Business Analysis, Part I
Amanda Simpson
MGT/521
February 25, 2012
Linda Teza Kulka
University of Phoenix
Workshop # 4

Business Analysis, Part I
Publix Supermarket, Inc. is a Fortune 500 company that has shown a great amount of growth since first opening in 1930. George Jenkins opened the first Publix Supermarket in 1930 in Winter Haven, Florida. Shortly after 1945, the company purchased the All American grocery store chain. After purchasing the store chain, Jenkins moved the headquarters for Publix to Lakeland, Florida. Over the next 30 years Publix added pharmacies and bakeries in their stores. in the 1990s, Publix Supermarket ventured outside of Florida to open their first store in George. In 1996, George Jenkins passed away and left the company to be run by his family. Publix now operates stores in Florida, Georgia, Tennessee, Alabama, and South Carolina. According to Publix Supermarket, Inc. (2012), “Publix is known for its philosophy of pleasing the customer; the Publix guarantee to never knowingly disappoint our customers is legendary in the industry” (para. 2). Throughout this paper we will explain the Publix Supermarket company background, discuss a SWOT analysis of Publix Supermarket, and identify and explain the needs and wants of Publix’s internal and external stakeholders.
Publix Supermarket Company Background
Publix, opened for business for the past 82 years, has achieved the expectations of George W. Jenkins. According to Publix Supermarket, Inc. (2012), “Publix, operating stores in Florida, Georgia, South Carolina, Alabama and Tennessee, was founded by George W. Jenkins in 1930 in Winter Haven, Florida. It has grown into a Fortune 500 company with more than 1,000 stores and is one of the fastest growing employee-owned companies in the United States” (para. 1). Starting as a result of losing his job at Piggly Wiggly, Jenkins opened up a grocery store with hopes of making Publix a household name. Today Publix is only located in the Southern states of the United States; however, Publix impresses by making a large profit despite being only in Southern United States. Today Publix has 151,000 plus employees throughout their 1,049 grocery stores, and in 2010 retail sales were $25.1 billion dollars (Publix Supermarket, Inc., 2012). Publix is an employee owned company and throughout the course of the company employees have always had the ability to invest in the company through their Employee Stock Ownership Plan (ESOP). Today, Publix’s ESOP price is $20.20 per share ("Publix Stock Prices", 2012).
SWOT Analysis
Publix’s strengths include Publix Supermarket has a little over 1,000 stores spread through Florida, Georgia, Alabama, South Carolina, and Tennessee. The supermarket has more than 100 stores to open this year alone, this shows the ability for the supermarkets growth potential. According to Datamonitor USA (2012), “Publix’s strong regional presence puts it in an advantageous position to its competitor” (para. 5). The products and services Publix offers their customers, suits the needs and wants for all types of customers. According to Datamonitor USA (2012), “The company’s extensive offering enables its shoppers to select from a wide assortment of products and services” (para. 6). On September 24, 2011, Publix Supermarket reported a net profit of $311,902,000,000 dollars (Publix Supermarket Form 10-Q, 2011). According to Datamonitor USA (2012), “Strong returns reflect the company’s ability to deploy assets in profitable avenues and enhances the investors’, in Publix’ case the employees, confidence” (para. 7).
Some weaknesses for Publix Supermarket include lack of online presence, and product recalls. Publix Supermarket has a website, Publix.com, which offers customers a chance to look at articles, Apron’s Meals, ordering food for parties, etc. Although Publix has a website, they do not offer customers the chance to order groceries and have them deliver. According to Datamonitor USA (2012), “A lack of online presence deprives the company of a sales channel which is growing in importance” (para. 7). Like many companies, Publix faces product recalls. Product recalls cost the company money and can hurt the company’s reputation (even if for a moment in time). Publix has their own private label, and in 2007 Publix recalled a large amount of their dry and wet pet food. According to Datamonitor USA (2012), “Product recalls of such kind, may have a negative impact on the company’s reputation resulting in a decrease in customer traffic and erosion of consumer confidence” (para. 8).
Publix has many opportunities to advance as a company. One opportunity for the company is the growing demand for private label products. Publix Supermarket has their own private label brand, Publix, which makes a great amount of profit for the store. According to Datamonitor USA (2012), “Private brands now account for one out of every five items sold in the US retail stores, drug chains and mass merchandisers. Approximately 41% of the US shoppers currently but private labels as compared with 36% five years ago” (para. 9). Consumers are purchasing more private brand labels since the downfall of the economy. The new thing now is eating organic. There have been controversies surrounding whether or not eating organic is actually healthier for you. Companies that jump on this band wagon of organic products are smart since there is a large growth in demand. According to Datamonitor USA (2012), “Natural and organic food prodcuts are one of the fastest growing categories in food retailing. Consumers across the US are showing increased preference for natural, fat-free and healthy food products” (para. 10). Publix has over 100 stores that are set to open this year. There is always an opportunity for the growth of new stores to open. According to Datamonitor USA (2012), “The addition of new stores would improve customer traffic which will translate into additional revenues for the company” (para. 11).
Some threats that affect the Publix Supermarket company are the soaring raw material prices, increasing labor costs, and intense competition. The rise of cost of food hurts grocery store profits. According to Datamonitor USA (2012), “Though Publix is primarily a retailer, the company does use raw materials to produce its own private label products. Therefore, increasing raw materials would negatively impact the cost structure of the company’s private label’s business” (para. 12). Although Publix, like other companys, is cutting the hours for many employees they are still facing increasing labor costs. With employee overtime, and government mandated minimum wage standards companies feel the costs and sometimes it can hurt a company. However, Publix has seemed to sustain the economy downfall and kept their employees instead of laying them off. Competition is a high threat to Publix. Publix has to keep on their tippy toes to stay ahead of their competition. According to Datamonitor USA (2012), “Increasing competition from global and domestic players threatens to erode Publix’s market share” (para. 13).
Stakeholders
Publix’s internal stakeholders are those who are directly involved in the company. The internal stakeholders for Publix Supermarket include corporate employees (CEO, CFO, etc.), store employees, warehouse employees, and board members. Publix Supermarket values their employees so much that the company is employee owned and they only offer shares of stock to employees. Publix knows what their employee’s wants and needs are and make every effort to ensuring their needs and wants are met. Publix sends out employee surveys throughout the year to every employee; this is so that Publix can continuously meet the needs and wants of their employees. Some of the needs and wants being met by Publix include flexible schedules, competitive pay, advancement opportunities, cross-departmental training, Health Insurance and Dental coverage, annual bonuses, ESOP, and tuition assistance for college students. According to Publix Supermarket, Inc. (2012), “Publix is one of the top companies in FORTUNE's list of "100 Best Companies to Work For" (1998-2012)” (para. 1). Publix’s external stakeholders are those who are indirectly involved and get affected by the company’s actions and decisions. The external stakeholders for Publix Supermarket include customers, suppliers, banks, environment, communities, competitors, and local schools. Publix is a customer focused company. According to Publix Supermarket, Inc. (2012), “Publix scored higher than any other supermarket for customer satisfaction in a national survey conducted by the American Customer Satisfaction Index (1995-2012)” (para. 2). Publix is so focused on their customers that they added it in their mission statement and live up to their mission statement. Publix ensures that products are fresh, available, and diverse. Publix ensures customers are satisfied when shopping in their stores by maintaining their stores daily to ensure cleanliness, offer exceptional customer service to each customer, offers customers choices at checkout (plastic, paper, or recycled bags), and baggage help with unloading groceries into customers vehicles. Publix also gives the customers a chance to try products and if not completely satisfied they will take back the product with or without a receipt. The suppliers Publix uses are very important to their success. Not only does Publix use suppliers such as Proctor and Gamble (P&G), Pepsi-Co, Coca-Cola, Frito Lay, Anheuser-Bush, Kimberly Clarke, and more; they also have their own company brand Publix. Publix ensures that the suppliers get paid competitively, make sure the displays are kept up according to supplier’s wishes, and promote products at registers, isle displays, and in circular paper. Publix banks through Bank of America. Meeting the needs and wants of the bank, Publix ensures that all money deposits are ready to be picked up by Brinks and is counted and documented correctly. Publix has made their transition to helping the environment with the use of Green-Wise products, installing generators in stores to help conserve energy for communities, adopted a “Green Routine”, installed energy switches throughout their stores to cut down on energy, have sensors on freezer doors, have recycling center in each store for plastic, bags, cardboard, and styrofoam. According to Publix Supermarkets, Inc. (2012), "George Jenkins founded Publix with the spirit of giving in mind. He was once asked, "If you hadn't given away so much, how much do you think you would be worth today?" His response, without hesitation: "Probably nothing”” (para. 1). Publix participates in community events to help improve the community in which it serves. The programs that Publix is currently active include Special Olympics, March of Dimes, Children’s Miracle Network, United Way, and Food for All. According to Publix Supermarkets, Inc. (2012), “As a responsible corporate citizen, Publix recognizes the importance of supporting charitable activities within the community. As part of the Publix mission, we focus our efforts on the following areas: youth, education - specifically literacy, and the plight of the homeless and hungry” (para. 1). Publix employees help with fundraisers and volunteer at various events to help the Special Olympics. According to Publix Supermarkets, Inc. (2012), “Publix customers and associates have been involved with Special Olympics for almost 40 years supporting of its mission to ensure athletes are able to participate in Olympic training and games at no cost (Special Olympics). To help with March of Dimes Publix raises money in their stores each year and then finishes with their annual March for Babies. According to Publix Supermarkets, Inc. (2012), “Publix and March of Dimes team up for healthier babies during an annual campaign (usually in April). Events, activities and the sales of baby cut-outs add up to lots of fun for customers and associates, and a substantial donation to March of Dimes” (March of Dimes). Publix raises money in their stores to help with Children’s Miracle Network. Through their employee’s hard work and dedication Publix raises money to help the Children’s Miracle Network. According to Publix Supermarkets, Inc. (2012), “Since 1983, Children’s Miracle Network Hospitals has raised more than $4 billion, most of it $1 at a time. These donations have gone to support research and training, purchase equipment, and pay for uncompensated care, all in support of our mission to save and improve the lives of as many children as possible” (Children’s Miracle Network). Publix employees pay into a plan to help with United Way. Through payroll deductions once a year, employees donate money to help the United Way cause. According to Publix Supermarkets, Inc. (2012), “Each year (usually in September), Publix associates contribute to United Way, largely through payroll donations. In 2010, Publix raised $23.3 million for United Way. When matched with the $17.4 million from Publix Super Markets Charities, the total contribution was over $40.7 million” (United Way). The Food for All program is a program that Publix does during the holidays to help those in the community facing hunger issues. This program is another one of the programs Publix offers to both employees and customers and is done in each store. According to Publix Supermarkets, Inc. (2012), “Throughout Publix's campaign, customers and associates can contribute to the fund by purchasing contribution cards in $1, $3 or $5 amounts. In 2011, Publix customers and associates donated more than $3.1 million to the effort” (Food for All). Publix Sueprmarket donates time and products to local schools in their areas. They give back to the schools throughout the school year.

References
Publix Supermarket Form 10-Q. (2011). Retrieved from http://sec.gov/Archives/edgar/data/81061/000119312511294244/d226008d10q.htm
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket Form 10-Q, 2011). 2. The Publix Supermarket Form 10-Q (2011) website Insert the paraphrased material. 3. According to Publix Supermarket Form 10-Q (2011), "Insert the quotation” (Condensed Consolidated Statements of Earnings).

Garry, M. (2009). Sustainable Culture. Retrieved from http://supermarketnews.com/sustainability/sustainable-culture.htm
In-Text Citation 1. Insert the paraphrased material (Garry, 2009). 2. The Garry (2009) website Insert the paraphrased material. 3. Garry (2009), "Insert the quotation” (para. 1).

Note: Do not use a reference page entry for personal communication because it contains information from a source that the reader cannot access.
In-Text Citation 1. R. Henning (personal communication, February 26, 2012) Insert the paraphrased material. 2. Insert the paraphrased material (R. Henning, personal communication, February 26, 2012). 3. “Insert the quotation” (personal communication, February 26, 2012).

Publix Supermarket, Inc. (2012). What we're doing. Retrieved from http://sustainability.publix.com/what_we_are_doing/what_we_are_doing.php
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket, Inc., 2012). 2. The Publix Supermarket, Inc. (2012) website Insert the paraphrased material. 3. According to Publix Supermarket, Inc. (2012), "Insert the quotation” (para. 1).

Publix Stock Prices. (2012). Retrieved from http://www.publixstockholder.com/managed_documents/2011/stf7177798048021110475.htm
In-Text Citation 1. Insert the paraphrased material ("Publix Stock Prices", 2012). 2. The "Publix Stock Prices" (2012) website Insert the paraphrased material. 3. According to "Publix Stock Prices" (2012), "Insert the quotation” (Publix Stock Prices).

Datamonitor USA. (2012). Publix Supermarket Company Profile. Retrieved from http://www.datamonitor.com/store/Product/publix_super_markets_inc?productid=7A9B8521-E588-41F2-815A-B495C97A242B
In-Text Citation 1. Insert the paraphrased material (Datamonitor USA, 2012). 2. The Datamonitor USA (2012) website Insert the paraphrased material. 3. According to Datamonitor USA (2012), "Insert the quotation” (para. 1).

Marketing Mixx. (2012). Publix SWOT Analysis. Retrieved from http://marketingmixx.com/marketing-basics/swot-analysis-marketing-basics/178-publix-swot-analysis.html
In-Text Citation 1. Insert the paraphrased material (Marketing Mixx, 2012). 2. The Marketing Mixx (2012) website Insert the paraphrased material. 3. According to Marketing Mixx (2012), "Insert the quotation” (para. 1).

WSVN-TV. (2012). Man files lawsuit against local supermarket; allegedly strip searched. Retrieved from http://www1.wsvn.com/news/articles/local/MI128407
In-Text Citation 1. Insert the paraphrased material (WSVN-TV, 2012). 2. The WSVN-TV (2012) website Insert the paraphrased material. 3. According to WSVN-TV (2012), "Insert the quotation” (para. 1).

St. Petersburg Times. (2012). Tampa Publix accused of bias. Retrieved from http://www.sptimes.com/2002/12/06/Business/Tampa_Publix_accused_.shtml
In-Text Citation 1. Insert the paraphrased material (St. Petersburg Times, 2012). 2. The St. Petersburg Times (2012) website Insert the paraphrased material. 3. According to St. Petersburg Times (2012), "Insert the quotation” (para. 1).

Publix Supermarket, Inc.. (2012). Publix History. Retrieved from http://www.publix.com/about/PublixHistory.do
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket, Inc., 2012). 2. The Publix Supermarket, Inc. (2012) website Insert the paraphrased material. 3. According to Publix Supermarket, Inc. (2012), "Insert the quotation” (para. 2).

Publix Supermarket, Inc.. (2012). Facts and Figures. Retrieved from http://www.publix.com/about/FactsAndFigures.do
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket, Inc., 2012). 2. The Publix Supermarket, Inc. (2012) website Insert the paraphrased material. 3. According to Publix Supermarket, Inc. (2012), "Insert the quotation” (About Publix).

Publix Supermarket, Inc.. (2012). Corporate Campaigns. Retrieved from http://www.publix.com/about/company-overview/community-involvement/Corporate-Campaigns.do
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket, Inc., 2012). 2. The Publix Supermarket, Inc. (2012) website Insert the paraphrased material. 3. According to Publix Supermarket, Inc. (2012), "Insert the quotation” (March of Dimes).

Publix Supermarket, Inc.. (2012). Requests for Donations. Retrieved from http://www.publix.com/about/company-overview/community-involvement/Donation-Requests.do
In-Text Citation 1. Insert the paraphrased material (Publix Supermarket, Inc., 2012). 2. The Publix Supermarket, Inc. (2012) website Insert the paraphrased material. 3. According to Publix Supermarket, Inc. (2012), "Insert the quotation” (para. 1).