LOBLAW 5
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robharris
Nov 18, 2011, 4:41:54 PM11/18/11
to MGT 613 B3
What are the financial consequences of any of your analysis or
recommendations?
recommendations?
Amy Fassold
Nov 21, 2011, 3:21:22 PM11/21/11
to MGT 613 B3
To meet its short term goals, Loblaw should focus on inventory levels
and restructuring its stores. These changes may not take a large
amount of financing but should provide a big impact.
In order for Lablow to meet its long term goals, including the
restructure of its distribution system, it will take a large amount of
finances to get up and running. Since Loblaw cut costs in many
different areas in order to be more inline with Wal-Mart's business
model, it is going to take money to get the company where it needs to
be. Loblaw may not have the financial backing or the resources to
make these big changes.
and restructuring its stores. These changes may not take a large
amount of financing but should provide a big impact.
In order for Lablow to meet its long term goals, including the
restructure of its distribution system, it will take a large amount of
finances to get up and running. Since Loblaw cut costs in many
different areas in order to be more inline with Wal-Mart's business
model, it is going to take money to get the company where it needs to
be. Loblaw may not have the financial backing or the resources to
make these big changes.
Stephanie Kruthaupt
Nov 21, 2011, 3:23:53 PM11/21/11
to MGT 613 B3
The financial implications of investing in improving the information
systems, closing unprofitable stores, as well as restructuring
management will be incredibly costly. However, the team will have to
look at the ROI to keep the structure in context. This hopefully
would lead to lower prices to the consumer (because of better
distribution), better focus on growth (with new matrix management to
help with scale), so this should be a profitable plan in 4 years. 4
years seems to be relatively long for a ROI, but with this significant
change it should be short. This will hopefully lead the company to a
long term strategic plan, which will make them profitably year on
year.
systems, closing unprofitable stores, as well as restructuring
management will be incredibly costly. However, the team will have to
look at the ROI to keep the structure in context. This hopefully
would lead to lower prices to the consumer (because of better
distribution), better focus on growth (with new matrix management to
help with scale), so this should be a profitable plan in 4 years. 4
years seems to be relatively long for a ROI, but with this significant
change it should be short. This will hopefully lead the company to a
long term strategic plan, which will make them profitably year on
year.
On Nov 18, 4:41 pm, robharris <rob.harris....@gmail.com> wrote:
snk...@yahoo.com
Nov 21, 2011, 9:24:10 PM11/21/11
to MGT 613 B3
The financial consequences to refocus Loblaw's product offerings,
restructure their management system, and continue to clean up their
distribution system will be very costly. These steps are necessary to
regain trust from shareholders and customers as well as hold on to a
position in the grocery market. It will be worth it for Loblaw to
spend the money now to stop the bleeding and hold on to as much of the
35% market share they had within the $73 billion market in Canada.
restructure their management system, and continue to clean up their
distribution system will be very costly. These steps are necessary to
regain trust from shareholders and customers as well as hold on to a
position in the grocery market. It will be worth it for Loblaw to
spend the money now to stop the bleeding and hold on to as much of the
35% market share they had within the $73 billion market in Canada.
On Nov 18, 4:41 pm, robharris <rob.harris....@gmail.com> wrote:
r_nei...@yahoo.com
Nov 22, 2011, 11:54:54 AM11/22/11
to MGT 613 B3
The financial consequences of my analysis have the potential being
extreme. By using the "wait and see" method, Wal-Mart could take over
a good portion of the food market share. Loblaw needs to set a time-
frame in which they can measure how Wal-Mart is performing and making
appropriate changes when and if needed. The risk of not doing
anything could lead to Loblaw losing a huge portion of its market
share, at the same time finding it difficult in recovering it in the
existing model, while trying to build a competitve model to operate
against Wal-Mart and others in the industry.
extreme. By using the "wait and see" method, Wal-Mart could take over
a good portion of the food market share. Loblaw needs to set a time-
frame in which they can measure how Wal-Mart is performing and making
appropriate changes when and if needed. The risk of not doing
anything could lead to Loblaw losing a huge portion of its market
share, at the same time finding it difficult in recovering it in the
existing model, while trying to build a competitve model to operate
against Wal-Mart and others in the industry.
On Nov 18, 4:41 pm, robharris <rob.harris....@gmail.com> wrote:
Stephanie Kruthaupt
Nov 23, 2011, 10:46:28 AM11/23/11
to MGT 613 B3
Neil - Do you really think Walmart would win the "grocery battle" if
Loblaw just used the "wait and see" method? In my opinion, some
consumers have no interest in grocery buying at a big retailer.
Loblaw just used the "wait and see" method? In my opinion, some
consumers have no interest in grocery buying at a big retailer.
> > recommendations?- Hide quoted text -
>
> - Show quoted text -
Stephanie Kruthaupt
Nov 23, 2011, 10:47:38 AM11/23/11
to MGT 613 B3
Amy - what methods do you think they should use to focus on their
short term inventory levels? How do they deplete or improve inventory
without spending money? Seems like improving that in the short term,
would be more costly?
short term inventory levels? How do they deplete or improve inventory
without spending money? Seems like improving that in the short term,
would be more costly?
Emily Hackett
Nov 23, 2011, 6:51:57 PM11/23/11
to MGT 613 B3
I believe that there must be some sort of short term inventory answer,
but ultimately, if Loblaw wants to succeed, they MUST spend what will
end up being large quantities of money on improving their overall
distribution and inventory system . This will be financially costly
and unpopluar with many people and will probably result in more
layoffs and a change in some vendors. This could drivce some
customers away, but they have already lost so many....they could
potentially gain those customers back with a more reliable system.
but ultimately, if Loblaw wants to succeed, they MUST spend what will
end up being large quantities of money on improving their overall
distribution and inventory system . This will be financially costly
and unpopluar with many people and will probably result in more
layoffs and a change in some vendors. This could drivce some
customers away, but they have already lost so many....they could
potentially gain those customers back with a more reliable system.
Emily Hackett
Nov 23, 2011, 6:55:50 PM11/23/11
to MGT 613 B3
I think that Walmart also suffers from some of the same grocery
related issues that Loblaw's supercenters do.
How do you keep fresh produce and dairy on hand in sufficient
quantities over a long period of time.....??
How do you keep consumers coming back to purchase those goods without
sacrificing profit for the convenience factor?
related issues that Loblaw's supercenters do.
How do you keep fresh produce and dairy on hand in sufficient
quantities over a long period of time.....??
How do you keep consumers coming back to purchase those goods without
sacrificing profit for the convenience factor?
I don't think the wait and see method will be ultimately successful
for Loblaw. They need to do what they need to do, whether or not
Walmart succeeds.
On Nov 23, 10:47 am, Stephanie Kruthaupt <skrutha...@gmail.com> wrote:
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