C & C Grocery Store Operantion Management

Sonia Gutiérrez Martos 古妮妮

05116711

Chapter 3

2017/03/23

Case 3 C & C Grocery Store

1. How did the store structure contribute to the managers dissatisfaction?  

First of all there was no learning and developing of the managers occurring. The store has had the same structure for so many years and still no change had occurred. They even tried to implement new technology but it was not fully accomplished. I think most of all managers were unhappy because of the strong vertical structure which didn't allow them make their own decisions, they had no autonomy and they had to listen to the district supervisors. This make no sense since all stores are not the same and some stores are located in the suburbs and other in more traditional environments, of course strategy cannot be the same even if they belong to the same chain. They also want to grow and have some training but they just have very established tasks that leaves them no space for deciding by themselves or communicating with the higher rank managers.

1. What structural problems contributed to the chain being so slow to adapt to change?

The lack of a more horizontal organization that can allow the employees and the store manager to communicate on an efficient way the problems and needs of each store to the managers. Also the lack of training and the lack of flexibility. They initially have a more functional structure which is well known for having a hierarchy overload and dont let the departments to have communication in between them. As a result innovation is less and problem solving is unsuccessful and slow.

1. How does the new organization address the problems below?

I think the new strategy applied it's a divisional structure because it's suited for fast change that will solve the second problem. A less centralized organization gives the managers more flexibility which will solve the first problem. The managers receive now guidance and training  from the district supervisor. Communication is better between managers and district supervisor which allows to quickly communicate the specific needs of each store and decide a way of fixing it without passing through that  unnecessary vertical hierarchy.