Luis Antonio Olivares
Business 418 Organizational Design and Change
Case 2: C&C Grocery Stores, Inc.
C&C Grocery Stores began losing market share to large company’s like Wal-Mart, Target, and Costco because they were unable to compete on prices with these large companies. They had considered ways to use advance information technology to improve service and customer satisfaction. The Improved service and customer satisfaction would distinguish C&C from large discounters and allow them to compete against them. Another problem C&C had is that the company set a standard layout for all new branches. This hierarchical layout essentially made it easier for the branches to lose Doug Cummins’s informal style and “serve the customer” attitude.
The current structure created a couple of problems for C&C Grocery Stores. One of the biggest problems I noticed is that there was no ...view middle of the document...
There really wasn’t any way that the store manager could improve the way the store was being managed. On top of that, the store manager was restricted to operational activities and learned little about merchandizing, meat, and produce. It is really important for a manager to have knowledge in the departments and managerial skills to be able to make decisions that respond to the customers in their areas.
I think consultant’s recommend structure will work. Giving the store manager complete control of all store activities, while switching the district supervisor’s role from supervision to training and development, will greatly improve the way the store operates. It would allow for the department’s managers to work cross-functionally as a team. This new freedom and responsibility would allow the store managers to respond to their customer’s needs and have more impact on the community in which they live in. It would make it easier for managers to follow Doug’s “serve the customer” attitude. This positive impact in the community will make the experience worth the higher price to the customer.
Things at the district level will have to change. In the standard layout the store meat department manager reports to the district meat specialist. With the consultant’s structure the same departments have to report to the store manager who then reports to the district coordinator. I don’t see why the district coordinator has to have the specialists as intermediaries. Can the district coordinator serve as a liaison to the merchandisers? Wouldn’t this cut some steps and possible reduce costs?
As a consultant, I would advise the CEO to make it clear to the entire company that service and customer satisfactions are the main goal. Without it, it will be just another grocery store. I also think that they should be having meetings once a month where all the store managers would meet up to discuss problems that they may be encountering. It would be a lot of store managers, but allowing them to communicate would improve the cohesion as a company; improving morale and solving any problems that they have or may encounter along the way.