Askew’s Foods Versus Wal-Mart

This assignment discusses the impact of building a new Askew’s store in a better developed uptown area and the competition with Wal-Mart. It also covers the strengths and weaknesses of both companies and the response of Askew to Wal-Mart’s interest.

Running head: ASKEW’S FOODS VERSUS WAL- MART
Askew’s Foods Versus Wal-Mart
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Author note

1ASKEW’S FOODS VERSUS WAL- MART
Cause
This particular assignment is about the building of new Askew’s store in a better
developed uptown area which will have an impact on the amount allotted for financing. David
Askew, the chief executive officer of the company had assumed that his costs will be slightly
higher than the normal market price which was actually moderate according to him. But the
company had faced challenges and the amount exceeded the expected budget. His expectation
about the amount was that it would be higher y one- third but it actually came out to be 1.5 to
two times higher. This was a serious problem for the company as the banker and board were
aware of the time that would be taken o repay the increased amount. Moreover, the company did
not even have high gross return as compared to the rest of the industry. The main problem was
that the family members of Askew were worried of the negative impact that will be imposed on
their company and the proposed building plan in a more developed area. David was experienced
in local business and he was aware of the outgoing cash flow in the grocery sector to the
neighbouring markets of Wal- Marts (McEachern, 2017).
The Askew Company had faced strong competition in Salmon Arm from two notable
grocery stores. Out of Safeway and Overwaitea, the latter was considered as the strongest
competitor of Askew. It was a well established food chain as compared to Askew and they were
planning to build new stores too. To keep up with the competitive advantage, Askew also
followed their path of opening new stores in the developed area. The problem in the exceeding of
budget was caused as the company did not pay attention to the fact that their competitor was
more established in the market with high return. They should have considered the negative
impact that it would have on the company’s reputation before proposing the plan. In future, they
should be more attentive towards increasing their sales rather than running in the competition.
Also, the other competitor, Safeway did not reinvest in their store which caused a problem to
increase their sales. The problems of winning over the competitors is not easy therefore the
company should pay attention to improve and modify their own system before participating in
the huge market of competition they need to look into this important fact for their future
operations (Saunders, Guenther & Driver, 2013).
Answer 1

2ASKEW’S FOODS VERSUS WAL- MART
Strengths
The internal and external forces of these companies
are significant in the strategic development of the
company in the retail industry. Their global size,
supply chain and high efficient are a strong factor
for their expansion.
Weaknesses
The weaknesses of thin profit margin are directly
related to the generic strategy of the company. As
they use cost leadership generic strategy therefore
they also have to follow the outcome of easily
imitable business model.
Source: (Malach & Malach, 2016)
Answer 2
Askew can respond to Wal- Mart’s interest by mentioning that their business was thriving
well in the market but there is threat from the powerful new low- cost competitor in the market.
The CEO had researched and explained that in a geographic market the most adverse impact is
faced by the supermarkets and general merchandise stores.
Answer 3
The entry of Wall Mart will have a significant impact on the position of Askew in the
market. The experts believe the entry of a global brand like Wall Mart will lead to a business
decline of around 10% to 40%. There will be a serious question on the survival of the different
small stores and small chain stores as because they offer the same kind and same range of
products like Wall Mart. The downtown location of Askew is just within the range of 2.5
kilometers from the latest Wall Mart stores and thus the impact will be severe (Gustafson et al.,
2013).
Answer 4
There are some unique factors that need to be addressed by the competitors to sustain in such
a market.
a. Green Operation- The most important task of the business organizations is to aim for
sustainable energy sources and reduce the use of non renewable sources of energy

3ASKEW’S FOODS VERSUS WAL- MART
b. Energy Recovery- The companies must stress for energy recovery and reduce the use and
consumption of the existing energy sources.
c. Focussing on Community- Another main task of the organization is to engage themselves
in different community based programs to fulfill their Corporate Social Responsibilities.
Answer 5: To me a new building with state of the art facilities can be beneficial to the success of
the company as because it will help the organization to increase its brand value. The presence of
a number of stores will enhance the profit of the organization (Askew, Beisler & Keel, 2015).

4ASKEW’S FOODS VERSUS WAL- MART
Reference
Askew, O. A., Beisler, J. M., & Keel, J. (2015). Current trends of unethical behavior within
organizations. International Journal of Management & Information Systems
(Online), 19(3), 107.
Gustafson, A., Christian, J. W., Moore, K., Lewis, S., & Jilcott, S. (2013). Food venue choice,
consumer food environment, but not food venue availability within daily travel patterns
are associated with dietary intake among adults, Lexington Kentucky 2011. Nutrition
journal, 12(1), 17.
Malach, R. L., & Malach, S. E. (2016). ASKEWS FOODS vs. WALMART: SUSTAINABLE
DAVID vs. LOW COST GOLIATH. In ICSB World Conference Proceedings (pp. 1-6).
International Council for Small Business (ICSB).
McEachern, M. G. (2017). Driving Circularities in the Food Supply Chain: The Sustainable Role
of Alternative Food Retail Enterprises (AFREs).
Saunders, C. M., Guenther, M., & Driver, T. (2013). Sustainability trends in key overseas
markets to New Zealand and the KPI identification database.