Describe and make recommendations for Trader Joe’s company;
a) Is Trader Joe’s solving whatever strategic problem the
company is facing, and increasing its future profitability?
b) Is Trader Joe’s recommendations line up with ways of changing
functional, business, and corporate strategies and organizational
structure and control to improve business performance.
c) Recommendations might include and increase in spending on
specific research and development projects.
d) Recommendations might include divesting of certain
e) Recommendations might include a change from a strategy of
rerelated to related diversification
f) Recommendations might include an increae in the level of
integration among divisons by using task forces and teams.
g) Recommendations might include a move to a different kind of
structure to implement a new business-level strategy.
i) Recommendations might include a plan to contain a timetable
that sequences the actions for changing the company’s strategy.
j) A description of how changes at the corporate level will
necessitate changes at the business level and subsequently at the
CASE TRADER JOE’S: A 240 REMARKABLY QUIRKY. AND SUCCESSFUL! GROCERY RETAILER In the mid-1960s, Joe Coulombe owned a chain of Joe on to run the business. Coulombe continued to Pronto Market” convenience stores in the greater run the company until 1987. He then retired and was Los Angeles area, but they were under heavy com succeeded by his friend, John Shields, who expanded petitive pressure from 7 He began to ponder the he company into Arizona, the Pacific Northwest, idea of opening up a new kind of store, one with and Brookline and Cambridge (near Boston). When more unusual goods for people who had acquired Shields retired in 2001. Dan Bane succeeded him more diverse tastes while traveling and yearned for and continued to expand the chain. By May 2014 flavors they could not get at home. He went on vaca he company had 418 stores in nearly 40 states, more tion in the Caribbean and came home inspired: He han 10,000 employees, and an estimated S12 billion opened up his first Trader Joe’s store (named after n annual sales. himself in 1967. His store would focus on deliver ing innovative, hard-to-find foods with prices that would deliver great value. He also made a point of A DISTINCTIVE PRODUCT carrying every California wine available. He imbued STRATEGY his new store with a distinctive South Seas theme lining the walls with cedar planks, creating displays out of fishing nets, and having employees wear Ha waiian shirts From the beginning, Trader Joe’s had a distinctive The formula was a hit. By the late 1970s, there produc strategy. Whereas a typical grocery store might were 20 Trader Joe in southern California, and by carry 50,000 different items, Trader Joe’s carried closer the late 1970s the chain had attracted the attention to 4,000, and most products (roughly 80%) bore one of the German Albrecht family, owners of a chain of Trader Joe’s own brand names. Many of the names of discount supermarkets called Aldi Nord. In 1979 are a fun twist on the name Trader Joe but modified to Theo Albrecht offered to buy Trader Joe’s, keeping reflect the nature of the food, such as Trader Jose’s C-70