Sunset Grocer Essay

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

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

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