CASE STUDY

PREPARED BY :
MUHAMMAD ABDUL SUBHAN BAIG ANEES ASLAM MUHAMMAD FAROOQ MUHAMMAD SHAHZAIB NAMRA SARFARAZ

SECTION :
MBA 4(B)

SUBMITTED TO:
MS AISHA IHSAN
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Table of Content

Content

Page

Executive Summary

Background Information

Problem Statement

Recommendations

Case Questions

EXECUTIVE SUMMARY:
Paul Cimerer the General Director reviewed the Professional Development Program which was designed to hire the high potential graduates for successful management careers in the distribution, retail, and corporate activities. Initially five members were to be hired by the PDP program in their first round 4 of which will be associated with the TECH BUYERS and only 1 will serve as WAREHOUSE SUPERVISOR. However, they reviewed that they need to double the recruits in the following year due to their expanded business. The companys mission changed from WORLD CLASS DISTRIBUTION to COMMITMENT TO SERVING CUSTOMERS led Supervalu to develop the Advantage Program (Pricing, Distribution, Category management and Vendor Relation).In 1998 the structure of the PDP was designed and the responsibilities were handed over to the consultant, Laurie Schmidt. The purpose of this program is to provide the on job training. Further the entry level positions (Distribution, Retail, Category Management, and Corporate) were to be filled. In this the trainee were given the option to serve their first year in the area of their interest and then they will spend six months in each of two other areas. PDP training program includes Warehouse supervisor training plan (Managing the operations, managing peoples, managing internal and external relationship and managing risk) and Tech buyers training plans (managing inventory level, managing purchase to maximize profit, managing internal and external relationship, using reports to achieve service level goals and using the buying system).The benefits consider for the PDP are Help them compete effectively on college campuses for the best talent. Help them to retain this talent. Build internally developed leadership capabilities. Save money Assist in their diversity initiatives. After the successful completion of the PDP design stage, it was implemented andsome problems started surfacing. Director Cimmerer was late in sensing the problems because at the same time he lost one of his key assistant and he was busy in handling other projects, then he took the charge for two of the training programs and therefore he withdraw the first round of PDP. Coach, business advisor and program sponsor were considered to be most critical for the success of PDP. Middle managers were against the PDP and vice president considered them as killers and stated that after implementation of PDP middle managers will be eager to use this program due to its effective outcomes in the company.

SUPERVALU INC.
Professional Development Program
Background Information:
SUPERVALU is a grocery industry leader, serving customers through more than 3,400 owned, licensed, franchised and affiliated stores across the United States of America. Their roots are in supply chain and wholesale distribution; in subsequent years they have grown to include traditional and hard discount grocery retail formats. Today they are providing millions of customers with the best products on the shelve. Superior service, engrained in their culture, which sets them apart from the competition and provides the experience which customers expects. In 1999 the annual sales were $17.4 billion and having 5000 full and part time employees.

Problem Statements:
The existing material could not be used as anticipated. Consultants have lack of knowledge about the company and its operations. PDP was too much a cooperate staff product. Supervalu were solely focusing on fresh college graduates and were overlooking their existing staff.

Recommendations:
The PDP should not only focus on the fresh graduates rather they should be concerned with their current workforce. Secondly PDP was focusing on the graduates having minimum CGPA 3, Candidates having CGPA less than 3 should also be considered for the overall effectiveness of the program. There should be some incentive for the internal employees as well so that they feel motivated in helping the trainee to learn. The PDP roles and responsibilities including coach, advisor and program sponsor must be supervised carefully if any of the three show negligence to their job it might destroy the overall objective of the whole program. The environment provided to the employees should be learning with a team culture otherwise the trainees could not learn and gain a fruitful experience. The program planners need to work on the environment as they might face a strong opposition from current employees. Element of risk should be consider in the program this will keep the trainees motivated and it will help them in decision making. The Candidates should have first experience with the Supervalu rather going directly in to the PDP.

SUPERVALU Case Questions

1. Evaluate Supervalus new professional development program. What do you like/dislike about the program? Will it appeal to the college recruits? Why or why not? In order to have a competent workforce Supervalu designed a program named Professional Development Program (PDP). Program Objective: The core idea behind launching PDP was to attract high potential college graduates who want to make careers in distribution, retail and corporate activities. The need of the company was to do a better job in getting entry level people into the core business and PDP satisfy this need. Agenda: The main agenda of PDP was Issues: The idea behind launching PDP was excellent but the planning part of PDP ignored some issues which affected the overall success of the program. One of the important things which they ignored is their current employees; the program was purely for fresh graduates and had no incentive for the Supervalus current workforce. Secondly PDP was focusing on the graduates having minimum CGPA 3 and ignoring the talent of people with CGPA less than 3 which also affect the overall effectiveness of the program. To compete effectively on college campuses for the best talent. To retain the talent. To build internally developed leadership capability. To save money. To assist in the diversity of business.

Appealing Factors for the Fresh Graduates: The PDP is a program purely designed for the fresh graduates; it appeals to the fresh graduates as it provides them It provides them with the opportunity of learning the retail and distribution business. The PDP helped them groom for their personal growth; it is designed in such a way that it gives candidate a chance to learn each unit of the business. Lastly it provide the candidates a chance and gain experience through working with one of the largest food retailer company and a leading food distribution company Supervalu and helps in understanding the culture of large organizations.

2. What do you think about the way the program was created? What might you have done differently? Why? As mentioned earlier the program was all about hiring and training fresh talent who have completed their four years of education and interested in working in retail and distribution business. The PDP was designed in such a way that it enables the fresh inductee to learn each unit of the business Supervalu scope of training was divided in three career ladders

Career Ladders

Retail

Distribution

Corporate Activities

PDP was a 2 years rotation based program across 3 units the rotation scheme was: 1st rotation 12 months in the main area of interest of trainee 2nd rotation in one of the areas left out of three 3rd rotation of 6 months again in the area left
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This rotation helped the trainee and the company both as it helps in developing skills related to all the three areas of the business and will help trainee in its career development and the overall business to grow. The program required 4 years degree with minimum CGPA of 3, strong computer skills, excellent communication, presentation, leadership and analytical skills. Doing it Differently: The program must give such chances of growth to itsexisting employees, there should be a mechanism through which managers nominate the names of potential people to be a part of PDP and they should also be given a chance to polish their skills. Secondly the program focuses on the people having CGPA 3 whereas according to me CGPA should never be the only criteria; people with CGPA less than 3 have also potential and their talent must be catered. There should be some incentive for the internal employees as well so that they feel motivated in helping the trainee to learn. The program does not provide any incentive to the current employees so they do not welcome and help the trainee in their learning process. This thing might damage the essence of PDP which is to train fresh graduates. So this issue should be handled carefully.

3. What should Paul Cimmerer do as of August 1999? Supervalu is a large organization with diverse businesses; they are in retail and distribution both such companies have strong culture and in retail & distribution people/employees are very important. The philosophy of Supervalu is Total commitment to serving customers more effectively than anyone else could ever serve them. So in order to serve customers Supervalu must have loyal and dedicated workforce; for this Paul Cimmerer launched PDP. The overall idea and procedure is already discussed in the first two questions. Paul Cimmerer should launch the program with some changes: The program should extend to a next level. The number of trainees should be increased. There should be a proper procedure of providing growth opportunities to employees on a lower level with required talent through PDP. The incentive should be given to other employees as well for the success of PDP. The CGPA should not be considered as the only criteria and should include other equally important criteria and people having CGPA 2.5 should also be given a chance.

4. What are some of the future challenges that he need to anticipate with respect to professional development? The challenges that Paul Cimmerer needs to anticipate with respect to PDP are discussed already. Supervalu is a rich organization in terms of diversity; diversity in terms of people, business, culture, career etc The challenges that PDP might face in future are many; there are many risks attached to PDP the way it is planned. Some of them are: The PDP might face a challenge from its current employees as there is nothing in it for them. The opportunities in terms of career development and growth given to fresh internees/trainees are very high which might de-motivates Supervalus employees as they feel neglected. The program also neglects the talent of people with CGPA less than 3. There should be a way to deal that talent as well. The PDP roles and responsibilities including coach, advisor and program sponsor must be supervised carefully if any of the three show negligence to their job it might destroy the overall objective of the whole program. The environment provided to the employees should be learning with a team culture otherwise the trainees could not learn and gain a fruitful experience. The program planners need to work on the environment as they might face a strong opposition from current employees. So in order to make PDP a complete success the program heads need to mitigate these challenges or risks and need to plan to overcome these challenges.