Case Questions

Answer Column: Provide Your Answers In The Column Below

Marks

1. Competitor Analysis:

Using Porters 5 Forces model, complete a competitive analysis for Food Lovers.

Of the 5 competitive forces and based on information in the case, which one do you believe provides the greatest competitive intensity in the industry? Provide your rationale for your answer

10

2. Vision and Mission Statements

1. Write what you would consider to be an effective Vision statement for Food Lovers with its current business model
2. Write what you would consider to be an effective Mission statement for Food Lovers with its current business model

5

3. Business Strategy

1. Based on our discussions early in the term regarding Generic Business Strategies, which strategy do you believe that Food Lovers is currently pursuing?
2. Do you agree with their strategy?
3. Why or why not?

5

4. Marketing Strategy / Positioning:

1. From our discussion on positioning earlier in the term, what positioning strategy do you believe that Food Lovers is using
2. Do you believe that this positioning represents a sustainable competitive advantage for this company over the long term?
3. Why/Why not?

5

5. Growth Strategies:

1. Using the supplied BCG Matrix to the right, plot the growth strategy profile of Food Lovers Product Categories and Potential New Categories under consideration in the appropriate quadrant using roman numeral beside the indicated product category name below

This is a list the traditional retail grocery product categories found in food markets found in Exhibit 4 above. Some of the categories have already been plotted for you as a starting point. Plot the remaining categories on the matrix

1. Grocery (food)
2. Meat and seafood
3. Produce
4. Dairy
5. Frozen food
6. Deli
7. Grocery (non-food)
8. Alcohol
9. Health and beauty care
10. Bakery
11. General merchandise
12. Floral
13. Private Label Food
14. Private Label General Merchandise

2. Should Food Lovers consider pursuing other opportunities to grow their business based on what you observe from plotting the above strategies on the BCG matrix? Provide your rationale

BCG Growth Matrix	High Market Share	Low Market Share
High Market Growth	xiv.	viii.
Low Market Growth	ii. iii. v.	vii. xii.

Should Food Lovers pursue other opportunities? Yes or No?

Rationale:

5

5. Growth Strategies:

3. Regardless of your decision above to grow the business, for this question, make an assumption that Food Lovers decides to pursue a growth strategy by considering the following hypothetical options

1. Purchasing a major wholesaler/distributor of grocery store items
2. Expand into the Superstore channel segment with their existing brand and operating model
3. Launching a catering business that initially focuses on sales to businesses in southwestern Ontario
4. Start to offer consumer incentives (coupons) encourage purchases from new and existing customers
5. Starting a meal-kit business that delivers recipes and ingredients to make meals and would compete with Hello Fresh and Goodfood
6. Purchase a discount retail grocery chain in the U.S.
7. Purchase a higher end retail grocery chain in the U.S.
8. Launch a loyalty rewards program

Place the roman numerals (eg. i., ii., iii., etc) in the Ansoff matrix quadrant of your choice for all of the above growth strategy options.

Ansoff Growth Matrix	Existing Products	New Products
Existing Markets
New Markets

4

5. Growth Strategies:

4. Given your work in question 4b above which one or two of the growth strategies do you believe would work best? Provide your rationale.

2

6. Operation Financials:

1. What would be Food Lovers annual breakeven number of customer checkouts per store?

Show any calculations and state any assumptions.

2

6. Operations Financials

2. Calculate annual breakeven number of customer checkouts per store for Value Plus Canada and Merchandise Club

Show any calculations and state any assumptions.

5

6. Operations Financials

3. Based on the analysis in 5a and 5b above looking at the current breakeven and current average customer checkouts per year, which of the 3 companies (Food Lovers, Value Plus Canada, or Merchandise Club) do you believe is in the best financial position? Why?

2

7. HR / Ethics:

1. In terms of business ethics, do you think it would be ethical or not ethical for Jane to have discussions with the 2 executives from Value Plus regarding business opportunities?
2. Would it be ethical for the 2 Value Plus executives to engage in business discussions with Jane?

Explain why / why not.

3

7. HR /Social Responsibility:

3. Identify and briefly describe a corporate social responsibility strategy that Jane Rahm could develop and implement for Food Lovers that would align with the companys Vision and Mission statements that you drafted in question #2 above

Explain why / how this CSR strategy fits with the Vision and Mission statements?

3

8. Leadership:

As the leaders of Food Lovers, what should the strategic task force recommend to Jane Rahm regarding the strategy moving forward for Food Lovers? Provide your rationale.

5

TOTAL

56