Reference no: EM132905435

AMMAR'S

Department store, Ammar's, is forking out $90 million to give its three Corporate Area locations a facelift, while putting in a website as it plays catch-up to online shopping, which is fast becoming the main source for sales for a growing list of goods and services around the world. Ammar's sells mainly clothes, accessories and household goods at its locations in downtown Kingston, Village Mall in Half-Way Tree and Sovereign Centre in Liguanea.

Traditional brick and mortar businesses have, for some time now, been facing stiff competition from online merchants, with large ones like Amazon operating globally, aided by courier companies and e-payment outfits that have mushroomed in recent years. To keep up with the competition and reach customers, who have largely stayed away from stores during the coronavirus pandemic, more businesses have been making a big push to establish an online presence and add deliveries to their suit of services.

Retailers of clothes and home goods have felt the brunt of the migration online that has crept in over the years, and more so from the dramatic fall-off in foot traffic since the pandemic. Several top names in the business globally have filed for bankruptcy with some closing down. Bankruptcy filings this year have included Lucky Brand Jeans and Tailored Brands, Men's Warehouse, Jos. A. Bank and JC Penney.

Locally, Ammar's is among the traditional storefront retailers who are investing in holding on to market share. The company, which has been operating in Jamaica for almost 60 years, is reporting that it slowly started changing its business model to suit customer demand back in December, when it rolled out what it termed its personal shopper system. That allows customers to make orders through messaging service WhatsApp with assistance from its in-store sales team, with the purchases collected using the kerbside pickup delivery method made popular by the pandemic. "We found that it works pretty well, for especially men. They don't want to go into the store and people outside of Kingston also utilise the option a lot," Ammar's' director Michael Ammar Jr told the Financial Gleaner.

A bigger move into the e-commerce space for the retailer will come next month when Ammar's will launch its website to target customers who prefer to shop from the comfort of their home. The business has also started making home deliveries with courier service Tara as delivery partner. Ammar's was among many local businesses that saw sales plummet with the implementation of COVID-19 restrictions earlier this year. During that time, sales fell some 70 per cent at Ammar's' brick and mortar .

1. With reference to the prescribed text, identify and explain any TWO of the forces that serve as impetus to the changes being undertaken by Ammar's

2. Provide two reasons why an employee at Ammar's would not welcome the changes being made and two solutions to overcome those reasons for resisting the changes.

3. Highlight one positive and one negative impact of COVID-19 pandemic on Ammar's.

4. What effect do you think the addition of e-commerce will have on the organizational structure of Ammar's?

5. How would you classify Michael Ammar, Jr., as a leader if he is the one leading the changes in the organization? Explain.