Date of Award
1997
Document Type
Thesis
Degree Name
Master of Business Administration
Department
Business
First Advisor
Pam Jone
Second Advisor
Williams DeLottell
Third Advisor
Jan Kniffen
Abstract
This thesis focuses on the study of the on-line grocery fulfillment industry. Research was conducted and pertinent information was gathered to assemble a business plan for an on-line grocery fulfillment service in Southeastern Alabama.
Research indicates that in order to successfully start, operate, and perpetuate a fulfillment service, business owners must focus on issues such as market analysis, service, finance issues, and operations. The business plan for the proposed fulfillment service draws on industry data regarding those and subordinate issues.
Upon completion of the business plan, two businessmen were selected to judge the plan's thoroughness and Likelihood of successful implementation. The sampling frame was composed of businessmen deemed appropriate to evaluate the business plan. Subjects were asked to review the business plan and complete the survey. Non-probability sampling using a judgment sampling method was employed.
The instrument employed was a survey which utilized a five-point Lickert scale. A mean response was calculated for the response to each survey item. After a mean ( X) was calculated for each survey item, a X was calculated for a11 items within each survey, and a grand mean ( X) was calculated using the X of each of the three surveys.
Survey results indicated that while the business plan thoroughly addressed pertinent industry and business-specific issues, it was unlikely that the business would succeed due the high cost of sales relative to gross sales. Projected gross margin as a percentage of gross sales was deemed insufficient to compensate for overhead expenses.
The grocery fulfillment industry is heavily niched, and although the market analyzed was unserved, the relatively small market that the business would serve was insufficient to support a positive net income.
The unwillingness of grocery industry and on-li ne fulfillment industry sources to provide meaningful data on advertising sales to suppliers made unlikely the accurate projection of advertising sales revenue streams.
Recommended Citation
Puzzuoli, David A., "The Design and Implementation of an On-Line Grocery Fulfillment Service Business Plan" (1997). Theses. 1146.
https://digitalcommons.lindenwood.edu/theses/1146
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