Business Report on Gymshark

This report analyzes Gymshark's business operations, focusing on functional areas, management hierarchy, effective communication, globalization drivers, and leadership styles. It highlights the importance of interdepartmental communication and its impact on organizational success.

Business report

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1 Functional areas of business and hierarchy of management...............................................1
2 Communication central to leadership and management, example of effective
interdepartmental communication..........................................................................................3
3 Current drivers of globalization and the impact of these on business.................................5
4 Comparison and contrast of two styles of leadership..........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business is a commercial activity and economic system where goods and services of
organization are exchanged for earning money (Solaja, Idowu and James, 2016). Gymshark is a
fitness apparel and accessories brand. It is the online retailer which is situated in UK. It has many
social media followers and customers in 131 countries that followed and support it. This report
shows about functional areas that include many departments like purchasing department,
production department etc of business. It shows the importance of communication in business
and This study also shows the drivers of globalization which affect business in negative and
positive manner.
Task 1
1 Functional areas of business and hierarchy of management
There are some different departments in an apparel industry that are: Merchandising,
planning department, production department, quality assurance department, embroidery
department, finishing department etc. Functions of different departments in apparel industry are-
Merchandising: It is a vital process that includes planning, developing, executing and
distributing the products to the buyer. In garment unit types of merchandising are marketing and
product merchandising. The main objective of marketing merchandising is development of
products. Product merchandising involves all the responsibilities starting from sourcing to
finishing.
Purchasing department: A purchasing department in Gymshark company is formed to
produce all necessary materials needed for producing final goods. The purchasing department in
garment company is similar to the sourcing department. The main difference is that the sourcing
department works for sourcing the fabrics alone and purchasing department works for sourcing
the accessories and trims.
Production department: The production department of New Gymshark obtains some
details like- The garment style, target for each day, number of operator requires etc.
Quality assurance department: To maintain and control the quality, the quality
assurance department divides the work into different stages of manufacturing. After completing
the products it assures and check the quality of material and finished products.
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Marketing and advertising department: Marketing department carry out research and
survey to have a better understanding of customers need. They mainly define and manage
company's brand and produce internal marketing communication for employees.
Customer service department: The main work of customer service department in
Gymshark company is to answer all the inquiries, process of orders and address customer
concerns and complaints. This department mainly gives all the answers of the questions of
customers and try to satisfy them.
Hierarchy of management
Organizational structure is the arrangement that helps a company assign a hierarchy that
defines roles, responsibility, and supervision. Such that it is a plan which helps to define who is
reporting to whom and who is the responsible person for any activity. (Bolden, 2016).
As per the above image, it has been identified that the in Gymshark, it has different level
of hierarchy such that sales and operational head to report the CEO and in the same way sales
department also reports to the sales heads. Apart from this, the CEO and the board of directors
also provide direction to their managers and leaders so that they perform in better way. In the
quoted firm, the CEO only takes big decision and provide directions.
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Illustration 1: Hierarchy of management

Moreover, different departmental heads should also report to their upper authority and the
managers and leaders are also responsible for their employees working. Even the supervision
also manages the entire work and even assign duties to their employees.
.
2 Communication central to leadership and management, example of effective interdepartmental
communication
Effective communication is important for the development of an organization. It is
significant for managers in the organization to perform the basic functions of management.
Communication central to management and leadership because it allows managers and leaders to
implement their strategy in an organization.
Communication central to management
 Communication promotes motivation by informing the employees about the task
to be done, the manner of performing the task and to know them how to improve
their performance (Holten and Brenner, 2015).
 It also helps in socializing.
 It leads in controlling organizational member's behaviors in various ways.
 It is one of the basic feature of management. It supports managers in raising the
morale of the employees.
Basis of decision-making and planning
Central to communication enables management to secure information which make it
possible to take decision. The quality of managerial decision is depends upon the quality of
communication. Effective communication helps in proper implementation of plans and policies
of the management.
Increases managerial efficiency
The efficiency of manager in Gym shark company is depends upon his ability to
communicate effectively with the members of his organization. Through effective
communication, management can convey its goals and desires, issues and orders and allocate
jobs and responsibilities among st employees.
Communication central to leadership
Promotes co-operation and industrial peace
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Effective communication creates mutual understanding and trust among the members of
the organization. It promotes co-operation between the employee and employer. The main
function of leadership is to maintain relationship and decrease labor turnover. Without
communication, there can not be sound relations and industrial peace (Mohiuddin, 2017).
Motivation and morale
Through effective communication workers get motivated to achieve the goals of the
organization and their morale is boosted. It saves time and efforts which leads in increasing
productivity and reduces cost. Communication motivates employees and make them possible to
work together in a group and achieve the benefits of large-scale production.
Better understanding
It enables leaders to share all the things and planning with others. Central communication
help in developing better understanding among employees which help in inspire them to achieve
values from their leaders.
Effectiveness of interdepartmental communication
An effective departmental communication also makes sure that all the department of the
firm are on the same page whenever the situation is changes. Because if one department of
Gymshark changes then it affect the other department as well. But on the other side, if a single
department did not communicate with other, then it can creates a confusion and the target of the
firm also affected. It has been further analyses that without an effective interdepartmental
communication, the employees demotivated and there is an absence of trust and respect between
each department. Through an effective communication between all the department, the
employees can work effectively and also raises the working performance that further attain to
their company's objectives. It also helps to facilitate collaboration and to attain the defined goals
of a firm in more effective way.
Effectiveness of interdepartmental communication leads co-operation within an
organization. There are various departments in new Gymshark company, So for that effective
interdepartmental communication is very important (Iqbal, Anwar and Haider, 2015). There is a
requirement of the effective communication between production department and marketing
department. For example, marketing department identifies the needs and demands of the
customers through survey and research and provide this information to production department
because production department produces all the products according to the requirement and
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information which marketing department provide them. If marketing department give incorrect
information or do not provide accurate information then it will create barrier in production of
products. For solving all these types of problems, the effective communication is very essential
between all the departments. Effectiveness of communication helps employees and employers to
meet an organizational goals and complete the given task on the time. Without effective
communication, company will have to face many problems that include lack of motivation
among employee and the lack of respect and trust among various departments.
3 Current drivers of globalization and the impact of these on business
There are many factors that are responsible for the flourishing of globalization. There are
main four areas that drive globalization (Goryakin, and et.al., 2015). There are many factors
which affect the globalization that involves technology drivers, market actuation, competition
manipulator etc.
Technology drivers: It is one of the most affect globalisation factor because in this
modern world, every company follow all the latest technology in order to upgrade their current
system and to attract large group of mass. The stage of technology in a particular field gives rise
to import or export of products or services to another country. Gymshark company majorly
affected by changes in technological environment. Technological advancement forces business
to implement new technologies which directly affects their decision-making process and
productivity. It has positive impact upon the business such that Gymshark uses new technologies
for producing products then it will attract great customers towards organization and it also helsp
to reduce the cost of the offered products and saves the time as well. On the other side, it also
creates positive impact such that because of technological drivers or the development of
technologies it improves the living standards of people in many countries.
Competition drivers: High levels of trade, competitive diversity and interdependence
increase the potential for organization's globalization. It making interdependent of many
countries by growth of global networks (Zhang, and et.al., 2015). Competition drivers impact on
business in negative manner as it causes an organization to underperform. For being in a
competition, organization needs to modify their products, advertisement which increases the
overall cost of organisation. This driver also creates impact upon the business in negative way
because, due to high competition, the quoted firm offered the product at low rates but did not
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maintain the quality of the products and as a result, it affect the business financial performance
as well.
Market drivers: There are many types of people which differ culturally so services also
vary which organization pay to them. Level of economic development impacts demands and
supply to individually owned goods. It defines the customer behaviors distribution patterns. The
most common market drivers are consumer demand, government policy ans demand (Najam,
Runnalls and Halle, 2016). By fulfilling the needs of customers and by effective marketing,
Gymshark can increase their productivity and goodwill Hence, it impacts on business in positive
manner such that due to availability of many distribution channels provides the best
opportunities for company because it wants to offer their products to global market (Zhang, and
et.al., 2015).
4 Comparison and contrast of two styles of leadership
There are different types of ways of leading people in organization. Some leadership
styles are: autocratic leadership, democratic leadership, team leadership, Transformational
leadership etc.
Autocratic leadership Democratic leadership
This type of style is adopted by the
management where one man control over all
the managerial decisions It does not include
team members in their decision-making
process (Peker, Inandi and Giliç, 2018).
Democratic leaders make the final decisions by
including all the team members in their
decision-making process.
If leaders follow this style then they
dominates the entire team of their
employees because of their strictness.
It is relation oriented and its main aim is to
improve the relations between the superior and
employee relationship by sharing the powers
within a group.
It has the high level of control. It has low level of control.
This type of leadership style commands for
direction.
This type of leadership style direct others
through guidance and suggestion
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Democratic leadership would be more suitable for their business as their team members
require the greater degree of independence and job satisfaction. It is suitable for the modern
global organization because it increases staff productivity. It provides the job satisfaction to all
the employees which directly lead in decreasing labor turnover.
Advantages of democratic leadership style
 It creates creativity in subordinates.
 It provides opportunities for development and increases morale of employees.
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I
llustration 2: Democratic leadership style
Sources: (Leadership style, 2015)

CONCLUSION
From the above study it has been concluded that the In GymShark there are different
department who manages their responsibilities in effective manner. Each department of
organisation helped other functional department for co-operating each other and creating a good
environment within the system. It affected business in positive manner as-well as negative
manner. It has been also concluded that with the use of effective communication leadership and
management solved the all problem which raised in social group. Different leadership styles are
used in structure for supporting team members and increased employees morale for
accomplishing defined goals.
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REFERENCES
Books and Journals
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Bolden, R., 2016. Leadership, management and organisational development. In Gower handbook
of leadership and management development (pp. 143-158). Routledge.
Goryakin, Y. and et.al., 2015. The impact of economic, political and social globalization on
overweight and obesity in the 56 low and middle income countries. Social Science &
Medicine. 133. pp.67-76.
Holten, A.L. and Brenner, S.O., 2015. Leadership style and the process of organizational
change. Leadership & Organization Development Journal. 36(1). pp.2-16.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review. 5(5). pp.1-6.
Mohiuddin, Z.A., 2017. Influence of Leadership Style on Employees performance: Evidence
from Literatures. Journal of Marketing & Management. 8(1).
Najam, A., Runnalls, D. and Halle, M., 2016. Environment and Globalization: Five Propositions
(2010). The Globalization and Environment Reader. p.94.
Peker, S., Inandi, Y. and Giliç, F., 2018. The Relationship between Leadership Styles (Autocratic
and Democratic) of School Administrators and the Mobbing Teachers Suffer. European
Journal of Contemporary Education. 7(1), pp.150-164.
Solaja, M.O., Idowu, E.F. and James, E.A., 2016. Exploring the relationship between leadership
communication style, personality trait and organizational productivity. Serbian Journal
of Management. 11(1). pp.99-117.
Zhang, J. and et.al., 2015. The effect of leadership style on talent retention during merger and
acquisition integration: Evidence from China. The International Journal of Human
Resource Management.26(7). pp.1021-1050.
Online
Leadership style. 2015 [Online]. Available Through:
<https://www.verywellmind.com/leadership-styles-2795312>.
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