The Arcadia Group Information Analysis - Case Study Example

Running Header: The Arcadia group Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Table of Contents Table of Contents ii Executive summary iii Introduction iv Methodology v Information analysis v Purchasing function v International function vi Information Technology viii Finance sector ix Audit-loss prevention xi Distribution xii Facilities xii Marketing xiii Merchandising xiii Business culture and ethics xiv Conclusions xiv Recommendations xv Limitations xv Bibliography xvi Executive summary The Arcadia group aims at providing a unique shopping experience where choice is paramount. This is achieved where quality retail parks offer a portfolio of successful and high street brands. The group offers an out of town outfit and a collection of the leading fashion brands all under one roof. The company product shows that there is something for everyone from top to toe and the combination of brands varies from store to store. The aim of managing people in the Arcadia is to provide a framework and tools to develop every individual in the group. To achieve this, individuals should make use of the opportunities provided. Competency development is also necessary according to many businesses though the Arcadia has not yet adopted other aspects of the traditional methods of human resources such as universal job description. Introduction As globalisation becomes extreme, a lot of companies expand aggressively for example the Arcadia group. The Arcadia Group is the UK’s largest privately owned clothing retailer and has about 2,500 outlets worldwide. The Company owns the best known fashion brands and shopping concepts and each has its own distinctive identity as well as market target. Some of its brands include Burton, Dorothy Perkins, Topman, Wallis etc. These can be found in every street in UK, the major shopping malls and even over the internet. The company’s ecommerce operation is expanding and becoming more significant as more clients choose to purchase and order online (Arcadia Group Limited, 2008). The company’s customers are predominately females ranging from the age of 25 to 45. This is because ladies at this age are brand conscious and stylish but does not follow fast moving trends. The age groups also always want a wide range of affordable, fashionable clothing for themselves and always desire a convenient shopping experience. The core business functions are the activities that every business performs such as to increase revenue, reduce business expenses, increase customer base and increase the long term value of each customer. The other core business function includes increasing shareholder value which enables the business produce greater income. The company’s brands also operate in over 30 countries in Europe, Far East and Middle East where there are about 400 international franchise stores. The company’s brands operate with leading and award winning positions in the market. This study focuses on analyzing the basic business functions to the new CEO of the Arcadia group. It also shows the recommendations for every department. Methodology This study was conducted using the sampling method where a sample group was formed. This group consisted of 200 individuals. 50percent of the sample group had worked and some are still working at the Arcadia group. 20percent are customers of the company and the rest were randomly chosen from various locations where some had been aware of the company and had information from variety of media. The sampling method chosen was non-probability sampling and used snowball, judgmental and convenience sampling. Information analysis Purchasing function The purchasing function of the Arcadia group is based in London and Leeds. It is also responsible for non-mechandise procurement across the Group and the main function is to ensure that the company purchases the best value from its suppliers. The purchasing function is carried out by its managers and buyers who are accountable for the company’s wide contracts such as travel, utilities and offering support like in logistics and IT. The other functions performed include designing and purchasing printed materials. Every organization should be in a position of determining clients’ needs which also involves understanding the needs of the business. There are various documents that help to understand various business functions (El-Haik & Suh, 2004). One is that organizations help with communication line and the annual reports assists shareholders by showing them how the company has been performing through out the year. The company websites describes the major business functions. One issue is that, as businesses grow larger, they become more complex due to increase of departments where every department thinks it has priority over the other (Marder, 1997). It is therefore important for every employee to understand the core business functions as it helps them to operate successfully the business. International function The basic functions guiding the re-engineering process in the business include one, having a sense of vision or purpose of the organization. The Arcadia international team manages the relationships among the overseas brand franchises. The international market has been exciting and rapidly growing especially in Spain, Sweden and others. The international team of the company also maintains brand integrity, product merchandising and visual proposition. The functions carried out include merchandising, marketing, operations, logistics and store design. These are necessary in driving the business smoothly. Working with franchise partners has been significant for the business as it gives a real sense of business and it also feels great for employees to be part of a great area. The most important skill that has enabled the business to grow to that level is communication. This is necessary as it helps business in decision making process and also defines the various levels of management (Dirk, 2005). Business also needs to be analytical in all its activities fro example being good with numbers. This is necessary as it avoids errors that may eventually lead to losses or fraud. The business functions well once the workers have strong retail operations skills and a passion for international business. If this is present the business will be in a position of coping with the international risks and complexities. Some of these include climate change and global financial crisis. It is also necessary to thrive on managing multiple priorities and being able to cope with rapid business change or jet lag. The workers should be flexible in that they are able to work in any given situation and achieve expected outcome. To achieve this, the company should provide training and development programs that will improve the skills set. The Arcadia group is seen as a dynamic and diverse business to work for since one is able to control their career path and it is also easy to change to direction path (El-Haik & Suh, 2004). There has been a link between differentiation and company performance and every brand sees differentiation as a source of success. The TopShop for example specializes on pacey, high fashion and a design with youth characteristics. In this, there is a fast moving sales process which is fundamental to Evans brand. The brand is also individually based and uses a personal approach in marketing. However, this differentiation gives a strong belief in the uniqueness of qualities of people who underpin the success of each brand. Competencies at work and performance management are new development functions of the business. Dirk (2005) puts it that to achieve competencies, the organisation should introduce various methods of quality control such as six sigma approach. The benefits of using the six sigma process are that it reduces wastage of the firm’s products; it also reduced the floor space thus creating a strong production system. The method also improves and creates more delivery systems which ensure less time wasted (Marder, 1997). This ensures flexibility and improved design of production. In order to achieve these breakthrough results, management has to work well with certain steps. These steps include linking the process to the day to day activities of the firm. All the activities carried out by the employees have to achieve maximum benefits. The firm has also to ensure that the accountants are effective in their duties. This is because they will be responsible of varying the profits results, revenue, costs involved and the expenses. Management should also ensure proper documentation and maintenance of financial procedures. If the process is carried out early enough, the firm may achieve standardised products and assists in the prioritisation of activities and the use of limited resources. It is also effectively used in processes that are easily measured, improved, analysed and controlled. Effective supply chain management is also maintained due to the introduction of designs that are appreciated by the customers. The conditions used by the Company and agencies have enabled the company be reliable to its customers thus has improved the company’s image (David 2003). The company has many customers all over the world due to its marketing strategies and reliability is their core competence. The use of innovative and practical systems has also facilitated increase in production. Information Technology The IT department is a centralised function that provides IT services for the entire group. This department is responsible for developing and operating the systems for the stores both at the head office and at the data centre. The major functions of the company such as supply chain management are modified due to the deployment of automated systems across all the brands. These systems are set with parameters that can be defined according to the needs of every brand of the company. Some of the technological services in the company are outsourced such as support, maintenance and application development. These are of four retail systems that are outsourced to IBM while the Wide Area Network (WAN) infrastructure is currently managed and supported by BT. The various types of roles in the information technology department include technical services manager, technical specialist, PC support specialist, system development manager and others and the entire team reports to the IT director. The role of a business systems analyst changes every day at it depends with the level of stage of project that is under implementation. An analyst operates as a translator between what the firm wants from a particular system and how the IT department is able to produce the system. It is therefore necessary to involve every one in the department and to ensure that they all share a common understanding of what the business is trying to achieve (El-Haik & Suh, 2004). A business analysts shows that one has an opportunity to be part of the system project from the start. The activities involved include analysis, design, testing, implementation of the system and support capacity. Every member in the firm should be trained on how to work with the new system implemented to avoid errors. Finance sector The finance group in London focuses on coordinating business budget, plans, forecasts and other trading reports. The accounting sector is located in Leeds and is responsible for the production of financial and management accounts. It also includes the transaction processing which includes payroll, accounts payable, receivable, stock accounting, credit control and data services. The financial results for the year ended 28 August 2010 include the group operating profit of about 280 Euros which is up by 10.4 percent. The company created 215 concession departments where Wallis and Dorothy Perkins were the main beneficiaries. The small improvement in profitability and sales growth showed a credible performance. The above shows the consolidated profit and loss account for the year ended 28 August 2010. The diagram above shows the cash flow statement for the year ended 28 August 2010 Audit-loss prevention This function provides support for all control, risk and loss management at the store level. The department works closely with the retail operations and store managers to ensure that the goals of the company are achieved. The loss prevention team is headed by a specialist in fraud investigation department who uses data mining techniques to detect fraud and this is linked to the company’s retail systems. The department investigates trends across the group for example through facilitating fraud investigations relating to cash or stock. The various types of roles present in this department include senior audit manager, senior fraud manager, loss prevention manager and fraud investigator who report to the head of loss prevention and audit. The role of loss prevention manager is to review monthly cash loss and stock loss (Montgomery 2009). This process is carried out with the retail team where potential risks are identified and actions to minimise them are put into action. The other functions include investigating fraud, theft and managing suppliers in order to ensure that the team is well protected. Performance is also monitored by the auditors to ensure service levels are met and that the correct equipment is installed according to the legal requirements. Distribution This department functions along with the planning and logistics and is a blend of the forward planning and also a response to sales performance. Distribution involves complex data analysis, liaison with stores, buying and merchandising and balancing both the warehouse and the store stock levels (David 2003). There are various types of roles involved in this department which include stock distributor manager, senior analyst and the distributor. The major functions of the senior branch analyst are to ensure that all the stores have the right products for their market target and according to the needs of the customers. They also analyse store profile and work closely with store managers in other functions such as planning, distributing and in logistics. Facilities This department is responsible for helping the working environment and support services for example in functions such as site maintenance, receptionists, cleaning, vending, security, photocopies and faxes. The types of roles include facilities manager, supervisor, facilities assistant, project manager and helpdesk coordinator. The major key responsibility is to manage hard and soft facilities functions such as maintenance, cleaning, mail and branch distribution (Montgomery, 2009). The department also provides a cost effective service and end user focused service that people can adapt quickly to meet the needs of the business. The department needs one to have commercial contract management experience. This is by thoroughly understanding legislation in areas such as health and safety and built environment. Marketing The role of the marketing department is to provide contact between the company’s customers and the various business functions (Arcadia Group Limited 2008). This is achieved by communicating the brand through a variety of media such as magazines, national press and print media. It also focuses on the brand and advertising, stores, direct marketing, internet, promotions and market research. The types of roles involved in the marketing department include senior marketing manager, marketing coordinator and marketing assistant. To do this, work individuals should have a good knowledge of the brand and incredibly commercial. It is also important to involve people with bags of common sense as this helps one to multitask various activities since there are many areas in marketing and all need one to perform them at the same time. It is also necessary to have a creative background and be up to date to keep up with the trends and the fashion world of the competitors (Kotler & Armstrong, 2007). Merchandising This department ensures that the company has a balanced range to satisfy customer and store requirements. They trade a range to maximise profits and minimize markdown and this is done by forecasting sales, reviewing and balancing stock in order to develop strategic promotions. Employees involved in the department plan for future ranges considering past, present and future trends (Kotler & Armstrong 2007). Business culture and ethics According to the Arcadia Group Limited (2008) every brand is different and therefore has a unique sub culture as well as personality. The culture at the Arcadia group can generally be described as entrepreneurial and dynamic. It is also energetic and fast paced, creative and intuitive. The culture focuses on delivery and results and the rewarding success. The company also focuses on keeping its customers happy buy stocking goods that they prefer and providing a good environment that can develop friendship with people and share a passion. The group values diversity among workforce and eliminates cases of discrimination on grounds of race, disability, belief, family status etc. Instead, the group aims at building a culture that is supportive and inclusive that values openness, fairness and transparency. Conclusions While choosing the right person to fit in area manager, there are some factors to be considered for example the person should be a brand expert and always enthusing about the brand and products. This character enables the manager to be excited about the new opportunities in the market and is capable of designing methods of dealing with the situations. They should also be very inspiring and motivating in order to be capable of getting people stretch for ambitious goals and to drive the business forward. The area manager should also be a great listener for example a person who takes time to reflect and understand the issues of the group members in order to find helpful solutions. A constant communicator is acceptable as they will be capable of giving a clear picture and ensuring that clear, accurate and consistent message is transferred across other branches of the company. A good manager should also be capable of persuading others to contribute in the business functions in order to achieve organizational goals. Recommendations According to my learning in this study, the Arcadia group should improve on the operation management. Management should also be capable of analysing the external environment in order to formulate ways of competitors and business rivals. The focus of the organisation should be most in maintaining clean stock positions which is possible through working with extensive supplier base. This facilitates the speed of a product in the market and creates awareness. The group should also be able to balance the needs of its stakeholders and communicate effectively with them. To achieve significant benefits in operational efficiency and customer satisfaction, it is important for every business to re-engineer the core business functions. This will be achieved through provision of increased access to human resources data and by simplifying reappointment processes of staff members. The core business functions should however not be re organized at the start of business but should be considered in future. The employees should also be offered with high quality education and developmental programs that enable them conduct both financial and personal functions. Limitations Though every effort was undertaken in ensuring that the project carried out as unbiased and effective as possible, there were different limiting factors that disrupted the aim of a thorough report. It was clear that not every one in the target participants was reached at the time of carrying out the research. The method used in data collection was also not effective as the sample group was not able to give the right information. Some sampling errors were also reported and also fatigue affected the respondents. Bibliography Arcadia Group Limited. (2008). ‘OUTFIT’, Accessed 26 April 2011 Read More