MMP_4_MAO Management and Organizations

Assignment Sample MMP_4_MAO Management and Organizations


This present report will be analysing the case study of fashion, which is dealing as a fashion retailer with 30 stores across the UK and employed around 500 personnel. Although the company has a strong position in the offline market; however, it failed to attain success during the pandemic, as FashionCo does not yet have an online shopping medium available in the operation. Thus, considering the scenario of the pandemic and lockdowns the report will therefore analyze which of the three developments will be most appropriate for the company to overcome any form of uncertainty in the future. These three developments include expansion through the online market, expansion to the European market, and adoption of a hybrid model working. Thus, further in the report analysis will be made considering the PESTLE framework where the external market structure of all the three European countries France, Germany, and Italy will be determined. Even, the report will also highlight facts that would relatively advise them on a type of structure and culture they might adopt. And finally, the report will suggest FashionCo the advantages of a positive psychological contract that can boost employee motivation and productivity.

Question 1

The company has decided to expand and diversify its business operations into foreign markets including Germany France and Italy. Based on this the following section would reflect an external market analysis helping to understand the current position of these markets as well as how effectively the company can expand into these markets.

  1. Germany
Factors Implication
Political ●      Globally ranked 9 for the Politically stable government (Usnews, 2020)http://MMP_4_MAO Management and Organizations

●      68.87 % political stability and absence of violence  (trading economics, 2020)http://MMP_4_MAO Management and Organizations

●      Supportive government

●      GDP of 2.71% (KPMG, 2022)http://MMP_4_MAO Management and Organizations

●      Strict laws and regulation

Table 1: PESTLE Analysis of Germany

  1. Italy
Factors Implication
Political ●      Politically stable

●      Support for foreign businesses

●      6.5% GDP growth (Tradingeconomics, 2022)http://MMP_4_MAO Management and Organizations

●      Increased government regulation of e-commerce

Table 2: PESTLE Analysis of Italy

  1. France
Factors Implication
Political ●      Political instability due to change in government

●      Political support toward FDI

●      GDP growth of 7% (Tradingeconomics, 2022)http://MMP_4_MAO Management and Organizations

●      Strict political regulation in terms of e-commerce

Table 3: PESTLE Analysis of France

The above PESTEL analysis of the three countries, which include Germany, France, and Italy reflects that the external market environment of these countries is quite positive in terms of global expansion. Among all these three countries, the markets of Germany can be taken into consideration as the most prominent market where fashion can start with its expansion process (Renchen, 2020).http://MMP_4_MAO Management and Organizations The markets of Germany are not only stable but the political environment of the country also supports foreign businesses to operate without any restrictions. Apart from that, the consumers present in the markets of Germany are quite versatile in terms of their choices and preferences, which increase the opportunity for the company to expand its business operations (Stöcker et al. 2021).http://MMP_4_MAO Management and Organizations Alongside, the country also offers excellent technology that can be utilized by the company in terms of expanding and further developing their E-Commerce operations (Faschan et al. 2020).http://MMP_4_MAO Management and Organizations

Whereas considering the markets of Italy, it can be stated that the economic growth of the country has been quite promising after 2020 and the coronavirus pandemic. The organization has chosen Italy as a prominent market to expand and diversify its business. Hence, this can be stated as a wise decision considering the fact that the markets of Italy are not quite far from the home country (Harutyunyan, 2020).http://MMP_4_MAO Management and Organizations Moreover, the consumers present in the Italian market are also susceptible to changing fashion trends, which creates another opportunity for the organization to fill the gaps present in the fashion retail industry. However, the organization would also face strict competition from the existing fashion retail organizations that are already operating in The E-Commerce industry of Italy (Cooke et al. 2022). http://MMP_4_MAO Management and Organizations

Considering the markets of France, it can be stated that due to an expected change in the country’s government the political situation of the country might not be as stable as the other countries that have been assessed above. However, the political structure of the country is quite supportive of foreign direct investment and always encourages companies to operate in the markets of France (Giangirolamo, 2021). http://MMP_4_MAO Management and Organizations Moreover, the GDP of the country, which has reached a rate of 7% in terms of growth, has been the highest in the last few decades (Tradingeconomics, 2022).http://MMP_4_MAO Management and Organizations This reflect a promising economic market environment where the company can achieve exceptional growth and development. Apart from that, the consumer preferences in the markets of France are quite diverse and a large proportion of the consumers are quite avid in terms of fashion retail. Therefore, it can be stated that the demand for fashion retail in the country is marginally high, and starting an e-commerce business in the country can lead to profitable outcomes with supportive market communication strategies (Wachenfeldt, 2018).http://MMP_4_MAO Management and Organizations France can be considered the fashion capital of Europe and in this regard, the competition against the organization also increases were major fashion retail brands also competitively and quite aggressively operate. If the organization starts operating in the markets of France it would be quite essential to adopt aggressive market communication strategies which can help the company to achieve consumer awareness and brand recognition in the market (Dubé-Senécal, 2021).http://MMP_4_MAO Management and Organizations

Hence, based on the analysis of these three foreign markets it can be stated that Germany would be the most profitable market due to its supportive political and technological environment followed by Italy and then France. It would be more effective for the organization if the expansion process is done one step after the other so that the company does not have to worry about a lack of resources since expanding into 3 foreign markets at the same time would require a considerable amount of financial and non-financial resources.

Question 2

Since the organization is willing to diversify its business operations and achieve growth in the market, it would be essential to make changes to its existing organizational culture. These changes can be done with the help of making changes to the organizational structure or culture as well as the current leadership style.

Hybrid organizational structure

MMP_4_MAO Management and Organizations Assignment Sample

Figure 1: Hybrid organizational structure

(Source: Adopted from the ideas of Magistretti et al. 2019)

After the pandemic in 2020, it has been seen that several organizations have adopted a hybrid organizational culture where a certain proportion of the workforce works remotely. This strategy can be effectively utilized by the company and can be implemented in order to achieve better flexibility and higher productivity (Magistretti et al. 2019). http://MMP_4_MAO Management and OrganizationsOther than this, operating with hybrid organizational culture would also allow the company to maintain and retain its existing workforce. Additionally, utilizing a hybrid working culture also allows the company to minimize its overhead cost and operational cost that arise due to maintaining working premises. Apart from that, it has also been seen that hybrid working culture also enhances the work-life balance of employees which further increases job satisfaction for the employees (Zeller, 2018).http://MMP_4_MAO Management and Organizations

Inclusive organizational culture

An inclusive organizational culture would also be essential for the company to adopt considering the fact that now the company would need to recruit international employees belonging to different cultures. Therefore, if an inclusive organizational culture is not adopted by the organization there can be internal conflicts that would not only harm productivity but would also lead to a negative reputation in the new markets (Jankelová et al. 2021). http://MMP_4_MAO Management and Organizations Apart from that, achieving an inclusive working culture would also allow the organization to have a diverse workforce where individuals equipped with different skills can collaborate and help the organization to achieve its goals and objectives in the newly established market operations. Additionally, an inclusive working culture would also allow the organization to maintain a balance between individuals having different skill sets which would also help in achieving better knowledge transfer (Valenzuela, 2020).http://MMP_4_MAO Management and Organizations

Transformational leadership style

MMP_4_MAO Management and Organizations Assignment Sample

Figure 2: Transformational leadership style

(Source: Adopted from the ideas of Alqatawenh, 2018)

In terms of leadership style, the organization can adopt a transformational leadership style throughout the various layers of management present within the company. Since the organization would be operating in a multicultural environment in a foreign country and transformational leadership would be more suited for the company’s expanded operations (Alqatawenh, 2018).http://MMP_4_MAO Management and Organizations Utilizing transformational leadership would also help the employees working in the lower management of the company to have better communication with the leaders. Moreover, with the use of transmission leadership, the leaders and managers of other companies would also maintain a constant line of communication helping them to understand the issues faced by the employees. Additionally, it has also been seen that are transformational leadership style allows the leaders to have a better grip over the employees which tends to be quite important in terms of initiating changes within the company (Busari et al. 2019).http://MMP_4_MAO Management and Organizations Other than this, adopting a transformational leadership style can help the organization eliminate any kind of internal conflict if it ever arises. Furthermore, transformational leadership within the company would also help in understanding the market culture based on which changes to the workforce and its mode of operations can be effectively initiated. Achieving an organization-wide, transformational leadership can also help in establishing regulations and policies within the workforce more effectively as employees attend to be more attentive to transformational leaders rather than autocratic leaders (Atan, and Mahmood, 2019).http://MMP_4_MAO Management and Organizations As a result, it can be stated that making changes to the leadership style organizational culture, and organization structure can have an overall positive impact on the company’s operation once it enters the foreign markets

Question 3

The concept of a psychological contract is an unwritten set of expectations that occurs between the employee and the employer (Soares and Mosquera, 2019).http://MMP_4_MAO Management and Organizations It includes mutual beliefs, positive relationships, and informal agreements between the two parties. Based on the information provided in the case study, it can be suggested that the concept of psychological contract might help FashionCo to boost motivation and engagement with their employees for better performance. It can also help the organization maintain satisfaction and retention in the organization. Based on the study of Sandhya and Sulphey (2021) through a positive psychological contract FashionCo can create a transparent and smooth relationship between the employee and management that will further reduce the turnover rate.  Not only that but with the inclusion of the psychological contract overall company performance of fashion in the competitive market will increase and also engage their employees in the betterment of the company.

MMP_4_MAO Management and Organizations Assignment Sample

Figure 3: Psychological contract

(Source: Adopted from the ideas of Gordon, 2020)

As stated by Garg et al. (2018), satisfied workers are more likely to be engaged with their organization as compared with those not satisfied with their job. Employee engagement has a trickle-down positive impact on a firm that results in upgrading performance. As there is an increase in the motivation and satisfaction level among the employees, it will provide fashion with the ability to retain a stable workforce. It is often seen that whenever an employee pledges allegiance to the organization, the psychological contract between the two parties is crucial. Thus, it will result in increasing the loyalty level of both the employees and the employer to the organization, which will have major benefits for developing the better performance of the organization (Gordon, 2020).http://MMP_4_MAO Management and Organizations

As mentioned above, it can be seen that the concept of psychological contract helps the organization in enhancing employee motivation, satisfaction, and retention rate for better future development. It is important for fashion to adapt to the psychological contract concept, as it will enhance the performance level of its workforce. It is equally essential for the company to retain its employees over time as it will be needing loyal employees if it expands its business further in the new markets of Europe or online platforms. It has also been seen that the company is facing issues after the duration of the lockdown in the UK. Many of the employees had to work from their homes which made them demotivated and disengaged from their work. Hence, it is important for fashion to adapt to the psychological contract concept, as it will provide them with the ability to motivate their employees and sustain their growth (Schreuder et al. 2019).http://MMP_4_MAO Management and Organizations It will also help them to increase their satisfaction as well as the retention rate. It will benefit the company with a higher engagement rate of the employees towards the work.

Hence, resulting in an increase in the top performance of the employees will drive better talent for the company. Thus, employee satisfaction is an essential aspect of customer relationships, which relates to the satisfaction level of the consumers as well (Kurdi et al. 2020).http://MMP_4_MAO Management and Organizations, Therefore, a well satisfied and motivated employee will perform their best in building long-term relationships with their clients successfully. This results in a more engaged employee who is much more eager and motivated about their contacts with clients. They seek to build long-term, scalable relationships with clients that regard the POC (point-of-contact) as an extension of the company. Hence, it will benefit three major aspects of fashion, which are employee motivation, employee satisfaction, and employee retention rate of the company.

Hence based on the above analysis and evaluation of the psychological contract and its importance in the HRM it would be essential for the organization to consider the following requirements that would help to boost the motivation levels, job satisfaction, and retention rate in the company.

  • fashion needs to regularly take feedback from the employees regarding the working environment or any issues they are facing. this can help in reducing these issues thereby allowing the company to achieve a better job satisfaction rate
  • fashion also needs to provide incentives and bonuses to the employees for their hard work and any extra hours they have worked for the company. This can help in motivating the entire workforce thereby increasing the overall productivity.
  • The company also needs to increase the frequency of appraisals and this would allow creating opportunities for employees to attain growth in their careers. As a result, this would help the company to gain a higher employee retention rate.


Based on the fashion organization, this study focuses on the important developments that are influencing the fashion retailing business. Influencing elements such as politics, economics, social, technical, environmental, and legal aspects of FashionCo were included in the PESTEL analysis described above. The research has aided FashionCo in determining the type of structure and culture that the firm should use in order to improve its collaboration and teamwork management in order to achieve better results. As a result, the research proposes the notion of the psychological contract, together with its advantages and significance to fashion. The study outlines the advantages of psychological contracts and makes recommendations to the firm. As a result, it has taken into account factors such as employee motivation, satisfaction, and retention. It has mostly concentrated on the areas that would assist the firm in terms of improving its overall performance.


Alqatawenh, A.S., (2018). Transformational leadership style and its relationship with change management. Verslas: teorija ir praktika, 19(1), pp.17-24.

Atan, J.B. and Mahmood, N., (2019). The role of transformational leadership style in enhancing employees’ competency for organization performance. Management Science Letters, 9(13), pp.2191-2200.

Busari, A.H., Khan, S.N., Abdullah, S.M. and Mughal, Y.H., (2019). Transformational leadership style, followership, and factors of employees’ reactions towards organizational change. Journal of Asia Business Studies.

Cooke, P., Nunes, S., Oliva, S. and Lazzeretti, L., (2022). Open Innovation, Soft Branding, and Green Influencers: Critiquing ‘Fast Fashion and ‘Overtourism’. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), p.52.

Dubé-Senécal, V., (2021). Fashion, Industry and Diplomacy: Reframing Couture–Textile Relations in France, 1950s–1960s. Enterprise & Society, pp.1-25.

Faschan, M., Chailan, C. and Huaman-Ramirez, R., (2020). Emerging adults’ luxury fashion brand value perceptions: A cross-cultural comparison between Germany and China. Journal of Global Fashion Marketing, 11(3), pp.207-231.

Garg, K., Dar, I.A. and Mishra, M., (2018). Job satisfaction and work engagement: A study using private sector bank managers. Advances in Developing Human Resources20(1), pp.58-71.

Giangirolamo, D., (2021). The Race between Italy and France for the American Market in Fashion. ZoneModa Journal, 11(1S), pp.21-28.

Gordon, S., (2020). Organizational support versus supervisor support: The impact on hospitality managers’ psychological contract and work engagement. International Journal of Hospitality Management87, p.102374.


Jankelová, N., Skorková, Z., Joniaková, Z. and Némethová, I., (2021). A Diverse Organizational Culture and Its Impact on Innovative Work Behavior of Municipal Employees. Sustainability, 13(6), p.3419.

KPMG, (2022). Economic Key Facts Germany. [Online]. Available at: [Accessed on 12 April 2022]

Kurdi, B., Alshurideh, M. and Alnaser, A., (2020). The impact of employee satisfaction on customer satisfaction: Theoretical and empirical underpinning. Management Science Letters10(15), pp.3561-3570.

Magistretti, S., Trabucchi, D., Dell’Era, C. and Buganza, T., (2019). A new path toward a hybrid model: insights from PwC’s Italian experience Centre. Research-Technology Management, 62(5), pp.30-37.

Renchen, K.D., (2020). Influencer Impact on Brand Awareness: A Mixed Method Survey in the German Fashion Segment. European Journal of Business Science and Technology, p.138.

Sandhya, S. and Sulphey, M.M., (2020). Influence of empowerment, psychological contract and employee engagement on voluntary turnover intentions. International Journal of Productivity and Performance Management, 70(2), pp. 325-349.

Schreuder, F., Schalk, R. and Batistič, S., (2019). Goal congruence in teams and performance: The role of (shared) psychological contract fulfilment. Journal of Management & Organization, pp.1-17.

Soares, M.E. and Mosquera, P., (2019). Fostering work engagement: The role of the psychological contract. Journal of Business Research101, pp.469-476.

Stöcker, B., Baier, D. and Brand, B.M., (2021). New insights in online fashion retail returns from a customers’ perspective and their dynamics. Journal of Business Economics, 91(8), pp.1149-1187.

tradingeconomics, (2020). Germany – Political Stability And Absence Of Violence/Terrorism: Percentile Rank. [Online]. Available at:,compiled%20from%20officially%20recognized%20sources. [Accessed on 12 April 2022]

Tradingeconomics, (2022). France GDP Growth Rate. [Online]. Available at:,8.9%20percent%20contraction%20in%202020. [Accessed on 12 April 2022]

Tradingeconomics, (2022). Italy GDP Growth Rate. [Online]. Available at:,8.9%20percent%20contraction%20in%202020. [Accessed on 12 April 2022]

Usnews, (2020). 10 Most Politically Stable Countries, Ranked by Perception. [Online]. Available at:,compiled%20from%20officially%20recognized%20sources. [Accessed on 12 April 2022]

Valenzuela, C., (2020). Intercultural organizational communication and international employee engagement: how prepared are Finnish organizations for culturally diverse workforce?.

Wachenfeldt, P.V., (2018). The myth of luxury in a fashion world. Fashion, Style & Popular Culture, 5(3), pp.313-328.

Zeller, D., (2018). Organizational design: The hybrid (combined virtual/traditional office) organization. From doi. org/10.5281/zenodo, 1306781.

Know About More Services:-

Leave a Comment