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美国管理类留学生课程作业-Strategy Case Analysis: Evergreen Natural Marke

时间:2014-01-28 21:08来源:www.liuxuelw.com 作者:stan 点击:
美国管理类留学生课程作业-Strategy Case Analysis: Evergreen Natural Markets 2012 长荣天然市场已经发展从一个小的时令食材的立场,一个超级成功的公司在过去的几十年。主要的原因是其成功的
美国管理类留学生课程作业-Strategy Case Analysis: Evergreen Natural Markets 2012
 
Introduction

 

In today’s hyper-complex marketing environment, it is becoming more and more difficult for every company to survive in the fierce competition. They confronts the challenge on how to attract more customer and occupy the most shares of the market. The basic principle is to provide the high-quality products and service, and it is also necessary adopt the latest technology in this information age. Merging and acquisition has been a business trend to reinforce competitiveness(Buss.D,2010). The first section demonstrates central problem of the case. The second part discussed the five forces and its application in the case . In the third part, the strategy of the company, the strengths and weaknesses of the company and the major competitive advantage of Evergreen was analyzed. The last part will propose the recommendations for Evergreen.
 
The central focus of the case 
Evergreen Natural Markets has developed from a small seasonal produce stand to a super successful company for the past decades. The main reason for its success is the right business strategy made by the leadership, and its creed to provide the best goods and service for customers. The central focus of this case lies on how to manage the challenges and difficulties for a company in the fierce competition took Evergreen Natural Markets for instance. And it is questioned whether Evergreen will integrate Arugula grocers successfully with the Evergreen model,which is its first purchase outside the Rocky Mountain region.
 
Porter five forces analysis and its application in the case
Porter five forces analysis is an important tool for assessing the potential for profitability in an industry. It helps analyze the industrial environment and develop business strategy. These five forces are: supplier power, buyer power,competitive rivalry, the threat of substitution and the threat of new entry.(Michael E. Porter, 2008)
 
The five forces have already played their role in this case. The measure of building two distribution center significantly reduced the delivery costs of the suppliers, thus leading to the negotiation on improved terms. Those savings compensate the large input. Evergreen Natural Markets tries its best to meet customer needs and offer excellent service. This creed , to a large extent, will keep an advantage in price competition. Acquiring independent grocery stores would not only strength its own power but also greatly reduce the industrial competition. 
 
The strategy of Evergreen Natural Markets
The main strategy of the company is to provide the best products and service as well as the significant investment in information technology. It also focus on the real need of customer and employees. The most successful strategy is its management for improving the companies ti purchases while retaining previous management. There are still some other aspects of its strategy, such as building distribution center, integrating new stores and the constant communication between its managers and employees.
 
Strengths and weaknesses of Evergreen Natural Markets
Strengths: In the first place, it insists on keep the good quality for the products and services. Secondly, the large warehouses enabled an efficient distribution system . Then, the quirky, original hand-painted signs attract customer’s attention. Fourthly, its formula for partnering with managers of acquired stores wins advantage over other rivals.The fifth point, the latest information technology system supported the overall operations. Lastly, the control system helps to set and meet performance targets. Years of Acquiring experience has already accumulated much valuable ideas for the following new acquiring target.
 
Weaknesses: One of the weaknesses is the application of the slotting fee agreement, which may arouse resistance from the store manager. Another is the attempt to apply the formula to every acquired stores without concerning the changing situations. The third one is that it almost depends on its rich customer group, while most of the middle and lower customers are reluctant and unable to afford the organic foods. Fourthly, the business market is highly competitive, which may caused a hardship for grocery store.
 
The competitive advantage of Evergreen Natural Markets
The gourmet, natural, and organic products, competitive prices, and high-quality service consolidate the foundation of Evergreen Natural Markets. By building two distribution centers, its distribution system was improved. Compared to other companies, its formula for partnering with the managers of acquisitions brought it great success. The adoption of the state-of-the-art information technology system supported Evergreen’s supply operation as well as its financial control. It gives better inventory control, reduces shrinkage and stock outs, and helps better set price. Evergreen pays as much as attention to its customers and employees, it cares about what they really need and want. 
 
Recommendations for Evergreen Natural Markets

 

The acquisition of Arugula Grocers is a right decision. It offers the new opportunity for Evergreen Natural Markets to occupy new market shares. However, the Evergreen model should be modified in this case. At first, the communication link between Evergreen and Arugula has to be enhanced. Presently, the relationship between the two parties was weak, and the Arugula was confused about their destiny. Secondly, before investing in Arugula Norton http://www.liuxuelw.com/lxszy/ need to seriously analyze the financial situation of the store. Arugula was confronted with a serious of financial problems and mismanagement. Ignoring these problems will lead to failure and losses of Evergreen. Although the Evergreen model has succeeded in many acquisition. It still faces great threats and dangers in the Arugula case. The management style is not such appropriate for Arugula Grocers.One main proposal is demonstrated. Evergreen should concern more about the human resource., providing more welfares for its employees.(Julie Cook, 1998) 

 

Conclusion
 
All in all, it is important to be aware of the challenges and opportunities of today’s economic environment for any company. It is not enough for the companies to provide good products and service under the traditional concepts. Factors as organizational culture, human resource management, strategic management at the same time should be carefully considered. 
 
Reference

 

Buss,D.(2010). Anatomy of an Acquisition: Why bigger companies are targeting smaller company acquisition. Chief Executive, 249, 50-55.
Michael E. Porter., (2008) “The Five Competitive Forces That Shape Strategy’’, Harvard Business Review, p. 86-104.
Julie Cook, “Some Way Out,” Human Resource Executive, September 1998, 1,34-38
 
 
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