Case Analysis: please read the following 2 cases and answer the attached questions.

Case Incident 1

Albertsons is a huge grocery and drug company. It has more than 2,400 supermarkets and its Osco and Sav-on brands make it the fifth-largest drugstore company in the United States. In a typical year, shoppers will make 1.4 billion trips through its stores. Albertsons competes in tough businesses. Wal-Mart, in particular, has been eating away at its market share. With revenues flat and profits falling, the company hired Larry Johnston to turn the business around. Johnston came to Albertsons from General Electric. And it was while he was at GE, that Johnston met a training specialist named Ed Foreman. Foreman endeared himself to Johnston when the latter hired Foreman to help him with a serious problem. At the time, Johnston had been sent to Paris to fix GE Medical Systems European division. The division made CT scanners. Over the previous decade, four executives had been brought in to turn the division around and try to make it profitable. All had failed. Johnston responded to the challenge by initiating some important changeshe made a number of acquisitions, he closed down inefficient plants, and he moved factories to Eastern European countries to take advantage of lower labor costs. Then he brought in Ed Foreman to charge up the troops. After we got Ed in, says Johnston, people began to live their lives differently. They came to work with a spring in their step. In 3 years, the division was bringing in annual profits of $100 million. Johnston gives a large part of the credit for this turnaround to Foreman. What is Foremans secret? He provides motivation and attitude training. Heres an example of Foremans primary programcalled the Successful Life Course. It lasts 3 days and begins each morning at 6 a.m. The first day begins with a chapter from an inspirational handout, followed by 12 minutes of yoga-like stretching. Then participants marched up a hill, chanting, I know I can, I know I can. This is followed by breakfast and then a variety of lectures on attitude, diet, and exercise. But the primary focus of the program is on attitude. Says Foreman, Its your attitude, not your aptitude that determines your altitude. Other parts of the program include group hugs, team activities, and mind-control relaxation exercises. Johnston believes strongly in Foremans program. Positive attitude is the single biggest thing that can change a business, says Johnston. He sees Foremans program as being a critical bridge linking employees with customers: Were in the business of the maintenance and acquisition of customers. And with so many shoppers going through his stores, Johnston says this provides a lot of opportunities for customer service. Weve got to energize the associates. To prove hes willing to put his money where his mouth is, Johnston has committed $10 million to this training. By year-end 2014, 10,000 managers had taken the course. They, in turn, are training all 190,000 Albertsons associates, with the help of tapes and books. Foreman claims his program works. He cites success at companies like Allstate, Milliken & Co., and Abbott Labs. The goal is to improve mental, physical, and emotional well-being, he says. We as individuals determine the success of our own lives. Positive thoughts create positive actions.

Teaching Note: Answers will vary, but could include the elements bulleted below each question.

1. Explain the logic as to how Foremans 3-day course could positively influence Albertsons profitability. (50-150 words)

Your answer:

2. Johnston says, Positive attitude is the single biggest thing that can change a business. How valid and generalizable do you think this statement is? (50-150 words)

Your answer:

3. If you were Johnston, what could you do to evaluate the effectiveness of your $10-million investment in Foremans training program? (50-150 words)

Your answer:

4. If you were an Albertsons employee, how would you feel about going through Foremans course? Explain your position. (50-150 words) Your answer: