Loblaw case Harvard Case Solution & Analysis

Loblaw Case Solution

COMPANY BACKGROUND:

The Loblaw Company and the management of the organization enjoy rich culture and tradition of the organization as it has been operational and doing business in the Canadian markets for over several decades. The company is a historical entity in the industry and due to this reason it enjoys immense brand awareness among the population of the home country where it operates. This history of the business in the local market has also allowed and facilitated the management of the organization to expand the business in every territory of the home country of the company.
The company was co-founded by two owners, Theodore Pringle Loblaw and J. Milton Crok, in the first half of the 20th century and it was initially known as Loblaw Grocetarias. The management of the organization has enjoyed success historically as the business has traditionally been prosperous throughout its history of operating in the target market. Garfield Weston was the first person and forefather of the present majority owner of the organization to acquire stakes in the organization.

INTRODUCTION:

The purpose of this case study is to analyze the market and the business environment of the Loblaw organization in order to realize the strengths and confidence factors of the business and the threats and challenges, which the management of the organization is facing in order to pursue the business efficiently and effectively in the market and enhance the growth and operating margins of the company.
This dominance is due to the quality management and feasible strategies that the management of the organization has developed and adopted over the period of time. The organization is also well expanded as it maintains its presence in all four regions of the country west, Atlantic, Ontario and Quebec.

CASE OVERVIEW:

The case study is about the performance, issues and challenges of the Loblaw organization that deals with the daily life necessities and grocery products in the markets of Canada. It is one of the most dominant and well expanded organization in the corporate industry of the country in terms of the market share that it maintains in the retail industry of the country however, the management of the organization is anticipating and realizing some issues and challenges that the company is facing while operating in the market and some of them are likely to arise in the future.
The product offerings that the management of the organization pursues at the retail stores and super marts of the company are based upon two different segments, which arethey are food processing and food distribution at the retail and wholesale basis. The most critical issues that the management of the organization is currently facing while operating in the market are efficiency based monetary based as the management of the organization is finding it hard to improve the distribution channel of the company, which in turn is affecting the revenues and operating margins of the organization. The emergence and entrance of new rival super marts and multinational giants is also an issue for the management of the organization.

WHAT PROBLEM IS THE COMPANY FACING?

PRIMARY PROBLEMS:

“The primary problem that the management of the organization is facing while operating in the market is the efficiency of the business and the competition in the industry which might affect the growth and market share of the organization”.

PROBLEM ANALYSIS:

There are several secondary issues for the management of the organization that contribute to the problem and challenge at hand for the business in terms of competition and lack of efficiency in the activities of the organization. It is necessary for the management of the organization to realize these issues that the business is currently facing so that the business might operate in the best possible environment and culture along with the most feasible strategies and policies. The most critical problems and challenges that add up to the bigger issue for the management of the organization are listed below.
• Declining financial performance
• Competition
• Inefficiency in the Distribution system....................

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