Strategic Resource Management - Case Study Example

Strategic Resource Management (Case Study Table of Contents Introduction 3 Discussion 3 SWOT analysis 4 The impact of situation on the workforce 5Implementation of change management within the organization 6 The projected management style 8 Recommendation 9 Conclusion 10 References 11 Introduction This essay is centred on applying theoretical concepts on fashion business scenario to accomplish the learning consequences. The prime purpose of the project is to provide vivid explanation and analysis on weaknesses of a big departmental store in Britain. There have an unexpected dip in profits of a fashion departmental store. The lack of implementation of change and complacency has been primary reason behind the cause of shortcomings. The growing competition in fashion sector has been ignored by the company. There has been constant threat that home market is becoming stagnant and saturated. Consequently, it has become vital for corporation to implement effective change management within the organization and expand saturated home-based market segment. The paper is based on presenting the objective of inbound chief executive to the existing supervision team to nullify the cause of revealed weaknesses. Furthermore, the paper would focus on assess the impact of situation towards the workforce. The recommended management style is crucial to execute change management within the departmental store based on apparel division. Discussion The primary task of the paper is to focus on execution of SWOT analysis tool. Moreover, the tool is used for analysis and audit of the complete strategic and calculated situation of the organization. The key purpose for implementation of SWOT analysis is to create bet alignment for capabilities and resources of the organization. Furthermore, this would benefit to create firm detailed and precise business model. SWOT analysis The information that is provided by SWOT analysis helps to synchronize the capabilities and resources of the firm. The four pivotal factors of SWOT analysis are strength, weaknesses, opportunity and threats. The internal factors of the tool are strengths and weaknesses. The current new management team has been asked by the chief executive to reflect upon the issues and provide best possible internal factor solution to nullify the concern (Bass, 2010, pp. 19-31). The prime beneficiary factor for successful apparel retail brand like Zara and Hennes and Mauritz are flawless combination of chic and high end clothing at a reasonable pricing strategy (Bass and Avolio, 2004, p.12). The mission and vision statement of some of the successful clothing brand such as Zara is to create a sustainable development that effectively contributed to the environment and society. The long term aim of these international brands is to create environmental friendly company (Avolio, Walumbra and Weber, 2009, pp. 421-449). Strengths The communication with employees, unified distribution approach and minimalistic store appearance are some of the primary strengths of the fashion departmental store in Britain (Bennis, 2007, pp. 2-5). Weaknesses The lack of staff morale, poor employee time management and lack of wide range of high quality and trendy products are some of the weaknesses (Bjugstad, Thach, Thompson and Morris, 2006, p.5). The home market has been saturated and it is crucial for organization to focus on one internal factor. One of the internal issues is lack of wide range of quality and trendy products. The rapid rate of upsurge of growing competition has created disadvantage for the fashion based company to expand their market share (Bolden, 2011, pp. 251-269). The lack of market expansion is one of the pivotal factors that are required to be focused by the chief executive. The company must assess the situation and implemented effective strategy to extend their market portfolio beyond home markets (Bratton, Grint and Nelson, 2004, p.73). The impact of situation on the workforce The issue of saturated home market and poor management of the organization can impact heavily upon the development process of the workforce. It is vital for organization to execute effective strategy that can help to maintain sustainability (Bryman, 2002, p.28). Every organization such as fashion brand has to rethink about the future and focus on employee engagement for organization productivity and effectiveness. This fashion departmental store has undergone drastic dip in profits which lead to the downfall of shares. One of the primary examples of high-end, luxurious fashion brand named Harrods. The website of the Harrods states that the company is the most renowned departmental store in the world. The company Harrods is based on providing superior customer service and superlative shopping experience (Caldwell, 2003, pp. 285-293). Furthermore, Harrods is only operating in United Kingdom, London. It is believed that the company has strong brand awareness which is due to its international retail icon. The desire of luxury goods and high level of disposable incomes therefore, it is vital for the company to evaluate the level of competitive threat and determine the launch of products on consumers (Conger, 2004, pp. 136-139). The value of motivated workforce can refer to the amount of commitment and energy of every individual to perform particular role and task. Moreover, the high level of motivated employees can lead to high productivity. The low level of management of stores and ignoring competition can lead to unmotivated employees. Likewise, the unmotivated workforce can create negative impact on the development process of business. This can often lead to high level of employee turnover and absenteeism. In the year 2005, it has been estimated that more than 26 million people has been employed in the fashion industry. Therefore, it is crucial to notify that when there is a negative situation towards the development of organization and then there must be something wrong within the internal segment (Law, 2009, p.62). The workforce of an organization can be heavily influenced by lack of management and leadership style. Implementation of change management within the organization The execution of successful transformational and change management model within the organization depends upon number of several streams of work that are required to be successfully attained. In the era of globalization, the adaptation of change is based on enhancement of the existing performance of a company. Furthermore, one of the biggest challenges that companies in fashion industry have to face is to overcome the resistance to change management (Leeden, 2009, p.38). This implementation of change management can help to upsurge the efficiency of the performance of workforce and rapidly respond towards the environmental change. In today’s world, the economic and social changes have seen a drastic alteration in the development and design of fashion. It is decisive for fashion departmental store to need to adapt to the situation and maker scenario and keep up with the ever changing growth of competitors. Two of the multinational leaders in the fashion industry Zara and H&M apply different business models (Lukes, 2004, p.41). The business model of Zara is based on concentrating on internal production segment. On the other hand, the business model of H&M focuses on outsourcing of workforce to enhance their global reach. It has been estimated than there are over 79,000 textile and fashion firms in the United Kingdom. In the scenario, the best possible change management model that can be implemented to the fashion departmental store in Britain is Lewin’s change management theory (McCabe, 2007, pp. 243-266). Lewin’s change management theory There are three stages of changes that can be recognized in the model are transition, unfreeze and refreeze. Kurt Lewin created this model to notify that majority of people used to operate and prefer working within certain area of safety. This large fashion business store is at some point of time recognized to be as one of the best in Britain (Northouse, 2007, p.54). This resembles the popularity of the apparel store. Some of renowned apparel stores such as Zara, Hennes & Mauritz, Gucci and Gap have been increasing their quality of products and design. Unfreeze The execution of change can often lead to resistance from the workforce. It is vital for this fashion brand to initiate the period of unfreezing by motivating employees to overcome the tendency (Foucault, 2008, p.19). For example, Zara invest heavily for the motivation of the workforce. The prime strategy of Zara fashion brand is to recruit young people who are enthusiastic and understand newest taste and trends of fashion among youth generation (Nye, 2004, p.79). Holistic training strategy is being adopted by Zara company by providing high incentives and enhancing the set of skills of people. Transition Once change is introduced, then is becomes the time for transition period. This process of transition can be successful by effective reassurance and satisfactory leadership. Leadership style is vital for motivation of employees and attainment of organizational goals. Leadership is viewed as the one of the most critical and significant elements that can act as essential skills and tools to impact and stimulate the performance of employees to work efficiently (Pareto, 2006, p.66). In the year 2004, Robert Polet became CEO of one of the global apparel brand named Gucci. The self-leadership style of Robert Polet is used to encourage and motivate workforce to think out of the box and allow subordinates to initiate their work without any intervention. This resembles the benefits of leadership style towards improving the productivity and ability of the employees. This fashion brand needs to have staffs that have the inspirational leadership style. (Proctor and Mueller, 2000, p.87) This can motivate employees to improve the efficiency. Refreeze After the implementation of change within the organization, the fashion brand would become stable. Employees would accept the introduction of change. The business model that has to be implemented which is based on decentralized and speediness decision making process. This process can benefit the organization to introduce new fashion trends and short lead times. The company must focus on the development of the technology (Yukl, 2008, p.9). Zara fashion brand has been renowned for its effective supply chain management process. The company focused on development of the process that can enhance the rate transferring information in more easy way. The projected management style The directive autocratic management style should be implemented by the fashion brand in Britain. This management style makes managers to take decisions closely and unilaterally manages assistants (Geertz, 2003, p.32). This is an effective style which is implemented at the time of crisis. Specific evaluated orders are needed to be obeyed by the workforce so that it can nullify further difficulties and complications. Moreover, after maintaining resistance to change within the organization, democratic management style should be implemented which will permit managers to take part in the important resolution making process (Grint, 2001, p.61). This style can help to change overall point of view of the business. Furthermore, this can enhance the quality of work and increase job satisfaction. Recommendation The unique supply change strategy of Zara brand makes the company leader in the apparel fashion industry. This is primarily due to the fact that company maintains its brand image and increase net income which can help to make trendy fashionable apparel which is affordable and forward (Krause, 2005, p.53). Therefore, it is vital for apparel brand in Britain to forecast the obligatory supplies and raw materials. Internalization theory This theory is to be implemented in the fashion firm to develop and enhance the internal markets. Furthermore, it can help to lessen the information monopoly. The fashion industries in Sweden follow three activities which are retailing, branding-marketing and design-development. On the other hand, the fashion business models in Spain are based on control of the firm and production process (Latour, 2008, p.72). This strategy and process should be implemented by the firm to dominate in the domestic market and grow their market share abroad. The use of non-value adding practices should be removed by the company to lessen the workload of the employees. Moreover, this can help to motivate employees (Coopey and Hartley, 2001, p.17). Conclusion This can be concluded that implementation of effective management style and nullifying resistance to change can benefit large fashion departmental store in Britain to enhance staff morale and improve market share. The meagre employment time and management of stores has been another pivotal problem that is required to be addressed to ignore the rapid upsurge of competition. The morale of staff members can be heavily affected by lack of involvement from management team. It has been stated that fashion industry can play a pivotal role towards contributing effectively towards the upsurge of economy and creation of job and conveying sustainable improvement. It is significant for organization understand the demand and requirements of fashion market sector which is primarily connected to production, development and design. The organization should recruit young and well-rounded professionals to connect with the need and trends of the customers. It is essential to enhance cost optimization and revamp brand positioning both internationally and domestically. References Avolio, B. J., Walumba, F. O., and Weber, T. J., 2009. “Leadership: Current theories, research, and future directions”. Annual review of psychology, 60(5), pp. 421-449. Bass, B. M., 2010. “From transactional to transformational leadership: Learning to share the vision”. 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