21. (20 Points) This is not a research question. Use a) Slide [6] from your class notes (see below), b) your common knowledge" as a grocery shopper, c) "based upon what I know about HEB", or d) "what I understand about HEB to answer this question. What is important is to link what you know or think you know about HEB to Porter's Five Forces. Briefly discuss each of Porter's Five Forces as each applies to HEB. As an MSB student and what you know about HEB, make your case on the importance of each of the Five Forces for HEB. [6] What is HEB's Business Model? Source: Excerpts from a MBA Students' Team Report, Business Foundations, Fall 2017, Business Model answers the following questions: 1. Who is/are HEB's customer(s)? o Mainly South Texas, Mexico, Broad Based 2. What does HEB's customer value? o National and HEB, HCF brands. Leader pricing, specials, zone pricing, rewards. Customer relationships; store customization to community. o Sponsorships, scholarships, fundraisers. HEB is part of the SA and Texas communities. Excellent community image. 3. How does HEB make money in this business? o Production Efficiency (Vertical Integration). o Hires locally, partners with local farmers and producers. o Low margins, high volume. 4. What is the underlying logic that explains how HEB can deliver value to customers at an appropriate cost? o Focus on Texas and Mexico. o High quality products at reasonable prices. o Provides both national and HEB brands. a. Industry Rivalry and HEB. b. Threat of Substitutes and HEB. c. Threat of New Entrants and HEB. d. Bargaining Power of Suppliers and HEB. e. Bargaining Power of Buyers and HEB