Mercadona Case Analysis
Marta Pujol Olivares
MERCADONA CASE ANALYSIS
A hint about Mercadona
Mercadona is the Spanish largest supermarket (by sales) with a huge shops expansion that has enjoyed double digit growth for most of the past decade.
The secret to its success: a higher productivity that includes flexible working conditions, extensive employee training and performance-linked bonuses.
The company also establishes long-term relationship with their suppliers by accomplishing the same parameters as Mercadona thus in order to achieve responsiveness and effectiveness in their deliveries.
The chain had 1,356 stores and 70,000 permanent employees at the end of last year. Profit increased 19% to €474 million ($619 million) on €17.83 billion in revenue.
Mercadona’s goal is to provide an excellent customer service and to offer the best quality products at the lowest price possible. In order to satisfy customers’ demand Mercadona has always believed that it should first ensure employees’ satisfaction and that’s why they implement a human resources policy pioneer in its sector, characterized on a permanent contract offer to all staff, training plans, internal promotion and innovative measures to reconcile work and family life.
Mercadona invests about $6,500 and four weeks of training in each new employee—largely unheard of in Spain. Employees receive an additional 20 hours of training a year.
The company also pays above-average wages and never has conducted mass layoffs. If the company hits certain profit targets, nearly all employees receive a bonus of up to two months' salary. In exchange, Mercadona requires dedication from its employees. They sometimes are called on to help with other jobs around a store, giving the company leeway to adjust to changes in shopper traffic. Workers are trained
MERCADONA CASE ANALYSIS
A hint about Mercadona
Mercadona is the Spanish largest supermarket (by sales) with a huge shops expansion that has enjoyed double digit growth for most of the past decade.
The secret to its success: a higher productivity that includes flexible working conditions, extensive employee training and performance-linked bonuses.
The company also establishes long-term relationship with their suppliers by accomplishing the same parameters as Mercadona thus in order to achieve responsiveness and effectiveness in their deliveries.
The chain had 1,356 stores and 70,000 permanent employees at the end of last year. Profit increased 19% to €474 million ($619 million) on €17.83 billion in revenue.
Mercadona’s goal is to provide an excellent customer service and to offer the best quality products at the lowest price possible. In order to satisfy customers’ demand Mercadona has always believed that it should first ensure employees’ satisfaction and that’s why they implement a human resources policy pioneer in its sector, characterized on a permanent contract offer to all staff, training plans, internal promotion and innovative measures to reconcile work and family life.
Mercadona invests about $6,500 and four weeks of training in each new employee—largely unheard of in Spain. Employees receive an additional 20 hours of training a year.
The company also pays above-average wages and never has conducted mass layoffs. If the company hits certain profit targets, nearly all employees receive a bonus of up to two months' salary. In exchange, Mercadona requires dedication from its employees. They sometimes are called on to help with other jobs around a store, giving the company leeway to adjust to changes in shopper traffic. Workers are trained