The Supermarket Industry – Sunrise Grocery

Sunrise Grocery operates in a competitive environment. Theeconomy has a multitude supermarkets making the industry one of themost of competitive in our country. The intensity of rivalry amongcompetitors limits the profitability potential and increasescustomer attrition. A case study of Sunrise Grocery indicates thatthe Grocery store has challenges in the following areas: customerperspective, employee perspective and Business Performance.

Customer perspective: Long lines, lack of cleanliness, expiredproducts, too crowded, stocks outs and unfriendly or unhelpfulemployees.

Employee Perspective: Bad pay, unpredictable schedules, fewopportunities for growth, lack of resources including equipment,training, and time to do a good job. Results: high turnover 70%nation-wide, 125% among part-timers

Business Performance: This is a competitive industry with verylow margins, becoming increasingly competitive with new storeformats and changing consumer tastes/demands.

Because of low margins there is a lot of emphasis on cuttingcosts and the result of this is often bad jobs, poor service andhigh staff turnover.

Sunrise Grocery Strategic Objectives are:

To increase revenue
To reduce attrition
To reduce costs
To deliver value to key stakeholders

Sunrise Grocery requires an overhaul of business processes.

Question (10 marks)

Discuss the three broad types of business processes required tosupport Sunrise Grocery Strategy and Illustrate the requiredsituation graphically.