Ahold Has A Company Wide Business Model Marketing Essay

Ahold Has A Company Wide Business Model Marketing Essay Ahold has a company-wide business model, it works with profit. This model helps to drive the strategy. The model consist a virtuous circle that helps Ahold to work on lower cost to invest in price, value and the products and services they give. By means of this circle it helps to raise the sales, win new customers and new capital for the further grow of the business. That the circle has been a success is proven in 2003 there was a successful repositioned of all the business. To the repositioned Ahold increased the value and service that they provide the customers. From 2003 until 2008 Ahold was able to decrease the cost and made a reserve from à ¢Ã¢â‚¬Å¡Ã‚ ¬ 800 million across our businesses. 1. Structure Ahold operates from two continental platforms, Ahold Europa and Ahold USA, both of the continental are led by a Chief Operating Officer. The structure helps Ahold to balance local, continental and worldwide decision-making. Ahold Europa consists of Albert Heijn, Etos and Gall Gall in the Netherlands. Albert/Hypernova in Slovakia and the Czech Republic. Each operating company in Europe, has a manager who repost all the necessarily things to the COO of Ahold Europe. Ahold USA is organized into four little retail companies: Giant-Carlisle, Giant-Landover, Stop Shop New England and Stop Shop Metro New York. Each company has his own divisional president who reports to the CEO of Ahold USA and this reports back to COO of Ahold USA. Ahold has also a 60 pro cent of interest in ICA AB (Swedish retail) and also 49% interest in Jerà ³nimo Martins Retail. org_structure_diagram 2. In Amsterdam are Aholds international headquarters based. Corporate Centre is responsible for the Group strategy and functions that support the business with contains the strategy office, interneal audit, legal, compliance, insurance, human resources, communications, corporate responsibility, mergers acquisitions and information management. Ahold has also a Corporate Centre located in The United States of America and Switzerland. Systems Corporate Executive Board managed Ahold, They get supervised and advised by a Supervisory Board. The diagram bellows shows the governance structure of Ahold and also its companies. These companies are answerable to the General Meeting of Shareholders. Ahold is structured to execute its strategy and to balance local, continental and global decision-making. Ahold consists of a Coporate Center and operated from two platforms, Ahold Europe and Ahold USA. Both platforms contains a few of companies. The Diagram bellows shows the governance structure of Ahold and its companies. 3. Shared Values All of the companies who belong to Ahold share the five common values who divine how they are, what is important to them and how they do things. These values are Putting the customers first Doing what is right Loving what we do Making ideas happened Getting better every dag Style If you work at the Albert Heijn you must work hygienic and also quality and safety are very important, not only for the employees but also for the customers. Knowledge about the products albert Heijn sales is also very important. If customers have questions then you muss advise them. You work together in a team, so the atmosphere must be good. A good atmosphere in the company is very important for the enthusiasm and productive of employees. The atmosphere at Albert Heijn is very good. They also organize activities to improve the working atmosphere. Staff In 2011 there worked 213.000 employees. Ahold comprise a diverse group of employees they are working in a lot of countries. Underneath all of the employees there are numerous of different nationalities. At Ahold it is very important that at each level of the organisations some diversity is valued, this is a part of a business culture. Diversity is a very important factor at each discipline of the company and it regarded as hole to our success. Our focus is that every employee had a honest change to improve their selves both personally and professionally. At Ahold they strive to have a diversity of employees. Ahold is going to work at mobility for all the employees and a good workface that is a reflection of the customers we serve. All employment decisions are with agreement of fare opportunities. They look at the competencies of the new employees and not at the race, colour, religion, sex, age, disability or national origin. At Ahold everyone has a change. Skills The skills and competencies of the people working in the stores are basic, almost everyone can work there. The managers who manage the stores are most of the time older and they have more experience. The employees who will work for Ahold need a lot more skills and competencies. Employee development is a key priority for Ahold. Ahold has a Leadership Academy in partnership with Harvard Business School and Oxford Universitys SaÃÆ' ¯d Business School and also a Retail Academy run in partnership with Cornell University. Five Forces Model of Porter Ahold is based in the Netherlands and is an international retailing group. They operate in a lot of formats and channels but there core business is selling great food and supermarkets. Ahold has 14 brands in Europe and the U.S. In this chapter you can find an analyze of how the company is positioned in the branch because Ahold has so many companys we just use for this analyze only Albert Heijn. http://notesdesk.com/wp-content/uploads/2009/04/porters-five-forces-model.jpg For this analyze we use the Five forces model of Porter which you can see in the figure opposite. With this model you can see an overview of the industry rivalry viewed from four different points of view. 4. Threat of new entrants In Europe the supermarkets do not have a lot of threats of new entrants. It is very hard for entrepreneurs to start a new supermarket because when they do start a new supermarket the other existing supermarkets lower the sales price of their products. The new supermarket is not able to lower their sale price because he has more production costs and initial costs than the already existing supermarkets. Bargaining power of customers Customers are a threat for the Albert Heijn. When the customers are pleased about the supermarket they will buy their products an come back every time they need to buy groceries but when Albert Heijn sells products that the customers do not like, they will go the another supermarket. For example: Albert Heijn sells the product COCA Cola. Albert Heijn wanted to save on the cost price of their products so they called COCA Cola. Albert Heijn demands a discount on the cost price of 2%. COCA Cola did not accept that so they stopped to deliver their product to Albert Heijn. After a few weeks the customers complained a lot and the did there grocery shopping in another supermarket where they did sell COCA Cola. Within a month the Albert Heijn did sell COCA Cola again and they were paying the original cost price. Threat of substitutes There are not a lot of threats of substitutes for Albert Heijn. One of the threats are the restaurants. When people eat at a restaurant they do not have to buy grocery for diner. However most of the people do not eat constantly in a restaurant and when they do, they have to buy grocery for the rest of the day. At the Albert Heijn you can buy almost every brand from expensive till the cheapest brands. Most of the brands are also sold in the other supermarkets in the country. So for the substitutes the consumers do not have to go to another supermarket. Bargaining power of suppliers The suppliers do have a lot of bargaining power when they are with a lot of different suppliers as a group. For example Albert Heijn in the Netherlands lower the purchase price to lower their costs. The suppliers did not agreed with this and take action against the Albert Heijn. The suppliers won so the Albert Heijn needs to pay the original price. One supplier has not a lot of bargaining power and he just basically has to do whatever the Albert Heijn wants. Acknowledgement Sources 7-S Framework https://www.ahold.com/#!/Our-strategy/Business-model.htm https://www.ahold.com/web/show?id=88494langid=42from=to=webid=26098searchid=88696keyword=core+value#!https://www.ahold.com/About-us/Our-vision-values.htm http://www.annualreport2009.ahold.com/group/our_strategy/organizational_structure.htm https://company.info/id/350003630000 http://werk.ah.nl/winkel/kwaliteitsmedewerker.jsp https://www.ahold.com/web/show?id=88494langid=42from=to=webid=26098searchid=88696keyword=core+value#!https://www.ahold.com/About-us/Our-vision-values.htm Image 1: https://www.ahold.com/#!/Our-strategy/Business-model.htm Image 2: http://www.annualreport2009.ahold.com/group/our_strategy/organizational_structure.htm Image 3: 2011yearreview.ahold.com/downloads/Ahold-Full-AR-2011.pdf Sources Five Forces Model of Porter https://www.ahold.com/web/show?id=88494langid=42from=to=webid=26098searchid=88696keyword=core+value#!https://www.ahold.com/About-us/Our-vision-values.htm Image 4: Porters Five Forces Model