There are different types of organisational structure within a business; functional, geographic, product, type of customer, so the type of structure for this retailer is structured around is product. For fashion retailers typical departments would be; buying, merchandising, sales, human resources, customer service etc. The businesses main purpose is to sell product and obtain profit.
Boohoo has a tall organisational structure which means that there is a long chain of command. The span of control in a tall organisation is usually quite narrow. Decisions pass down through several layers of management, the people at the top of the organisation will set objectives and cascade them down to their subordinates. Our mission is to ‘stay on trend, make profits and demolish the view of being cheap and tacky’. The objectives set to help the process of achieving this is to prioritise new international market opportunities based on key criteria including market size, existing competitive environment and spending on the fashion and delivery infrastructure. Another way this goal will be achieved is through ‘the discipline of controlled growth, which has been promoted by the management team, with several initiatives designed to improve efficiency and productivity whilst monitoring cast’.
House of Fraser also has a tall organisational structure, with same types of departments as Boohoo. Their mission statement is to ‘be the premium department store of choice and make every customer feel like a VIP’. They say ‘vision and values along with the strategic pillars sets the scene for how we operate throughout the organisation to ensure we make every customer feel like a VIP and maximise every opportunity’. Their main aim is to please customers. This means that in the long run the business will retain lots of loyal customers and maximise their profits.
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