...Failure Analysis/ Change Strategy Danyel Spencer LDR/531 May 12, 2014 Mr. Ricky Owen Failure Analysis/ Change Strategy The organizational behavior basically predicted the failure of the Movie Gallery Corporation. The company begins operation in Dothan, Alabama with one store and quickly grew to five stores within the next few years. The company then embarks in diversifying their business by selling franchise rights. In the new found success the company decided to buy back these franchise stores to continue the growth of the company. The organization behavior identity became one of growth without the market research and development that would have provided them with the information that would have assist them in their continue desire to grow. The company continued to acquire other video chains and opening new stores, when their focus should have been on the changing market environment. The leadership failure to monitor the evolution of the market and poor organizational strategic planning, force the company to encounter financial difficulties. In September of 2007 Movie Gallery had to close five hundred and twenty stores, which they had four thousand and five hundred stores at the time. Within a month of the closing of the five hundred stores the company filed for chapter eleven bankruptcy protections under the United States Bankruptcy Code. (Wikipedia, 2014). Stock prices drop to all time lows which unfortunately lead to the company being liquidated to settle claims...
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...using Terry Porter’s five forces model. The analysis will then narrow the industry into segments and focus on how key players in the segment exhibit distinct advantages. A discussion will follow on how the leading company achieves competitive advantage by means of their distinct competencies and whether they can sustain it over time. The chosen industry for this report is the retail industry, specifically the discount merchandiser segment. The key companies discussed in this paper will be Costco and Wal-Mart, two of the biggest discount merchandisers in the USA. While Costco and Wal-Mart operate under two very separate business models, they carry similar products and compete in similar geographical areas. The life cycle stage of this industry is in the mature stage where the market is now saturated with notable players aside from the two mentioned. Growth in this market is demonstrated by expanding into different geographic and other markets to increase their overall market shares. Under the maturity life stage, minimizing cost and expansion into different segments can develop a competitive advantage over other big box retailer competitors. Currently, Wal-Mart is the industrial and segment leader because of its ability to minimize their expenses and expand quickly in global and online markets. Wal-Mart Wal-Mart is a mass-market retailer operating in three segments: Wal-Mart USA, Wal-Mart International and their online stores. Their different business models including...
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...the big box, and no big boxer is more prominent than WalMart. Big boxers like Wal-Mart not only apply pressure to suppliers and alter the mix of shopping alternatives for consumers, but they also greatly influence the competitive behavior of traditional retailers. The academic and business press has chronicled the wide-ranging effects of the mega-retailer over the past two decades (McCune, 1994; McGee and Peterson, 2000; Stone, 1993). Although there is growing evidence that Wal-Mart's hold on retail may be slipping, it remains a competitive nightmare for many of its competitors, particularly small rivals in local markets (McWiltiams, 2()07a. 2007b). A number of authors (e.g.. McGee and Peterson, 2000; Edid, 2005; Spector, 2005) have suggested or inferred competitive responses for smaller retailers when a big box like Wal-Mart comes to town. This paper builds on such work by providing a more comprehensive and theorybased analysis of strategic alternatives available to retailers specifically facing a threat from WalMart. Toward that end, the remainder of the paper begins with an overview of the big box phenomenon and a framework for understanding how the big box influences the strategic landscape. Three theory-based potential strategic responses are evaluated, followed by conclusions and opportunities for further research. Wal-Mart and the Big Box Phenomenon The emergence of big box retailers in the United States has changed the retailing landscape considerably. The term "big box"...
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...Section I: Situation Analysis Jasco is working to be the leader in plug-in lights by utilizing licensing agreements and partnerships with box stores. Jasco is looking to expand their online presence and distribution capacities to deliver value to the customer. The market that Jasco is in is the home lighting segment but more specifically the various categories of night lights. The motion night lights utilize the use of “enbrighten” which is a term Jasco uses to describe their long-lasting LED light bulb. The bulb is said to never have be replaced and since all of these are motion lights they do not have to be turned on either. To communicate this to the customer they utilize a well-designed website and also put this on the packaging. To help sell the product and to also further communicate value, Jasco has a licensing agreement with GE. The second category of plug-in lights are the Projectables. Projectables are an innovative way to market to kids. They project their favorite Disney, Nickelodeon, Marvel, or DC Comics character on the ceiling for a night light and entertainment utility. Jasco does not advertise so their primary way of reaching their consumer is to package the product nicely. With the licensing agreements with Disney, Nickelodeon, Marvel, and DC Comics, Jasco utilizes that recognition to help sell their products. Jasco utilizes video demonstrations on their website as well as YouTube. In the Jasco building there is a production studio to increase this unique...
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...Retail industry in Canada (P.E.S.T) Analysis There is no doubt that consumer’s play major role in driving the economic engine. Consumers are in today’s market place interacting with different marketplace than they were before. Consumers’ ability to take full advantage of the new marketplace is related to their socio-economic status and time constrain. Organization is open systems, which mean they interact with and respond to their environment. An organization takes inputs and processes those inputs into outputs. These inputs which organization consumes to produce output come from external environment. Due to the fact that organizations interact with this external environment which are out of organization control researchers of this organization always looked for ways to describe and understand those environments and their potential impact on organization performance. These researches can be summarized from two different prospects. 1. The environment as a source of information. 2. The environment as a source of resources. The external environment sectors comprise the specific environment and the general environment. The specific environment includes customers, competitors, suppliers, and other industry competitive variables whereas the general environment includes economics, demographic, socio culture, political legal and technological sectors. The retail marketplace in Canada has been divided into two segments, big box stores move into the retail shopping industry at...
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...industry compared to most of its competitors. Wal-Mart’s Neighborhood Markets has huge effect on industry, Wal-Mart is traditionally known for its Supercenters, big-box stores that cover expansive square footage and offer extensive product selection. The Neighborhood Markets are significantly smaller and are intended to reach the local markets that aren’t always covered by a Wal-Mart big-box store. In many cases, these markets contain the customers that Albertsons has targeted as crucial to its success. Neighborhood Markets are strengthened by the same low prices and powerful supply chain that make the company’s Supercenters a seemingly unstoppable force. With 2,305 retail stores in 31 states, Albertsons is one of the largest retail food and drug chains in the world. Among these retail stores are 1,351 combination food-drug stores, 707 standalone drugstores, and 247 conventional and warehouse stores. Albertsons is working to reduce costs in the supply chain so that its stores can offer prices that are more competitive with Wal-Mart’s prices. It must dramatically close the profit margins if it is to become the number one grocer in the United States. Merchandise currently sells for 20 to 25 percent more on average than Wal-Mart’s product offerings. Wal-Mart’s Retail Link network pulls in point-of sale data from its retail stores every 15 minutes, giving suppliers incredibly up-to-date information on how their products are selling. Other retailers capture sales data only once or twice...
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...Strategic Plan Part 2: Swott Analysis Twila Clayton BUS 475 June 6, 2012 James Sternieri Strategic Plan Part 2: Swot Analysis Internal Analysis Wal-Mart’s culture includes a list of values and beliefs based on their management and employee relations. This culture that’s included are an Open Door Policy where management believes open communication critical to understanding and meeting our associates’ and our customers’ needs. Associates can trust and rely on the open door; it's one of the most important parts of our culture. Sundown Rule is a rule that management attempts to answer request by the close of business. Grass Roots Process is a belief that associates’ ideas, suggestions and concerns matter. The 10-foot Rule is a customer service tactic that greets and engages customers that are within 10 feet distance. Servant Leadership is a policy Wal-Mart uses to listen to their partners and associates in an attempt to create morale and teamwork. Teamwork is a big part of their store culture as Sam Walton believes in the power of teamwork to help grow at the pace of modern life. Wal-Mart Cheer is incorporated by all associates by shouting enthusiastically inside the store to show pride in the company. Lastly, Wal-Mart reads associates’ stories to carry out their beliefs and values as well. Company image Wal-Mart aims to help customers save money to improve their purchasing power to live better. The company’s marketing efforts are to establish awareness that they are the...
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..."The Case for Wal-Mart." www.mises.org. 2003. Opposing Viewpoints in Context. Web. 16 Dec. 2013. Longo, Don. "Wal-Mart Supports Communities." Are Chain Stores Ruining America? Ed. Kirsten Engdahl. Detroit: Greenhaven Press, 2007. At Issue. Rpt. from "Fighting a Bad Rap: Wal-Mart's Positive Contributions to Retailing and Local Communities Are Often Overlooked by Sensation-seeking Press and Special Interests." Retail Merchandiser (2004). Opposing Viewpoints in Context. Web. 16 Dec. 2013. Longworth, Richard. "The Urban Poor Need Supermarkets, Not Urban Agriculture." Urban Agriculture. Ed. Nancy Dziedzic and Lynn Zott. Detroit: Greenhaven Press, 2012. Opposing Viewpoints. Rpt. from "Forget Urban Farms. We Need a Wal-Mart." Good Inc. 2011. Opposing Viewpoints in Context. Web. 16 Dec. 2013. Vedder, Richard, and Wendell Cox. "Wal-Mart's Anti-Union Business Model Is Good for Workers." The Wal-Mart Revolution: How Big-Box Stores Benefit Consumers, Workers, and the Economy. Washington, DC: AEI Press, 2006. 91-99. Rpt. in Labor Unions. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2008. Opposing Viewpoints. Opposing Viewpoints in Context. Web. 16 Dec. 2013. Villarreal, Pamela. "Chain Stores Benefit America." Are Chain Stores Ruining America? Ed. Kirsten Engdahl. Detroit: Greenhaven Press, 2007. At Issue. Rpt. from "Thinking Outside the 'Big...
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...Industry Analysis Case Best Buy’s Turn-Around Strategy GBA 525 September 30, 2014 The consumer electronic industry has experienced a number of ups and downs during the past few years. In the beginning, the consumer electronic industry was taking off because of the emergence of suburban retail stores after WWII. With the decreasing cost in technology, the increase in the demand for consumers electronics particularly televisions came about. During this time, the consumers were usually more price sensitive, and were willing to accept low customer service in exchange for lower prices. This lead to the rapid growth of the discount stores. Because there are not many substitutes for consumer electronics, the sales for these products continue to increase over time. Consumers can decide which retailer that they want to purchase their electronics from. They have the option of purchasing it directly from that particular retailer or even just ordering it online. Because of the high exit barriers, increasing buyer demand, and increasing sales, it is recommended that Best Buy continues to try to change its strategy to be able to gain its past sales trend again in the consumer electronics industry. In the beginning, Best Buy started off strong with increasing sales and profits, but over time this trend started to change. As shown in Exhibit 7, Best Buy is the only competitor within the consumer electronics industry that has experienced a recent trend of decreasing sales. Some of this...
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...Target SWOT Analysis and Porter’s Five December 3, 2011 The purpose of this paper is to discuss Target’s strengths, weaknesses, opportunities and threats. This paper will also talk about how Porter’s Five affects Target’s business decisions. Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com) Strengths: One of Target’s strengths is that it’s one of the largest retail outlets. Target is a one stop shop for its consumers. Target also focuses more on product quality and still tries to offer low prices. Target compares prices on over 25,000 items to make sure that they are offering their customers the best price. Target also accepts manufacturer’s coupons making them even more competitive. Target prides itself for focusing on supplier diversity. Target has developed relationships with minority and women owned vendor and suppliers. Target is focused on becoming the industry leader in supplier diversity. (target.com) Weaknesses: Target unfortunately has no international presence; all of their 1,763 stores are located in the U.S. Target’s focus on quality products more so than low prices is also considered a threat. Consumers may tend to shop at Wal-Mart or Dollar Stores due to the...
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...Best Buy has experienced poor performance in three areas: declining sales, declining net profits, and poor cash flow. Best Buy’s revenue decreased 4.7% during the 2010 fiscal year, and fell 2.4% in 2011. The company lost $1.23 billion, or $3.36 per share in 2011 (Savitz, 2012). “During the fiscal year ended 2011, the company’s cash and short term investments reduced to $1,125 million, as compared to $1,916 million in fiscal 2010” (GlobalData, 2012, p.2). This report will conduct a situation analysis of Best Buy, assess the internal and the external environment, and summarize key issues that can explain Best Buy’s declining sales, disappointing profits, and poor cash flow. Six potential causes of Best Buy’s declining sales are: 1. Ineffective strategy from the management board While e-commerce is booming and Internet sales are flourishing, Best Buy has not developed its Internet retailing operations aggressively, and is falling behind other virtual retailers. From 2006 to 2011, online sales of consumer electronics have seen overall value growth of $9 billion (Euromonitor International, 2012). One of Best Buy’s competitors, Amazon, is a profitable e-commerce business. It has captured many customers with its cheaper options, fast shipment, and convenient way to shop. Euromonitor International (2012) asserts that although Best Buy’s Internet retailing operations have a significant growth rate of 17%, Internet sales account for only 5% of the company's total sales...
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...Urban Outfitters Continuing Case Study Part 4: Marketing a Business Introduction to Business – BUS 100 November 22, 2010 Abstract Urban Outfitters is a continuing case study that describes the basic components of the marketing process (product, promotion, pricing, and distribution). This assignment gives insight into several companies marketing strategies that businesses use to excel in customer service and satisfaction with their product(s) and or services. The study specifically addressed four questions regarding counterculture image, big box stores, exclusivity and the enjoyment of shopping. The study’s hypothesis was that a business must complete an external analysis in order to determine what changes are taking place in their city, county, state, country and around the world that could potentially impact its business? Also, it’s important to find out want and how they make their final purchase decisions. A company must be able to determine their potential, weaknesses, opportunities, and competition. Explain why Sears or Wal-mart cannot effectively create a trendy counterculture image. One reason as to why Sears or Wal-mart cannot effectively create a trendy counterculture image is because it would completely go against the general norm. This image normally targets a specific group of people. Wal-mart’s main focus is to help customers save money, which will hopefully result in them living better. Before opening Wal-mart...
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...Assignment 2 Product, Price & Place Strategy 2150-XXX Include full names and student Ids. March, 2010 Product Strategy Product Concept Core: Convenience that promotes a better future. Actual: A backpack with a built-in, removable, cooler-like lunch box on the bottom. Solar panels on the front that will charge built in batteries that can be used to charge ipods, cell phones, and/or cameras. Compartments for reusable plastic utensils that will be included in initial purchase of the pack. A water-bottle, in its own side-pocket, that utilizes Thermos vacuum technology that will have a removable lid/straw combination, essentially turning the bottle into a “camelback” like apparatus for no-hassle beverage consumption during bike rides and other adventures will also be included. There will be an inner separation that is well-padded on all sides that will be ideal for laptop toting. There will also be an extractable water-proof cover that will pull out from bottom and cover the entire back to protect against unexpected rainfall. All of these features and benefits will be wear the Thermos name that, through its 106 years in business (thermos.com, 2010), represents reliability and sustainability in itself. Augmented: The packs will come in a variety of colours and sizes including a line of children’s packs that will have various kid-popular cartoon images on the front. There will be a 30-day satisfaction guarantee as well as a 1-year limited warranty – the limits...
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...the overall market. Walmart (WMT) has a beta of .3 which will be the lowest of the group. The last stock I will be analyzing for my discussion of beta is SanDisk Corp. (SNDK) with 2.21. What is beta, what does it tell you about the stock? The number supposedly represents risk. There are some drawbacks with the number that I will discuss later on. Beta means how volatile are these stocks and how sensitive they are compared to the market. Do they move with the market, do they move less than the market low volatility ( B<1), or do they move more than the market high volatility (B>1). When talking about the market I will be using the S&P 500 for the United States. The technique that I have used in quantifying Beta is regression analysis. Even though this paper will be discussing beta in application of stocks it can also be applied to portfolios. The market just a convention has a beta of one. When a stock for example apple rises and falls its stock fluctuations are close to the amount of fluctuations of the market. Low beta stocks such as Walmart will decline by .30 of a percent if the market declines by one percent. On the other hand if we had Sandisk with the beta being close to two it will move twice of that of the market. It sounds attractive because of the high return but can also be detrimental because it could go down also twice of the market. It depends on the individual and his or her risk tolerance. Beta has different uses. Some use beta to predict a stocks...
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...Bentonville, Arkansas with 10,773 retail units under 69 banners in 27 countries, Wal-Mart Stores, Inc. is a department store chain of retail goods and services operating in various formats worldwide. The company’s operation is divided in three main segments: Wal-Mart U.S., Wal-Mart International, and Sam's Club. It operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam’s Clubs, neighborhood markets, and other small formats, as well as walmart.com; and samsclub.com. The company’ s retail stores produce, deli, bakery, dairy, frozen foods also offers meat, alcoholic and nonalcoholic beverages, and floral and dry grocery; health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid service, movies, music, video games, and books. Its stores also provide stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, and seasonal merchandise; pharmacy and optical services, and over-the-counter drugs; shoes, jewelry, accessories, and apparel for women, girls, men, boys, and infants; and home furnishings, housewares and small appliances, bedding, home décor, outdoor living, and horticulture products. In addition, the company’s stores offer an exhaustive list of product and services ranging from tangible retail goods to car...
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