MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPORE IN

TASHKENT (MDIST)

ASSIGNMENT SUBMISSION COVER SHEET

Course

Year 2 B.Sc(Hons) UOW Business & Marketing

Module

Management Theory & Practice

Lecturer

Mr. John Koh

Assignment Type

Individual

Due Date

November 7, 2013.

S/N

Student Name (As reflected in

ID Number

Passport)

Khakimova Tokhira

B101164

Submitted on Due Date (Yes/No):

Word Count

: 2189

-1-

Student Signature

Table of contents.

Executive Summary......................................................................................................3

Introduction...................................................................................................................4

Company Overview......................................................................................................5

Management Environment............................................................................................6

Planning........................................................................................................................9

Organizational Structure...............................................................................................10

Leadership.....................................................................................................................12

Recommendation to enhance business growth in that country.....................................13

Conclusion....................................................................................................................13

Reference......................................................................................................................14

Appendix.......................................................................................................................15

Executive Summary
In 1990s Gucci decided to extend beyond its mature style in creating a trendy brand as the vision of the
company that Gucci has became a symbol of world fashion with aristocratic line and no longer boring
icons. In few years the company spent a lot to gain strength. As global economic bump of 1998 is the
international expansion permitted brand development. The following report is set to enquire the
environmental management elements that helped led to the growth and development of Gucci Group
together with its management structure, organizational structure, planning and its goals. As a result of this
the report will be examining and analyzing the internal and external environment of Gucci. The report
will go ahead to understand and implement the core concepts of management and clarifies how successful
manager should make ethical decisions.

Introduction

The following report will contain the information about the management in organizations by
looking at the companys overview, management environment, planning, organizational
structure, leadership. The information will be obtained from different kinds of resources such as
text books, websites and journals.
First the report will define the term of management environment. Further, brief information of
Gucci. Then the document will cover information about planning, leadership procedure and
organizational factors form the process. The following issue also includes a few tables and
charts.

Company Overview
Gucci is an Italian fashion brand which was established in 1921 by Guccio Gucci, in Italy,
Florence. Brand has been a destination for the worlds most discerning men and women clothing
industry. The business is relied and specialized on creating extravagant shoes, handbags,
fragrances, trousers, shirts, leather literally Gucci creates the beauty of clothes. Today Gucci is
owned by French company Kering which is also known as PPR.
Gucci products are separated into various brands such as Jeweler Boucheron, luxury leather
goods of Bottega Veneta, the iconic Gucci with its visible GG logo, the top highest fashion Yves
Saint Lauren, the urban chic of Balenciaga, glamorous Alexander McQueen and Stella
McCartney. Each brand within the organization has its management organization, organizational
structure, planning, their leadership and their aims and goals. Gucci has its 425 official stores
almost all over the World.

Appendix 1

Management Environment
The management environment is a great-level of theory of your businesss network and practice
of the operation mechanism work. The concluded management environment dwells all of the
utilization and servers that are victimized to discharge time-to-time work requests representing
your business.

Management environment can be external and internal. The internal environment designation
can be referred to the factors and conditions within the organization that it has an influence on its
operations. The external environment designation includes factors outside the organization that
has an influence upon the success of the organizations goods or services.

External Environment:

Political
analysis
SocioCultural analysis

Economic
analysis

Pestile
Analysis
technology
analysis

Demographic
analysis
legal
analysis

Political Analysis:

 Changes in law and principles

Governmental situations containing civil disquiet, administrative substitutions
Their capableness to diffuse the development and the rise of their brand in the
market, which is dependent on the economy and the political conditions of the
country
September 11.
Economic Analysis
Financial crisis can lead to a massive loss of clients for the Gucci brand
The prices of Gucci Products are very expensive when compared to the products offered by
its competitors; and this has helped the organization a lot in terms of differentiating
itself from other fashion shops.
World Wide Shipping, convenient for the clients to order goods online.
Investing to the promotion

Socio-Cultural Analysis:

Move from traditional classic image to aggressively glamorous edge and

launch of ready-to-wear collection with young spirit targeting the new age
fashion client who consumes, shops, buys, disposes and buys it again.
Values: Integrity, excellence, fairness, sense of purpose,

 Beliefs: Build common understandings, work as a team, individuals must

know the details of applicable laws and regulations, no one should operate
with unethical or illegal business practices.

 Demographics: The affordable luxury market all over the global is facing the
trouble of losing sales on its leading customer group - middle class.

Legal Analysis
Worldwide procedure barriers comprised an adjustment, expenditure controls,

promotion and advertising restrictions and scarcity of infrastructure.

Pressure from the WWF Organization to ban the usage of the fur.
In June 2013, the owing French company of Gucci, officially changes its name from
PPR to Kering.

Technology Analysis
The sophisticated technology of internet and the mass media which uses the extraordinary
and special effects to make the promotion and advertising more flashy and attractive.
Gucci being in one team with the Windows Phone developing a luxury designed phone by
Gucci.
In Co-operation with Apple by designing extravagant cases for their production, this
makes the brand even more popular.

Internal Environment:
Acquisitions

Partnerships

Management

Horizontal Corporate Structure

Planning
Planning is one of the most significant undertaking managements and time management
procedures. Planning is preparing a sequence of target steps to reach the specific goals. If an
organization or an individual does it effectively, they can reduce much the necessary effort and
time of executing the aims. A plan is similar to a map. When following a map, it can be always
seen how much effort and progress has been made so far towards the project. Consider Gucci to
achieve profit, they need to manage everyone within the organization in their decision making
process through a bottom-up decision making process. It is so because it encourages the full
participation of the employees. The employees can feel their importance and their humble
opinion towards the increase growth and development of the organization, which can motivate
them to work for the organization. The planning strategy of Robert Polet , the new chief
executive of Gucci remained his plan:
Focusing on meetings with the employees
Building up a plan with the employees together
Remain a statistical plan of the preferences of their clients to dictate the trends.
Directly operate stores
Acquire and repose the struggling brands
Create value

Learning & Growth Goals:

Internal Business Process Goals
Customer Service
Customer Service

Financial Performance Goals

Accomplish Mission: Create
Optimal Value
Organizational Structure

If we rely to Danny & Daft Management (2009, p. 370), organizational structure

Appendix3

is 'The framework in which the organization defines how tasks are divided, resources are
deployed and departments are controlled. Demonstrated below chart will give a brief
information about Guccis organization chart.

Appendix4

Guccio Gucci
Founder

Robert Polet
President & CEO

Frida Gianni
Creative Director

Domenico de Sole
Chairman of the Gucci Management Board

Tom Ford
Creative Director

Acquisitions
Operational Functions

Organizational Structure of Gucci Group.

The organization structure of Gucci Grouping consists of operational arrangement where work is
classified according to their specialty such as: finance, manufacture, and merchandising.
The structure may discourage evolution of dissimilar action as strategic business entities and
restricting maybe crucial before a latest procedure approach can be assumed. In terms of its style,

the organization bids to instill its culture such as its values, beliefs and norms shared into its
fellows.

Leadership
Leadership style
A good leader is able to make staff feel involved and part of the companys success or failure
and it must represent peoples preferences. Gucci has created and defined concepts of fashion, by
focusing in these points:

Emboldening the staff members to accord fresh ideas so as to access the customer
satisfaction.

Their effort to increase sales, its brand was diluted by expanding their product offering to
mass market brand extension.

Dictating the latest fashion trends.

The concept of team management is solitary experienced in the selling and merchandising
subdivision as they het to exercise in habituation of one to another.

Polet decentralized the Gucci Group for its increase and allotted a team of CEO and Creative
Director for each brand and item of their clothing line. He was accomplished to abbreviate the
duration to market the latest collections to stores from distinct months down to six weeks. Polet's
leadership style, with his experience form additional industry, is also groundbreaking and is in
strain with the client. This feasibly will further move Gucci to be more competitive.
Quality is remembered long after price is forgotten Guccis slogan.

Recommendations to enhance business growth in that

company.
Representing Gucci Group to be accomplished in performing its diminutive and continued
designation purpose, they need to develop on their management style to a more democratic styke
whereby the fellowship of the organization can be accomplished by joining into the decision
making process.

The organization also requires attaining from other organizations such as Zara in its policy and
great-end kind within the organization. In order to be trained in new ways of behavior within the
organization and substitution the want to create, that desires helping them in breakthrough of
their profit

Conclusion
In

the edge the winner of any

organization

depends upon

continually suggestion products that its client pedestal desires.

its

facility to

Gucci seems to have gotten

this substance and has began a remarkable convalescence under mentioned its near in the 1970's.
Distinct from other fashion houses, Gucci has managed to break the type from its initiators.
In behavior so, the Gucci flame yet burns without the tremendous costs of affirming the
appearance and overgenerous lifestyles of personage author.

Reference
th

Stonar, J. A. F. and Freeman, R. F. (1989). Management , 4 edition, Englewood Cliffs:

Prentice-Hall
www.slideshare.net
Woyke and Gordon, J (2009), Guccis High Style and Growing Revenues;
Forden, S.G (2001), The House of Gucci: A Sensational Story of Murder, Madness,
Glamour, and Greed, New York: Perennial pp. 264-265

Carreyrou, J and Ball, D (2008), Unilever Executives Gets Top Gucci Post
Learning Fashion Business is One of the Main Task Facing New CEO Polet, The Wall Street
Journal Europe

Forden, Sara Gay. The House of Gucci: A Sensational Story of Murder, Madness, Glamour, and
Greed. New York: William Morrow, 2000.

Appendix

1.

Gucci Logo

Politic
al
Socio- analy sis
Econo
Cultura l
analysi s
mic analysi s
Pestile
Analysis

technol
Demogr
ogy analysis
aphic analysis
legal
analy
2. Pestile Analysis Char
sis

Gucc
io
Gucc
i
Foun

Learning & Growth

Goals: Internal Business
Process Goals Customer
Service
Domenico de
Sole

Robert Polet
President &
CEO

Frida Gianni
Creative
Director

der

Tom Ford
Creative
Director

Chairman of
the Gucci
Management
Board

Acquisitio
ns
Operation
al
Function
s

Customer Service

Financial Performance Goals

Accomplish Mission: Create Optimal Value

3.

Planning
Organizational Structure Chart