文档内容
Foodland
COMPANY OVERVIEW
Foodland is a Canadian chain of grocery stores founded in 1985. Its stores
are located mostly in the provinces of New Brunswick, Newfoundland and
Labrador, Nova Scotia, Prince Edward Island and Ontario. The stores range
in size from 4,000 to 27,000 square feet (372 to 2,508 square meters).
Foodland stores are viewed as neighborhood supermarkets that focus on a
no-frills customer convenience and offering a wide selection of conventional
supermarket products such as produce, meats, dairy products, frozen food,
dry goods, baked goods and deli products. 院
A. Industry Landscape: 学
•New Competitors offering cheaper products.
•The overall supermarket industry in Canada is growing steadily. Other
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competitors are not experiencing similar problems.
•There are a few new players who offer unbeatable low-end offers that have
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been gaining market share.
•The second largest player has 23% market share.
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B.Customers
•Client’s target customers are mid-to‐upper middle income market.
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•Some of the customers might be price sensitive and hence prefer the
cheaper products and switch to the cheaper competition.
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C.Pricbe
Our client sells better products and could keep doing so to retain and
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sharpen the focus on upper‐middle class customers.
•Price elasticity = -0.5 (for 10% increase in price demand of product units
decreases by 5%).
•COGS (cost of goods sold) = 60% of revenue
Foodland has been the industry leader for more than 20 years and currently
has 25% market share. 5 years ago they experienced growth stall, followed
by revenue and profit decline in the last 2 years.
Drop in profitability percentage has been even higher than the drop in
revenue. Your firm has been retained to investigate the problem. What is
happening and how can you help them turn around the situation?
Your company has been asked to conduct a strategic review of ‘Foodland’.
You have been given some background information to read and are due to meetwith your team in 15 minutes to discuss any notable issues and prepare a
summary of your recommendations to present to Project Director (represented
by the team of assessors).
YOUR TASK
There are four components to this task with the following timings:
1) Individual preparation: 20 minutes to read the background information
provided and prepare for the discussion
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2) Group discussion: 40 minutes to meet with your group to discuss the
information and prepare a presentation
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3) Group presentation: 15 minutes to present a summary of your
recommendations Your presentation should include the following:
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⚫ Summary of the current situation
⚫ Key issues
⚫ Recommendations and actio会n plan for improving business performance
4) Q&A: 15 minutes to respond to questions from the team of assessors
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Note:
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The preparation time is short, so use it wisely
Every member of the team should be involved in the presentation and the
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question and answer session. You can divide it up as you wish. You are NOT
required to produce visual aids such as slides or flipchart paper as part of your
presentatiobn.
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