Obhr342Structure Case

Current organization structure

As we can see in the C&C grocery stores organization chart, the main level of their structure combines with functional and geographical structure. Because the organization was divided into three regions and each region had 70 stores. Each region divided into five districts of 10-15 stores each. Then the middle and lower level of the organization is divisional structure. The term divisional structure what is sometimes called a product structure or strategic business unit. With this structure, the divisions are organized according to individual products, services, product groups, major projects or programs. So in this case, the middle and lower level district of C&C grocery stores are divided as meat merchandiser, operations manager, produce manager and grocery merchandiser. The C&C grocery stores organization structure is quite centralized, their decision-making is limited to higher authority, the V.Ps having much control over each district, and store produce manager reported directly to the division produce specialist.

Problem

Their chain structure was slow to adapt to change, as their centralized structure ,their response to the market change is slow, and also the response between their employees and management is slow. They did not differentiated among department; each store did things the same way as all of the other stores. The low-income and higher-income areas were using the same strategy.

They have role conflict in the district stores. The managers restricted by their jobs and learned little in their professions, and they have low empowerment with poor cooperation among the managers.

Structure in Recommendation

- Their structure should be more decentralized, change to divisional structure and horizontal structure, be flexible to adapt the change; this can improve the communication and teamwork accuracy.

- Clarify each managers responsibility and role in the organization;

- Introduce non-food items into stores,...