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Structure/design of organizations
Organization structure
Different types of organizational structures
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Our Group's mini case examines the organizational design structures of a large online retailer’s acquisition of a high-end grocery chain. The fate of the acquired company will be impacted by the implementation of Jay R. Galbraith's five key categories in the STAR Model™. Galbraith's model tracks: People, Processes, Structure, Strategy, and Rewards. The online retailer experienced hyperactive growth for years, while the high-end grocery chain experienced a financial crisis due to over-expansion and sagging sales. The online retailer plans to strengthen its dominance in both the e-commerce and physical commercial space with its expansion into the grocery industry. Maintaining the original name of the grocery chain, to retain the chain’s …show more content…
For the new organization design structure between the online retailer and the grocery chain to be effective, alignment with People, Processes, and Structure is mandatory. There is an expectation for a major culture clash between the two companies because the grocery chain has a supportive and empathetic culture, whereas the online retailer has a culture fueled by driven results and measuring market gains in the spirit of industry domination. People: Both organizations have existing robust human resource policies for obtaining and retaining talent. The grocery chain fosters a culture of professional development and personal growth with a focus on training. The online retailer is considered to be a more attractive place to work with a much higher stock price, greater global reputation, and a more innovative and growth-oriented company. The human resource policies at both companies are similar. Both identify and develop talent for their organization. …show more content…
With a hierarchy supported by a hands-on and forward-thinking chief executive officer, senior management, and several specialized departments, over the years, its organization structure swells and contracts, as it sees necessary. This aggressive flexibility is a major reason for its commerce dominance. Motivated by its acquisition of the grocery chain, the online retailer's main strategy is to provide the ultimate convenient shopping experience to its customers. It steadfast connection to external trends is one of the main indicators to drive its internal structure. Now, with a new business to add to its organization, a new area with specialized knowledge about the grocery business is a necessity. In the short-term, it seems a simple solution is to keep the grocery chain's current hierarchy structure with executive-level and other senior management through a reasonable transition period until a careful review of processes is carefully considered. There is an executive overlap; therefore, the structure needs reconciliation in order to provide clear direction and execution of the main strategy. Both the online retailer and grocery chain foresee challenges with its marriage of People, Processes, and Structure. Therefore, special focus on shared communication is an important and urgent transition project for sets of executive and senior
Associated Wholesale Grocers (AWG) came into being more than eight decades ago when several independent retailers decided that the power of a cooperative far outweighed the influence of any one individual retail grocer. AWG provides distributor services to independent grocers in over 30 states with nine distribution centers throughout the South and Southeast regions of the country. In addition to their wholesale foods department, AWG offers a myriad of services from new store design, construction, marketing, product placement and “world class” logistical consultation (cite 11). AWG faces many of the same logistical challenges that other similar wholesalers face to include rising fuel costs, inclement weather, stringent timelines and an ever evolving need for stringent quality. One method to exploit a business’s positive and negative attributes is through the use of a Strength-Weakness-Opportunity-Threat analysis, or SWOT analysis (Cite 11). If used correctly, the analysis results can give insight into potential market areas of expansion and expose vulnerabilities to senior leadership so that they can be mitigated. AWG looks at its Supply Chain Management (SCM) as an integral part of its core business offering multiple services such as logistics to new co-op members. The team members of AWG are positioning themselves for sustainable success, now and in the future.
A strong upward and downward communication chain underscores the management and organizational style adopted by Trader Joe's. This means fostering a belief that the store group operates as a team and that individual opinions are valued, rather than an environment where people speak out and are either not heard or have their opinions suppressed (Workforce, 2005). (Schermerhorn, 2012) The company applies its pursuit of value to every facet of its operations” (p.W-99).
In this paper, the organizational cultures of Ukrops and Martins Grocery Store. The purposes of this paper are to discuss the similarities as well as the differences in culture between the two organizations such as the employee/customer satisfaction, policies, as well as the benefits each company gave their employees. Also in the paper, the reason why Martins felt a need to buy out Ukrops will be discussed.
FreshDirect used many different strategies while penetrating the online grocery industry, more specifically the overall cost leadership and differentiation strategy. According to Dess, McNamara and Eisner (2016), “By holding down costs or making more efficient use of resources than larger competitors, new ventures are often able to offer lower process and still be profitable.” By utilizing the combination of the differentiation and overall cost leadership strategy, FreshDirect was able to successfully infiltrate the market and gain a competitive advantage over its competitors. In order to achieve overall cost leadership, FreshDirect’s goal was to reduce cost as much as possible through eradicating the go-between suppliers
Competitors in the grocery store industry must compete on many facets, including price and inventory, to obtain a competitive advantage. Many stores are following suite with Whole Foods and moving into the organic food markets. Whole Foods and Trader Joe’s are in the forefront of this market, but stores like Kroger, Walmart, and HarrisTeeter are adding organic aisles and increasing their natural product supply. Companies are also competing over variety of food. Many companies are attempting to amass a variety of products from a multitude of cultures and climates to enhance the consumer experience. Lastly, grocers compete on brand strength. Consumers often show allegiance to one particular store, so companies must generate a large base of loyal customers.
The purpose of this memo is to show the affects of how Albertson’s is trying to implement many strategies in order to try, and compete with its powerhouse competitor Wal-Mart. This memo will contain information on steps Albertson’s is taking to gain back some of the market share that Wal-Mart has swallowed up. It will also describe Albertson’s planned innovations that will be what determines their success. Lastly it will discuss how through IT as well as a successful implementation of satisfying consumers demands, will possibly allow them to compete with the ever so powerful Wal-Mart.
Entering into a partnership would be beneficial to the supermarket in terms of lowering the risk of investment, the companies will be able to share their resources, assets and suppliers, share management, and enhance each other’s brand (Keillor 2011, p. 93). By applying the VRIO analysis, a concept used to measure a firm’s value, rarity, inimitability, and organization against competitors, Sainsbury’s is a good supermarket to partner with (Gaubinger et al. 2014, p. 73). Foremost, the supermarket is a huge brand and has got vast resources in terms of personnel, facilities and equipment, the company is modern and uses the latest technology a rare aspect in Egypt, the supermarket follows a ‘neighbourhood model’ that is hard to replicate for local supermarkets, and the supermarket is
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory.
The Authors have been assigned to analysis the retail grocery sector in the UK, the following statements will be answered; identification of the main competitors, assessment of relative market share, relative significant of each competitors, potential for each competitor to capitalise on internet technologies and potential threats of the new entrants into the retail sector.
We pursue strategic relationships to increase our access to online consumers, to build brand name recognition and to expand the products and services we can provide to o...
Methods of operating in the retail food sector are always changing. This is especially true in the supermarket space. Today's informed consumers are increasingly demanding quality, fresh, and innovative foods. Additionally, these consumers also demand convenience be served along with these first-rate products. More grocery products are being purchased at non-traditional food retailers.
Challenges in Today's U.S. Supermarket Industry. 2014. Challenges in Today's U.S. Supermarket Industry. [ONLINE] Available at:http://msdn.microsoft.com/en-us/library/aa479076.aspx. [Accessed 31 March 2014].
Organizational change is the altering of organizational structures and business strategy. As consumer preferences change, competition increases, and the economic environment fluctuates, business need to adapt to these changes to remain competitive. The management of Home Plus, a regional discount store, has proposed an increase of high-end products and a significant reduction in discount packaged goods. This is a change from the original business strategy in which the primary offerings were discount products. Before implementing the proposed strategy, Home Plus management must consider the benefits of the change and the consequences that may occur. As a member of the management team at Home Plus I disagree with the proposal to increase high-end
This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.
This paper will hopefully compare and contrast what I think are the two most powerful commercial big box retail companies in America, Walmart and Target. For both companies their planning, organizing, leading and controlling capabilities put them both in at a dominating advantage. Not only with their employees but also with their consumers and most importantly keep a significant upper hand on other commercial big box retail companies in America. Walmart was founded in 1962 by Sam Walton an American businessman and entrepreneur, his first store Walmart store opened in 1962 in Arkansas; he has also launched Sam’s Club which opened its doors in 1980 in Oklahoma. Sam was also included in the Time’s list of 100 most influential people of the 20th