Identify how effectively and efficiently your chosen company is run. To produce a report based on your findings on the performance of the business.

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Derryn Evenett

Business at work

Section 1

Introduction

Aim: To identify how effectively and efficiently your chosen company is run. To produce a report based on your findings on the performance of the business.

The business I have decided to investigate is Karen Millen. It is one of the UK’s most successful retailers of woman’s fashion. Its main products are womenswear, footwear and accessories. Karen Millen operates under one business structure from concept through raw material purchasing, production and distribution to the actual point of sale. The focus on design continues throughout all aspects of the company. The market within which it operates is eighteen to forty year olds, the clothes range from young stylish casual wear to smart evening wear. The company’s mission statement is “We provide our customers with the best value for money through the most convenient shopping experience”.

Classification of business  

Karen Millen is a private limited company. It has two founding partners: Karen Millen and Kevin Stanford. The business was started with an initial investment of £100 when 100 metres of white cotton was bought to make shirts to sell their friends. They started off by doing ‘a party plan’ network to sell their products, which generated sufficient income to finance their first store, which was situated in Maidstone, Kent. The business then expanded over the years and know has over 150 stores worldwide with more than 1,000 employers. Karen Millen is also open to people to franchise. This is when someone buys the right to trade under the trade name.

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The company hasn’t undergone any major changes of classification it is still controlled by Karen Millen and Kevin Stanford but around 5 more people own shares in the company. It is still a private limited company. The two original partners now own 60% of the company and 40% is owned by shareholders. This states that the two founding owners are still in control of the company but they have just added different sources of finance. The profits mainly go to Karen and Kevin. It also has franchisers which take a percentage of the profits but only from the stores in ...

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