Premium Essay

Business Strategy

In: Business and Management

Submitted By areejmohd
Words 1679
Pages 7
Trader Joe’s questions; 1. How do firms in the supermarket industry make money? 1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms? 2. What do the results say about how firms in this industry can deliver strong financial returns in different ways? 2. What are the key sources of Trader Joe’s competitive advantage? 3. What are the main threats to Trader Joe’s competitive advantage? Is their advantage sustainable? 4. How would you modify Trader Joe’s strategy moving forward?
What are the key sources of Trader Joe’s competitive advantage?
Trader Joe’s Competitive Advantage
Their competitive advantage stems not from this “less is more” approach to strategy but from how they execute it. Dan Bane explained, “It’s kind of a loose-tight company. We’re very controlling and tight about cost structure and processes; we’re very loose about how we want the stores to run. We just try to do a good job of what we do, trying to find the next Charles Shaw and trying to keep our hustling going on the buying side.”8 He noted that they don’t carry products like flour, toilet paper, or Coke because these are commodities for which Trader Joe’s can’t get a better price or offer unique value. Bane also acknowledged that by routinely turning over 20 percent of their slower-moving products, customers sometimes were upset and he frequently received letters asking why a favorite product had been discontinued.

To execute their strategy, Trader Joe’s relies on seven core values that Bane articulates as follows:9
• Integrity. In the way we operate stores and the way we deal with people. Act as if the customer was looking over your shoulder all the time.
• Product-driven. Our strategy emphasizes price, product, access, service, and experience. We want to excel...

Similar Documents

Premium Essay

Business Strategy

...Slide 1 [pic] Slide 2 LO 1.1 [pic] Sony Ericsson Company is a global provider of mobile multimedia devices and phone accessories. Strategic planning is important process for any organization, but usually fall. Sony Ericson is one of the examples. The reasons are different: the understanding of process of strategic planning are not clear as mission, vision, goals and core competencies, which affect the success of the company. Slide 3 [pic] Strategy of Sony Ericsson is to increase the internal growth with developing new products and technologies. Strategy is a plan for future development of organization, where the long-term goals are successfully achieved by structured decisions (Johnson et al, 2011). Sony Ericson strategy plan did not work, due to lack of understanding customer desires and preferences. To achieve organizational goals management has to develop the customer relationships. Slide 4 [pic] The Sony Ericsson company sees itself as a global brand accessible to everyone. All individuals can be heard. Company has a commitment to develop new communication products, which are accessible to everyone including and individuals with special needs. Sony Ericsson did not follow its commitment, due to lack of information of user desires, which have to be in centered design. The purpose of mission statement is to exceed customer’s expectations. Sony Ericson must deliver benefits and values to individuals. For example delivery......

Words: 3374 - Pages: 14

Free Essay

Business Strategy

...A business strategy is concerned with major resource issues e.g. raising the finance to build a new factory or plant. Strategies are also concerned with deciding on what products to allocate major resources to - for example when Coca-Cola launched Pooh Roo Juice in this country. Strategies are concerned with the scope of a business' activities i.e. what and where they produce. For example, BIC's scope is focused on three main product areas - lighters, pens, and razors, and they have developed super factories in key geographical locations to produce these items. Two main categories of strategies can be identified: 1. Generic (general) strategies, and 2. Competitive strategies. The main types of generic strategies that organisations can pursue are: 1. Growth i.e. the expansion of the company to purchase new assets, including new businesses, and to develop new products. The Inland Revenue has expanded from being just a tax collector, to other functions such as collecting student loan repayments and paying tax credits. 2. Internationalisation/globalisation i.e. moving operations into more and more countries. For example companies like Gillette, Coca-Cola, Kellogg's, and Cadbury Schweppes are major multinationals with operations across the globe. 3. Retrenchment involves cutting back to focus on your best lines. The Americans refer to this as 'sticking to the knitting' - i.e. concentrating on what you do best. Competitive advantage Competitive strategies are also......

Words: 451 - Pages: 2

Premium Essay

Business Strategy with Military Strategy

... MAN4120 Exercise 1A: Compare Business Strategy with Military Strategy Ranking the nine military maxims: 1= most important 9= least important Top 9 Maxims: 9= Simplicity-prepare clear, uncomplicated plans and clear, concise orders to ensure thorough understanding Plans are important. Strategic management relies on strategies that are first formulated, implemented and than evaluated for success. This is the most important. 8= Objective- direct every military operation towards a clearly defined, decisive, and attainable objective After plans are formulated in a general scope, now objectives or goals are also formulated in order for it to be implemented and achieved. 7= Unity of Command-for every objective, ensure unity of effort under the responsible commander In business, we have organizational structure. Strategic plans are executed by certain people with duties such as management and employees. Without this type of structure, there is no way of directing the path of success. 6=Offensive-seize, retain, and exploit the initiative At this point, strategy can now be implemented after planning. 5= Maneuver-place the enemy in a disadvantageous position through the flexible application of combat power. Part of implementing strategies, placing competitors in a disadvantage by having “competitive advantage” 4= Mass-concentrate combat power at the decisive place and time Also, part of strategy implementation, deciding when to execute...

Words: 314 - Pages: 2

Premium Essay

Business Strategy

...Part One....................................................... p 4-5 Limited growth strategy and Sony Ericsson ......................... p 6-8 CONCLUSION.............................................................................p 8 BIBLIOGRAPHY.........................................................................p 9 Introduction The following report introduces the business strategy analysis of Sony Ericsson case study based on facts and brand position. The business strategy plan has been summarized after estimation of different theoretical conformation and then validation of the most suitable and applicable approach in terms of the Sony Ericsson business case. Part One Strategy accomplishment could be performed in several ways such as substantive growth, limited growth or retrenchment. Sustainable growth strategies are one of the alternative strategies. Substantive growth is a business strategy in which the company goals to become forehanded in a short term of time and less risky. The advantage of substantive strategies is that it follow and using elements to increase their existing growth: Damage decrease; Authority efficiency; Environmental alarm; Work place surroundings. In one way the substantive growth strategy may guide the company to success, but on the other way fast growing company which looking wealth may lack knowledge on different components which are to make this strategy less risky. For example when the joint venture between Sony and Ericsson was......

Words: 1720 - Pages: 7

Free Essay

Business Strategy Assignment 1

...Starbucks Debbie Pryer, MGT578 Strategy Formulation and Implementation University of Phoenix Table of Contents Executive Summary 3 Company Background 4 Vision Statement 4 Recommended Vision Statement 5 Mission Statement 5 Values Statement 7 Environmental Analysis 7 Long Term Objectives 14 Strategic Analysis and Choice 15 Plan Goals and Implementation 18 Financial Projections and Analysis 20 Critical Success Factors 24 Controls and Evaluation 25 Conclusion 26 References 28 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the world’s best coffee to the world’s best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities. Starbucks should focus on the following three strategies: (1) expand the U.S.......

Words: 1232 - Pages: 5

Premium Essay

Why Is Strategy Important to Business?

...Michelle Johnson MT460: Management Policy and Strategy Unit 2 Project: Why is strategy important to business? Kaplan University August 16, 2011 Strategy is important in business because it gets all the things that you want to do, so you'll be able to go through them quickly and productively. This will also help your competition doubt their own strategy. One example that I have heard of is think of a football game without strategy. Who will know what they need to do if you don't have some type of organization of the system you are trying to run. It is also important to a business to have some type of base plan for any business that effects its revenue, expenses and profits. It provides a long term direction to the organization and it helps the organization achieve a competitive advantage. It will also tell about the business in the market, values and the way that they may handle resources in order to meet the objectives of the company as a whole. One of the main things that it helps to do is helps to analyze the internal and external environment. Something to remember is that without strategy the company would be pretty much shooting in the dark. Would something work ? This would be a continuing question without some type of direction. It allows the business leaders to weigh the pros and cons of different decisions in order to get to the proper way to go. Taking into mind the most cost effective process that will be needed. Strategic management is defined as the......

Words: 453 - Pages: 2

Premium Essay

Business Strategy

...Introduction Business strategy it should be the foundation of any business weather it was small or huge business, this report will define business strategy, discuss formatting business strategy, and develop competitive advantage over competitors, how to apply strategy using resources and challenges faced by the organization, importance of business strategy, Referencing Qurum Business Group Company LLC, it’s an international company rooted in Oman, they provide services like : Facilities Management, Financial, Engineering, Contracting & Landscaping. Business strategy in simple words is a long term business plan that designed and set to achieve and reach certain goals or objectives, business strategy like a map guide the stakeholder where to go and which way to take! In order to set a business strategy goal, market and customers should be defined. So business strategy is long term plan that guide the action to reach a goal or more. Business strategy is top and core management responsibility to set. haveing strong and a good business strategy won’t mean that the business won’t face unexpected circumstances and it’s not a condition to avoid loss as other conditions can decide the satisfaction of any business, but good business strategy minimize the risks. Business strategy should be revised and amended every period of time as it’s usually 3 to 5 years to facilitate the changes in either the internal capabilities of the company or the external environment. There are......

Words: 1432 - Pages: 6

Premium Essay

Business Strategy

...Assignment Brief | Title of Qualification:Edexcel BTEC Level 4 HNC in Business | Unit title: Unit 1 Business Environment | Unit code(s): Y/601/0546 | Learner:Nuraiym Azygalieva | Assessor:Dinara Bobusheva | Internal Verifier:Talant Asan uulu | Title of Assignment:Organizational purposes of Business and effective strategy in context of Business start-up.Grading criteria: P1.1, P1.2, P1.3; M1; D1.Related learning outcomes:LO1: Understand the organizational purposes of businesses. | Assignment Number:__1__of __3__for this Unit | Date assigned:November 1, 2013 | Date of review:November 8, 2013 | Date for final submission:November 15, 2013 | Learner declaration:I confirm that this assignment is my own work and any assistance received has been acknowledged and all sources have been stated.Signature: Date: November 15, 2013 | Scenario:In order to facilitate the interactive teaching technique due to accepting the basic findings of Interactive Business Situations Analysis conducted during the seminars and independent students’ study, the following two alternative scenario have been proposed for designing the required Assignment # 1 as follows:Scenario # 1:Primary terms of Business start-up to be organized as “Skull-Up” company are determined as Business partnership with full liabilities legal form. Business specialization of considering enterprise is Restaurant service providing...

Words: 3175 - Pages: 13

Premium Essay

Stability Strategies In Business

...Functional strategies mainly focused on the events associated in practical areas of a business that support the anticipated competitive business level strategy and balance each other. These strategies describe the methods selected to be used within the practical areas of a business that’s utilized in the corporate level or business strategy. Functional strategies recognize and organize temporary actions, usually under a year. Structure of functional strategy is normally delegated by the business manager to lower management teams that oversee the operations of the business. Businesses vary in structure as well as the roles and responsibilities of their practice areas, these areas are research and development, marketing, finance, purchasing...

Words: 1305 - Pages: 6

Premium Essay

Business Strategy

...Chapter 5 - Business-Level Strategy TRUE/FALSE 1. A business-level strategy is a “big picture,” highly-generalized action plan that will move an organization toward achievement of its general vision. ANS: F PTS: 1 REF: Page 98 OBJ: Learning Objective 1 KEY: Knowledge MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills 2. A generic business strategy is one that can be used in all industries and by all types of firms. ANS: T PTS: 1 REF: Page 99 OBJ: Learning Objective 1 KEY: Knowledge MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills 3. Wal-Mart has not adjusted its business model since the mid 1990s. ANS: F PTS: 1 REF: Page 99 OBJ: Learning Objective 1 KEY: Knowledge MSC: AACSB: Reflective Thinking | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills 4. Competitive scope describes the breadth of the target market the organization wishes to serve. ANS: T PTS: 1 REF: Page 99-100 OBJ: Learning Objective 2 KEY: Knowledge MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills 5. In general, firms with a standardized product should narrowly segment their market. ANS: F PTS: 1 REF: Page 100 OBJ: Learning Objective 2 KEY: Comprehension MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills 6. Typically, the customers of organizations using the......

Words: 3275 - Pages: 14

Premium Essay

Business Strategy

...About strategy+business strategy+business (s+b) is an award-winning management magazine, published in print and on the Web for decision makers in businesses and organizations around the world. Our purpose is to illuminate the complex choices that leaders face — in strategy, marketing, operations, human capital, public presence, governance, and other domains — and the impact of their decisions. As of 2010, we are one of the few business magazines with an expanding circulation, and we think one reason is our pragmatic but far-ranging focus, helping companies navigate the transition into the emerging global economy. strategy+business is published by the international management consulting firm Booz & Company. The articles we publish are characterized by: Distinguished contributors. We feature writing by chief executives and other well-known corporate leaders, best-selling business thinkers and philosophers, prominent academics and researchers, seasoned practitioners from Booz & Company, and journalists with a track record in revealing the patterns below the surface. Distinctive content. Our purpose is to find and share the ideas and stories that raise the game for management, written and expounded clearly enough to provide the basis for thoughtful action. Through in-depth feature stories, thought leader interviews, and strategic commentaries, each issue of strategy+business provides an informed, global perspective on ideas and practices relevant to large-scale......

Words: 990 - Pages: 4

Premium Essay

Generic E-Business Sell-Side Strategies

...Activity Generic e-business sell-side strategies For each of the six generic sell-side strategies, identify a good example of a company that has successfully adopted that strategy and identify examples of each strategy that have failed. Generic e-business sell-side strategies Chaffey (2009) Chapter 5, Activity 5.3 lists six generic strategies, originally coined by IDC Research. 1) Attack e-tailing. As Chaffey describes this is an aggressive competitive approach that involves frequent comparison with competitors’ prices and then matching or bettering them. The more people use price comparison sites such as ShopSmart (www.shopsmart.com) the more is it important that companies ensure their price positioning is favourable. Good examples include shopping sites such as Buy.com (www.buy.com) and Evenbetter.com (www.evenbetter.com). In those stores people can now find the prices of all comparable items in a category but also guarantee that they will beat the lowest price of any competing product. These sites have implemented real- time adjustments in prices with small increments based on price policy algorithms that are simply not possible in traditional retailing. An other example might be Lowestfare.com which is a leading provider of discount travel products and services for the leisure travel market or Sunelec.com has the lowest prices in the industry Solar & Wind Energy Distributors, Dealers, & Wholesalers. 2) Defend e-tailing This is a strategic......

Words: 884 - Pages: 4

Premium Essay

Business Strategy

...Q.1 External Environment- What is External Environment The external environment normally refers to outside forces that may influence an organization. Two factors make up the external environment: task and general. The task environment typically consists of external groups that may have an influence on daily operations of an organization. In the general environment, outside forces may influence an organization’s ability to do business. 外部環境通常是指外部勢力可能影響一個組織。有兩個因素構成的外部環境:工作和一般。任務環境通常包含可能對組織的日常運作產生影響的外部團體。在一般環境下,外部勢力可能會影響一個組織的做生意的能力。 Generally, the task environment has dimensions that are directly interactive with how an organization operates. The task environment may include competitors, customers and suppliers. Since these dimensions may influence daily operations, more attention is usually devoted to each during strategic planning. 一般情況下,任務環境具有尺寸是直接的互動與組織如何運作。任務環境包括競爭者,客戶和供應商。由於這些方面可能會影響日常運作,更多的注意力通常用於各項期間的戰略規劃。 用PESTEL & 5 FORCE 做example. Political: Democracy, Security, Stability of Government, Attitudes toward foreign companies Economic: GDP trends, Interest rates, Money supply, Inflation rates通貨膨脹, Unemployment levels, Wage & Price controls, Revaluation升值 or Devaluation貶值, Energy availability and cost   Socio-cultural: Lifestyle changes, Career expectations, Consumer activism消費者行動, Rate of family formation, Growth rate of population, Age distribution of population, Regional shifts in population人口區域轉移, Life expectancies, Birth......

Words: 1241 - Pages: 5

Premium Essay

Business Strategy

...Introduction Generally speaking, strategy is considered as an organisation’s basic direction for the future (Lynch, 2006). As Porter (1980) pointed, the essence of strategy is about setting a goal and cultivating sustainable competitive advantage to achieve this decision. However, organizations have many different perspectives about strategy’s choice. The purpose of this essay is to critically review ‘Competing on Capabilities: The New Rules of Corporate Strategy’ (Stalk et al, 1992). The position of the article in strategic debate will be examined first, followed by its main strengths and weaknesses respectively. Put the article in a broader debate The contents of the article can be ascribed to different debates in strategy academia. However, resource based view (RBV) versus positioning view may be the most appropriate debate for this article. Basically, this debate reflects that company’s strategy is influenced by company’s internal resources or external industry environment (Whittington, 2001). Stalk et al (1992) hold the view that organizations can succeed; the key is whether the companies can transfer their fundamental business processes into the capabilities, which can deliver superior value to the customers. This can be seen as authors emphasize RBV rather than the opposing view. Resource based view is identifying and classifying the firm’s inside assets which give the firm competitive advantages (Wernerfelt, 1984). Specifically, internal resources which......

Words: 1109 - Pages: 5

Premium Essay

Business Strategy Lululemon

...Dawn M Carlisle Business Policy and Strategy Lululemon Case Lululemon Case Analysis For Lululemon, this particular sports performance apparel industry has a few growing pains as well as huge success. In analyzing their company strategy, they have a great reputation for the quality of their clothing, they have an innovative product that is a best seller among their clients. Many women and men today enjoy Yoga and want to be comfortable in the clothing when working out. These have been their strengths in their ability to have made high profits. With strengths comes weaknesses. Lululemon has a hard time with their brand recognition in other markets. They have been a huge success in Canada, but once brought to other international markets, they are definitely competing with bigger companies who may sell a similar product. This would be an opportunity as they can tap into newer markets promoting the brand. Lululemon has a strong risk of threat from other competitors via online. Since we live in a digital world, it’s easy for businesses to compete using the internet or e-commerce. Lululemon also has the threat of new entrants to worry about. By low switching costs, they can increase the need for substitutes, but they can’t change the latest fashion trends, season, etc. Substitutes are a threat but minimal. Not a lot of competitors such as Nike or Reebok can fulfill this clothing need. However, it also gives buyers more power as they play a huge role in competitive......

Words: 547 - Pages: 3