Assume you have the job of setting up an organization structure for a new compan

Question

Assume you have the job of setting up an organization structure for a new company which will be a retail store operation to sell health-food products. The owner is an independently wealthy woman who is starting this business because she thinks people ought to eat better. You have been asked to design the organization. When the business opens there will be a dozen retail stores and a wholesale operation to sell the products to existing food stores. She also plans to eventually have two organic farms to grow healthy food. Based on your reading of the class material for this week, what do you think are the important principles to consider in designing this organization? What would you suggest to the owner regarding the organizational structure?

Explanation / Answer

Designing the structure for the organization is an important part of the business plan. The business plan gives a blueprint that how the structure is going to be. Who will be responsible for what, hierarchy, responsibility, tasks etc.

That is why I will make a detailed operational structure as well as reporting structure which will help to assign responsibility of employee. The complexity in the structure in the given food retail store will be size of the firm and desired management quality, its philosophy.

I will include following elements in the structure.

Operational team - employees are the biggest asset of any organization. The operational team will be fully responsible for operational execution such as store operation, product display, logistic procurement, warehousing, security arrangements, utility etc.

Finance Team- This team will be responsible for all financial transactions happening at the store. This will include timely payment to vendors, suppliers. Timely payment is very important because this will strengthen the relation between the vendor and the store. The will make the confidence among the vendors that they will get the payment at right time and their business will be smooth and their capital will not turn into profit making capital. By this they will offer more discounts and financial relation is very strong with the vendors. The team will record financial transactions such as amount of stock received from vendor payment, cash flow, daily expenses, petty cash expenses, capital gain from selling the garbage, scrap etc

Sales and Marketing Team-This will be directly responsible for generating revenue for the retail firm. They will create various strategies and implemented in order to get the customer into the retail store. Some examples are like, advertisements, banners, posters etc the sales team will be divided into the different department as per the expertise etc. Due to competition the remarketing team will adopt t customer relationship management software.

Admin Team- the admin team will be responsible for smooth functioning of the retails operations with the maintenance or structural issues. Timely payment of electronic bills, licenses issues, landlord bill, any other modification in the store

Legal team- This time will look after all the legal issues related to licenses, government laws and regulations activities etc

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