Proposed Change of Management Structure
Asos.com is at current a leading online fashion store for men and women, which is based in the UK and attracts an impressive 3.3 million shoppers every month. The site has a whopping 1.8 billion registered users and the group profits are probable to exceed £7 million. The company has achieved significant growth since its inception in 2000 and is surely on the path towards conquering the online fashion retailing market and attaining greater profits in the coming years. As a company progressively grows, it becomes essential for specific changes to take place within the organization. These changes are in relation to the management and organizational structure of a company and facilitate a straightforward and unproblematic expansion and development process. It is crucial that a functional and vastly efficient organizational arrangement is established in Asos.com as it allows the expressed allotment of tasks and responsibilities for the diverse roles and procedures for the dissimilar units and departments to be carried out effortlessly. Furthermore, it minimizes confusion and coordinates activities professionally. The existing organizational structure of Asos.com consists of a board of two non-executive directors and three executive directors. Also, the business is a public limited company quoted in the ‘Alternative Investment Market’ (AIM) which is a part of the London Stock Exchange, from which the company receives additional funding for its growth and development.
As the company Asos.com expanded and grew, it began to adopt a hierarchical organizational s structure. This structure consists of individual departments taking on different responsibilities such as warehousing, product design and new product development. In addition Asos.com has a team of 30 customer service advisers who deal directly with customers by responding to their queries about stock requests, delivery status etc (via email) promptly within an hour. The company has achieved significant growth by facilitating an internal organic growth process. Asos.com basically acquired larger profits which facilitated the growth process by increasing their customer base and by increasing the range and quantity of products available for the purchase of the consumers. “asos.com has achieved rapid growth internally. It has not grown by acquiring other businesses. Instead, it has grown by increasing its customer base, number of brands and products available to buy at any one time” Additionally, the company’s shareholders made the decision of listing a certain percentage of shares in the alternative stock market. This wise decision proves to be more advantageous than issuing shares on the main stock market as Asos.com is not required to comply with the strict rules and regulations that must be followed by the company’s who are listed in the London stock exchange. This results in the online fashion company being able to obtain the necessary funds needed for expansion and growth without being burdened with the strict ruling and legal aspects of being a public quoted company. “ asos.com is a public limited company (plc). This means that the business is owned by shareholders and that its shares can be purchased by the general public. asos.com shares are traded on the Alternative Investment Market (AIM)” As the online fashion retailing company is expected to drive growth further, it needs to put in place a well thought-out system of organizational and management structure in order to ensure the smooth and efficient operation of day to day tasks whilst bettering their current system and overall being able to provide better service to their customers.
Body of answer
A proposed structure for organizational change should first of all contain a listing of organizational objectives as a planned structure for...
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