By David Clemmons
Being that Company Q is a smaller, local grocery store operating in a major metropolitan area, the demand to be innovative in ways that will allow them to grow is more significant than the current operating model. Current perceptions don’t allow companies competing in local markets to simply be in business for the sake of making a profit. Now, more than ever, smaller businesses hoping to succeed must constantly shift their business models to compete with that of larger companies. The smaller companies need to understand that being a part of the local society is an intrinsic part of doing business. Participation and community activism that supports the community is a crucial part of any small business’ growth and success.
Company Q’s current position paints a different picture. While the public may rely on companies for goods and services, the level of competition in smaller local markets allows customers to make decisions based on many factors, including, and not surprisingly, how much good a local company is supporting the community outside of it’s establishment.
Are they supporting locals schools, contributing to fundraisers, allowing local clubs to hang advertising in their establishments, even when it’s doesn’t promote the profitability
Company Q? By not doing so, Company Q isn’t being socially responsible. They’re exhibiting a lack of desire to be proactively involved in the community, which in turn would help them to grow and prosper.
Recommendations for Improving Social Responsibility
Company Q needs a better public image. While they might not be able to compete with the larger corporation head on, they can still thrive in a major metropolitan city and turn these losses into profits. 1) As stated, Company Q closed a coupe of stores in higher crime areas of the city due to losses in revenue. Theft, namely shoplifting at grocery stores is pervasive. Thieves get away with more than $35 million worth of goods each day, according to the National Association for
Shoplifting Prevention. (Forbes Magazine: Dec 2012)
While there will always be losses in any retail environment, were the losses incurred such that it warranted the closure of two stores? Were measures put into place that worked to prevent losses or were they simply written off to the cost of doing business.? There are measures that can be taken to lessen the hit to the bottom line. 1) Take stock of the items with the highest margin of loss and move them behind customer service. Making them harder to get too. 2) Place cameras and/or mirrors in areas with products people go after.
2) Create a…