federal borrowing interest rate down to 0.25%, one of the lowest in years to encourage borrowing by both individuals and businesses and to help give the economy a boost.[xi] The U.S. news is also reporting a possible U.S. meat shortage due to plant closures due to COVID19 which may impact beef exports to Canada, its closest trade partner.
Competition has been tough for many smaller grocers, fruit markets and farmers markets who do not sell their goods online. Yet, new competitors are starting to appear. Several Toronto restaurants are now selling basic groceries to reach out to their customer base and meet gaps in the marketplace.[xii]
Loblaw will be watching closely on how these indirect competitors adapt their strategies in the months ahead.
Question: (Total marks: 20 marks)
1. Explain how the 7 external environment forces are impacting Loblaw and the grocery industry. Apply theory and case-specific examples to support your analysis. Ensure you include all examples in the case to provide a, detailed and thorough analysis. (14 marks)
2.What management philosophy, which of classical or behavioural approached, do you think would best equip Loblaw to respond to the COVID19 crisis? Explain your answer with examples from the case. (6 marks)