...Assessment ONE. Individual Case Study Report (40%) MKT 3130 Coursework Aldi and Lidl: International Expansion of Two German Grocery Discounters Source: Ghauri, P. & Cateora, P. 2010, page 566-571 With a worldwide annual sales volume of €3.7 trillion in 2007 and an average annual sales growth of 2.7 percent during the past ten years, the grocery retailing industry can be considered as one of the world’s key economic sectors. Over the past decades, grocery discounters such as Aldi and Lidl have strengthened their position in the grocery retailing industry – especially in Germany and Europe. With their no-frills approach, they have led to significant changes in the industry and have challenged many companies which operate other store formats,’ such as supermarkets or hypermarkets. In this context, a Financial Times report on international retailing noted in 1995: ‘The spread of the discount format has been particularly disruptive to Europe’s grocery retail industry and has driven retailers to examine cross-border markets’. The Grocery Discount Format The key terms describing a grocery discounter are ‘minimalism’ and ‘efficiency’, which are integrated into all business areas. In fact, grocery discounters’ ambitions are to sell quality products at the lowest price possible. To realise profits in spite of the low prices, grocery discounters reduce their costs to a minimum and attempt to generate high volumes of sales through a limited product range of fastmoving items...
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...Lidl Stiftung & Co. is a German global discount supermarket chain, based in Neckarsulm, Baden-Württemberg, Germany, that operates over 10,000 stores across Europe. It belongs to the holding company Schwarz Gruppe, which also owns the store chains Handelshof and hypermarket Kaufland. Lidl is the chief competitor of the similar German discount chain Aldi. This advert about Lidl happens in a small pub. The guests will have 3 meals. That will be a hors d’oeuvre a main course and a dessert. The main point of this advert is that the costumers don’t get a receipt after they have eaten their dinner. But instead the customers have to pay what they think the food and drinks were worth. Because the food they get served is so good they expect it must be quite expensive and so pay a lot of more money than actually worth. When they get their change back a lot of people look up weird and are a bit confused about the huge amount of change they get back. The positive points about this advert are that they put Lidl in such a good position. The people who see this advert on TV or on another network device look at the advert and see that the people get an amazing dinner served for such a cheap price. For example the lamb for £10.30 which is a portion for four people! I couldn’t really think of any negative examples about the advert except for the reason that they didn’t show the reaction when the costumers got told that all their food was buyable in lidl I think this advert is one of the...
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...Description of organization Jewel’s Rescue mission is a Non-profit, Non-denominational Christian organization meeting the needs of less fortunate in the county of Merced through emergency short and long-term rehabilitation services. The program will also serve as a rescue mission for some displaced pets. Jewel’s Rescue Mission was established because of the love and compassion of one woman. As long as I can remember, Jeweline (Jewel) P. Mays opened her home and heart to people and pets of all lifestyles. Her love for Christ kept her humble and prosperous. She rarely missed a day of cooking a hearty meal. Every meal cooked was large enough to feed a small army. There was seldom a day that a stranger was not at our table. Jewel would always save the scraps for animals. All who knew her knew Jewel throughout the community as,”Mom”. In 2006, Jewel was diagnosed with a rare illness. Physicians informed us the illness would end her life within three years. That news never discouraged her, and her faith in God never waivered. Although her wind capacity was getting shorter as they day went on, she continued going to church until she was no longer able to endure the air outdoors. With all of this going on her life, she kept feeding the hungry and helping those who needed help mentally, spiritually, sometimes physically and financially for the better part of those three years. Towards the end of her life, she was still concerned about a few she had not been able to help in the past...
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...Corporate managers and shareholders can sometimes find themselves in a conflict of interest. The goal of being a good manager is being able to spot these potential conflicts and to remedy the situation before a serious problem arises. The biggest conflict between managers and shareholders is going to be money. Here is the most common scenario. A corporation is profitable. In fact, the corporation is more profitable than expected. Therefore, the corporation has a cash surplus, if you will. Managers would want this money as a financial bonus and the shareholders would want this money as a stock dividend. What to do? What to do? Mangers will argue that without their leadership and managerial ability, the corporation would not have been as profitable. The shareholders will argue that without their money, the corporation would not have been able to invest in its growth, and therefore, would not have reached that level of prosperity. Who should get the money? Another situation arises when the managers are also shareholders. This may lead a particular manager to push the opposite way of his/her position. For example, if a shareholder manager would get more money from a stock dividend than from a bonus, this shareholder manager might vote in favor of a stock dividend, not because he/she believes that stockholders should be rewarded for their investment, but because it will mean more money for that particular manager. What if only that one manger is a stock holder? Before...
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...Principles of Health Care Instructor: Dr. Rhonda C. Hatfield 2/25/2013 Bay Medical Center Bay Medical Center is a 403-bed regional referral center, serving a seven- county area in the central panhandle of Florida. The hospital’s CFO and CEO recognized that the Those services include application services, data center services, 24X7X365 help desk services, desktop and network services, and telecommunications that are affected and need to be outsourced. This change will lead to a significant financial turnaround for the hospital (PR Newswire). Because they serve such a large part of the country and are counted as one of the leading hospitals, they must maintain the interest of all stakeholders involved. To do this it would require the CEO and CFO to make major changes that will affect everyone. The admitting staff that inputs patients coming in to the facility, the emergency room staff that depends on the computers to bring up and put in data regarding a patient, the nursing staff and doctors who depend on the information on each patient, the billing department that sends out information to the patients. Also affected would be the community that may be calling in to reach loved ones. This must all be down as quickly and efficiently as possible as the entire facility would depend on the information put out by this system. We recognized three years ago that moving to the 'next level' would require a significant upgrade in...
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...Assignment 1 Assignment 1: “The American Red Cross (ARC) Shonnette P. Ferebee Dr.Jack Huddleston HRM 522 Ethics and Advocacy for HR Professionals July 22, 2012 2 Determine the impact of this event on ARC’s benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line. Ferrell, Fraedrich and Ferrell (2011) stated that the ARC is an independent organization, supported by the public donations and volunteerism (p.327). ARC mission is offer relief to people of catastrophes and help them prepare for and answer to emergencies. Ferrell, Fraedrich and Ferrell (2011) mentioned that The ARC has had to report allegations of fraud, bribery, and even theft on the part of volunteers and employees working for the organization (pg.327). This had a bad impact on the employee commitment and investor loyalty standpoint. It lead to ARC having to deal with a number of inside trials due to high turnovers, as well as charges of over payment and possible dishonesty among its board of directors and upper management. We know that dishonesty is having a lack of truthfulness, which has a great impact on ARC benefits of business ethics. Clara Barton founded the ARC in 1881 and was enthused by the work of the International Red Cross while on a trip to Europe during the Franco-Prussian War of 1870-1871(p.327). The ARC is one of the many organizations chartered by the U.S government, receiving its first federal charter in 1900(p.327). The ARC employee...
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...important for us to create a variety of values by means of accommodating the increasing demands of customers, which demonstrates the social responsibility of Air China as an internationally recognized airline. * To meet customers’ demands is the priority and fundamental mission of Air China. Customer service is the most important product that we provide. Satisfying the customer comes before the shareholders, the company and the employees. * To create mutual value demonstrates the idea of value sharing and benefit sharing of Air China as a public company and a modern enterprise. Mutual value means the value that should be shared by shareholders, enterprises, employees, customers and the society as a whole. * Air China is a stakeholder for shareholders, enterprises, employees, customers and the society. The majority shareholder of Air China is the government, and other investors make up the remaining shareholders. Air China will make unremitting efforts to ensure an attractive return to shareholders, give momentum to Air China, have a sustainable and healthy development, assure satisfactory salaries, benefits and welfare to employees, offer excellent services to customers and bring positive benefits and returns to the society. * Employees are Air China’s most valuable resources and they are treasured by the company. While adhering to the people-oriented management philosophy, Air China will assume the primary responsibility of caring for the life, work and growth...
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... Goal The purpose for this service request is to plan a new HRIS for Riordan Manufacturing. Mainly the beginning phase is to gather and understand the requirements for the new system; this will not only impact HR but Finance systems as well. Riordan’s HRIS is currently outdated and without a central database or networked compartments. Each record change must be submitted in writing (on specified forms) and manually entered into the system. Project Requirements To grasp the service being requested and the necessary requirements the following stakeholders will be questioned; Finance and Accounting, Training and Development, Recruiters, Managers, Employee Relations, and Dr. Riordan. Suggestions shall be gathered and discussed in the following manner/s: Focus Groups; collective interviews between individuals for both questions and solutions Workshops; ability to interact with many stakeholders Surveys; anonymous stakeholder suggestions Documentation review; preview of company documents to further refine requirements Feasibility According to...
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...Global perspectives on governance: lessons from east and west While the core principles of governance are the same throughout the world, the Asian model places particular emphasis on trust and relationships. This paper discusses the key differences between the western and Asian approaches to help business leaders explore the best aspects of both. Conclusions 1. The corporate governance model that’s familiar in Asia, Africa and most developing nations places strong emphasis on trust and relationships. This can be beneficial for stakeholders: the typical pattern of ownership in businesses means that there can be a longer-term view of an organisation’s success compared with that in a western company. But the system is potentially vulnerable to corruption and cronyism. It can also be difficult to implement basic control procedures. 2. The prestige of what can be broadly termed the western governance model has diminished in the aftermath of the financial crisis. This model has driven globalisation and has emphasised a combination of legislation and standards as well as transparency, with a focus on developing appropriate structures, processes and frameworks. This is widely understood and helps to create a level playing field. But major financial failures over the past two years, such as that of Lehman Brothers, have shown that there are limits to what can be done to tighten checks and balances. A new emphasis on the behavioural aspects of governance is overdue. ...
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...profit, I do not believe that it necessarily follows that the primary accountability is to the shareholders and owners. I would like to present the following argument that suggests real success can be achieved by working with and caring for communities and stakeholders. If we were to believe that companies would only succeed by looking after their shareholders we would surely limit the opportunities for any firm to have any community purpose and would remove any of the benefits that can be achieved by working with other key stakeholders. Firms can benefit greatly from interaction with wider stakeholders and can reap benefits when they care about their communities because these communities can be seen to work together with firms to support mutual success. In outlining my views I will refer to three theories, namely stakeholder theory, legitimacy theory and agency theory and make a case for how an interaction of these theories will support my views that business succeeds when it cares about its community. Stakeholder Theory, (Financial Times Lexicon, 2011), ‘Stakeholder theory suggests that the purpose of a business is to create as much value as possible for stakeholders. In order to succeed and be sustainable over time, executives must keep the interests of customers, suppliers, employees, communities and shareholders aligned and going in the same direction. Innovation to keep these interests aligned is more...
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...and success. The mutual fund manager also needs to identify the external and internal stakeholders and how Best Buy meets the wants and needs of the stakeholders. SWOT The strengths of Best Buy include high brand recognition, affordable prices, special offers, convenient locations, and a strong online presence. Best Buy is large enough to afford marketing so that it can use prime time television and radio spots to reach its potential customers. The weaknesses of Best Buy range from impersonal customer service to costs of maintaining huge warehouses and stores. This year already Best Buy lost 1.7 billion. Recently Best Buy announced it is closing 50 of its stores and is planning to open smaller stores and work on a stronger online presence. This will help them avoid what happened to Circuit City and also help compete with Amazon (USA Today, 2012). Potential opportunities are new gadgets and electronics with the latest digital cameras, cell phones, video games, and new television models becoming more popular. If Best Buy can stay ahead of the market and offer the latest gadgets at competitive prices they can have an advantage and boost profits. Threats include the environment with many competitors that undercut Best Buy prices and an economic recession that limits the money customers have available for electronic purchases. Stakeholders Internal and external stakeholders of Best Buy include...
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...Is Wal-Mart's stated vision aligned with the needs of their stakeholders? Melissa Stacy MGT 499 MOD 1 Wal-Mart, the world largest and most successful corporation, also has the unflattering reputation of being so uncaring that it now symbolizes corporate social irresponsibility in the eyes of many Americans. Wal-Mart's problems with its own employees are not just perceptual but fundamentally due to the company's targeting and positioning choice: the delivery of always low prices to customers has meant that such stakeholder groups as employees have had to be squeezed. How did a company heralded as a hero as recently as in 2000 become a corporate monster only a few years later? The company's current predicament was not only foreseeable, but a logical consequence of its strategic choices, through its unbalanced approach to stakeholder commitment. Wal-Mart views its shareholders, consumers, and the community as their most important group of stakeholders, while employees are its second most important one. Wal-Mart has recently begun focusing on providing an explanation related for the company's poor performance with its self-declared second most important stakeholder group: its employees. Wal-Mart is being sued for what some workers say is widespread bad practice in forcing workers to do extra work "off the clock"- unpaid. Wal-Mart's policies forbid the practice, but managers under intense pressure to cut costs have allegedly resorted to it in order...
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...Midterm CHAPTER 1 • Value creation takes place at 3 stages, input, conversion, and output. Each stage is affected by the environment in which the organization operates. - Organizational environment is the set of forces and conditions that operate beyond an organization's boundaries but affect its ability to acquire and use resources to create value. - Inputs include resources such as raw materials, machinery, information and knowledge, HR, and money and capital. They way the organization chooses and obtains from its environment the inputs it needs to produce goods and service determines how much value the organization creates at the input stage. E.g.) choose certain products and people to work for company. - Conversion stage: organization uses human resources and technology to transform inputs into outputs. It depends how much value is created in this stage. The amount of value the organization creates is a function of the quality of its skills, including its ability to learn from and respond to the environment. E.g.) How to best sell and market products. - Outputs come after conversion stage. Outputs include finished goods and services that the organization releases to its environment, where they are purchased and used by customers to satisfy their needs. After all these steps are accomplished, the cycle starts all over again after the money is earned from the sale of its output. • Competitive advantage is the ability of me company to outperform...
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...Governance and Ethical Responsibility Research Paper This analysis paper will explain if Dr. DoRight of Universal Human Care Hospital can manage when he discovers that patients inside the hospital are dying as a results of a extent of illegal practices by doctors, nurses and careless supervision of oversight on their be half. Also question the rights of staff to health and safety within the work place and address the duty of loyalty, and conflicts of interest between internal and external stakeholders. Additionally discuss the moral duties to report illegal actions, along side the deontology and utilitarianism principles. The Universal Human Care Hospital has to decide a way to handle things at the hospital. 1. Determine at least three (3) different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital. The Universal Human Care Hospital has different internal and external stakeholders. Selected of these insider stakeholders are the nurse group committee, department managers, and Regional Director Compliance Manager. The nurse group committee is common nurses in command of promoting the health and safety of patients in their care. Department managers are concerned with the performance of different departments, which are under their control. They have to look after the activities and generate reports for Dr. DoRight and the like seniors so that the performance of the departments could be checked. Regional Director...
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...extremely important, especially in a highly competitive market such as supermarket retailing. Competing on price helps to retain customers, but so does non-price competition, such as having a good image in the community. This case study looks at how ASDA has developed a vision that includes community involvement. Mission statements ASDA makes clear statements of its mission, purpose and values to help stakeholders see the direction the business is taking. The mission statement sets out its long term aims and is 'To be Britain's best value retailer exceeding customer needs always.' Its purpose is stated as 'To make goods and services more affordable for everyone'. Its values show what the company believes in including respect for the individual, excellence and customer service. New colleagues receive a detailed induction into all three elements. Stakeholders ASDA has both internal stakeholders, within the business and external stakeholders. Examples of internal stakeholders are managers and colleagues. Examples of external stakeholders are customers and shareholders. Stakeholders may want different things: • Customers want low priced, good quality products. They also want to see that ASDA is involved positively in their community. • Colleagues are motivated by being able to help the community. • Shareholders want a good return on their investment but they also believe in community involvement, as it makes good business sense. • Suppliers may be local businesses...
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