It helps in determine the organizational and environmental factors that could affect the decision to be made. The products in the industry are standardized or are undifferentiated. Yet, it is important to note that, the good problem statement does not delineates the solution or the symptoms of the problem, but it clearly states the gap that lies within the organization. Appendix F: Competitor Analysis Competitor Identification, Description & Strategy: Below is a table identifying Trader Joe’s competitor, a description about the competitor and what strategy the competitor implements. Economies of Scale: Large purchases, in bulk at cheap prices, from supplier enable Trader Joe’s to allow everyday low prices. It is significant to consider these factors. The retail stores in the industry are comprised of supermarkets, such as Wal-Mart and Kroger, and premium players such as, Whole Foods at the high end of the market, and “hard-discounters” such as Dollar General and Aldi at the low end. In order to carry out the analysis it is important to understand each element of SWOT i.e. That's what we call value. Appendix H: Financial Analysis Trader Joe’s purchases each brand new item in large amounts. By doing so, Trader Joe’s is able to save money because they are buying new products in bulk. Secrecy is also desired by the suppliers; because the suppliers are providing Trader Joe’s a much lower cost version of their branded product, which might be selling at higher prices at Whole Foods or other retailers. Also it likely reveals about the organization’s expense. It is a situation that arises as a result of the changes that took place in the immediate or distant environment, preventing the organization from maintaining its existence and superiority in the growing competition and are disadvantageous for the organization. internal and external factors. This is important as it allows the organization in meeting the ultimate goals and addressing the problem effectively. Supervalu was faced with this same experience in January of 2013. Customers who ‘follow’ social media accounts can electronically send a message to the account and customers can vent any feelings they have towards the company managing the account. Stability:the ability or an organization to remain in the business for the longerperiod of time without sustaining significant losses while conducting the business operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. Current asset turnover:it measures the current asset level that is require for supporting sales. In fact, the analysis of the environment needs to feed all planning aspects as well as it should be continuous. The suitable benchmark can be found with some problems such as unique attributes problem and averages problem etc. Which areas are in need of immense attention? For instance, lower price, special offer, and money back guarantee etc. In case an organizationis decreasing fixed asset turnover so it means that the production has been running at lower than capacity. With success in the financial realm of their company, Trader Joe’s has been able to have 400 stores nationwide and earn revenues larger than $10 billion in the past year. It is considered as the best model as it does not reveal anything regarding the liquidity of an organization. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data. Whole Foods has experienced an 8. As a result, the tariff can cause companies to leave that market if the cost of the resource, after the tariff is processed, is not profitably suitable for the firm to operate. The effectiveness of the analysis highly depends on the accuracy of the collected data, updates to accommodation changes in timely manner and other tools trimming down the PESTLE limitation to some extent. From the standpoint of owners, the key value drivers may be the growth potential company’s key services and products, key technology capabilities providing the competitive edge, superior process’s cost effectiveness as well as the strategic differentiated positioning. In typical situation, there are three options that are developed in by the organization to deal with the given problem. It is simple yet powerful tool that help the organization in identifying its existing resources, capabilities, deficiencies, the existing opportunities and threats prevailing in the market. Read more Some companies can’t make it out of the gap because switching to the new products would be very costly for their company. The main idea of the problem statement is to answer the 5 w’s that include the answering who, what, where and why, to allow the organization resolve the problem, by stating it in clearly in 2 to 3 lines. These in-imitable factors allows the organization to developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion the long-term. Whole Foods High-end grocery store Organic and natural foods Key Success Factors: 1. Opportunities: Trader Joe’s has an opportunity to use more social media sites. The political factors may involves environment regulations, employment laws, tariffs, tax policy, trade restrictions, political stability and reforms. All in all, the problem statement gives a direction to the organization in understanding the right solution path and also development of the solution sets in order to overcome the current issues that are deteriorating the organizational performance or productivity. Whole Foods has more than 330 stores in the United States, Canada, and the United Kingdom. Moreover, under the particular section, the decision criteria is also developed. The process scan the financial statement to evaluate the relationship the disclosed items. Among the above factors, the reversibility factor carries high importance. Joe Coulombe, the founder of this grocery chain, in 1958 acquired a small chain around the LA area under the name of "Pronto Markets," the idea of Quick and fast markets. All the environmental factors are consider as a threat to an organization that could affect the efficiency and effectiveness of the organization. Appendix B: PESTEL Analysis Political Factors: The supermarket industry is faced with the challenge of tariffs. 2 Grocery shopping is more diversified and evolved than ever before. Issue #2: Secrecy with supplier could be broken. Technological Forces: In the recent increase in technological use by companies, companies in the supermarket industry have been able to offer customers self-checkout and price scanners. The value factor analysis of the organization gives an eye opening view to the management and also offers the solution on where the organization may build the market utilizing the area value creation factors. An upper performance quantile can be the most appropriate performance standard (D’Aveni, 2007), The Trader Joes assessment of the operational efficiency in the initial stage as a whole for business or any of the business sub-division is likely performed through a percentage analysis of income statement. The trends allow companies in the industry to grasp what wants and needs customers are currently evoking through purchasing patterns. Trader Joe’s customers are also very loyal and would not consider trying a different grocery store even if Trader Joe’s was in a price war with other companies competing in the industry. Technology has produced price scanners and self check out lanes. The matric can be adjusted for thepurpose of reflecting the average equity amount being employed during the span of year, giving the more accurate and realisticpicture of how the organizationhas been performing throughout the year. Perhaps, while writ the problem statement, it is important to consider the small factors that are often overlooked such as the intangible factors that effects the productivity of the organization in the long-term. The customer are assumed to have strong buying power in case: Though the model from a strategic point of view is an important tool but there are certain limitation associated with the application of the porter five forces model. Great quality at great prices. Trader Joes Weakness refer to the situation in which the existing capabilities and the resources the company holds are weaker or not sufficient compared to others organizations in the market. From its 2012 Annual Report, Dollar General reported same store sales growth of 4. Trader Joes Financial analysis is the assessment of the stability, viability as well as profitability of a sub-business, business or project. It is most important ratio in companies which are capital intensive. Due to the strategic framing of these statements, Trader Joes has remained at the helm of its performance ever since its foundation in 1958 by Joe Coulombe. The effect of the particular external factors or forces might have extreme consequences for the specific department or divisions, also the analysis better helps companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008). Two Los Angeles police officers will not face criminal charges in the 2018 shootout at a Trader Joe's store that injured the armed suspect the officers were pursuing, and resulted in the death of the store's assistant manager. Trader Joe's is a privately held chain of premium grocery stores with headquarters in Monrovia, California. The reason behind this is that it keeps the media out of transactions made between Trader Joe’s and the supplier. Combining these factors, it last greater and inevitable impact on organization. It is not a close substitute of a first define choice or other alternatives or must provide the solution of the problem in a particular way. Trader Joe's Company operates as a convenience store. Being more engaged in social usage would help Trader Joe’s business and improve their, already stellar, customer satisfaction. It defines the characteristics and situations of an organization which makes it more effective and efficient when compare with its competitors. One of the unavoidable advantage of this model is thatit has begun establishing benchmarks – across companies and over the period of time which can be used for flagging the potential issues areas where more than one ratios are reflecting the key problem or issue. As a result, Supervalu lost half of the company size. 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 … The secrecy strategy has kept customers patiently waiting, wondering what Trader Joe’s will offer next. These are the factors that are easily imitable by the organization (other players) and thus needs to be considered. Trader Joe’s doesn’t have any having official Trader Joe’s social media sites, besides the fans websites made by fans. The level of interest and concentration of buyers toward the product gives them more or less power. 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