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Management report on the Morgan company

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Morgan has its own stores under the banner Morgan, and the distribution strategy of the brand is a homogenization of its distribution character. The shops are all built on the same model. The same pattern is observed in all merchandising stores; the assortments are the same everywhere as are the prices charged. This strategy allows a consistency that facilitates the storage of the clothing brand and the customer.

One goal of Morgan is to develop its communication with store promotions at the point of sale, for display or for specific operations like "Operation Valentine" or "prices suddenly of heart." Indeed Morgan is today facing a problem with conversion rates. This is the ratio between the number of people who enter the store and purchase, and the number of people, who simply visit without buying, or number of sales / number of visitors. This rate is very low for the brand, and it is working to develop a communication boutique brand as a means of raising it.

Morgan is a company that has so far proceeded in three stages. Before 1988: The company was a family business that manufactured clothing that did not have its own brand, but for others who worked in the garment sector. Its activity was double and differed in each specialty made by the method of weaving: the products are manufactured products, so-called "mesh" (t-shirts and sweatshirts) and products called "woven" (pants, skirts, dresses, jackets).

1988-2006: In 1988, the family business took a new turn by deciding to abandon the sale to third parties by focusing on selling its own: the clothing brand Morgan was born. This transformation has been gradual: Initially, the brand focuses on the mesh product which sells under its new brand of sweaters and t-shirts. Secondly, the activity of warp and weft is entrusted to an independent company to allow the range to complete. Wholesale is a company created to accommodate all clients wishing to buy Morgan to sell their multi-brand boutiques. Finally, Morgan focuses on creating a distribution network consisting of shops, each bearing the banner Morgan. Each shop is a specific legal entity independent.

From 2006: The need to establish a group seems to have come from the desire to control the entire distribution of Morgan. So far, each store was franchised. This meant that a franchisee owned his shop and was thus responsible for their procurement, inventory, its range, its staff. The risk was big and heavy for each store. Furthermore, this system does not allow having consistency in terms of branding.

So with the creation of each group Morgan shops will eventually be affiliated: the affiliate is no longer under the responsibility of the management staff, rent and other charges from his shop. Inventory management, assortment, presentation products belong to the group.

Before discussing a strategy study of Morgan, it is necessary to first present the structure of the company and its performance. Morgan structure is actually at two levels: the functional and organizational level.

This structure would be called "decentralized divisional structure" or "multidivisional form in M". The functional structure: The Morgan group now includes more than 550 employees. This number is growing by about 10% per year. Morgan is now a group whose major shareholders are actually members of founding families: families Bismuth and Barouch. These people find themselves at the head of the key strategic positions of the company.

Tags: Morgan Group, management report on the Morgan Group, strategy of the Morgan Group

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