Grand Union is a large retail grocery. The majority of its stores are located in well-established neighbourhoods. The Grand Union had always seen itself as a grocery store. One where there is a traditional high volume, low margin, limited selection, discount driven. In the mid 1980's came the advent of the super store, the smallest of which was about twice the size of Grand Union's largest store.
Grand Union's top managers were faced with the need to redefine what it meant for Grand Union to be a grocery store. This was so since they decided that competing with the super store was not a viable merchandising strategy for Grand Union. Grand Union was only 40 000 square feet in comparison to the super store that was 100 000 - 260 000 square feet. Further, Grand Union would have to move from its current location where space is limited. Even though they would have more space they would have to uproot relationships with customers, suppliers and communities.
As a result of this Grand Union would be faced with even more problems since they would have to regain all that was lost in moving, through extensive marketing research.
Taking into account competitive pressures and new customer habits and preferences, Grand Union changed its direction. This called for strategic human resource management, where the strategy of the business would be implemented effectively, and everyone from the top of the human organization to the bottom would be able to do things that make the business successful. Strategic human resource management is largely about integration and adaptation. Thus, it links, it integrates, and it coheres across levels of the organization.
In order to transform its business, Grand Union implemented the Strategic Human Resource Management Activities. This is called 'The 5-P Model', since it includes the...