Propose how HOSB can pursue each of the three (3) turnaround strategies to ensure its business will remaincompetitive in the industry.
Health Organics Sdn Bhd {HOSE} is a popular health food store that sells organically grown food products and health supplements at Central Hill Mall in Putraiaya. Hishem is the owner of HOSE. He was previously a national bodybuilder champion and had won many competitions in the past The experience and knowledge gained have motivated Hisham to operate the health food store business to cater to healtleconscious professionals with higher income and hectic work life. HOSE has garnered a strong customer base due to its continuous effort in offering valued and quality products and services. Since its establishment. HOSE has broadened its product line. inclumng a range of unperted premium-priced instant healthy meals for busy professionals. Even though the meals only require simple preparation by heating it in the microwave even. its nutritional value and taste are still preserved. HOSE popularity stems from various factors. including l-lisharn's remtation as a national champion bodybuider. excellent personal service. and efcient cash management. contributing to its above-average returns. Since a year ago. the Central Hid Mall has begun strategising on having more stores selling affordable healthy food. organically grown food products and health supplements As consumers are now more health-conscious. the cniine market and direct selling are also iump'mg on the bandwagon. Thus. the market has become very saturated and competitive. HOSB' s products are no longer unique in the eyes of even their used-to-be loyal customers Hisham desperately needs to take action quickly to survive in the trying situation of increasing competition In addition to the pandemic Covid-'IS. the quarantine exercises have also inspired Hisharn to review the existing strategy He decides to shift the business's focus by narrowing the target market to those potential customers who are health conscious and financially capable but staying at home as they lacks of usability and access to transportation. The proposed strategy entails Hisham to provide home delivery services for orders of the health foods and supplements. To undertake the new strategy. he plans to close his store in Putraiaya and work from home instead. He also plans to outsource the delivery service to a reliable food delivery company such as GrabyFood and PandaFcod. Nevertheless. Sarah. the financial controller of HOSE does not think Hisham's plan would be feasible. Moreover. HOSE is ctlrently undergoing the decline stage where the demands for health and organic products have been affected by competition significantly. Central Hill tvtall recent strategy has posed threats to HOSE. Sarah believes that to remain competitive in the market. HOSE needs to seek a new strategy to eiminate unnecessary costs and improve productivity. Like other companies. Sarah foresees that HOSE would also require sound turnaround strategies such as asset and cost surgery. selective product and market pruning. and piecemeal productivity improvements to boost business growth
