Winn-Dixie Stores in 2005 (B): Cleanup on Aisle 11 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The firm started manufacturing its own products, reasoning that by owning more of the supply chain, it could offer less expensive alternatives to the customer. With manufacturing facilities and its new geographical focus, Winn Dixie attempted to ensure a place as a low cost provider with a national presence. Instead of enhancing the business's position in the marketplace, nevertheless, this strategy crippled both the short - and long-term prospects for Winn Dixie. The firm raised its leverage without ever understanding the synergies that were purposed and paid a high premium to expand. In fact, there were dis-economies of scale since the allocation, marketing, and managerial prices had climbed together with the increased sales.

The expansion and inefficient making added sophistication to its distribution network, and with less cash and a greater debt load, the company was not able to reposition itself in the marketplace when its low cost supplier strategy failed. Not only was the corporation unable to pursue other opportunity but it also did not have the cash to properly preserve many of its existing stores, which quickly became run down. Winn-Dixie was stuck at a time when the business was quickly evolving as a general grocer with few options. Following faulty strategies of growth, supply chain shifts, and increased debt, Winn-Dixie declared insolvency. These determinations would be crucial, as they changed what each lender category would receive and whether Winn Dixie could emerge from bankruptcy.

PUBLICATION DATE: October 01, 2008 PRODUCT #: KEL416-HCB-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

Winn Dixie Stores in 2005 B Cleanup on Aisle 11 Case Solution