...Publix Supermarkets – The American Dream History: Publix Supermarkets is a company that only within the last 80 years has become what it is today. George W. Jenkins, the late founder of Publix Super Markets, was born on Sept. 29, 1907. He grew up in Harris, GA, where he worked in his father's general store until 1925 when he headed to Tampa FL drawn by the prospect of getting into the real estate industry. Instead, he began working at Piggly Wiggly grocery, after being with the company for just a few months he was already managing the store. He was then transferred within the company to manage their largest store in Winter Haven. After 4 years he decided to resign so he could open his own store, following in his father’s footsteps. This was the beginning of something great. On Sept. 6, 1930, George opened his first store, which he called Publix Food Store located in Winter Haven, Florida. Five years later, he opened a second store in the same town. Realizing he needed to truly follow his dreams he decided to close these two stores to open the store people called his “dream store”, the first Publix Super Market, on Nov. 8, 1940. “A food palace of marble, glass and stucco, this store included innovations such as air conditioning, fluorescent lighting, electric eye doors and terrazzo floors” (Publix.com). In 1945, he was able to purchase a warehouse and 19 All American stores from the Lakeland Grocery Company. He began replacing these small stores with his larger supermarkets...
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... Executive Summary This strategic analysis of The Kroger Company will take a look at the changing trends of grocery retailers, profitability and strategic position. Included is a PESTEL analysis and Porter’s Five Forces model for a closer look at Kroger and the industry. Competition is a big threat and since Rodney McMullen became CEO of The Kroger Company in January 2014 the company has rapidly gained market share and is currently second only to Wal-Mart (United States Department of Agriculture, 2014). With recent strategic acquisitions Kroger is better positioned to sustain their level of growth. There are several problem areas that Kroger will need to stay on top of and plan for how to combat those areas. We will provide a couple recommendations on the strategic direction that will most benefit and sustain competitive advantage for The Kroger Company. Introduction The Kroger Company was established in 1883 by a man named Barney Kroger who opened the first store in Cincinnati, Ohio. Since the opening of that store, Kroger has been an innovative leader in the grocery industry. With annual sales exceeding $108 billion it is one of the world’s largest retailers. Kroger can boast the following firsts: ● 1st to establish bakeries ● 1st to sell meat and groceries under one roof ● 1st grocery chain to routinely monitor product quality and scientifically test foods ● 1st to test an electronic scanner ● 1st grocer to formalize consumer research Kroger also manufactures food...
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...giant “has little competition, substantial sales, and excellent margins” (Kerin & Peterson, 2010). The customers of A.1. are loyal and the market share of over 50% shows this. The problem facing A.1. is that Lawry’s has decided to launch a new steak sauce during the Memorial Day Weekend which is one of the holidays for the steak sauce industry due to the increase in grilling activities that take place. Lawry’s is owned by Unilever and is known for its seasonings and marinades. Lawry’s will launch its new steak sauce which has similar characteristics to the A.l. steak sauce, in both taste and appearance, and charge less per bottle as well as try to take over A.1.’s Memorial Day sales by offering a two-for$5 promotion through the supermarket Publix. This creates a problem for A.1. because the holiday weekend earns approximately 10% of its annual revenue. The question that Kraft Foods faces is how should the company react to the launch of Lawry’s steak sauce? Problem Identification The problem for Kraft Foods is figuring out how to react to the launch of the new Lawry’s steak sauce. The company has focused both time and resources on a marinade line for A.1, spending $10 million on advertising and $5 million on consumer promotion spending. “The marinade line was projected to lose about $7 million in operating profit in 2003, though this was an improvement from a $10 million loss in 2002. The total brand’s 2003 budget called for profit on the A.1. portfolio to increase 10 percent...
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...acquire other corporation) in a company’s capital structure. Impact of changing debt on valuation • Increase in debt increases value through increase in interest tax yield ➢ Interest Tax shield gain is partially offset by increase in cost of equity ➢ There are complex processes involved in mergers and acquisition .It is difficult to compare betas measured against different indices due to differences in composition of index. ➢ Changing financial leverage affects the systematic risk that shareholder’s face. ➢ Risks when the acquirer and the Acquirer-Target merging entities are in two different countries For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. (Facebook acquiring WhatsApp) There are many reasons that a company consider before doing any merging or acquisition activity. Hence it can be safely considered that Facebook too has considered the factors related to the same. First of all, the number of users of...
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...industry. They have established brand superiority over the last 100 years and have faced little competition over that time. Their senior brand manager, Chuck Smith, is faced with the task of determining how to handle an aggressive attempt by Lawry’s, a leading brand in the marinades and seasonings market, to enter the steak sauce market. Smith and his associates must decide how to defend against the aggressive advertising and marketing campaign of Lawry’s new steak sauce which is looking to launch on April 1st (Kerin and Peterson, 2010). Problem Identification The problem that A.1. faces is that Lawry’s two-for-five dollar price promotion of their new steak sauce is expected to run in the Memorial Day ad for national grocery store chain Publix. Even though A.1. is by far the most distinguished and recognizable brand in the steak sauce market, this is especially concerning to A.1. because they typically run key price promotions on Memorial Day week. Their promotion typically consisted of an ad in the store flyer, an in-store display, and a discounted price of $4.49 for their standard 10 ounce bottle (down from the usual $4.99 retail price). Most stores would only recognize one brand per specific category for promotional weeks, so with Lawry’s promotion being priced so favorably for consumers, A.1. must decide if their brand loyalty is strong enough to survive Lawry’s promotion or if they should defend aggressively against Lawry’s (Kerin and Peterson, 2010). Identifying the...
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...ASSIGNMENT 4: MERGER, ACQUISITION, AND INTERNATIONAL STRATEGIES BY TANYA BROWN STRAYER UNIVERSITY PROFESSOR KRISTINA BARNES BUSINESS ADMIN CAPSTONE March 3, 2014 For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. Since the 1900, Kellogg Company has always been passionately committed to serve people all over the world nutritional cereal brands to help meet their dietary needs. The company's major main aspect is the manufacturing and marketing of on-the-go cereal and conveninence foods that include crackers, toaster pastries, cookies, cereal bars, fruity gummy snacks, and frozen waffles and vegetables. They are known for their diversified product lines under the brand names such as Famous Amos, Rice Krispsies, Corn Pops, Pop-tarts, Fruit Loops, Eggo, Frosted Flakes and much more. Their products are manufactured throughtout 17 countries and then marketed in more than 180 countries. The Kellogg Company bought over Priangles for an estimated amount of $2.7 billion from Procter and Gamble. Kellogg had announced that their agreement for acuiring Procter and Gamble's Pringles food label for $2.7 billion US dollars like sale of brand towards Diamond Foods was terminated because of ongoing accounting scandals as well as the change...
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...Memo To: CEO of Toy Company From: Elementary Division Manger CC: Executive Team Date: 10/17/2014 The purpose of this memo is to address three key focus points of this defective product: Shipment, main event money solutions while taking customer satisfaction into account and weighing benefits versus risk of each scenario. Decision Process After careful assessment of choices for Main event solutions, a decision making model would be the best approach. Systematically examining each of the five steps involved in this process. To be affective and accurate each step must be careful assessed for its pros and cons, and how it will overall influence the company. Step 1: Propose the problem as a question: Is this issue urgent, and if so how important is it to the overall benefit of the company? Step 2: Gather all relevant data, closely examine causative and effective options. Step 3: Weigh pros against cons of each option. Step 4: Chose and implement best choice. Step 5: Finally, present decisions in a comprehensive format, outlining outcomes to all relevant parties involved in the decision making process. First Alternative I chose to use a decision-making model to conclude and affirm my decision regarding the defective whistle. First choice, although less favorable but maintains the best interest of the company would be to hold the order and cancel shipments. Advantages of this choice are as follows: conservation of public image as well as prevention of any inhumane...
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...Andrew Wash GBA 490-321 Written Case 1 February 12, 2014 Table of Contents Issue #1 ……………………………………………………………………………… 2 Issue #2 ……………………………………………………………………………… 3 Issue #3 ……………………………………………………………………………… 4 Recommendation ……………………………………………………………………. 5 Dominant Economic Characteristics ………………………………………………... 7 PESTEL Analysis …………………………………………………………………… 8 Five Forces Analysis ……………………………………………………………….. 10 Drivers of Change in the Industry …………………………………………………... 12 Current Strategy …………………………………………………………………….. 13 Competitor Analysis ………………………………………………………………... 15 SWOT Analysis …………………………………………………………………….. 17 Financial Analysis ………………………………………………………………….. 19 Issue #1 Trader Joe’s first problem is that information is occasionally leaked regarding the identity of their private label suppliers. Trader Joe’s thrives off keeping the identity of their suppliers a secret to all consumers and media in order to maintain the integrity of their products. Since 80 percent of the products sold at Trader Joe’s are private label, the identity of the supplier is not known because the product is sold under the Trader Joe’s brand name. Information leaks regarding Trader Joe’s suppliers could damage their brand image because it could cause Trader Joe’s to lose its charm to consumers and because it could make other companies wary of supplying their goods. First, information leaks could cause Trader Joe’s to lose its charm in the eyes of the consumer. There were news reports spread within...
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...A1 Steak Sauce: Lawry’s Defense Case Recap A1 is a premier steak sauce produced by Kraft Foods. On April 1st, Unilever will launch their own steak sauce under their brand name Lawry’s. As marketing tool, Lawry’s has requested for the upcoming Memorial Day Weekend, that Publix Grocery Stores promote their new product. The managers of A1 know that it is common practice for the other grocery chains to price match and begin to set their own competitive prices for Lawry’s Steak Sauce. It is the job of A1’s marketing team to come up with new marketing and advertising strategies in order to counteract the new competor’s product. Problem Identification The problems before A1 begin with the huge financial support (Kevin & Peterson, 2010) of their new rival. The second problem at hand is the competitors lower priced product that looks virtually the same as A1’s product. A third problem which concerns the marketing team pertains to the lack of growth in the steak sauce market and the failing efforts to expand the market. Problem number four that faces A1 is the grooling task of matching the competitor’s pricing while maintaining their own market share. Identifying the Root Problem Components With 46% of the steak sauce market, A1 is its major player. A1’s profit growth of 10% is being compromised by Lawry’s new product and the added expense of advertising. Another component of A1’s root problem involves, not only the price of the competitor’s product ($1.00 less per...
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...1 Differentiating Between Market Structures Kimberly Adcock ECO/365 December 7, 2015 J. Carl Bowman Differentiating Between Market Structures 2 The Kroger Company has started in 1883, by the founder Barney Kroger, he had taken all of his life savings to open the first Kroger grocery store in Cincinnati, Ohio. “Over the next 130 years as the supermarket business evolved into a variety of formats aimed at satisfying the ever-changing needs of the shoppers” (thekrogercompany.com). There are more than 2,600 stores within 34 states and more than a dozen banners and their annual sales is in the billions. Kroger is one of the biggest grocery stores in the world. There are two departments that Kroger supermarkets, the bakeries and meat and seafood. History of Kroger “In the 1900s grocery stores bought their bread from an independent individual, but Barney Kroger has, come up with the idea to put the all of the main ingredients together to be able to make a profit” (thekrogerco.com). He decided that if he was to bake his own bread he would be able to decrease the price...
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...Running head: A1 STEAK SAUCE (LAWRY'S DEFENSE) - CASE ANALYSIS A1 Steak Sauce (Lawry's Defense) - Case Analysis Selwyn Paul Davenport University Marketing Strategies MKTG610 Dr. Paula Zobisch Aug 09, 2011 A1 Steak Sauce (Lawry's Defense) - Case Analysis Case Recap A.1. Steak Sauce was founded in England in 1830 by King George's Chef, Henderson William Brand and introduced to North America in the early 1900s. The Sauce became a premier brand of Kraft Foods Inc. who acquired it from Nabisco in 2002. (Kerin & Peterson, 2011, 630). A.1. Steak Sauce had done well in sales, and was able to secure excellent margins for Kraft Foods Inc. with a market share of approximately 50% and a brand awareness that was second to none (Kerin & Peterson, 631). However due to a decrease in beef consumption in United States, Kraft Foods Inc. witnessed a drop in sales which led to subsequent stagnation as sales of the Steak Sauce flattened out. And despite an increase in dollar sales due to higher prices for the sauce, the unit and volume sales of the sauce continued on a flattened trajectory. A.1. Also faced stiff competition from Lawry an organization renowned for its spices and seasonings, who announced the launch of a new steak sauce. Lawry’s strategy was to market their new steak sauce at a reduced price but very similar to A.1., with the goal of making Lawry the better choice for customers. As a result of this new competition from Lawry’s, Kraft Foods and A.1., was faced...
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...Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jonelle Newman Professor: Dr. Norris Date: March 29, 2014 Whole Foods Market Case Study Analysis Introduction Whole Foods Market began with a vision from entrepreneur John Mackey and his chain of stores has been successful for 30 years. Whole Foods Market focuses on natural and organic food items. One of the reasons why Whole Foods has been so successful is because their stores are different than its competition and the differentiation “allows them to charge a premium price for premium products.” (Pearce & Robinson, 2013, p. 29-1). Whole Foods focuses on natural and organic foods which is a definite plus as more people become focused on wellness and eating healthier. This leading supermarket chain does not waiver on its core values and mission and their mission statement which has also become their motto is simple: “Whole Foods, Whole People, Whole Planet.” (Farfan, 2014). Synopsis of the Situation Whole Foods has grown drastically over the years. The growth of the supermarket chain has been credited to store openings, acquisitions, and mergers. It is necessary to note that although the company’s total sales continue to increase; the operating margin and stocks have declined. (Pearce & Robinson, 2013). Key Issues There are key issues that have been attributed to the decline of the company. The recession caused...
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...Burt’s Bees: Leaving the Hive 1. A. Market: Natural - organic personal care; develop, manufacture and distribute; targeting LOHAS (NMI, 2007) consumers, around the world. B. The market is the industry where the organization competes, and it needs to be specifically defined. In general, the requirements for an appropriate market definition include: a) should be narrowly defined; b) should include at least 90% of the company’s sales and c) a “real” market as defined by customers and competitors (Kulzick, 2007). Market definitions to be complete should include four different factors: 1. Company’s product or service ( Natural – organic personal care products that include: (Lip balm, oral care, hair care, body care, face cleansing and care and outdoor – sun care). 2. Customer ( Someone who pays the money for the service and/or product. According to the Natural Marketing Institute (2007), the Natural-Organic Personal Care Products Market targets consumers classified as LOHAS consumers. LOHAS is the acronym for Lifestyles Of Health And Sustainability. This refers to an integrated consumer group, which has a meaningful sense of environmental and social responsibility and incorporates those values into purchasing decisions. LOHAS is a critical target for companies marketing natural and organic personal care products because these consumers opinions are very influential and help push healthy environmentally- friendly products into the mainstream...
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...years ago. The alarming answer is that Walmart’s traditional everyday low price (“EDLP”) positioning is less competitive in the very economic environment in which it seemed designed to prosper. Consumers are more stressed than ever, but now instead of blindly accepting that Walmart has the lowest prices …always… these struggling digitally enabled cybershoppers are surfing the net comparing Walmart’s prices with their competitors. And there are LOTS of competitors, ultra low priced Dollar Stores and hi-lo food retailers, category killers such as Best Buy and Home Depot. Let me give one simple personal example. Yesterday my wife came home from Publix with two huge boxes of Cheerios, which she bought on special for $5. On its best day, Walmart could not match this price or that of dozens of promo items at numerous retailers including Publix, not exactly recognized as the low price leader in Florida. When the issue is item price and consumers are armed with a price comparison capability, the balance of power tilts away from the EDLP retailer. To its credit Walmart’s management has long foreseen the weakness of EDLP as a consumer positioning. They have clung to it because Mr. Sam himself mandated it and it worked for...
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...with the current company strategy, as well as its outputs. In this case study we will use the strategy we previously discussed in Module 1 and using the Porter’s three generic competitive strategies to analyzed organizational categories input to the strategy using the congruence model. The model should be able to help us determine how aligned the inputs are with the strategy. The model will give us three categories for inputs: the environment, resources and historical inputs and three categories for outputs: organizational level, group level and individual level to help us determine the congruence of the outputs. While conducting the Congruence Model we will use the inputs and outputs categories to determine the organizational level congruence of the Whole Food Markets; using all these various aspects the model will give us a good vision of the current organizational structure and performance of the company. Lastly we will analyzed all three level of organizational inputs and outputs and determine how each of these categories interact with each other to determine their similarity to was the Whole Foods Market business strategy. 2- Whole Foods Markets Inc. Strategy The Whole Foods market’s business strategy is based on their reputation and differentiation from other firms in the Grocery industry. The company has establishes multiple quality strategies to ensure customers have an experience while shopping in their grocery stores. The company core strategy over the years has been...
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