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Learning to become a high reliability organization in the food retail business

Published on Oct 1, 2016in Journal of Business Research4.03
· DOI :10.1016/j.jbusres.2016.03.015
Luciano Ciravegna13
Estimated H-index: 13
(INCAE Business School),
Esteban Brenes12
Estimated H-index: 12
(INCAE Business School)
Abstract
This case discusses Selectos, a retail chain based in El Salvador, which was put under severe strain when Walmart entered its domestic market, threatening the leading position it had acquired through many decades of investment. The case illustrates that Selectos succeeded in competing Vis a Vis Walmart because it implemented the principles of high reliability organizations. First, before Walmart entered the market, the Salvadoran company invested time and financial resources to audit its routines, finding several areas of improvement. Second, its core strategy was to focus on continuous improvements in its operations. Third, it engaged its workforce, and especially the shop floor managers, in the process of executing its strategy at the whole corporate level. Fourth, through consultation with the managers of its functional areas, it enacted systems to manage unexpected events, ranging from hurricanes to violent attacks on its facilities (preparation for unexpected events). The case is designed to illustrate how a domestic firm from an emerging market competes with a leading multinational corporation, emphasizing the importance of organizational learning, especially the development of routines and mechanisms that allow for flexibility and adaptability to changes in conditions.
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  • References (33)
  • Citations (8)
References33
Newest
#1Esteban Brenes (INCAE Business School)H-Index: 12
#2Luciano Ciravegna (INCAE Business School)H-Index: 13
Last.Daniel Montoya (INCAE Business School)H-Index: 3
view all 3 authors...
#1Esteban Brenes (INCAE Business School)H-Index: 12
#2Daniel Montoya (INCAE Business School)H-Index: 3
Last.Luciano Ciravegna (Lond: University of London)H-Index: 13
view all 3 authors...
#2Tarcisio Abreu Saurin (UFRGS: Universidade Federal do Rio Grande do Sul)H-Index: 17
Last.Lia Buarque de Macedo Guimarães (UFRGS: Universidade Federal do Rio Grande do Sul)H-Index: 9
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Cited By8
Newest
#1José Ernesto Amorós (Tec: Monterrey Institute of Technology and Higher Education)H-Index: 16
#2Luciano Ciravegna ('KCL': King's College London)H-Index: 13
Last.Pekka Stenholm (UTU: University of Turku)H-Index: 9
view all 4 authors...
#1Esteban Brenes (INCAE Business School)H-Index: 12
#2Luciano Ciravegna ('KCL': King's College London)H-Index: 13
Last.Caleb A. Pichardo (INCAE Business School)H-Index: 2
view all 3 authors...
#1Ruth V. Aguilera (Ramon Llull University)H-Index: 34
#2Luciano Ciravegna (INCAE Business School)H-Index: 13
Last.Maria Alejandra Gonzalez-Perez (EAFIT University)H-Index: 7
view all 4 authors...
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