Foodco and the Beachland Market

Abstract

Purpose

To provide a case study with instructor's note to help students learn about the problems of possible closure of a business or other alternatives for the specific store from the points of view of management of the company, employees, town leaders and possible buyers of the store.

Design/methodology/approach

A large regional supermarket chain in northeastern United States which has European ownership is considering what to do about a small obsolete store in a beachfront community. The supermarket chain could close the store, refurbish it, build a new store, or sell the present store to employees of the store or sell it to competitors. The store is the only supermarket in town. Closure would have adverse economic impacts on the community, which concerns the leadership of the town. Management of the chain needs to consider these options. If management decides to close or sell the store, local employees of the store need to consider whether they should attempt to purchase the store if they can raise the capital needed to buy and refurbish the store.

Findings

Students must come up with solutions to the problems posed in the case. The instructor's note provides some possible findings.

Practical implications

This case will help prepare students to study such issues as closing a business, sale or other disposition of a business and the role of the community in such decisions.

Originality/value

This paper consists of an original case study based upon an actual experience of one of the authors in a supermarket facing possible sale or closure.

Citation

Grunewald, D.F. and Grunewald, D. (2006), "Foodco and the Beachland Market", Cross Cultural Management: An International Journal, Vol. 13 No. 3, pp. 219-229. https://doi.org/10.1108/13527600610683363