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Management Past Structure Marks and Spencer used to be structured under
a Functional or U-Form design which works by breaking the company 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 too much information for the top
manager to handle and deal with. This is exactly what happened to Marks
and Spencer. In 1991, Sir Richard Greenbury took over Marks and Spencer
for seven years and structured the company to fit the Functional design.
He made the company very aristocratic and rigid where by ?Head 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 profits within
this time, in 1998 their profits fell very quickly and sharply.
and Spencer closed a chain of stores which they owned in Canada and
rumours were spreading that they would also close two chains of stores
which they owned in the United States. The combination of Marks and
Spencer?s quick expansions and the aristocratic rule had definite
visible implications on Marks and Spencer?s well-being. The combination
of Marks and Spencer?s aristocratic rule and structure just couldn?t
handle everything that was going on. Another one of Marks and Spencer?s
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 senior
positions. This prevented outside innovations from coming into the
organisation. Reformed Structure In 1998 Marks and Spencer needed to...