Supermarkets are discernible due to their propensity to operate self-service retailing structured in distinct departments for all major consumer products, mostly grocery food items and other household goods while providing a discount pricing structure, high value supply chain,…
These have led to many analysts accusing them of taking advantage of their market power to evolve an unfair advantage. The Competition Commission (CC) confirmed this indicating that they indeed enjoyed higher gross profits as compared to similar firms in other countries, though their return on capital employed (ROCE) was substantially lower (Smithy, 2002).
The total UK grocery stores sales in 2005 generated total sales volume of approximately £120 billion, which was an increment of 4.2 percent from the previous year. In this category, grocery items contributed 95, which accounts for almost half of all retail sales and 13 percent in household spending. The Office of Fair Trading (OFT) reported that by 2005, the five largest supermarket chains had a market share of grocery items of approximately 75 percent (OFT, 2006). The OFT reports that the expansion of the large supermarket chains into the convenience store sector (those below 280 sq metres) had considerably expanded this market segment, from 54 stores in 2000 to 1306 by 2005 within the UK market.
According to IGAD Research (2009), there are 92,796 grocery stores located in Britain by end of 2008. This are divided into four main segments including: convenience stores; traditional retail; hypermarkets; supermarkets and superstores; and online channel [See Figure: 1]. IGAD Research reports that by 2008, the UK grocery market had grown to £146.3bn, a 4.8 percent rise from 2007. Clarke (2001) reports that the big five supermarket chains account for half of all food retail sales within the UK market while the two largest (Tesco and Sainsbury) command a market share of third of the market share. Due to their predominance, these supermarkets have evolved monopolistic tactics since they control the downstream market or the retail level hence are able to fix prices to generate higher profits by using their market power ...
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The term STEEPLE is an acronym for Social, Technological, Economic, Environmental/ Ecological, Political, Legal and Ethical factors (Kew and Stredwick, 2010). The purpose of this paper is to first conduct a STEEPLE analysis of the UK supermarket sector, and identify the external contexts which influence this segment of the retail industry.
Multiple formats normally range from online applications, such as Facebook, Twitter, online purchasing via credit cards and so on. The major intention of using such ethical formats is normally to attract customers. Companies, such as Blackberry, Sainsbury’s and Tesco, use multiple formats in order to attract more customers.
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The author states that one of the key points covered in the article include the objections against a monopoly as understood by the economists. The argument against monopoly is that in the absence of competition, monopolies can charge whatever they want and the charged prices are usually higher than the prices under perfect competition.
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In several occasions, leadership has been confused to be synonymous with seniority. However, there has been clear evidence of the existence of powerful leaders with very lower ranks. Besides, some forms of leadership requires inborn traits and this has brought several contradicts as to whether a leader should be born or made (Van and Suino 2012).
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This whole process is known as supply chain and the management of this process is known as supply chain management (Bowersox, Closs and Cooper, 2007).
The design, scheduling, implementation, organize and monitoring of flow of goods from one