Brian Luzzi
Professor Hooker
1/29/24
Mercadona Case Study
1.
From the perspective of Mercadona, the “bosses” are the food stores customers. Mercadona values providing the best quality and products to its customers and that is why each customer is referred to as a boss. The “bosses” are the people that ensure that Mercadona is in business and that they can pay each of their employees. Without providing exceptional service to customers, Mercadona will lose all of their revenue to a food store that is willing to provide customers with a better experience. 2.
Mercadona’s company policy regarding bonuses is that the company must meet the company level target for any of its employees to receive a bonus. Juan Roig is seriously concerned in 2008 because he understands that Mercadona will not meet the company level target given the status of the financial markets in 2008. Roig believes that the companies’ employees have worked diligently, and status of the financial markets is uncontrollable. I understand and agree with Mercadona’s policy because if there is no incentive for its employees than they will not feel compelled to work hard. I believe that Mercadona should use the same policy but insert a clause that allows them to make exceptions for extreme circumstances like this one. 3.
From 1993 to 2008, Mercadona has differentiated itself from its competition by utilizing the total quality model. Within the TQM, Mercadona has instilled “always low prices” and a strong focus on continuous improvement. Through these avenues, Mercadona has been able to separate itself from a large portion of the competition and remain a successful marketplace. In addition, Mercadona has made efforts to reduce their environmental impact which can also help bring in customers that value the sustainability of the environment. In another example, Mercadona is committed to serving the community and making sure that living prices are affordable in the neighborhoods surrounding their stores. 4.
Mercadona has seen success regarding its business plan in various ways. Mercadona offers reasonable prices, unique innovation such as the first store to use bar code scanners, a wide range of products, employees with good product knowledge, unique store layouts that are convenient for customers and they build personal relationships with customers. Mercadona’s commitment to innovation and being effective with their product management and placement has also allowed them to build a strong business model compared to many other Spanish food stores. Through this many ways, Mercadona has formed an effective business plan that has allowed them to grow and be successful over many years. 5.
Mercadona’s supply chain management is in direct alignment with the policies it instills within each store. Suppliers are much more comfortable investing in Mercadona because of their beliefs in having stable products. In addition, Mercadona uses a large number of home-brand products which helps them build stronger personal relationships with each of their suppliers. Building a strong relationship with suppliers allows Mercadona to offer competitive pricing and keep unique items stocked in all of their stores. 6.
Employee engagement and satisfaction begin before employees are even hired at Mercadona. Each employee goes through a unique hiring experience that ensures they are the right fit to work at a Mercadona food store. Along with this, the management hierarchy is made up of all employees who once started at the bottom. Mercadona creates
