solutions to a specific technical issue encountered during developing innovation.
Scientific exploration – the scientific factors should be explored more while making a successful innovation on products. It would conduct a thorough investigation on the features of the latest scientific discoveries regareding the domain of innovation is being followed by Marks and Spencer’s.
Market transition – in the context of innovation, this process simply helps Marks and Spencer’s in having a major shift within a specific space of market, which would change dramatically the competitive scenario of this organization.
5. HR and Skills
the Human Resource system of Marks and Spencer’s has significantly helped this organization by managing the work activities that should be accomplished by several departments as well as people as well. This organization also follow some key skills based on the concept of HRM, which are as follows:
Records Management – The HR teams of this company work on managing documents and information such as the agreements of employment in the digital as well as the physical forms.
Calendar Management – the HR professionals should squeeze in another key tasks in between the meetings with the executives as well as colleagues such as implementing training and development programs for the employees along with the organization of the events of the company (Armstrong & Taylor, 2020). the skills of managing good calendar can help the busy HR teams in staying productive.
Time Management – Management of the insurance and payroll plans as well as drawing up the employment contracts are the tasks that are quite time sensitive. the teams of HR have the responsibility to meet deadlines as well as comply with the regulations (Chillas and Baluch, 2019).
6. Organisational Structure and Leadership
Fig 2: Organizational Structure
(Source: Marks & Spencer’s, 2020)
The leadership of Marks and Spencer’s took the initiative of “Lead to Success”. This organization is heralding this initiative as the program of flagship development and it has been taking into consideration as the key component within the future strategy for managing people. Marks and Spencer’s use the transactional leadership style as the major style of leading people (Leadership, 2020). With the help of the adoption of this particular leadership style, current CEO of Marks and Spencer’s, Marc Boland has committed towards the achievement of the goal of the organization through assuring the high performance are being maintained on a continuous basis by its teams at every level of the hierarchy structure. This strategy suits this business as here every employee is dedicated towards a demonstrated routine tasks and influencing people with providing a reward system.
7. Competitive Strategy
The use of the competitive strategy for any organisation is considered to be important to set them apart from the other competitors in the market. The selection of the right competitive strategy can be done through the use of the Porter’s generic strategic framework. As per this framework, the company has four type of strategies to consider i. e cost leadership, cost focus, differentiation and differentiation focus.
Figure: Porter’s generic strategies for M&S
| Low Cost | Product Uniqueness | |
| Broad | Cost Leadership | Differentiation Strategy |
| Narrow | Focus Strategy | Focus Strategy |
(Source: Linton and Kask, 2017)
Markers and Spencer to enter the market with their innovative product is going to opt for differentiation strategy (Linton and Kask, 2017). In this type of strategy, the product is going to made differently or more attractive that another in the sector so that maximum competitive advantage could be achieved. M&S is going to target the larger market and would be carried out in a large scale. While considering the design of the product, the consumers are going to be considered and will be able to orient themselves to meet those criteria. A differentiation strategy led firm like M&S is going to mee strong innovation, superior quality of product, recognisable branding and wide ranged distribution channel.
8. Internal capability pertaining to innovation
Superior capabilities and the resources are considered to be important factors that helps develop the competitive advantage. The absence of the factors will imply that the competitors are going to develop a better product with less price. M&S has been reigning in the retail market in the UK for a long period of time and has been spending a lot of money on the supply chain technology (Marks and Spencer, 2012.). M&S has also been found to upgrade its ordering system and uses the single form of integrated system across all the channels in the store. Even M&S has won the innovation in the energy efficiency awards 2005 in the development of the cohesive remote integrated energy management system. The combination of the capabilities and the resources result in the distinctive competencies which has in turn activate the quality, efficiency, innovation and awareness of the customer. These are the attributes that are found to act as the catalyst so that it is able to attain the status of differentiation or cost.
9. Factor that affect New Product Development Framework.
The new product development framework is considered to be important as this helps in understanding the factors that has an impact on the successful marketable of the products. For ensuring that the product reaches the market successfully, it is important that there lie commercial and technological viabilities (Mirtalaie, et al., 2017.). From the context of the technological viability, it is important to understand project related and the firm related factors, while from the commercial viability context, it is important to know about the market related and product related factors.
10. Product Related Factors
10.1 Technologically Advanced
10.1.1 Technology usage in products of M&S
M&S has ensured that technology and innovation as a part of their development. This is the reason that has made it take the initiative of announcing a technology transformation programme. This program was delivered so that it helped in providing improved customer experience (Mirtalaie, et al., 2017). The use of technology in the products has led the company to sell a greater number of products as these tend to satisfy the customers (Marks and Spencer, 2018.). The use of the agile method in the production helps in making it easier to develop a greater number of products ensuring that it is up to the standard and quality
10. 2 Relative Price
10.2.1. Relative price for M&S products
M&S has been operating in the market as a leading retailer because of the uniqueness of the price of the products. The products under its product line and also the other branded products are reasonably priced i.e. it is priced at competitive rate so that all the customers are able to purchase the product. The price that M&S follows is almost same as its competitors like Tesco and Sainsbury.
11. Market Related Factors
11.1. Marketing
11.1.1. Marketing strategy by Marks and Spencers
The marketing strategy adopted by M&S is considered to be important as this is going to help in ascertaining as whether the entry with the new product is going to be successful. One of the important tools that is going to be adopted for the marketing of the new product is the use of the social media. The application of this marketing technique is going to help in successfully reaching the new product to the consumers (Mirtalaie, et al., 2017). This medium is an excellent way of understanding the number of conversions that are made in relation to the product sold online. Developing the recommendation system is also an important way of attracting the new customers. There more people recommending the product there will be more new customers purchasing the product. Apart from social media, the other forms of marketing that are going to be applied includes the magazine publications, television and newspaper.
11.2. Timing of market entry
11.2.1. Market entry timing by Marks and Spencer
The timing is said to play a very important role while making an entry in the market with a new product. It is important that M&S be able to take the chance of ensuring right timing for marketing the product. The product being targeted towards a specific type of audience should be targeted when they are active. Even advertisements on the products on TV should be restricted to a definite to when there are a number of people watching it.
12 Critical Success Factors and Issues in relation to M&S
In the retail sector, M&S has been found to be successful for a number of reasons. Firstly, in terms of the understanding of the market the company has been able to develop a brand image and provided the specific image to the consumers. Even their market strategy has not been found to be much deviated from the focused. They also have not focused the consumers with the competing brands (Coad and Pritchard, 2017). The second factor, that has led to success was the proactive approach to the human resources in the UK as there are a number of employees in their M&S stores. Also, there are chances that future employees and the customers are quite ware of the current employees’ dedication in catering to their customers (Fakhimi, Stergioulas,. and Mustafee, 2017). Lastly, the company is also found to understand the customer through providing them with the value for the prices the charged rather than concentrating on the price they are charged. The company assures that the quality of the products remains the same all over the store without even having to make any form of deviation. Even a considerable control has also been taken up on their suppliers.
There are a number of innovative and successful factors that has helped M&S to sustain its position at the top of the retail market. However, there are certain issues that are also found to have a serious impact on the operation of M&S. Relationship of the company with their suppliers sometimes has been found to turnout to be quite difficult. With a large base of customers would imply that there will be higher dictating of the conditions but this dictate arising from the other customers then this is considered to be not acceptable. Since the market is turning out to be highly competitive, M&S ensures that it constantly innovates and develops the products that cater the needs of the customers. The share of profitability is also another factor that is greatly is found to be affected as the number of competitor brands are found to increase gradually.
13. Gap Analysis
The use of gap analysis is going to help in making the comparison of the actual performance with that of the desired performance. It implies that it sees that current state and desired state at a single glance. Gap analysis help in understanding as what is going to be needed to be done so that the future goal is achieved.
M&S is going to take the initiative of coming up with a new system so that it is able to manage the supply. It is going to take the initiative of introducing the software so that it helps in reducing the amount of time that is brought in the new market and this is going to help in increasing the imports and expands the product selection. M&S has been found to use myriad levels implementation of strategies. Presently, there has not been much innovative product developed and it is expected that M&S is going to take the initiative of reducing this gap. The gap analysis is going to help in developing more realistic goals and help in assessing the requirements that are needed for reducing the gap from where it is now and where it actually wants to move. For reducing the gap there is a need for resources. This is going to helps in reducing the gap with expansion and launching of the new products to attract the customers.
14. Strength and Weakness
Strength
1. For new product development, M&S has involved in the diversification of the products. The good cash flow of the company has shown that it has a positive financial position.
2. Highly skilled workforce who has the innovative ideas in making the new products.
3. A hierarchical organisation structure is considered to be important in the development of a new innovative product (Coad and Pritchard, 2017).
4. Globalisation has been considered to be quite advantageous for the company as this has helped it to remain high in the international market.
Weakness
1. There are a number of competitors in the market and each of the firms are making it a point to ensure to innovate and develop innovative product to attract the customers.
2. The lack of stability in the price of the raw materials causes the cost of the product to fluctuate a great deal and this reduces then profit margin of the company.
3. M&S business has been more focused upon international expansion of the products and does not focus on entering the local market. As a result, any new product development is done for catering the global customers and not a specific customer.
15. Recommendation
The following are the aspect that needs to be kept in mind with respect to new product innovation or development.
1. M&S should consider in investing in to their research and development as that is one of the important ways of ensuring new products turn out to be successful.
2. Skilled workforce is going to help in crafting the new product that embodies all the unique properties.
3. Ensuring that quality raw materials are used for the development of the new product.
16. Conclusion
Through the overall analysis, it can be found that innovation is considered to be a very important aspect for a company to thrive in the competitive market. M&S is also ensuring that it invests more in research and development of the product so that it is able to sell their product successfully. Apart from innovation, product related factor and market related factors are considered important for NPD.
References
Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Berry, F. S., & Berry, W. D. (2018). Innovation and Diusion Models in Policy Research. In Theories of the policy process (pp. 263-308). Routledge.
Chillas, S. & Baluch, A. (2019). Cracking labour process theory in employment relations and HRM. In Elgar Introduction to Theories of Human Resources and Employment Relations. Edward Elgar Publishing.
Coad, N. & Pritchard, P., 2017. Leading sustainable innovation. Routledge.
Fakhimi, M., Stergioulas, L.K. & Mustafee, N., (2017). Modelling for sustainable development using the triple-bottom line: Methods, challenges and the need for hybrid M&S. In 2017 Winter Simulation Conference (WSC) (pp. 632-643). IEEE.
Leadership. (2020). Retrieved 14 April 2020, from https://corporate.marksandspencer.com/aboutus/our-leadership-team
Linton, G. & Kask, J., (2017). Configurations of entrepreneurial orientation and competitive strategy for high performance. Journal of Business Research, 70, pp.168-176.
Marks & Spencer. (2020). Retrieved 14 April 2020, from https://www.marksandspencer.com/
Marks & Spencer (2012). Key lesson from the plan A business case. Retrieved from <https://corporate.marksandspencer.com/documents/plan-a-our-approach/key-lessons-from-the-plana-business-case-september2012.pdf>
Marks & Spencer (2018). Marks & spencer announces technology transformation programme. Retrieved from https://corporate.marksandspencer.com/media/press-releases/2018/marks-and-spencer-announces-technology-transformation-programme>
Mirtalaie, M.A., Hussain, O.K., Chang, E. & Hussain, F.K., (2017). A decision support framework for identifying novel ideas in new product development from cross-domain analysis. Information Systems, 69, pp.59-80.
Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital Innovation Management: Reinventing innovation management research in a digital world. Mis Quarterly, 4
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