What to do: Â Beneath each company listed, rank the priorities in the order that each company executes the four priorities of Increasing Customer Service, Increasing Gross Profit, Increasing Sales and Reducing Expenses. Â Please put them in a numbered, vertical list.
Next to and below that ordinal list of company prioritized objectives, choose three ways in which the company either:
- Operationally supports their top two priorities or
- Fails to operationally support itâ€™s bottom two priorities.
You may use any combination of priorities to fulfill your three observations. Â Sum up each of your operational observations in two to four sentences. Â Each summation must include:
- the objective supported or lacking support.
- A clear explanation of the operational aspect of the company that supports or does not support the priority.
- A clear explanation of how that operational aspect supports or does not support the priority.
Example: Â If Starbucks was a compnay on the exercise, my response might look something like:
- Gross Profit
- Customer Service
- Expense Reduction
Starbucks supports its first-priority objective of Sales by licensing close to 15,000 retail locations in the united states and over 31,000 globally (statista.com). Â Starbucks utilizes a strategy of deploying numerous retail locations in heavily populated areas to gain a dominant share of the coffee market through location convenience and brand awareness.
(From a case competition that I was involved in where we directly interacted with Starbucks leaders) Starbucks has not traditionally had a heavy focus on logistical efficiencies or supply costs. Â In 201? They shared that one of their logistical innovations for the year was drop-lots. Â They also shared that they sourced shipping containers locally. Â This is representative of their lack of focus on Expense Reduction.
From personally calculating an estimate of Gross Profit based on purchasing supplies at the full retail price, Iâ€™ve estimated Starbuckâ€™s Gross Profit on a venti mocha to be over 2,200%. Â From my knowledge, this is a high Gross Profit â€“ even for the food industry. Â This supports their second-priority objective of Gross Profit.
Where to get your information for your observations:You should perform an online search and physical visit (where possible) to successfully complete this exercise.
Your search should include:
- Exploring the companyâ€™s website.
- Pay attention to their marketing tactics and messages.
- Read their corporate message if you can find one.
- What images do they most prominently show on their website?
- Ratings and Reviews
- What do you find regarding reviews on the company?Â
- What is their rating?Â
- What are common complaints relative to low ratings?Â
- What do customers rave about?
- A search on the company whereby you click on the â€œImagesâ€ tab. Â What priorities are represented by the images most frequently shown?
- A general search related to the public image of the company. Â Does the company have an, â€œI hate Company XYZâ€ devoted to it? Â What tone of social media chatter do you find on the company?
Many of these companies have brick and mortar retail locations in your area. Â If you have not visited all of the retail locations of the companies in your area, you should do so. Â If you have already visited these locations, it might help to revisit them with this exerciseâ€™s objectives in mind.