Organisational Leadership and Management
1. Structure of the organisation with its improvements and appraising system
An assessment is required to be written on the critical exploration of leadership, management and drivers of change in a selected organisation. The organisation selected for this assessment is Primark, a fashion retail store based out of the United Kingdom, with its headquarters situated in London, UK. Primark uses a tall (or line) structure of hierarchy in order to effectively meet the demands of the customers (Voss et al. 2019). The company mainly restricts the power to take organisational decisions with the shareholders and does not allow participation of any third party in the decision-making process. The company management believes that such organisational structure helps to gain more control over the activities and financial operation of the organisation. However, there are different problems that Primark faces due to such organisational structure and financial control practices.
The problems faced by the company at an administrative level are the lack of effective communication among the organisation due to tall and layered organisational structure. Complications arise when there is misinterpretation of instructions at the mid-levels and lower levels of the organisations, resulting in development of inefficient products and services. Feedback is also not provided properly to the competent authority due to delays and gaps in communication. It has been found that the company mission and objectives are not clearly communicated to the employees responsible for production of the products being sold by the company. Ineffective or slow communication is often responsible for deterioration of the quantitative and qualitative aspect of the production in organisations such as Primark (Griffiths, 2019).
The workforce at Primark faces problems of unclear demarcation of job roles and responsibilities due to inefficient communication. It also fails to identify key strengths and weaknesses of the employees, thus slowing the process of adoption of innovation in the production and quality development phases. The leadership at Primark finds it difficult to manage the supervision of the business activities within the stipulated time and budget as the rate of production deviates from the planned stage. Employees of the company are not motivated enough in different areas of production and maintenance as they have minimal or negligible roles in the product development phases. According to Adamson et al. (2021), a common complaint from the employees at Primark is the difficulties at the workplace caused due to the non-democratic nature of the organisational management.
Political and Social drivers for service and quality improvements at Primark
The political factors such as Brexit and other global political developments influence the business of the companies in the fashion retail industry. Along with the influence of geo-political issues, business is also hampered due to picketing of employers by the employees unsatisfied with the management of the company. Primark tries to keep its record clean and attempts to develop approaches that are conducive to work for the employees. Though it has not been performing well, it tries to adopt methods that can increase employee engagement in the organisation (Karlsson et al. 2017). The company has achieved the growth so far due to its implementation of fair business policies as per the government regulations of the UK.
The social factors that affect the production and business of Primark is mainly related to the buying behaviour and preferences of the consumers. The company performs a thorough market survey in order to gain insights about the clothing demands of the customers. It takes into account the demographics, cultures, ethnicities of the customers while developing its products. Recent market trends in the clothing industry are always given more attention to increase customer engagement and customer satisfaction. According to Alzoubi and Ahmed (2019), different sorts of fittings and wearing styles are considered in product planning and Primark encourages customers to provide feedback that can be used in further product modification.
Primark mainly operates through its physical stores set up at different prime locations for convenience of buyers. It has a chain of stores that generate revenue for the organisation and requires a reliable supply chain management to meet the demands of the customers. However, the non-availability of certain materials for clothing is often a problem for Primark and its production department needs to use substitute materials in that case. It also faces severe competition from the other rivals in the fashion retail industry. The faster prediction of trends and subsequent massive production result in increase of revenue, thus effective product research still remains the most important area of the business for Primark (Alhabeeb and Rowley, 2018).
Further scope of improvement
Primark has enjoyed consistent growth during the past few years of business however challenges are appearing before the company after the Covid-19 pandemic situation. The company was forced to shut 190 stores in the United Kingdom due to government regulations regarding the pandemic (Lager and Hassan-Beck, 2021). As a result, sales figures dropped drastically and the company suffered great losses due to spreading of the virus. However, the situation could have been less bad if the company had an alternative option of selling its products online. Its competitors have already started selling their products with the help of digital medium and considerable rise in sales have been recorded lately.
The management at Primark has shown reluctance to involve in online business as they are expecting low return on investments in the long-term. The company has been continuing its existing business through delivery of products through posts and courier, often facing losses due to fraudulent activities. The assessment will propose ways to set up an online outlet for selling the products made by Primark in the digital medium. The inventory costs can be reduced in case of digital transactions and the company can be more profitable while selling apparels online. The company will also need to organise training and development programmes for its employees in order to boost their skill development and increase their motivation towards producing quality goods for the customers (Griffiths, 2019). The organisation needs to implement policies that are suitable for attracting talents, resulting in more innovative design and execution of the products.
2. Analysing the drivers for implementing the change that needs service improvements
Drivers of change
In this era of globalisation, digitisation is one of the crucial steps for bringing organisational success. Modern technologies such as AI and SMART shops have disrupted the workplace and created buzz among the retailers. International organisations are trying to use their financial assets to develop new innovative technologies and raise the operating performance of the firm. Primark is one of the top examples that have considered modern innovations and is trying to implement them. Currently the company does not have any digital presence and thus the management is trying to mitigate this issue and considering use of digital twins. Digital solutions such as social media marketing, pay-per-click, smart mirrors and beacon technologies are proposed by the management to be implemented in the shop (Tran et al. 2020).
Being a top-tier organisation, Primark has an annual revenue of £76 m in the year 2019 and is expected to increase its market dominance in the international market (primark.com, 2021). Although the organisation has faced severe challenges due to COVID 19, the change is expected to increase their profitability by 25% (Liao and Teo, 2019). The customer has shifted their buying preference towards online shopping and thus options such as social media marketing and pay-per-click will be feasible to cater the changing demands of customers. Moreover, using AI technology, the organisation can recommend the customers with latest trends in fashion. This approach will not only improve customer service but also allow them to compare prices with other stores.
Restrains of change
The main retainers to change is the current volatile environment that Primark is currently facing. The Covid 19 pandemic outbreak has disrupted the workflow and the workers do not want to come down to the office. The main reason for this behaviour is fear of getting sick and government policies to maintain a social distance. Although the company has implemented safe policies so that only 50% of the staff comes down to office on alternate days, the workers are still reluctant to work. As the digital presence of the company is still not effective, transforming its services towards online is quite difficult without adequate staff support (Upadhyayet al. 2021). Online presence requires maintenance of an online channel, 24/7 customer support and rapport customer service. Therefore, Primark needs to implement a policy such as work from home that can encourage these workers to continue their work.
Nevertheless, as the digitisation process is somewhat new for the organisation, remote working would be difficult to achieve. Many workers have voted against the change process as they fear their lack of technical skills will be taken into account and organisations might try to terminate them to select skilled technical workers. Thus, in order to motivate the workers and raise confidence, Primark has initiated an online training program for the employees. The employees would be taught about how to work in a remote environment and communicate with others (Griffiths, 2019). This approach is expected to remove the doubts of employees and lead them to a focused working environment.
Success of implementing the change
Feasibility
Primark is expected to implement a change in its policy of selling products to the customers in the post Covid-19 era. Digitalisation of services is necessary for the company as it has been suffering huge losses due to closing of physical stores all over the world. Study shows that the competitors of Primark have already started to earn substantial profits by selling their apparels online. Hence, the digital platform for the retail giant will be profitable once the online traffic increases. As the company has a loyal customer base of thousands of consumers, effective marketing strategies will lure them into buying the product of this reliable brand from its online outline, thus increasing the feasibility of the project (Ballaroet al. 2020).
Desirability
Most of the millennials who comprise a considerable part of fashion retail customers are presently willing to avail services from the comfort of their homes. Hence, Primark can reap the benefits from the buying preference of its potential customers and set up an official online store that can cater to the needs of its customers. The customers buying from other competitors can also visit the online stores and cross-selling of the products will be easier for the company. The percentage of shoppers who prefer to buy their clothes online is increasing day by day and it can be considered as the safer alternative in the present pandemic situation (Yazdani and Wells, 2018). In order to increase desirability of the change being made, the management of the company will be cooperating with efficient website and app development teams for creating online outlets that are intuitive and customer-friendly, providing great buying experience to the customers.
Validity
Assessing the responsiveness of the digital shift of services is a significant area of the management of the company. According to Lewis et al. (2018), 64% of the marketing managers are developing and distributing their products based on the data available fromSearch Engine Optimisation (SEO). The validity of the digitalisation increases as the company takes initiatives to add better features in the websites and mobile apps that can make the apparel searching process more convenient for the customers. The reliability of the services are also an important area that the company can gain a competitive advantage over the other rivals entering into the online market to sell similar items.
Acceptability
The digital outlet that needs to be created by the company is an urgent need both for the consumers and the manufacturer. Primark has been facing huge losses due to the present pandemic situation and it is looking for an effective alternative method to sell its products to its consumers (Liao and Teo, 2019). Similarly, the customers are also eager to buy products from their favourite brand from the comfort of their homes. The online services will provide the customers a buying experience where they can choose the type of products, colour, variety and it can be delivered to their homes. The process drastically reduces the spreading of the virus and the buying activities can be carried out safely. It will increase the revenue generation for the company, resulting in increase in acceptability of the project.
3. Resisting the existing solution by highlighting the challenges for mitigating it for further development
Primark is one of the giant organizations in the fashion retail industry having a large number of outlets in the UK as well as in the global markets. According to Moorhouse and Moorhouse (2017), in the present scenario the organization is facing huge losses across the globe due to the pandemic situation and majority of the stores have seemed to be closed for a long time. Despite this situation Primark is refusing to sell their products in online platforms and the organization runs high street fashion retailers without an online store. As the organization is considered as a high street fashion retailer needs to improve their online stores and engage lots of customers into their platforms it also helps them to gain profits from it.
The internal problems that seemed to arise is that in the last couple of periods their average rate of return seems to have increased by 8% in their stores and 25% in case of online sales (Theconversation.com, 2021). Primark gets attracted by lots of customers with their attractive return policies, on the other hand, high rate of return provides a failure for Primark in gaining huge profits. The external factors show that Asos and Boohoo online fashion retailer has increased their sales rise to 40% in the last 4 months of 2020. On the other hand, most of their stores are closed and currently facing £2 million losses in the present year. Analyzing different businesses it has seemed to be found that business organizations need to focus on continuous improvement as it can lead them to gain huge profits and retain in the existing markets.
In the case of Nokia, it has seemed to be found that when all the other organizations have engaged to prepare smart phones by adopting the use of android facilities Nokia retains with their keypad phones. Few years later Nokia realized that it was their great mistake for not implementing modern technologies in their workplace as their sales rate had dropped completely. According to Štefko and Steffek (2018), in that situation they tried to manufacture their smart phones but it got too late for them to return in this competitive market and enhance profit extensively as lots of brands have entered in the market. On the other hand, Airbnb has prepared their platform completely by using the online mode and their sales have increased in such a way that their owners do not realize that it can impact in this way.
At a time Airbnb is considered as the business unicorn with their growing business profits reaching upper limits within a small interval of time. Primark also needs to transform their existing stores in the form of online stores by flowing with the modern technologies properly. The British Clothing Retailer Next has successfully run their business using an online platform and changes the structure of their stores appropriately. In 2020, Next has seemed to have invested £12 million in the last few years for enhancing their websites and stores and getting the result for this reason even in the tough conditions (Theconversation.com, 2021). In order to keep Primark in proper track an innovative leader needs to be present within their organization for analyzing the facts and making proper implementation of modern technologies that can easily mitigate the facts properly.
The challenges that can be solved by adopting the modern technologies such as implementing Smart mirrors and Beacon technologies in their stores. According to Shankar et al. (2021), as by using this modern AI technology they can reduce their return rates quite adequately and solve the internal factors. On the other hand, by implementing these systems Primark can easily provide a tough competition for the other organizations and regain their customers’ support. As the large number of stores gets closed due to the pandemic situation Primark can take some positive approaches and install these systems in the meantime (Balaji et al. 2018). In this way their business operations do not get hampered and when all the things start to get normal it can be easy for them to provide necessary services for their customers and it keeps their demands fulfilled.
The benefit of having smart mirrors in their online stores is that customers can place them in front of their smart mirrors and by setting their size and clothes they can watch it virtually whether it fits them well or not. According to Pradhan et al. (2020), the process is considered as the time saving process of using the trial rooms by trailing clothes after clothes. In this smart mirror they can swipe the screen and a new dress comes and they can adjust their sizes as well. Along with it, they can share their virtual images in the social media platform for getting advice from their family, friends and relatives instantly. In this way they can purchase their products instantly and the chances of returning gets dominated to a huge extent and helps Primark to foster their business properly.
Despite that smart mirrors are installed in the trial rooms as well where customers can demand for their sizes and attendants can help them by providing it for them. Apart from this smart mirror Beacon technology can be used by Primark for making it essay for them to find an item rapidly through this system. Beacon technologies help their customers to provide the offers and discounts present in that section in which the customers are trying to look at different items (Betzing et al. 2018). In this way, by knowing about the discounts in bags or any clothes customers can buy that product instantly for grabbing this offer. Apart from that, in the large departmental stores such as Primark many customers do not find their product what they were looking for.
The online stores can also help them to provide an indoor mapping experience that makes their customers feel easy and saves time for finding any particular product. According to Kumar and Srivastava (2021), despite that from a nearby passage, visitors can get the offers and discounts by providing push notifications from Beacon technology and helping them to Attract their customers in a unique way.
4. Reflection about the leadership and management development
The present assignment deals with the role of leaders and their active participation in enhancing their management structure adequately for Primark. From the first patches I learnt there there were basic challenges that the organization seemed to be facing employee encouragement and lack of communication among themselves. Apart from that due to the application of Brexit, it has created lots of problems for Primark as they need to provide an extra charge for their importing and exporting their goods and enhancing their business operations. According to Todeschini et al. (2017), the important thing that the Primark has maintained is a social stability in their organization as lots of customers can avail their shops for purchasing their clothes in a suitable way.
Standing in this condition it is necessary to identify a proper leader that can help them to identify the major risks for them. According to Hibberd (2018), after identifying adequate risks it can help them to provide positive solutions to the associated problems that can lead them to gain a huge amount of success. I also think that a leader must have a charismatic nature, have good communication skills for delivering their topic in a clear way and need to motivate their employees at every stage. In this way, employees feel motivated and it helps them in enhancing their productivity. Apart from that, a leader needs to focus on the team strength by maintaining effective communication with all of their members.
However, it helps them to identify the associated problems that they are facing, and it is their role to solve the problems rapidly for their employees by transforming the workplace conditions most safely and stable. In the next patches it has swarmed to find that Primark is enhancing their online stores and websites for getting attention from a large number of people and maintaining their profits. I think that an effective leader needs to be present for Primark as they are not getting an idea that they need to provide a continuous improvement for their organization to retain their position in this competitive environment. According to Zheng et al. (2019), due to these reasons, leaders of Primark have decided that the feasibility, desirability and acceptability of modern technology need to be maintained otherwise it can be a huge problem for them in future.
A change that seemed to be identified is that their active participation in the online platform needs to take place as lots of customers can engage themselves by providing their queries and feedback. As participation from Primark seems to be rising, customers can trust their organization and it helps them in purchasing large numbers of products from their stores and gets benefited. Despite that by enhancing their activities in social media, people present in different corners of the world can watch their business activities and show their interest in purchasing clothes and other products from them (O’Connor et al. 2020). As there were a large number of fashion retailers present in the markets of the UK, Primark needs to create some innovative approaches which helps them to get attracted by their customers at all the time.
Now from the third phase it has seemed to be identified that Primark stores were not based on the online stores, on the other hand it created lots of problems for them internally as well as externally. Most of the Primark stores have seemed to be closed for a long interval of time and by using this instant the other organizations such as Marks & Spencers, Lewis, H&M has been providing their customers the best services. The leaders of the organization have identified that they need to transform their traditional shops into online shops (Nadimpalli, 2017). As the number of returning products seems to have extended to a huge extent. In order to minimize these facts and provide tough competition with other organizations. Primark has decided to install basic artificial intelligence products such as Smart mirrors and Beacon technologies in their shops.
The stores of the Primark seem to be quite large departmental stores as it creates problems for the large number of customers for identifying any products. In order to help them with this situation Beacon technologies seemed to be providing indoor GPS systems along with it to provide an idea about their current discount and offering policies. Apart from that, smart mirrors can help them to reduce the numbers of exchanges rates adequately which seemed to flourish their business in a suitable way. According to Reuter and Leopold (2019), these smart mirrors can provide them with virtual looks of the clothes which fit rhythm or not and by sharing these photos in social media they can gain advice from others. Most of the problems that come while returning is that the clothes do not fit in them properly which can be mitigated by their effective leaders.
In order to implement this technology and enhance the management facility by gaining profits it can lead them to flow with the flow of changes in technology. Though Primark is facing some losses, as most of their stores have seemed to be closed they can implement this technology properly and it cannot create any interruption in their business. Ultimately when the pandemic ends it can help them to run their business with full force and gain huge profits by providing new facilities for their customers in the online as well as in their offline stores. According to Pangriya and Singh (2020), the management development can be easy for them in such conditions when Primark faces huge profits for them by their effective leaders and by their proper decision and engaging modern technologies in their workplace.
I understood that a leader needs to be calm and composed in every situation though an organization is facing huge losses and needs to prepare decisions in their minds. Due to this proper decision it is essential for them to change the scenario of the game completely. I also understood that effective communication skills are important for engaging an active participation of the employees in the workplace.
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