Harrods: London's Luxury Department Store Sold to Qatar in 2010 - Essay Sample

Introduction

Harrods is a popular department store located in London. It is known for its variety of products. The business began as a mere partnership which was later dissolved. For a long time, there was speculation about the future of the business. Rumors spread that the store was up for sale, but there were rubbished. However, it did not take long before the business franchise was sold. As of 2010, the store was under the state of Qatar. Regardless of the change in ownership, the store has continued to dominate the market with its products. Additionally, the new management has added more value to the stores. As it is now, the business sits on over a five-acre piece of land.

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The Harrods store is founded on missions, values, visions as well as business objectives. Among the most common is their slogan that is coded in Latin. In English, it translates to "all things for all people, everywhere." This particular statement forms one of the pillars on which the business is established and operates. The mission of the business is to provide clients with solutions that correspond to their needs as well as developing a formidable approach while providing services to the customers. The organization aims at maintaining a personal rapport with each client by meeting customer needs above the global standards.

The recent growth in business can be attributed to the approaches that have been employed by the new owners. Unlike the past when the store used to have a cultural setting, it has now changed into a global brand. People are traveling from all corners of the world to come and witness the products present in the stores. In as much as the new management has come up with new regulations, the values set by the processors still on to date. The main aim of the store is to provide a link between the manufactures and the customers without any exploitation. According to Scott and Walker (2010, p. 1106), the business aims at providing "quality products at affordable prices but still maintain its profitability." Customer relations and service has been the core of the business. The business has mastered the art of excellent customer service thus the booming business.

Apart from the aims and objectives of the business, the management has also been vital in the enlargement and continuity of the company. They are the people entrusted with policy formulation and enforcing them. The human resource team, marketing, and finance teams are the most vigorous in the business setting. The HR has to ensure that the rights of the workers are taken care off while the customer needs are met. The marketing team is pivotal in the growth of any business. They are the people mandated to find new customers for various products. The finance sector is entrusted with the finances of the institution. They are supposed to fund multiple projects when need be. Harrods store has made good use of technology to enhance its business (Jahshan, 2018). Social media has become a new way of attracting new customers especially the youth. Reasonable objectives and excellent customer relationship have been essential for the growth of the Harrods store business.

Harrods Store Marketing

Harrods store for several years has remained at the height of British luxury retail due to its marketing. Thus, leading to the attraction of millions of loyal customers across the world due to its unrivaled product selection, the world-class services are given, historic setting and innovative theatre. The store now is one of the most famous luxuries retails in the globe. As the best luxury retail, it has seven floors with 330 departments thus showcasing the high-end fashion and accessories to the latest technology and homewares (Dennis, 2013, p. 338). Customers can enjoy exclusive services attracting a large number of clients which includes By Appointment Personal Shopping and the Penthouse. The business continues to invest more due to its philosophy and motto: Omnia omnibus ubique (everything for everyone, everywhere) and thus the store continues to surpass the desires and the expectations of its customers.

Harrods store has championed the significance of creativity and ramped up their level of investment. The store in two years has catered for the requirements of the modern luxury shopper with a PS200m redevelopment of the store. Due to its investment, the Knightsbridge store witnessed gross transaction growth value by 6.8% to PS2.1bn in February 2018 while the turnover is increasing by 4.6% to PS862.5m. After taxation, the luxury retail witnessed 8.7% profit rise. The store has redeveloped recently expanding its market and experience of the customers. The developments made by the company include the opening of the men's super-brands floor, redevelopments of food halls and the completion of fine watches and jewelry department.

When the business starts thinking more about the customer more than the product then it is heading in the right decision. Bespoke events and one-to-one conversations play a significant role in intensely loyal and private high net worth customers.

The main aim of the Harrods store is engaging Chinese consumers while they are outside the UK by enabling them to transact directly using WeChat. The Marketing manager of Harrods store desires to fulfill the lifestyle needs of the customers that regularly visit the department Dennis, 2013, p. 339). Therefore, there is no need for lumping customers into segments concerning their purchasing behavior. As a result, segmentation in the department is not encouraged as it makes the marketing team lazy. Collection of incredible niches of the product is vital, and Harrods cannot be put into any neat group, and hence the product approach is more customer-centric.

Harrods store protects the brand heritage for the future of the business. Much marketing done at Harrods is not a "fancy advertisement or above-the-line marketing, but it mainly relies on personal interactions and one-to-one bespoke relationships" (Chandon et al., 2009, p. 15). Harrods is a brand that has millions of customers and a collection of niches. Harrods is increasingly exploring in the digital environment where it has shown to doubling the retailer's online sales conversion rate when it has been deployed. With Hills as the new chief marketing officer with the team are thinking about the role digital plays for Harrods store in terms of discovery and commerce. More sales go through WeChat, and hence the store has increased the use of the website in marketing. With the new brand to be introduced known as Art of Color that champions the joy and optimism which will be vital to the customers and the sore at the current times (Chandon et al., 2009). In summation, affective DS ads increase shoppers' approach to the store, and it generates customer loyalty from the first time the customer visits the store.

Harrods Finance Function

Harrods company considers financial outcomes policies, HRM outcomes, and organizational behavior changes to establish a better financial function that incorporates collective workforce and employee involvement (Chandon et al., 2009). The economic function creates a better goal-oriented plan concerning financial reward.

Harrods Increases the Capital Employed

In that manner, the organization's human resources function according to the stipulated organizational development concerning employee compensation and performance appraisal. Harrods establishes cost and profit centers by seeking to enroll its employees into a suitable financial compensation plan in the anticipation to champion for profit maximization (Chandon et al., 2009).

According to the financial plan of Harrods, it is evident that its HR seeks to establish a proper working revenue accrue from its trading plan. Besides, employee engagement in the profit maximization is associated with a well-established compensation plan. The HR department calculates revenue by subtracting the total cost from the revenue.

Harrods establishes a one-year budget concerning sales revenue and costs as a strategy to generate a trading plan. In that perspective, the facility can work within the budget through a month by month plan. There is the use of budgets, credit controls, and budget forecasts systems to establish a proper working business financial resource system conclusively (Chandon et al., 2009). The facility is also able to create an adequate working capital that upholds current assets and liabilities as a plan to determine a debatable issue relating to circulating capital. Day to day expenses are also committed to ensuring that an organization works within the stipulated measures.

A plan to replace assets dating more than one year is put in place to prevent a situation whereby work stops due to the failure of assets. The specific financial reporting objectives of Harrods will be the adaptability of the new corporate governance and culture in line with the economic benefits being realized in the new merger. Since Harrods is the largest merger, the financial reports required to be made are concerned with the required goodwill towards the new financial operation and the best ways to attract more customers (Wu & Patel, 2015). To establish a proper financial support system. Implementation of new technology in both general and sophisticated financial records to prevent any phishing and illegal acts of intellectual theft.

Determination of the best financial approaches is part of the most fundamental issue that the facility needs to take part to come up with the essential and most workable revenue collection approaches. Since in this present-day financial operation there has been a rise in financial theft, the accounts will face the challenge of carrying out the most popular strategies to minimize theft through the use of some complex financial management and accounting approaches (Wu & Patel, 2015). Financial re-engineering approaches will need to be put in place since mergers usually face the problem of alluding to the best financial systems approaches. Amid modifying the company's capital structure, the accountants will have to come up with a clear ratio analysis to be applied in the financial mechanisms.

Conclusion

In conclusion, the business began as a mere partnership which was later dissolved. It has been noted down that for a long time; there was speculation about the future of the business. They are the people entrusted with policy formulation and enforcing them. The human resource team, marketing, and finance teams are the most vigorous in the business setting. Various factors enable Harrods company to survive in the market. For instance, the store is founded on missions, values, visions as well as business objectives. Among the most common is their slogan that is coded in Latin. In English, it translates to "all things for all people, everywhere." The HR has to ensure that the rights of the workers are taken care off while the customer needs are met. The marketing team is pivotal in the growth of any business. They are the people mandated to find new customers for various products. The finance sector is entrusted with the finances of the institution. Rumors spread that the store was up for sale, but there were rubbished. However, it did not take long before the business franchise was sold. As of 2010, the store was under the state of Qatar. Regardless of the change in ownership, the store has continued to dominate the market with its products. Additionally, the new management has added more value to the stores. As it is now, the business sits on over a five-acre piece of land. On the other hand, it has been found out that more sales go through WeChat, and hence the store has increased the use of the website in marketing. With the new brand to be introduced known as Art of Color that cham...