The John Lewis Partnership - Case Study Example

The John Lewis Partnership Introduction: With about 69,000 members of staff who are permanent, John Lewis Partnership (JLP) is owned by the whole group as business partners. This is a business in which all employees have equal shares. JLP consists of different types of businesses including two hundred and eighteen supermarkets, an online and catalogue business, Green bee farm for production and a direct services and company, among others. JLP collectively generates about seven billion dollars (Lewis 1986, p. 6). The original owner of the business, John Lewis set up this particular business in 1864. Later in 1905, his son John Spedan Lewis became the head of Lewis’s other store (Peter John in Sloane Square). Political pressures to the extent of making major serious decisions regarding the company lured John Spedan Lewis so much. John Spedan wanted the company managed in a totally different manner. He decided that every single employee of the company who was permanent was going to have shares in the business; therefore, he organized the launching of a staff profit sharing plan, which was held at one if the businesses (Peter Jones store). The structure of the organization has become totally different in the sense that, everybody in the company has the say and gets the shares instead of having one director owning the company and making major decision. Everybody who works in the company is a boss and there is no possibility of having rules that can be followed as there is no one in charge of that work. This is because everybody in the company is a director. (Pederson 2008, p. 165). Finance Partners in the company have a direct monetary attention, making them exercise their power in the company. This is because in JLP, all partners are entitled to a yearly bonus, which is obtained from the company’s annual profits (that is 10% - 15% of every individual’s annual earnings). The partners in JLP enjoy other benefits including a good salary pension plan that is given on non-contributory basis, loans, and various direct types of assistance. They are also entitled to liberal holidays, big discounts on whatever they buy especially from the company, and the business associates possess social facilities like clubs and even spots facilities including various holiday centers. The partners together with their families have the privilege to enjoy all the leisure and accommodation in the facilities; hence this will most likely result in the collapse of the business in future. Marketing LP works in selections of highly aggressive business surroundings; Tesco, Sainsbury and walmat (Asda), thus controlling the food retail market in the United Kingdom. JLP has also ventured into the clothing business, electronics, furnishings, and even furniture creating competition with various departmental stores. JLP is aware that in order to make it in such business and with so much competition involved, everything that is done will need maximum competence and usefulness. This means that the management of the company has to be taken seriously, otherwise due to the entire staff ownership of the business, some members may not take their jobs seriously, as they may only be focusing on what they have in the company (Lewis 1986, p. 6). The company catalogue shows that the intention of John Lewis Partnership is merely to satisfy its members. John Lewis Partnership has come up with a convention arrangement of a massive organization in terms of setting up a main headquarters and varieties of dissections, stockrooms and branches, industries and retail supplies. Waitrose have demonstrated their focus on quality and importance for money, as their way forward to its selling and procedures. Waitrose have since had a tradition of marketing their products together with local products. This is the reason the company has been able to win the attention from all types of customers, both from local and international arenas. They have goods varying from expensive, cheap international and local goods. Waitrose predicted the extensive attention among consumers in localism and the ecological difficulties related with long-distance transport. In 2005-2007 Waitrose was presented with a Good Business Title after showing its commitment in using all means to meet the customers’ needs. In 2005, the JLP partnership opened the Waitrose foundation. Waitrose is known to run things the opposite of JLP, as it is committed to expanding projects and wants to assist the producers of citrus fruit in South Africa and not just ensure their product gets good price. Waitrose has also come up with a good transporting and delivery ideas where bicycles are made available at various branches to assist customers carry their goods from the centers to their destinations. This has highly helped Waitrose to advertise itself promptly. This has been termed as the trendiest and non-destructive nature (Jackson 2001, p. 43). Operations Usually there are verdict surveys done once in a while to measure the various performances of companies. Waitrose and John Lewis came out shining in 2008 January due to their outstanding performances in customer satisfaction with retail stores. JLP is bringing in stiff competition to companies like Marks and Spencer through one of their segments from JLP (waitrose brand). They do the sales using the online shopping services and in other major stores in the company. JLP did not escape the 2008/2009 economic crisis just like other businesses, even though Waitrose has been the main supporting pillar for JLP due to its constant success, it was making good profits in 2009 when the economy was still feeling the hit. The bringing in of the necessary varieties of goods through Waitrose is what saved JLP from losing their customers to companies with cheaper products. JLP’s concentration on quality and importance for money is known to be the reason why the company going. This has been a tradition of the company since 1925. Waitrose decided in 2001 to join hands with Venture Ocado for its online shopping operation. It was acting differently from other rival companies, which made own-brand delivery services. The company was able to give better services than other companies because of the classical approach. In this setting, the goods are picked from the warehouse in Hertfordshire and put in ‘pods’ which are then dispersed by vehicles to various car parks, the pods are then packed in delivery vans each carrying 8 husks to their targeted places. This is quite different from other companies, which have their products packed from the shelves at the confined stores, hence being under risk of stock running out, causing the bringing in or replacing of different products. This will cause a change of the expected products to other unexpected items, hence making the customers have little trust on the efficient supply of the necessary goods to them (Nejad & Bradley 1989, p. 36). Human resources However, partners should normally be characterized at all stages of the organization through discussions and counseling committees. In this case, the employees representation goes all the way to the governing shareholding council, who has eighty percent of them elected by the staff and the chairperson choosing the rest twenty percent. The board of Directors, whose job is to make all the business plans for the company are appointed by the partnership council. The same board of directors is also responsible for the financial plans of the expansion of the company. If a company has plans for future and present growth and prosperity, proper consultations, meetings, and discussions are necessary. Businesses are not made successful by decisions that are made in favor of oneself or of the benefit a certain group of individuals. Everybody involved in the business has to agree on who is elected in which position and for what role. It is not proper to have the majority of the decision makers as the staff because decisions will not be, as they should. Such decisions need a strong business union membership (Storey 2007, p. 32). Looking at this particular company and the partnership, you will notice so many weaknesses because in real sense a person cannot be able to construct proper rules for his own self. This kind of business is at risk of losing so much especially in the future due to the fact that, most of what would have been bringing in profits, is being consumed by the partners and their families. Since these partners earn from this particular business, it is just natural that their minds will greatly focus on how much the company is making instead of looking at what kind of services the company is offering (Nejad & Bradley 1989, p. 36). Stakeholder Position/power role John Spedan Lewis C.E.O In charge of corporate functions. Have interest in high quality objectives and business plans. And how to make them effective. Jack Scott Project manager Financial decisions and straightening of activity changes. Smith Cole Human Resources (HR) To make sure every role is performed by a suitable person, as this is important for a business. The key issues in managing stakeholders For any business to become successful there should be stakeholders’ management among other things that need to be managed. First we have the stakeholders’ expectations which if managed; create a high chance of success within the business. There should be a project manager who is in charge of negotiating the needs of the stakeholders, comes up with firm conformity business, aims, expectations, and preserve the business organization effort. There should also be the management of the stakeholders’ perception, because it is important to make sure the stakeholders are fully participating on the business time-table kind of plan, so that the partners are fully aware on the progress and the problems within the business. Once the partners work like that, they will end up maintaining the business naturally and helping in its success. The records of stakeholders’ activity should be put down. The manager, to know what has been gained by the discussions, should track communication amongst the partners. There should also be a way of solving problems between the stakeholders by management to avoid conflict (Quarter 2000, p. 56). SWOT analysis Strengths: 1. The merchandise provides wonderful and several feature of the merchandise and also give other merchandise that gives the same services (Quarter 2000, p. 66). 2. Well known name of the brand. The unusual products make it possible for a person to be recognized. 3. The product can be identified from anywhere because of its same quality no matter where it is taken. People are able to recognize it by its quality. 4. It has very powerful advertising operations, for instance the online advertisements reaches very many people in a short while. Weaknesses: 1. Poor marketing plans and actions, these could lead to inability for the company to sell products. 2. Lack of ability the to come up with products that could be suitable for the consumers 3. The changes that happen around the world once in a while greatly affect the production and the market. Opportunities: 1. So many different groups of people need the products, and this could produce good opportunities. 2. The present changes in the world. In the world of today everyone would like to go with what is new and latest, therefore people have no choice but to buy new products to go with technology. 3. Internet. The web has been able to let people learn more about products. This is information is given to people through sites like yahoo, Gmail, face book and others. Threats 1. It is not quite safe to have the business sharing the marketing with software and hardware manufactures. 2. High competitions within the market by different manufacturers and marketers Conclusion As much as the JLP is not doing badly in business, the idea of having the entire staff owning and running the company might not work for long and could cause the company to collapse in future. The more partners are making money, the more they are getting reluctant to put up strict rules which should also restrict the use of company facilities with very little spent. The company might need to be managed by a few owners and other people who do not have shares in the company and possess professional skills. For example, there is need for a strong Board of Directors consisting of professional company managers and Human resource department with only experienced people who don’t have shares in the company (Storey 2007, p. 32). 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