Conclusion

This blog was based on ShopRite Supermarket but more so on Wakefern Food Corporation; the parent company of ShopRite.

Throughout this blog we focused on the strategy of Wakefern which was low cost and bottom line. Apart from this we discussed the major business initiatives which noted better customer relations and its IT organization was that of the top-down silo. Wakefern was also described as being ‘wait & see’ adopters. Other aspects of its strategy mentioned in the blog includes E-commerce, business models, marketing mix and payment systems.

With regards to technology the database was identified as using Microsoft SQL software. The blog emphasized the use of online analytical processing, data mining techniques and software including SAS. In addition we looked at the hardware chosen by ShopRite which included Dell brand computers, some software identified included the Microsoft XP operating system and the Network chosen was the AT&T Wide Access Network. The four principles of network security and Wakefern’s application of these were in turned mentioned along with two of their domain names (wakefern.com & shoprite.com)

In conclusion this blog encompassed how an organization, in this instance Wakefern Food Corporation/ ShopRite Supermarket uses management information systems whether it is for strategic planning, day to day operations or managerial purposes.

Technology

A file is described as a collection of related records. In Wakefern some files include Employee Files, Customer Files, Distributors and Individual Store Branches to name a few.


A database is a collection of information that you organize and access according to the logical structure of that information. The database software used by Wakefern/ ShopRite is the Microsoft SQL software. At Wakefern the database administrator is responsible for the database. Presently Mr Bill Keba is the DB2 Database Administrator at Wakefern Food Corporation.

Managers get reports by using an application called “Report Manager” which was designed to work compatibly with the Microsoft SQL server. Report Manager is a Web-based report access and management tool that allows an administrator to access a single report from a remote location over an HTTP connection, It can also be used for its report viewer and navigation features.

Online Analytical Processing (OLAP) is the manipulation of information to support decision making. This is present at ShopRite as information collected and stored in the database is used later on in decision making. One such example is data from sales of items at store locations help managers decide pricing, reordering, advertising and even minute details as product layout in the aisles.

A Data Warehouse is a logical collection of information gathered from many different operational databases used to create business intelligence that supports business analysis activities and decision making tasks. Wakefern’s Data Warehouse has an implemented SQL tool to make queries. Wakefern also uses Data Marts; these are subsets of a data warehouse in which only a focused portion of the data warehouse information is kept. Examples of this includes 1) In the Wakfern data warehouse there is s ShopRite data mart which contains information only pertaining to ShopRite’s activities and does not include any information about other supermarkets that Wakefern owns. 2) Another further example is within ShopRite there is a data mart containing only Customer Relations information which would not include other information such as purchases and thus will not be accessible by a customer relations employee.

Data-mining are software tools that is used to query information in a Data Warehouse; which support the concept of OLAP. For data mining Wakefern/ ShopRite utilizes SAS which gathers information about customers which is then used by marketing to efficiently and effectively target customers and potential customers. Data Mining is conducted by Data Analysts; commonly referred to as a Data Miner who analyze data to detect relationships that have not been discovered.

Hardware consists of the physical devices that make up a computer such as the keyboard or mouse. All hardware fall into 6 categories 1)Input devices; which are used to enter information and commands. 2) output devices; which are tools used to see, hear or otherwise recognize the results of your information-processing requests. 3)Storage devices; tools used to store information for a later time. 4) Central processing unit (CPU) which interprets and executes software instructions and coordinate the operation of all other hardware. 5)Telecommunications device; used to send information and receive from another person or computer in a network. 6) Connecting devices which are used to connect peripherals to the computer.
At ShopRite all of these categories are used; Input devices are present in the form of items scanners at the check out, the register’s keyboard and for the management the computer keyboard and mouse. Output devices are the monitors, the register’s receipt printer and for the management printers and speakers. All of the computers used at ShopRite possesses a CPU. Storage is done via hard-disks and online storage. ShopRite has a very extended network both within the store and also with Wakefern; their parent company. DSL modems, routers, telephones and internet has made this possible to connect the PC’s to one another. Connecting devices are used to connect peripherals to the computers such as the registers, scanners, printers, monitors and mice to name a few.


The brand of computers used at ShopRite is Dell. These were chosen as Dell offered easy customization and they were low cost. Also ShopRite uses Dell as this is the choice of their parent company Wakefern and having the same physical computers would ease synchronizing computers such as with networking, using and implementing programs across the companies. (This would be much more difficult if one company used Dell and another Apple). The Dell computers chosen were flat panel desktops. The flat panel was chosen for is sleek look and slim design as it requires less space and looks more tech savy than a standard sized desktop. This is connected to the tower which is not seen by customers; what we see rather is the cash register peripheral and the scanner which is also attached that inputs data into the computer.
In the case of ShopRite Wakefern’s IT department is responsible for the hardware and software used by ShopRite. This is because Wakefern/ShopRite uses the Top-Down Silo approach; thus the IT department is separated from the rest of the organization and makes all decisions technology related.

Software is described as the set of instructions that hardware executes to carry out a specific task. System software refers to software that handles tasks specific to technology management and coordinates the interaction of all technology devices.The most notable system software is the operating system which is the Windows XP software (Maybe they might switch to Windows 7). Application software is that software that enables you to solve specific problems or perform specific tasks. Other types of software includes Tradestone Merchandise Lifecycle Management suite which is used for the stores private label making. (ShopRite brand). TALs ActiveX Barcoding tool which is used to make barcodes. They also use Multi-language inventory software. Notable software also includes the program we see at the register and also downloadable software for consumers; called ShopRite 1.0 Mobile which is a simple interface accessible from a mobile device that is used to manage your shopping list. The most used brand of application software is Microsoft as it is compatible with the Microsoft OS and database.
I could not find any indication that the company uses Linux but it could be possible.

A computer network is two or more computers connected so that they can communicate with each other and share information, software, peripheral devices, and or processing power. At Wakefern there is a four year contract with AT&T that provides wide area network (WAN) and managed services solutions. With this AT&T will connect Wakefern's 250-plus domestic stores and corporate offices.
Each computer needs network interface, at Wakefern Food Corporation is is unclear as to what type of interface is used, however at the ShopRite Supermarket locations they utilize ethernet cards which is the most common type of network interface card.


With regards to media as part of their contract with AT&T they used Digital Subscriber Line or DSL cables, which is used together with a Wireless Access Point (WAP) to access the network wirelessly.
Communication software is used to provide remote access to systems and exchange files and messages in text, audio and/or video formats between different computers or user IDs. An example of this is file transfer programs; at Wakefern they utilize an IP-based TPS/NetWork File Manager.

At Wakefern due to AT&T they utilize a Multiprotocol Label Switching (MPLS) network with DSL backup. The related components include a Switch which is a network device that connects computers and passes messages by repeating each computer’s transmissions only to the intended recipient. Also they have DSL cables and Routers for wireless networking.

To connect to the the internet they use a Broadband Connection via DSL which runs a high speed connection over a phone line without interrupting the voice service. AT&T the DSL Broadband has a max speed capacity of 768 kilobits per second. (768 kbps)

Voice over IP is not currently in use at Wakefern/ ShopRite. The Internet Protocol (IP)-based network satisfies corporate and networking demands, such as interoffice collaboration and it will provide scalability for the future implementation of Voice over Internet Protocol (VoIP)

The Four principles of network security are (1) Confidentiality - information can only be obtained by those authorized to access it.. (2) Authenticity - information really comes from the source it claims to come from. (3) Intergrity - information has not been altered and (4) Availability - a service or resource is available when it needs to be. Wakefern uses CounterACT integrated security platform which is to shield its network from unauthorized access and fulfill a key part of Visa's Cardholder Information Security Program (CISP) certification. CounterACT also offers an integrated security platform permitting network administrators to block/quarantine malware and create/enforce granular access policies for all endpoints in conjunction with the existing network element, an essential aspect of fulfilling data security requirements for regulatory compliance. This security is extended both to employees at Wakefern as well as customers; this can be seen exercised in areas such as log in information, credit card & online payment information, firewalls, antivirus and anti spyware services to name a few.

Wakfern Food Corporation owns 14 domain names two of which include SHOPRITE.COM & WAKEFERN.COM


Article
Microsoft News Center January 14th 2008
MediaCart, Microsoft and Wakefern Team Up to Deliver Next-Generation Digital Grocery Shopping and Ad Experience


Wakefern Food Corporation, Microsoft Corporation and Media Cart Holdings have come together to design a shopping cart which can be described as revolutionary. The Media Cart (pictured right) was created using Microsoft’s Atlas technologies, Microsoft Windows CE and the Microsoft SQL Server. The purpose of the cart is to target customers with anonymous advertisements by using data obtained through its customer loyalty program. Besides being a marketing tool the cart is meant to boost consumer satisfaction by offering options including electronic coupons, performing comparative price checks, viewing recipes and expediting check out to name a few.

Full Article HERE

ShopRite's Business Strategy

Business Strategy
ShopRite uses the low cost business strategy to help them maximize their profit. They go about this low cost strategy in many ways. They have all the name brands that they sell in the store at a more reasonable price, but then they also sell their own ShopRite brand of many popular brands. Then they also reduce their spending cost by searching for the best products at the lowest prices. They have recently implemented a self check out lane for customers who don’t want to wait and those longs lines. This also reduces the cost for them because then they wont have to hire more employees to work the register. These are just some of the ways ShopRite sticks to their low cost strategy and how they go about making the most profit with their business.

5 Forces, Switching Costs & Entry Barriers
The Five forces model was designed by Michael Porter and it has been used by businesses to help people understand the relative attractiveness of an industry and the industry's competitive pressures as it relates to 1. Buyer power, 2. Supplier power, 3. Threat of substitute products or services, 4. Threat of new entrants and 5. Rivalry among existing competitors
Buyer power refers to how high or low the customers buying choices are. In ShopRite the buyer power is relatively high as customers can easily go elsewhere to purchase the same products that ShopRite offers with the exception of the generic ShopRite branded products. ShopRite however creates a competetive advantage by making it more attractive for customers to buy from them rather than their competitors; they do this by selling at a cheaper price and offering coupons to current and potential customers. ShopRite tries to reduce buyer power by selling high quality products cheaper than what customers would find elsewhere so customers would purchase their merchandise.
Supplier power is the opposite of buyer power; it refers to how high or low the buyer’s choices of whom to purchase from is. ShopRite has a low supplier power as it has a variety of suppliers whom it can purchase from and it maintains this low supplier power by having its suppliers compete via bidding for their business. One such example is Coke Cola and Pepsi constantly compete for contracts with ShopRite.
Threat of substitute products or services is high or low depending on how many alternatives their are to a product. ShopRite has a low threat of substitute products as their main threat is online grocery shopping in which the products are delivered to the customers households. ShopRite decreases this threat by expanding into that market by offering online grocery shopping as well.
Threats of new entrants refers to how easy it is for new competitors to enter a market. ShopRite’s threats is somewhat high as the grocer’s market is relatevely easy to enter. An example of this is Wal-Mart that is now starting to sale not only electronics but groceries. As we talked in class everyone knows that Wal-Mart is very powerful and this could hurt Shoprite in the future. To decrease this ShopRite should implement entry barriers that could prevent other new establishments in it’s current market.
Rivalry among existing competitors refers to how much competition is faced in a market. ShopRite has high rivarly as they have alot of competition from other well established companies such as Pathmark, Foodtown, or Stop and Shop as well as little neighborhood stores. All of these companies are in the food industry and are rivalry for ShopRite. To reduce this ShopRite tries to distinguish itself from its competition by emphasizing low prices and good customer service.
Switching costs are costs that make customers reluctant to switch to another product or service supplier. ShopRite uses switching costs by providing the lowest price as possible on most of its products so that customers would be reluctant to switch to a higher costing competitor. They also issue double coupons and every week promotions on their products that customers would not receive elsewhere. They also have special programs for their ‘loyal customers’ such as ShopRite cards which further reduces the price for customers as well as accumulating points to be redeemed for prizes. These along with providing good customer service are how ShopRite uses switching costs.
ShopRite uses entry barriers which help make it hard for companies to enter the market. Shoprite uses this in their technological advantage by purchasing cheaper than its competitors so they could sell at a low cost. This takes alot of time, research and money to establish and build relationship with their suppliers. A firm attempting to enter this market would need to have a substantial amount of money, technology, as well as connections in order to efficiently compete in this industry.

Major Business Initiatives
Major business initiatives includes better Customer Relations management by being able to connect with customers more frequently and relevantly. ShopRite wants to improve communication with customers by doing marketing research of products which customers purchase. Doing this will allow ShopRite to target specific markets with specific items. To facilitate this ShopRite uses SAS solutions software for retail turn data about customers, merchandise and operations. SAS software is a vital part of ShopRite’s IT as it allows ShopRite to make more informed decisions and gain competitive advantage over its competitors in terms of targeting potential markets for products.
Also as a bottom-line strategy company besides customer satisfaction ShopRite aim’s towards cost reduction. They do this by adopting a wait and see approach by buying proven technological devices that is guaranteed to give them a return on their investment. They also use communications technology to locate the cheapest supplier to reduce product cost which will in turn lead to a low product price for consumers.

IT Organization & Philosophical Approach
Information Technology (IT) can most commonly be described as “the study, design, development, implementation, support or management of computer based information systems....” (http://en.wikipedia.org/wiki/Information_technology.) In IT there are three basic organizations which are; The top-down silo, Matrix and Fully integrated. Shoprite has a structure similar to that of the top-down pattern. Their IT department is separated from the other departments of the organization. Thus other functions must go thorough the IT department for approval on new projects regarding anything technological.
Companies could basically adopt one of two philosophical approaches to IT. A company can chose to be centralized also known as ‘wait and see’ adopters or rather decentralized also known as early adopters. Wakefern/Shoprite utilizes a centralized philosophy. The company buys proven technology which would give them a significant return on their investment. This is done because Wakefern/Shoprite uses a low cost strategy and does not budget heavily for technology as it would severely impact profits. Also heavily investing in new unproven technologies would not result in their acquisition of a substantially bigger share of their targeted market.

Kinds of Ecommerce Used
E-commerce or electronic commerce refers to commerce enhanced by the use of information technology especially the internet. This simply means buying, selling and exchanging of goods and services on the internet.
The most notable kind of e-commerce ShopRite is involved in is via their store website which enables customers to shop for products over the internet which would then be delivered or available for in store pick up. ShopRite also uses the internet for advertising and marketing by posting ads and offering coupons respectfully which entices persons to purchase from them. One new way of advertising is by the use of social networking sites such as twitter (www.twitter.com/ShopriteStores). The internet also facilities distributing these coupons to consumers through email as well. Also with technological advancements e-commerce is also done by texting offers to cellphones and pda’s. One such example is in Hillsborough, N.J., consumer goods giant Uniliver the owner of Knorr, Lipton, Wishbone, Hellman’s, Breyers, SlimFast and many other products is running a trial at a ShopRite store that involves cashiers scanning the consumer’s cellphone screen, which will display a digital coupon.
In turn when Shoprite needs its supplies their primary supplier Wakfern Food Corporation, which is also their parent company; the ordering of their supplies is done via e-commerce by an semiautomated system that places orders by using the internet to facilitate communication with their supplier and themselves.

Internet Business Models
There are nine major e-commerce business models; of these nine ShopRite is primarily involved in two. The first is Business to Business (B2B) which is when a business sells to other businesses; which is the most used business model. A typical example of this is ShopRite selling wholesale to restaurants and bakeries. These business would purchase food products from ShopRite which they would then use to make their products.
The other model which is used by ShopRite is the Business to Consumer (B2C) which is when a business sells to a consumer which is usually an individual. Examples of this includes persons visiting the physical store and purchasing items or persons who shop by using the internet (e-commerce) by visiting the store’s website which was mentioned in 3A.

Marketing Mix
Marketing Mix is the set of marketing tools that an organization uses to to pursue its marketing objectives in reaching and attracting potential customers. For B2C ShopRite markets in a variety of ways; Registering on search engines so that potential customers using search engines such as google would have a higher success rate of being directed to ShopRite when words such as supermarket, grocery and Shop are searched. Apart from this they advertise online via affiliate programs in which they and another website most notably Wakefern; their parent company which directs persons from the Wakefern site to ShopRite’s site. ShopRite also uses more traditional methods of advertising such as television ads, newspaper ads and a magazine type mail that is distributed to areas surrounding ShopRite locations.
For B2B ShopRite participates in E-Marketplaces to find suppliers and to be found by other businesses who wish to be their customers. One such E-marketplace is www.Supplierlist.com . Apart from contacting suppliers relationships need to be made and maintained so that there is a level of trust to ensure continued business deals, to do this there needs to be a level of IT integration between buyer and supplier. ShopRite has a connection to its suppliers so that ordering and updating inventory is easier and more efficient.

Payment Systems
For B2C ShopRite uses many forms of payment systems Financial cybermediary is an internet based company that eases payment from one person or organization to another over the Internet. Most notable is ‘paypal’ which is set up to aid customers using the ShopRite website. Other systems used include Credit cards and smart cards which is similar to a credit card that contains an embedded chip on which digital information such as how much money you have can be stored and updated. ShopRite recently intoduced ExpressPay from American Express, a contactless payment option featuring a secure computer chip powered by radio frequency technology which customers at the counter would use instead of cash or credit cards.
For B2B ShopRite has Electronic Data Interchange (EDI) which is the direct computer-to-computer transfer of transaction information in standard format such as invoices. Vendors willing to do business must have EDI capability and should contact the Wakefern Food Corporation EDI department to establish the connection; firms that do not have EDI capability are encourage to implement the software otherwise ShopRite would not conduct business with them. After the EDI the Financial EDI is used to facilitate payment for purchases made.

Article
Business Wire January 11th 2010
Wakefern Food Corp. Teams with SAS for Unique Marketing Solutions.

In 2009 the Wakefern Food Corporation developed a business initiative to connect with customers more frequently and relevantly according to Business Wire. To do this Wakefern and its consultants decided on SAS Marketing Automation Software. SAS is referred to in the article as “the leader in business analytics software.” SAS uses innovative solutions and helps customers improve performance and deliver value by making better decisions faster.
SAS Marketing Automation software was essential for Wakefern’s marketing needs because the system required by the company needed to automated, intuitive, secure and maintainable. This was so because managers wanted a system that they did not need to monitor but instead would produce opportunities automatically in which their effectiveness could easily be measured.
Although Wakefern adopts a low cost strategy the implementation of the SAS software refers to its customer relations management and supply chain management as the system is used to improve communication with customers, the communication within the Corporation and vendors (Supply Chain); these are targeted to help increase customer retention, acquisition and market share.

Full Article HERE

Introduction

Wakefern has been around before World War 2. In 1946, a sales representative introduced an idea to help small grocery stores to come together and offer a wide selection of low costing products. On December 5, 1946 seven owners of stores in New Jersey invested 1,000 dollars and started Wakefern Food Corporation. The company was very successful throughout their early careers. In 1958, they began using trading stamps that helped draw in more customers. After 15 years after they started they had over 70 members and were making over 100 million dollars in annual sales. Shoprite’s philosophy was their members had to buy right to shop rite. In the 1950s owners created their own brand of food. It was very successful having a cheaper product to compete with more expensive brands. Most of the stores are family owned and have been in their family for many generations. ShopRite are one of the largest in its industry and provide service to nearly five million people weekly. They have over two hundred stores between New Jersey, New York, Pennsylvania, Connecticut, Maryland, and Delaware

Joseph Colalillo is the Chief executive officer for Wakefern since 2005.Taking the place of Thomas Infusino and continuing to follow his long term strategy. He is also the owner of three Shoprites in Hunterdon County New Jersey. He has continued to work hard on the most critical issues like interchange fees, independent operators and wholesalers. Since taking over Joe has helped expand the business of wholesaling.

When it comes to helping out in the communities with poverty, education, and fundraisers Shoprite is always willing to help out. Shoprite has organized the Shoprite Partners in Caring Fund that help fights against hungry by donating food to local food drives. Partners in Training program assist underemployed by providing training to work in the supermarkets. For the past twenty years they have helped with the Special Olympics of New Jersey by donating food and also helping out with volunteer staff. I know from working at a local ShopRite near me that schools are always asking for donates and also coming to bag groceries to help raise money for their clubs. For risk management they have security and video cameras in all their supermarkets. They also have a loss prevention department which is men and women disguised as regular customers.

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