The notion of capital

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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...