ASOS Case Study: Leadership, Power Dynamics, and Motivation Strategies

This case study analyzes the managerial and leadership styles of the CEO at ASOS, a multinational online fashion retailer. It examines the CEO's application of Henry Mintzberg’s managerial roles, focusing on interpersonal, informational, and decision-making responsibilities. The report assesses changes in organizational structure, the impact of organizational culture on employees, and the effectiveness of the CEO's leadership style. It further investigates the effects of power, influence, and conflict within ASOS, and explores motivation strategies based on Maslow's hierarchy of needs. The analysis concludes with recommendations for enhancing organizational performance. Desklib provides access to similar case studies and solved assignments for students.

Individual Case Study
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Analyze the managerial style of the CEO using Henry Mintzberg’s managerial roles...............2
Examine if any step was taken by the CEO to bring about a change in organization structure in
order to achieve high performance and analyze the organization culture brought about by the
CEO of that firm and its influence on the employees..................................................................3
Describe the leadership style of the CEO of that firm to enhance the organizational
effectiveness................................................................................................................................4
Examine the effects of power, influence and conflict at ASOS..................................................5
Explain the various types of motivation strategies used at ASOS...............................................6
Use appropriate corporate examples and literature to justify your stand....................................7
Based on the discussion and debate what suggestions / recommendations (strategies) would
you make to increase organizational performance......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journal........................................................................................................................9

INTRODUCTION
ASOS PLC is a British organization which operates multinational online fashion and cosmetic
retail items. They started their business in the year 2000 with the name to target young adults of
the market (Breen, Pedler, and Boak, G., 2020). The complete yourself various products like
accessories shoes clothes and beauty and have more than 4,000 employees in the organization.
Being an online organization the company ship their product to 196 countries having their
warehouses in UK, USA and Europe. This report contains managerial style of the CEO of the
company and the culture they adopt to the form to influence their employees. The leadership
style has been provided which has been used by CEO of ASOS in which they will affect the
power influence and conflict at the company. There are various motivational strategies which are
used by the organization which are formulated with the help of motivational theories. This report
also contains various recommendations to increase organizational performance.
MAIN BODY
Analyze the managerial style of the CEO using Henry Mintzberg’s managerial roles
In order to manage the functions of the organization the CEO of ASOS uses Henry
Mintzberg’s managerial roles theory which helps them to provide several roles of manager plays
in the organization to practice management. All these rules are classified into three main parts
that is interpersonal, informational and decision making roles. These three roles are defined
below:
Interpersonal roles: In these managerial roles the manager is to fulfil three important
roles towards the organization in which they will maintain interpersonal relationship with the
managers and employees of the organization. In case of the CEO of the company also maintain
interpersonal relationships which includes playing the role of figurehead leader and liaison in the
organization. In the role of figurehead the CEO is responsible to handle legal ceremonial and
social matters of the company in a professional manner where as in leader roll he shows that the
all managers are communicating effectively with the team by inspiring them towards the
organizational objectives. Should also be sure that the leaders and managers of the company are
providing good support and guidance to the employees as an effective leader. In case of liaisons
the CEO is responsible to maintain a good network outside the company for taking necessary

information for the success of the organization (Briggs, and Cooper, 2020). All the three roles
helps the CEO to maintain good interpersonal relationships in the organization
Informational roles: Another role of a manager and CEO in the organization is to have
good information of the organization. This requires 3 roles to be played by an individual that are
monitor, disseminator as well as a spokesperson. In case of ASOS, the CEO of the company is
responsible to monitor the collected information in the organization with the help of assessment
of operations of the organization and identify the various issues which needs to be considered in
the organization. In the role of disseminator relay valuable information to employees in order to
assign various duties to them in accordance to their skills. As a spokesperson the so should
provide some of the information externally to attract more and more investors towards the brand.
Decision making roles: This managerial role the CEO has performed four main functions
or roles that are entrepreneur disturbance handler resource locator and negotiator (Gerholz,
Ciolek, and Schlottmann, 2020). In order to became an effective entrepreneur it is essential for so
to maintain and follow all these roles in the organization which helps the company to gain
several profits from the market. Being an entrepreneur the CEO of ASOS will be able to make
better decision making and handle various diseases and resource allocation in the organization.
Being a negotiator the CEO of will be able to crack the deals in cost-effective manner and in
accordance with the organization. It will further help the company to get effective results.
Examine if any step was taken by the CEO to bring about a change in organization structure in
order to achieve high performance and analyze the organization culture brought about by the
CEO of that firm and its influence on the employees
Organizational structure is a structure which helps an organization to define a proper
hierarchy which has been followed in the organization. In case of ASOS, the company is
previously following hierarchy system in which key is provided in the organization to provide
authority responsibility relationship in the organization. This system was going well with the
organization up to when the organization team in small products. But with the success of the
online brand it is essential for the company to revise their organizational structure to work
effectively in the market. In order to maintain management and provide efficiency of cost in the
organization the CEO of ASOS decided to revise their organizational structure (Gibbs, 2020).
The CEO of the company has gone through various types of organizational structures which can

be update adopted in the organization such as divisional structure functional structure matrix
structure and flat structure in the organization but after identifying their pros and cons they come
to know that functional structure is the best suited structure for the company in order to have
good management. As the company deals in 850 brands and ships there clothing and accessories
to 196 countries the companies finds it suitable to use functional structure. To adopt the
functional structure in the organization the CEO has decided to classify these 850 brands in four
major departments and identify four different departments that is clothes shoes accessories and
beauty in the organization. Further, the hierarchy is followed in different departments and the
employees are hired according to the department (Hussain, and Mubarak, 2021).
Describe the leadership style of the CEO of that firm to enhance the organizational effectiveness
Effectiveness of an organization is a way much dependent on the leadership style which
has been followed by the leader in the organization. It has been identified that so also plays a role
of leader as one of their managerial roles and requires to have good leadership in the
organization to manage the functions in effective manner. Types of leadership styles which has
been followed by a leader to manager organization which helps them to be an effective leader
and enhance the performance of the organization. The CEO of ASOS believes in participative
type of leadership style so that the leadership can provide a feel of belongingness and motivation
to the employees of the organization. Participative type of leadership is leadership in which the
leader always Cooper Union of the employees in their important decision making so that
effective decision can be taken. Leadership style not only helps to take effective decisions for the
organization but also helps to improve the feel of belongingness in the employees. Involving
employees in that major decision making will create a sense in them that they are a part of
important decisions of the organization which motivates them follow that decisions which has
been taken by the management (Oloidi, 2020). Apart from this as the employees are responsible
for the major functions of the company they know the market in better manner and will help the
management to take effective decisions which will help them to attain more competitive
advantage from the market. The CEO of us understand this value of participative leadership style
and uses the leadership style in their organization to enhance their organizational productivity.
Apart from this, the CEO of the company also use situational leadership style in which
they believe that a particular style is not suited for all situations in an organization. There are

several types of situations which are faced by the organization and in order to handle and face
the challenges of the situations the leader needs to accept the best suitable form of leadership in
that situation. An example of a conflict in which authoritative leadership is required and the
leader is the participating leadership can cause more conflicts in the organization. Hence, the
CEO of ASOS, believes that they should use situation leadership and adapt changes according to
the situation in their leadership style.
Examine the effects of power, influence and conflict at ASOS
Effect of Power: The upper level management of the organization has the supreme power assign
some power to the managers they are working under them to manage the organization in
effective manner. It is essential in an organization to delegate duties with some power so that the
work can be done in time efficient manner (Pasha, 2020). Power is nothing but an ability in
which an individual make the things happen according to their perspective by getting someone
else indulge in the process to get the thing done. It is beneficial for ASOS as it involves a lot of
population of workers and deals with more than 4000 employees. The company assign a
manager to a department who are given power to assign task to their different employees
according to their skills and efficiency. This power provided to the managers and employees will
help other employees to motivate in such a manner as to achieve the power in the organization.
Attainment of power will help the employees to get good productivity from the employees who
wants to attain it.
Effect of Influence: Influence is nothing but a power to affect manipulate or control something
with the ability to provide development in those things. It is essential for a manager to influence
their employees to make the work or task done on time which are assigned to them and provide
effective results of the work. In organization like ASOS the inference can be of two way
exchange in which it is impossible for the organization to achieve their goals if they are not able
to influence their members to do right things in the organization and in the another case they will
not be able to influence members if they are unable to satisfy their needs in the process.
Effect of Conflict: The conflict in an organization can have two types of impacts on the
organization that is positive as well as negative impact (Pieroni, McAloone, and Pigosso, 2020).
The negative impact of the conflict can increase stress and anxiety among individuals and
increase their productivity in the organization. Whereas conflict also has a positive effect such as

they bring social changes good decision-making group unity free cancellation and many more in
the organization.
Explain the various types of motivation strategies used at ASOS
In order to formulate motivational strategies in the organization the CEO of ASOS use
Maslow’s hierarchy of needs theory which rules to be very factor for motivation in ASOS. The
Maslow's hierarchy need theory for ASOS has been given below:
Physiological needs: Physiological needs are among the basic needs of the employees of an
organization in which they demand food water warmth and rest at their workplace. These are the
basic needs of the employees as source always provide proper in food interval and rest interval to
their employees so that they can be e motivated to work for the organization. An effective
motivational strategy by providing these physiological needs of the employees so that they will
not get frustrated of their work.
Safety needs: The company also and sure to provide security and safety to the employees so that
they will not feel insecure and the organization which can affect the productivity of the
employees (Purwani Setyaningrum, Setiawan, and Wirawan Irawanto, 2020). In ASOS, the CEO
has formulated the policy to provide medical facilities and other securities to their employees
such as insurance which gives the motivated to work for the organization.
Belongingness and Love needs: After satisfaction of both the basic needs the employees wants
to fulfill their social needs in which they want to fulfill their love needs. In order to make the
employees feel connected with the organization it is essential to provide them a friendly
environment. In case of ASOS, the company has a good as well as friendly environment in the
organization as a result of which 4000 employees are able to survive.
Esteem needs: ASOS Company has good appraisal system which helps the employees to fulfill
their esteem needs in the organization and keep themselves motivated for their further appraisal
and provide good productivity to the organization.
Self-Actualization needs: After fulfillment of basic as well as psychological needs of the
employees the company should focus on the self-fulfillment needs of them so that their full
potential can be achieved in the organization to involve their creative activities. In case of ASOS

the company can provide the self-fulfillment needs to the employees so that they can give their
creative actions to the organization.
Use appropriate corporate examples and literature to justify your stand
ASOS is a global organization which deals in in more than 850 brands and ship there
products to over 196 countries. Expansion of the company has shoes that the company has
achieved a great success in the past 10 to 11 years. It is the effective strategies of the
organization that they are able to achieve this much success in the market and will be able to
compete with major brands. The several motivational strategies used by the company helps them
to keep their employees motivated and give their best to the organization. This motivation in the
employees will help the company to increase their productivity which results in admirable
success of the Asus. The efficiency of so is also appreciate will in the organization as the CEO of
the company has played there are managerial roles in effective manner and lead the company in
such a manner that they are able to provide good motivation to them. The biggest step taken by
the CEO of the company is to change the organizational structure which help the company to
manage their operations in effective manner.
Based on the discussion and debate what suggestions / recommendations (strategies) would you
make to increase organizational performance
On the basis of above discussion it can be analyzed that should take some major steps in
order to increase their performance in the market and can follow the recommendations which are
given below:

Use of divisional structure - The Company has changes its organizational structure from radical
structure to the functional structure in order to provide good management to the organization. It
has been analyzed that the company is expanding the rapid space and requires to adopt more
diverse structure in the organization to manage various where houses from which they are
operating. The company can use divisional structure in which they divide the organizational
structure according to the geographical area from which they are shipping their products. It can
be recommended to the CEO of the company to adopt divisional structure in the organization as
the global expansion of the company will make easier with this organizational structure (Purwani
Setyaningrum, Setiawan, and Wirawan Irawanto, 2020).
Should work to retain employees - The companies providing good motivation to their
employees but difference to retain them in the organization for a long time. It has been
recommended to the CEO of the company to formulate some strategies which will help the
company to retain their employees with the organization.
Appraisal as well as educational programs - The Company should introduced several
educational programs which can help the employees to develop themselves in such a manner that
they can enhance the productivity of the organization. It will not only help the company to
develop productivity in the organization but also helps the employees to enhance their skills in
various fields.
CONCLUSION
From the above discussion it has been concluded that a source has a good so who provided them
a good organizational structure and motivational strategies which helps the company to run their
business in effective manner. The CEO of the company has played several managerial roles for
the organization and provide effective services to them to achieve this position in the market will
stop the best leadership style of so you will help the organization to enhance their organizational
effectiveness.

REFERENCES
Books and Journal
Breen, J., Pedler, M., Edmonstone, J. and Boak, G., 2020. Re-framing theory and practice in
current and future organisational contexts. Action Learning: Research and
Practice, 17(2), pp.239-239.
Briggs, L. and Cooper, L. eds., 2020. Fieldwork in the human services: Theory and practice for
field educators, practice teachers and supervisors. Routledge.
Gerholz, K.H., Ciolek, S. and Schlottmann, P., 2020. Linking theory and practice through
University Schools-An empirical study of effective learning design patterns. Zeitschrift
für Hochschulentwicklung, 15(2), pp.147-166.
Gibbs, L., 2020. “That’s your right as a human isn’t it?” The emergence and development of
leading as a socially-just practice in early childhood education. Australasian Journal of
Early Childhood, 45(4), pp.295-308.
Hussain, M. and Mubarak, S., 2021. MEASURING HUMAN RESOURCE ATTITUDE USING
ORGANISATIONAL THEORY OF RELATIONSHIP: THE WAY
FORWARD. International Journal of Management Studies, 28(1), pp.57-88.
Oloidi, E.O., 2020. A mixed methods investigation into how perceived public perceptions
regarding personal and sexual relationships of adults with intellectual disabilities (ID)
might influence social care workers’ attitudes, beliefs and behaviours (Wales) (Doctoral
dissertation, University of South Wales).
Pasha, N., 2020. Responding to career uncertainty: Applying a'dual-empathy'approach to career
development using corporate strategy theory. Journal of the National Institute for Career
Education and Counselling, 44(1), pp.44-50.
Pieroni, M.P., McAloone, T.C. and Pigosso, D.C., 2020. From theory to practice: systematising
and testing business model archetypes for circular economy. Resources, Conservation
and Recycling, 162, p.105029.
Purwani Setyaningrum, R., Setiawan, M. and Wirawan Irawanto, D., 2020. Servant leadership
characteristics, organisational commitment, followers’ trust, employees’ performance
outcomes: a literature review.