Nature's Grocery and Walmart Grocery Case Study

Introduction

Nature's eGrocery is a small business entity designed to grow and become a market leader in online based sales of fresh fruits, vegetables, and grocery-related products. Currently, every business is transforming its operations by incorporating the technological aspects of globalization to widen its customer base and attract consumers from every group and platform in the community. With the growing consumer comfortable behaviours, Nature's grocery has decided to capitalize on this opportunity to launch a business that will offer grocery services online. Despite many companies failing to incorporate internet in their business, online platforms are still poised to support e-commerce retailing in a world where shopping behaviours are changing. Nature's eGrocery is designed to overcome challenges characterized by grocery stores by having an efficient distribution system and an easy-to-use website.

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Nature's eGrocery Objectives

• Design Nature's eGrocery as an international brand.
• Design an effective, user-friendly e-commerce website for the sale of organic fruits and vegetable products.
• Creating an infrastructure to fulfil online-based sales.
• Increase marketing campaign in a measurable and controllable market that drives consumers to the business website.

Mission Statement

Nature's eGrocery mission is to offer the finest products in natural supplements by use of the internet through an online platform which lowers consumer's cost involved in grocery retail stores. The business is designed to attract new customers and maintain our existing customers through a platform designed to capitalize on feedback to improve our services. By adhering to our mission, the business expects everything to fall into place and have services that exceed customers' expectations.

Key Competitors

Whole Foods, Walmart, AmazonFresh, Google Express, whole Farms, and Instacart.

Walmart Grocery

Walmart is among the biggest online grocery company in the world which offers the customer a chance to browse a wide assortment of their grocery products online and place an order. Though their platform, the customer is able to choose a designated store to place an order and visit and select a particular time frame to pick the order.

Strength

Brand strength attributed to global organizational size which allows the organization to withstand any threats despite challenges in its operations.

High efficiency in supply chain management due to advanced technologies for controlling and monitoring product.

Weaknesses

With a more diversified approach of business into other sectors such as stationary and clothing, it has a weakness strictly focusing on grocery and food business.

Despite its global business nature, it operates in very few countries around the world. Also, It is weak in some areas due to its huge span of control.

Nature's eGrocery ownership form of business

Partnership

The business will be owned through a partnership form of business with three partners who will have a legal agreement which sets forth the process of decision making. Through the partnership, the three members will decide how capital will be contributed, how the business profits will be shared, resolving disputes and any admission of future partners into the eGrocery business.

Tax Implication under the partnership: As a form of a partnership, the tax system does not categorize a business owned by two members as separate entities, instead they are categorized as "pass-through" tax bodies. Tax suggestion, therefore, ascribes that profits and losses of the business will be passed through to the three partners, who thereafter pay taxes based on the share of the individual partners on income tax returns.

Liability exposure: For the case of Nature's eGrocery, any damages or losses incurred in the business will leave the three partners of the business personally responsible and vulnerable. According to business law, every partner in this business will be equally accountable for any obligations and debts with no protection from the law. Under the corporate umbrella, the liability exposure affecting each member will be based on the extent a partner has invested in this small business.

Managerial ability: The managerial ability of the business will be based on voting among the three partners. However, another viable managerial strategy can be a resultant of partnership interests. In this case, a member having a larger business interest for instance 75% becomes an automatic controller of the business. In an online business such as eGrocery, capital to invest in the business is significant in deciding the main stakeholder in the business. The managerial ability is this case is described as "owner management."

Cost of formation: Grocery business is a worthwhile venture and starting such a business is easy without so much capital intensive. It is based on working with a good supplier with the right products for a good record keeping system. With online grocery, relevant business permits and registration are paramount, marketing fee, rent payment, Insurance fee, consultancy fees, and operational cost for the first few months, and storage hardware, just to set the business forth. In general, for a small online Grocery such as "Nature's eGrocery," in the United States, the overall cost will range from $25,000 to $50,000. This will comprise all the expenses from designing the business to having the business up running and operating fully as an entity.

References

Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.

Hand, C., Dall'Olmo Riley, F., Harris, P., Singh, J., & Rettie, R. (2009). Online grocery shopping: the influence of situational factors. European journal of Marketing, 43(9/10), 1205-1219