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CH10 Apply Your Skills: Case for Critical Analysis Ace's Freshest Grocery Store The first Ace's Freshest Grocery Store was started in 1977 by Bill Acer and his sister Doris. They used a small inheritance to start a small grocery store in a suburb of Atlanta, Georgia, and it was immediately successful. The location was good, and both Bill and Doris had winning personalities and a "serve the customer" attitude. The company's rapidly growing number of customers enjoyed an abundance of good meats and produce for which Ace's Freshest became well known. By 2019, Aces Freshest had more than 200 stores. Company headquarters moved to downtown Atlanta to supervise stores throughout the southeastern United States. There were four regional managers responsible for about 50 stores cach. Within each region, there were four districts containing 12 to 13 stores each. Because the stores specialized in excellent meats and produce, each store had its own mear department manager, grocery department manager, and produce department manager. The grocery department manager also served as the store manager, but this person did not have direct authority over the meat department or the produce department. The store meat department manager reported directly to a district meat manager specialist, and the store produce department manager reported directly to a district produce manager specialist. The store/grocery department manager reported directly to a distriet store supervisor. This direct line of authority for each store department provided excellent quality control over the meat, produce, and grocery departments within individual stores. However, there was growing dissatisfaction within the stores. The turnover of store managers was high, mostly because they had no control over the meat and produce departments within their stores. Coordination within stores was terrible, sh as when a store manager decided to promote a sale on Coke products as a loss leader. Hundreds of cartons of Coke were brought into the store for the big sale, but the meat and produce department managers would not give up floor space to display the Coke The frustrated store manager insisted that this was no way to run a business and quit on the spor. Many stores experienced conflict rather than cooperation among the cartons. CHAPTER 10 DESIGNING ORGANIZATION STRUCTURE 363 departments to the store manager, the new structure would encourage coordination within stores and give managers the ability to adapt to local tastes and customer needs. The dashed-line relationships would ensure excellent meat, grocery, and produce departments across all stores. store meat, produce, and store managers, because each was very protective of his or her separate responsibilities. Doris Acer asked a consultant for advice. The consultant recommended a reorganization within each store so that the meat, grocery, and produce departments would all report to the store manager. The manager thus would have complete control over store activities and would be responsible for coordinating across the meat, produce, and grocery departments. The meat department manager in each store would report to the store manager and would also have a dashed-line relationship (communication, coordination with the district meat specialist. Likewise, each store produce department manager would have a dashed-line relationship with the district produce specialist. The store manager would report directly to the district store supervisor. The district meat and produce specialists would visit individual stores periodically to provide advice and help the store department heads to ensure top quality in the meat, produce, and grocery areas. The consultant was enthusiastic about the proposed structure. Store managers would have more freedom and responsibility. By assigning responsibility for all store Questions 1. Based on the information available in the case, sketch a picture of the original structure within an Ace's Freshest store and the store managers relationships with district specialist managers. What type of structure is this? Explain. 2. Based on the information available in the case, sketch a picture of the consultant's recommended structure within the store and the relationship of store department managers with district specialist managers. What type of structure is this? Explain. 3. What are some of the advantages and disadvantages Vou see for the two types of structures? Which structure do you think will work best for Ace's Freshest? Why