ORGANISATIONAL MANAGAEMENT Introduction
Task allocation, coordination and supervision and all such activities which are essential for growth of a company all such tasks come under organisational management. To further expand this term we take a practical example of a company. Here we take Marks and spencer, one of the largest retailer of UK. This assignment goes through companies planning and executive to have a better understanding of the topic. .As required SWOT & PEST reports are also attached.
Headquarters: Waterside House,London
History and size of the organization:
A jew named Michael marks from slonim Russia entered into alliance with Tom spencer in 1851 with Spencer paying £300 for his 50% share. They opened their first stall in leeds market selling cheap items priced at a penny. By 1894marks was settled in Manchester and gradually opened stalls in several towns such as Birmingham London and Newcastle. However Manchester remained the headquarters.Initially the company specialized in clothing gradually expanding to home products and luxury food products.Recently their food sales increased after axing of St. Michael’s. As of today company consists of 1025 stores in UK and 424 stores worldwide.The company’s revenur is approximated about £10.6bn.The company hold stong market in e commerce in several companies such as newzealand .The Average Employee for each branch is nearly 85employees wit makority of male employees though company abides sex discrimination.The company had policy of selling only British made goods. They distributed their storesin formats such as Core shops, M&S foodhall Hispitality, Home Stores,Outlet stores,M&S Simply food and Online services.An annual turnout is about 60% for Food and 40% for clothings and home. 65% of the Stores of this company are in UK with remaining if several major countrues.
To achieve goals of a company several targets are to be achieved by combined effort of various resourcesand divixon of work and fragmenting all the activities. To attain such motto its important to have a proper organisational structure. M&S enhanced their business by having flatter organisational structure.TRhis has enabled te employees to take quick decisions according to the market and they are responsible for the decision they took.though flat type of structure is in pramid form it still has broader and flatter distribution which helps them in communicating with upper directorsand thus having rapid alteration and job solutions.the company believes in talent and abides the application of rejected candidates to bear competition.HR Manager, Functional area manager and other such executive position helps to combat the surge and decline in market.to overcome the heavy burden of HR they have streamlined the range of hr ctivity and removed admin tasks and invested more in modern machines.
After the establishment of a stall in Leeds by Michael marks and tom spencer, expansion happened in 1894 when marks moved to Manchester. He launched several stores in Warrington, Bolton, Birmingham Newcastle an 1899 in london. A limited company was formed in 1903 with £1 an ordinary share and £30,000companys worth. A slogan saying”don’t ask the price its just a penny” was always found in the stores.Simon marks took over company in 1910 with partner ship of his friend Israel Sieff. the company was converted into public company in 1926 to raise capital and further in 1929 abnd 1934 thus raising companys capital to £3.05million. world war saw a decline in companys performance.the board of directors release annual reports each year. During the 90’s company plunged into sudden slump because of its policy of supplying British goods and competitors started supplying cheap goods from countries. Its ahreholders included hundred and thousand sof small investors and nearly all of them were retail analyst and business journalist.
SWOT standing for strength weakness opportunities and weakness brings about the companies planning to achieve their target production and supply. PEST analysis includes political economic social and technological factors which helps in performance and survival of market by analysing and strategizing the environment for the company.
Strength:Strong quality products have always been the trademark of the company.customers always appreciated quality over quantity in matters of food and clothing.they always found fresh and healthy fruits and vegetables (Ciao, 2002).Global expansion to foreign market has reduced danger to the foreign market and strenghthened international market. This is the exact reason company managaed to rise after the steep fall in 90’s.They have enhanced customer service who are friendly and help in custom sekecetion of goods.Shop is arranged in such a way that through a single look u can view every product in store.
Weakness: the company has failed to hold strongly the ecommerece, non-performance of home delivery sometimes involves wedding lists making the customers to lose in the comoany .they even complained of defect in delivery of produts. clothing section of company has many segments especially ladies outwear is outm odded design and cut.however, the modern consumers prefers brand names.M&S legacy stores are of competitive disadvantage.
Opportunities: Online market continues to rise exponentially globally and can give rise to revenues. Their strong brand equity and high quality perception will help them place a premium pricing. The company can increase manifold by coming into partnership in countries such as developing countries. Heathy eating offers several opportunities, people pay attention to quality and segmentation such as low fat or organic food.
Threats: pension funds will result controlled availability in capital for operations and expansions. Increase in prices and VATs will results in less spending by the customers. Except the competitors company has threat of social environment. This changes the taste of persons lifestyle eating and dressing.
Political factors: Marks & Spencers is based in UK which provides a stable way of living and its gob=vernment encourages capitalism.this company was accused of not abiding the standarsd set by government however it was not proved guilty.it was first company to achieve fair trade policy route.due to its strong hold in market new companies find diffivult to compete.The tax system in UK is most attractive with very low personal and corporate taxes.
Brexit will have significant implications.
Economic factors:Inflation GDP, interest rates and employment levels need a check by the company so that the strategies adopted encounter all such issues. Company needs to focus on youth as most of their earning focuses on lifestyle. Brexit will result in rise of products prices thus conflict with small retailers.
Social Factors:The selection of products by consumer changes according to the fashion trends and market sense. Understanding these things are crucial to remain a leading company.Donating in charities and creating awareness in current local roblems. Creating equal society by creating policies adaptable.