Case Analysis Publix - Essay Example

? Case Analysis Publix MACRO-ENVIRONMENTAL FACTORS Macro-environment describes all the forces and agencies considered to be external to the firm in this case, Publix. These forces and agencies are sometimes too close to the operations of a Publix and thus affect it more directly than would have been thought of (Kakazoukis, 2011). The impact of these environmental forces depends on how effectively an organization plans, tackles them and strategically positions itself in the market. This is one of the areas that Publix has tried to excel in because it understands that ignoring such forces and agencies is detrimental to the business. Publix head office is based in Florida and is a grocery chain with huge numbers of employees, serves a large pool of customers and has its branches and operations spinning across different states in the USA. Society, Sub cultures This company looks at the society it operates in with pride, acceptance, and joy because it has lived by its philosophy of caring for the people as part of its corporate culture in that it helps the customers meet their needs and realize the extraordinary achievements in their lives. This has a major impact on the society since in a way it empowers the customers through various incentives and most importantly through offering customer focused services. This is why the associates of Publix have it clear in their minds whenever at work because they understand that they are not just running a grocery business but have the responsibility of doing the people business. And to that extend, taking care of the needs of associates, customers, its suppliers, and the community as a whole is very central to this supermarket chain (Publix Case, 2011). The other concept that Publix has addressed in its business operations is the dealing with different sub-cultures that are strewn all over the United States. Indeed the US has the most cosmopolitan community in the world. These people have different cultures that define their daily lives. It has been very necessary for Publix to deal effectively with cross-cultural differences within its workforce, the public and most critically its customers. To its employees, this supermarket chain appreciates their efforts and recognizes every individual and group as an important component of its continued growth and has this as part of its organizational culture. Thus to its employees, recognition and genuine appreciation of the contributions that these employees make is part and parcel of Publix and fosters the slogan of ‘where working is a pleasure’. The chain has an eye on its branches in different communities across the US. The customers have their own cultural beliefs in terms of shopping trends, likes and dislikes. To ensure that the supermarket is able to deal with the cross-cultural issues, the associates make contact with the customers and through the interaction; they get to know each other on a one on one basis. This has built a culture of appreciation and the firm is able to understand the different cultural needs of its customers. The customers have fallen in line with Publix’s slogan of ‘where shopping is a pleasure’ (Publix Case, 2011). Demographics/Socio-culture The operations of Publix are revolving around caring and meeting the needs of all its customers despite having different ages, social class, race, and origin. It is in this light that the customers, employees and the public hold the view that Publix has no socio-cultural barriers and neither does it discriminate against people based on their demographic differences. To this chain, the demographic and socio-cultural differences are just another added advantage for it to serve its customers fully without one part feeling left out! The effects of globalization, doing away with barriers to trade and economics, competition, advances in technology and the fact that people-centered services have become critical to success makes Publix the choice of many and these factors have seen the chain grow faster. The customers are carried but have one thing in common: they need more than just groceries! This is why Publix gives its customers a service with a smile and understands their different socio-cultural needs. Communicating with its customers and addressing their needs helps Publix traverse the problems that could be brought about by demographic differences or socio-cultural demands and differences (Publix Case, 2011). Economic factors The food spending trend of the US public has been on the rise for the past decades. The performance of other players in the industry has been on a decline due to the diversion of dollar to other forms of business. This has made it necessary for Publix supermarket to evaluate their profitability. Price competition has not been very effective due to the effect that such competitors like Wal-Mart bring to the market in terms of price wars. Scaling up its operations has thus worked well for Publix. It has adopted the private label branding technique and tried avoiding the branded products which in most cases are very expensive to the consumers. The customers have become cost conscious and any slight adjustment that see their cost of shopping go on the rise is a recipe for losing their loyalty. The financial crisis has however hit hard on the previous gains that had been made by this firm, although it has come out of it stronger (Publix Case, 2011). Natural/physical The physical and natural environment has played a very critical role in shaping the trend of operations for Publix. The customers are fast changing from traditionally industrial foods to organic ones due to fears of former’s effect on their health and most importantly, the environment. The physical location of premises has been quite strategic in terms of access and customer base thus making it advantageous for Publix. Political/legal These factors do affect Publix through the laws on administration, environmental concerns, economic laws, employee protection and consumer protection. Strict laws that are aimed at protecting the consumers and workers such as the consumer and worker safety and health occupation laws have had a major impact on Publix and the way it operates. The safety of both the customers and the employees at work must be guaranteed and this is one area that Publix has had to invest immensely. Safety exits in cases of emergencies, air conditioning, and consumer protection are very vital. The emergence and subsequent gaining of authority by those organizations such as Fair Trade Commission and other consumer protection agencies have brought various political and legal challenges which Publix has had to embrace (Publix Case, 2011). Technological Publix has established itself in the market as the provider of high quality and up-to-date state-of-the-art technology provider. The use of advanced technologies in the provision of its services to customers and employees has made its operations more efficient and effective. To Publix, technological change is appreciated and embraced rather than shunned away from. For instance, the online market entry for Publix has proved to be very effective and efficient and now it has become one of the major competitors in online business transactions through its internet based marketing and distribution strategies (Publix Case, 2011). MARKET FACTORS These are factors that have affected Publix’s market. They include: Collaboration Publix realized the importance of cooperation with close players that affect its operations rather than resorting to competition. For that reason, the firm has established close links with its suppliers and set up lean strategies which enable it to operate effectively and efficiently. It has also had special contracts with some large corporations to allow it carry out private labeling for its products in the market. Advanced technology such as use of Enterprise Resource Planning software has enabled Publix to stay connected to its business partners while offering the best to its customers. Collaboration has also ensured that the costs of operations are minimized and value is created for the benefits of all (Publix Case, 2011). Competition Publix loves competition because it comes out clean and this is because of its competitive advantage gained from the strategic operations and focus to the needs of the customer. It has excelled in national rankings and even beat major players in the retail chain stores. The main competitor, however; appears to be Wal-Mart due to the huge resources and transnational network it commands, but even so, Publix has cut its niche in the market and continues to remain a major force to reckon in the grocery business. To stay afloat and beat the competition, Publix has established some well-conceived value propositions such as convenient solution to shopping for the groceries through home deliveries and online stores; competitive pricing in relation to other supermarkets; superior product quality; and superior customer service, among others (Publix Case, 2011). Suppliers Development of suppliers has been one of the major approaches that Publix has adopted. It realized that instead of competing with them in the market, it could develop good relations who have seen it benefit immensely from its loyal suppliers who ensure that costs are at an all-time low. The suppliers range from those supplying food products, to electronics, cloths, and alcoholic drinks, among others. Regulators The consumer protection agencies have had a major role to play in the operations of Publix. Many regulations are in place geared towards ensuring that consumers are not exploited and that the firms do carry out their business in the most ethical manner. Regulation has also dealt with employee rights and better working conditions, which Publix has provided without hesitation. The major issue that Publix has had to deal with is the sensitivity to the environmental degradation and for that reason, necessary policies are in place which help in protection of environment and thus Publix follows the environmental regulations that have been set by the authorities concerned (Publix Case, 2011). Future of Publix The future for this chain store looks bright if the strategies adopted are well implemented. Global trends will keep shaping the way business is done and advances in technology will mean that the firm continues shaping up to adapting to these new changes. Diversification of its business operations to avoid overdependence on grocery business will also see the firm increase its profits. Online business is the new arena for competitive business practices and Publix has come out as a stronger competitor in that field. Customer oriented service remains an important ingredient for successful business (Kakazoukis, 2011). To cap it all, the future looks brighter! References Kakazoukis Christos (2011) How Macro Environmental Forces Affect Business Buying Behavior, LAP Lambert Academic Publishing Publix Case, (2011), Case 5: Publix Super Markets, Inc. – Achieving Customer Intimacy Read More