Page 119 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes their equipment and networks running on the newest technologies can be difficult for retail
leaders.

Note Employees can play a major role in differentiating in retailer's offering from
its competitors.

Self Assessment

Fill in the blanks:
1. ................... are predetermined goals to which individual or group activity in an organization
is directed.
2. ................... is another problem that the retail industry faces on a regular basis.
3. The ................... industry as a whole is largely dependent upon the economic well being of
the nation.
4. The ................... notes that existing auditing systems may be outdated and provide
inadequate audits needed to stay competitive.

5. Columbus IT also indicates that the future uncertainty of ................... economic markets
makes economic planning difficult in the retail world.

7.3 Designing the Organization Structure for a Retail Firm

Organization structure described as a formal system by which various activities to be performed
by employees are identified and determined, indicating the line of authority and responsibility
in the firm. It is the formal system of task and reporting relationships that controls, coordinates
and motivate employees so that they cooperate to achieve an organization’s goal. A retailer
can’t survive unless its organization structure satisfies the need of the target market.

The considerations for Organization Structure are as follows:
1. It should encourage employees to work and develop cooperation among employees in
work.

2. Allow people and groups to cooperate and work effectively.
Organization design is a process where in managers select and manage various dimension and
components of organizational structure and culture to achieve organization’s goals.

The considerations for Organization Design are as follows:
1. Should focus of specialization
2. Matching authority and responsibility
3. Determining the reporting relationship

4. Focus of retail strategy
The organizational structure of a retail store will vary by the size and type of the business. Most
tasks involved with operating a retail business will be the same. However, small or independent
retail stores may combine many sectors together under one division, while larger stores create
various divisions for each particular function along with many layers of management.

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