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Analyzing the Safeway Business Model In a Time of Economic Change
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Analyzing the Safeway Business Model In a Time of Economic Change

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This is the presentation from a group project for my MBA class, Seminar in Organization Design and Change

This is the presentation from a group project for my MBA class, Seminar in Organization Design and Change


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  • Headquartered in Pleasanton, California, Safeway was founded in 1915, by MB Skaggs and is the largest grocery store chain in the United States and Canada. A strategic and astute businessman, Skagg’s was able to expand Safeway by meeting his customer’s needs while keeping prices low. In 1928, he listed Safeway on the New York Stock Exchange. The company was formerly known as Safeway Stores, Incorporated and changed its name to Safeway Inc. in February, 1990. As of 2009, Safeway had 1725 stores and 186,000 employees as of 2009
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    • 1. Safeway
      Analyzing the Safeway Business Model In a Time of Economic Change
      December 15, 2010
      Spencer Jaffe
      Debbie Kane
      Nadia Pelegouzova
      Vinay Prabhu
      Natacha Yarbrough
    • 2. Presentation Overview
      Introduction
      Safeway and Whole Foods Background
      Safeway SWOT/TOWS Analysis
      Whole Foods SWOT/TOWS Analysis
      Safeway Burton Analysis
      Whole Foods Burton Analysis
      Comparison and Recommendations
      Q&A
    • 3. Safeway vs. Whole Foods Background
      • Founded in 1978 by John Mackey and Rene Lawson
      • 4. Original name was “Saferway” as a spoof to its largest competitor
      • 5. Operates 302 stores throughout US and United Kingdom
      • 6. 54,000 employees
      Founded in 1915 by M.B. Skaggs
      Listed on New York Stock Exchange in 1928
      1725 stores and 186,000 employees
      Largest grocery chain in US & Canada
    • 7. Safeway SWOT Analysis
      Opportunities
    • 8. Whole Foods SWOT Analysis
    • 9. Safeway Burton Analysis – Goals and Strategy
      Efficiency/Exploitation
      A
      D
      Effectiveness/
      Exploration
      B
      C
      Efficiency/Exploitation:
      Technology
      Centralization
      Satellite
      Effectiveness/Exploration:
      • Private Label Products
      • 10. Services
      • 11. Subsidiaries
    • Safeway Burton Analysis - Environment
      Economy
      Complexity
      Competitors
      A
      D
      Unpredictability
      B
      C
      Government
      Consumers
      Unions
    • 12. Safeway Burton Analysis Configuration and Complexity
      A
      D
      B
      C
      Complexity - Flat
      Configuration – Hybrid
    • 13. Safeway Burton Analysis People, Task, Coordination and Control
      Number
      Divisibility
      Formalization
      A
      D
      A
      D
      A
      D
      B
      B
      B
      C
      C
      C
      Professionalization
      Repetitiveness
      Decentralization
    • 14. Whole Foods Burton Analysis
    • 15. Safeway Burton Analysis Current State
      Efficiency and Effectiveness
      Analyzer with Innovation
      Turbulent
      Hybrid
      6) Factory
      7) Machine
      8) Complicated
      B
      D
      A
      C
      5) Flat
      Goals
      Strategy
      Environment
      Configuration
      Complexity
      People
      Coordination/Control
      Task Design
    • 16. Safeway - Recommendations
      7) Clan
      7) Machine
      4) Hybrid 4)Matrix
      5) Symmetric
      B
      D
      A
      C
      Goals
      Strategy
      Environment
      Configuration
      Complexity
      People
      Coordination/Control
      Task Design
      5) Flat
    • 17. Force Field Analysis
      Desired State : Matrix, Symmetry, Clan
      Restraining Forces
      • Cultural Adjustments
      • 18. Implementation Costs
      • 19. Lack of Stakeholder Buy-In
      Current State: Hybrid, Flat, Machine
      • Address Competition
      • 20. Empowering Employees
      • 21. Increase responsiveness to local markets
      • 22. To accommodate Turbulent External Environment
      Driving Forces
      Impacted steps: Structure ( Configuration & Complexity ) & Co-ordination & Control (Culture)
    • 23. Q & A

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