Comparative Management Analysis: Next Plc and Frasers Group

This report offers a comparative analysis of Next Plc and Frasers Group, two prominent British retail companies. It delves into their financial and market performance, examining trends and key metrics. The report also explores stakeholder management, including the roles of staff, shareholders, and customers. Furthermore, it investigates corporate governance issues, with a focus on the profiles of the CEOs and Boards of Directors of both companies, highlighting conflicts of interest, ethical violations, and oversight issues. Through this comparative lens, the report aims to provide insights into the management strategies and practices employed by Next Plc and Frasers Group, offering a comprehensive overview of their operations and governance structures. The report also aims to understand the financial performance of the two companies by comparing the previous years' performance.

THE PRACTISE OF
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
Financial and market performance.........................................................................................................3
Staff, shareholders, customers, and other key stakeholders..................................................................5
Corporate Governance issues, including an analysis of the profiles of the CEO, and the Board of
Directors.................................................................................................................................................6
CONCLUSION...............................................................................................................................................8
REFERENCES ..............................................................................................................................................10

INTRODUCTION
Management is a business practice that ensures the continuity and growth of an
organisation. Without the proper management the organisation cannot face the challenges and
could perish with the ever changing market. There are several factors that are to be considered
while managing an organisation or a company (Al-ahdal and et. al., 2020). These factors are, the
competition in the served market, the target customers, external factors, internal factors, trends
and changes that affect the company, promotion and marketing. All these factors are to be
considered in the process of management and appropriate strategies should be made accordingly.
This report is based on the analysis a comparative analysis of Next Plc. and Frasers Group. Next
Plc as the name suggest is a private limited British company that serves in the clothing industry,
footwear and related home products. Its prime competition in the market is offered by Arcadia
group, Debenhams and Marks & Spencer. The other company that has been mentioned is Frasers
group, it is a retail company that primarily deals in the sport brand and textile industry. There is a
branch of the group that deals in the electronic and hence the Frasers Group is a company that
has operations in multiple industries. In this report through the comparative analysed of the
discussed companies from the Plc type organisation an attempt to better understand the
management of the companies is made. This report consist of the the segment wise comparison
for example financial and market performance of these two companies of the past years and
along the changing trend is compared (Barauskaite and Streimikiene, 2021). The size and the
scope of the two companies along with the analytics profile of the CEO is compared in order to
understand the management practice of the two companies.
MAIN BODY
Financial and market performance
Next is a British multinational clothing company operating in UK origin. The company
being a retail company have to face lot of competition in given marketplace of the company.
Managers and leaders of the company dedicates pure efforts towards attainment of desired
results and objectives of the company by formulating various plans as well as strategies within
the organizational structure of an organization. In the current business environment, wherein
manager of a business firm has not only go through uncertainties in given business environment
but also has to deal with various competitors of the company offering similar products as well as

services in provided marketplace of the organization. According to the recent financial analysis
of the company it is being analyzed that the company had faced some issues regarding its capital
employed in last previous years. That ultimately had caused impact on it profit margins and
earning per capital for the firm. Managers and leaders of the firm with a view point to increase
business sales as well as performance in given marketplace of the company uses different
techniques and tools for enhancing performance of business enterprises by ensuring delivering
up of effective quality of products as well as services to valuable customers of the company.
Moving forward to performance analysis of the workforce, Next is a profitable company and
these have been increasing over the years (Barka and Legendre, 2017). A company that makes
significant net profit means it has made all its expenses and has some that is left for the
shareholders. Next made £473.1 million, up from £427 million the previous year. This cannot be
said to be good or bad since it is only one company that is considered in this case. Given that
there are figures that compare multiple years, performance of the company cannot only be
compared to itself in these years. That is the function of ratios and Next can be said to be doing
good given the fact that it is increasing in profitability.
Frasers group plc is an another British retail group which is named after British
departmental store chain, House of Frasers. Respective company is well known for trading
predominantly under sports direct brand which operates its operational activities in both online
as well as physical outlet. The concerned management department of the business firm operates
its business activities in virtual as well as non-virtual business strategy. By conducting virtual
business strategies helps management of the firm to operate in comparatively large market area
and also dedicates it operational activities in more effective manner. Financial as well as market
performance of the firm had being declined by comparing previous years’ performances of the
workforce. Concerned departments of the business firm had dedicated pure and best resources
for formulating effective plans as well as strategies of the business firm with regards to ensuring
better productivity of the organization (Davidson and et. al., 2017). Financial department of the
firm is being guided to distribute and formulate budgets for each concerned department of the
company in effective way. It will guide better reach of an organization and will also eliminate
various loop holes towards attainment and carrying up of respective operational activities of a
business firm towards attainment of desired goals and objectives of an organization. With
addition to that, taking effective financial decisions and formulating more effective business

strategies would help in grabbing demands of valuable customers of the business firm by
increasing brand value of various products as well as services being produced by a business firm.
Moreover, managers and leaders of the firm have taken responsibility to carry its operational
tasks of the organization firm by ensuring better utilization of resources of the firm and also
ensure better working of the firm in various dynamic situations and uncertainties in respective
business environment of an organization (Gök and Peker, 2017).
Therefore, by analyzing financial as well as marker performances of both the company, it
could be analyzed that management department of both the firm can boost performances of
respective business firm by taking more effective way and building strong strategies in order to
evaluate better functioning of a business firm.
Staff, shareholders, customers, and other key stakeholders
Next plc is a multinational clothing company and is headquartered in England.
The company has over 2000 plus stores in all over United Kingdom and is also listed in the
London stock exchange. The company is a public limited company, it is owned by J Hepworth
and son. The company has a strong hold amongst its investors in the market. The company took
over Marks and Spencer's in 2014. The public trade the market shares of the company through
the stock exchange, the company faces the situation of crowed trade. The largest shareholder of
the company is FMR LLC,with 12% the ownership and Black-rock. Inc. is the second largest
shareholder with 9.9% of ownership. The institution owns half of the company and has a very
momentous power in the market. NEXT company gave 10% ownership to the general public,
they may not have a say to change any policy of the company. As well as Insiders that is the
members of the boards also has a meaningful stake of UK£85m, the top level managers are a part
of board themselves (Haezendonck, Willems and Hillemann, 2017). As the company grows it
will increase its public ownership and will decrease the Insider ownership in the company. Huge
institution will hold a big amount of ownership in the company. On the other hand Frasers group
is a British retail group and is owned by British departmental store chain also known as House of
Frasers. The company is famous for its sports direct brands and products in united kingdom.
Mike Ashley is the founder of the group, and he continued to hold a great amount of stake of the
company. The key people of this company is David Daly the chairmen and the founder as well as
CEO Mike Ashley (Herwartz and Niebuhr, 2017). The company is also listed in The London

stock exchange and has a huge number of investors investing in the institution. The public shares
are also more than that of Next plc.
The insiders hold less number of stakes as compared to that of Next, as the company grows the
insiders invest less in the company's stakes. The Frasers group consist of brands like Usc
sports,etc. Phoenix Asset Management Partners Ltd is the largest shareholder with 7.9% of
ownership in the institution and Odey Asset Management LLP is the second largest shareholder
with 5.53% of ownership in the company (Park and et. al., 2018). The company has announced
that C.banner will acquire 51 per cent of the stakes in the company and the sale of the company
is expected to grow by 50 per cent in the market. The company has helped grow its stakeholders
and has faced £171m of floating rates.
Corporate Governance issues, including an analysis of the profiles of the CEO, and the Board of
Directors
Corporate Governance is considered as an effective system and structure by which
organisations are directed & monitored. Boards of directors of the organisation are responsible
for the regulate and governance of their organisations (Rebs, Thiel, Brandenburg and Seuring,
2019). The role of shareholders is precious for the organisations because they all are liable to
appoint the auditors and directors and help to satisfy so that an appropriate governance structure
can be placed in an organisation which will help to improve the performance of the organisation.
Corporate governance mainly consider the involvement to balance the interest of organisations
stakeholders like shareholders, executives, senior executives, suppliers, customers , government
and financiers etc. all the essential to maintain the corporate governance system effectively. It is
a facts that if corporate governance structure affected then various issues of corporate
governance will occur such as conflicts of interest, oversight issues, accountability issues, issues
in transparency and ethical violations issues etc.
Corporate Governance issues in context of Next plc and Frasers Group
The description of Corporate Governance issues in context of Next plc and Frasers Group
are discussed below -
Corporate Governance issues of Next Plc

Next plc is most famous British multinational retailer organisation that mainly deal with
clothing, home products & footwear (Salehi, DashtBayaz and Khorashadizadeh, 2018). This
organisation founded in 1864 by the Joseph Hepwoth and headquarter of this organisation
situated in Enderby, UK. Simon Wolfson is the CEO of the Next plc and Micheal Roney is the
Board of direct of this organisation.
 conflicts of interest – This issue faced by the various organisation that can affect the
whole structure of the organisation. Conflict among the employees can affect the whole
performance of the employees and also influence the productivity of the organisation so it
is important to resolve these issues so that organisation easily practice the corporate
governance for the welfare of the organisation.
 ethical violations issues – This issue also considered the most prominent issue that is
need to avoid this because this issue affect the whole internal and external situation of the
organisation so that it is important for the CEO and Boards of directors of the Next plc to
take care about this issue need use working strategic practices so that this issue easily
resolve without any disturbance.
 oversight issues- This issue also identified by the various organisation as a corporate
governance most affecting issue that provide the negative impact on the working of the
Next plc organisation. CEO and Boards of directors of the organisation are responsible to
resolve this issue effectively.
Corporate Governance issues of Frasers Group
Frasers Gorup is the British retail group that founde din 1982 by the Mike Ashley and the
headquarter of this organisation is situated in Shirebrook , England (Sırma, 2019). There are
more than 19962 employees are working in this organisation. Mike Ashley is the CEO and Chris
wootton, David Daly are the board of director of the organisation.
 accountability issues - It is analysed that it issue also faced by the various multinational
organisation. This issue create the problem in the accountability in the employees of the
organisation so that they are not even want to perform well it can affect the whole
performance of the organisation and affect the corporate governance structure negatively.

CEO and Boards of directors of Frasers Group are responsible to take care about the
accountability of their managerial directors and other staff members.
 issues in transparency – This issue create massive problem for the organisation so it is
essential to focus to improve the transparency of the organisations, it will help to build
the effective brand image of the organisation. CEO and Boards of directors of this
organisation need to pay more attention to develop and maintain the transparency of the
organisation so that corporate governance system effectively follow.
 ethical violations issues – This issue affect the environment of the organisation and there
is a need to avoid this issue so that organisation can stop the violence. CEO and Boards
of directors of Frasers Group need to take care about this issue need use working
strategic practices so that this issue easily resolve without any disturbance.
CONCLUSION
It is concluded from the report that the management practices require the knowledge of
the market the target customer and the internal and external factors that affect the company. Also
the area that could affect the company in future must be very carefully analysed. Through this
report it is understood that the competition in the market affects the growth of the company and
it because of the competitive advantage a company could have lead on the other in terms of the
growth and customers satisfaction. The future of the company must be operated in an
environmental friendly way that helps the company create a brand image to attract the customers.
The analysis current market performance can inform the executives about how well can the
company adapt to the changes of the market. There must always be an initiative takes to analyse
the external factors because it is the external factors that cannot be changed but the company will
always have to adapt to it. Having an exact idea about the strength and weakness of the company
gives a additional advantage as the company should always make strategies based on its own
strength. Through the analysis of the market and its competition the CEO can take proper
adjustment according to the performance of the company over the past years. The functioning
and structure of the company must always align in order to get the result and achieve success for
the company. It is task of the CEO to make strategies and adapt to the changing environment in
order to achieve success and growth for the company. It is also through the vision of the

company that enables the employee and workforce of the company to stay motivated and work
effective to produce results for the company.

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