Hometown Deli Case Study Stage One: Summary, Areas of Focus For Stage 1 of the Case Study: Analysis and Recommendation, you will ensure you cover the requirements by reviewing the assignment details and scoring rubric. You will (from the rubric): 1. Perform a detailed Porter’s Five Forces analysis for your Hometown Deli, addressing each force in one or two sentences and defining the force, its impact on the Deli and your strategy or strategies for dealing with it (30 points). In past classes, students failed to identify whether the force/impact on the deli is high or low). Information on each of the five forces follows: a. Buyer power: The buyers are your deli customers. Their power can be exerted which can affect the price they pay for items. Some factors that can influence buyer power is number of customers, availability of product, differences between competitors/substitute products and what they are willing to pay for an item. b. Supplier power: This is the power that the people who the deli purchases its goods to make their foods have.
This can be impacted by the suppliers raising or lowering their prices, changing the availability of their products, and modifying the quality of their products. c. Threat of substitute products and services: In the deli’s case, this refers to similar products in other industries. Thus, fast-food establishments would be a substitute, grocery store products and sit-down restaurants would fall under this classification. d. Threat of existing competition: this would be your competition in the same industry (deli or similar offerings). If there are many competitors in the deli industry, the threat would be considered high. . Threat of new entrants: considerations should be ranked high if it is easy to enter the industry and low if there are barriers to entry/it is difficult to open a deli establishment. 2. Determine which of Porter’s Three Generic strategies (textbook, pages 19 – 22) you will use as you rebuild your Hometown Deli for the 21st century and explain why you selected it (15 points). Properly understand the concepts from figure 1. 12 on page 20. These are not firm or industry dependent, thus labeled “generic”. They are applied at the business unit level. Review the verbiage below the figure and include complete information.
Your choices are: a. Cost Leadership Strategy: Low Cost – Broad Market: This strategy’s goal is being the low-cost producer in an industry with the focus being to earn a profit greater than its rivals by settings prices at or below the industry average to gain market share. b. Differentiation Strategy: High Cost – Broad Market: This strategy’s goal is the development of a unique product or service that customers perceive as different from the company’s competition. Because of the product/service’s value, consumers are willing to pay a higher price for it since it is either not offered, or better than the competition. . Focus Strategy: Low Cost – Narrow Market or High Cost – Narrow Market: This strategy’s goal will concentrate on a narrow market and within that market is either a cost leader or offer a unique product or service. If an organization integrates a focus strategy, they can expect customer loyalty which results in a competitive advantage. 3. Using your analysis, identify a strategic area for improving the business and briefly explain your choice (20 points). Some examples are: a. Customer Service/Operations b. Accounting c. Marketing d. Supply Chain Management/Inventory/Procurement e.
Customer Management 4. Within the selected strategic area, identify a process (activity) that could be improved with the use of technology (10 points). You need to include an explanation of how technology would improve the process. Some examples related to sections a. – e. in question #3 include: a. Process: Sales process; Solution: online ordering, sales tracking by implementing a POS system b. Process: Tracking of financials; Solution: accounting software, other integrated packages c. Process: Increase deli visibility online; Solution: creating a website social networking sites d.
Process: Inventory ordering or management; Solution: supply chain management software, inventory management software, database e. Process: Loyalty program development; Solution: coupon tracking, capturing customer information 5. External research (10 points) 6. Report format (15 points) Concepts Porter’s Five Forces •Buyer Power •Supplier Power •Threat of substitute products or services •Threat of new entrants •Rivalry among existing competitors Refer to WalMart Case Example document (Course Content area), pages 1 – 3. Porter’s Generic Strategies •Broad coast leadership Broad differentiation •Focused strategy Refer to WalMart Case Example document (Course Content area), pages 3 – 4. Strategic Area A strategic area can be a support area such as Human Resources or Finance departments within a company, but for our case, look at customer service or a function within Hometown Deli and improve a process within the area you choose. Strategic Planning concepts: http://managementhelp. org/strategicplanning/index. htm Sample Strategic Plan: http://www. planware. org/strategicsample. htm Basic Discussion of Strategic Planning: http://managementhelp. rg/strategicplanning/basics. htm#anchor1434082 Identifying Strategic Positions: http://www. thedifferentiatedworkforce. com/pdfs/TDW-Chapter3. pdf Business Processes Page 20 of the textbook: “a standardized set of activities that accomplish a specific task, such as processing a customer’s order”. Section 2. 2 of the textbook, (pages 61 – 63) gives examples of different business processes. Aligning strategy to business processes: http://www. ebizq. net/topics/human_centric_bpm/features/10378. html? page=3 Balanced scorecard is used to align strategic planning to business activities: ttp://www. balancedscorecard. org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default. aspx Business Strategy, Strategic Planning and SWOT Analysis Under the Resource link on this page: http://www. bized. co. uk/educators/16-19/business/strategy/lesson/busstrategy. htm or attached as a . ppt file. Adams Six Sigma: http://www. adamssixsigma. com/Newsletters/strategy_vision_values. htm How to do a SWOT analysis: http://www. mftrou. com/support-files/how-to-do-a-swot-analysis. pdf Business plan strategies/SWOT analysis: http://www. planware. org/businessstrategies. htm