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BTEC Business Level 3 Unit 1 P3

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BTEC Business Level 3 Unit 1 P3

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BTEC Level 3 Unit 1


P3 – how two organisations are organised

Organisations:

An organisation structure chart shows us the structure of an organisation; organisations must have
an organised structure that will allow them to meet their targets. It is a system, which defines a
hierarchy within an organisation. This structure was made to define how an organisation operates
and how an organisation reach their targets and expand in the future. The structure is portrayed
using an organisational structure chart.

Urban Outfitters mission statement: “Lifestyle merchandising is our business and our passion. The
goal of our brands is to build a strong emotional bond with the customer. To do this we must build
lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis.
Our customers are the reason and the inspiration for everything we do.”

Source: www.urbanoutfitters.co.uk

An organisation chart shows the management structure and the main departments within the
organisation, the relationship between departments, the reporting structure, the span control of
each employee, which is the number of people that an individual has the responsibility for. The chain
of command is also shown on this chart as well as the division of work to still be done and
establishing the lines of control and communication can be seen on this as well. New members of
staff, visitors to the organisation and the receptionist would use an organisational chart.

It shows the positions of employees within the organisation including their names, telephone
extension number and room number etc., as well as this they also show us the levels of
responsibility, the lines of communication and the lines of responsibility. They allow organisational
activities to be controlled, which avoids conflict and individuals making decisions that contradict
others.

Organisational structure means that decisions and activities can be controlled; this involves a form of
chain of command or line of control.

Urban outfitters is in the fashion market, due to fashion trends constantly changing and evolving, the
organisational structure they use is flat, therefore the managers have wider span of control and they
have less levels of management which means that the running of their business is a lot more
simplified than others. They have few levels of management, which ensure that their staff are
performing effectively in the business.

Urban Outfitters, Inc., is a retail company, which specialise in the wholesale and retail of general
consumer products. The company run under the brands Urban Outfitters, Free People,
Anthropologie, Terrain and BHLDN. UO is an apparel company, which was incorporated in 1976. The
company was originally “The Free Peoples Store” in Philadelphia in 1970, they focused on funky
household goods and clothing. The founders were two Philadelphians, Scott Hayne and Scott Belair.

Urban Outfitters is a publicly traded company, owned and chaired by Robert Hayne. He has the most
shares in the company, at 27.85 million shares. The business is also backed by several big investors,
these include: Fidelity Management & research company, Maverick Capital Ltd, Vanguard Group and
Capital Guardian Trust company.

They offer women’s and men’s fashion apparel, accessories, shoes and gift items. They currently
have 232 stores in the United States and Europe.

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