Most of the biggest French firms are doing new organisations in order to save operating cost. It is directly linked with the fact that the growth of yearly turnover is very low (less than 2%). Indeed, there is a structural decline of the purchasing power. The companies have to find solutions to entice costumers into buying. The headquarters of Auchan have realized that the regional headquarters were too far from the reality of the hypermarket and the concerns of the directors of hypermarkets. The trend was the widening of the gap. The general and strategic decisions were taken by senior executives who had forgotten the daily concerns of hypermarkets in terms of costs, competitions, consumptions, relationships between the managers (shopwalkers, department managers, human resources manager…) and the employers (salesmen, technicians, labourers, cashiers…). The senior managers used to take decisions from their office in the regional headquarters without being aware of the case by case situations in hypermarkets.
[...] The new organisation: work in progress The new organisation has changed the global organisation on several stages, mainly geographical organisation and rework of the staff in the regional headquarters The new geographical organisation From the takeover on “Dock de France” in 1996 to April 2005, Auchan France was divided into 9 regions. These regions were heterogeneous in terms of profitability, dynamism of the sales forces, the growth of the turnover, potential of customers and the sales surface of hypermarkets. The new organisation has foreseen a cutting up into 5 operational regions (see the appendix 3). [...]
[...] The reflections on a new organisation: a necessity The top managers of Auchan France, the president of board of directors, Arnaud Mulliez (the son of Gerard Mulliez), the vice-president Henri Matthias and Philippe Baroukh, the general manager of Auchan France noticed that Auchan France had lost his sense of simplicity and reactivity. Most of hypermarkets directors were agreed with this statement. The board of directors have decided to launch a wide reflection with the program “Auchan 2010”. The main concerns are the organization and the simplification of Auchan France The method A small committee composed by members of the general direction and supervisory board have worked from the real needs of hypermarkets. [...]
[...] The “operational director” is supported by a Human resources regional director and a controller of management The new roles of the director of hypermarket With the new organisation, Auchan wants to give an opportunity to the directors of hypermarkets to have more autonomy in their daily decisions. Hence, the director will decide with his staff on key issues such as promotions, the ways to extend the sales surface, they will be directly connected with the authorities. The top management wants to give back the sense of trade and shopping to the directors and their staff. [...]
[...] On the other hand, some employers were not spoiled for choice, they accepted a new position in a new location or they resign and keep in mind that they lost some advantages such as the discount on prices in all brands of the Auchan group or the shareholdings which guaranteed very interesting rates. On the long term, there will have a reduction of jobs, between 180 and 200 in former region headquarters and also in the general headquarters. Of course, through the speeches, the top management has not spoken in terms of restructuring. [...]
[...] 2 Appendix The Auchan group in Appendix The new organization: New geographical cut-out Appendix The new organization: organisational chart 24 Appendix The principles of the new organisations: Sharing the trade between the general manager and the directors of hypermarkets Caption: DG (Directeur Général): General Manager DM (Directeur de magasin): Director of hypermarket CS (Chef de Secteur): Managers of hypermarket's department (managed several shop walkers). There are 5 departments in Auchan hypermarkets: Clothes, Electrical appliances, Bazaar, Gross Consumption products and “metiers de bouche” (bakery, delicatessen, pastry, butchery, fishmonger) CR (Chef de Rayon): Shop walker DA (Directeur des Achats): Purchasing manager DP (Directeur Produit) : Manager of product Réunion régionale DM : Meetings of directors of hypermarkets by operational regions Synergie régionale rayon: Meetings of shopwalkers Synergie régionale secteur: Meetings of managers of hypermarket's department IX- Bibliography Articles Florent VACHERET et Bertrand GOBIN, “S'aimer soi-même pour mieux aimer ses clients“, Linéaires, n°190, March 2004, p.26-30. [...]
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