C & C Grocery Stores, Inc

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MGT 5015
Organizational Planning and Development

CASE 1: C & C GROCERY STORES, INC.

1. In general, how did C&C’s first organizational structure contribute to the store managers’ dissatisfaction?

The overall managerial structure of the company inhibited communication and cross training for its managers. The lack of communication between functional specialties keeps cooperation down and thus can lead to poor performance. The inability to be cross trained in multiple functional areas restricts their ability for promotion. The store managers did not have control of their entire stores, and lacked training and development for higher level management positions.

2. What effect did it have had for store meat and produce managers to report to district specialists?

Store Managers had no authority over Produce and Meat Department managers. Separate departments were unable to work together for the good of the entire store. This led to centralized decision making up several vertical linkages.

3. What structural problems contributed to the chain being slow to adapt to change?

To make changes at the store level, information had to be passed by the meat, produce, and grocery managers up three to four vertical linkages before a centralized decision could be made at the district director level. Also, stores lacked the ability to add more specialized departments like pharmacies or gourmet departments.

4. Why was cooperation within stores so poor?

Each store lacked a centralized decision maker for the local store. Multiple managers oversaw multiple functional areas without reporting to a primary source. This created conflicted decision making without consultation in regards to the overall strategy of that store.

5. How would the proposed reorganization address the problems addressed in each question above?

a. With the proposed restructure the store manager would have complete store control and better training from...
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