LoginPage 0: Introduction
Argos is one of the UK's largest non-food retail chains, with annual sales exceeding £3bn. It has more than 540 stores throughout the UK and Ireland, and approximately 95% of the GB population live within 10 miles of one of its outlets. The company was founded in 1973. By 1998 it was experiencing disappointing profits and sales. This prompted a hostile takeover by GUS plc, which now also owns...
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Page 1: Changing the culture at Argos
A company's culture is based on the values and beliefs that are shared across the organisation. It is challenging yet essential to ensure the organisation's culture reflects its strategy and focus on the customer. A key element of the new approach has been to change the corporate culture at Argos and build an environment within the firm that values:
customer service which focuses providing an...
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Page 2: Building a team
Argos also continues to work at building what it calls its 'employer brand' - a clear set of values representing the attitudes and beliefs of its employees. In 2003, after consultations with staff, these values were stated as:
change makes us better and more successful
we are impatient to win
as much opportunity as you can handle
where teams work.
The new management team have managed to...
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Page 3: The marketing mix at Argos
As well as changing the culture at Argos, management appreciated the need to change the extended marketing mix to improve the customer experience. Argos has always been associated with 'low prices, more choice, less hassle'. The management team wanted to build on these values and develop the marketing mix to boost the company's sales and profits.
The product
Market research following the...
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Page 4: Extended marketing mix
People
As shown earlier, Argos places great emphasis on training staff and ensuring they provide a good customer service. If staff are friendly, know what they are talking about and are eager to serve their customers this can provide an important competitive advantage in retailing.
Process (i.e. the buying process)
In 2002 Argos introduced 'Text and Take Home' which allows potential buyers to...
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Page 5: Conclusion
When Argos was acquired by GUS in 1998, sales and profits were disappointing. Since then growth has been excellent. Annual sales grew by 13% and profits by 17% from 2002 to 2003 alone, significantly outperforming the market as a whole.
This has been a remarkable turnaround for the business, brought about by instilling insights and enthusiasm into employees, keeping the brand modern with...
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