Organizational Structure Case

Organizational Structure

Brandi Jones

XMGT/230

02/08/15

Alicia Giattino

Organizational Structure

Every successful organization has a structure that keeps them operating efficiently. Sometimes organizations fail because they did not find the proper structure to help them achieve their overall goals. At Ahold USA, we work under a vertical structure that is broken out in divisions. While we have separate divisions under one banner, we do not operate separately as a whole. Our company's organization is as a mixture of structures that allow us to meet our goals and continue to run a strong business.

Like most other large companies, the structure is tailored specifically at Ahold USA to meet the many different needs of our customers. While our mother company Ahold, is internationally based in the Netherlands, Ahold USA is an operating segment of the main company. Ahold USA consists of four main divisions, Giant Landover, Giant Carlisle, Stop and Stop New York and Stop and Shop New England, as well as our on-line Grocery business Peapod. We operate in approximately thirteen different states and have 123 pick-up points for Peapod. Each division has a division president that reports to the Ahold USA's Executive Vice President of Operations, who in turn reports to the COO of Ahold USA. Our corporate offices are located in Carlisle, Pennsylvania and Quincy, Massachusetts. (Ahold, 2014). As a company, we all work together to achieve the overall goals of the business.

When I look at another business like Planet Fitness, there are similarities and differences between them and Ahold USA. The basic structures of both companies are somewhat the same. Both have corporate offices with executives and hundreds of locations throughout the United States. However, Ahold USA is owned and operated by corporate while Planet Fitness is a Franchise based business. While it does have corporate owned gyms, most of the gyms are independently owned and operated. Each gym has exercise equipment that is tailored to the needs of occasional or first-time health club members. Planet Fitness is unlike our stores that are tailored more to fit the areas in which they are located while keeping all customers needs in mind, and not just select customers. (Wikipedia: Planet Fitness, 2014).

Then I look at a company like Wal-Mart, which also spans internationally like Ahold. It fits the needs of almost any type of customer providing everything from clothing to car care, to groceries. While we are both in the retail business, our overall goals are slightly different, in the services and products that we strive to provide. Organizationally wise, we are more similar to Wal-Mart, than we are Planet Fitness. While all three have centralized corporate offices, each is structurally set to fit the needs of each business. Wal-Mart also has a divisional type structure broken out into Logistics, Real Estate, and Store Operations. They also have a vertical structure that allows these separate divisions to work together with a unified leadership team. (Simon, 2010). Ahold USA while it has different divisional presidents also works together as a unified team to achieve overall common goals.

At our corporate office here in Carlisle, PA, we work with our corporate office located in Quincy, MA in all of our functions. These functions include HR, Finance, Merchandising, Marketing, Accounts Payable, Accounts Receivable, Operations, IT and more. As a company, we are broken down into these departments to perform specified tasks that contribute to the overall performance and operation of our company. While we operate four main divisions as well as our on-line venture, we do not operate separately in the areas of HR, Merchandising, Operations, etc. We function as a whole, supporting all divisions across the company. Initially, our company operated separately and kept all functions separate throughout the entire business. With a goal of working towards a more unified business to reduce the costs and redundancy of the jobs, they ultimately reorganized the structure to become more efficient and cost saving. The reorganization has resulted in allowing our company to expand even more and continue to grow for the future.

When I look deeper into our departments, we are set up as a functional organization. With departments like HR, Operations, and IT in both of our corporate locations; we each work together