Continue Working With Your Chosen Least Admired Company Bob

Continue Working With Your Chosen Least Admired Company Bob Evans Far

Continue working with your chosen least admired company (BOB EVANS FARM) and its industry and complete the following: 1. Using your chosen company’s domestic environment identify its economic environment and compare and contrast it using Rostow and Galbraith (see lesson plan and resources). 2. Repeat the same for the global environment you have identified. 3. Research requirement: minimum 3 scholarly sources PLUS the text. 4. 5. Assignment MUST be submitted to turnitin.com and here (see turnitin.com forum for more important information). LO - 7 – Given two economic theories, the student will compare and contrast each theory using the company’s Domestic and Global environments.

Paper For Above instruction

Introduction

The troubled history of Bob Evans Farms (BEF), once a cherished family restaurant chain, exemplifies the challenges faced by companies operating amid fluctuating economic environments and shifting consumer preferences. This paper seeks to analyze the economic environment of Bob Evans Farms within its domestic and global contexts, employing the economic theories of Rostow's stages of growth and Galbraith's theory of countervailing power. Through comparative analysis, this study illuminates how these theoretical frameworks can elucidate the company's strategic responses to economic conditions, thus offering valuable insights into its current struggles and potential pathways to renewal.

Domestic Economic Environment of Bob Evans Farms

The domestic economic environment in which Bob Evans Farms operates is characterized by several socio-economic factors including consumer spending habits, labor market conditions, and broader economic cycles. Historically, the company thrived during periods of robust economic growth, where increased disposable income translated into higher patronage at casual dining establishments like Bob Evans. However, recent economic downturns, marked by sluggish GDP growth, inflationary pressures, and changing consumer behavior favoring faster, more convenient dining options, have adversely impacted sales (Johnson & Schofield, 2018).

Employing Rostow’s stages of economic growth, the United States today can be categorized as being in the 'Mass Consumption' stage, where economic prosperity fosters a preference for diverse and high-quality consumer goods and services. This environment has created challenges for Bob Evans, which has traditionally emphasized home-style, sit-down dining—a model increasingly displaced by emerging fast-casual and fast-food competitors (Kshetri, 2020). Rostow’s framework suggests that transitioning through these stages involves shifts in consumer expectations and technological adaptation, areas where Bob Evans has lagged, impacting its market share.

By contrast, Galbraith’s theory of countervailing power posits that large economic entities, including corporations like Bob Evans, face countervailing influences from labor unions, consumer advocacy groups, and suppliers. These forces can act to counterbalance corporate power, prompting the need for strategic adaptation. In the domestic context, the rise of health-conscious consumers and the increased bargaining power of suppliers have pressured Bob Evans to revise its menu offerings and operational practices, often at increased costs (Galbraith, 1956).

Global Economic Environment of Bob Evans Farms

At the global level, Bob Evans operates amid a complex landscape shaped by international trade policies, global supply chain dynamics, and economic power shifts among nations. The company's sourcing of ingredients and equipment increasingly relies on international markets, exposing it to fluctuations in currency exchange rates, tariffs, and sourcing costs. The COVID-19 pandemic exemplified vulnerabilities in global supply chains, disrupting inventory and operational continuity (Gereffi & Fernandez-Stark, 2016).

Applying Rostow’s model, the global economy can be seen as transitioning through the 'High Mass Consumption' stage, where increased global interconnectedness and consumer markets influence domestic firms. However, at the same time, global inequalities and trade tensions, such as the US-China trade dispute, pose challenges—particularly for food companies reliant on imports. Bob Evans’s international sourcing strategies have been impacted by these tensions, making cost management more complex.

Galbraith’s perspective reinforces the importance of countervailing forces on a global scale. Governments, international organizations, and multinational corporations influence market conditions and operational realities. For example, trade policies and tariffs can serve as countervailing powers that shape corporate behaviors, compelling companies like Bob Evans to adapt their sourcing and marketing strategies in a highly volatile environment (Galbraith, 1956). Likewise, the rise of global competitors and multinational food chains exemplifies the ongoing power struggles influencing market dynamics.

Comparison and Contrast of Rostow’s and Galbraith’s Theories

Rostow's stages of economic growth framework primarily emphasizes the developmental trajectory of economies—how nations and economic entities evolve through designated stages, characterized by technological advancement, increased consumption, and shifts in production. Rostow's model provides insights into where an economy, such as the US, currently stands and how transitions affect domestic market structures and business strategies. Conversely, Galbraith’s theory of countervailing power concentrates on the balancing forces within markets—where the influence of various stakeholders (consumers, labor, governments) acts as a check against corporate dominance, influencing corporate decision-making and competitive strategies.

In the context of Bob Evans Farms, Rostow’s model explains the macroeconomic stage guiding consumer behavior and economic growth. Its decline in success can be partly attributed to the company’s failure to adapt swiftly as consumer preferences shifted away from traditional, sit-down dining to more convenient options aligned with the 'Mass Consumption' stage's demands. Conversely, Galbraith’s theory contextualizes the internal and external pressures from various stakeholders—such as consumers demanding healthier options, labor unions advocating for fair wages, and suppliers bargaining for better terms—that influence strategic decisions.

While Rostow offers a developmental view, Galbraith provides a perspective on power dynamics and stakeholder influences. Recognizing these theories helps explain the organization's struggles—its slow adaptation to changing consumer priorities and the external pressures from stakeholders—and helps formulate strategic responses aligned with both macroeconomic development and stakeholder balance.

Conclusion

Analyzing Bob Evans Farms’ domestic and global environments through Rostow’s stages of growth and Galbraith’s countervailing power theories reveals the multifaceted challenges the company faces. Rostow's framework underscores the importance of technological and consumer-driven adaptations necessary for survival within a developed economy poised in the 'Mass Consumption' stage. At the same time, Galbraith’s theory highlights the significance of stakeholder influence and power dynamics, which continuously shape the company’s strategic landscape. A comprehensive understanding of these theories suggests that Bob Evans must innovate and adapt internally while managing external stakeholder pressures to navigate its current difficulties effectively. Embracing technological advancements, diversifying menu offerings, and fostering positive stakeholder relations could position Bob Evans on a sustainable path forward amid ongoing economic transformations.

References

Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: A primer. Center on Globalization, Governance & Competitiveness (CGGC), Duke University.

Galbraith, J. K. (1956). American Capitalism: The Concept of Countervailing Power. Houghton Mifflin Harcourt.

Johnson, R., & Schofield, S. (2018). Consumer behavior and the food service industry. Journal of Foodservice Business Research, 21(3), 255-270.

Kshetri, N. (2020). Digital evolution and the food industry: Key trends and implications. International Journal of Information Management, 54, 102122.

Gereffi, G., & Fernandez-Stark, K. (2016). Global value chain analysis: A primer. Center on Globalization, Governance & Competitiveness.

Additional scholarly sources provided for comprehensive analysis—however, only five references are exemplified here for brevity, and further scholarly sources should be included for a complete academic work, including recent journal articles and industry reports.