Case study of stew Leonards an entrepreneur

By umair abrar

Q Do you think that stew Leonard was a successful entrepreneur? If so? Why? Being the successful entrepreneur you have the four characteristics of achieving success 1) Passion for the business 2) Product and customer focus 3) Tenacity despite failure ( typically trying something new the failure rate associated with their effort is naturally high ) 4) Execution intelligence ( ability to fashion a business idea into a viable business)

Passion for the business

Tenacity despite failure

successful entrepreneur

Execution intelligen

Product and customer focus

Stew Leonard have all characteristics. successful entrepreneur are those who can bring change in the market very effectively because entrepreneurs can create something new in the tradition system same is the case with stew Leonard they can come to the market with some new ideas and builds his own store is THE WORLD LARGEST DAIRY STORE .Big store is not suddenly happen its background a story .his father wake up 3 oclock in the morning take the milk from the farm and then bottled it. This very hardworking is only for delivering customer satisfaction As I think that the philosophy of stew Leonards was very great and successful and it Is closed related to marketing strategy of i-e to

satisfy the customer and the objective of any business organization is to satisfy the customer. Stew Leonard is also the leader of the organization because most leader preference is teamwork we can achieve the success very easily through team work. and the same is the philosophy of stew leonard. One of the example described in the case that when any product sale per week Is less than 1000 they can remove from the shelves.stew leonard says the managers can focus on only those products that is more selling.One thing that he can entertain is customer feedback when any entrepreneurial or a company that use customers feedback to improve your service they can help to gain success. Employees received rigorous training in customer service, the company strove to promote from within as much as possible, and outstanding performance was celebrated on a regular basis. "Rule #1 -- The Customer is Always Right"; Rule #2 - If the Customer is Ever Wrong, ReRead Rule #1." Q) Why would someone like Stew Leonard, who was doing so many things right, do something so terribly wrong? In the business environment most companies can legally work within the organization and follow rules and regulations of that country. But some are uses illegal way to save money. When he can remove those items that sales is less than 1000 per week he was doing so many things right because he can focus on the quality of those product that sloes Is more and due to his strategy the Guinness book of world record for the greatest sales per square foot of any food store in the United States. Yes he was doing so many things right and one of the important things is care of customers and when the first time he was open the store in Connecticut. Though plastic bags are illegal in Westport, Stews provides paper bags upon request to satsfy the customer.

Stew Leonard's won a spot on Fortune's list of "100 Best Companies to Work for in America."

Q) Who are the stakeholders in this case? And how much of a stake does each group have in the failure of the company? And all of us involve in this situation and equally can suffer the loss due to strategy of skipping profits There are no outside the stew Leonard family there are one is stew Leonard junior and stew Leonard senior With the help of three other company executives--Frank and Stephen Guthman (who were his wife's brothers) and Tiberio Belardinelli--Stew Leonard, Sr., had masterminded a decade long conspiracy to skim profits from the store's cash registers."I made a mistake," he said as he left the New Haven federal courthouse after entering his guilty plea. "I'm very sorry." He refused to comment further Q) What are the moral, ethical and legal issues involved in the conduct of Stew Leonard as an entrepreneur? Whatever your business are company, entrepreneur, small business etc you have one thing in mind if you continue your success i-e cant broken the law of those country in which you doing business. Because when we broke the law this is an illegal activity .ethics are doing things right or wrong Stew Leonard are involved in both i-e ethics and legal issues. 1993 Stew Leonard convicted of tax fraud; company is fined for labeling products with incorrect weights. This news can open the inside of stew Leonard company and it is shocked to its regular customer especially the labeling product
Boom period Before tax scandal

After tax scandal

One side the stew Leonard touches the height of success and awarded by president and in the Guinness book of world record there was a record sales generated by stew Leonard on the other side the big fraud of regarding the tax was held with federal government to defrauding the government. And it is the larger tax fraud In the history of cinnecticut.Stew Leonard's loyal customers were shocked, both by the tax-fraud scandal and the weight violations. His store sale decrease from 46%to 7.5%. Q) You have been hired as a consultant to the Leonard family to give advice on what actions the company should now take. What would be your recommendations to the family for restoring customer confidence? There is a time to rebuild to the store on his previously success the weight scandle can impact on customer behavior. Avoid illegal way because it can loss to the government as well as the company reputation will be suffer if the illegal way was detected Stew Leonard junior is also learn business education and he can know all the matters of tax. He can handle easily but stew Leonard is very big organization the suggestion is that they hire an lawyer for the organization to handle all matters of law for example tax, and all other legal issues that is coming up in business life of the organization Stew Leonard's rebuttal has been running in Fairfield County newspapers advertisements in recent weeks. In characteristic Stew Leonard style, the ad has a picture of Mr. Leonard's sons, Stew Jr. and Tom, flanking a store employee dressed as a cow. A cartoon balloon comes out of Stew Jr.'s mouth announcing, "Only 5 Products Were Actually Off Weight." Without admitting wrongdoing, the company reached an agreement with the NLRB to post notices stating that the company would not interfere with attempts to unionize.