Scenario Planning for Longos: In-Store Sales vs Home Delivery

Longos’ Value Proposition and PESTDL Factors

Part 1

Moving forward, should Longos focus their business on in-store sales, continuing with Grocery Gateway as is, or should they invest much more deeply in the home delivery model by automating much of the order fulfillment process

In order to answer this question, briefly describe Longos’ value proposition, including an analysis of the political, economic, social, technological, demographic, and legal (PESTDL) factors that influence the grocery industry. Do scenario planning around the primary question. Your scenario planning should develop 4 quadrants (worlds) based on the 2 factors that emerge as having the highest potential impact and that are difficult to predict (see the class slides for review).

1. Based on your analysis, describe each of the 4 worlds that emerge in terms of what kinds of activities grocery store shoppers will engage in in each world, and how they will interact with the stores.

2. Describe what kinds of jobs are important in each world, and describe what kinds of KSAOs/competencies would be critical for Longos in each world? What are the most important changes to KSAOs/competencies required in a shift from in-store sales to a home delivery mode 

3. Based on what you know about Longos’ strategy, is the company in a better position to focus its business on in-store sales or home delivery? Use what you know about Longos, as well as what you know about HR practices such as recruitment and selection to inform your response

Part 2 -

Longos pays slightly better than its competitors for in-store jobs, with a particular focus on paying cashiers above market for speed, courteousness, and accuracy.

In order to provide fast and efficient service to its customers, Longos uses the following to calculate its employee requirements:

Always required, regardless of hourly sales rates

1 store manager