Overview of Management and Leadership

Unit 1- Overview of Management and Leadership

Abstract

In the following paper, I will discuss the organizational structure of a traditional retailer and an online retailer business. I will also identify two management or leadership challenges in each type of business. I will also give advice to those who want to go from a traditional retail business to an online business.

Introduction

The internet has created new ways to do business for organizations with much less capital planning as opposed to the high capital needs of traditional brick and mortar organizations.

Online businesses have changed a whole lot compared to traditional brick and mortar businesses. The styles and tactics differ dramatically over traditional organizations. One of the major differences of the internet based organization is the commutation is greater then the traditional organizations because of the technology, using more email or chat type of commutations. There is less meetings in-person with Internet based companies then traditional. Internet based organizations tend to hold meetings via the Internet such as Skype or other video chat programs.

The communications for the Internet based companies have made it easier to take to top leaders of the company and make them more accessible. The customers are able to contact information about the top executives such as the CEO and CFO easier and easily because of that the leaders spend more time communicating. Internet based companies take advantage of technology with the use of instant communication with their employees and can answer one another fairly quickly. This is good for both the management and the employees because when there needs to be quick decisions or answers needed they can get them right away. This is also great for customers when they need help with something and want answers or to talk to someone right away, they have a “live” person on the other end communicating with them right away. The use of letters and phones is more with the traditional way of organizations on the way to commutate.

The traditional retailer I picked is Wal-Mart. The type of organizational structure is divisional structure. When a company expands to supply goods or services to a variety of customers, offers a variety of different products or are engaged in business in several different markets, the company could adopt a divisional organizational structure. The main goal of a divisional structure is to market the specific demands of the consumers. Wal-Mart is known for its low prices and the consumer expects the prices to be low and the quality to be good, maybe not the best but the price is the main demand. The benefit of this