troduction Lewis Jeans has been operating as a manufacturer of jeans for ten years, and is currently one of the UK’s leading manufacturers. 300 employees are divided over 3 geographic areas, with the head office in Croydon.
Due to an array of contributory factors, there has been a downturn in sales and profits over the previous 12 month period.
Sales – 20% reduction
Profit – 40% reduction
Returns due to quality issues – 15%
These figures, coupled with a worrying turnover of staff, and high manufacturing costs have ensured that a fundamental review of the whole structure of the company is necessary to halt further degeneration, and to allow the company to re-establish itself as a market leader.
This report will investigate the following areas:
Organisational and Managerial Structure
Each of these areas will be considered within the Lewis Jeans framework and formal advice will be given covering: Inherent strengths and weaknesses within Lewis Jeans. Recommendations for improvement.
Organisational and Managerial Structures made.organizational change management software
“An organisation is a system, having an established structure and conscious planning, in which people work and deal with one another in a coordinated and cooperative manner for the accomplishment of recognised tasks”
The above paragraph is a typical definition of what makes an organisation. The type of structure will influence everything about the organisation, including the relationships between individuals, who is empowered within the authority to make decisions, and how information is communicated throughout the organisation. Getting the correct structure in place to suit the objectives of the organisation, and the aspirations of its staff is imperative if the business is to flourish.
Lewis Jeans currently operates with a geographical structure. Three manufacturing facilities are located in the Northern, Central, and Southern areas of the United Kingdom. This geographic grouping of functions can be a viable option for some organisations, Tesco PLC being a prime example. Tesco needs retail outlets in most towns to allow it’s customers to purchase the goods it offers.
The geographical structure can have a number of distinct advantages: Responding quickly to local needs and issues, allowing the organisation to become more sensitive to customer and employee needs. Bureaucratic ‘red tape’ can be reduced if each division is empowered with more decision making authority. There is a greater ability to tailor operations to local differences, such as language, law etc.
However, there can also be significant disadvantages: The duplication of facilities and roles. Additional management positions are required. Lack of unity in objectives and direction of semi-autonomous units