Winn-Dixie Benchmarking

Winn-Dixie Benchmarking Worksheet

Task A: Problem/Opportunity Statement

Instructions for Task A: In the Response row, write out the problem/opportunity statements for the scenario for each of the team members.

Response to Task A:

Winn-Dixie can regain its position as one of the market leaders in the grocery retail industry, win back customers, and also gain new customers by:

Ð'* Re-evaluating and implementing an advanced store location strategy nationwide as opposed to only regionally

Ð'* Re-evaluating and implementing a pricing strategy to be more competitive in the industry

Ð'* Implementing more brand name products in which customers will have a variety of items to select from.

Ð'* Providing bonuses and monthly incentives to employees to aid in increasing employee productivity and morale

Ð'* Re-evaluating and implementing an advanced store by expanding its accessibility.

Task B1: Generic Benchmarking: Topics

Instructions for Task B1: In the Response row, identify the topics for which you need information in order to identify potential solutions to the problems identified in Task A.

Ð'* In the Response row, list three to five topics that you will research in peer-reviewed journals, on Web sites, and in popular publications such as magazines and newspapers.

Ð'* In the Response row, provide a justification for each topic.

Response to Task B1:

Topic 1: Finding the Right Location for Your Business

In the case of Winn-Dixie, locations are somewhat limited being that they are only found in the southeast portion of the United States and some portions of the Bahamas as well. Choice of location is also imperative for any business to attain a profitable end-year result year after year. This is especially important when operating on a regional basis as competition is already nationally established and is expanding globally. Winn-Dixie's limitations in location pretty much place a cap on their profit potential. A suggestive solution to help Winn-Dixie regain a name in the grocery industry is to implement a plan similar to that of Wal-Mart's and branch operations into different types of stores (express locations, mini-marts, etc). This will in turn give Winn-Dixie a competitive edge by locating these different stores in a method similar to their competition, Wal-Mart, who happens to be a company that benefits tremendously from the money issues that Winn-Dixie faces currently.

Topic 2: Competitive Pricing Strategy

When pricing, Winn-Dixie must take into account the competitive and legal environment in which the company operates. From a competitive standpoint, Winn-Dixie must consider the implications of its pricing on the pricing decisions of its competitors. Winn-Dixie should use the penetration pricing strategy. With this strategy, the company offers new products at low prices in the hope of achieving a large sales volume. Penetration pricing requires more extensive planning because the company must gear up for mass production and marketing. Penetration pricing has two advantages. First, the low initial price may induce consumers to switch brands or companies. Second, penetration pricing may discourage competitors from entering the market. Their cost would tend to be higher, so they would need to sell more at the same price to break even.

Topic 3: Store Brand vs. Name Brand

Most industrial and consumer products have a brand name. If everything came in a plain brown wrapper, life would be less colorful and competition would decrease. Companies would have less incentive to put out better products because consumers would be unable to tell one company's products from those of another. The product identifier for a company is its brand. Brands appear in the form of words, names, symbols, or designs. They are used to distinguish a company's products from those of its competitors. Branding has three main purposes: product identification, repeat sales, and new product sales. Many brand names are familiar to consumers and indicate quality.

Topic 4: Boost Employee Morale

Employee and manager morale dipped even further toward the end of the year for Winn-Dixie, and the current climate that businesses are operating in does not offer any promising turnaround. Winn-Dixie seems to focus on the negative and economic threats and they are not realizing they are contributing to a continued downward spiral in morale.

Studies have proven that the morale of a company's workforce is directly linked to profitability. Low morale - low profits. High morale - high profits. This is because workers who are happy in their job and with their employer performs better, resulting in higher and improved productivity and profitability.

Employees and managers need to feel emotionally attached to their work and their employer in positive and uplifted ways. Senior management needs to convey optimism and send that down the line, with a message that conveys strength and security. They need to encourage and show frequent appreciation of every employee's efforts, and find ways of helping employees work in jobs that utilize natural talents. Both employees and management need to know that what they are doing is highly appreciated, that opportunities for advancement and self-growth are available within and by the company, and they need to come to work in a happy and positive environment.

Topic 5: The One-Stop Shop

A One-Stop Shop is a company or a location that offers a multitude of services to a client or a customer. The idea is to provide convenient and efficient service and to create the opportunity for the company to sell more products to the consumers. In order for Winn-Dixie to win back customers and become a leading competitor again, they should implement more services within the store for consumers.

Task B2: Generic Benchmarking: Companies

Instructions for Task B2: In the Response row, identify companies that have faced and addressed similar situations (successfully and unsuccessfully).

Ð'* In the Response row, list two to three companies