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Associated Wholesale Grocers Business Analysis

517 Words3 Pages

Associated Wholesale Grocers is the second most profitable wholesaler in the nation. Naturally, there have been hundreds of journal articles written about the success of AWG. Most companies obtain articles written about them that describe how well the organization is performing within their industry. The journal article chosen for this question displays how well Associated Wholesale Grocers has shown in the recent years. In 2012, AWG completed their record year with record sales reaching nearly 8 billion dollars (Dudlicek, 2014). During this year, AWG’s competitors did not perform highly as AWG performed. Apparently, after 2012, Associated Wholesale Grocers focused on increasing their profits even more. AWG’s success not only benefited the wholesaler but it also benefited their customers. At the end of every five years, AWG pays a patronage back to the customer who is calculated based off how much each …show more content…

Naturally, their overall objective is to provide the absolute lowest cost on products to their customers. The CEO expressed that the company is trying to eliminate cost within the system (Dudlick, 2014). Apparently, for AWG to perform this task, they have to equip their employees with the right tools for negotiation. Also, saving money within their distribution systems has been a significant focus of the company. Naturally, this article performs an exquisite job by explaining how Associated Wholesale Grocers plans to control internal and external costs. Controlling costs in life or death in an industry such as theirs. Also, the journal chosen expresses in great detail the different store concepts that AWG created that keeps their sales growing. Some of these store concepts are so unique that there are no other stores like them in the nation. AWG’s newest store concept is a cost-plus-ten format that allows their customers to offer groceries to their customers for a low

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