A.

The chain was slow to change

Why? For years overall performance for C & C was excellent and came with ease. Unfortunately employee development and innovation and change weren't a top priority and it began to show. Store layout and structure remained unchanged for 15years. The original structure would have been ideal for 5-10 stores but not for +200 stores. There was no variation between stores situated in a suburban area or low income area.

 Poor supply chain management systems for ordering and stocking existed whereas new entrants into the industry e.g. Wal-Mart quickly adopted new technology and had a competitive advantage over its competitors Failure to effectively launch a new supply chain management system after two years and reluctance to implement other proposed IT initiatives

 The vertical structure of the organization also contributed to the slow adaptation to change especially in the rapidly changing grocery industry during the 1990s. Store responsibility was at a district level and this did not enable the shop managers to make swift decisions pertaining to any local changes, they had to consult at district level first.

B. The organization structure caused dissatisfaction among managers.

Why? The vertical information linkages within the organization structure limited the operation of store managers and did not give them the flexibility to make decisions. The store managers wanted to learn general management skills but were unable to due to being restricted to the grocery line, front end departments and store operations, their wings were clipped.

 The original structure of the C & C Grocery stores caused a disconnection between the store managers, and the perishable managers (meat and produce managers). The meat and produce managers report directly to the district managers of their prospective departments.

 However, the store managers were responsible for the daily operations of the entire store. This disconnect in itself is a major disruption in productivity. The District Director was the only person in the work breakdown structure that knew what was going on in his district within all sections of every store. It becomes difficult for that operation to function as a whole in the absence of that individual

C. Lack of coordination within the store and poor staff morale

Why? The staff had deviated from the company s informal style and serve the customer attitude A lot of intergroup rivalry was emerging e.g. when the store manager wanted to use the floor area in the meat and produce sections to promote the coca cola sale, the produce manager refused.

Again this was caused by the disconnection between the store managers, and the perishable managers (meat and produce managers). Though working for the same company they seemed to have different goals for one store.

D. Competition from larger supermarkets and chains caused business to decline

Why? C & C grocery store operated under a goal approach. They were committed to customer service and satisfaction. This approach provided the grocery chain with the profitability and growth they strived to obtain. The stores operative goals were attained and the chain had over 200 stores in operation. For years overall performance for C & C was excellent and came with ease.

 With the emergence of new grocery formats such as warehouse clubs, dollar stores increased competition forced firms to compete with each other for the same customers by lowering prices. The company began to face a decline in its business due to its traditional grocery formats as most had introduced a one stop shopping concept with non-food items such as pharmaceuticals in store, or a specialized deli section.