Publix SWOT
Elton D. Thompson
MGT/521 MANAGEMENT
September 5, 2012
Dr. Carlton Robinson

Publix SWOT
On April 19, 1930 in Winter Haven, Florida; George Jenkins founded a private employee-owned American market. Publix Super Markets, Inc. (Publix) is one of the largest regional supermarket grocery chains in the United States. According to Fortune magazine in 2011 it is one of the top 100 Best Companies to work for ("Fortune", 2012). Earning even more accolades in 2011 Forbes ranked Publix as the No. 6 on the list of as one of the best largest private companies in the United States to work for. The company has a great reputation for providing a great shopping atmosphere, outstanding customer service, and taking care of its employees. This type of dedication to the customer and employees can be seen in the company sales which totaled $27.1 billion in 2011 and profits which were estimated to be $1.5 billion. With these sales figures in place Publix ranks #106 out of 500 of Fortune top American companies. Currently Publix based on 2011 figures Publix is the 14th largest retailer in the United States.
Publix Mission Statement,
Our Mission at Publix is to be the premier quality food retailer in the world.

To that end we commit to be: * Passionately focused on Customer Value, * Intolerant of Waste, * Dedicated to the Dignity, Value and Employment Security of our Associates, * Devoted to the highest standards of stewardship for our Stockholders, and * Involved as Responsible Citizens in our Communities ("Publix", 2012).
If I was mutual fund manager and I was presented with an opportunity investing into a Publix, I would make sure that a through and adequate analysis would be conducted. The type of analysis I make sure that got conducted would focus on the strengths, weakness, the opportunities, and threats against. I would make sure that I focus on not only the external analysis, but internal as well. Publix main stakeholders are the surrounding environment, the employees, and the customer.
Strengths
Publix has certain strengths that relate to environment, employees and the customer. Publix likes to build in a location that is at the start of growing. With a growing community Publix becomes the brand that is seen by the new home owner or renter. If there is no other market in the area the customer will not like to outside the community to buy groceries. As the population grows so does the revenue streams. With the employee stocked ownership program (ESOP) employees are motivated to work harder than those of their competition. Publix also pays a higher hourly rate and their benefits packages far exceed any of the regional supermarkets’ employees. Since 1994, Publix has scored the highest marks for customer service satisfaction with products and services. Awarded one of the top companies in Fortune’s list of “100 Best Companies to Work For,” Publix ranked higher than any other supermarket. Publix makes sure it’s employees are well trained with its products for the customers. The isles are never cluttered and the shelves are super clean. With the customer first with this motto Publix guarantees, “We will never knowingly disappoint you. If for any reason your purchase does not give you complete satisfaction, the full purchase price will be cheerfully refunded immediately upon request.” Publix considers making its decisions effectively, not just benefiting the shareholders but all the stakeholders ("Publix", 2012).

Weakness The prices in Publix are slightly higher than their competition because of the salaries paid, attention to customer service, and over all store appearance. With this in mind customers may not be willing to pay these higher prices. They may want to go outside of their neighborhood to buy goods. This will impact revenue streams as customer take business elsewhere. If the people do buy the real estate at the rate that was originally thought, that could have a direct effect on revenue. Even though Publix has an outstanding benefit and salary package for its employees, they also have strict policies for them as well. With most of the hourly employees in high school, they must be dedicated to follow the rules and regulations Publix has set forth for them. Two examples of these regulations are a specific dress and grooming code. Failure to follow this will result in termination. With most teenagers not want to follow certain standards these policies could result in low morale and low employee work output. Publix also has no variety in store designs. The format is the same no matter where you go. This can give the market no identity. Publix operates on a very large scale and has a lot of stores running throughout America, it is very cumbersome to maintain proper accounts, or make any manual entries. Also, it becomes difficult to trace out frauds and management costs are the heaviest expenses
Opportunities
If at the time there is no other store in the area Publix has the opportunity to saturate that market with its store brand. In doing this will yield higher profit margins. By being the market of choice management will be able to take shopper data and find out what is right or wrong with the store so that they will have feedback for corporate. With this feedback in place management will be able to address customer concerns while maintaining the Publix mission statement. With Publix growing and with communities getting more diverse Publix could integrate more ethnic products. Publix is a widely known and appreciated name. If it could work on its brand name, recognition and promotion then the image of Publix will grow much stronger. Being known as a leader in the supermarket industry Publix has to maintain that reputation at all times. To do so requires lots of training to every associate in safety, teamwork, customer service, cleanliness, accounting principles, merchandising, waste and disposal. With this effort and emphasis on high quality training, Publix expects a high rate of return on this. If an employee meets all of his/her job requirements and exhibits quality leadership they can be selected for the Manager Trainee Program. I this program the trainee is exposed to the complete Publix environment. They learn everything from cash handling, meat market operation, deli department, shipping and receiving. The purpose is to make the employee a long time employee who will require less training than someone new to the company.
Threats
The number one threat will always be the competitors. These include the ever expanding Wal Mart and its associated brand, Winn Dixie, Costco, and many other wholesale clubs. With the economy sitting at a low spot Publix tries not to increase prices even though transportation cost has gone up. Even companies like Wal Mart brand has reached a national and global medium, Publix has for the most part concentrated on the Southeast region of the United States. With this the Publix brand is not known nationwide. Unlike its competitors Publix has not gone to internet sales. More companies are transitioning to internet sales to bolster revenue. Since Publix is growing too fast, it might lose its uniqueness and become an ordinary store established at any other corner of the city. It should have a proper location management and standardization to maintain its strong position.
Conclusion
As a mutual fund manager, I would invest in the building a new Publix. The strengths and opportunities outweigh the weaknesses and threats. If the Publix will be placed in a new thriving location the customer base will be available. Even though prices will be higher customers will save on gas and not drive outside the neighborhood and spend even more money. The overall customer experience alone will be enough to bring in a constant revenue stream. The employee will be able to well trained in all elements of Publix and will be rewarded with benefits and salary. This is a smart investment for the community, employees, and the customer.

References

Forbes. (2012). Retrieved from http://www.forbes.com/sites/andreamurphy/2011/11/21/americas-largest-private- companies-retail/.

Fortune. (2012). Retrieved from http://money.cnn.com/magazines/fortune/bestcompanies/2011/full_list/.

Publix. (2012). Retrieved from http://www.publix.com/.