51923227 Case Study Analysis

8/12/2019 51923227 Case Study Analysis

1/9


2/9

Attitudes and Job Satisfaction 2

The case incident describes a huge grocery and drug company, Albertsons, which has

oer 2,!"" supermarkets and its drug brands make it the fifth largest drug#company in the

$nited States% &oweer Albertsons has hard times as its main competitor, Wal# 'art

(ompany, eats away at its market share% As Albertsons reenue remained flat and profits

decrease, the administration decided to hire )arry Johnson to turn around the company%

Johnson was working for *eneral Electric, where he was assigned to fi+ *Es European

diision% While working for *eneral Electric Johnson met the training specialist Ed -oreman%

Johnson made some changes in *Es diision, such as transferring factories to countries with

low labor cost, closing down inefficient plants, and later brought in -oreman% -oreman

contributed in *eneral Electric through his three # day program, which aimed to change

employees attitude, in a way that employees would become more energetic, showing more

.eal towards the company% According to Johnston, the program worked perfect as it led to

companys profit increase% Johnston decided to bring -oreman to Albertsons (ompany, as he

belieed that his program application would hae the same results% 'oreoer he decided to

subdue his /1" # million budget on this training% The training schedule had formed as

followed0 training of 1"%""" managers until the end of 2""!, and then they would train all

1"%""" associates with the help of tapes and books%

Albertsons first grocery store was founded in 1 and its success led to the opening

of additional stores in other neighboring towns% The company kept growing and twenty years

later Albertsons became a publicly traded company on the3ew 4ork Stock E+change%

Albertsons e+panded in the field of drugs and its growth continued, opening additional stores

and ac5uiring other grocery and drug store chains%

6n the area of technology Albertsons made progressie steps% 6n recent years added a

system 7check out while you go7, where shoppers scanned products as they shopped and

5uickly paid before leaing, but this system has been remoed from seeral stores% 6n other
http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchange


3/9


4/9

Attitudes and Job Satisfaction !

The fact that customers changed their preference and chose to isit Wal : 'art

instead of Albertsons or any other competitor is not random% Wal : 'arts strategy and

culture, according to Sam Walton # the founder of the company # is Cffer shoppers lower

prices than they get anywhere elseD% Today Wal : 'art is so huge that has the power to shape

the labor markets, pushing suppliers to sell merchandise at the lowest price% 'oreoer Wal :

'art is not a typical grocery store, as a customer isiting the store can be supplied with

products of F about grocery, pharmacy, photo, car, fitness, toys, apparel, shoes, Gewelry,

furniture and other home products, moies, music and books, electronics and office products%

So, why customers should chose to go to different places to get what they need, while they

can get eerything in one store and in low pricesH And is the wide range and low prices the

only issue for customersH

Albertsons structure and policy do not allow haing this huge range of products, as

Wal : 'arts, and this is known to the public8 thus the issue that led customers in changing to

Wal : 'art choice was the price differences% So administration must take actions and try to

bring those customers back, by minimi.ing companys e+penses and trying to close cost

effectie deals with suppliers, adGusting products prices as much as possible, or een increase

companys own labeled products% Albertsons turning to media and press could also increase

customers isits as a first step and increase of actual sales later% 9udget allocation in

commercials8 promoting the lower prices in combination with the human, friendly side of the

company, which gies graity in customers : company relationships and customers serice8

and promotion of brochures with special offers and gifts%

f course according to Wal : 'arts reputation, prices are the lowest in the market,

due to the strategy that was mentioned aboe% So what could Albertsons do in order to coer

this difference in costsH 6mproing the customers serice seems to be the answer8 because

low prices are what eery consumer is after, but always in combination with serice 5uality%


5/9

Attitudes and Job Satisfaction I

Wal : 'art strategy mentions that in order for the company to insure operational

success it focuses on its people% So the company focuses managers and employees on a

continuous learning, improement and employee empowerment% Additionally Wal : 'art

managers attend on a weekly base a cultural training, so that they act like business owners,

looking for opportunities to sole problems and eliminate business risk% Another plan that is

included in the companys strategy is for all the employees to think and act like retail

merchants8 focus on how to help the stores improe serice to customers and to make

business decisions on behalf of customers% ther plans that Wal : 'arts strategy includes

are e+penses reduction at the bottom line, hiring people from colleges with retail institutes,

implementing in employees culture customers fanaticism and crediting employees on sales

goal, sering customers and controlling e+penses%

9ut facts and other employees and customers testimonies show that Wal : 'art

does not follow the plan it presents% 6n the past forty lawsuits had been filed by employees

who said that they were forced to work oertime for no pay, other employees mentioned se+

discrimination, as the article of $SA Today >issued in 2""? presents8 only Wal : 'arts

managers mentioned flattering comments for the company% Additionally many customers

hae mentioned that the company maintains indeed low prices, but customers serice is of

bad 5uality% 9ut neertheless Wal : 'art keeps growing and growing, so low prices are the

primary factor%

(ustomers serice 5uality is based on employees attitude and Gob satisfaction8 as

Johnston mentions in this case incident Cositie attitude is the single biggest thing that can

change a businessD% An employee who is happy and satisfied with hisFher work, will work

een harder and will oerpower een bigger effort to improe hisFher productiity, because

heFshe has positie emotions, feels engaged to hisFher Gob% 6f an employee has negatie

feelings and is not happy with hisFher Gob will not feel the need or want to empower any e+tra


6/9


7/9

Attitudes and Job Satisfaction

Documents

51923227 Case Study Analysis