Overview of H-E-B: Community-Centric Retailer in Texas
H-E-B, a prominent food retailer in Texas, is deeply rooted in community involvement and service. Founded in 1905, H-E-B strives to provide quality products and convenient services tailored to each local community. The company's commitment to giving back is evident through initiatives like the H-E-B Food Bank Assistance Program and the annual Feast of Sharing dinners. With a focus on community partnerships and engagement, H-E-B aims to be the preferred chamber in Northeast Tarrant County. Through its diverse range of offerings, including local and international products, H-E-B continues to be a significant presence in the retail landscape while maintaining a strong internal environment supported by various professionals.
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Team #6 Jessica Maldonado Emmanuel Garcia Anakaren Rios Emanuel Bocanegra
Outline Background Product/Services External Environment Structure and Design Evaluation Recommendation
Background About the Organization H-E-B is one of the largest independent food retailers in the nation. Have a variety of stores which allows customers to explore the options H-E-B can provide for them. Being part of the community is a great significance to H-E-B. Therefore provides back to the community every chance they get. Mission/Vision/value statements MISSION STATEMENT: The mission of The Chamber is to serve and promote our members and the community. VISION: The HEB Chamber is the preferred chamber in Northeast Tarrant County. The Chamber has the most active membership because of its effective programs and opportunities for business. The Chamber experiences membership retention and growth from businesses that receive enhanced value from their membership.
Background (Continued) Contribution to the community For over 100 years H-E-B has made a commitment and been involved in the community since it is a way for them to give back after the community has allowed them to be part of the neighborhood. They help in plans like the H-E-B Food Bank Assistance Program, the annual Feast of Sharing holiday dinners, and the Spirit of H-E-B trailer that provides on-site relief in areas devastated by natural disasters. Historical Information Founded in 1905 by Florence Butt in Kerrville. What is now a very popular and large organization first started with only sixty dollars. Throughout many years of accomplishments H-E-B has also been named Retailer of the Year by Progressive Grocer Magazine. http://missionrmc.org/uploads/images/2014_missionpink_heb.gif http://itstimetexas.org/wp-content/uploads/2014/09/HEBcc_logo_2015-copy.png
Products and Services Description of Services/Products Every H-E-B supplies fresh food, quality products, and convenient services all designed around the specific needs of each community in the state of Texas. H-E-B Business Center offers fast, convenient and dependable payments for services consumers use most. With everything from hunting and fishing licenses to garage sale permits, HEB makes it easy to do business with local government. Customers can conveniently pay their local electrical, gas, water, phone, wireless and cable bills. National and International Products Organics, such as produce, vary within Texas which are grown and farmed on Texas soil. As well as international products supplied from Mexico.
Products and Services (Continued) Market Share Historically, the company is known for its charitable donations, with 5 percent of annual pretax earnings given to causes in the communities it operates in, including education and food banks. An annual charitable program maintained by H- E-B since 2000 is the Excellence in Education Awards, in which teachers, administrators and schools in Texas are recognized with awards totaling $500,000 in contributions in 2009. Internal Environment Architects, interior designers, graphic designers, engineers, and architectural interns work together to create shopping experiences that the customers want and facilities that visually mirror the HEB community environment.
External Environment Major Competitors Competition is heating up in Texas, where San Antonio- based HEB has traditionally dominated. The retailer, which operates 339 retail stores in Texas and Mexico, will face more than 30 new competitors in 155 Texas communities next year, including Trader Joe s, Walmart and Target. That s triple the number of competitors that opened this year.
External Environment (Continued) Social Responsibility H-E-B always believed in the value of hard work and the importance of taking care of people, and have always dreamed big. H-E-B hires great people, offers Customers the best service and sell only the freshest, safest products. H-E-B always looks for great products for today and tomorrow, and makes sure to give Customers low prices with the best value possible. Cultural Environment This company believes that their work is to care for the environment not only does that make them a better neighbor it also helps them serve us better. By being energy efficient and conserving natural resources, they re not only helping the planet, they re also creating savings we can pass on to customers in the form of everyday low prices. Conservation today for a better tomorrow
External Environment (Continued) Reduce, Reuse, Recycle! HEB has reduced more than 63 million pounds of harmful air pollutants and diverted more than 1.2 million tons of waste from landfills-more than the annual waste produced by 395,000 households- by recycling materials including, aluminum, steel, plastic, oil, cardboard, and computers since 2006. H-E-B has reduced the number of plastic bags used. The cardboard and plastic recycling efforts saved the company equivalent of 18 million trees, 1.74 million barrels of oil, 10.7 cubic yards of landfill space and 618 million (KWH) of energy per year. The energy savings alone are enough to power more than 55,000 homes for a year. Suppliers H-E-B s suppliers help bring quality products and services at competitive prices. They also help contribute to the economic growth of the neighborhoods that are being served. H-E-B states We wouldn t be the company we are today without our great suppliers . H-E-B s commitment to supplier diversity The company partner with suppliers who understand the unique needs of customers and have creative ideas on how to serve them. The partnerships enable to stay competitive and better serve the communities. Increasing diversity among suppliers benefits the marketing and merchandising strategies and encourages participation with both minority and women-owned businesses.
Structure and Design H-E-B Organizational Chart
Structure and Design Delegation of Authority Business Environment Centralized Major organizational decisions made by CEO Decentralized For retail operations Departmentalization Product Departmentalization Organizational Design Organic Company Ethics Code of Ethics Community Support Commitment to Diversity Community Events Read 3 Child Literacy Program
Evaluations Organization Successes and Failures Challenges Faced by Organization
Evaluations(Continued) Opportunities Faced by Organization Growth Potential
Recommendations Strengths Texans know that H-E-B is the best grocery store in America. The chain has been providing a superior shopping experience for much longer than many of their competitors. From gourmet in-store samples to awesome packaging, we chose a few reasons that H-E-B is amazing. 1) Produce Section: carries more than 900 items, and are known to be fresh and impeccably stacked. 2) Clever Packaging: the brand has fun with its private-label items. 3) Beer and Wine Selections: they carry an extensive selection of traditional, craft, and Texas brews. 4) Great Customer Service: they are highly ranked as a place to work, thanks to great benefits and strong company culture. 5) Funny Promotions: the brand often has a sense of humor with promotions. 6) Chefs who prepare free samples: the grocery s program has chefs preparing items for customers to sample. Weaknesses The demographic locations have room of improvement and the company now concentrated in Texas only can move top some other neighboring states. The company is not at all linked or approached by the capital market as it is privately owned. The labor sometimes is not very well organized, especially in the central H-E-B market. The offers like loyalty cards are lacking and there is hardly any incentive that can be enjoyed by the customers in comparison with WAL-MART and 99 cents especially.
Recommendations (Continued) Recommended Changes and Justification New Business Strategies Expansion to other U.S. States Proven success in Texas and Northern Mexico Quality products and services offered benefit economy Increased revenue for H-E-B Diversification Neighborhood Locations Smaller locations Focus on groceries/pharmacy Carries best seller products from regular locations Competes directly with Wal-Mart Neighborhood Market
Conclusion: Remarks HEB Grocery Company, LP, also known as H-E-B Grocery Stores, is a privately owned supermarket chain located in San Antonio, Texas, with more than 350 stores throughout the U.S state of Texas, as well as in northern Mexico. Headquarters: San Antonio, Texas CEO: Charles Butt Founder: Florence Butt Founded: November 26, 1905, Kerrville, Texas