Earth Café Case
The Earth Café, Deli and Natural foods was opened in Norman Oklahoma in 1969 starting as a store for bulk herbs and beans. After time they developed into an organic grocery store. In 1978 new owners took over the store and moved to a new location. They expanded the grocery business by offering more products, but still focused on natural and organic goods. With business going good the company expanded and opened another store in Oklahoma City in the mid-1990’s leaving the Norman location on the back burner. Around 1999 Richard Haas began working at the Norman location. Things were not good at the Norman location at this time, managers were falling behind on work, checks were bouncing, and food quality was decreasing. Richard …show more content…
They took the deal. Richard had the location growing and started a deli after customers seen him cooking his lunches in the back kitchen. Due to the growth, they added four new employees to meet the demand of the deli. Their space became too small for the demand of the deli so they took over a lease from a friends restaurant on campus corner. The Earth’s deli became a hotspot in the community and was packed for lunch every day. Because of the demand there was limited table space and wait times were getting too long so they moved to a bigger location again. The Earth operated as one business with two locations, one for the deli and one for a market with a small deli on the side. The company does have many strengths. They have become a hotspot in the community for their deli and have been one of only a few local groceries that offer organic foods. Being a small business Richard and Kate are able to handle the business tasks such as payroll and employee scheduling and human resource management unlike a large company who would have to hire employees to do the work. The stores also have a family feel because they are small. They also have a huge …show more content…
They started with their core grocery store and seen there was a market to use their grocery store products and create a product that is finished and has more value. Having the deli business allows them to have a greater return on product that simple selling the ingredients. Their grocery store has a 30% return while the deli boasts a 50% return. Their business level strategy is focus differentiation. They sell organic products. There are not many organic stores in their area so they are utilizing the niche in the market. People are willing to pay more for an organic product because they think it is healthier, whether or not that is true I’ll let you decide. The company’s control system is a mess. They are unstructured and have almost no technology system or any strategic plans either short or long term. In order for the business to be successful changes will have to be made. The biggest change will have to be the separation of the deli from the grocery. Different books will need to be in place and a record of every product the deli uses from the grocery will need to be recorded, which will also help with the deli running out of inventory. This will force inventory control. Employees need to be held responsible for their actions that don’t meet the employee handbook policy, no acceptations. If the financials force a closure of one of the business, the deli needs to be the main business. The deli makes a greater return on
The Earth Café, Deli and Natural foods was opened in Norman Oklahoma in 1969 starting as a store for bulk herbs and beans. After time they developed into an organic grocery store. In 1978 new owners took over the store and moved to a new location. They expanded the grocery business by offering more products, but still focused on natural and organic goods. With business going good the company expanded and opened another store in Oklahoma City in the mid-1990’s leaving the Norman location on the back burner. Around 1999 Richard Haas began working at the Norman location. Things were not good at the Norman location at this time, managers were falling behind on work, checks were bouncing, and food quality was decreasing. Richard …show more content…
They took the deal. Richard had the location growing and started a deli after customers seen him cooking his lunches in the back kitchen. Due to the growth, they added four new employees to meet the demand of the deli. Their space became too small for the demand of the deli so they took over a lease from a friends restaurant on campus corner. The Earth’s deli became a hotspot in the community and was packed for lunch every day. Because of the demand there was limited table space and wait times were getting too long so they moved to a bigger location again. The Earth operated as one business with two locations, one for the deli and one for a market with a small deli on the side. The company does have many strengths. They have become a hotspot in the community for their deli and have been one of only a few local groceries that offer organic foods. Being a small business Richard and Kate are able to handle the business tasks such as payroll and employee scheduling and human resource management unlike a large company who would have to hire employees to do the work. The stores also have a family feel because they are small. They also have a huge …show more content…
They started with their core grocery store and seen there was a market to use their grocery store products and create a product that is finished and has more value. Having the deli business allows them to have a greater return on product that simple selling the ingredients. Their grocery store has a 30% return while the deli boasts a 50% return. Their business level strategy is focus differentiation. They sell organic products. There are not many organic stores in their area so they are utilizing the niche in the market. People are willing to pay more for an organic product because they think it is healthier, whether or not that is true I’ll let you decide. The company’s control system is a mess. They are unstructured and have almost no technology system or any strategic plans either short or long term. In order for the business to be successful changes will have to be made. The biggest change will have to be the separation of the deli from the grocery. Different books will need to be in place and a record of every product the deli uses from the grocery will need to be recorded, which will also help with the deli running out of inventory. This will force inventory control. Employees need to be held responsible for their actions that don’t meet the employee handbook policy, no acceptations. If the financials force a closure of one of the business, the deli needs to be the main business. The deli makes a greater return on