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Organizational design andhierarchy

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Retail Organization

 The organizational structure in retail willvary by the size and type of the business.

Most tasks involved with operating a retailbusiness will be the same. However, smallor independent retail business maycombine many sectors together under one

division, while larger stores create variousdivisions for each particular function alongwith many layers of management.

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For example, the small specialty shop mayhave all of its employees under one

category called Store Operations. A largedepartment store may have a completestaff consisting of a manager, assistantmanager and sales associates for its

Sporting Goods department, Home andGarden, Bed and Bath, and eachadditional department.

As the store grows and the retail businessevolves, the dynamics of theorganization's structure will change too. Therefore it is paramount to redesign the

store's organizational chart to support theili

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Retailing Structure The following is a brief outline of some of the divisions in a retail

organization.

Owner/CEO or President

Store Operations: Management,Cashier, Sales, Receiving, LossPrevention

Marketing: Visual Displays, PublicRelations, Promotions

Merchandising: Planning, Buying,Inventory Control

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Departmentalization

Functional

  Product

  Customer

  Geographic

 

Matrix

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FunctionalDepartmentalization

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FunctionalDepartmentalization

Advantages Disadvantages

creates highlyskilled specialists

cross-departmentcoordination canbe difficult

lowers coststhrough reducedduplication

may lead toslower decisionmaking

communicationand coordinationproblems arelessened

producesmanagers withnarrowexperiences

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ProductDepartmentalization

Easy FoodMarket/FMCG

Cheese Milk  Ice cream

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ProductDepartmentalization

Advantages Disadvantages

managersspecialize buthave broader

experience

duplication oftenincreases costs

easier to assesswork-unitperformance

difficult tocoordinate acrossdepartments

decision making isfaster

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CustomerDepartmentalization

AmericanExpress

Cards Travel FinancialServices

BusinessServices

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CustomerDepartmentalization

Advantages Disadvantages

focuses oncustomer needs

duplication of resources

products andservices tailoredto specificcustomers

difficult to achievecoordinationacrossdepartments

decisions thatplease thecompany but mayhurt the company

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GeographicDepartmentalization

Coca-ColaEnterprises

Central

NorthAmerica

Eastern

NorthAmerica

Western

NorthAmerica

Europe

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GeographicDepartmentalization

Advantages Disadvantages

responsive todemand of different markets

duplication of resources

reduce costs bylocating resourcesclose to customers

difficult tocoordinate acrossdepartments

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MatrixDepartmentalization

A hybrid structure in which two or

more forms of departmentalization

are used together

most common forms combine productand functional

employees report to two bosses

increased cross-functional interaction

significant interaction between

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MatrixDepartmentalization

Advantages Disadvantages

efficiently managelarge, complextasks

requires highlevels of coordination

effectivelymanage large,complex tasks

increased conflictlevels

requires high levelof managementskills

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organization hierarchy

 The vertical layers of ranks of personnelwithin an organization, each layersubordinate to the one above it.Organization hierarchy is often shown in

the form of an organization chart. An extended hierarchy is typical of a

bureaucracy, but during the later 20th

and early 21st centuries the layers of hierarchical positions within largeorganizations have often been reducedas part of downsizing exercises. These

result in the shallow or nonexistent

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C:\Users\brishti\Desktop\strategy\ORG CHA

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C:\Users\brishti\Desktop\strategy\Organisatxls

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4/7/124/7/12 21Monarch Innovative Technologies

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CMD

President

ExecutiveVice-

President

BusinessDevelopment

SystemAdmin

Finance &Accounts

CorporateServices

ProductDevelopm

ent

SoftwareDev. & Q.A.

Operations& SCM

Import &

Purchase

Administration

PeopleProcess

Legal

Secretarial

4/7/12 22Monarch Innovative Technologies

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Shopper’s stop

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Pantaloon