Propose how HOSB can pursue each of the three (3) turnaround strategies to ensure its business will remain competitive in the industry.
Health Organics Son Bhd (HOSB) is a popular health food store that sells organically grown food products and health supplements at Central Hill Mall in Putrajaya. Hisham is the owner of HOSB. 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 health-conscious professionals with higher income and hectic work life. HOSB has garnered a strong customer base due to its continuous effort in offering valued and quality products and services. Since its establishment, HOSB has broadened its product line, including a range of imported premium-priced instant healthy meals for busy professionals. Even though the meals only require simple preparation by heating it in the microwave oven, its nutritional value and taste are still preserved. HOSB popularity stems from various factors, including Hisham's reputation as a national champion bodybuilder, excellent personal service, and efficient cash management, contributing to its above-average returns. Since a year ago, the Central Hill 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 online market and direct selling are also jumping 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-19, the quarantine exercises have also inspired Hisham 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 mobility 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 Putrajaya and work from home instead. He also plans to outsource the delivery service to a reliable food delivery company such as GrabyFood and PandaFood. Nevertheless, Sarah, the financial controller of HOSB does not think Hisham's plan would be feasible. Moreover, HOSB is currently undergoing the decline stage where the demands for health and organic products have been affected by competition significantly. Central Hill Mall recent strategy has posed threats to HOSB. Sarah believes that to remain competitive in the market, HOSB needs to seek a new strategy to eliminate unnecessary costs and improve productivity. Like other companies, Sarah foresees that HOSB 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
