It significantly rely on the capabilities of the manager that how effectively it can prioritize and determine the most important element. The Trader Joes legal factors involves the certain laws and regulations which might effect on the business operations of an organization. From the standpoint of owners, the key value drivers may be the growth potential company’s key services and products, key technology capabilities providing the competitive edge, superior process’s cost effectiveness as well as the strategic differentiated positioning. Supervalu sold five of its grocery chains to private equity investors due to them having to release employees to maintain cost competitive in the industry. By doing so, Trader Joe’s is able to save money because they are buying new products in bulk. The reason behind this is that it keeps the media out of transactions made between Trader Joe’s and the supplier. The ability of the option is considered while the alternative generation process, so gauge if the option will remains table, if the given situation and markets changes. Everyday low prices 3. If the participants in the industry have to incur high cost for switching suppliers or the firms are located adjacent to the suppliers manufacturing facilities. The options developed entails and includes the maximum factor that the organization should analyze or achieve, thus offering great value. By doing so, Trader Joe’s is able to save money because they are buying new products in bulk. The new products contain attributes that are more appealing or better suited to their needs. For the purpose of maximizing the benefits of such analysis, it is important that it should be used on regular basis so that an organization would be able to identify the trends. Learning/ Experience Curve Effects: The different companies within the industry are creating value for the customers by following trends. profitable). Trader Joe’s is a national chain of neighborhood grocery stores. In short, it provides the basis to company’s executive, analysts and manager of making the company profitable in forthcoming years (Helfert, 2017). A degree of profitability of an organization highly depends on the income statement reporting on the operations results of company. After considering the major top problems, the business analysts or managers would then be able maximizing the shareholder’s wealth. Trader Joe’s vs. We are committed to providing our customers outstanding value in the form of the best quality products at the best everyday prices. Thus is important as to allow the organization. For example, Whole Foods concentrates in the organic and naturally grown market of the industry and have higher prices on their productsbecause the quality of the food you are purchasing for is much higher than Aldi’s prices and quality. Competitive strategies currently utilized, vary throughout the industry. In 2013, Trader Joe's faced several threats as larger chains such as Wal-Mart and Tesco had begun to open small-format stores that mimicked the Trader Joe's approach. Apart from this it also affect the growth potentials of the industry as a whole but reducing the profitability margins. It is due to the fact that such analysis allow the organization to see, if the option will remain strong in future or not. It is encouraged to be consider especially for a projects that are large and complex in nature. This will allow the team to develop a better solution plan addressing all the factors and considering all the risk associated with it. Technological Forces: In the recent increase in technological use by companies, companies in the supermarket industry have been able to offer customers self-checkout and price scanners. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data. Apart from this it only cover the issues that are definite and doesn’t priorities them. These in-imitable factors allows the organization to developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion the long-term. Therefore, being the use of the financial ratios would provide assistance thereby leading to the overloaded information. Funding from Venture Capital and Private Equity firms. The analysis of the environment including internal and external elements is vital for organization since it impacts on the performance of an organization. The Basic idea of the Trader Joes VRIO model is to analyze the factor that are valuable for the organization. Basically, developing a problem statement is an extensive process and requires the proper brain storming of the teams in order to identify the underlying loopholes or inefficiencies within the organization. It helps in determine the organizational and environmental factors that could affect the decision to be made. It is the process that is widely used for identifying the financial weaknesses and strengths of the corporations, this can be done by building the relationship between items of the profit & loss account and balance sheet. The evaluation of the performance of company is often easier in case of having benchmark or standard performance for the comparison. It is significant to consider these factors. Throughout different regions in America customers can choose if they want to shop at a high-end grocery store or at a low-end. The reliability factor includes if the option developed is successful or has the successful track record in the past or with the pats companies. Therefore choosing clients often become crucial for the organizations as to avoid the situation of being highly depended on the buyers. The competitive rivalry is the analysis of the brands and the product, its strengths and weakness along with the strategies, competitors and the share in the market. The differentiated product offerings, also, creates brand loyalty set by the customers. Joe Coulombe, the founder of this grocery chain, in 1958 acquired a small chain around the LA area under the name of "Pronto Markets," the idea of Quick and fast markets. Whole Foods has more than 330 stores in the United States, Canada, and the United Kingdom. Trader Joe's is a privately held chain of premium grocery stores with headquarters in Monrovia, California. It is an unfavorable situation that exist in the environment making it difficult for the organization to achieve its defined goals. It is due to the fact that the organization needs to analyze exact factor in terms of its reversibility to see, if the process can be reversed, if the option fails to offer the respective results. If they do not follow with this tactic, then Trader Joe’s customers will begin to have negative feelings about shopping there. Profitability:the financial analyst generally assess profitability of an organization since it is the ability allow organization sustaining growth and earing income in both long term and short term. It is important to note, that the problem statement can cover tangible or intangible issue but it needs to have a clear relationship with the organization end goal. The solvency depends upon the balance sheet of company indicating the company’s financial condition at a given period of time. Internal dimension includes all the factors that could affect the organization which is the strength and the weakness while the external factor includes the environmental factors that is the opportunities and the threats. whereas the micro environment includesthe external customers of an organization, distributors or agents, competitors and suppliers. The Trader Joes substitute products are an alternatives that are available in the market at comparatively better prices. In addition, it offers clear view what are the factors that are valuable and inimitable o can be easily imitated in the long-term, thus preparing the organization to either use the valuable factor to delight the customer and develop a sustained competitive edge, or enhance its value and oragnation strengths to develop a strong competitive edge in the market, which is important to develop and maintain in order for the organization  to remain profitable and allow the maintenance of market share in the long-term (Hille, 2015). The privately held company employed approximately 9,200 people in over 450 stores across the country in 2016. Trader Joe’s announced that 1,250 of its 53,000 employees tested positive for COVID-19 within the past eight months, an infection rate of about 2.4%, according to the grocery store chain. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. It can be used for examining the business operations from the variety of perspective for determining the ways that can be used to strengthen the business and understating the greater financial condition or situation. Perhaps, stating the Trader Joes problem statement is not just writing the fact, it’s more about the factors that are effecting or may affect the organization in long term, therefore, while developing the problem statement, the factors such as human resource skills innovation, technology, change resistance are considered, that have a direct effect on the organization or is hidden cause of the problem. The model doesn’t incorporate new business model and the changing dynamics of the market and the impact of globalization. Within the industry the businesses profitability is dependent upon the following forces: The competition among the firms help in identifying the lucrativeness of an industry where companies are competing hard in order to maintain their power within the industry. Additionally, the macro environment includes legal and political factors, sociocultural forces, economic forces and technological factors. The particular section deals with the different ways the problem can be resolved. The external factors are dynamic and can be change at a rapid pace. The effect of the particular external factors or forces might have extreme consequences for the specific department or divisions, also the analysis better helps companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008). How about receiving a customized one? Such is important to analyze or else it would lead to failure. A bargaining power of a supplier in the market is strong if: The buyers having strong bargaining power can highly influence the profitability of the suppliers operating in the market by imposing condition that are not much favorable for the suppliers in terms of price, quality or service. Such products prevail due to the technological and innovative advancement. Appendix C: Five Forces Analysis Rivalry among Competing Sellers (Strong): The rivalry among competing sellers is strong because Trader Joe’s offers more differentiated product offerings among other companies in the supermarket industry. For instance, lower price, special offer, and money back guarantee etc. Environmental Forces: Bad weather can impact the farming industry, which will result in a impact in the supermarket industry. Wages over minimum rate Weighted Competitor Strength Analysis: The table below is an analysis of Trader Joe’s KSFs weighted against Trader Joe’s competitors. As a result, companies shed employees in order to become more cost competitive. Hire a Professional to Get Your 100% Plagiarism Free Paper. In addition, the compatibility of the option is also analyzed, in order to understand if the given option is aligned and compatible with the procedures of the organization. Estimated financials and profit margin. Read more By assessing the stability of the company needs use of balance sheet and income statement as well as non-financial and financial indicators. It is most important ratio in companies which are capital intensive. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. Trader Joe’s currently does not have an official social media, yet fans are creating fan-based accounts. In this way SWOT allows the comparison of organization’s resources and capabilities with the competitive environment in which it is operating. Customers who ‘follow’ social media accounts can electronically send a message to the account and customers can vent any feelings they have towards the company managing the account. The suppliers still continue business with Trader Joe’s because the suppliers understand how loyal Trader Joe’s is to their company. The process scan the financial statement to evaluate the relationship the disclosed items. An organization should innovate and be compatible with the technologies. The option has to be realistic and should have imperative results on the organization. The Invulnerability of the option is also analyzed, in order to understand the sustainability of the option if the one part factor is missing so to understand the suitability of the option. If farmers are unable to farm crops or other resources that companies in the industry rely on, then the companies in the supermarket industry will face a reduction in sales. The Premium Trader Joe's Company Report contains critical information including: Revenue from previous years (2010 to present) Growth rate. it is not appropriate setting an average as an objective. Which areas are in need of immense attention? Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a competition between the participants in the industry on the basis of price and quantity. The matric can be adjusted for thepurpose of reflecting the average equity amount being employed during the span of year, giving the more accurate and realisticpicture of how the organizationhas been performing throughout the year. It is a deficiency or limitation of resources, capabilities, skills that majorly affect the organizations effective performance. When Trader Joe’s finds 10 to 15 new products, Trader Joe’s has to take the last 10 to 15 lacking in sales and replace them with the new products. Such analysis of the compatibilities or capacities is important, as it allows the organization to develop the sustainable competitive edge over it. It is important to note there that it also highlights the needs to beaware of keep emphasizing on the company’s specific concerns without appreciate secondary influence on other ratios. Two Los Angeles police officers will not face criminal charges in the 2018 shootout at a Trader Joe's store that injured the armed suspect the officers were pursuing, and resulted in the death of the store's assistant manager. The clear problem statement is developed by stating the factors and the operations getting effected and its overall impact on the organization specific the areas, such as Profitability, sales or brand equity. Trader Joe's Company operates as a convenience store. Also, the purpose of the problem statement is to describe the external environment and its effect on the overall organization in short and long-term. The secrecy strategy has kept customers patiently waiting, wondering what Trader Joe’s will offer next. Latest trademark applications. Firm infrastructure activities at Joe's Trader supports entire value chain though the scope varies given that Joe's Trader is a diversified company even within the industry. Appendix H: Financial Analysis Trader Joe’s purchases each brand new item in large amounts. The Trader Joes competition is moreover on basis of diversity, the development within the sector and the barriers related to entrance in the market. Competitive strategies … The retail stores in the industry are comprised of supermarkets, such as Wal-Mart and Kroger, and premium players such as, Whole Foods at the high end of the market, and “hard-discounters” such as Dollar General and Aldi at the low end. Value drivers: in recent time, the approach that has been significantly gaining the increased recognition is identifying the key elements standing out as vital in shareholders value creation of the specific organization. Once the purchase is made, Trader Joe’s pays its suppliers immediately rather than trying to stretch out its account payable for as many days as possible. It is used with the intent of analyzing that how well an organization have put their assets to work comparing to other competitors. It is more concentrated than the industry it is selling to. The open discussion and review from past enables to see more clear picture of the ultimate outcomes, leading to better implementation and selection of the right alternative. Trader Joe’s doesn’t look at trends to decide which products to sell, instead Trader Joe’s will routinely change out different products.10 to 15 new products will be replaced on the shelves with the 10 to 15 that are lacking the most in sales. The culture or social influence on certain businesses vary from country to country. The SWOT analysis is only a one stage of the business planning process and do not provide the organization with an in-depth analysis or research that could lead to a firm decisions. It is not heavily relying on the industry for its profits. Such determination is important for the organization to expand in the market and continue its operations with sound profitability. Whole Foods, a premium company in the industry, offer products that meet the needs of this new healthy trend. Lastly, Organization factor includes the resources and functions that are offering certain value to the company. Trader Joe’s does this so the customers and the industry are surprised with what products they are offering in their stores. Dollar General stores offer 10,000 SKUs and operate in a 7,200 square feet of selling space. Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem. Stability:the ability or an organization to remain in the business for the longerperiod of time without sustaining significant losses while conducting the business operations. Trader Joe’s and its suppliers keep their business with each other a secret. Appendix B: PESTEL Analysis Political Factors: The supermarket industry is faced with the challenge of tariffs. We at Accounting Assignments Help provide Case Study: Trader Joe’s Ratio Analysis Help with step by step calculations and explanation 24*7 from our finance experts. If asked from a customer, employees are trained to show a customer where a certain product is in the store instead of pointing them to a aisle. In fact, the analysis of the environment needs to feed all planning aspects as well as it should be continuous. At the time of this case study, analysts estimated annual revenues to be around 3 billion. The analysis is supposed to be insufficient for the strategic planning objective, since it likely scans the externa environmental, whereas avoiding the competitive scenarios and internal environment. In addition some analysts had begun to question whether Trader's Joe's was losing its authenticity and "quirky cool" as the firm had continued to grow and expand across the country. These are the factors that an organization lacks and does poorly in comparison to the organizations operating in the same market at the same level. All in all, the advantage of using the VRIO analysis is to determine the sustained competitive edge in the market. These two different types of stores offer various products at various prices. Trader Joes Opportunity is an advantage and the driving force for an organization. Trader Joe’s is sitting in a good position because everyone nowadays has above par skills with social media. Companies are using social media as a gateway for market research. Trader Joe’s has been built on historical customer loyalty, with die-hard fans being sometimes being referred to as members of “The Trader Joe’s Cult”. The problem statement refer to the concise description of the issues that needs to be addressed. (2016, Aug 11). Scope of Competitive Rivalry: Supermarkets traditionally operated on very thin profit margins. Moreover it also delineates the impact of such changing factors on the users, and other stakeholders. Furthermore, the establishment of the problem statement, allows the organization and the management teams to work in a specified direction. internal and external factors. If the unemployment rate is too high, then this will cause firms in the industry to cut prices in their overhead. Trader Joe’s Case Solution Basic financial ratio analysis: The super market industry uses to generate higher incomes through the mean of debts as it is the practice of the industry to buy goods on credit and follow the strategy of having more debts to give fixed interest … The merit factor, outlines if the option really resolving the issue or aligned with the given situation. From its 2012 Annual Report, Dollar General reported same store sales growth of 4. Strong network of suppliers 2. The consideration of cost is important in the alternative generation in order to attain the maximum feasibility with overall business strategy and the budget allocated. Are You on a Short Deadline? 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