Case studies revision

Semco — workplace democracy in action​

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​Semler believed that the company could be rescued by diversifying (moving into other industries). Semco introduced a matrix organisational structure, but this did not deliver the improvements that Semler was after. Semco then developed the idea of "octopus" structure - satellite units or strategic business units to develop new businesses and product lines. This provided greater freedom as well as more responsibility for managers and staff. 

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 The Semco Group, based in Brazil, South America, is a most unusual business as a result of its absolute commitment to workplace democracy.Semco actually began life in the 1950s as a company manufacturing centrifuges for the vegetable oil industry (a centrifuge is a piece of equipment where a compartment spins on a central axis to separate materials). Between the 1950s and the 1980s, Semco became a traditional hierarchical business, characterised by many layers. After running into trouble as a result of employee reaction to autocratic management, however, changes began in the mid 1980s

Ricardo Semler, the founder’s son, took over as the CEO ​

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Semco is now completely based on the concept of employee ownership, full employee participation, flexibility and a focus on meeting customer needs. Employees design their workplace, set their own hours and share all information. At Semco, there are no managers.There is an emphasis on ownership and disclosure — all wages are tied to the performance of the business, and each person’s wage is published so team leaders are shown not to be earning unfairly high salaries. Staff set their own salaries, but need to be careful because there are no secrets. Staff are provided with information about how much they could make if they worked for another business using similar skills. Each employee has been trained in accounting so they can understand the business’s earnings and how their work affects the business. ​

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Case Study: Zara – expansion of a global business​

 This global expansion led them to become Spain’s largest company as well as the world’s largest clothing retailer Zara launched in Australia in 2011, shaking up the local fashion sector.​The company works hard to research and understand the different local markets, then tailors its retail strategies to suit those different needs. Zara adapted its European style to suit Australian taste and weather, creating custom weather-appropriate collections to complement the climate for its Australian stores.Other brands such as Witchery and Sportsgirl have seen their sales affected by Zara’s entrance into Australia, especially because they share a similar target market. In order to survive, these retailers have been forced to differentiate themselves and re-evaluate their product range, pricing and promotional strategies.Zara has maintained its tight adherence to its strategy even as it pursues its aggressive global expansion. They have successfully expanded into 93 countries and have over 2200 stores worldwide.

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​Westfield began as a public company listed on the Sydney Stock Exchange in

1960. In that same year, they built their second shopping centre in Hornsby with the

money they raised from the float.hey continued to expand nationally and currently

have centres in all major metropolitan cities as well as some regional centres

throughout Australia.Since the 1950s Saunders and Lowy have made regular trips to the United States

to learn more about shopping centres. By the 1970s they had become concerned that Australia could only accommodate a finite number of centres due to its limited

population. 

​When Frank Lowy and John Saunders first came to Australia in the 1950s, there wasn’t

one shopping centre in the entire country. The

company they began, Westfield, is now a market leader in Australia, New Zealand,

the United States and the United Kingdom. Throughout its history, Westfield has played

a significant role in changing the way the world shops.

Case study: Westfield Group — global expansion​

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