Overview of Management and Leadership

Overview of Management and Leadership

In order to understand whether the online retailer or the traditional retailer is a better choice, you must first become familiar with the differences between the both. Over the past few years the internet has become a competitive source to the traditional retailers, it has created new ways to do business with much less capital planning than the high capital needs of traditional retailers. Based on this information the management and leadership should be addressed for each type of business differently based upon their specific needs.

One traditional retail store that comes to mind is Wal-Mart. The organizational structure of a retail store varies depending on both the size and type of the business. In order to determine this we would have to specify all tasks that need to be performed and divide all the responsibilities amongst the employees, and finally organize a chart. This traditional retailer's structure is made up of three divisional structures, including Wal-Mart, Sam's Club, and international stores as well. As time went by the store has grown and the retail business has evolved, the dynamics of the organization's structure has changed over the years which makes it a paramount to redesign the store's organizational chart to support the decision-making, partnership and leadership capabilities that are essential during and after a growth period.

One online retailer that comes to mind as an example is Ebay. Digital information technology has decreased the cost and inconvenience of leaving your home to go out and shop. Online stores operate at a faster pace than a traditional retailer store does prior to the popularization of digital technology and commercialization of the internet. It is basically based on people having to drive to the store, search in the store, speak to a sales person, etc. or online retailers allowing people to shop at the convenience of their own homes, quick and easy. The structure is basically flat and unorganized because the chairman has the most authority out of the rest of the team. This online retailers organizational structure is decentralized because they pass their decision-making authority and responsibility to other organizations, pretty much leaving all decisions to the management team.