Terms of Reference
The reason for this report is to aid the company to further development. As education becomes more competitive in Ireland it is imperative to look into the internal and external influence that occurs in the Currys so that we as an organisation can identify new opportunities.Method of Procedure
A variety of sources of information was used to compile this report. The report consists of the description of the organisation, internal influence on the organisation, and external influence on the organisation and academic theories are used to back-up the findings for example, I got the information from the teachers note and couple of information from the Internet. I also got some information from the staff where I am doing my work experience.History of the organisation
Currys is an electrical retailer in the United Kingdom, and is owned by DSG international PLC. With its origins in a photographic shop opened by Charlse Kalms, the chain now has a store in most towns and cities across the United Kingdom and Republic of Ireland. It was previously known as Dixons until April 5, 2006, when the company announced they were moving away from Dixons brand, except in Ireland. In August 2008, Currys replaced Dixons.
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Today the company has been taken over by his son Stanley Kalms, who was chairman until recently, and remains president of the company permanently.Ownership
Currys is a Public Limited Company through DSG international PLC is a leading European electrical retailer of consumer electronics with operations in 27 countries.Type of Enterprise
Currys is the largest specialising retailer of consumer electronics in Europe and controls more than 1,200 retail outlets in the United Kingdom, Republic of Ireland, Scandinavia, Spain, Portugal and Hungary.Type of work carried out by Currys-Product or Service
The type of work Currys carried out is specialising retailer of consumer electronics such as TV/DVD, kitchen Appliances, Photo/ Camcorders, GPS Satellite Navigation and Phones, Gaming and Software, Audio and I Pods, Computing, Household and Gargets. Currys ensure that these products are always available to the consumers.
Some of the services Currys provide to the customers are repair services. Any products bought from Currys are covered by at least one year manufacturer guarantee. Within this period if there is any defect to the product Currys will repair or if possible replace for a new one. You can also extend the warranty up to five years by paying additional money which will enable you repair your goods if fault develops.
Another service Currys provide to their customers is delivery and installation services. No matter how big a product might be Currys will deliver and install it for provided you pay for the services rendered.
Currys also provide W.E.E.E services. W.E.E.E means Waste Electrical Electronic Equipment. Which means you can send any of the electrical goods that you do no longer use to Currys store for recycling provided you will buy a product from the store. Finally Currys gives their customers chance to make payment through flexible finance which means you can pay by instalments up to period of years. It is a great service because it has given those consumers who do not have sufficient money to purchase their products by instalments.Who Are Currys Customers?
Their customers are the consumers who are in need of their goods and services e.g. it could be consumers, hotels, restaurateurs, cooperate organisations etc. Currys is open to do business with anyone, there are no restrictions whatsoever.Organisation Structure
Currys operates hierarchical levels which shows the stages in the reporting relationships within the organisation from up to down.Flat Structures
A flat organisation would have few levels of management. This shows that the chain of command from top to bottom is short and the span of control is wide.Tall Structures
A tall structure of organisation will have so many layers of management. This usually has long chain of command operating from top to bottom of the organisation. A tall structure has a narrow span of control for example; each supervisor has a small number of subordinates to oversee. This means employees can be effectively managed.
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Currys has many levels of hierarchy which shows that they have tall structures and tend to have narrow span of control.Span of Control
Span of control is the number of employees that can be efficiently managed by one supervisor. It is an organisational theory that refers to how relationships are structured between supervisors and subordinates in organisations. Span of control is divided into narrow span of control and wide span of control.
A wide span of control exists when supervisor is in control of many subordinates.
A narrow span of control exists when a supervisor is in charge of few subordinates. This control tends to generates high levels of supervisor because the manager has fewer employees to oversee.Explanation of organisation chart
From the organisation chart the general manager is the most senior staff. He runs the company and passes instructions to his assistants hoping to get feed back from them from time to time. The three assistant managers have three different subordinates under their control.
- From this chart the Administrator and Warehouse operators report to Assistant Manager and the Assistant Manager (Stocktaking) in turn reports to the General Manager with feedbacks.
- Customer Service, Cashier and Tills gives report to the Expert (Customer Service) and the Expert base on the report he got from his subordinates gives account to the General Manager.
- Cleaner and the Sales Team reports to the Expert (Sales floor Manager) who in turn report to the general manager.
- From the explanation of the chart the final report comes to the general manager. He uses the reports gathered to measure whether the company is making progress or not.
At the moment I am working in the warehouse. I perform the same role as the warehouse operators. And I do report to all the managers depending on who assign me to do a particular task.
Explanation of Various DepartmentsGeneral Manager
General Manager runs the company through planning, organising and controlling. One of the duties of the general manager in Currys is to planning. Planning is the logical thinking through goals and making the decisions as to what needs to be achieved in order to reach the company's objectives.
Another duty of the General Manager in Currys is the controlling of the company for example, every morning there is what Currys called briefing it allow the general manager to highlight whether the company is making progress or not. If it is not making adequate progress the general manager comes up with ideas on how to improve normally setting of targets per each and delegating tasks to the team.
In Currys Blanchardstown the general manager also looks after the funds generated by the company and he is in charge of employee's salaries.
The general manager is also responsible for the recruitment and training of staff.Assistant Manager (Stocktaking)
She carries the role of the general manager when he is not available. But her main duties are stocktaking. She makes sure that the necessary stocks are available. She is in charge of the warehouse.Expert (Customer Service)
He carries out the role of the general manager when he is not available. His main duty is to look after customer service, cashier and tills.Expert (Sales Floor Manager)
He carries out the duties of the general manager when he is not around. His main duty is in charge of sales team.Customer service
Customer service staff is in charge of looking after customers for example, they deal with returns, complaints and calling of staff when their attention is needed at the counter. They also direct customers to the appropriate shelf they are looking for.Cashier and Tills
They are in charge of payment issuing of receipts to the customers whenever they make purchase. They are also in charge of keeping the money and handing it over to the managers at the end of the day.Sales Team
They are the heart of the company and much is expected of them. They all do similar jobs. Their duty is to attend to customers, find out what they really want and sell it to them. Their role is not all about selling they do assist customer convey the goods bought to their cars.Administrator
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She is in charge of general administrative roles in the company. Some of the duties are placing orders to the materials needed for the company e.g. Placing order on bubble wraps, security tags, electric bulbs, toilet papers, soaps, uniforms etc. She is also in charge of maintenance of company for example; if any of their machines are faulty e.g. printing machine it is her responsibility to contact the maintenance unit for repairs.Warehouse Operator
They are like general operatives in the company. Their main duty is deliveries. All the deliveries that are coming from Ireland and United Kingdom are been cleared by them. They ensure that the number of pallets in the consignment are properly counted and checked for any defects. Then they signed the invoices and keep the copy for the company. If the expected numbers of goods are not complete they ring the head quarters for tracking and notification. After which they send an email confirming that they have received the goods in full or if it is not complete they also state it in the e-mail. After that they get the goods to their appropriate positions in the warehouse.
The warehouse operators also helped in bringing stock out for customers and helped them convey the stock to their cars. They also involved in ticketing that is placing the price tags to the appropriate item when there is a change in price. Warehouse operators place security labels to the products for security purposes. Finally they are in charge of all the W.E.E.E products that are sent back to the company for recycling.
Internal influence on organisationResource Based View
According to this view, a company's competitive advantage obtained from its ability to accumulate and make use of a suitable combination of resources. Sustainable competitive advantage is obtained by continuously developing existing and creating new resources and capabilities to the extent that the company is able to protect against resource imitation, transfer or substitution. There are three classes of assets:
- Tangible assets
- Intangible assets
Tangible assets are physical assets such as building, computers and equipment and cash.Intangible Assets
Intangible assets are non-physical assets that cannot be seen, touched or physically measured. Examples of intangible assets are goodwill, reputation, brands, and trade secrets and know- how.Capabilities
Capabilities represent the identity of your firm as perceived by both the employees and the customers. It is the ability to perform better than rivalries using a distinctive and difficult to replicate set of business attributes. Through continued use and practice, capabilities become stronger and more difficult for competitors to understand and imitate giving the company a competitive advantage for example, Currys has a unique excellent customer service that has proved to be one of the reasons why they are making immense success i.e. if a customer buys a 42" plasma television the sales person or the warehouse operator will help the customer convey the product to their cars. Currys competitors do not offer this kind of service to their customers.Value Chain Analysis
- These resources would be meaningless unless deployed into activities and organised into systems that adds value.
- How the activities interlink.
In Currys there is a link between the various departments for example, there is a link warehouse operators and the sales people. If a customer places an order the sales person takes the order to the warehouse operator to look for the product and get it to the floor. The sales person then processes the payment for the customers, if the goods are heavy warehouse operator helps the customer to convey that goods to his car. There is a simultaneous link between the sales people and the warehouse operators. This activity adds value to Currys in the sense that it makes sales quicker and efficient and gives them the opportunity to attend to more customers and make more sales.PEST Analysis
PEST stands for Political, Economical, Technological and Socio-cultural. I would be talking about each of these factors and how affects Currys positively or negatively.Political
Political changes are often implemented through the introduction of new laws. The question is can this laws affect the products of the company? Some of the examples of political factors are: tax policy, employment laws, and trade restrictions. For example, recently the portmeats and beef were contaminated with chemical substance toxin and the Irish Government asked the farmers and the supermarkets to dispose of those contaminated meats. Irish Government took this decision to protect the citizens of its country, although this decision did not favour the farmers or the supermarkets because millions of euros were lost.
Currys is obliged to comply with the rights of consumers of goods and services protected by Irish and E.U Act, 1980 which stipulates that:
- Goods must be of merchantable quality. Goods should be of reasonable quality taking into account what they are meant to do, their durability and their price.
- Goods must be fit for their purpose. They must do what they are expected to do.
- Goods must be as described. The buyer must not be misled into buying something by the description of goods or services given orally by a salesperson.
This regulation could have negative effect on Currys because some of the consumers who know the law could use it against them more especially when they fail to implement some of the rules.Economical
This could affect the purchasing power of potential customers. Examples are: economic growth, interest rates, exchange rates and inflation.
Some of these factors are affecting businesses such as Currys for example, recession. Because of the recession Ireland is going through there are high level of uncertainty about people job, this tend to make consumers cautious on how their money is being spent. Recently Currys proceeds have dropped dramatically as a result of current economic crises. Another negative impact of recession is in Currys a lot of staff were made redundant because Currys can not afford to pay their salariesSocio-cultural
Social trends are very vital when making marketing decisions. Companies will wish to know about changes in demographics e.g. age distribution, population growth rate, cultural values and beliefs. As there is rise in population it is a good omen for businesses such as Currys for example, in Currys this factor affects them positively, as Irish population is growing Currys has the opportunity to recruit staff that would cost cheap for example, most Currys staff are non-nation and because they are not nationals Currys saves a lot of money in their salaries, which would have cost them more if they are Irish citizens. Also some of Currys customers are non nationals.Technological
The technological rate of change becomes faster every year. It is vital for companies to be aware of new developments because it will give company an edge over others. The world we live in through technology is becoming a global village it is imperative for companies to pay more attention on the development of technology. Technology also affects how an organisation managed and how communication takes place in the organisation. Because of the technology, all Currys branches are monitored through their head office for example, the head office knows when Currys Blanchardstown runs out of stock through their system. The goods are delivered to Currys Blanchardstown from their head office. They are able to do it effectively and efficiently through the technology. It is important for the management of Currys to update and retrain their staff in order to deal with latest technology which is continuously advancing.Porter five forces
The five forces framework allows a firm to see through the complexity and pinpoint those factors that are crucial to competition in its industry, as well as identify those strategic innovations that would most improve the industries and its own profitability.The bargaining power of suppliers
Suppliers are in a strong position if a marketer depends on a few powerful suppliers of raw material, and this can lead to high prices and poor product quality. If there are only a small number of suppliers controlling an important ingredient, the suppliers?
Can use their strong position to get profit in an industry. Suppliers tend to have low power because Currys might decide to negotiate a deal with other suppliers if they are not happy with a particular supplier unless when there are few or less suppliers companies may not have any other option.The bargaining power of buyers
When buyers possess strong bargaining power they will try to force prices down and set competitors against one another, all at the expense of the sellers' profitability. Buyers bargaining power increases when they become more organised, or when the product is similar. In this bargain buyers controls the market for example, a buyer may decide to purchase goods where ever he or she thinks there is better value for money or where he feels the services are better for example, since the inception of e-commerce that is buying from the Internet or T.V shop e.g. QVC, consumers has more options of buying same product cheater. This bargain has great negative impact on Currys because buyers have more choices of getting the product cheaper else where.The threat of substitute products or services
This come to play when there are alternative products that customer can purchase over you product that give the same benefit or cheaper price. The threats of substitute are high when these factors are predominant:
- When buyers are ready to substitute
- When price of substitute product is lesser
- When customers can easily change from one substitute product to another
This is one of the biggest threats Currys are facing and it is really slowing down their sales for example, some customers prefer buying a certain product cheaper in some stores e.g. Argos.Rivalry among competitors
Competitive pressures among current competitors depend on the rate of growth of the industry. Competitive rivalry is high where there are many competitors of equal size, or where products or services are similar. High fixed price also create competitive pressures on companies to fill production capacity. Extreme rivalry tends to lead to a decline in sales, and it can force companies to cut down prices in order to make sales and remain competitive. Some of Currys competitors are: PC World, D.I.D Electrical and Power City.SWOT Analysis
SWOT means strengths, weaknesses, opportunities and threats. It is an internal and external analysis that examines the internal operations and activities in the business to determine its major strengths and weaknesses. In addition, the external environment is analysed to determine the major opportunities and threats. The identification of these issues enables the business to develop strategies that build on strengths and minimise weaknesses.Strengths
I used one of the three classes of resource based view which is capabilities as strength of Currys.
Capabilities represent the identity of your firm as perceived by both the employees and the customers. It is the ability to perform better than rivalries using a distinctive and difficult to replicate set of business attributes. Through continued use and practice, capabilities become stronger and more difficult for competitors to understand and imitate giving the company a competitive advantage for example, Currys has a unique excellent customer service that has proved to be one of the reasons why they are making immense success i.e. if a customer buys a 42" plasma television the sales person or the warehouse operator will help the customer convey the product to their cars. Currys competitors do not offer this kind of service to their customers.Weaknesses
This is simply means what a company is worst at doing, their financial position and what does the work force lack. If company identifies these threats they can use certain strategies to overcome weaknesses by taking advantage of opportunities. The strategy is to minimise weaknesses and avoid threats. For example, one of the major weaknesses of Currys is weak cash position.Opportunities
Opportunities could be new technology, arrival of new technologies, an unfulfilled customer need and new market. What made Currys one of the market leaders in electrical goods is ability to be the first to purchase new technologies? Most of the customers come to Currys as a last resort because they believe that the particular item they are looking for must be available in Currys.Threats
Competitive pressures among current competitors depend on the rate of growth of the industry. Competitive rivalry is high where there are many competitors of equal size, or where products or services are similar. High fixed price also create competitive pressures on companies to fill production capacity. Extreme rivalry tends to lead to a decline in sales, and it can force companies to cut down prices in order to make sales and remain competitive. Some of Currys competitors are: PC World, D.I.D Electrical and Power City.Implications of SWOT analysis
- Most likely, SWOT technique-based issues will be the major concern in decision-making.
- Behavioural issues and difficult decision-making process are unlikely.
In this assignment I have been able to get in-dept knowledge on the internal influence on Currys. I looked into resource based view and value chain analysis and the impact they have on Currys. I then proceed to look into the external influence on Currys; I did PEST analysis, political, economical, socio-cultural and technological. I looked into details how each of these factors affects Currys either positively or negatively. I then move on to do porter 5 forces analysis and the effect they have on Currys. I also covered the SWOT analysis. I found out that strengths and weaknesses relate to internal influence in the company and opportunities and threats are external influence.
Finally I did a description of the organisation.Recommendations
- Currys needs to improve on the well-being of their staff. I discover that most staff is not happy about their security. Because staffs are not sure whether their job is safe or not they apply for other jobs and leaves if they secured it. The management team should ensure that the employments of staff are permanent in that way the staff can settle more.
- Another reason why there is exodus of staff is that the structure Currys operates is not encouraging to some of the staff for example; there is no particular job for the staff. Sometimes the manager can ask some staff to start re-arranging the shelves this could be heavy products like washing machines, fridges etc. Some of the staff is not happy with this kind of arrangement as a result they leave the company because they felt they have been badly treated. The management should rotate the duty by that there will be fairness and equity. Another way of solving that kind of situation is by rewarding staff when they do such kind of job.
- Another recommendation on how Currys can improve sales is by looking after the staff well in term of better pay. Currys operate a system of reaching specific target before getting better pay and some of these targets are unrealistic. Sales people are not serious about their job because they felt they cannot reach the target and there is no point working hard. The management can curb this situation by removing the target option. Most staff confirms that if being looked after they will put more zeal to their job.
- The management should try to on-line system. This will encourage more people from shopping from them because it is easy and simple. This system will give them an edge over their rivalries by making more sales.
- Excellent customer service
- WEEE services
- Hard working staff
- Good brand name
Hand out from teacher