Julian Dunkerton the founder of Superdry has been reinstated within the board of directors as he won a majority vote. The vote was sparked by Superdry’s plunge in share price which fell as low as 65% after Dunkerton left around 2017/2018. The former co-op chief executive took over and has ‘argued over who is responsible for the brand’s decline’ (BBC News, 2019), Highlighting poor management from the new executive director as they are not sure which direction to take the brand. The current management plans to ‘branch out into children swear and is trying to broaden its range’ (BBC News,2019) whereas, Dunkerton has argued according to BBC news that the brand should focus on the products which made it famous and believes venturing into children’s wear was a mistake.
There is a clear clash of interest within the directors of the brand and is a contributing factor to the decline of Superdry. I believe their are many reasons why the decision making in such a big firm has been poor. Firstly, the rate in which the brand is declining has caused a time-pressured situation for the board of directors who need to get the business back on track as their money is invested into the brand. I believe the knock on effect as caused a conflict of interest between the management. fragmenting them into opposing sides. This has an effect on the business as a whole as their is time-pressure the decision makers are reverting to their instincts and knowledge in order to make a rationale decision in the best interest of the shareholders or themselves (as shareholder’s).
I believe the reinstatement of the founder of the company will create an organisational change within Superdry. This will be positive for the brand as more perspectives and greater teamwork will allow Superdry to improve their financial situation. The reinstatement of Dunkerton has sparked a recover plan for the business a good decision by the board of directors. Highlighting a more cognitive management once the former founder was allowed back in. Superdry could be seen as taking a more contingency approach to management which is characterised by ‘there is no best way of doing it’ and tackling situations depending on the circumstances. Also suggesting, Superdry are becoming more flexible to external influences and adjusting to the current market. After the launch of children’s wear the company is changing its approach in order to increase demand for their products and making it fashionable and profitable again. I believe the change in strategy can only be positive for Superdry as they shouldn’t try to hold onto something that worked in the past and the original founder being reinstated will allow for new ideas from the man who created the global brand.
references:
BBC News. (2019). Superdry’s founder wins comeback fight. [online] Available at: https://www.bbc.co.uk/news/business-47776372 [Accessed 2 Apr. 2019].
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