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Food Lion-Case Analysis

Categories: BusinessFoodLion

Food Lion LLC is an American grocery store company headquartered in Salisbury, NC, that operates approximately 1,300 supermarkets in 11 Mid-Atlantic and South Atlantic states as well as Tennessee, Kentucky and West Virginia under the Food Lion, Harvey’s Supermarket, Bloom, Bottom Dollar Food, and Reid’s banners. With approximately 73,000 employees, Food Lion LLC is the largest subsidiary of Delhaize Group. Delhaize Group is a food retailer headquartered in Belgium, which operates in seven countries. Delhaize Group was founded in Belgium in 1867.

The principal activity of Delhaize Group is the operation of food supermarkets in North America, Europe and Southeast Asia.

Supermarket News ranked Delhaize America No. 10 in the 2007 “Top 75 North American Food Retailers” based on 2006 fiscal year estimated sales of $17.3 billion. By cutting its overhead dramatically, Food Lion has been able to offer “everyday low prices” to consumers and still manage to reap some of the highest profits in the supermarket industry. Faced with a struggling economy and increased competition in the form of supercenter outlets, Food Lion has responded with some store closures and work force reductions, but has also sought to revitalize the grocery shopping experience through the introduction of a store concept called Bloom, intended to provide a uniquely convenient layout and competitive prices.

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Key Dates in the companies History

1957-Food Town is established in Salisbury, North Carolina.
1974:Belgian grocer Delhaize acquires Food Town.
1982:Company changes its name to Food Lion.
1986:Tom Smith, who started at the company in the 1950s as a grocery bagger, becomes CEO of Food Lion.

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1999:A new management team seeks to revitalize Food Lion.
2001:Food Lion becomes part of Delhaize’s umbrella company for its American holdings.

Case Analysis

The faced many challenges such as information technology (IT) in the managing financial records recently, with system audits and continuous failures. They broken many rules within the Sarabanes oxley act. The sarabanes Act which is also known as the ‘Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ‘Corporate and Auditing Accountability and Responsibility Act’ (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX, is a Unites States federal Law that set new or enhanced standards for all U.S. Public company boards i.e. food lion, management and public accounting firms.

The problems latter proved to be linked to inadequate timing in planning activates, and inconsistent level changes with corporate management. Outside of the above Food Lion faces many staying afloat in the technological advanced completion such as Wal-Mart. Struggling against many influcuations in the prices and bundling package deals. Food lions attempts to offers things that others don’t to set their standards apart with a recipe area and automated shopping list that can be sent to local providing retailers. Additionally, food lion offers retailers many different purchase options with the MVP card, which also, allows them; maintain records of the customers shopping habits and budget. Creating coupons suit the needs of certain individual shoppers has revolutionized the food retail industry. These marketing strategies are not original but nonetheless quintessential for their success. One of the most innovative situations that food-lion is the vendor diversity clause which is not only an anti-discrimination minorities but offers specials contracts with minorities.

Additionally, joining forces with exterior company guiding star, which a rating corporation for the products, services, and treatment proved by and for Food Lion. Along with Animal welfare survey and verification with produce and poultry products. They are known for deals and bonuses in the food industry. Food lion is known for sales and promotions, which as allegedly breaking the competition down to the lower deals to even remain marketable. Providing weekly sales on curtains products for a limited time only. Furthermore, offering Shoppers’ Companion online, which is where shoppers can offers suggestions and comments and concerns, i.e. management tips and unsanitary employees.

The new and improved MVP card issuing not only saving, but also saving star credits which generates real money on rebate and giveaway options. The MVP card also, has Tally register where the online system keeps account on how much you have saved with the card printable coupons from home. The company will re-open over 269 stores which all are going to include free grocery giveaways. Also, large charity donations and contributions to groups such as: boy and girl scouts of America, YMCA, Feed the children, Harvest Hope, and large donations of free food to may shelters and orphanages much of the public views the company as not just a supermarket but a savior. Currently the company has plans of expanding thought the central, and western regions of the United States, but first wish to stabilize their current stations and locations. Some recent news and talks of merging with some of the completion on the level

Conclusion

I conclude that even though the margin for change increasing along with customer demand shifting, Food Lion has done a great job to cope with inconsistent data recorded and observed. By offering more customer demand based products instead of consumer retail they has improved on revenue. They has stood by their actions scandalous and praiseworthy, from branch closing and violating of SOX act codes to donated billions and saving many small third world countries to hunger. Moreover, their strategy is a good one lower the prices give them fresher produce and improve the overall shopping experience, and they certainly have lived up to their promises and expectations. Many of these issues have been fixed by great change in management process for hardware, software database, and application groups. The company received a dully-awaited makeover in the past few years, which will surly; sustain them for decades to come. Food Lion has many pitfalls such as competitors, and technology, however overall with studious work ethics they will prevail and maintain.

Cite this page

Food Lion-Case Analysis. (2016, Oct 20). Retrieved from https://studymoose.com/food-lion-case-analysis-essay

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