Burton Case

Résumé du document

The changes braved out by Burton since its set up in the beginning of 1900 came up in the context of globalization and the Industrial Revolution angle. Within this perspective, clashes for ideals changes are common; especially in the way information and know-how are considered and exercised as well as between the past and present goals of companies engaged in such operations. This paper recounts the three most important changes since Burton was set up until now.

Extraits

[...] HALPERN MOVED HIS MERCHANDISING TEAM TO LONDON, WHERE THEY COULD BE LOCATED IN THE FASHION' CAPITAL. Halpern believed in continuous change, which is needed in the retail sector, especially fashion as customers need change, competitors introduce new products, new legalization changes the rules, and the development in fashions and habits alter expectations. Within this, no store was allowed to run four or five years without a complete modernization. In parallel, Halpern tried to change the culture of the company. Employees were encouraged to seek a balance of control and flexibility. [...]

[...] Rice chooses to ignore the actual problem that was the flagging range of menswear that Burtons was selling. This meant the change took too long to implement, resulting outlets and designs become outdated. With Halpern, he had retailing experience and this showed as Burtons clothing range improved and the company made great profit in his first two years. His decision to relocate his merchandisers was a key, as it was this team that picked what Burtons were going sell and target. [...]

[...] Power: Hoerner had maintained the most authority but also shareholders had also had a deciding vote on important decisions. Hoerner brought a more disciplined approach, giving managers more authority over staff directly below them. Conclusion ALL THREE CEO'S TOOK ALL VERY DIFFERENT APPROACHES TO THE RUNNING OF THE BURTONS GROUP. With Rice he tried to diversify too much. I think he felt he could just buyout the competition by acquiring the different clothing companies e.g. Evans etc. Rice's lack of retail experience was highlighted when he purchased Ryman's and Greens, two companies that operated outside the fashion market. [...]

[...] The first strategic issue was the closure of the Leeds factory. This was a symbolic lever used by Halpern as the Leeds factory was symbolic of the past and this showed he wanted to change Burtons. Also the splitting of retailing and manufacturing had created competition between these divisions rather than co-ordination. The driving forces for this change were very strong as the company was in a trading decline. The attempts by the company to become trendier were unsuccessful as it failed to attract new customers and keep existing ones. [...]

[...] Rice made the Burtons group into separate profit responsible divisions. Rice recruited fifty new senior executives to help cope with all the sub division he had created. By separating the manufacturing and retailing, it made it easier to set different goals and objectives which could be followed by each of the division. Middle management was kept informed of any changes by monthly reports, which were revised every six months. This was to ensure all staff members knew what was expected of them in order for them to contribute to the company's performance. [...]