4 Financial Assessment of Health III. The Alternatives ……………………………………………………………………... 5 Exhibit 1 …………………………………………………………………………………. 6 Exhibit 2 ……………………………………………………………………………….… 7 I. Introduction Krispy Kreme is a major competitor in the restaurant industry, known primarily for its donuts. Around 2004 when the economy began to slow, Krispy Kreme encountered some problems related to their business.
COMPANY NAME/WEBSITE/INDUSTRY FreshDirect, www.freshdirect.com, online grocer BACKGROUND/HISTORY Jason Ackerman and Joseph Fedele cofounded FreshDirect in 2001, not long after other online grocers had failed. Less than three years later, its iconic refrigerated trucks could be seen all over the Manhattan streets. “Ackerman and Fedele split up the responsibilities based on their expertise. In that Bloomberg interview, Ackerman said, ‘Joe, having worked at -- and built -- Fairway was responsible for bringing in all of the supply. And I focused on how to actually take all the supply and get it within the warehouse and actually get it to the customer, which was no small feat’” (Goldberg, 2010).
C&C Grocery Case C&C Grocery is a grocery store with over 100 locations struggling to improve business within its current stores. The company suffered losses in 1991 and did not see improvement after the overall economy improved in 1993 and 1994. To address this C&C Grocery has reached out to Thunderbunnies Consulting Group, a student consulting group at Western Washington University, to help pin-point problem areas to be addressed by store executives. The Thunderbunnies group identified four areas that require attention. The first area concerns the chains inability to adapt to change.
My grandfather did everything manually and by memory. He kept track of the café’s inventory, payroll, and marketing coupons on a notepad. According to (Baltzan & Phillips, 2009, p. 21) in order for an organization “to survive or thrive, it must create a competitive advantage. A competitive advantage is a product or service that an organization’s customers place a greater value on than similar offerings from a competitor.” The café business has declined steadily over the past five years because of businesses such as Starbucks moving a block away. I will do major renovations to bring the café up to the new millennium.
9-505-031 REV: DECEMBER 5, 2005 JOHN DEIGHTON Nectar: Making Loyalty Pay Persuading British households to do anything was not easy, yet, in the 18 months leading up to March 2004, Loyalty Management UK (LMUK) had induced over 54% of them to try collecting Nectar points and 40% to persist, making Nectar Britain’s largest rewards program. Each week it added 50,000 new members (whom Nectar called collectors). Rob Gierkink, CEO of LMUK, was pleased with his team’s accomplishment. In March 2004 Justin King had just taken over as group chief executive at Sainsbury’s, the supermarket chain that was Nectar’s largest issuer of points. He saw that more than half of Sainsbury’s 240 million pound (₤) annual marketing budget went to Nectar and said: “Nectar represents a significant investment for Sainsbury’s, and I can’t help but feel that if we put the investment into more staff in our stores we’d see a better return.
Palmisano stepped down as CEO 31st December 2011, ending a near-decade-long reign. Looking back ten years Palmisano made several key strategic moves that have paid off greatly for IBM. In 2002 IBM bought Pricewaterhouse Coopers Consulting for $3.5 billion, and created a new global business unit called Business Consulting Services by combining IBM business services and PwCC. As a result, IBM Business Consulting Services becomes the world's largest consulting services organization, with operations in more than 160 countries [7]. In 2003 IBM sold its hard disk drive business to Hitachi.
Slashing prices as they have over the many years lures in consumers to bring in more sales. Wal-Mart’s rapid growth strategy is aggressive as well. In 2003, 425 stores were added. Then, consumers demanded Super Centers so Wal-Mart supplied 4,000 globally. This leader began its massive international expansion of stores from “2,181 in 2006 to 2,757 in 2007 and 3,121 in 2008.
He found a perfect space to rent on “Main Street”. Unfortunately, he did not have enough money to buy the necessary ingredients, he convinced a local grocer to supply him (Kazanjian, Joyner & Clark 2003). In the early sixties, Vernon starts to expand the Krispy Kreme brand around Winston-Salem through franchises. After the death of Vernon in 1973, the “Beatrice Foods Company” bought Krispy Kreme few years later. In spite of a bad strategy, the brand was in a bad way.
Jill Harms was the Assistant Category Manager for the Nuts, Natural Snacks and Cookies Category at Sathers, Inc. Snacks to Go was the snack nuts product line introduced in early 1995, which saw high sales in the beginning, but began slowing down. If the line did not improve in performance soon, Harms was pressured to drop the line completely. Background History John Sathers first started selling cookies in bulk to area grocers in 1936 in Round Lake, Minnesota. As time passed, Sathers added other products, and his son, Kenneth, joined the business ten years later. Kenneth implemented the philosophy of value by selling packages of cookies and other products such as almond bark, four packages for $1.00, to grocers in a five-county area.
Fortunately for McDonalds, they are a big enough corporate themselves which enabled them to make this deal with Boston Market, whereas the other indirect competitors (local sub shops, Chinese restaurants, etc.) were not in a financial position to do so. So far, McDonalds has done a great job with the company and Boston Market stores are still functional and selling rotisserie chicken today. Backing up a little bit, in 1997 when the stock price had plunged more than 50% in three months, the company needed to make some serious changes. Stockholders were displeased because the financials and reported profits were misleading and losses were recorded on the books of the franchises “area developers” and not in the corporation’s statements.