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Blood Brother+
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Company Structure
Innovation Plan
University of Westminster
MA Fashion Business Management
Managing Change and Innovation
2015-2016
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Executive Summary
As new brands enter the ever growing fashion industry and succeed in
their chosen market, their need to grow as an operation becomes more and more
pressing to succeed and fulfil their customers needs (Randle, 2012). However,
this growth comes at a cost to the company as the operating costs involved put
strain on the company as well as the current employees may not feel the need as
much as the directors do (Randle, 2012; Marlow et al., 1997). This means that
the company now has the need to grow as well as mitigate and manage the
current risks involved with this growth.
Blood Brother, an urban contemporary men’s street wear brand, based in
London has now grown to the point where they feel to add additional employees
to their current employment structure. The following paper discusses the
potential to add additional employees up to 24 and then up to 36 and the risks
that will come with this change and how to mitigate them. These employees will
range from director’s assistants to technical e-commerce developers and product
developers when 24 employees are currently working, as well as a new
international sales and marketing team when 36 employees are working at
Blood Brother.
Many risks will also come with the addition of these new employee’s at
both the level of 24 new employees and at 36 employees. This risks include (but
are not limited too) low understanding, growing to fast, benefit and risk, and
exhaustion/saturation (Rick, 2011). These risks can then be mitigated and
avoided by Blood Brother with some change management by informing the
current staff of the changes that are going to take place before they happen as
well as controlling the growth at a level and monitoring it so the the company
does not risk growing at a rate that it can not maintain (Churchill and Mullins,
2001).
By mitigating and managing these risks before they take place while
growing Blood Brother can avoid many risks that come with growth of a new
company and help assure their success as they continue to expand into new
markets and grow in the current domestic market. They also will be able to
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optimize their profit to allow them to maintain their current growth rate
(Churchill and Mullins, 2001).
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Company Structure
The development and introduction of company structure is something that
all new businesses have to become concerned with as they begin to grow after
their initial startup stages (Randle, 2012). This phase of growth can be difficult
to handle as not everyone can understand and handle these ‘growing pains’ and
the addition of new staff can become difficult for new start up companies to
handle, both in operational means, and in a financial sense (Randle, 2012).
However, with the success of new companies comes the need for new
management structures and the addition of these employees to handle the
growth needed to satisfy your new customers so that your company can continue
down a successful path (Marlow et al., 1997).
Current Structure
Blood Brother is an urban contemporary men street wear brand that was
founded by two gentlemen who now run the brand as their creative and brand
directors (blood-brother.co.uk, 2016). This brand currently is sold through its
own brand run e-commerce store as well through many high end retail store
through out the world including locations in the UK, USA, UAE, and Germany
(Bergstroem, 2016). Despite Blood Brothers widespread reach, the brand
currently has only 12 employees’ who are all located in the UK and whom are
very interconnected in their job roles (Bergstroem, 2016). One employee, despite
have a job title of sales manager, may one day be required to also work with the
finance department as well as in the retail store when needed (Bergstroem,
2016). This has made it so that the distinct job roles have stopped being very
black and white (Bergstroem, 2016). The need for company growth is quite
urgent.
Below is a diagram of the current structure and titles of the current
employees within the Blood Brother organization.
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24 Employee Structure
With the need to grow their employee base becoming more necessary for
Blood Brother as their business expands into new markets the current structure
of their employee layout might also need to change. The employee layout as seen
above can grow significantly at a pace that will allow the company to maintain
their profitability, at an accessible level (Randle, 2012). Below is the current
employee layout with the addition of 12 employees (in no specified order) that
would be useful to Blood Brother in their future growth as a business.
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13. Creative Directors Assistant (£1,933.75 per month (glassdoor.co.uk, 2016)) –
Helps to deal with the needs of the creative directors, such as research, design,
and scheduling, for the director
14. Brand Directors Assistant (£1,933.75 per month (glassdoor.co.uk, 2016)) –
Helps to deal with the needs of the brand director, such as research, marketing,
and supply chain for the director
15. Sales Manager Assistant (£7 per hour (glassdoor.co.uk, 2016)) – Develops
sales contacts and networks with individuals in the fashion industry to help
connect and extend the brand reach as well as help with the tasks that the sales
manager assigns
16. Technical Specialist and Development (£1,750 per month (glassdoor.co.uk,
2016)) – Helps with the POS system and the development of the product
organization for the sales management team and flagship store
17. Brand Ambassador (£7.20 per hour (National minimum wage and national
living wage rates, 2016)) – Target customer who represents the brand in their
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daily life by wearing the brand clothing and representing the brand identity and
in turn receiving brand perks
18. Social Media Manager (£250 per month - £1200 per month (Social Media
Management, 2016)) – Develop the social media of the brand and help manage
brand identity and reach on all of the current and future social media outlets
(including but not limited to Instagram, Facebook, Twitter, Snapchat, Tumblr,
and Vine)
19. Marketing Assistant (£1,916.67 per month (Glassdoor.co.uk, 2016))– Develops
and aids the marketing personnel in their tasks by completing daily tasks such
as identifying new markets and completing research on new current target
customers and advertisement campaign data
20. Store Associate (£7.20 per hour (National minimum wage and national living
wage rates, 2016)) – A trained, dedicated, and informed associate that can help
customers in there in their current flagship store
21. Product Developer (£2,618.41 per month (glassdoor.co.uk, 2016)) – To assist
in the development of products and the management of the current supply chain
distribution channels and the development of new and more effective supply
chain and manufacturing processes
22. Textile Designer (£1,291.67 per month (glassdoor.co.uk, 2016)) – To assist in
the development of textile and designs
23. Accounting Associate (£3,577.08 per month (glassdoor.co.uk,2016)) –
Complete daily tasks and assist accountant in the finance sector of the business
to aid in the growth of the business
24. Logistics Specialist (£2,333.34 per month (glassdoor.co.uk, 2016)) – Helps
with the distribution and logistics development and assist to expand the current
international reach
The addition of these employees would not take place all at once and
would not be immediate as the cost to the organization would be immense.
Considerations such as temporary employment or contract work can also be
considered for jobs like that of a social media manager, textile designer, product
developer, and technical specialist. Doing contract and temporary employment
with employees of this nature would help Blood Brother keep their costs for
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these individuals down and also allow them to receive the benefits of the
employment of these parties during their growth stage when cost management is
considered during growth.
36 Employee Structure
The next addition of 12 more employees would see Blood Brother to the
expansion into new market expansion. Blood Brother currently has many
offerings outside of the domestic market but these are all currently managed by
the domestic management team. With the growth to 36 employees Blood
Brother can now grow to manage these markets in a way that is targeted to
those specific markets as to truly target them in a way that will benefit the
brand instead of simply being pulled out of the home market (Randle, 2012;
Alexander et al., 2008). The addition growth to 36 employees is shown below
with the description of the employee titles, in no specific order.
25. Sales Assistant (£7.20 per hour (National minimum wage and national living
wage rates, 2016)) – A trained, dedicated, and informed associate that can help
customers in there in their current flagship store
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26. Online and Retail Management (£2537.50 per month (glassdoor.co.uk, 2016))
– Help with the development of online site and retail systems and the
management of products organization systems
27. Brand Ambassador (Compensated through brand attire)– Target customer
who represents the brand in their daily life by wearing the brand clothing and
representing the brand identity and in turn receiving brand perks
28. Assistant Brand Manager (£2,676.33 per month (glassdoor.co.uk, 2016)) –
Manage brand identity in marketing, advertising, and retail environments and
assist marketing department in other researching tasks
29. Graphic Design Assistant (£1,541.67 per month (glassdoor.co.uk, 2016)) –
Assist the graphic designer to further the designs to add dimension to brand
lines by adding new designs
30. Distribution Associate (£2,333.34 per month (glassdoor.co.uk, 2016)) – Assist
in logistic and distribution decision
31. International Brand Manager (£3,449.42 per month (glassdoor.co.uk)) –
Brand Manager will work to identify and push the reach of the brand into its
international retailers and extend its current reach
32. Full Time Brand Specialist (£7.20 per hour (National minimum wage and
national living wage rates, 2016)) – Employee specialist helping customers at
department store locations (full time)
33. International Marketing Manager (£3,750 per month (glassdoor.co.uk, 2016))
– Will work to extend and launch international advertising campaigns through
international social media and specific international specific ads
34. Part time Brand Specialist (£7.20 per hour (National minimum wage and
national living wage rates, 2016)) – Employee specialist helping customers at
department store locations (part time)
35. Accounting Assistant (£3,577.08 per month (glassdoor.co.uk,2016)) –
Complete daily tasks and assist accountant in the finance sector of the business
to aid in the growth of the business
36. International Sales Manager (£3,910.34 per month (glassdoor.co.uk, 2016)) –
Helps with distribution in international sales and the continuation of growth in
international markets
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With this growth cycle, Blood Brother has the option to add an
international management team which will allow them to manage their
international brand reach in a targeted and specific way. This team will include
a brand, sales, and marketing manager. These individuals will be in charge of
management of the brands extensive international reach while the domestic
team can focus on expanding the brands current, but small home market. This
will allow for a more targeted approach to be taken in these markets so that the
brand will be more relatable in those areas (Alexander et al., 2008).
In addition to the international team, this growth cycle will also include
the addition of a graphic design assistant who will aid in the development and
growth of the pattern and prints in the current collection which is very limited.
This is currently a future trend, as seen on WGSN and LSN (WGSN, 2016; LSN,
2016) so the addition of prints will add to the appeal of the line for men.
With these additions Blood Brother will be able to hand their
international growth more effectively and also control their domestic growth in a
way that is optimized (Alexander et al., 2008). By doing this their growth can be
successful and will become more risk adverse (Randle, 2012).
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Risk Management
When a company begins the process of growth or change, there is the
potential for risk to take place (Rick, 2011). This risk can take many different
forms and can from outside the company (external risks) or can from within the
company (internal risks) (Rick, 2011). That is why organizations need to
consider change management and mitigation when undertaking large changes to
their current strategies (Rogers, 1995). When these risks, and management
plans are considered and thought about in advance many of the risks can be
avoided before they take place and contingency plans can be set up so that the
organization can be safe from failure if the circumstances were to occur (Rogers,
1995).
24 Employees Risks
As Blood Brother grows by adding employees to their current staff then
the risks to the current organization will also grow. There are many risks that
could take place but the following are some of the more likely risks that are to
take place due to the strategy suggested and the nature of the change suggested
(Rick, 2011).
• Changes to Routines: The changes to the current routine could cause
people to be resistance to due the changes in the ‘comfort zones’
• Lack of Understanding: When the workforce does not understand the
changes that are taking place they will not support the changes
• Benefits and Rewards: People could believe that the benefit of the change
does not out weight the risk and trouble that is involved in adapting to
growth
• Low Trust: When people are scared that the company can not manage the
change then they will be resistance to the change
• Fear of the Unknown: People will only actively support changes that they
believe that the changes are better than the risks of “standing still”
All of the risks will impact the company internally. This means that the
company will need to handle the changes internally before the change takes
place to effectively mitigate these risks (Randle, 2012). Blood Brother can do
this by explaining to their current employees what their new strategy will be
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before they go forward with the new changes to make sure that there is
understanding from all employees and that they have time to prepare for the
new routines that will be taking place. This will mitigate the risks that will
come from changes to routine, low understanding, and benefits and rewards
(Rick, 2011). Blood Brother can also maintain a level and steady growth rate
instead of changing everything at once. This will allow time for employees to
adjust to the new environment and will mitigate the risks that come from low
trust in the change and fear of the unknown (Rick, 2011).
By mitigating these risks Blood Brother can slowly grow their staff to 24
employees successfully without risking backlash from their current staff and
struggling with their growth rate or expansion (Randle, 2012; Marlow et al.,
1997).
36 Employees Risks
At this point, Blood Brother would have currently grown and have been
successful in doing so, however the need to expand into new markets for this
company has already taken place. Blood Brother was pulled out of their
domestic market by the demand of their product in other foreign markets.
Because of the this there are many new risks that come with growing a business
too quickly for the internal operations to handle. The following are some
possible risks that could take place if Blood Brother attempts to expand their
current operation to 36 employees from the proposed 24.
• Growing to Fast: When companies are ‘pushed’ out of their domestic
market they have the risk of growing to quickly and collapsing under the
customer demand
• Exhaustion/Saturation: When companies are ‘pushed’ out of their
domestic market they have the risk of growing to quickly and collapsing
under the customer demand
• Change in the Status Quo: When people think that other individuals or
departments are going to benefit more than themselves they are more
likely to be opposed to the changes
While the previous risks were all internal, these risks are a mixture between
internal and external risks (Rick, 2011). If a company begins growing too
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quickly and can not handle the capacity and demand for their product they are
just as likely to fail as a company that has no customers due to a cash flow deficit
(Atrill and McLaney, 2011).
Blood Brother can mitigate the risks that come with the increased
employment and growth the adapting their strategy in many ways. Some of
those could be to have management focus on employee successes and
achievements to help mitigate the exhaustion and satisfaction problem that can
occur (Callis, 2010; Rogers, 1995). It will also help mitigate the differences that
can occur in the status quo changes, by letting old employees know that their
achievements are still recognized and are going to appreciated and needed by the
company (Callis, 2010). As well acknowledgment of employees, the current
management can help mitigate risk by managing domestic growth at a steady
rate and assisting in the development of the international management team to
assisting the steady and health growth of the company as to not let the growth of
the current organization become to much for the brand to handle (Churchill and
Mullins, 2001).
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How Changes Drive Blood Brother Forward
If Blood Brother can successfully mitigate the previously stated risks after
instating a successful growth strategy, then the changes will allow the company
and brand to be driven forward into the menswear industry as a more successful
brand. These changes can affect Blood Brother directly in three ways, those
being:
• Internationalization and Expansion of the Business (Churchill and
Mullins, 2001): Instead of being forced out of the home market (UK) they
will start to be able to control their expansion and market their lines
• Department Creation (Randle, 2012): Segmentation of responsibility will
allow for job creation and training specific employees to better serve
customers leading to a higher level of customer satisfaction
• Increased Profit (Atrill and McLaney, 2011): By increasing the reach of
the brand, the sales will also increase allowing the business to grow
These changes will have allowed Blood Brother to expand their reach to many
new consumers making their business more profitable, expanding the brand
reach and market share. As well as create new departments and trained
employees to better serve their customers (Cohn et al. 2005). These departments
can continue to be structured in a flat hierarchy method or Blood Brother could
move to a vertical hierarchy method in the future by forming departments and
managers (Callis and Walmsley, 2010; Marlow et al. 1997). With these changes
the current flat hierarchy and structure could create difficult communication
channels, so the organization needs to consider how they wish to manage the
strategic organization of management (Marlow et al. 1997; Callis and Walmsley,
2010).
However, as expansion of a business occurs the operating costs of a
business increase as well. These changes in strategy also incur a large
investment into the development of the operations, which will only occur once
the sales and profit have reach a level which can satisfy the cost needed to hire
up to 24 employees (temporary, contracted, full-time, or part-time) (Atrill and
McLaney, 2011). This increased operation cost is a large undertaking for such a
small company and can take years for companies to complete and should not be
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undergone in a short amount of time (Randle, 2012). If handled incorrectly then
it could take a small company from being profitable to unprofitable quickly
(Atrill and McLaney, 2011).
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Conclusions
Blood Brother’s current employee structure has room for growth,
compensating for the companies for growth within the current menswear
industry. If the company has the ability to add up to 24 employees, then to 36
employees’ it can allow the company room to expand its current market reach as
well as the ability to grow its current market share. However, this growth also
comes with the added operation costs associated with addition of 24 new
employees (Churchill and Mullins, 2001). This growth can take many years for a
company of Blood Brothers size, and should not be rushed as to avoid the
potential of growing to quickly and becoming unsustainable (Churchill and
Mullins, 2001).
These changes in strategies can also come with potential risk that will
also need to be mitigated and managed by the organization by informing all of
their employees of the new strategies before they occur so the level of understand
is within the business is increased (Rick, 2011). They can also acknowledge
achievements of their employees to continue to maintain the satisfaction levels of
their current employees (Rick, 2011).
By mitigating these risks and adapting to the new change strategy Blood
Brother can increase their profit and sales as well as growing their brand
identity and international brand extension. These changes will drive Blood
Brother forward in many ways but in three specific ways including the
development of department and trained employees, the expansion of the brand
into new markets successfully through the addition of a international
management team, and the increased profit that will be achieved from the
expansion of the business through the increased sales from expansion. They
specifically will be able to focus on their domestic market while still being able to
expand into new marketplaces through the addition of an international
management team. This will change their expansion strategy from pull to push
(Alexander et al., 2008). Blood Brother can be more successful through the
mitigation and adaptation to these changes as well as implementation of a new
organizational growth strategy.
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