The Fresh Market

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For “The Business Model” Slide: · The Fresh Markets financial results show a tangible manifestation (outward or perceptible indication) of a retail strategy that has worked over the past several years to appeal to a shopper looking for a specialty experience and specialty products. · Although The Fresh Market is often compared to Whole Foods, this comparison is only valid based upon the customer demographic shopping within the store. o Whole Foods is a more mature retailer that has achieved higher rates of saturation (the level beyond which demand for a product/service is not expected to increase) in its markets. o Both retailers are in a strong position. For the “Strategy” Slide: · The company has taken the following…show more content…
o Self-Management § Takes initiative to solicit performance feedback from others & intentionally develops opportunity areas, conducts oneself in a professional manner at all times. o Decision Quality § Identifies core issues when analyzing concerns, draws accurate conclusions based on data, & anticipates potential concerns & consequences. o Technical Skill § TFM places strong focus on technical skills & abilities. For the “ROIC & WACC” slide: · The industry average ROIC is 10.75%. · Whole Foods most recent ROIC is 12.57%. Therefore they are also adding value because their WACC is 8.75% which equals (12.57-8.75) 3.82%. · TFM is actually adding value at a better pace than WFM because its value added is higher than WFM. o Both companies have a competitive advantage · Kroger’s ROIC is 9.53% and their WACC is 8.38% which means that its value equals (9.53-8.38) 1.15%. · The Fresh Market is placed in Quadrant 2 because while they do have a competitive advantage their strategy appears to not be working. Their strategy has worked in the
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