a) The Sunset Grocers Case Study will help in understanding the nature and scope of grocery store industry. The defining characteristics of the grocery store industry would include retail store that basically sells goods and particularly perishable foods such as bakeries, delis, meat, fresh produce as well as other non-food products. Sunset Grocers is a large grocery store that stocks substantial amounts of non-food goods such as household items and clothing. In the recent past, the grocery store industry has undergone tremendous changes that can be attributed to several underlying drivers. Take, for instance, the Sunset Grocers whose humble beginning can be traced back in 1998 in Penticton and grew to have several stores in rural and urban …show more content…
One of the most conspicuous resource strengths is abled human resources that include a senior advisory board that allows the company to make prompt responses to emerging challenges. The company also prides in diligent managerial team that carries it mandate in line with the Sunset Grocers’ operation and organization structure. The company has as well built its name in the corporate world and gives it the advantage and capacity to have access to credits from reputable financial organizations in case it has a project that requires funding. The company has huge and sufficient cash reserves and this among most important resource in a business as with money, the company can have sustainability and take can operate it in a way that makes the customers satisfied. The inability to withstand the national economic slowdown can be cited as one amongst several weaknesses of the company. The 2008-2010 economic meltdown adversely affected the operational and organizational framework of Sunset Grocers. During this time, the company was forced to reduce expenses in response to the decreased overall spending of consumers and as the key ratio in the industry was wages, the company was forced to cut staff through layoffs and natural attrition. This cut the number of employees from a high of 240 employees to a current 150. The prospects of acquisition are plagued with challenges the company has to juggle with as this has slowed …show more content…
The 2008-2010 period will remain a time of reckoning to the global business community and the Canadian economy just like the United States one had experienced a slowdown. Regardless of the fact that consumers were still buying food, the overall spending reduced dramatically. As a result, Sunset Grocery had to cut on expenses. A vital quotient in the industry was wages or Gross Margin in both in dollars. In an ideal world, this never surpassed 50 percent which meant that the total wages represented 50 percent or half of the gross margin. During this time, the total wage hardly ever fell below 40 percent. The sales having gone significantly low, this ratio had risen to almost 52 percent at Sunset Grocers and still escalating. David Hannaway was left with no any other option other than to cut staff through layoffs and natural attrition and from 240 employees in 2008, the company remained with a current employee size of 150 people. The Sunset’s most profits came from a chain of several stores such as in Alberta and BC towns besides acquisition of related business including equipment supplies and restaurants. This made Sunset Grocers to withstand the pangs of economic
Publix Super Markets Inc. cemented its position in the hearts of consumers emphasizing customer service and a family-friendly atmosphere over being the low-cost provider. Historically, the Florida native has been hailed the No. 1 supermarket among its regional rivals in the customer satisfaction battle royal. Consumers have been enamored with the fan favorite for over 85 years. Publix service strategies are passionately focused on customer value ensuring customers are provided a shopping experience tailored to bestow upon them the highest degree of satisfaction. This includes their digital space, where shoppers browse for coupons, and physical locations where customer service representatives quickly and happily respond to customer inquiries
Economic changes have surmounted to drive Bob’s into unknown territory based on their history as a mom and pop supermarket set in rural Indiana. One primary concern for Bob’s should be their local and domestic economy that has fallen deep into a recession in 2008. When Bob’s started up in 1988 they brought fourth some very substantial profits increasing sales by 40% and in their first year of operation where they experienced a first year profit that tripled the prior store owner’s profit. As the world competitors such as Walmart and Kroger have arrived in the area Bob’s has been out paced in advertising, store décor, and product selection. This new regional economic stress is causing Bob’s to continue to lose both market share and regional
Why has Loblaw’s strategy been successful? Loblaw success can be attributed to its efficient operations, its customer loyalty programs, the popularity of its private label brands, and large-scale purchasing efficiencies. Loblaw has showed a good understanding of the Canadian grocery market due to its time-tested strategy. The company has presence in virtually all Canadian provinces with a tailored value chain that helps them achieve high revenue and standards. Additionally Loblaw offers competitive wages and benefits.
Purpose To be an innovative grocery store by providing friendly service, clean stores, quality merchandise, and speedy check-out lanes throughout our locations. Vision To provide excellent customer service that exceeds expectations while building long-term relationships with customers.
Metro’s profit margin is also about double the percentage of Loblaws which demonstrates that Metro is better at taking revenue and turning it into profit than Loblaws. This company’s net earnings had a large increase of 12.9% from the previous year. The profit margin is important for shareholders because it shows them that the company is efficient and profitable. In addition, food deflation should ease in the next quarters so this will help grocery retailers, like Metro, to increase their profits and
Trader Joe’s is a small, American grocery store chain that would benefit from expanding internationally into the Canadian market. As we have seen in recent months, Target Corp. just pulled all of their locations out of Canada, but this is largely due to the fact that their international strategy did not fit well with the Canadian market. This paper will outline why Trader Joe’s is a good retailer for international expansion, why Canada mixes well with their business strategy as a country to expand to, the strategic plan Trader Joes should engage in during expansion, and five strategic recommendations that lead to Trader Joe’s advantages in
In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their
Running head: pantry inc. case analysis 1 pantry inc. case analysis 20 Pantry Inc. Case Analysis Sekia Grimes GEB5787 Table of Contents Introduction 3 Industry Analysis 4 General Environment 4 Sociocultural………………………………………………………………………………4 Political/Legal…………………………………………………………………………… .4 Economic…………………………………………………………………………………5 Porter’s Five Forces ……………………………………………………………………………... 5 Rivalry……………………………………………………………………………………5 Threat of New Entrants…………………………………………………………………..
Considering using more technology inside Trader Joe’s would also speed up business inside Trader Joe’s. 5 – Conclusion This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious.
Their strengths are good food, reasonable price, high customer traffic, clean atmosphere, family run and operated. However, their weaknesses were; lack of management expertise, lack of accountability, inefficient human resources management skills, lack of innovation and therefore missed growth opportunity, and a hostile working
This industry will be faced challenged when the location is not easy to be reached and the population of the areas are not much as expected. For example, the Aeon supermarket at Mid Valley Megamall Kuala Lumpur, the sales of this location is guaranteed as the population daily at Mid Valley Megamall in 120,000 peoples approximately (malaysiandigest, 2014). Other than that, most of the supermarket are operates or leasing in a popular shopping malls. This is because peoples nowadays are not going to supermarket on usual day or without purposes. For instance, Giant hypermarket at Plaza Sungei Wang is a good example.
BACKGROUND: Deliveroo is a British online food delivery company that operates in the UK, the Netherlands, France, Germany, Belgium, Ireland, Spain, Italy, Dubai, Australia, Singapore & Hong Kong. It was founded by two childhood friends Will Shu, who has a background in finance, and developer Greg Orlowsk in 2013. This unique idea arose to founder, Will Shu, when he moved from New York City to London to work as an investment banker and was dissatisfied by the food delivery options. He witnessed that customer’s choice was limited only to restaurants that already provide a takeaway service. Thereby, he analyzed the opportunity to exploit the niche market by creating partnerships with higher-end restaurants.
Executive Summary Taco Bell is a fast food restaurant chain in America based in California (Grant, 2006). This fast food restaurant specializes in serving burritos, nachos, quesadillas and tacos among other food items in their menu (Grant, 2006). It serves about 2 billion consumers every year in over 6,500 restaurants majority in the United States, where over 80% are operated and owned by independent franchisees in countries including Australia, United Arab Emirates, India, Mexico, Poland, Greece, Philippines, United Kingdom, and Chile among others (Grant, 2006). This fast food restaurant was founded by an individual known as Glen Bell (Walker, 2014). Tacos Bell had a franchise in Dubai shopping mall which was opened in November 2008 and closed
The owners of Sisig sought to be the pioneer Filipino food company by providing unique and memorable customer experience to its clientele. The two individuals, Evan Kidera and Gil Payumo, focused on delivering innovative products and benefitting from a growing customer base. Specifically, being one of the food truck inventors in San Francisco, Senor Sisig had an obligation to revolutionize the sector (Kidera et al., 6). In fact, the decision to operate a unique operational model enabled the company to expand its services from one food truck to current three under its fleet. Through the provision of quality products, Senor Sisig has maximized its returns and continues to be the leading food truck establishment in the Bay Area.
A critical review of the retailer was carried out based on the external factor analysis using PESTLE (Political, Economic, Sociological, Technology, Legal and Environmental) and using Porter’s Five Forces Model of Competition to understand the correlation between suppliers, buyers, competitors within an industry, potential competitors, and alternative solutions to the problem being addressed. Background of the Company Giant was founded by the Teng family as a simple grocery store in one of the suburbs of Kuala Lumpur in 1944. Acquired by Diary Farm in 1999, Giant’s mission was to offer a wide variety of products at the lowest possible prices and closer to residential areas. Key to Giant’s growth is the ability to continuously offer value for money products and the core principles are retained even while pursuing the international brand status.