Business Structures & Achieving Purpose
, Boohoo is a large Public Limited Company and follow a pyramid structure, lead by our CEO. Aims or SMART objectives can be set by the leader who passes on tasks down this structure. For example Kamani will set profit margins for each
"employees are motivated to work, as there’s always opportunity for promotion"
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department to ensure that they can create garments with ‘cutting-edge design with an affordable price tag’, which is featured in their mission statement. We’re a large company and operate a tall structure, meaning it can take
longer to make decisions as we have many layers, however our spans of control are small. This amount of layers means that employees are motivated to work, as there’s always opportunity for promotion.
We only function from one location in Manchester. As a women and men’s retailer we divide these into smaller departments to ensure that all product bought by the buyers and merchandisers
is as appropriate. This divide of departments is helping us to achieve our goals; for example we’re aiming to expand our menswear range and therefore by splitting menswear into sub sections we can focus on each garment more closely, which in essence will mean our ranges are more appropriate. Different departments for finance, HR, sales, admin and marketing are set up to help us achieve the best possible sales. John Lewis also operates their different departments in this way. As BooHoo continues to grow our directors want to make sure that we recruit the right number of people and the right type of person. This is why having a HR department is essential to our success.
John Lewis is a co-operative and has a tall and
complex structure. One of John Lewis’ aims is to ensure they reach their market potential and gain customers wherever possible so employees need to be able to move quickly and focus on future trends.
A key feature of John Lewis’ mission statement is 'the happiness of all our members, through their worthwhile, satisfying employment in a successful business'. In order to achieve this John Lewis gives each employee a share in the company. Meaning each member has an invested interest in the company and will more
likely perform their job to a higher standard so that they too receive the positive benefits of profit.
They’re also aware that the more complex their structure the more costly it is, so another of their aims is to ensure they utilise their current employees and only pursue vital tasks.
All in all BooHoo and John Lewis strive to make profits and without profits they would have no purpose.
They both need to ensure that they have the best organisational structure set up to ensure they can retain and gain vital customers which in essence produce these profits.