10. Organisational Patterns in Retailing and Operations Management Flashcards
The following organisational structures are used by the different types of retailer:
- Small independent retailers
- Department stores
- Chain retailers
- Diverse retailers
• Small independent retailers
• Small independent retailers have uncomplicated arrangements, with no more than three to four hierarchical levels. There are a few employees, little specialisation and no branch units. All the activities in a retail outlet must be performed and some employees may have several duties to perform.
• Department stores
• Department stores make use of the modifcation of the Mazur plan, which divides all retail activities into four areas namely, merchandising, publicity, store management and accounting and control. Examples of these are retail outlets like Edgars and Woolworths, which, although they are not the same size, diferent departments are under one roof. You can distinguish between buying and selling, advertising, window displays, merchandise care and accounting and control.
• Chain retailers
• Chain retailers use a version of a store organisation but they have some of the following attributes in common: there are several functional divisions, authority is centralised, a control system is in place to report to management, and there is standardisation.
• Diverse retailers
• Diverse retailers are multi-line companies operating under central ownership, which is involved in different types of retail operations.
As a result of their strategy mixes, they face complex organisational considerations.
Management skills, therefore, have to adapt to different operations.
For example, in South Africa, Cashbuild is the largest retailer of the building environment and supplies building material all over South Africa. Recently the company has moved to not only supply building material but also operating in the construction market and developing interests in the steel industry which makes it a multi-line operating company.
