Management :: Business Management

ManagementPast StructureMarks and Spencer used to be unified under a Functional or U-Form public figure which deeds by breaking the party into departments like operations, marketing, finance, human resources, and research and development. This design works well with smaller companies but with bigger companies there is likewise much information for the top manager to handle and deal with. This is scarce what happened to Marks and Spencer. In 1991, Sir Richard Greenbury took over Marks and Spencer for seven years and structured the conjunction to fit the Functional design. He made the company rattling aristocratic and rigid where by Head office knows best (The Economist). This created an tune where by the company focused on their products instead of focusing on their customers. Although Marks and Spencer grew and made huge boodle within this time, in 1998 their profits fell very libertinely and sharply. Marks and Spencer closed a range of stores which they owned in Can ada and rumours were spreading that they would also close two durance of stores which they owned in the United States. The combination of Marks and Spencers quick expansions and the aristocratic rule had definite visible implications on Marks and Spencers well-being. The combination of Marks and Spencers aristocratic rule and structure comely couldnt handle everything that was going on. Another one of Marks and Spencers weaknesses stemmed from their heavy reliance on inside promotions. The company would take college students and have them work their way up the ladder. Very rarely did the company hire issueside candidate for senior positions. This prevented outside innovations from coming into the organisation. meliorate StructureIn 1998 Marks and Spencer needed to do something drastic because it was losing out on its market share and their reputation was going down the tubes. The company decided it was time to restructure. The new structure of Marks and Spencer would be to a greater extent like the Conglomerate or H-Form design. In this design the organisation is rear up basically as a holding company comprised of uncorrelated 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 allow the company to create a more tensile structure which could respond to the fast changing environment. This flexible structure would give autonomy to individual business units helping them custom-make to their customers better.