Page_154 - Page 154 Interactive Management We are indebted to A Barstow for allowing us to include his account of

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< previous page page_154 next page > Page 154 Interactive Management. We are indebted to A. Barstow for allowing us to include his account of this project in the book. 7.5.2 Super Fresh In 1982, the Great Atlantic & Pacific Tea Company (A & P) supermarket chain closed over 40 stores in the Philadelphia area, resulting in the loss of more than 2000 jobs. Volume- driven profits based on very narrow margins, the historical pattern in food retailing, were under pressure from a changing environment. A & P had been in trouble nationwide from the early 1970s. Mounting losses had resulted in several changes in management and ownership, and the number of stores had been cut from around 3500 in 1970 to near 1000 in 1982. In
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1979, A & P was acquired by Tengelmann, a large German food merchandiser. The new corporate strategy was to scale down A & P and to increase the rate of return on the chain's remaining assets. A higher proportionate return on equity became the new bottom line. In the Philadelphia area, A & P
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This note was uploaded on 04/21/2011 for the course MGT 03 taught by Professor Kasra during the Spring '11 term at Tanta University.

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Page_154 - Page 154 Interactive Management We are indebted to A Barstow for allowing us to include his account of

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