Porters Analysis- Albertsons

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PORTER’S VALUE CHAIN MODEL ON ALBERTSONS (i) Firm infrastructure a) Good financial backing. From the given document it can be inferred that Albertsons has a good financial backing. It is mentioned that the company has invested half a billion dollars for technological advancements and also they are into the drug retail market which is more profitable over groceries. Moreover Albertson’s stands in 3rd place in revenue with 20 billion dollars behind Wal-Mart. b) Organizational structure. Albertsons CEO, Johnston believes in using IT as an enabler of business to keep prices competitive and make the shopping experience more compelling. Therefore the company would be well organized to implement IT for analytical processes. As the CEO himself is involved, the company would be well structured. c) Quality management CEO Johnston also has plans to bolster the company’s leadership with the best minds available and also use motivational techniques to invigorate his employees. These ideas show the character of the CEO in enhancing productivity from his work force. Another point can be the innovational shopping techniques put forward by the CEO, like the self service checkout stations which tries to provide some form of quality service for the customers. d) Planning management Albertsons has many goals to achieve by planning out their technological advancements. They have invested 50 million dollars to study customer buying habits. The CEO has also hired employees with good experience like CIO Dunst from Safeway, and for the supply chain management team, some technology experts from companies like PepsiCo, Dell and even Wal-Mart. This allows the company to be in line with the latest technologies available and demonstrates the future planning undertaken by the CEO. (ii) Human Resource management The human resource services at Albertsons appears to be much better than their chief competitor Wal-Mart’s .It is mentioned that the average Albertsons employee earns more than a Wal-Mart ‘s employee. Also employees at Albertsons enjoy benefits like health insurance and retirement packages Another point is the use of motivational techniques to train and develop employees, which is mentioned above. The interest shown in hiring top management employees away from their competitors like the current CIO Dunst is also undertaken by the human resources team. Something worth considering with the human resource management is culling of payroll as a result of the self service check out stations.

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