How a business format and structure helps it to achieve its main purpose
Businesses are organised structurally to achieve their main purpose, which for high street retailers is selling clothing and accessories to their target audience. All retailers provide different services to their customers. Different retailers work differently as some work strictly online and some just in a store. However some companies work both online and in store. The aims of all businesses is to turn a profit, whether it be through goods or a service.
There are hierarchies in all businesses and each have clear levels of responsibilities for the employees at each level. Employees are responsible for the people immediately below them, for example a supermarket will have different people in charge of different sectors; it is the person in charge of say, the fruit and veg isles, to organise their workers into completing their jobs efficiently and effectively.
In a tall structure there are multiple layers, a disadvantage of this is that the hierarchy will then be inflexible which can cause friction between workers at different levels. Another disadvantage of a tall structure is that decisions will take longer as they have to be communicated to the top of the structural chart, processed and then communicated back down to the employees.
All Saints and Asos both have a tall structures in their business’ meaning management is high up the hierarchy chain of command. This enables information to flow through employees and have the information transferred efficiently. In a tall structure there is a long chain of demand, this shows a clear line of communication. The decisions in the business pass through various layers of management, so the staff can move up to a different position.
En-Route