Winn-Dixie Stores in 2005 (A): Cleanup on Aisle 11 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The company began developing its own commodities, reasoning that by possessing more of the supply chain, it could offer the customer less pricey alternatives. With manufacturing facilities and its new geographical focus, Winn Dixie attempted to secure a place as a low cost provider with a national existence. Instead of improving the business's standing in the marketplace, nevertheless, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The firm increased its influence without ever recognizing the purposed synergies and paid a high premium to enlarge. Actually, there were dis-economies of scale because the supply, promotion, and administrative costs had grown along with the increased earnings.

The growth and wasteful making added sophistication to its supply network, and with a greater debt load and less cash, the firm was unable to reposition itself in the marketplace when its low cost provider strategy failed. Not only was the corporation unable to pursue other opportunity but it also did not have the cash to suitably maintain many of its existing stores, which immediately became run down. Winn Dixie was adhered as a general grocer with few options at a time when the sector was quickly evolving. Following flawed strategies of growth, supply chain changes, and increased debt, Winn Dixie declared bankruptcy. These conclusions would be vital, as they changed what each lender group would receive and whether Winn Dixie could emerge from bankruptcy.

PUBLICATION DATE: October 01, 2008 PRODUCT #: KEL415-PDF-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

Winn Dixie Stores in 2005 A Cleanup on Aisle 11 Case Solution