Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Chapter 3: Organizational Structures

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Organizational Structure The identification of authority and responsibilities, the assignment of these responsibilities to positions, the reporting relationships among employees, and the establishment of lines of authority within an organization.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved OS Changes Expansion into new channels Growth of organization A new direction taken

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved OS Enhances Operations By: 1. Turning individuals into team members. 2. Giving orientation to new employees. 3. Helping simplify relationships of a complex nature. 4. Helping employees to understand strategic vision of the company.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Line Positions Those employees who are directly involved in getting the product to the consumer. Divisional Merchandise Manager Buyer Assistant Buyer Assistant Buyer Assistant Buyer

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Staff Positions Although not directly involved in getting the products to the consumer, employees in staff positions serve an important role as advisors to those in line positions.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Three Classifications of Fashion Retailers On-site classifications Off-site classifications Multichannel operations

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved On-site Classifications Single unit specialty stores Small multiunit specialty chains Small department stores Large department stores Department store groups Large chain organizations

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Single Unit Specialty Stores Owner is ultimate decision maker Operated with minimum number of employees who perform multiple tasks Upon growth managers hired to assist owners

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Mazur Plan: Four Functions 1. Controller 2. Merchandise 3. Publicity 4. Store manager

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Contemporary Organization 1. Merchandising 2. Promotion 3. Control 4. Store management 5. Store operations 6. Human resources

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Merchandising Functions 1. Merchandise purchasing 2. Product mix determination 3. Private label development 4. Product mix determination: price points 5. Pricing for profit 6. Establish profitable vendor relationships 7. Obtaining maximum allowances 8. Interacting with industry experts

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Promotional Activities 1. Allocate funds to various media outlets 2. Select appropriate media outlets 3. Develop distinctive advertisements 4. Choose appropriate advertising agency 5. Design special events 6. Create and install displays 7. Produce and send publicity releases

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Store Management Activities 1. Select store management personnel 2. Determine operating hours 3. Communicate with managers about corporate policy changes 4. Communicate to learn of potential problems 5. Manage customer service department

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Store Operations Activities 1. Maintain physical plant 2. Manage security of facilities 3. Purchase supplies necessary to operate store 4. Manage receipt of new merchandise

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Human Resources Activities 1. Establish job specifications to aid in hiring of new employees 2. Develop effective recruitment programs 3. Train new and existing employees 4. Develop competitive benefits packages 5. Evaluate employee performance 6. Establish attractive compensation program 7. Participate in management-labor relations

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Large Chain Organizations Decisions made from headquarters:  Buying and merchandising  Advertising and promotion  Warehousing  Product development  Human Resources  Accounting  Supply purchasing  Real Estate Development  Market research

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Off-site Classifications Catalogs Internet Web site organizations Home shopping organizations

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Trends in Organizational Structures Restructuring to accommodate Multichannel Expansion Consolidation of Divisions Decentralization