Askew’s Foods Versus WalMart Case Study

Running head: MANAGEMENT
Askew’s Foods Versus Wal-
Mart Case study

PRINCIPLES OF MANAGEMENT 1
Table of Contents
Part 1..........................................................................................................................................................2
a. Summary........................................................................................................................................2
b. Symptoms.......................................................................................................................................2
c. Major problems.............................................................................................................................3
d. Cause..............................................................................................................................................4
Part 2..........................................................................................................................................................4
References..................................................................................................................................................8

PRINCIPLES OF MANAGEMENT 2
Part 1
a. Summary
The case study discusses the problem faced by Askew's Food Inc., which is a grocery chain
of Canada. The scenario depicts that David Askew the CEO of this firm arranged board meeting
in October 2011 regarding the challenges faced by the business in terms of two external factors.
Salmon Arm Savings and Credit Union (SASCU) become the financial institution of this grocery
chain firm which faced the issue in giving the appropriate amount of funding for the business
(Lee & Tongarlak, 2017). The SASCU was planning to build a new branch and due to this
reason they were unable to provide proper funding to Askew's company. Another problem is that
Wal-Mart Stores, Inc., wanted to build super-center including the supermarket and for them, the
SASCU provided sufficient fund. These two situations have caused an adverse impact on
developing the new store of Askew’s Food Inc., and thus the board meeting was necessary to
overcome these conditions.
With the help of the board, Askew had overcome the issues and thus constructed a shopping
center and designed the store with state-of-the-art grocery (Payne & Niculescu, 2018). In order to
make market position, Askew innovated the facilities and departments of the firm. For
comparing with the elite supermarkets, a proposed cost has been made by the CEO which
become 1.5 to 2 times the cost of a standard supermarket. After reviewing the scenario, it is seen
that Askew’s Food Inc., was located in British Colombia and the business was founded in 1929
by Dick Askew (Cameron, Charlton, Ngan & Sacks, 2016). The company provides rural home
delivery products, mail orders, groceries and frozen food lockers for the people of this region.
The main strategy of the firm is to maintain the competition level with larger grocery chain
by maintaining consumer loyalty aspect in the marketplace. High-quality goods and competitive
prices enables the firm to maintain their position in the market, but after the entry of Wal-Mart
firm, they faced challenges in enhancing their business growth (Simpson & Power, 2016). Due to
the presence of Wal-Mart firm the Askew’s business growth has declined and for this reason, the
CEO wanted to develop new stores. The shopping store will provide huge benefit to Askew’s
firm in order to compete with Wal-Mart and to increase the business growth.