Azalea Seafood Gumbo Shoppe is in the Seafood Packaging Industry . In this industry companies take raw seafood materials and package them to sell to supermarkets, grocery stores and restaurants. While Azalea does direct sales through catering the bulk of its revenue is derived from wholesaling its foods (Appendix A). Larger compnaies in the industry typically work through a food broker that will arange selling to supermarkets or grocery stores. A major advantage in using food brokers is that preferred shelf placement can be arranged which aids in sales. For smaller companies in the industry, like Azalea, it is diffiult to have access to food brokers because they do not deal in a high enough volume.
Azalea originally found its niche in the market by having access to seafood from the Gulf of Mexico and selling in Mobile, Alabama, where seafood was a dietary staple. The company has grown in both sales and profits each of the last 4-years, until this most recent year where sales fell 15% resulting in an 18% decrease in profit (Appendix A). The challenge for Azalea moving forward is to develop a strategy that will allow them to grow profits consistently.
Key success factors in this industry include on time delivery, quality product, and brand recognition. Supermarkets and restaurants cannot afford to have shelves sit empty for even a moment. For a company in this industry to succeed it must have a model that allows for on time delivery. This must combated by the cost of keeping inventory levels to high, and the risk of wasting inventory that is no longer fresh enough to be sold. Forecasting product demand is critical for any company in this industry to have enough inventories to supply, without creating profit eating w...
... middle of paper ...
...permarkets and grocery stores. The latter revenue stream could be decreased with more people eating out. The consolidation of supermarkets and grocery stores will lead to these stores having an increased bargaining power and more demanding needs. Azalea may not be able to meet these needs without further growth. In addition to the consolidation of supermarkets and grocery stores consolidation among competitors could also have a negative impact on growth opportunities. As companies like Nestle and Kraft Foods have acquired smaller companies they have created a more concentrated market of sellers. The increased concentration of both buyers and sellers in the industry will require economies of scale to be successful. Azalea will have difficulty expanding enough in its current setting to realize the economies of scale needed for continued success in the industry.
The fast food restaurant industry, which includes quick-service and fast-casual restaurants, is highly segmented with the top 50 companies accounting for only 25% of the industry’s sales. The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, Subway, and KFC – Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s unique position in the market, specializing in chicken-based entrées, has lead to a competitive advantage which the company has been able to capitalize on. Recently, many competitors have added chicken entrees in order to compete in the market segment. Through marketing strategies and company initiatives, Chick-fil-A has tried to stay distant from competitors, offering a fresh alternative to the ordinary fast food restaurant.
Target Corporation needs to increase product availability based on the customer needs using a forecasting and supply chain
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
Found in approximately 1000 supermarkets and 300 restaurants, Azalea Seafood and Gumbo Shoppe is among the largest producers of ready-to-eat gumbo with annual revenues in 2000 of more than $1 million. The company's gumbo was their best selling item earning nearly 90% of yearly sales. Although Azalea has a competitive advantage with its tasty gumbo, Azalea is looking to maintain long-term growth and obtain a sustainable competitive advantage. In order increase its profitability, the company needs to consider options to improve its business strategies.
Based on its localization strategy, Bachoco generated another significant strategy that has already been mentioned, the opportunity to manage its own food has led to the diversification of products is given in the chicken market and in the market for processed food. This has a support in an example that if loses the margin for price and profit increases on inputs that will affect their sales of chicken and eggs that can also have extraordinary income from the sale of their balanced meals. Then knowing the food market, Bachoco has generated defense coverage in grain markets for futures prices.
Azalea Seafood Gumbo Shoppe wishes to develop a strategic plan to maintain long-term growth and sustain a competitive advantage. For Azalea to accomplish this, they will need to consider the options presented here. Included is an analysis of Azalea's problems and issues to address, along with recommendations to grow the business. The recommendations are based on the status of the current market and forces that drive the industry.
Since the store has 4 years of customer purchases by store, date/time, specific items, and sales prices along with weekly inventory delivery information by store, yogurt mix type, and topping, the first step is to calculate on a store by store basis inventory on hand and inventory turnover in each store. Inventory on hand and inventory turnover are traditional metrics but the company need to focus on managing these metrics in a more dynamic way in order to in order to optimize inventory for each store. Inventory analysis and optimization can use the following metrics:
Lifestyle changes and population growth affects the business because how many youngster and old age people. They have both have different lifestyle and unique taste for food so that it would give some benefit and disadvantage too.
Matching supply and demand is achieved at 3 levels. First, operations strategy is concerned with defining demand in terms of broad operations performance objectives related to aspects of stakeholder value, and with deciding on the general ways in which the operation will satisfy those demands (i.e. customization…). Second, operations design is concerned with a detailed specification of the products, processes, and staff needed to fulfil the strategy. Third, operations planning and control is concerned with the day-to-day operation of the process, adjusting to daily or weekly fluctuations in demand, or difficulties with supply. There should be a match between supply and demand in the following 3 areas: volume – the amount of the product that needs to be delivered. timing – when this product is available. quality – the specification and performance of the product in relation to customer expectations" (Bettley & Tantoush, 2007, pp.135-136). The Supply Chain Planning and Control business area enables you to manage your supply and demand planning, and control the material flow. Supply chain management is the main control and planned for all the products required of the market because they are in direct contact with customers, so the success of the companies and maintain customer satisfaction relied upon heavily. "The fundamental problem that faces many companies (not just those in fashion industries) is that the time it takes to source materials, convert them into products and move them into the market place is invariably longer than the time the customer is prepared to wait. This difference between what might be called the "logistics pipeline" and the customers' order cycle time is termed the "lead-time-gap". Conventionally, this gap was filled with a forecast-based inventory-there was no other way of attempting to ensure that there would be product available as and when customers
Supply chain is a very important concept in today’s world, it is very helpful in reducing inventories carrying, better sharing of information among the partners and planning being done in consultation rather than in isolation. The other benefits of SCM include lower costs, better customer service, efficient output etc. In the following paper we will discuss the importance and issues faced by supply chain management of a restaurant. If we talk about the supply chain management of Mc Donald’s we found that the objective of the company is to build such a supply chain where there is maximization of value to customers. The aim of the company is to bring food from cow to plate, in other words, the company is careful about every single details about how all the ingredients are brought into the restaurants. The company maintains such healthy relations with its suppliers that it does not even enter i...
At Kudler Fine Foods, we strive for quality and fresh products all year long. In order to maintain the good reputation of the company, it is necessary to address any area that needs enhancement and therefore, if needed, to implement a process improvement program that will help the company to make it better. Managing and optimizing inventories is probably one of the most difficult challenges that any food store faces. In the case of Kudler Fine Foods, it is very important to increase revenue and it is very important to ensure a high level of customer satisfaction.
In conclusion, the ability to accurately predict customer demand is at the heart of every company’s effort to achieve superior supply chain performance, and the way most companies evaluate forecasting performance tells them the magnitude of their error. The new challenge is to identify causes of the error or potential for improvement to sustain a highly productive and efficient supply chain.
Now as a store of fast foods we are in instant need of vegetables and other groceryrequirements as and when needed or required. This we will come to know through our Chefs such as the presence or absence of a part. Quick communication of the consumption of oldstock which triggers new stock to be ordered is key to JIT and inventory reduction. This saveswarehouse space and costs. In order to meet our requirements we will be having tie ups withVegetable Vendor and Grocery
Opportunity: Entry into Asian business sector like Pakistan, India and Bangladesh. - Market penetration in International nations. - Co-marking with other food brands. - Whole bean deals in grocery stores like.
Inventory management is the first line of defense for a restaurant in keeping their customers safe and free of food borne illnesses. Also this is a cost effective measure to ensure that you are receiving exactly what the distributor promised you when you placed your order. Taking into consideration the full operation of your restaurant nothing else matters unless you have a grasp on inventory management.