C&C Grocery
C&C
C & C. Grocery
Do you think that the proposed reorganization will work in addressing the four problem areas identified in the case? Why will it or why won't it work?
The proposed solution is as follows: the consultants for C&C Grocery Stores, Inc. intend to unify the control over the store under a single district manager. At present, control is diffuse, and every worker in the produce department reports to a produce manager, every meat employee to the meat manager, and so forth. The consultants also hope to expand non-grocery items in inventory to improve store sales. However, this plan does not address the first, fundamental problem of C&C -- its obsolescence.
C&C does not fill any real niche in the competitive grocery market. Big box discount stores like Costco and Wal-Mart are making inroads into its core consumer demographics of budget-minded shoppers. Proposed IT changes are on 'the back burner' yet it is because of innovations in IT that stores such as Wal-Mart can keep low inventories with high levels of consumer satisfaction. Only 10% of space is used for inventory at Wal-Mart stores: "Part of Wal-Mart's strategy for catching up was a point-of-sale system, a computerized system that identifies each item sold, finds its price in a computerized database, creates an accurate sales receipt for the customer, and stores this item-by-item sales information for use in analyzing sales and reordering inventory. Aside from handling information efficiently, effective use of this information helps Wal-Mart avoid overstocking by learning...
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