Wall Mart Impact on the position of Askew-Free-Samples for Students

Questions: 1.What are the strengths and weakness of Askews and Wal-Mart relative to the local Market? 2.What responses, if any, can be made by Askews to Wall-Marts interest in Opening a Store in Salmon Arm? 3.How may the entry of Wal-Mart affect Askews Position in the Market? 4.What are the unique Factors or issues in the local Business Environment that the Competitors should be addressing? 5.If you were on the Askews Board what would you support? Davids plan to develop the state-of-the-art building, a scaled back version of a new building or no new development? Explain your reasons. Answers: Cause This particular assignment is about the building of new Askews store in a better developed uptown area which will have an impact on the amount allotted for financing. David Askew, the chief executive officer of the company had assumed that his costs will be slightly higher than the normal market price which was actually moderate according to him. But the company had faced challenges and the amount exceeded the expected budget. His expectation about the amount was that it would be higher y one- third but it actually came out to be 1.5 to two times higher. This was a serious problem for the company as the banker and board were aware of the time that would be taken o repay the increased amount. Moreover, the company did not even have high gross return as compared to the rest of the industry. The main problem was that the family members of Askew were worried of the negative impact that will be imposed on their company and the proposed building plan in a more developed area. David was exp erienced in local business and he was aware of the outgoing cash flow in the grocery sector to the neighbouring markets of Wal- Marts (McEachern, 2017). The Askew Company had faced strong competition in Salmon Arm from two notable grocery stores. Out of Safeway and Overwaitea, the latter was considered as the strongest competitor of Askew. It was a well established food chain as compared to Askew and they were planning to build new stores too. To keep up with the competitive advantage, Askew also followed their path of opening new stores in the developed area. The problem in the exceeding of budget was caused as the company did not pay attention to the fact that their competitor was more established in the market with high return. They should have considered the negative impact that it would have on the companys reputation before proposing the plan. In future, they should be more attentive towards increasing their sales rather than running in the competition. Also, the other competitor, Safeway did not reinvest in their store which caused a problem to increase their sales. The problems of winning over the competitors is not easy ther efore the company should pay attention to improve and modify their own system before participating in the huge market of competition they need to look into this important fact for their future operations (Saunders, Guenther Driver, 2013).1. Strengths The internal and external forces of these companies are significant in the strategic development of the company in the retail industry. Their global size, supply chain and high efficient are a strong factor for their expansion. Weaknesses The weaknesses of thin profit margin are directly related to the generic strategy of the company. As they use cost leadership generic strategy therefore they also have to follow the outcome of easily imitable business model. Source: (Malach Malach, 2016) 2.Askew can respond to Wal- Marts interest by mentioning that their business was thriving well in the market but there is threat from the powerful new low- cost competitor in the market. The CEO had researched and explained that in a geographic market the most adverse impact is faced by the supermarkets and general merchandise stores. 3.The entry of Wall Mart will have a significant impact on the position of Askew in the market. The experts believe the entry of a global brand like Wall Mart will lead to a business decline of around 10% to 40%. There will be a serious question on the survival of the different small stores and small chain stores as because they offer the same kind and same range of products like Wall Mart. The downtown location of Askew is just within the range of 2.5 kilometers from the latest Wall Mart stores and thus the impact will be severe (Gustafson et al., 2013). 4.There are some unique factors that need to be addressed by the competitors to sustain in such a market. Green Operation- The most important task of the business organizations is to aim for sustainable energy sources and reduce the use of non renewable sources of energy Energy Recovery- The companies must stress for energy recovery and reduce the use and consumption of the existing energy sources. Focussing on Community- Another main task of the organization is to engage themselves in different community based programs to fulfill their Corporate Social Responsibilities. 5.To me a new building with state of the art facilities can be beneficial to the success of the company as because it will help the organization to increase its brand value. The presence of a number of stores will enhance the profit of the organization (Askew, Beisler Keel, 2015). References Askew, O. A., Beisler, J. M., Keel, J. (2015). Current trends of unethical behavior within organizations.International Journal of Management Information Systems (Online),19(3), 107. Gustafson, A., Christian, J. W., Moore, K., Lewis, S., Jilcott, S. (2013). Food venue choice, consumer food environment, but not food venue availability within daily travel patterns are associated with dietary intake among adults, Lexington Kentucky 2011.Nutrition journal,12(1), 17. Malach, R. L., Malach, S. E. (2016). ASKEWS FOODS vs. WALMART: SUSTAINABLE DAVID vs. LOW COST GOLIATH. InICSB World Conference Proceedings(pp. 1-6). International Council for Small Business (ICSB). McEachern, M. G. (2017). Driving Circularities in the Food Supply Chain: The Sustainable Role of Alternative Food Retail Enterprises (AFREs). Saunders, C. M., Guenther, M., Driver, T. (2013). Sustainability trends in key overseas markets to New Zealand and the KPI identification database