Introduction Trader Joe’s Company founded by Joseph “Joe” Coulombe is a chain of specialty grocery stores with headquarters in Monrovia, California. As it is described by Agert and Roberto (2013), one American magazine Trader Joe’s was named the second-best supermarket in the country in 2012 and the 11th most innovative firm in the United States in 2011. To assess the company’s performance, and to provide recommendations for future strategic actions, it is important to analyze the company’s current situation. Situation Analysis Firstly, it is necessary to conduct a situation analysis. Situation analysis is aimed at data collection and evaluation to understand the essence of an organization, its industry, its competitors, and customers. There is a mixed variety of methods in situation analysis such as four-box business model analysis, balanced scorecard analysis, PEST analysis, Porter’s five forces analysis, key success factors for the industry, competitive advantage analysis, competitive strategy analysis, and SWOT analysis. Four-Box Business Model Analysis Trader Joe’s has an excellent example of a customer value proposition. Trader Joe’s stores mainly sell a limited range of food items, which the customer may not find in other supermarkets. Trader Joe’s (n.d.) states “it’s not complicated; we just focus on what matters — great food + great prices = value” (para. 4). Trader Joe’s gives its customers a sense of satisfaction because they can find something unexpected at reasonable prices. The profit formula is used to determine the profitability of a company. It is common for all retail businesses. Profit is made when the selling price is greater than the cost price. Whereas, when the cost price is greater, it means loss. The cost price reflects both variable and fixed costs of every item. The business model of Trader’s Joe is simple. Although the company offers less product variety, it sells products at a lower price in comparison with its competitors. Agert and Roberto (2013) claim, “because the company stocked limited varieties of each product, its buyers purchased very large quantities of each SKU at low prices” (p. 6). It enables the company to buy items directly from manufacturers, rather than working through distributors or wholesalers. Balanced Scorecard Analysis To understand how effectively Trader Joe’s is achieving key business objectives, it is necessary to identify key performance indicators. The most important key performance indicators in the retail business are total sales, gross profit margin, and sales per hour. According to Agert and Roberto (2013), “experts estimated that Trader Joe’s generated approximately $10 billion in annual revenue” (p. 5). The annual revenue and grocery sales of Trader Joe’s are less than the revenue and grocery sales of such chains as Whole Foods, Kroger, Safeway, and Supervalu (see Appendices A and B for more information on annual revenue and grocery sales). Net promoter score is a key performance indicator that is used to measure customer loyalty. Trader Joe’s had the highest net promoter score among four supermarket chains in 2015 (see Appendix C for more information on net promoter scores). It is impossible to investigate and analyze other financial key performance indicators because the company is privat