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Askew's Foods versus Wal-Mart: Sustainable versus Low-Cost

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A family-owned grocery business, Askew's Foods Inc. (Askew's), had to decide how to handle the threat of a Wal-Mart Superstore, which included a grocery department, coming into its market area. Before the news of Wal-Mart's potential arrival, Askew's had already purchased a site on which to build a second store in the city's uptown area, and the board needed to approve the design for the new building. Askew's had a long-standing tradition of being an environmentally sensitive, socially responsible, and community-minded retailer, and the board wanted to uphold those corporate values in the design and operation of the new Askew's store; however, the pending arrival of this low-cost competitor had to be considered in the decision. Was it fiscally responsible for Askew's to stay true to its principles and build a state-of-the-art, sustainable grocery store, or, given the new threat to its market share and profitability, as well as limited funding from its bank, should it opt for the more conservative and less expensive standard box option? Was cost the only consideration?
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