Annex 3_Business Case Part I

212053_66
Hugo Alexander Noguera Ortega
Alicia Estela Carranza Romo
Yerson Esteveens Munar Panqueva

Danilo Cardenas Erazo

27 de septiembre de 2023

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BUSINESS CASE TABLE OF CONTENTS
BUSINESS CASE TABLE OF CONTENTS.........................................................................................................2
1. CASE...............................................................................................................................................................3
Business needs.........................................................................................................................................................3
Case Background.....................................................................................................................................................3
Key stakeholders......................................................................................................................................................3
2. CASE REQUIREMENTS...............................................................................................................................4
Statement of requirements....................................................................................................................................4
Strategic alignment...............................................................................................................................................4
3. CONCLUSIONS.............................................................................................................................................4
4. REFERENCES................................................................................................................................................5

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CASE

BUSINESS NEEDS

Describe the current situation of the market where the Supermarket is part applying at least two tools of those

provided in the references of Unit 1

FODA:

Strengths:

 The supermarket is the most recognized in terms of price-to-quality ratio in Villa de Leyva

and its surroundings. Additionally, it benefits from a privileged location in the town center.

 Some of the products handled by the supermarket are of its own brand which have been

very well received and have been marketed in other markets in other cities such as Tunja

and Paipa.

Opportunities:

 The food and beverage market in Colombia is constantly growing, presenting an

opportunity for the supermarket. Furthermore, the supermarket could enhance its supply

chain and reduce costs through the implementation of information technologies.

 The diamond supermarket will be able to implement opportunities for improvement in

terms of the implementation of innovation processes having as emphasis the computer and

digital systems this in order to have the automation and systematization of these processes.

 Design of programs or methods more effective this in order to keep the customer satisfied

and to have high quality products.

Weaknesses:

 The supermarket lacks job manuals, guidelines, and/or policies, formal training, formal

contracts, and social security payments for employees. Additionally, communication with

customers is done through a suggestion box that no one reviews, and when there is an issue

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 with a customer, it must be escalated directly to Joaquín (who takes several weeks to

resolve the problem).

 The supermarket does not have a well-defined business organizational structure, where the
areas and functions are adequately established by employees from high command such as
management to small commands.
 The employees who work in this supermarket do not have the appropriate training and

skills to perform their functions, in addition it does not have an occupational health and

safety management system that allows it to ensure the safety and integrity of its

collaborators and mitigate the level of accidents in the company.

Threats:

 The entry of two supermarket chains into the municipality has significantly reduced the

profit margins of "The Diamond" supermarket. Moreover, some suppliers have ceased

working with the supermarket due to payment and logistics issues.

 Stop being the leading supermarket in the town, where customers prefer another that gives

them greater benefits and better-quality products.

 The state of health of Don Juaquin since he is suffering from an illness and for being the

only person in the supermarket who makes important decisions and gives solution to the

problems that arise.

Pestel:

 Political: The Colombian government has implemented policies to promote the growth of

the food and beverage sector, which represents an opportunity for the supermarket.

 The implementation of new rules, laws and decrees that affect the supermarket sector
including taxes and standards that they must meet.
 Constitutional instability and reforms carried out by governments become a threat to the
commercialization of supermarkets in Colombia.

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 Economic:

 The food and beverage market in Colombia is constantly growing, which presents an

opportunity for the supermarket.

 The price increase in products due to the high costs generated by transportation becomes a
problem for the economy of this sector as consumers choose to look for other alternatives
for their family basket.

Social:

 "The Diamond" supermarket is the most recognized in terms of price-to-quality ratio in

Villa de Leyva and its surroundings.

 The sociocultural factors influence a lot since they vary taking into account the preferences,

tastes, ages, opinions and tastes on the part of the consumers influences in the decision

making to buy their necessary items to meet their needs in the choice of this sector.

Technological:

 "The Diamond" supermarket has limited information technologies, which represents an

opportunity to enhance its supply chain and reduce costs.

 Implementation of new innovation programs that include the systematization of

supermarket processes and procedures, such as: computer programs, computer systems,

among others.

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CASE BACKGROUND

Describe the current situation of the Supermarket, such as main problems, numbers, technological changes, or

infrastructure changes, etc.

Competition: The entry of two supermarket chains in the municipality has significantly reduced

profit margins.

Operational Inefficiencies: The supermarket lacks manuals, formal training, contracts, and social

security for employees. Communication with customers is poor, and customer issues must be

escalated directly to Joaquín, resulting in delays in resolution.

Financial Issues: There is a cash flow deficit that threatens the supermarket's survival. Despite paying

salaries above the market rate, adequate health insurance is not provided to employees.

Regarding figures, detailed information on sales or revenue is not provided, but a loan of 400 million

pesos is mentioned, which was obtained to purchase land near the main warehouse.

Regarding technology, the supermarket has limitations in information technologies, presenting an

opportunity to improve the supply chain and reduce costs.

Regarding infrastructure, the supermarket is modern but oversized by 60%, with an inadequate

physical design. Additionally, it faces high costs for public services and taxes.

Organizational structure: The supermarket does not have an organizational structure which is

responsible for the hierarchical system to organize the personnel taking into account the competencies

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 and assign them to each of the functions to be performed within each department of the company in

order to have trained and trained personnel in each of the areas required in the organization.

Social security: The company does not have a social security system that supports the workers of the

company in case they get sick or suffer some type of work accident, since in this case the costs

generated by some type of accident or common illness must be assumed by don Juaquin which will

generate an extra cost for the Supermarket and losses for this and also not having workers affiliated to

an entity can generate legal problems with the Ministry of Labor and generate a total or partial closure

of the supermarket.

Suppliers: although the supermarket has been well received by consumers this could change because

the company does not have a program for the selection of its suppliers since they must meet certain

requirements that can guarantee consumers that the products they are acquiring are of good quality

and are backed by entities such as INVIMA.

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KEY STAKEHOLDERS

List any key stakeholders who are relevant for the situation of the Supermarket, whether internal or external,

such as those affected but not directly involved, for example a suppliers, an employees, etc. Also, imagine

which should be their requirements to keep making businesses with the Supermarket.

STAKEHOLDER REQUIREMENTS

Joaquín Pérez Duque The manager must have the skills in business administration or

positions to know how to handle any situation that arises in the

company, whether administrative, financial, operational this in

order to avoid losses in the company and adverse consequences.

Food and beverage suppliers The supermarket should improve its supply chain and reduce costs

through the implementation of information technologies.

Customers the supermarket should improve its communication with customers

and resolve issues more efficiently

Competitors the supermarket should improve its operational efficiency and

reduce its costs

Workers

The company must implement better working conditions for

employees that includes social security, formal contract, train staff

in order to have trained and trained personnel.

In addition, the company must select the personnel taking into

account the position to be occupied in the company and the

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 functions to be performed since it must be qualified personnel and

with the competencies according to the position.

CASE REQUIREMENTS

STATEMENT OF REQUIREMENTS

Specify the goals that the Supermarket must achieve to fulfill the business needs and being successful.

Operational Efficiency: The supermarket needs to implement manuals, training, contracts, and social

security for employees, in addition to improving its supply chain and reducing costs through

information technologies.

Customer Satisfaction: It is essential to enhance communication with customers, resolve issues more

efficiently, and offer quality products at competitive prices.

Market Competitiveness: The supermarket must enhance its operational efficiency and reduce costs

to effectively compete with the new supermarket chains in the municipality.

Financial Situation: To keep its business afloat, the supermarket needs to improve its cash flow and

reduce its financial deficit, ensuring the repayment of its loans.

Quality in the products: The supermarket must have suppliers that guarantee the quality of the

products that are being acquired in order to have high quality and accredited products.

Administrative efficiency: the increase in the productivity of the supermarket must be guaranteed

and the costs that are being generated by the bad management that has been carried out in the
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 supermarket must be reduced.

Technology and innovation: Allocate resources for the implementation of technological programs

that facilitate access to new markets and improve processes in the company.

STRATEGIC ALIGNMENT

Describe or propose strategic direction for the Supermarket according to the business needs: Mission, Vision,

Values

Mission: To offer quality products at competitive prices, providing a satisfactory shopping

experience to our customers.

Vision: To be the leading supermarket in Villa de Leyva and its surroundings, recognized for its

quality, variety, and customer service.

Values: Integrity, commitment, innovation, and social responsibility.

To achieve this strategic direction, "The Diamond" Supermarket should focus on improving its

operational efficiency, increasing customer satisfaction, competing in the market, and enhancing its

financial situation.

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CONCLUSIONS

In the context of the case study, according to the information of Business Case Part I, students include their

links of videos with the case identification from Activity 3 in the guide, also write on their own words a

conclusion of one paragraph of 100 words explaining the results for the Diamond Supermarket including the

following words in bold type: (1) Strategic diagnostic, (2) Market position, (3) Business case, (4) Strategic

management

1. 2.Video link 3.Conclusion

Student

name

Hugo https://www.youtube.com/watch?v=a5YVF9jShSs After conducting a comprehensive strategic

Noguera diagnostic of the Diamond Supermarket

and assessing its current market position, it

becomes evident that the supermarket faces

significant challenges, primarily stemming

from operational inefficiencies and

heightened competition. The business case

for the Diamond Supermarket underscores

the urgency to improve operational

processes, enhance customer satisfaction,

and address financial constraints. To

successfully navigate these hurdles,

strategic management must focus on

implementing a robust logistics model,

streamlining purchasing and storage

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 procedures, and fortifying its market

presence. By doing so, the Diamond

Supermarket can position itself for growth

and sustainability in an increasingly

competitive market

2. Alicia https://youtu.be/QygAl3DqCh0?si=Lt0lWV3aD7K3lnXw Once the strategic diagnosis of the

Carranza supermarket has been made, the day is

reflected in the analysis of the challenges it

has to achieve to achieve a better Market

position since due to the shortcomings that

it presents in its organization both

administratively, financially and

operationally it places many limitations to

achieve the objective set of having greater

reception by consumers and therefore

generate greater income.

In case business the supermarket the

diamond must allocate resources whether

human, technological and financial this in

order to verify the viability of the processes

and procedures established.

The manager of the supermarket Don

Juaquin must set new goals in terms of

strategic management and implement

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 competitive strategies in order to improve

its presence in the market above its

competitors in order to achieve success and

improvement in each of the failures

presented in your company and position

yourself in the market.

The strategic positioning of the

supermarket is one of the main alternatives

for business performance, since in addition

to allowing the supermarket to differentiate

3. itself from its competitors and give added

Yerson value to the products they offer, it responds

Munar https://youtube.com/watch?v=3PQqSh1VaEg&si=pShicZbnFhoXJgcS to the needs of buyers, leading to not only

to customer satisfaction, but also to achieve

a favorable customer perception for the

market position, and including product

loyalty, which today is a great challenge,

due to strong competition.

Strategic management can be worked on

the following essential elements:

Product: What we as a company can offer

so that their expectations are met.

Point of sale or distribution: The purpose

of the sales strategy distribution is to

provide potential customers with easy

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 access to the product or service and

provide a good brand experience in the

purchasing process.

Price: The margin we hope to obtain, what

target we want to position ourselves

against.

Promotion: These are all those marketing

and communication actions that we carry

out to disseminate the characteristics and

benefits of our product or service. This is

how we manage to increase sales.

REFERENCES

Use APA guidelines, make sure references are organized by the author's last name in alphabetic (A-Z) order

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 Krassimir Todorov, & Yusaf H. Akbar. (2019). Strategic Management in Emerging Markets: Aligning

Business and Corporate Strategy. Contemporary Corporate Strategies (pp. 225-259).

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