Earth's General Store Executive Summary

Earth’s General Store (EGS) has been around for 20yrs and since the addition of the second location located downtown, the company is struggling financial. Kalmanovitch’s vision and the future of the original Whyte Avenue store were both in jeopardy” (Paulitsch et al., 2017). Kalmanovitch has asked for help to identify issues that are preventing the company moving in a profitable direction. First, we analyze the income statement (Exhibit 1) and provide a recommendation to improve profits and sustainability. Second, we provide a Balanced Scorecard and Strategy Map identifying some strategic objectives and measures. Finally, we identify three management tools that will improve EGS future.

Part 1 – Income Statement Financial Analysis

A) Looking

The expenses are growing faster than revenue coming in and this will not last for any business. Employee headcount reduction would be the fastest way to reduce costs, but this may pose challenges from an HR perspective with morale and performance with productivity.

Lastly, I would renegotiate with suppliers looking for better product costs and that may also mean finding new suppliers.

Part 2

A) Balanced Scorecard

“A balanced score card measures the organizational performance across four different but linked perspectives that are derived from the organizations’ mission, vision, and strategy” (Atkinson, Kaplan, Matsumura, & Young, 2012). Here we look at how financial success can be measured by the owners, how to grow and retain customers, improve operational efficiencies, and increase employee morale and productivity.

Earth's General Store

Mission

- Do as little harm as possible and leave the world better than when we arrived.

Vision

- Advocating for environmental and social sustainability by offering products that lessened citizens' impact on the plant.

Strategy

- Operate several small stores throughout Edmonton's food desert areas.

Balanced Scorecard - Earth's General Store

Perspective

Strategic Objective

Associated Measures

Financial

Grow revenue

- Sales volume

The strategy map below walks us through the casual relationships of the objectives that link to EGS’s Mission, Vision and Strategy.

Part 3

Here are three Management Tools that would have the greatest impact for Earth’s General Store.

o Measuring and Managing Process Performance focuses more on the marketing, selling, distribution and administrative expenses. Reaching customers through many different channels, typically these expenses are incurred with selling products. This process will directly link priorities to the Balance Scorecard and Strategy Map. In addition, this process looks at both financial and non-financial metrics for customer