Principles of Management MANGO

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Principles of Management MANGO

Introduction:
Originating in Barcelona, MANGO is not just a tropical fruit to indulge
one’s tastes; it has become a manufacturing powerhouse and multi-
international clothing brand focusing on women’s and men’s apparel and
accessories – with a clear intention to dominate and become a fashion
empire.The MANGO is the Spanish Clothing Brand and manufacturing
company,founded in Barcelona;Catalonia,Spain by two Turkish brothers.

Mango was created with the aim of providing clothing for a young ,
urban feminine market according to the latest fashionable trends in
quality garments at affordable price and with the mission of being
available worldwide.to be able to carryout this mission is has had to base
its business model in three basic aspects;its people,process and
technology.These aspects have been key in being able to carry out their
international growth successfully and in being recognized as an example
of business success.However , in order to continue growing it must
continue to re-invent itself and create new competitive advantages that
allow it to adapt to the constant changes in the sector.

History of Mango:
In 1984 Mango opened its first shop on the Paseo de Gracia (Barcelona).
A year later, the company had five outlets in Barcelona and from this
point on, with the opening of a shop in Valencia; it began its expansion
in the domestic market. What was initially a small team had begun to
grow: by 1988, the company had 13 sales outlets in Spain. They can
differentiate between two stages in the history of their company: In the
first, from 1984 to 1995, Mango gradually gained a greater knowledge
of the business and consolidated the product and store concept, and
implemented the Just in Time philosophy in the distribution area,

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obtaining a certain critical mass on the Spanish market. In the second
stage - from 1996 to the present, they have reinforced the values of the
team and increased their investment in a new concept of complete
logistics based on speed, information, and technology. During this stage,
they have opened bigger stores and increased the rate of store openings
in other countries.

Mission:
The successful strategy that enables the Mango brand to expand as
creating “Fashionable product at an affordable price. In an environment
that appeals to the consumer.” With its mission statement being to be
present in all cities in the world the brands adoption of an aggressive
international expansion policy has served them well as it diversifies risk
and reduces dependency on the home market. The brand has also
adopted a franchising strategy. Allowing them to fuel the expansion of
the brand without talking on store ownership costs.

Vision:
By satisfying the fashion appetites of European markets since 1984, this
innovative fashion mogul lends its continued success with the vision of
establishing a fashion presence in every major city around the world.
Despite the downturn of the economy, MANGO continues to expand,
possessing a total of 2,060 stores in over 104 countries worldwide; this
can be attributed to being one of the leading pioneers of developing a
major brand and manufacturing company, utilizing technology as a
means of reaching consumers on a global scale – having established its
first online store in 2000.

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 Principles of Management MANGO

Customers and Competitors:

“The success or failure of the company directly depends on its
customers.”
MANGO customers are all over the world as it has more then 3000
stores all over the world, usually they have elite class as there customers
and people who like western fashion. The largest number of MANGO
stores are in Turkey, about 1800
MANGO’s greatest asset lies in its customers. Xavier Carbonell
indicated to us in one of the interview “behind growth, there are always
people”

“Any person or entity which is a rival against another is called as

Competitor.”
MANGO has many competitors such as:

 Zara Man
 H&M
 GAP
 Forever 21
 Asos

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Organization strategy:
“An organizational strategy is the sum of the actions a company intends
to take to achieve long-term goals. Together, these actions make up a
company’s strategic plan.”
“The retailer’s new strategy will send fast fashion into overdrive”
The secret of MANGO’s success has largely been driven by its ability to
keep-up with rapidly changing fashion trends and showcase it in its
collections with very little delay
Mango will also publish new digital content to accompany its products
every two weeks as the retailer has announced it will no longer print any
version of its catalogue, of which 22 million copies were previously

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 distributed annually. This shift to digital reflects Mango's dedication to
growing its online sector, with e-commerce accounting for 10 percent of
the total company turnover. The retailer is set to launch a different
advertising campaign each month, which will highlight the latest trends
and be presented by which every role-model best represents it

Organizational structure :
In Mango, there are two types of structure as formal and unformal
structure :

FORMAL Structure:
The formal organizational structure (also used the term organizational
structure) is an officially codified hierarchical arrangement of
relationships between different jobs within the organizational units and
relationships between departments within the organization.
At MANGO very diverse work areas exist, although all share the
character of an international fashion company. A multicultural
environment, in addition to a creative and entrepreneurial spirit, is
elements that exist in all of our teams.
Formal structure of MANGO is as following:

 Product area

Includes the different departments involved in the creation and

manufacture of our fashion collections

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 Management area

This is an extensive work area which includes all the departments that
provide support to ensure the smooth running of the organization.

 Logistics area

This focuses on the reception, storage and dispatch of goods, aiming to

allow quick distribution and automatic stock replacement to all our
stores.
The department is divided into various sections: maintenance, reception,
CML distribution, GTT distribution, surpluses, stock (hung and folded),
delivery and transport Logistics area
 IT systems area

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Its aim is to provide, maintain and serve the IT needs of headquarters,
the international offices and stores in several aspects (equipment,
programmers, solutions and infrastructure).

 Stores area

At MANGO stores you will find a dynamic and unified team which
displays great professionalism in its task of offering our customers the
best possible service, making it possible for our collections to be sold in
more than 1200 stores around the world.

 Purchasing

The principal function of this department is to manage the purchase of

finished garments in flat weave, cut & sewn and knitwear and
accessories, from both domestic and overseas suppliers

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  Design

In a company like MANGO, the Design department is of paramount

importance. It gives the brand personality and creates its most important
asset: a fashion product. MANGO has managed to create a team of
designers with personality and their own character, always aware of the
latest trends, with a great sense of creativity, yet fully aware of what the
women and men of today require.

Public Relations

The work of the department is carried out in two main areas: managing
company information, both internally and externally, and publicizing
MANGO collections in the specialist press.

Informal structure:
 Sales team
 Public Relations
 Store manager

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 Store supervisor

Planning Methodologies:

“A methodology is a system of practices, techniques, procedure and

rules used by those who work in a discipline”
Building successful brand is not a one-size fits all activity. Brand
building is both art and science, and the method of creating brand
strategy.

It’s extremely difficult to build a brand that breaks through the slush pile
of image and message consumers are drowning in today. Not only must
brand strategy differentiate your proposition from others, but according
to MANGO this differentiation must also be highly valued.

Decision making process in Mango:

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 Change management in an organization:
In order to implement new procedures, products, or any other change
with in an organization there is need to understand change
management. Change management is the process that assures one
organizational structure, including employees, can handle changes.
In Mango, to manage change following steps are taken:
 Determination and analysis of those areas is done where
change is needed
 Data and information is collected on proposed changes and
arranged in the list
 Presentation of ideas toward managers
 Managers introduce that change in front of other employees
 Training to implement that change is done within an
organization.

Leadership style:
A leader is a person who influences a group of people toward the
achievement of a goal. Different leadership styles will result in different
impact to organization, according to Mango there is open choice for its
employees to propose any information or any idea freely to there
managers and leaders. Managers listen to their employees and take
actions against these problems.

Motivational Environment:
We are motivated by our top management (CEO’s, Directors, National
Managers)
 Giving incentives to your employees by giving promotions
 All the elements of Fun, Support, Openness and care should be present
for positive work environment

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 It should be interacting and engaging in which the employees have the
opportunity to share new ideas
 The work place should always encourage participation, collaboration
and team spirit
 The work place treat and respect all the employees with care for their
unique qualities

Mango’s Heroes :
 Isak Andic
 Nahman Andic
 Designers
 Models
 National Managers

Effectiveness of organizational
communication :
Regardless of an organizations focus or size, communication is often
identified as an area for organizational improvement. Why when
sharing information is easier in many ways then it has ever been , does
communicating effectively remain such a common organizational
challenge? This approach is based on four principles these are called as
“Four Be’s”: be reliable, be honest, be timely and be interactive.

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 Be Reliable:
Organizational trust is an important weapon for an organization to work
well. In Mango there are quarterly staff meetings and sharing of weekly
newsletters. There is following through and reporting back on previously
discussed items where future actions or developments were planned.

 Be Honest:
Honest communication is key to organizational transparency. In Mango
to stay honest there is a plan for sharing further information when
available ,go far toward establishing transparency as an organizational
value.

 Be Timely:
Another way to ensure that organizational communications are relevant
and meaningful is to strive for timeliness . In Mango, there is
distribution of time as Before, During and After here work is done within
time to stay on there way of success.

 Be Interactive:
Ensuring that an organization consistently shares relevant information in
a timely and transparent manner. Here there is real engagement,
communication , a two-way and on going conversation. To communicate
with leader there is one in-person interaction for better interaction.

 Processes of control:
The control process involves carefully collecting information and to take
corrective actions, organizational control involves using

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Strategies, tactics, and operational oversight to monitor and improve
company processes. It is the primary goal-oriented function of
management in an organization.
The control process involves carefully collecting information about a
system, process, person, or group of people in order to make necessary
decisions about each.

Types of control:
There are actually three types of controls in management and described
as:
1. Feedforward Control: sometimes called preliminary or
preventive controls, attempt to identify and prevent deviations in the
standards before they occur. Feedforward controls focus on human,
material, and financial resources within the organization. These controls
are evident in the selection and hiring of new employees

2. Concurrent Control: monitor ongoing employee activity

to ensure consistency with quality standards. These controls rely on
performance standards, rules, and regulations for guiding employee
tasks and behaviors. Their purpose is to ensure that work activities
produce the desired results.

3. Feedback Control: involve reviewing information to

determine whether performance meets established standards

Financial controls:
Financial controls involve the use of financial measures to assess
organization and management performance, constructed as the analysis

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of company’s actual result approached from different perspectives at
different times, compared to its short, medium and long-
term objectives and business plans. There are two types of financial
controls according to managers i-e Internal financial
control(information used internally and not distributed outside) and
external financial control(developed by outside analysts to assess
organizational performance)
In Mango there is well developed financial control which make it
possible to work well and in 2009 Mango started to sell online
Which makes there financial control much better than before.

Operational controls:
Operational control systems are designed to ensure that day-to-day
actions are consistent with established plans and objectives. It focuses on
events in a recent period. Operational control systems are derived from
the requirements of the management control system. Corrective action is
taken where performance does not meet standards. This action may
involve training, motivation, leadership, discipline, or termination.
In Mango there is operational control in which managers work on
today’s goal rather than to focus on the future outcomes, they produce
clothes according to markets current fashion and requirement by
customers rather then to produce products according to its fabric or
quality.

Role of Information system:

At the most basic level, an information system (IS) is a set of
components that work together to manage data processing and storage.
Its role is to support the key aspects of running an organization, such as
communication, record-keeping, decision making, data analysis and

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 more. Companies use this information to improve their business
operations, make strategic decisions and gain a competitive edge.
In Mango the roles that information system play are:
a) Integrate several logistics operators
b) Reduce delivery times and streamline distribution of the products
c) Manage orders from each store according to the needs of market on the
global scale and in real time
d) Control quality
e) Reduce infrastructure cost in handling high volumes of goods
f) Be flexible and adaptable at all levels in the company(external
manufacturing, internal communication, and with the suppliers, costs,
quality, interior, design, delivery and with drawl of defective and
unsuccessful products) facing the changes that takes place in the market.

Roles of Technology:
Technologies are the basis for the improvement in all the companies
process. According to Xavier Carbonell “such fast growth by the
company and on such a large scale was only possible thanks to the
internet and the adaptation to new technologies” Mango has been
steadily developing the business management system and new computer
platforms which have contributed in success either externally or
internally.
The company’s flexibility and adaptability are the thanks to the
development of an interactive and two-way computer application
between suppliers and design, purchase and quality team, which allow it
to obtain:
1. The information on planning processes for the season
2. Technical specifications for each of its design
3. Realization of any type of consultation and comments by suppliers.

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 The whole production and distribution planning process is critical to
Mango given that the design, production and distribution period for
garments is 3-4 months.

Innovative Managerial practices:

Innovation can be defined as “new ideas, creative thoughts, and new
imagination in the form of methods or devices”
Innovative management is a combination of the management of
innovation process, and change management. It refers to both product
business process and organizational innovation.
According to Mango, to be innovative there must be following practices
by managers to be settled in the market:
1. There is use of technology to collaborate and share knowledge,
through collaboration new creative ideas and innovation is done by
managers
2. There is promotion of innovation as an organizational value, because
according to Mango they did not just luck into hiring creative people;
they placed creative and average people into creative cultures.
3. There is innovation as a Leadership Development Competency,
because when leaders are creative, they lead their employees toward
success.
4. There is a development of Idea-finding program, just idea is not
enough the real thing is to implement that idea. In Mango creative ideas
are taken from every employee and the managers work on them.
5. There is training and analyzing of ideas, employees are trained and
then when an idea is formed then work on it is done to form it in its best
form by comparing it with its alternatives.

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 Entrepreneurship encouragement:
“The activity of setting up a business or businesses, taking on financial
risks in the hope of profit” is called as entrepreneurship.
The Mango mission is conveyed by continuous organizational training.
Internal experts can be very entrepreneurial in training approaches.
To encourage the employees first recognition of an innovation is done
then they are rewarded and placed in leaded positions in training
programs, encouragement of employees is done somehow like this:
 Promotion of teamwork across borders
 By being generous with information
 Employees are allowed to take decisions
 Everyone in Mango is passionate about their mission
 Roles are clear among managers and employees.

Ethical Dilemmas faced by Mango:

Ethical dilemma is a complex situation at workplace that the employees
and the managers have to face that result in a conflict of moral
imperatives. Ethical challenges faced by Mango are:
1. Economical: The Mango Group makes a commitment to develop all
business operations and activities within an ethical framework.
2. Social and Labor: The Mango Group makes a commitment to carry out
all of its working relationship within a framework of fairness, and to
defend, at all times, the basic rights and principles of individuals.
3. Environmental: The Mango Group undertakes to respect the
environment while it conducts all of its business.

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4. Quality and Security: The Mango Group undertakes to offer all its
customers a standard of excellence in all its products, and ensure that
they do not involve risks for their health or safety.
5. Cooperation with society: The Mango Group undertakes to collaborate,
promote and work with all social groups, at local, national and
international levels, in the societies in which its business is conducted.

SWOT Analysis of Mango:

Below is the Strengths, Weaknesses, Opportunities and Threats(SWOT)
Analysis of Mango:

 Strengths:
1. Strong brand presence with its goal to be present in every city of the
world has seen its presence in over 100 countries with over 2000 stores.
2. The online campaigns have been a highlight with the online stores too
being popular among buyers.
3. The presence of stores at prime locations has given the brand a strong
footing in terms of the overall brand equity.
4. The unique product line by Mango helps it differentiate from its
competitors
5. Its foray into menswear too has been a success as a part of their
diversification strategy
6. Has approximately more than 9000 employees.

 Weaknesses:

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 1. All the apparel is designed and sourced from Spain which can cause
serious concern when it comes to pricing as compared to its European
counterparts
2. The major revenues earned by the brand are from apparel and not
from other product line
3.Controversies over designs of some products has invited lawsuits
inviting considerable criticism from the fashion industry.

 Opportunities:
1. Mango can emerging retail markets like India and Africa which are
largely unsaturated and can instill growth and stability for the brand.
2.Mango could diversify further into many other product line in order to
further bolster the brand as the complete lifestyle brand

 Threats:
1. Trade barriers in terms of fluctuations in terms currency
denominations can be a serious threat to the overall sales revenues.
2. The highly fragmented fashion industry means low brand loyalty and
high bargaining power for consumers due to low switching cost.
3.The emergence of many new designers in this segment could pose a
serious threat to the brand.

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 Interest in joining MANGO:
Yes, we would like to be the part of it because according to us it is doing
much better, Mango greatest assets are its people Above all, the secret
lies in banking on a motivated and flexible work team, able to adapt to
and promote change. Professionals who come up with ideas in order to
bring MANGO closer to the largest possible number of women. They
are differentiated for having a highly-defined concept. The MANGO
concept is based on an alliance between a quality product, with an
original design and a coherent and unified brand image. Dressing the
modern, urban women for her daily needs is the formula we have
analyzed, adapted and applied in all the countries in which MANGO is
present: it has been and remains one of the keys to our commercial
success and international prestige.

There are some Changes that Mango needed to be much better in the
market, so after joining Mango I would like to do following adaptations
in it:
1. They need to improve there style according to Pakistani fashion and
market.
2. They should introduced sale on time.
3. They need to open new outlets.

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4. They should advertise themselves more so people get to know about
them.

Conclusion:
After studying in-depth the managerial analysis of MANGO, we
concluded that it is a internationally famous brand and doing much well
in the market but if we compare it with its competitors like Zara then
Mango need some more effort to recognize it well among market.As we
know that Mango has recently moved to Asia so to compete with its
competitors it need much more effort to be in the market . Mango needs
to improve its Fashion and trend somehow according to it’s Asian
customers need.It need diversification of new product line.Mango is
actually a Spanish brand so mostly of its clothing ideas are from Spain
but to do much better it need modifications .

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