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Supplement for Trader Joe’s Case Study: Value Chain of Activities Template

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Supplement for Trader Joe’s case study: Value chain of activities template

Current Skills, Competencies and Capabilities of Trader Joe’s

Note: Do the best you can to find information about Trader Joe’s and the U.S. Food retailing/supermarket industry in the Walden library.  There is some very good information available, even though the company is private.  Where you feel you do not have good information about a specific skill, competency or capability, just “infer” or make a reasonable estimate on your rating and reasoning. Making reasonable estimates is a part of strategy thinking: being able to model based on imperfect information, and to make hunches that you can defend reasonably.

Key Area for Analysis

Response with Evidence Documentation

Notes

SKILL CALL OUTS

Are there any individuals, who, by themselves, have skills that are critical to the success of the company (think Steve Jobs)?

Who are these individuals, what are their roles in the company?

What critical skills to they possess that are of strategic value to the company?

How hard would it be to replace these individuals?

Individual 1: Rating

Explanation….


Individual 2: Rating

Individual X (insert as many as needed): Rating:

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

GENERAL MANAGEMENT FUNCTIONS

Information Systems: Rating: 7

Explanation

  Trader Joes have a good structure of information system. It provides user

Information in easily manner. They spread their information using Fearless Flayer and radio ads. But People familiar with Social Media and they did not social media for their information system and Television ads .  

HRM Performance Management Systems (Metrics, Evaluation)

HRM Systems Related to Talent Acquisition 10

Trader Joes have a policy that they want educated customers. They also require educated employees for their marketing fields, new product development etc. They gave people part time jobs with good price and health benefits schemes. They give their fresher employees training.

HRM Systems Related to Talent Retention

Accounting Systems

Other General Management Functions (as you identify them)

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

INNOVATION, RESEARCH, DESIGN, PRODUCT DEVELOPMENT

Applied Research (Store location selection and acquisition) 10

Trade Joes have good strategies to open their store. Company fan page starts a social media page. Many of us who wants to open a trade Joes store follow that page. So This process clear the company view related to their store location. They choose university area for their store because more than 70% their customers are college graduates.

Product Development/Selection 8

Trade Joes believes in new product development and they hunt all intelligent, innovative and educated customers. They also try to give in non –food product .They selects their products according customer; choices.

Team-Based Innovation in General

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

MARKETING, SALES, SOCIAL MEDIA

Marketing 9

Trader Joes use fearless flayer and radio ads. They produced flayer and wrote radio ads itself. They give a chance to their employees to do other things with their jobs.

Sales, Promotions 9

They have good scheme. Trader joes sold best products at best price to their customers. If they use professional for their ads it improve their percentage on promotion area.

Social Media Elements of Marketing 1

They have no social media marketing. They have no company page on Social media. In present time Social media became a good platform for marketing purposes and company fan page gives us good example that trader Joes have a great influence without any social media marketing.

Other Marketing, Sales, Promotion, PR elements (add as required) 7

They should go with Television ads and professional actors for television ads.

It improves their numbers in all fields. 

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

INBOUND LOGISTICS

Product Procurement and Purchasing 9

Trade J

In-Bound Shipping and Receiving 9

Trade Joes has Shipping and receiving both for large companies as well as local companies. They provide customer satisfaction and outstanding on-time performance.

Warehousing and Inventory Management (SKU management with procurement, spoilage management)

Other Inbound Logistics elements (add as required)

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

OPERATIONS, PRODUCTION, SERVICE PROVIDING

Operations: Stock Levels and Replenish Systems, Freshness of Food, Look and Feel of Store, etc. 10

Trader Joes give their customers freedom. If any customers have any complain related their products then they can return that product. They have stock of new products not typically found at super markets.

Service Providers: This includes all non-sales competencies that are “customer facing” (floor stockers, help center, butcher, baker, other specialty centers) 10

They provide a great service. Their crew members play an important role. They provide service customer’s necessity.

Point of Sale Systems and Check Out Experience 6

Check out experience is user friendly because they did not use any self-check lane and other technologies. But they should be using these technologies for security purposes and maintenance of user system.

Non Food Operations 9

Trade Joes also offers non- food product. They provide wide selection of California wine and music etc. They produce their own wine Charles Shaw winery, becomes a great success with customers.

Cross Functional Coordination to provide Service: 9

Trade Joes has good coordination between employees to provide better services to their customers. They have bell system as well as Job shifting system for provide good service.

Other Production/Operations elements (add as required)

COMPETENCY & SYSTEMS CAPABILITY CALL OUTS:

How good is the company in the following areas:

If the competency, or capability is “World Class” (clearly best in industry and could be benchmark for other industries), rate the item a 10.

If the competency, or capability is “Industry Best” (clearly number one or two in the industry), rate the item an 8.

If the competency, or capability is “Industry Average”, rate the item a 5.

If the competency, or capability “Needs Improvement”, rate the item a 3.

If the competency, or capability is a “Critical Deficiency”, rate the item a 1.

Explain in detail your reasoning for how and why you scored as you did, and provide documentation (references).

OUT-BOUND LOGISTICS & POST SALES SERVICE

Product/Service Delivery Scheduling

Outbound Shipping

Post-Sales Service Support

Post-Sales Warranty Support

Other Post-Sales Support elements (as required)

STATIC CAPABILITIES

CALL OUTS:

What physical resources, and outcome resources, (like reputation, cash, patents, etc.) does the company hold that it might be able to leverage in a strategy?

CORE CURRENT CAPABILITIES (OUTCOME RESOURCES)

These are resources that are now potential competitive weapons that were built over the past.

What is the organization’s current cash balance and liquid asset condition?

NOTE: YOU DON’T HAVE TO ANSWER THIS—BUT IT WOULD BE RELEVANT IN OTHER CONTEXTS

What is the organization’s current and project cash flow?

NOTE: YOU DON’T HAVE TO ANSWER THIS—BUT IT WOULD BE RELEVANT IN OTHER CONTEXTS

What is the organization’s current balance sheet health and what are the primary assets with the most value?

NOTE: YOU DO NOT HAVE TO ANSWER THIS—BUT IT WOULD BE RELEVANT IN OTHER CONTEXTS

What patents or other intellectual property does the organization hold that are of strategic value?

What other assets does the organization own or control that are of value and potential strategic significance?  (Location, software, buildings, tools, etc.)

Analysis Table 2: Implications & Recommendations of Skill/Competency/Capability Analysis

Implications & First Draft Recommendations of the Activities Level of Analysis

Implications—“What does the rigorous review and evaluation of this information mean for Trader Joe’s moving forward?”

Recommendations—Based on this preliminary, single analysis, what are my initial recommendations to Trader Joe’s?

(Remember, good strategy can leverage skills, competencies and capabilities, and it should find ways to overcome shortages in these resources)

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