Supervalu Inc.: Case Study: Supervalu Inc.

Decent Essays
Overview
SUPERVALU Inc. was the nation’s leading food distribution company (as of 1999) and the 12th largest food rate retailer with annual sales of $17.4 billion and 50,000 full and part-time employees, servicing 4400 independent retail stores in 48 states, 345 corporate stores, and 772 limited assortment stores. Supervalu’s stated mission was:
“To be a world-class distributor and retailer of food, pharmaceuticals, and general merchandise via grocery driven business.”
While their corporate philosophy centered around exceptional customer service. With the philosophy and mission in mind, SUPERVALU developed a new, innovative business system integrating their core business functions that revolutionized business practices in their industry and
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First notable issue stems from prior recruitment/training efforts of college graduates where the ineffectiveness of those programs may have contributed to a lack of buy-in which is necessary for the launch of a new internal program. Additionally, the lack of foresight into the length of the development of the PDP sends a similar message regarding the ineffectiveness of new internal training programs. Another issue is that Paul Cimmerer expects the PDP to bring about several benefits and address several needs making the scope of the PDP much larger and more intricate and that several aspects have to be managed carefully and closely. Notably, the internal announcement of the PDP listed benefits in recruiting/retention of college graduates, building leadership capability, saving money, and assisting in diversity …show more content…
The decision to create the PDP was given based on Paul Cimmerer’s boss stating a need of getting entry-level people in the core business units instead of by reviewing the core business units’ needs and acting upon them accordingly. SUPERVALU’s recent history at the time had been of massive growth through mergers and acquisitions as well as the integration of business systems. A needs analysis may point out certain weaknesses that may hinder the development such as the fact that the Retail business unit had to drop out in mid-development of the PDP. Furthermore, with these mergers and acquisitions and integration of business units, focus should be put on developing the PDP around SUPERVALU’s mission and philosophy. The rotational aspect of the program does well to facilitate the integration of SUPERVALU’s business units, yet Exhibit 7 shows career development to be straight lines rather than allow employees in lower-level functions to pursue career paths in the other business areas. For example, the career path in category management begins with the tech buyer and ends with a straight line to vice president of category management although a participant in the PDP may spend time in distribution or wholesale marketing. If the career paths were interdisciplinary, participants in the

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