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Organisational Structure of Ace Hardware : Ace Hardware Corporation is a hardware cooperative based in Oak Brook, Illinois, United States. Ace Hardware was founded in 1924 by Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher in Chicago, Illinois.
[edit] History
Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders' and members' stores. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative,[1] and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
As of 2005[update], the $13 billion retail hardware cooperative is made up of more than 4,600 independent stores in all 50 states of the United States and in 70 different countries. Ace Hardware was named after the Ace fighter pilots of World War I, who were able to overcome all odds.
CEO
Edward Wehmer
Chairman of the Board
Peter Crist
Director
Bert Getz
2
Director
Joseph Damico
2
Director
Charles James
Director
Scott Heitmann
Director
Ingrid Stafford
Director
Thomas Neis
Director
Christopher Perry
2
Director
Patrick Hackett
2
Director
Albin Moschner
3
Director
Hollis Rademacher
Director
Bruce Crowther
CFO
David Stoehr
COO
David Dykstra
2
Executive Vice President
Frank Burke
Executive Vice President
TC
Executive Vice President
MJ
Administration
LG
Risk Management
JF
4
Credit
Richard Murphy
Regional Market
JB
Regional Market
JC
CTO
LB
Wealth Management
TZ
Marketing
MD
Vertical Differentiation
Span of control (division of authority)
The number of subordinates that a single manager directly manages.
Organizational hierarchy choices
Flat structures
Few organizational levels
Wide spans of control
Tall structures
Many organizational levels
Narrow spans of control
Tall and Flat Structures
Centralization or Decentralization
Authority patterns in organizations:
Centralized
Decision making retained in the hands of upper-level managers.
Decentralized
Decisions delegated to lower levels in the organization.
Centralization (Structural) Choice?
Advantages of decentralization
Reduced information overload on upper managers.
Increased motivation and accountability throughout organization.
Fewer managers; lower bureaucratic costs.
Advantages of centralization
Easier coordination of organizational activities.
Decisions fitted to broad organizational objectives.
Exercise of strong leadership in crisis.
Faster decision making and response.
Principles of Organization Design
Organizational structure should reflect a marketing orientation
Organization should be built around activities, not around people
Responsibility and authority should be related properly
Span of executive control should be reasonable
Organization should be stable but not flexible
Activities should be balanced and coordinated
[edit] History
Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders' and members' stores. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative,[1] and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
As of 2005[update], the $13 billion retail hardware cooperative is made up of more than 4,600 independent stores in all 50 states of the United States and in 70 different countries. Ace Hardware was named after the Ace fighter pilots of World War I, who were able to overcome all odds.
CEO
Edward Wehmer
Chairman of the Board
Peter Crist
Director
Bert Getz
2
Director
Joseph Damico
2
Director
Charles James
Director
Scott Heitmann
Director
Ingrid Stafford
Director
Thomas Neis
Director
Christopher Perry
2
Director
Patrick Hackett
2
Director
Albin Moschner
3
Director
Hollis Rademacher
Director
Bruce Crowther
CFO
David Stoehr
COO
David Dykstra
2
Executive Vice President
Frank Burke
Executive Vice President
TC
Executive Vice President
MJ
Administration
LG
Risk Management
JF
4
Credit
Richard Murphy
Regional Market
JB
Regional Market
JC
CTO
LB
Wealth Management
TZ
Marketing
MD
Vertical Differentiation
Span of control (division of authority)
The number of subordinates that a single manager directly manages.
Organizational hierarchy choices
Flat structures
Few organizational levels
Wide spans of control
Tall structures
Many organizational levels
Narrow spans of control
Tall and Flat Structures
Centralization or Decentralization
Authority patterns in organizations:
Centralized
Decision making retained in the hands of upper-level managers.
Decentralized
Decisions delegated to lower levels in the organization.
Centralization (Structural) Choice?
Advantages of decentralization
Reduced information overload on upper managers.
Increased motivation and accountability throughout organization.
Fewer managers; lower bureaucratic costs.
Advantages of centralization
Easier coordination of organizational activities.
Decisions fitted to broad organizational objectives.
Exercise of strong leadership in crisis.
Faster decision making and response.
Principles of Organization Design
Organizational structure should reflect a marketing orientation
Organization should be built around activities, not around people
Responsibility and authority should be related properly
Span of executive control should be reasonable
Organization should be stable but not flexible
Activities should be balanced and coordinated
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