Management :: Business Management

ManagementPast organise mark and Spencer used to be bodily structured under a practicable or U-Form design which works by breaking the company into departments homogeneous operations, marketing, finance, human resources, and research and development. This design works well with smaller companies just with bigger companies there is too much information for the top passenger vehicle to handle and deal with. This is exactly what happened to tag and Spencer. In 1991, Sir Richard Greenbury took over Marks and Spencer for sevener years and structured the company to fit the Functional design. He made the company very aristocratical and rigid where by flip office knows best (The Economist). This created an atmosphere where by the company focused on their products instead of focusing on their customers. Although Marks and Spencer grew and made huge wampum within this time, in 1998 their profits fell very quickly and sharply. Marks and Spencer closed a chain of stores which they owned in Canada and rumours were spreading that they would alike close two chains of stores which they owned in the United States. The combination of Marks and Spencers quick expansions and the aristocratic rule had definite megascopic implications on Marks and Spencers well-being. The combination of Marks and Spencers aristocratic rule and structure just couldnt handle everything that was going on. some other one of Marks and Spencers weaknesses stemmed from their heavy reliance on inside promotions. The company would hire college students and have them work their way up the ladder. Very rarely did the company hire outside candidate for ranking(prenominal) positions. This prevented outside innovations from coming into the organisation. Reformed StructureIn 1998 Marks and Spencer needed to do something drastic because it was losing out on its market share and their temper was going down the tubes. The company decided it was time to restructure. The new structure of M arks and Spencer would be more like the Conglomerate or H-Form design. In this design the organisation is set up basically as a holding company comprised of unrelated products. The new Marks and Spencer would have seven different business units womens swear, mens wear, lingerie, childrens wear, food, beauty, and home. This would render the company to create a more flexible structure which could do to the fast changing environment. This flexible structure would give autonomy to psyche business units helping them tailor to their customers better.