Class workshop
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The document outlines an exercise for students to form groups and analyze scenarios involving the expansion of a small grocery store into a larger supermarket and chain store. It provides context about Mr. John Aelia's small grocery store and lists product categories. Students are asked to: 1) Design an organizational structure for Mr. Aelia's small grocery store based on a functional strategy. 2) Envision an organizational structure if the store expands significantly with investor support, positioning itself competitively through strategies like low costs or differentiation. 3) Suggest differences in organizational structure if the expanded store became a large chain store like Makro, Metro, or Carrefour.
Class workshop
- 1. Class workshop and exercise on Strategy: 6th November, 2012 You need to form groups of 4-5 members each. Each group will need to study the following, make relevant org. charts and use them in discussions concentrating on likely issues raised and provide responses. Any/all groups may be asked to make a presentation, constituting the following: use in both scenarios A. Short description of the case, B. credit problems both with suppliers and customers, C. additional products to be introduced (how), store space, inventory procedures, stock room space, D. customer walk-in formats (no aisles, product aisles) E. inventory leakages – staff and clients F. cash counter, use of credit/debit cards G. carrying bags H. use of machines, bar codes, software I. staff – quality and numbers J. sources of inventory purchase – local or foreign K. use of promotions, discounts, bulk buying L. Sales and inventory information – formats and use. M. Any other ideas you care to have brainstormed. N. Suggested solutions. The times provided are as under: 1. Initial discussion time: 5 minutes 2. Presentation time: 15 minutes – each member not to take more than 5 minutes. Exercise Mr. John Aelia operates a small grocery shop. He keeps 20 classes of consumer items such as: A. Confectionary: Bread, Biscuits B. Jams and jellies C. Soaps D. Personal care: Shampoos, clean & clear, etc. E. Household: Pots, Brooms, etc. F. Delicacies: Chocolates, toffees, cakes G. Shoe related: Polish, shoe brush H. Toiletries: Tissue paper, allied I. Frozen food: K&N, allied J. Beverages K. Make your own list to complete 20 SZABIST ORG. Development Asad Hasan, 2012
- 2. 2. Design an Org. structure based on a functional/operational strategy for Mr. Aelia which he may use to carry on his business for the next 5 years. A. Use basic functions of procurement, stock keeping, credit with suppliers and few customers, cash receipts, helpers, etc. B. Try to visualize his core competency areas on the basis of which he may derive a competitive advantage 3. After 5 years Mr. John Aelia, has support from a major investor and decides to expand his business to an Agha Supermarket type of store. A. For this he will need to have a business strategy. Use the following ideas to build a different Org. Structure: a) Use experiences gained to build a business positioning the organization so that it can use its resources and abilities to manage its specific and general environments to protect and enlarge that domain. b) Strategies to lower costs or differentiate products: Low cost, differentiation or focus-focus business level strategy. c) Start thinking of next level – a corporate strategy – what new domains may be expanded into: including vertical/horizontal expansion/diversification (think services rather than products!) 4. Provide some ideas what major differences in Org. Structure will take place if the super store is to expand to a Chain Store such as MAKRO or METRO or CARREFOUR. SZABIST ORG. Development Asad Hasan, 2012