1.

Based on the information available in the case, sketch a picture of the original structure
within an Abraham’s store and the store managers’ relationships with district specialist
managers. What type of structure is this? Explain.

Bill & Doris Grocery Store

(200 Stores)

Regional Manager 1 Regional Manager 2 Regional Manager 3 Regional Manager 4

(50 Stores each) (50 Stores each) (50 Stores each) (50 Stores each)

4 Districts Manager 4 Districts Manager 4 Districts Manager 4 Districts Manager

(12 to 13 Stores each) (12 to 13 Stores each) (12 to 13 Stores each) (12 to 13 Stores each)

District Meat District Store District Produce

Manager Specialist Supervisor Manager Specialist

Meat Department Grocery Department Produce Department

Manager Manager (Store Manager) Manager

This chart shows the organization’s structure of Abraham Grocery Store, which
contains two types of structural approach; divisional approach above a district level and
functional approach within each store. It was mentioned in the context about four regional
managers with four districts in each region. Therefore, the overall structure is divisional
approach, which can correspond to either products or geographies.
In the context, it was mentioned that there was a separate department manager
within each store and the store manager did not have direct authority over other department.
Each department manager reported directly to a district specialist manager and the store
manager reported directly to a district store supervisor. Therefore, the structure in district level
and the relationship between managers and district specialists can be classified as functional
approach, which organized into departments based upon the responsibilities each performs for
the organization.