1) for volunteer work and clothing recycling program. This

1)     Firstly,
for Planning, it is about defining goals, establishing strategies and
developing sub-plans. It also involves in positioning the company to compete
efficiently and effectively in their environment. Hanna Andersson have done it
by setting their objectives and goals to meet the demands of today’s market. As
Hanna Andersson started off as a family business, without deriving proper
strategies and planning, they would not be as successful as today. This can be
seen as they adapted to changes and strategic growth by appointing Phil Iosca
as the CEO in 1995 to take over the strategic lead. They had to do this as they
found themselves without a solid growth plan for the future. Good planning can
be seen from Hanna Andersson as it was then sold to a private equity firm in
2001 and has since changed ownership several times, leading to a new business
direction for the company. Also, not forgetting that Gun was still on the Hanna
board of directors. On the other hand, the decision of selling wholesale also
turned out to be positive, as it had aid the company through the hard times
during the recession. This shows that Hanna Andersson has good conceptual
skills; having the mental ability to analyse, reason and judge situations. In
addition, the company also has active stakeholder meetings to have a better
communication with all the internal and external stakeholders.


Secondly, for Organising, it is to
coordinate the activities and resources. Hanna Andersson mobilised their
resources efficiently by offering full and part time positions, paid time for
volunteer work and clothing recycling program. This allowed them to manage
their employees and retail stores effectively. On the other hand, they also
sell their products online to fully utilise the benefits of having the internet.
This resulting Hanna Andersson to transformed from a small family business to
the corporation with over 500 employees, 29 retail stores worldwide. Currently,
the online shopping website has been very successful. The company will also
continue to take care of its employees.

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Thirdly, for Leading, it is to
motivate the employees, interact with them, support their efforts and resolve
conflicts. Hanna Andersson motivated their employees by providing them
supplemental child-care reimbursement, flexible working hours, paid time off,
medical benefits and extended parental leave. Regardless of the early recession
in 1990s, Hanna Andersson continued to expand workplace benefits. Employees
would also take part in the profit-sharing plan when sales were good. This
shows that Hanna Andersson has great interpersonal skills; having the ability
to work with, understand and motivate people. Hence, this will lead the
employees to be more motivated and satisfied to work for the company. This is a
very good influence on the employees as they might share the company’s benefits
provided with their families or friends, resulting more people interested to join
the company.


Lastly, for Controlling, it is to
monitor performance and correct deviations. Hanna Andersson took corrective
action by distributing merchandise wholesale through retail partners and
starting online shopping, which become established now. Mr Adam Stone also
monitored the company by sitting in on inventory and operational planning
meetings for most of the time. This is essential as each employee have
different perspective, hence resulting more perspectives and knowledge. Everyone
will also be more satisfied. This allows him to break down the work load and to
distribute it fairly for all the employees with respect of the continuing
changes of the economy. Also, resulting him to make corrective decisions in
order not to make continuing changes so overwhelming to the company and its
valued employees.



2)     Firstly,
company leader like Iosca help facilitate change within the company by
expanding Hanna Andersson’s business through online and opening several retail
stores within the country. Furthermore, he even began distributing Hanna
Andersson’s merchandise to several retail partners. This helped increase the
growth of retail business by the company. However, even though there was an
increase in the growth of retail business, there were many key factors that
incurred along the way. These included a change in the internal processes,
technical system, inventory planning, buying to distribution processes, HR
processes and marketing communication programs. As a result, this caused some
of the internal stakeholders to be alarmed by the changes as they were afraid
the company would be greatly affected in the long run.

Even so with these changes, Iosca
remained consistent and did not change the values of the founders. He ensured
that their employee’s welfare are well-taken care of with its open management
style and good employee relations as supported in the article, “From 1995 to
2010, we retained the same CEO (Iosca) and therefore, the face of the company
and the management style did not fluctuate greatly.”


Secondly, company leader like
Petersen help facilitate change within the company by adapting to the changes
by the growth of the retail business. As a HR Vice President of Hanna
Andersson, he coordinated and helped in managing and maintaining the importance
of the welfare of its employees so that all workplace benefits remained the

Even though there were changes in the
HR processes internally such recruitment and compensation, the management style
used was still applicable to the current and new employees joining the company.
Since he has been with the company from 1994, he did remain consistent with the
values of the founders by providing and valuing all employees with substantial
welfare benefits and responding to their concerns.


Lastly, company leaders like Stone help
facilitate change within the company by often sitting in on inventory and
operational planning meeting to view and experience what all employees were
facing. This allowed him to have a better overview and understanding on what
needs to be improved within the company. Furthermore, this changes to the
company helped all employees to voice out their opinions and making better strategic
decisions. Also allowing them to strive and think more rather than resisting to
changes, as their voices are now being heard and understood. This will help
Stone to make transitions smoother for all employees.

Therefore, as we can see that this
strategy that Stone had used was consistent with the values of the founders as
there was a great emphasis on the importance of the employees and having a good
strategic planning for the company. Moreover, this was following the values of
the founders by continuing to increase the strategic growth of Hanna
Andersson’s business.



3)     The
reasons for organisational change within Hanna Andersson is due to certain
factors to remain competitive. External factors include competition from other
retailers, changes in technologies, macroeconomics and globalisation.
Technological changes are a constant threat, many companies that were unable to
adapt to technological changes have failed. As for globalisation, changes were
needed to capture new global markets. Whereas for macroeconomics, companies use
macroeconomics models to help them in deriving of economic policies and
strategies. Studying of the behaviour and performance of an economy as a whole
is vital. Thus, Hanna Andersson adapted quickly by creating an online shopping
website. This is to keep up with the technology. On the contrary, for internal
change, they also initiated management change by changing CEO and restricting
the management. This can be seen from the article as in 1995, Phil Iosca took
over the strategic lead as CEO. Also, Hanna Andersson was sold to a private
equity firm in 2001 and has since changed its ownership several times, leading
to a new business direction for the company. Whereas for Gun, she remained on
the Hanna board of directors until 2007. Management change is very important as
it can significantly impact strategy and corporate culture.



4)     Family-owned
business might face unique challenges like family members’ interest not being
aligned with the interest of business. An example will be like a family member
wants to be the CEO of the company, however he or she is not as competent as a
non-family employee. This might limit the opportunities for advancement for
non-family employees if the company decides to promote a non-competent family
member, instead of a competent non-family employee. Also in family businesses,
there may include many different business roles. Conflicts often arise because
one might not be satisfied with his or her role. Likewise, personal concerns or
rivalries might be brought over to work place. In addition, many family
businesses also face employment qualifications problems. This is because they
might have difficulties determining the guidelines and qualifications for their
family members who are hoping to participate in the business. If a
non-competent family member is being hired, such people will be hard to be
retrench as they are still family members. Another problem will be salaries and
profits, the salaries for family members normally will be higher than
non-family employees. Also, normally family members will get more share of the
profits than non-family employees. Thus, in conclusion, all these problems are
unique challenges to family-owned business. In my opinion, family-owned
business should approach ethical decision making. They should choose decisions
that will result in greatest good for the maximum number of people. Also,
choosing decisions that are morally correct. Most importantly, choosing
decisions that ensures fair and equality, be it family or non-family employees,
all should be treated equally.