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The Notion Of Capital Essay

588 words - 2 pages

Can`t find essay here? Order custom written term paper. We offer highquality and quick writing for only $12.95 per page!Management Past Structure Marks and Spencer used to be structured undera Functional or U-Form design which works by breaking the company intodepartments like operations, marketing, finance, human resources, andresearch and development. This design works well with smaller companiesbut with bigger companies there is too much information for the topmanager to handle and deal with. This is exactly what happened to Marksand Spencer. In 1991, Sir Richard Greenbury took over Marks and Spencerfor seven years and structured the company to fit the Functional design.He made the company very aristocratic and rigid where by ?Head officeknows best? (The Economist). This created an atmosphere where by thecompany focused on their products instead of focusing on theircustomers. Although Marks and Spencer grew and made huge profits withinthis time, in 1998 their profits fell very quickly and sharply. Marksand Spencer closed a chain of stores which they owned in Canada andrumours were spreading that they would also close two chains of storeswhich they owned in the United States. The combination of Marks andSpencer?s quick expansions and the aristocratic rule had definitevisible implications on Marks and Spencer?s well-being. The combinationof Marks and Spencer?s aristocratic rule and structure just couldn?thandle everything that was going on. Another one of Marks and Spencer?sweaknesses stemmed from their heavy reliance on inside promotions. Thecompany would hire college students and have them work their way up theladder. Very rarely did the company hire outside candidate for seniorpositions. This prevented outside innovations from coming into theorganisation. Reformed Structure In 1998 Marks and Spencer needed to dosomething drastic because it was losing out on its market share andtheir reputation was going down the tubes. The company decided it wastime to...

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