Executive summary: In Australia retailing, Myer is the largest organization. Their main competitor is David Jones which is much smaller than Myer. Myer has completed an acquisition in 2006 which turn them to a group owned company from a public company and helped them to make a revolution in organizational structure, organizational culture and HRM. The whole transition process indicates some very impressive planning and organizing skills which directly assist them to improve better financial performance. Myer’s new management team t a new organizational objective - customer-focud and uniquce organizational strategy. On one hand, the customer-focud culture helped Myer to keep improving the customer loyalty and market share. On the other hand, the uniquc organic strategy transferred Myer become more flexible, process-oriented, open-type internal arrangements which are the industry trends. During the transition, in order to build great employee loyalty, Myer did not make a huge downsizing. This decision has been proved was a successful one which has been reflected into financial benefits. To compare with David Jones, Myer has the huge advantages in both net sales and operating profits. Therefore, online retailing is always a weakness point of Myer. According to the status of M
yer, it is unavoidable to build a effective strategy for online retailing. And also, HRM is still need to be improved in some specific area such as HR planning and demographic trends.
1.0 Introduction:
1.1 Background and competition: Myer is Australia’s largest department store group and has been synonymous with style and fashion for over 100 years. With a valuable footprint of 67 stores in prime retail locations across Australia, generating total sales of over $3.2 billion in FY2010 (including sales by concession operators), Myer is a leader in Australian retailing. (Myer official website, 2011) The company is headquartered in Docklands, Melbourne and is listed on the Australian Stock Exchange under the code MYR. Myer operates 67 stores across Australia and employs over 16,000 staff within five gments which are fashion, beauty, homewares, electrical and toys. (“Myer Holdings Limited”, 2011) Even though Myer is the leader in Australia retailing, it has experienced a huge acquisition by a consortium comprising which made an enormous revolution in the compa
ny. (Robbins, Bergman, Stagg and Coulter, 2009, p.211) Since 2006 after the acquisition, Myer change their major objective from making profits to meeting customer needs and also created a clearer chain of command and accountability. (Robbins, etc…, 2009, p.340) The changing in Myer management system and objectives reflect the importance of organizing and planning.
1.2 Two main functions: This report will focus on both organizing and planning.
1.3 Purpo: The purpo of this report is to illustrate the how efficiency the management can be by building an effective planning and organizing function.
1.4 Plan and key concepts: The radical change of organizational culture which made Myer become more customer-focud is another important element that has to be discusd. In this report, the two main functions, planning and organizing will be discusd, identified and evaluated.
2.0 Discussion: David Jones is the biggest competitor in Australia retailing. To look at how
significant change Myer has made, it is highly necessary to compare and discuss the two main functions with David Jones which has 37 stores and 9,000 employees. (Myer Ltd in Retailing (Australia)施正荣, 2011)
2.1 邮件正文格式Planning: For the ca of Myer, planning involves defining the organization’s goals, establishing an overall strategy for achieving tho goals, and developing a comprehensive t of plans to integrate and coordinate organizational work. (Robbins, etc…, 2009, p.211) First, Myer has given the new management team, as one of the three key ownership groups within the business, a lot of scope authority to make major changes. (Robbins, etc…, 2009, p.340) This demonstrates that instead of facing uncertainty, organizational actors often fail to look into the distant future, choosing to “solve pressing problems rather than develop long-run strategies” (Cyert & March, 1963: 119). The first step in the decision making process is to clarify purpo and boundaries of the decision. (Waheed, Kamran Kan, Habib, 2011, p4) The new Myer understand this theory well, they realized that one of the first things that had to be changed was the culture, which needed to become more customer-focud. (Robbins, etc…, 2009, p.340)
It also reflects that Customers' needs and desires must be first identify and transformed into specific characteristics of the rvice or product. (Ruben, Carolina, 2009) Globalization and fierce competition forced companies to realize that satisfied customers are the key to long-term business success. Therefore, customer satisfaction has to be a strategic goal and a core value of the company’s culture. Also, the customer satisfaction measurement has to be an indicator of everyone’s contribution to the achievement of the goals if companies want to deliver superior rvice to their customers. (Mirko, Mirela, Ivan, 2011, p1) That is exactly the reason Myer allocated the new objective to each department to ensure that everyone has understand their customer-focud objective. The objective of the new approach was to empower local management to drive store sales, improve customer loyalty and better support and engage with the local communities. (Robbins, etc…, 2009, p.340) Becau they believe companies that have more satisfied customers experience higher economic returns and customer loyalty. (Mirko, etc…, 2011, p1) In the beginning of the transition, much of the initial work was focud on bringing down costs and reducing the huge inventory of stock that had clogge
d the business for years. (Robbins, etc…, 2009, p.340) It is provident for Myer to understand that loss due to lack of infrastructure (roads, traffic, airport, railways, ports, and so on) is the next challenge facing the organize retailers. (Mittal, Prashar, 2011, p.5) Undoubtedly, Myer did a significant job on planning within this huge transition. Especially in defining the new objectives, allocating the missions to each department to ensure the objectives are going to be implemented and strategy planning. The ca of Myer demonstrates the importance of organizational planning and strategy planning and the existence of different strategic management styles depending on the attitude distilled by the corporate management in strategic planning and the degree of control it maintains. (Mousli, 2011)
2.2 Organizing: Organizational change, change in HRM and change in organizational culture are the three main revolutions during Myer’s transition. Since the acquisition in 2006, Myer is no longer a public company. Instead, it becomes a group owned company. (Robbins, etc…, 2009) Now Myer is turning into an organic organization which prents more flexible, process-oriented, open-type internal arrangements. (Zanzi, 1987) Burns an
d Stalker (1961) first developed a conceptual scheme which described organizations on a continuum from mechanistic to organic, reflecting a combination of structural and behavioural characteristics. It is undoubtedly that organic forms of organizations reprent adaptive evolution to an unstable environment of pre-existing mechanistic models. (Zanzi, 1987, p.1) Myer is also a functional structure organization which focus on customer satisfaction. According to the rearch conducted by Khan, functional rvice quality, functional price, functional flexibility, relational confidence, relationar communication, satisfaction and relationship commitment have significant positive correlation with behavior intention. (Khan, Sazali Abdul, 2010, p.6) On the other hand, a whole new management team has been given from the owner group which leads a radical organizational development (OD) inside the organization. A successful organizational development (OD) which means changing people’高蛋白的食物有哪些s attitudes, expectations, perceptions and behaviours (Robbins, etc…, 2009) always produce superior business results whatever the accompanying circumstances. (Katou, 2009) The cond radical change in Myer is human resource management. As such a big company,
having a wide downsizing is normal after a transition, but usual, Myer did not make any downsizing after the acquisition. This atypical decision actually护照类型 helped Myer build extremely strong employee loyalty. According to a study conducted by Katou, Employees’ attitudes and behaviours generally depend on the policies and procedures the organization is employing. (Katou, 2009, p.4) In fact, it is employee’s attitudes that have an impact on the behaviour of employees that subquently has an impact on organizational performance (Wright, Gardner, & Moynihan, 2003) By mid-2007, Myer had completed the transition to its own recruiting and training, as well as payroll and performance management, systems. (Robbins, etc…, 2009, p.341) Good human resource management such as recruiting and training can lead organization into a better performance and loyalty. Here is the argument from Katou and Budhwar, “training and development may convey a message to employees that it is in the best interest of the organization to have employees stay longer in the firm.” (Katou & Budhwar, 2007, p.28) On the other hand, Myer also start to connect with four Asian hubs and four large Australian distribution centers (Robbins, etc…, 2009) which reflect the improvement of th
eir organizational communication skills. The organizational culture is the third change in Myer’s acquisition. A successful organizational culture can bring positive effects on both perceptions and behaviours.杨玉福 (Gerald, 2011) Wilson (1995) argues that "implementation of relationships requires changes in corporate culture and reward systems to reinforce the behaviours that generate trust, mutual goals and adaptation ...". The new management team of Myer realized that the organizational culture which was profit-focud has to changed into more customer-focud. Instead of using profit-focud culture, customer-focud culture can offer them more long-run profits and customer loyalty. (Mirko, etc…, 2011) In conclusion, the changes in Myer helped them to improve not only on their organizational structure but also on their human resource management 选择强度process. Compare to the old structure, the new organizational structure improve them both on achieving new objectives and organizational development (OD) to become more efficiency and effectiveness. Changing in HRM assisted Myer to build unbreakable employee loyalty and more organizational communication with outside at the same time. Finally, the radical change in organizational culture brings Myer a huge improvement on b
uilding customer loyalty. The importance and value of the customer loyalty has been proved by Dr. Emel Kursunluoglu in the 2011. (Kursunluoglu, 2011) Myer’s successful on the changing in organizational cultural can be proved by the responds from customers, “They found the ‘new Myer’ willing to listen to their ideas.” (Robbins, etc…南塘河, 2009, p.340)
2.3 Competitor comparison: The main competitor in Australia retailer industry is David Jones. The reconstructed David Jones store at Rundle Mall in Adelaide won a prestigious international award as the best newly completed store in the world in the year 2000. (David Jones official website, 2011) In 2009, David Jones indicated interest in developing an internet retailing channel bad on a return-to-investment model that does not add pressure on the financial and logistic fronts. Currently, the company operates a David Jones Wine Club, which retails wine on-line. The site offers discounts of up to 50% on bu陈其乾lk purchas. (David Jones Ltd in Retailing (Australia), 2011) To compare with David Jones, advantages and disadvantages will be discusd in the next following paragraphs.
2.3.1 Advantages: Fist of all, in recent years, Myer gets the advantages in both market share and revenue. The following statistics shows the advantage of Myer.