Describe two companies - Essay Example

Two Companies’ s Empire Company Limited Founded in 1907, the Empire Company Limited is a private holding company based in Stellarton, Nova Scotia in Canada. The company owns Sobeys Inc., a giant grocery chain operating in Canada. The company also has investments in commercial and residential real estate as well as in the movie industry. Sobeys Inc. is one of the biggest grocery retailers and food distributors found in Canada. It owns around 1,300 stores that can be found in all Canadian provinces under banners such as Sobeys, IGA, Price Chopper and IGA Extra (Report Linker, 2009).

Empire Company Limited’s grocery enterprises operate in a highly competitive environment. Some of these competitors include: Metro Inc, Lablaw Brands Limited, Canada Safeway Limited and Ultima Foods Inc (Data Monitor, 2010).Empire Company Limited enjoys a strong industry position in the groceries and food distribution sector. For the financial year ending April 2009, the company was able to record revenue outcme of $256.1 million. This was an increase of approximately 6.8%. The increase was a major feat for the company considering the fact that other companies in the industry were struggling to stay afloat amid the financial crisis that was ongoing at the time.

However, the company’s $4.7 million net profit was a dropped of 15.8% compared to the previous year (Newswire, 2010). Despite the fall in profits, the company still managed to beat most of its competitor’s in both net revenue and profit (Data Monitor, 2010). Companies are normally affected by changes which occur from time to time. In the case of Empire Company Limited, the major changes occurred in 2007 when Sobey’s was purchased by Empire Company Limited, making it a private entity. The retail grocery and food distribution industry in Canada is changing to accommodate the needs of the customer.

To avoid being left behind, the empire Company Limited has put in place measures that will ensure that its future as a market leader is intact. It has enhanced its liquid investment portfolio to ensure that it achieves maximum yield and growth outcomes (Newswire, 2010). The company’s future goals for its food retail business are to enhance workforce management in a bid to improve store productivity. 2) Metro Inc.Based in Montreal, Canada, Metro Inc is one of the major public food retailers in the country.

The company operates in the provinces of Ontario and Quebec, where it is the second largest food retailer after Loblaw Companies Limited. In Quebec the company operates 243 stores and 135 in Ontario. The company also operates drugstore business in various parts of the country. The company operates all its stores under the Metro, super C, Metro Plus, Les 5 Saisons, Food Basics and Marche Ami banners. The products sold in Metro’s food stores include grocery products, frozen and fresh fish, frozen foods and meat, dairy products, seafood, fruits and vegetables, non-perishable goods, organic products and general merchandise (Report Linker, 2010).

Some of the company’s major competitors include: Sobey’s, Lablaw Brands Limited, Canada Safeway Limited and Ultima Foods Inc. Although the company’s presence is restricted to only Ontario and Quebec, it has been able to create its niche in the market, making it one of the most competitive of Canada’s food retailers. It has a large market share in the food retailing and distribution sector, which has enabled it to achieve almost 11 billion Canadian dollars from sales alone (Report Linker, 2009).

The company has in the past focused on high level advertising to increase its sales and revenues. Some of its advertising slogans such as ‘Food at its Best’ and ‘Profession: epicier’ are some of those that have attracted many customers to the company’s products, thereby increasing its competitive advantage. Some of the recent key developments include opening new stores in Trois_Rivieres and St. Jerome in 2009 and an increase in net earnings the first quarter of the 2010 financial year (Marowits, 2010).

Metro incorporated has a number of strategic goals that it hopes to pursue in the future. One of these goals is to increase the number of its private labels and open more stores in Canada over the next couple of years. The company also hopes to franchise more of its products and brands both within and outside Canada. This will ensure that the organization maintains an international presence while at the same time increasing its revenues.ReferencesData Monitor. (2010) Food and grocery retailing in Canada.

Retrieved from: http://www.marketresearch.com/product/display.asp?productid=2891505&xs=r&SID=74084054-493217365-420448387&curr=USD Marowits, R. (2010). Food retailer Metro sees earnings increase 6.6 per cent. The Canadian Press. Retrieved from: http://www.thestar.com/business/earnings/article/846412--food-retailer-metro-sees-earnings-increase-6-6-per-cent News Wire. (2010). Empire Company Posts Q3 Results. Retrieved from: http://www.newswire.ca/en/releases/archive/March2010/10/c6418.html Report Linker. (2009). Food and grocery retailing in Canada.

Retrieved from: http://www.reportlinker.com/p0171163/Food-and-Grocery-Retailing-in-Canada.html