The Internal Organisation of Business
Marks and Spencers
Marks and Spencers is the first business I am going to write about in terms or organisational structure and strategic plans. Marks and Spencer is one of the best known high street retailers in the UK. It has over 450 stores and employs over 65,000 people. It also operates overseas. An organisational structure is the way the business is run, the way the workers are arranged in the business. They are in a hierarchy that is structured in layers. The lower down on the hierarchy you are the less authority you have. Recently Marks and Spencer have changed their structure to be more efficient. At first it was a tall structure but then recent changes have made it a flatter structure. This meant cutting out some layers of management and giving employees at the remaining levels more responsibility. The employees that are now managers are now in charge of a team of workers and their job is to motivate these workers.
Marks and Spencers have a flatter structure. However there are advantages and disadvantages of the flatter structure. Advantages would be faster commands between workers (less layers), easy communication because there is one manager leading a team, it is cheaper because there is less managerial positions, offers new employees the opportunity to learn new skills. Disadvantages would be there is more responsibility on one person as they have to manage more people, less creative ideas as there is only one person in charge and less opportunity of promotion as there isn’t as many higher roles. Functional Areas
Centralisation: The concentration of decision making and executive authority in top management and often within the organisation’s head office. Marks and Spencers use centralisation to make decisions about their company. The company is a PLC (public limited company) so this means when decisions are made they are made on more of a widespread scale and shareholders are involved. Decentralisation: Shifting decision making away from the organisational centre (top management and head office) towards the operating units such as local branches. Marks and Spencer’s have a typical flat structure way of making decisions. The decisions start from the top and eventually go down the ladder. Hierarchical Structure: An organisational structure arranged by levels of seniority with a chain of command down which decisions are passed. Marks and Spencer use organisational structures by levels of seniority, this is where different senior managers come together to make the right decisions on behalf of the company. Which are then passed down like decentralisation. Delegate: Passing authority down an organisational hierarchy while final responsibility remains at the top. Marks and Spencers pass down authority down an organisational hierarchy. Final responsibility remains at the top end of the company and so does decision making. Chain of command: the stages through which orders are passed down the levels in an organisational hierarchy. Marks and Spencers have different levels and the lower down on the ladder you are the less authority you have.
The Functional Areas of The Business
I am now writing about the main functional areas of the business Marks and Spencers. These are the following, Marketing, Human Resources, Customer Service and Finance. Marketing:
In the Marks and Spencers store they advertise new products; offers such as the buy one get one free initiative, let the customers know what they are may have missed out on, make their products seem more glamorous and more enticing. They make sure there is lots of new offers so customers are always looking to come to the shop. Ways of marketing in the stores could range from workers telling customers directly about offers to signs detailing the product. Advertising in the public eye could be T.V adverts, radio or magazines/ newspapers. This is very important for Marks and Spencers because it attracts...
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