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Lewis D’Arcy 22771867 An assignment on Victoria Beckham, with evaluation of its internal culture. Using relevant theoretical perspectives, models and factors. Page 1 of 10 Lewis D’Arcy 22771867

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Page 1: Victoria Beckham Assignment 1

Lewis D’Arcy22771867

An assignment on Victoria Beckham, with evaluation of its internal culture. Using relevant theoretical perspectives, models and factors.

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Contents Page

Company Introduction – 1Contents Page – 2

Assignment One, Victoria Beckham – 3 – 5Bibliography – 6Appendices – 7

Appendices One - Four, Theoretical Models – 7 – 8

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Culture is an unavoidable social influence in our personal and professional lives. So how does this vary in individual organisations? This assignment will examine a top individual designer brand, which employs 200 people internationally with headquarters in both London and New York. The assignment will analyse and evaluate the organisations cultural environment, internal cultural underpinnings and discuss any innovations which too, have contributed to them. The founder’s hard work and meticulous design have turned her first collection of ten dresses into a fashion kingdom. As the organisation continues to grow, ‘it seems no bounds to what Victoria’s team can achieve’ (Council of Fashion Designers, 2015: 48).The silhouettes of her collections are so flattering that just about every celebrity in Hollywood has this brands dress in her closet. The founder’s work ethic extends to giving back too. As an international goodwill ambassador for UNAIDS, she has raised millions to benefit HIV and AIDS charities including amfAR, the Elton John AIDS Foundation, and Mothers 2 Mothers.

Given that all divisions of business are different, one common theme to exist throughout is cultural factors. In regards to the company in question, these factors will impact on where people shop and ultimately, their buying decisions. As this brand is exclusively Womenswear the clearest cultural factor is gender. As a result of this, the reach of potential sales is therefore minimized. Following on from gender, highlights another relevant cultural factor, status. Not all women are financially equipped to purchase a designer garment, especially since the financial recession of 2008. A third equally significant cultural influence is Religion, religious ideologies are built on strong foundations which must be adhered to. This can include fabric and length requirements, colours or patterns. Edward Grovewell (1991) developed ‘The G.L.O.B.E Project’ in order to explain how individuals influence and motivate others to either contribute to an organisation through purchase or to shape the way they think about something. As the brand in question competes in a heavily vain environment, having the ability to influence is critical to stand out. Other relevant cultural factors include sub-cultures, negative preconceptions and geographical locations (See Appendices One).

Indeed, Cultural perspectives do encompass every aspect of human life, they shape how relationships happen and the ways in which we communicate. The cultural perspectives we have become accustom to will differ between each person, but nevertheless they frame how we respond to such stimuli. Relating to the organisation in question the three most prominent are society, country and ethnicity. Society promotes different reactions in different people, some may view this brands garments to be overpriced and therefore be reluctant to pay such a premium figure. William Hall (2000) documented how society shows fashion as a constantly evolving system which was once a female dominated industry, left-wing fashions have now conquered the global markets and the youths of today notice this shift. According to The Telegraph (2015) the global fashion industry made in excess of £612 Billion in 2014, “The fashion industry is one of the main spearhead industries which are forces to be reckoned with, every year they outperform the automobile and engineering sectors by large amounts” (Amor, 2015: 102). This quote by Amor summarises society as a direct influence on sales and ultimately the ever expanding fashion industry. Society provides a clear link between factors and the culture of the brand in question. The brand displays a ‘Market Culture’ which emphasises competitiveness between not only other designer brands but between the women buying these products. This idea of outside culture although aggressive is relevant as people use money and desirable items as weapons like that in battle. Secondly to be explained is country. This is a crucial perspective because cultures amongst countries can differ vastly. Fuaki (2015) stated how culture

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affects almost every aspect of the fashion industry, from a simple idea to it being produced on a mass market scale, a garment has the power to not only change a culture but to birth a new one. The founder being a British citizen helps provide understanding as to why the majority of the sales take place here in the United Kingdom. Ethnicity is the final cultural perspective to be discussed. This being because, the brand is a heavily British influenced. The garments purchased in the United Kingdom aren’t always of taste to particular ethnicities. Harold Koda discussed in his novel “Savage Beauty” about how the founder effortlessly follows through on her promises stating ‘Empowerment is Victoria’s brands mantra, season upon season she achieves this with ease’ (Koda, 2011: 212). This mantra could be seen as a key marketing strategy for the brand through adapting desirability to fashion at such a premium level internationally. An example of ethnical differences influencing sales is Saudi Arabian women, life in the UAE contrasts hugely compared to British life, relating back to the cultural factors explained before. However, ethnicities are crucial parts of the design process for the brand, frequently taking inspiration from different cultures and countries. As a result, products become valued in other societies, ultimately leading to a consumer purchase.

Organisations require change for many reasons, it can stimulate the spark of enthusiasm between workers, promote growth or deflect away issues possible to occur as a precautionary measure. The most revolutionary organisational change to affect the brand, is the introduction of an operational overhaul with regards to her teams working principles, norms, expectations and habits. As the brand centres heavily on creativity and design aspects, the founder produced a system to maximise her workforce’s potential, in 2015 the company introduced new working patterns named simply as “Two On, One Off”. Whereby staff worked for two consecutive days then where rewarded with the next day off to promote relaxation hereby stopping energy levels dipping thus creating a universally harmonious working environment. This idea can be seen as revolutionary, with regards to the founder from a personal perspective her workforce will be energised and in a positive mind-set whilst also making workers central to the business promoting trust and respect between herself and her team. As the concept has danger to leave a department potentially short staffed in line with the flexible rota the founder introduced compulsory cross training whereby members of staff are sent, free of charge on courses in areas such as HR, advertising and people management. This idea not only facilities for staff in their personal growth but it benefits the company in the long run as her workforce are multiskilled and ultimately become less dependent on one another promoting fluidity amongst departments. Further on from this, the CEO implemented “Free Food Fridays” whereby members of staff working on Fridays in both her store and HQ would be reimbursed up to £13 to cover the cost of lunch, this change helps project positive behaviours onto staff making them psychologically more inclined to show respect to both the founder and one another. Following on from the ideas surrounding cultural perspectives, comes the types of culture these coincide with. The founder centres her daily operations around a power culture method of work, whereby she will set daily department targets which must be met. This implementation will see the appointment of a section leader to combat simple difficult which may arise, this as a result allows the founder to continue on with other work. This example of power works closely alongside the hierarchy type culture concept which the brand founder also displays, she uses her position to implement targets and set goals that the masses will respond to. Equally as relevant, is the idea of a clan type working practice. Following on from the change event the founder wanted to centre her working culture on community and being able to have a life outside of work (See Appendices Two & Three).

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The founders brand can be seen to use theoretical perspectives in its daily operations, the three most relevant perspectives are, the functionalist, the conflictive and the interactionist.From a functional perspective, the brands clothes are very expensive. In reality a consumer could find alternatives at a far lower price point. However the organisation manages to remain at the helm of the market. Another aspect of the functionalist perspective is the latent function. Murray explained the latent function as ‘This function summarises how people’s behavioural elements and aspirations subliminally overtake daily situations unbeknownst to the person in question’ (Murray, 2014: 15). This function is relevant with regards to a purchase of designer clothing. As consumers succumb to the luxurious items, the division of culture amongst classes continues to widen. The second theoretical perspective is the conflictive. The conflict perspective is used to study how we shop as consumers. Crossman (2013) stated how shopping habits centre on capitalism. That our social lives are that of a war torn battle grounds where individuals, often subconsciously influence each other’s consumer behaviours. Jennifer Baumgartner evaluated the industries culture over the course of several years. Jennifer stated that ‘Clothes are the skin we can choose’ (Baumgartner, 2012: 76) this relates to designer garments as a statement not for empowerment. The final theoretical perspective is the interactionist, Quinn (2014) stated in his book “Diagnosing Organisational Culture” how the interactionist perspective is the most crucial to get right as an organisation. If the correct audience do not get access, you can face problems quickly. The way that the brand conducts business in itself promotes exclusivity, recently opening a store in Dover Street, London which requires clients to book an appointment to browse. Before creating a bricks and mortar presence, the brand traded solely through high end retailers such as Selfridges & Co. The stores founder, Harry Gordon Selfridge (1906) defined his stores intentions to “be a shopping experience that promises to surprise, amaze and amuse its customers through various levels of luxury”. This in itself further bridges the division between cultures due to the bespoke heritage of the store, which for many is an unrealistic place to shop. Thus relating back to the interactionist theory which centres on how we make a decision through physical and technological processes. A careful evaluation of alternatives must take place before the purchase of a garment priced so highly, product attributes will be assessed then attributed to the final decision. This situation can be linked to Hofsted’s Dimensions theory, where it describes the affect social cultures has on behaviours and buying habits, this links to the founders brand as “Society” is one of the main cultural factors affecting the brand with regards to purchases and the individuals who buy the collections. (See Appendices Four).To conclude, it is clear to see that the founders brand is a very culturally enriched organisation which promotes stability within the fashion industry, sending out a clear message to both its competitors and consumers alike. The founder has strict control over the organisation. Through this, it is possible to predict that it will continue to flourish and become even more successful as a result. A recommendation for the founder would be regarding how business is conducted, if expansion was planned for the future, menswear would be an obvious transition. Other realistic recommendations would be a lower priced cost option which gives the “lower class” chance to own a piece of designer clothing. After critically analysing the cultural factors and perspectives present in both the founders’ professional and personal selves. A feeling of content can be felt by both the CEO and the team surrounding her. The organisational changes already made are steps in the right direction to develop a harmonious working environment which captures creativity and promotes respect between co-workers and managers. Furthering on from this it is clear to believe that future changes will be gratefully accepted, and with plans to construct a second flagship store across the pond in New York, the founder will continue to evolve as an individual and fashion icon.

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Bibliography

Amor, M, 2015. The Idea In You: How to find it, Build It and CHANGE YOUR LIFE. England: Portfolio Penguin.

Baumgartner, J, 2012. You Are What You Wear, What Do Your Clothes Say about You? England: Da Campo Lifelong

Beckham, V, 2014. United Nations Conformance. New York, America. Cameron, E. 2013. Making Sense of Change Management. London: KoganPage. COUNCIL OF FASHION DESIGNERS OF AMERICA, 2015. Designers on Instagram

#Fashion. California, America: CFDA. Crossman, A, 2013. Sociological Insider. E-Book. Fuaki, A, 2015. A Fashion History from the 18th century – 21st century. America:

TASCHEN Production. Grovewell, E. 1991. Culture, Leadership and Organisations: The GLOBE study of

societies. Sage Publications. Hall, W, 2000. The Sixties: Mainstream Culture and Counter-culture. The Open

University, Bath: The Bath Press. KODA, H, 2013. Savage Beauty (Metropolitan Museum of Art). Connecticut,

America: Yale University Press. Morgan, P, 2015. The Sunday Times, Colum on Sunday. London, England. Murray, C.K, 2014. Master Mind, Unleashing the Brains infinite Power. Kindle

Format: Create Space Publishing. Quinn, R. 2014. Diagnosing and Changing Organisational Culture. Michigan:

America. Jossey-Bass Imprint Schein, E. 2010. Organisational Culture and Leadership. Massachusetts: America.

Jossey-Bass Imprint. Selfridge, H. (1906) http://www.selfridges.com/GB/en/content/our-heritage. Smith, E. (2015). Net-a-Porter: UK internet fashion industry can lead world.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10626165/London-Fashion-Week-Net-a-Porter-founder-says-UK-internet-fashion-industry-can-lead-world.html [Accessed 30 Oct. 2015].

The Hofsted’s Dimensions information search http://www.bing.com/images/search?q=what+is+hofstede%27s+cultural+dimensions

The G.L.O.B.E Project information search http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CDYQFjAEahUKEwiFnoHM2

UNAIDS. 2015. Victoria Beckham UNAIDS good will ambassador http://www.unaids.org/en/aboutunaids/unaidsambassadors/VictoriaBeckham

Appendices

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Appendices OneThe G.L.O.B.E Project

Value BasedVisionaryDecisiveIconicPerformance OrientatedInspirational

Team OrientatedDiplomaticCollaborative DesignersInternational ManagerFamily Team Integrative

Self-ProtectedSelf-CentredFace SaverSocialiteFashion EliteConflict Avoider

Participative CharitableUNAIDS GoodwillAutocraticPhilanthropic

HumanineModestEnvironmentalCulturally CautiousHuman Orientated

AutonomousAutonomous

Victoria works in an impressionable industry which requires strict business, personal and interpersonal management skills. As an individual she has the ability to influence, inspire and motivate others to her way of thinking, this as a marketing tool is more powerful than any adverting campaign. The power of the people is apparent and on Victoria’s side, The G.L.O.B.E Project table above shows each aspect of Victoria’s personality I feel reflects her management ways.

Appendices Two

Lewin’s Three Step Model. This model shows the process an organisation will move between in the implementation stages of a change event, an example being the founder launching revised working schedules.

Appendices Three

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Unfreeze

Move

Refreeze

Take action, Make simple changes,

Involve & innovate people

Examine status quoIncrease driving forces

for change and decrease resisting forces against

change

Make change permanent,establish new ways of doing things.

Reward desired outcomes.

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Promotes VBB in positive light Potential to leave department’s short staffed

Shows respect to staff Unnecessarily difficult rota system

Promotes harmonious working environment Costly to implement, time consuming

Pro-active well rested workforce

Greater staff appreciation Could be taken advantage of

Motivated team,in positive workingenvironment

Lewin’s force field analysis shows the driving and restricting factors which should be assessed and critically understood before the change can be implemented, is this move worthwhile, and is it possible? With regards to Victoria’s brand this step although bold is a good idea to promote the harmonious, creative and caring environment desired.

Appendices Four Hofsted’s Dimensions theory describes the affect social cultures has on behaviours and buying habits, this links to the founders brand as “Society” is one of the main cultural factors affecting the brand with regards to purchases and the individuals who buy the collections.

Individualistic This relates as previously stated before to the purchase of any designer item, a careful evaluation of alternatives must take place before an item will be bought, realistically numerous other alternatives could perform the same task at lower price points so the items attributes will be assessed before a purchase.

Masculine/Feminine The realm in which Victoria’s company operates in is completely feminine, Victoria is a Womenswear designer. This culture can be targeted using different methods to influence a sale.

Uncertainty Avoidance As Victoria’s items are garments to wear or accessories to wear with other items an element of uncertainty is present due to the questionable tastes of other people, if people have bought a particular brands handbag for a period of time which has lasted they will be difficult to persuade into making a purchase of another brand e.g. Victoria Beckham.

Power Distance Power is present and a motivating factor behind any designer purchase, women exude behaviours between friends and peers which can be highlighted or be perceived to be highlighted due to purchases, hereby creating tension between classes of women thus dividing the consumers even further.

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