In particular section, the management/teams develops different options through which the problem can be resolved. Value of firm:this is the most common concept recognizing the components of capital structure of an organization debt and equity are tends to be values separately in the market. Appendix F: Competitor Analysis Competitor Identification, Description & Strategy: Below is a table identifying Trader Joe’s competitor, a description about the competitor and what strategy the competitor implements. If Trader Joe’s were to follow this strategy, then they will see a huge increase in overall business and customer satisfaction. In addition, the financial analysis helps companies in making the more informed decisions for the firm. The inventory amount can be monitored by analyzing day’s inventory ratio. Supervalu sold five of its grocery chains to private equity investors due to them having to release employees to maintain cost competitive in the industry. Infact, the set of recommendation offered should also have a contingency plan, and the other course of action for plan A and B both. For instance; which are the areas of company getting stronger or weaker? Also, there are many questions that can be bets answered by comparing the figures in Trader Joes percentages. Tariffs are trade barriers, in which, can complicate trading for firms as they outsource their resources. SWOT and PESTLE analysis is a powerful tool to analyze all the factors including external and internal things to decide on the problems that can impact the organization. In addition to this, once the alternative is selected, the recommendation needs to entail what change it will bring to the organization like the 20 % increase in the Trader Joes sales or profits or the sustainability or increases in market share. Such type of calculation needs very selective estimate or analysis of the variables and fixed cost or expenses of the company while taking into consideration the operating leverage effect. The ratios under asset management includes current asset turnover, day’s receivable, days of inventory and inventory turnover. The users of the financial statement are listed below; Significantly, creating the financial ratio add meanings to the accounting and financial data of the business. Competitive strategies currently utilized, vary throughout the industry. The reason behind this is that it keeps the media out of transactions made between Trader Joe’s and the supplier. Funding from Venture Capital and Private Equity firms. The Premium Trader Joe's Company Report contains critical information including: Revenue from previous years (2010 to present) Growth rate. Moreover it does not consider non-market forces. It is a situation that arises as a result of the changes that took place in the immediate or distant environment, preventing the organization from maintaining its existence and superiority in the growing competition and are disadvantageous for the organization. Superior customer and employee satisfaction 4. This is important as it allows the organization in meeting the ultimate goals and addressing the problem effectively. In their early years, they were thinking about the kind of product they should use in their stores. Current debt to equity ratio: it is the mix if the debt of an organization. Such analysis of the compatibilities or capacities is important, as it allows the organization to develop the sustainable competitive edge over it. Trader Joe’s is sitting in a good position because everyone nowadays has above par skills with social media. The problem statement refer to the concise description of the issues that needs to be addressed. Trader Joe’s announced that 1,250 of its 53,000 employees tested positive for COVID-19 within the past eight months, an infection rate of about 2.4%, according to the grocery store chain. Perhaps, it is important to involve other members to take the active feedback on the alternatives, in order to gauge the value of the alternatives and the value it may offer to the organization in the long-term. The privately held company employed approximately 9,200 people in over 450 stores across the country in 2016. As of 2012, Whole Foods achieved an 8.4% increase in same store sales growth. It is amazing how technology has improved shopping experiences for customers. As it can be difficult to group the companies having similar business lines and to call it an industry. it is not appropriate setting an average as an objective. Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem. While public companies often raise far … Retrieved October 13, 2020, from, Save Time On Research and Writing. This could potentially ruin Trader Joe’s business. These are the factors that an organization lacks and does poorly in comparison to the organizations operating in the same market at the same level. It is comparatively low importance for the companies with minimum need for capitals such as leased retail operations and wholesale distribution. Once the purchase is made, Trader Joe’s pays its suppliers immediately rather than trying to stretch out its account payable for as many days as possible. Trader Joe’s can promote from within an employee who has the knowledge and skill to operate Trader Joe’s social media outlets. The average value of homes near a Trader Joe’s store is $644,558, compared with $532,224 for Whole Foods and $250,850 for Aldi, according to ATTOM Data … The Trader Joes legal factors involves the certain laws and regulations which might effect on the business operations of an organization. Trader Joes Opportunity is an advantage and the driving force for an organization. As stated earlier, companies use social media to gather customer information. Lastly, Organization factor includes the resources and functions that are offering certain value to the company. Wages over minimum rate Weighted Competitor Strength Analysis: The table below is an analysis of Trader Joe’s KSFs weighted against Trader Joe’s competitors. Many times, under the case analysis, the purpose of the problem statement is to improvise the current state of the organization through pursuing innovation or other changes. Customers who ‘follow’ social media accounts can electronically send a message to the account and customers can vent any feelings they have towards the company managing the account. For instance, lower price, special offer, and money back guarantee etc. In addition, it offers clear view what are the factors that are valuable and inimitable o can be easily imitated in the long-term, thus preparing the organization to either use the valuable factor to delight the customer and develop a sustained competitive edge, or enhance its value and oragnation strengths to develop a strong competitive edge in the market, which is important to develop and maintain in order for the organization  to remain profitable and allow the maintenance of market share in the long-term (Hille, 2015). Being more engaged in social usage would help Trader Joe’s business and improve their, already stellar, customer satisfaction. Trader Joe’s Wal-Mart KSFs Importance Score Weight Score Weight Supplier Network. The analysis of the environment including internal and external elements is vital for organization since it impacts on the performance of an organization. Trader Joe's was born in 1958 as a small chain of Southern California convenience stores opened by a drugstore executive named Joe Coulombe. Trader Joes Harvard Case Study Solution & Online Case Analysis. By assessing the stability of the company needs use of balance sheet and income statement as well as non-financial and financial indicators. It can be used for examining the business operations from the variety of perspective for determining the ways that can be used to strengthen the business and understating the greater financial condition or situation. Everyday low prices 3. Today they are estimated to be around 8.5 billion. Trader Joes Customer are deemed strong if they contain negotiating leverage specifically if the industry is sensitive to price, the buyers can pressure suppliers for further price reductions. The open discussion and review from past enables to see more clear picture of the ultimate outcomes, leading to better implementation and selection of the right alternative. Such determination is important for the organization to expand in the market and continue its operations with sound profitability. SWOT for Trader Joe is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. Shareholders to clearly understand what is required to done, how it is required to do, who are the key player and how it will be implemented. Sociocultural Forces: The new trend of consumers wanting to live a healthy lifestyle has made a huge impact in the supermarket industry. The research collected helps strategist determine the best way to produce new products, reach new target markets, and notice trends within customer purchasing patterns. These two different types of stores offer various products at various prices. The SWOT analysis is only a one stage of the business planning process and do not provide the organization with an in-depth analysis or research that could lead to a firm decisions. There are two equally important ratios used as indicators of the values of stock market. Moreover, clarity of the Trader Joes problem statement is important to maintain, in order to avoid the misunderstanding between the shareholders and stakeholders. Current asset turnover:it measures the current asset level that is require for supporting sales. Furthermore the cost related to the entry, access to raw materials, barriers related to culture and technical standards also play a major role and can affect the decision of the new entrants in the market. Perhaps, while writ the problem statement, it is important to consider the small factors that are often overlooked such as the intangible factors that effects the productivity of the organization in the long-term. Weaknesses: The stores that Trader Joe’s own are very small compared to other stores within the industry. Day’s receivables: it is the measure of how long will it takes for an organization collecting bills owing to it. In addition time required has to be mentioned. When the new products are open for sale there is a huge demand for them. Thus, the analysis of the financial statement is important mode of assessing the past performance as well as planning and forecasting the future performance. There percentages are most likely providing analysts or managers with the fast or rapid way for finding key issues or problems. The consideration of cost is important in the alternative generation in order to attain the maximum feasibility with overall business strategy and the budget allocated. Trader Joe’s vs. These in-imitable factors allows the organization to developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion the long-term. The information gathered ranges anywhere form buying patterns to simple, overall satisfaction from their shopping experience. The new technology has enabled companies in the supermarket industry to have price scanners in the store, self-checkout lanes, and some are beginning to use the Internet to bring the shopping experience right to the customers’ homes. This in turn might defeating the prime reason of the pestle analysis. Lastly, while doing the evaluation of Trader Joes alternatives, it is important to quantify the options through different techniques. This customer shopping satisfaction has created strong customer loyalty. It is carried out to analyze the position of an organization in in the market compare to its competitors and the major factors that are affecting the competitiveness before crafting any business strategy. The movement in price are likely expressed in mentioned ratios and absolute dollar terms. The option has to be realistic and should have imperative results on the organization. It is an unfavorable situation that exist in the environment making it difficult for the organization to achieve its defined goals. The customer are assumed to have strong buying power in case: Though the model from a strategic point of view is an important tool but there are certain limitation associated with the application of the porter five forces model. Such factors may include sales, profitability competitive edge, market share and other. Internal dimension includes all the factors that could affect the organization which is the strength and the weakness while the external factor includes the environmental factors that is the opportunities and the threats. Economies of Scale: Large purchases, in bulk at cheap prices, from supplier enable Trader Joe’s to allow everyday low prices. The trends allow companies in the industry to grasp what wants and needs customers are currently evoking through purchasing patterns. The effect is that the company has grown and still continues to grow. The external factors are dynamic and can be change at a rapid pace. Great quality at great prices. Trader Joes Apart from the model only provide the overview of the environment and does not define the industry clearly. Lastly, while developing the options/alternatives, it is important to consider the nonrealistic factors that may make the alternatives complicated, leading to poor implementation, time consumption and other related issues. The ratio depicts that the magnitude of the cost of services provided or cost of good manufactured or purchased in relation to gross profit or gross margin left over for operating profit and expenses. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. Combining all of these lasting inevitable impact on the expectations of market regarding the cash flow generation and future success of the company. The secrecy strategy has kept customers patiently waiting, wondering what Trader Joe’s will offer next. It significantly rely on the capabilities of the manager that how effectively it can prioritize and determine the most important element. Moreover, it is also determined, that a clear problem statement is half of the solution, hence it is important To state the problem correctly. Throughout different regions in America customers can choose if they want to shop at a high-end grocery store or at a low-end. The level of interest and concentration of buyers toward the product gives them more or less power. Dollar General stores offer 10,000 SKUs and operate in a 7,200 square feet of selling space. Trader Joe’s three biggest advantages are its customer loyalty, customer service, and everyday low prices. With the golden technology age that is occurring right now, companies are finding ways to bring technology into their businesses to enhance the customers shopping experience. As a result, the tariff can cause companies to leave that market if the cost of the resource, after the tariff is processed, is not profitably suitable for the firm to operate. This software reports financial results from the stores, warehouses and regional offices In order for Trader Joe’s to solve the weak social media use issue, I recommend that Trader Joe’s promote an employee who has the skill and knowledge to take on full responsibility of social media. The suitable benchmark can be found with some problems such as unique attributes problem and averages problem etc. It is the process that is widely used for identifying the financial weaknesses and strengths of the corporations, this can be done by building the relationship between items of the profit & loss account and balance sheet. Due to which the products being produced by the companies that are already existing in the market and is using the same technology are than replaced by the other company’s products that are comparatively better in terms of price and quality and are being produced from sectors with significant profits. That's what we call value. Recommendation. It provides the way of looking at the relative equity and debt amount that has been using by company in order to finance the assets. By doing so, Trader Joe’s is able to save money because they are buying new products in bulk. As a result, companies shed employees in order to become more cost competitive. 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