...2. Discuss the specific advantages of decentralized and centralized approaches of an IT architecture at Supervalu Advantage of decentralized: Decentralization gives individual store directors autonomy over their own resources without any major considerations over other directors unless it is essential to the overall organization policy. One of SUPERVALU’s turnaround strategies is moving from centralized to storecentric decision making, such as empowering store directors with greater autonomy. After SUPERVALU acquired West Coast grocery chain Albertsons, the company’s revenue model was changed. In 2006, about 77% of the company’s total revenue came from retail (Figure 3). It means SUPERVALU needs to face on running a grocery business. SUPERVALU coined the term “hyperlocal”, which is trying to become America’s Neighborhood Grocer. The main traits of a decentralized approach include flexibility, empowerment of individual business units, and service orientation. Because of decentralization, store directors could decide which merchandise to feature based on their understanding of customer needs and have more leeway in merchandising their stores based on the needs of their community; therefore, the local store can retain old customer, attract new customer, and maximum the profit. SUPERVALU also developed a comprehensive annual performance review (Figure 5); it can keep store directors more effective. Advantage of Centralization: Centralization...
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...a. Identify some costs savings Supervalu might realize by reducing the number of items it carries in inventory by 25 percent. Be as specific as possible and use your imagination. By reducing inventory by 25%, Supervalu might realize cost savings in employee time spent conducting transactions, picking, packaging, and handling inventory. This will also decrease the space required to store inventory both from eliminating a product line and streamlining packaging. This could allow space for another product line or reduce overhead costs if a section of the warehouse utilities can be turned off. The company may realize a cost savings with vendor pricing and may receive a bulk discount when ordering the same size/type of packaging. The cost to finance the inventory will be reduced as well as the cost of insurance to cover the potential loss of inventory. b. Prepare revised product-line earnings statements based on the elimination of Sugar-Bits. It will be necessary to calculate some per-unit data to accomplish this. Per unit data for Fiber-Treats and Carbo-Crunch prior to eliminating Sugar-Bits (amounts are in thousands): Fiber-Treats: Sales $480,000 ÷ 480,000 = $1.0000 Cost of production 48,000 ÷ 480,000 = $ .1000 Sales commission 6,000 ÷ 480,000 = $ .0125 Shipping and handling 10,800 ÷ 480,000 = $ .0225 Miscellaneous 3,600 ÷ 480,000 = $ .0075 Carbo-Crunch: Sales $400,000 ÷ 480,000 = $1.0000 Cost of production 48,000 ÷ 480,000 = $ .1000 Sales commissions...
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...SUPERVALU, Inc. Analysis of Professional Development Program There were only a few strengths in SUPERVALU’s Professional Development Program (PDP). The mere fact that they recognized they needed a program to develop leaders was one positive. As Paul Cimmerer indicated in the article, “SUPERVALU was not doing a good enough job of bringing new people on board or grooming them for growth and effectiveness.” That was the genesis behind the PDP program - to attract and prepare high-potential college graduates for successful management careers. In addition, it did provide rotational experience for the new hires, as they would spend one year in their work area of choice and then next year would spend six months in the two other areas before returning to their home bases for career assignments. This provided the employee with the opportunity to broaden their knowledge of the SUPERVALU, Inc. business. Both of these items indicated that SUPERVALU, Inc. was at least thinking about what it took to train a leader to do the basics of leadership. The last positive outcome of the PDP effort was that SUPERVALU recognized it as just the beginning of training and development programs within the company. This indicated they recognized they needed to do more in the area of training their leadership. The fundamental problem with their PDP effort was it was focused at creating leaders, not a leadership brand. In fact, the PDP was not even covering all the basics of developing a...
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...Global Socrates KLD Report Highlights | 5 | Analysis | | 6 | | Defining Change | 6 | | Top 5 Change Indicators | 8 | | Analysis of Initiatives | 9 | Strategic Recommendations | | 12 | Company Overview Summary Supervalu has been a participant in the grocery retail and supply chain industry for more than 140 years. Through the establishment of 1,114 traditional retail stores, 1,280 hard-discount stores, and 2,700 independent locations serviced by its Independent Business Segment, Supervalu has been able to target millions of customers who are looking to shop in traditional, premium, or hard-discounted stores. In addition, of the 1,114 traditional stores and 1,280 hard-discount stores, 805 in-store pharmacies and 899 stores operated by licensed owners, respectively, also exist within the traditional and discounted stores. Supervalu offers all types of products including, but not limited to, farm-fresh fruits and vegetables, USDA-inspected beef, pork and poultry, and an assortment of general merchandise. In addition, Supervalu is a primary supplier to approximately 1,900 stores within its 2,700 independent locations serviced by its Independent Business Segment (Supervalu 2011 Fact Book). Mission and Values The mission statement of Supervalu is as followed: “We will provide America’s Neighborhoods with a superior grocery shopping experience enhanced by local expertise, national strength and a passion for our customers” (Mission Statement). The values of...
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...to Business May 5, 2011 Supervalu • The full name is Supervalu Inc. This company’s main headquarters is located at 11840 Valley View Road in Eden Prairie, Minnisota. • History: The Supervalu company was created in Minneapolis in the 1870’s. In 1871 three men named Hugh Harrison, George Newell, and W. D. Washburn created a company known as Newell and Harrison. In 1874 George Newell bought out the other two men and renamed the company George R. Newell Company. In 1879, Hugh Harrison started his own company call H. G. Harrison Company. In 1926, the two companies merged. The new company was known as Winston & Newell Company. It was the largest grocery distributor to independent grocers in the Midwest. In 1954, it took the name Super Valu Stores. In 1958, the company bought the grocery store chain, Piggly-Wiggly which was based in Wisconsin. In 1971, the company took a different direction when purchasing a retail store chain called ShopKo. In 1980, the company continued to expand by buying out two other grocery store chains called Cub Stores and Atlanta’s Food Giant. Also during that year, Supervalu combined the Cub Stores and ShoKo into one company. In 1991, the company bought out an Indiana grocery store chain called Scott’s. Later that same year, Supervalu sold 54% of Key 2 the ShopKo company to the public. It wasn’t until 1992 that the company changed its name to Supervalu Inc. In that same year, Supervalu bought a food wholesaler called...
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...Target Competitors Target’s main competitors in the Twin Cities are Wal-Mart, Cub Foods, and Rainbow Foods. They all account for a substantial percentage of market share in the grocery market in the Minneapolis-St. Paul metropolitan area (is it really only in MPLS/SP – or is it in a more general area??). Because of the steep competition amongst their competitors, they are always trying to drive price competition. And they seek to increase customer loyalty and enhance value proposition by offering low prices and the best possible quality. Wal-Mart, one of Target’s biggest competitors, offers everyday low prices which imply that customers do not have to wait for promotional pricing to have the best deal possible. Wal-Mart’s mission statement and business model is, saving people money so they can have a better life. In addition, they offer a wide variety of products to help their customers save time and money which also helps to reinforce their business model. However, since Wal-Mart offers products across many sectors such as; clothing, food, or stationary, it may not have the flexibility of some of its more focused competitors. Wal-Mart is a powerful brand serving more than 200 million customers and members each week, and they are the world’s largest retailer with more than 8,400 stores around the world. Wal-Mart owns a 33% market share of the U.S. grocery market and 9.5% in the twin cities. Wal-Mart’s Groceries account for more than 50% of their sales. They are a destination...
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...Supermarkets in 1968 and then purchased by SuperValu in 1980. Cub’s was one of the first total discount food stores in the United States. “CUB shoppers enjoy low prices on a variety of top-quality name-brand products and the freshest produce, meats, seafood and baked goods available. For total convenience, most CUB stores are open 24 hours a day and offer more than 35,000 items, full-service pharmacies and in-store banking.” (Supervalu.com, 2012) Cub’s is one of the many superstores in the United States that has directly affected the way consumers shop for groceries and household goods. Low prices, smart marketing, and sheer size encourage shoppers to spend far more money than they do in the average supermarket. (Peter & Olson, 2010) 1. List at least five marketing tactics Cub Foods employs in its stores to increase the probability of purchases. Cub stores stock double the selection of conventional stores, mixing staples with luxury, ethnic, and hard-to-find foods. The arrangement of the products within the store allows for consumers to give into impulse buying before they choose their essential items and reach their budget limit. The entry alley, also known as the power alley is lined two stories high and features discounted specials. The store’s ceiling joists and girders are exposed, giving the subliminal feeling of all the spaciousness up above. Paul Suneson, director of marketing research for Cub’s parent company, SuperValu, says the design of the inside of the building...
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...five “success habits” o Store centric decision making Empowering store directors • Giving store directors decision-making powers to be able to truly become “America’s Neighborhood Grocer.” Giving store directors decision making power allowed them to personalize the store to fit needs of the local community o Encouraged Collaboration Favorable access to distribution network • YAMMER o Creating a culture of sharing through the online database o Yammer allowed stores to communicate with each other, helping each other rather than keeping it’s competitive advantage secrets to themselves o Not mandated by corporate so the users who used Yammer truly wanted to use it. Weaknesses - Price strategy o SUPERVALU struggles to address the competitive pressures of the growing presence of low-cost...
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...Differentiating Between Market Structures Anne Giorno ECO/365 Principles of Microeconomics February 16, 2015 Jong Yi Differentiating Between Market Structures The competitive balance between firms is unique in every industry. Some industries are dominated by a single company, while others have thousands of small businesses competing for market share. The composition of competitive firms is known as the market structure. The grocery industry is an example of monopolistic competition. This type of market structure can have a positive and a negative impact on the structures competitive strategies. Monopolistic Competition Monopolistic competition occurs when there are many different firms competing for market share over similar products. There are generally low barriers to entry, which means it is easy for a small company to become a competitor in the market. All of the companies in this system sell similar products and must make a string effort towards product differentiation. Products and services are considered to have a high elasticity of demand; meaning a consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic competition market should find it easy to find a similar alternative in their local area (Corcelli 2006). This differs from monopolies and oligopolies. A monopoly market is only one single seller. An oligopoly market is dominated by a small number of larger companies selling slightly different...
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...Identify issues The main issue in this case is whether or not B.C. Packers should enter into the canned cat food market. If the analysis shows that B.C. Packers should go ahead with this proposition then it must also be determined which segment of the market that they should target. Analysis Market analysis must be performed on the individual markets before any financial analysis can be performed. This is in order to provide adequate information to estimate the various market shares. The first segment to analyze is the Gourmet brand. The Gourmet segment holds the smallest share of the market in grocery stores but it has a significant share of the market in specialty stores. It is seen as having high quality as a result of its higher price and its consumers tend to have higher incomes (see case). The Gourmet market even though it is not the largest has good potential as a result of it higher margins. The National brand segment has the largest share of the market across all retail types, is price sensitive but does have some brand loyalty, and it also has the most competition (see case). Although the most competitive the National market holds a great deal of potential as a result of its overall market share. The Price brand segment does not have a significant share of the market, it is highly price sensitive and has little brand loyalty, it is comprised mainly of no-name and store brands (see case). As a result of it being made up mainly of store brands store...
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...Globalisation of the food retail industry – forecasts to 2013 2008 edition Page i Globalisation of the food retail industry – forecasts to 2013 2008 edition By Helen Lewis June 2008 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: Fax: Web: +44 (0)1527 573 600 +44 (0)1527 577 423 www.just-food.com Registered in England no: 4307068 © 2008 All content copyright Aroq Ltd. All rights reserved. Page ii Single-user licence edition This report is provided for individual use only. If you would like to share this report with your colleagues, please order additional copies or sign up for a multi-user licence by contacting: Kathryn Wedgbury Research manager, just-food.com Tel: +44 (0)1527 573 604 Email: kathryn.wedgbury@just-food.com Copyright statement © 2008 All content copyright Aroq Limited. All rights reserved. This publication, or any part of it, may not be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Aroq Limited. This report is the product of extensive research work. It is protected by copyright under the Copyright, Designs and Patents Act 1988. The authors of Aroq Limited’s research reports are drawn from a wide range of professional and academic disciplines. The facts within this report are believed to be correct at the time of publication...
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...Marketing Plan Executive Summary Mark Anthony’s is an interactive grocery delivery service that will shop and deliver groceries to its members at their homes. Members are able to place an order by phone or website. A representative from Mark Anthony’s will then go out and buy your current grocery list from a surrounding neighborhood store. Currently there is little to no competition in San Antonio for grocery delivery service. This is surprising since San Antonio has a large market that would benefit from this service. Elderly Residents, business professionals, families, and college students would benefit from a grocery delivery service. These customers would benefit from this service which is tailored to their needs and deliver right to their doorstep with just a click of the mouse or phonecall. Elderly residents may have trouble reaching stores in the area due to inclement weather or lack of mobility. These residents would benefit from a delivery service which is tailored to their needs. Time is valuable and no one is more understanding of that than busy professionals, families, and college students. Mark Anthony’s will save time and allow these members to devote their time to other activities that they enjoy. Company Description Mark Saldana is the CEO of Mark Anthony’s Home Delivery Grocery Service, a locally owned and operated business driven by the desire to assist those in our community who suffer as a result of mobility, transportation difficulties, or lack...
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...Sarrica's Market is a new business located in downtown Moab, Utah. The store is an upscale international grocery and delicatessen with a distinct menu that includes authentic, hard to find ingredients from around the country and the world. The facility will include a sixteen person capacity eating area, deli/kitchen with counter and check out area, grocery/gift area, and a public restroom. The mission of Sarrica's Market is to provide Moab, Utah's residents and visitors with a combination of quality, authentic, hard to find, grocery items and prepared foods, with good service and a pleasant atmosphere with the warm feel of an Old-World outdoor market. Our store motto is, "eat and enjoy." The deli will serve sandwiches, salads, specialty drinks, and picnic lunches. Gift items will complement the international theme of the store and include a limited selection of kitchen wares, cookbooks, picnic items, and original hand-sewn items and jewelry. Gift baskets will also be available in the store and over the internet. All the recipes used in the deli will highlight the grocery items sold in the market. The gourmet and specialty foods market is booming across the country. Consumers are looking for quality food coupled with a quality shopping experience. Many large cities have have entire sections dedicated to ethnic foods and culture. As rural America moves away from agriculture and natural resources, and towards tourism as its main economy source, more and more people are...
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...A visit to the market I accompanied my mother to the central market to buy some groceries that she needed for the coming New Year. When we arrived at the market we could not find a place to park the car. So we waited patiently for about ten minutes before someone vacated a parking space and we moved in. Coming to the market just before a festive season was not a pleasant experience. The whole town seemed to be there. Everyone had things to buy. So the prices of things shot up. Worst of all, we had to struggle to get these things. So we made our way carefully through the various sections buying vegetables, meat, fish, noodles, spices and other food stuffs. We had wanted to buy some prawns too but they were all sold out, despite their sky-high price. The bags got heavier and heavier. The crowd got thicker and thicker. The noise and heat was overwhelming. As we had nearly done all the shopping, I told my mother that I would wait for her at the car. I could not stand being among hundreds of aggressive shoppers anymore. I lugged the bags wearily to the car and breathed a sigh of relief when I reached it. The air smelled sweet and cool. I was glad to be outside. Fifteen minutes later my mother emerged from the market. She looked exhausted. We put the groceries in the boot, got into the car and drove off with the air-conditioner at full blast. sky-high describes a price or charge that is very high overwhelming so strong as to be irresistible ...
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...Brief Company Background FreshDirect is an online grocery store, founded in 1999 by Joseph Fedele and Jason Ackerman, that offers shopping and delivery services to around 300 zip codes. FreshDirect is known for its convenience, fresh food, and comparatively lower prices. They prepare custom grocery and meal orders for its customers by using Just In Time manufacturing. Their goal is to differentiate themselves from their competitors by providing high quality products with great flavor. Mission Statement for the Company The current mission statement for the company is, “FreshDirect prides itself on sourcing the highest quality food and freshest ingredients available. We believe nutritious, delicious meals and convenient service allow customers more time to live healthy lives.” SWOT Analysis Strengths 1. FreshDirect is an online grocery store that offers the convenience and advantage of shopping at your home. Goods are delivered in refrigerated trucks so that they remain fresh. 2. They offer a wide range of fresh food at low prices delivered to your front door. 3. They offer custom made groceries for the customers called Just In Time manufacturing 4. They provide an efficient and cost effective service. 5. They also offer additional attractive services to their customers like farm fresh quality food, discounts on bulk purchase, chef made entrees, easy family meals, and freshly baked food. ...
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