Business System in Gymshark Assignment

Business

Table of Contents
INTRODUCTION...........................................................................................................................3
1 Functional areas of business and hierarchy of management...............................................3
2 Communication central to leadership and management and effective interdepartmental
communication.......................................................................................................................5
3 Current drivers of globalization and its impact on business................................................7
4 Contrast and comparison of styles of leadership and the best style which is suitable foe
global organisation.................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
A business refers an organisation which main work is to produce and sells goods and
services for providing services to people in order to earn money. Gymshark is a fitness
accessories and apparel brand manufacturer which is supported by millions of social media
followers. It is a private limited company which is based in UK. This report shows about
functional areas of business and their management system which it uses for efficient work in
order to accomplish teams goals (Crane and Matten, 2016). This study also shows the importance
of interdepartmental communication which help in reducing staff turnover and increasing sales.
Leadership style supports globalization which affect business in positive manner and negative
manner.
1 Functional areas of business and hierarchy of management
Gymshark is an apparel industry which owns the high street clothing retailer like bottom
leggings, hoodies, Burton, accessories etc. It has more than 500 outlets in UK It provides the best
quality of Gym clothes to their customers. There are some functional departments in apparel
industry
Human resources: The main important task for all type of company is recruiting and
selecting the best candidate for the company. This task is done by the human resource
department. The main aim of HR department for Physic apparel company is to recruit right
skills, experience and qualified employee which is suitable for the given job. Aside from
recruiting, HR maintains employees relationship and provide training and learning programs etc.
Accounting and finance : Finance is considered as lifeblood of the company. It is
responsible for all the other functional departments. Finance and accounting department has to
find out about account receivables and accounts payable. Physic apparel use this department for
budgeting, forecasting and other processes (Feng, Morgan and Rego, 2015).
Purchasing department: Purchasing department in Physic apparel company is formed
for buying necessary materials which is required for manufacturing. It focuses on purchasing raw
materials for making finished goods.
Marketing and advertising: Every company wants to grow their business and to gain
more customers. The work of gaining customers and increasing sales is done by the marketing
and advertising department. The main aim of this department is to promote and develop business
of the company.

Production department: It includes those processes which turns input into outputs. This
department makes good quality of products which can be sold to customers. The main objective
of this department is to make products which can satisfy customers demand and needs.
Operations: Operation department oversees designing and controlling process of
production. It ensures mangers that business is running properly and efficiently. Aim of this
department is to deliver the highest quality products to customers.
Sales department: Sales department plays important role for the success of a company
because this department is responsible for retaining customers making good sales etc. The main
aim and function of this department is to maintain relationship with customers and influence
them for purchasing their products.
Hierarchy of management
Hierarchy refers the arrangements of functional departments of individuals within an
organisation which depends upon power, job function and status. By hierarchical structure,
employees can recognize different levels of leadership, authority and responsibility within an
organisation. This structure is used by Gymshark company because it becomes easy for them to
organise and manage (Khan and et.al., 2015).
CEO
Chief executive officer of Physic apparel makes the overall and all the bog decision
which are based on the direction and action. It is responsible for the success of the company and
increase revenue by making the business profitable. The main aim of CEO is to keep the
business cash flow positive and invest this in growth for proving business's success.
President and vice president
Physic apparel company have various departments and presidents and vice presidents
play their role for each department. They control on these departments
Department heads
Head of department lead and develop departments to analyse and ensure that all
departments are doing better and achieving higher possible standards of excellence in all their
activities. They are responsible for research, people management, financial management and
quality management.
Supervision, leaders and managers

Manager and leaders handle the daily basis works and tasks by allocating duties to
employees accordingly. For achieving determined goals mangers, supervision and leaders tries to
motivate, assist and train employees (Najam, Runnalls and Halle, 2016).
Employees
Employees are called the backbone of the business. They are mainly responsible for for
daily operations. They get tasks from their manager and its important for them to complete that
task before the given time or deadline with effectively.
2 Communication central to leadership and management and effective interdepartmental
communication
Communication central to leadership and management as it express and convey message
which is related to larger goals. Communication is the most important key for Physic apparel
company's success. It is important for leadership as they have a set of values and try to promote
Illustration 1: Hierarchical management structure
Sources: (Hierarchical organisation structure, 2018)

those values in others. Communication central to managers and leadership because they both are
responsible and play effective roles in achieving organisation goals. Without leaders employee
can not improve their efficiency and without manager they can not achieve goals so it is very
important of communication between leaders and managers for effective interdepartmental
communication. For example, in the situation of labour turnover leaders try to motivate
employees and managers try to focus on giving benefits and try to satisfy their all the needs and
for that it is important for managers and leaders that they communicate effectively and discuss
that what to do in this particular situation.
Leaders encourage and inspire employees by meaningful sharing of information which is
only possible by effective communication. There are several benefits of communication in
leadership and management such as
Coordination: Mutual understanding leads coordination in work and in all other things.
Coordination helps employees and manager in achieving organisational goals quickly. It also
reduces workplace conflicts. Coordination supports workers in improving the efficiency of task
and work (Puni, Agyemang and Asamoah, 2016).
Better relationship: Communication central to leadership and management helps in
improving better relationship of employees with employer. By communication direct to all the
employees' manager can better understand the needs and desires of employees and motivate them
to achieve desired goals by fulfilling their all the needs.
Motivation and morale: With the help of effective communication Gymshark company
motivate employees and increase their morale. This directly help them in decreasing labour
turnover. Effective communication encourage employees which lead them in achieving high
levels of productivity and staff motivation.
Effectiveness of interdepartmental communication
Effective communication is also a part of organisational functions which help Gymshark
company to stay productive and help each department in collaboration. There is an
interrelationship between all the departments so effectiveness of communication important for
them.
Interdepartmental communication is the process of receiving and sending messages
between themselves in order to solving the problems related ineffective communication. It helps
in eliminating frustration, confusion and anger, for example, if one department takes a decision

to make a change in their activity or any other process then it is important for them to tell about
changes to another departments because one department affects another departments' activity and
processes (Shaw and Barry, 2015).
Marketing department and production department are interrelated because marketing
department provides all the necessary information to the production department through
research. On the basis of that information, production department produces all the products
according to customers demands and needs, Hence, for that effective communication is
important for giving and sending the actual information.
3 Current drivers of globalization and its impact on business
Globalization is the movement and connection of various parts of the world which result
and lead them in expansion of international cultural, political activities etc. There are many
advantages and disadvantages of globalization which may have impacts of social, political and
economical. There are some drivers of globalization which pressurize to business for expansion
their business like technology advancement, international trade, transportation, market drivers
etc.
Market drivers: Market drivers refers the purchasing power of consumers which force
them to purchase products and pay for that services. Those elements which force business to
grow and develop like government policy, consumer demands, lifestyle of global customer etc.
International trade: International trade is also a driver of globalization which refers the
exchange of services and capital between nations. This trade happens for goods and services
because they are easily movable across international borders than labour and capital. It is a big
driver of globalization because it impacts on society and country's economy (Tausch and
Heshmati, 2018).
Information technology: This refers the advancement of technology and the uses of
computers, internet and processes which related to telecommunication. Nowadays millions of
people are using this technology for example, people respond immediately regards stock market
values by touching on electronic gadget. With the help of this technology they can get any type
of information from anywhere in the world.
Competitive drivers: Competitive refers continuing increment of the level of world
trade and growth of global networks which are making countries self dependent in particular
industries.

Impact on business
Drivers of globalization impact on business in positive manner and in negative manner.
There are several impacts of drivers of globalization:
Enhancement of mutual understanding: Due to transportation technology it makes
travelling affordable to people which lead in increment of huge number of people in all countries
to visit. It helps Gymshark company in increasing understanding and building relationship with
people.
Acceleration of technology advancement: Company can increase their profits and being
in a competition by adopting new technologies. Sometimes it impacts on business in negative
manner as other countries use better technologies for developing and leading in the market. It
becomes difficult for company to focus on its core function and it may increase the overall cost
of business which directly affects decision-making process (Toldo and et.al., 2015).
Widening of rich-poor gap: Globalization is increasing the gap between poor and rich
by increasing wage costs. Due to strong economic growth in developing countries are decreasing
global income inequality which leads the gap between the poor and rich.
4 Contrast and comparison of styles of leadership and the best style which is suitable foe global
organisation
A leader is a person in a company which influence and lead other people for achieving an
organisational goal. There are various styles of leadership and management which give different
result and impact on business such as: autocratic leadership, democratic leadership,
transformational leadership, servant leadership, bureaucratic leadership, laissez- faire leadership,
and charismatic leadership.
Autocratic leadership Democratic leadership
In autocratic leadership style, leaders have
absolute control over a group or it does not
involve their staff in decision-making process.
In this type of style, leaders take decision by
the group or involve employees in their
decision-making process.
It does not give chance to employees to share It encourages employees to share and express

their ideas in their processes and take all the
decision on their own ideas (Wright, 2018).
their ideas.
This type of leadership style leads absenteeism
and labour turnover.
Democratic style of leadership increases
morale of employees and decrease labour
turnover.
This type of leaders do not tell about strategies
and decision to their employees.
Participative leaders share their views and
strategies to their employees.
This style do not seek information from their
staff so it is time reducing style of leadership.
This is time consuming style because it seeks
all the information and views from their staff
and then take all the decisions.
From the comparison we can say that democratic leadership style is better and useful for
the company. Gymshark also uses this leadership style for motivation employees and reducing
absenteeism at workplace. It is useful and important for global organisation as it provides
satisfaction to their employees. It supports manager in high productive results through
encouraging innovation and creation (Khan and et.al., 2015). There are many benefits for using
this style that involve
 Demographic leadership style encourages innovation and creativity.
 It improves skills and knowledge of the team.
 This style provides job satisfaction to their employees.
 It encourages honesty at workplace.
 This leadership style builds a stronger vision for the future.
CONCLUSION
From the above study it has been concluded that different functional departments played
an important role in company. Interrelationship between their various departments help managers
and leaders in reducing conflicts at workplace, efficient work and increasing productivity. In
order to achieve team goals, company used and take help of organisational hierarchical structure
which support them in better management and reducing confusion between different departments

activities. Drivers of globalization also impacted on business which is a barriers in developing
business, on the other hand somehow it helped company in expansion their business in the world.
REFERENCES
Books and journals
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Feng, H., Morgan, N.A. and Rego, L.L., 2015. Marketing department power and firm
performance. Journal of Marketing. 79(5). pp.1-20.
Khan, M.S. and et.al., 2015. The styles of leadership: A critical review. Public Policy and
Administration Research. 5(3). pp.87-92.
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader. p.94.
Puni, A., Agyemang, C.B. and Asamoah, E.S., 2016. Leadership styles, employee turnover
intentions and counterproductive work behaviours. International Journal of innovative
research and development. 5(1). pp.1-7.
Shaw, W.H. and Barry, V., 2015. Moral issues in business. Cengage Learning.
Tausch, A. and Heshmati, A., 2018. The Effects of Globalization on the Environment. UKH
Journal of Social Sciences. 2(1). pp.25-40.
Toldo, R. and et.al., 2015. Hierarchical structure-and-motion recovery from uncalibrated
images. Computer Vision and Image Understanding. 140. pp.127-143.
Wright, P., 2018. Fundamentals of human resource management. Management. 5. p.27.
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Hierarchical organisation structure. 2018. [Online] Available Through:
<https://www.learnmanagement2.com/hierarchical%20structure.htm>.