Best Practices In Strategic Implementation

Best Practices in Strategic Implementation

Best Practices in Strategic Implementation

This paper will look at three areas of best practices in strategic implementation from multiple companies and cultures. Resource allocation and prioritization, company risk management, and project network development are vital areas within project management where organizations need to have success effectively completing on-going projects.

Sarah's part - Resource Allocation and Prioritization

Resource allocation and prioritization is an important piece to having a successful project. Resource allocation and prioritization requires using limited resources to the best possible use; prioritizing which expenses must be met versus which expenses can be put off until more funding can be obtained or until after the project is completed. SUPERVALU used resource from other companies to acquire Albertsons, Inc.'s premier properties. SUPERVALU strategically handpicked the locations to get the best for the money they were putting into the acquisition.

Brief Overview

SUPERVALU operates retail grocery and pharmacy stores, distribution operations, and third-party business assistance for both small and large companies. They are the main food distributor for 2,200 retail food stores (excludes their own retail stores) in 40 states (Datamonitor, 2007) and the secondary distributor for another 400 food retailers (Datamonitor, 2007). With the acquisition of Albertsons, they currently operate 2,478 retail locations under 12 different banners. SUPERVALU has combined a unique blend of retail operations, distribution operations, and third-party food retailer support through successful acquisitions and the careful allocation of their resources.

History

SUPERVALU 's history began almost 140 years ago when Hugh G. Harrison provided the funding for a dry goods wholesaler named B. S. Bull and Company (SUPERVALU, 2007). B. S. Bull and Company was based in Minneapolis, MN. Beginning in 1924 when the Newell Company built the first modern grocery warehouse in Minneapolis (SUPERVALU, 2007), the foundation was laid to establish one of the nation's leading retail grocer chains in both size and revenue. Over the next 80 years, SUPERVALU would increase their size and revenue with acquisitions of both small retail grocery chains, except for Albertsons, food wholesalers, and third-party logistics companies. The following key acquisitions have helped propel SUPERVALU to the company they are today, all dates and information were acquired from www.supervalu.com/sv/webapp/about/history.jsp:

1926: between 1924 and 1926, Newell Company merged with Winston, Harper and Fisher to create Winston and Newell Company; first company in the Minneapolis to use motor truck (semi-trailer equivalent)

1942: Winston and Newell create their own "virtual chain" and leave IGA; offers retailers that are affiliates extensive services that are focused on nationally advertised brands, store layout and fixtures, and advertising; members of the "virtual chain" operate as Super Valu or U-Save

1954: Winston and Newell now operate as Super Valu

1955: beginning of Super Valu's distribution expansion strategy, lasts for another 25 years, with the acquisition of 12 regional food wholesalers in the Midwest, Southeast, and Northwest United States

1980: acquisition of 5 Cub Foods stores; grows to more than 100 in the next 24 years

1991: acquires Scotts Foods, 16 stores in Fort Wayne, IN later to be sold in 2007

1992: changes operating name to SUPERVALU Inc and celebrates 50 years of retailing and retail support

1992: acquires Wetterau, Inc and increases Midwestern distributions and adds Shop-N-Save and Save-a-Lot banners

1994: acquires Hyper Shoppes, Inc and adds the bigg's Foods banner

1999: $1.2 billion acquisition of Richfood Holdings increasing distribution on the East coast and adds Virginia's Farm Fresh Food & Pharmacy, Metor or Shoppers Food & Pharmacy, and Shoppers Food Warehouse

2000: one of the first companies to join the Worldwide Retail Exchange (business-to-business Internet exchange)

2001: launches industry-leading SVHarbor, business-to-business Internet portal for affiliate and corporate retailers, manufacturer partners, and distribution operators

2002: launches Advantage Logistics to offer third-party logistic solutions to companies who deal with highly consumable products like produce

2002: acquires Deal$, Nothing Over a Dollar; by 2004 most have been converted to Sav-A-Lot combination

2003: innovative acquisition through an exchange of assets to acquire C&S Wholesale Grocers (assets in Northeastern United States owned by SUPERVALU transferred to C&S Wholesale Grocers for assets in Midwestern United States owned by C&S Wholesale Grocers)

2005: acquires Total Logistics Control, a third-party logistics company that offers supply chain management to large-scale companies facing logistics challenges

2005: W. Newell & Co begins operation as a specialty distribution company

2006: opens Sunflower Market, retail market offering natural and organic products

2006: acquisition of Albertsons, Inc premier retail properties; moves SUPERVALU to the second largest grocery retailing company in the nation.

SUPERVALU has also been able to acquire key companies for the distribution side of the business. The latest acquisition of Total Logistics Company increases the size and customer base, both potential and current, for SUPERVALU's new third-party logistics venture. Using their distribution knowledge, they have created a solution for companies, both small and large retailers, having problems with logistics and have created another profitable segment.

S.W.O.T.

SUPERVALU holds a strong market position in both their grocery and pharmacy retail sector and the distribution sector. As a result of their strong market positions, they have maintained steady revenue growth. It can also face the competition head on. The following S.W.O.T. analysis was taken from http://dbic.datamonitor.com.ezproxy.apollolibrary.com/companies/company/?pid=2704C2AB-AD93-48E9-99D0-2CB85C557E14#SWOTAnalysis: