Evergreen Naturals Market
Case– Evergreen Natural Markets
1. What makes Evergreen Natural Markets successful?
There were numerous factors that contributed towards the constant success of Evergreen Natural Markets. The company’s methodology towards growth and expansion is one of the integral factors. Where most companies seek to grow by re-investing their profits back into their businesses (ploughing back), Evergreen adopted a more radical approach by acquiring other competing companies or companies that show potential of growing rapidly. Evergreen designed a strategy that was twofold in nature. By bringing in rival companies under the Evergreen umbrella, the approach simply eliminated any competition, increased the resources and financial base and made it easier for Evergreen to have a wider scope and reach. Granted, acquisitions have issues with integration of management and operations. However, this approach has been steadily used by Evergreen, and this has resulted in its prosperity as an organic food distributor. As the latest addition to the Evergreen umbrella, Aragula Grocers serve to make the effect of the mother company increasingly widespread. The recent acquisition can allow the company to lower its prices and engage in aggressive marketing that will make Evergreen more successful.
2. Why do stores improve their performance after being acquired by Evergreen?
The main reason for the increased performance after joining the Evergreen was the approach adopted by Evergreen. On the surface, they may seem like clear acquisitions. However, the acquired stores are allowed to maintain their functional systems and procedures. In this way, Evergreen owns the stores but allows them to continue operating in the same way. The slight modifications that at times were made on the administration and management included branding, change in sales approach, and other minor issues. Using the operational systems of the different stores, Evergreen was able to utilise their combined efforts and
1. What makes Evergreen Natural Markets successful?
There were numerous factors that contributed towards the constant success of Evergreen Natural Markets. The company’s methodology towards growth and expansion is one of the integral factors. Where most companies seek to grow by re-investing their profits back into their businesses (ploughing back), Evergreen adopted a more radical approach by acquiring other competing companies or companies that show potential of growing rapidly. Evergreen designed a strategy that was twofold in nature. By bringing in rival companies under the Evergreen umbrella, the approach simply eliminated any competition, increased the resources and financial base and made it easier for Evergreen to have a wider scope and reach. Granted, acquisitions have issues with integration of management and operations. However, this approach has been steadily used by Evergreen, and this has resulted in its prosperity as an organic food distributor. As the latest addition to the Evergreen umbrella, Aragula Grocers serve to make the effect of the mother company increasingly widespread. The recent acquisition can allow the company to lower its prices and engage in aggressive marketing that will make Evergreen more successful.
2. Why do stores improve their performance after being acquired by Evergreen?
The main reason for the increased performance after joining the Evergreen was the approach adopted by Evergreen. On the surface, they may seem like clear acquisitions. However, the acquired stores are allowed to maintain their functional systems and procedures. In this way, Evergreen owns the stores but allows them to continue operating in the same way. The slight modifications that at times were made on the administration and management included branding, change in sales approach, and other minor issues. Using the operational systems of the different stores, Evergreen was able to utilise their combined efforts and