SUPPLY CHAIN MANAGEMENT

| May 19, 2015

After years of hard work and dedication, you find yourself as a CEO of a grocery chain—FoodMart. FoodMart has 35 stores operating along the east cost of the United States. The chain is established, very profitable, and operating as expected. To your surprise, one of the produce suppliers calls your office with a chance to purchase the supplier and integrate it into FoodMart!

After thoughtful and fair negotiations, FoodMart acquires the supplier and integrates it into FoodMart. The result is a new division of FoodMart called VegSmart. Thus, FoodMart is also its own supplier.

Comment upon the acquisition from the perspective of product and institutional relatedness. Did the CEO make the correct decision? Why or why not? Justify your answer with evidence from other merger or acquisition events.

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2018DISC
Obesity / Type 2 Diabetes
HUMAN RESOURCES MANAGEMENT

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