Page 1: Introduction
The Arcadia Group Limited is one of the UK's largest fashion retail companies. It employs around 25,000 people and has over 2,000 outlets in the UK. It also has a growing number of stores abroad. The group includes eight major high street brands. Each brand targets its own market segment.
In 2002, Philip Green bought Arcadia for £800 million. He changed it from a public limited company (plc) to a private limited company (Ltd). Since then the Arcadia Group has been extremely successful. In 2005, the Group's turnover was over £1.7 billion. Its profits were over £326 million.
Philip Green's management style is entrepreneurial. He is always looking for new business opportunities. He seeks new and better ways of doing things. Green says, 'I am brave but I take a view. It is an educated view. I am careful; I am not reckless.'
Green is interested in all aspects of Arcadia's business. He wants to know what the stores are stocking and how the products are displayed (this is known as 'visual merchandising'). His employees are set high targets but have the authority to decide how best to achieve them. They are encouraged to use their initiative.
Green has an excellent grasp of what customers want and what they are willing to pay for. This comes from his life-long passion for retailing. He started in shoe wholesaling at 16. He set up his own business at 21. Throughout his career, he has turned around under-performing retail businesses. To do this Green has excellent staff around him. This is the result of good recruitment, selection and training programmes.