UK Food Retail Sector - Annotated Bibliography Example

I. INTRODUCTION The past twelve months have made the United Kingdom food and drink industry encounter demanding conditions. These conditions have been brought about by various aspects of the retail sector, affecting shoppers and producers. These aspects include amplified demand on family budgets, rise in unemployment, the banking crisis, and the accessibility of the credit goes on affecting consumer spending. In spite of all these confrontations, the United Kingdom retail sector has remained strong. Several theorists, analysts and governmental units have analyzed the food retail sector of the United Kingdom, its current trends and perhaps all factors that play a crucial role in the growth and development of foods and drinks industry. The following analysis will analyze these overviews, perspectives and outline an analytical review of competitors in the industry. Bain, C. and Michigan State University, 2007. Reconciling competing values for corporate social responsibility: EurepGAP standards in the Chilean fresh fruit value chain. Michigan: ProQuest According to Bain and the Michigan State University, the change in the practices of UK retailers, their institutes and market demand for fresh produce has provided positive impetus. This momentum is currently responsible for establishing a wider, multi-pronged endeavor by retailers to respond to the current risks and opportunities of fresh producers and retail stores in the suburbs of UK. Bain and the Michigan State University have shaped their assumptions and facts in accordance with the buying practices, development of solid anxieties and disagreements amongst food growers in the United Kingdom. Nevertheless, the writers have not managed to spend the time component to address the impact and trend of retailers and the industry’s trade. This forms a vital weakness since the appraisal of wider institutional transformations that have occurred within the agri-food system of the UK order statics represented in diagrammatic charts and graphs. Ogbonna, E. and Whipp, R., 2006. Strategy, culture and HRM: evidence from the UK food retailing sector. Human Resource Management Journal, Volume 9, Issue 4, pages 75–90, November 1999 Ogbonna and Whipp have focused on suppliers and federal authorities over retailers current rise in rank to directors of the food chain is significant and reviewed. From mid nineties, the retail food sector of the United Kingdom has exercised mass buying power. This has been accomplished through one of the most determined food retail sectors in the European Union. A considerable strength employed by Ogbonna and Whipp is the use of strategy, tradition and human resource management to foster the realization of commentator’s strategic management when selling foods and drinks. However, the phenomenon used to illustrate the impact of human resource management imposition in the food retail sector is too complicated. Eventually, the article does not clearly address the developments in this sector, despite the provision of empirical data on the recent use of HRM skills (Ogbonna and Whipp, 2006, p. 81). Great Britain: Parliament: House of Commons: Environment, Food and Rural Affairs Committee, 2011. The Common Agricultural Policy after 2013: fifth report of session 2010-11, Vol. 2: Oral and written evidence. London: The Stationery Office Numerous middle-income earners of the UK have extremely profited from the trend the changes have taken to date. The Environment, Food and Rural Affairs Committee of the UK government obtain benefits experienced by the foods and drinks industry has made from ecological impacts on growers. Another fact expressed in the book is the reception of the price adequate of foodstuffs and groceries that permit reinvestment in the sector by prime movers. A strong point emphasized in the research is the use of written proof released by the food and drink federation (FDP). From this report, it has been confirmed that the food retail sector is intensely competitive, and all its retailers are exceptionally aware of the high demand from buyers. I did not observe any significant weakness since the book has managed to address all possible situations for both retailers and their key suppliers, farmers (FRAC, 2011, p. 14). Hollingsworth, A., 2004. Increasing retail concentration: Evidence from the UK food retail sector, British Food Journal, Vol. 106 Iss: 8, pp.629 – 638 The article scrutinizes the effect of the competition commission’s report on the aggression amongst retailers in the food industry of the United Kingdom. Recent growths in the perspectives of retailers and growers in the food industry have been signified by the individual decisions made by each retailer in the sector, considering the demands of the market. The article has provided enough proof on the additional attention and consolidation in the food retail sector occurring alongside the buyer control. The major strength in the article provision of the propositions of the expansions on food supply chain concerning areas for immediate future worries. Nevertheless, the evidence provided is inadequate for analyzing the monopolistic behavior, creating a vague illustration of the significance of buyer attention and need for intentional directive (Hollingsworth, 2004, p. 631). Ogbonna, E. and Harris, L. C., 2002. Organizational Culture: A ten Year, Two-phase Study of Change in the UK Food Retailing Sector. Journal of Management Studies Volume 39, Issue 5, pages 673–706, July 2002 The article argues that much of the contemporary status of food and drinks suppliers and buyers in the UK are grounded on culture and performance. The relationship between culture and performance of individual firms plays a major role in the sustenance and success of this industry. The suggestion of several conclusions for theorists and economic analysts is a strength portrayed in the article. Much of the weakness in the article arises from the frequent use of theories and lack of statistical representation of the effects of the macro-cultures in the food-retailing sector of the United Kingdom (Ogbonna and Harris, 2002, p. 675). Dobson, P. W., Clarke, R., Davies, S. and Waterson, M., 2009. Buyer Power and its Impact on Competition in the Food Retail Distribution Sector of the European Union. Journal of Industry, Competition and Trade Volume 1, Number 3, 247-281 Dobson, Clarke, Davies and Waterson mainly focus on the most recent trends that the food retail sector in the European Union. Competition in this industry has been influenced by the buyer power from a social wellbeing perspective. This perception amongst retailers is able to create a buffer to a single drinks manufacturer, or food grower organization. The speculations made by the writers regarding the industry’s pattern across Europe create a strong view of the potentially effect on the buyers who rely on the nature and form of competition amongst retail chains. This strength overcomes any likely weakness in the article because the data provided indicates how well buying groups guarantee the competition of smaller food retailers in UK (Dobson, Clarke, Davies and Waterson, 2009, p. 256). Department for business, enterprise and regulatory reform, 2007. UK Government response to: ‘Stern – Initial comments from the Retail Sector.’ London: UK Department for business, enterprise and regulatory reform The Department for business, enterprise and regulatory reform clearly indicates that that the policy outline for changing UK into an efficient and successful low carbon economy requires the great effort of the food retailing industry. Since leadership is linked to communication, the UK government and the retail division have discrete, balancing roles except that roles have to be shared amongst all retailers. This report creates anomalies by not specifying the uncertainties that exist within the UK government policies relating to maintainable development. Nevertheless, the report has provided a complementary overview and statistics of the distinct policies and guidance provided by the government to the food processors and farmers supplying to the food industry. The oxford institute of retail management, 2007. Innovation in the UK Retail Sector: Report for NESTA. London: Oxford SAID business school The practice of innovation in the food retailing industry of the United Kingdom is badly understood, and insufficiently considered. Despite all these confrontations, the Oxford Institute of Retail Management realizes that the retail industry is the eighth largest industry in the global financial system. This is realized in terms of overall market worth and justifies the 7% overall rate-added and 10% of the working population in UK. The strength employed in the article arises from the comparison of the strong point of the food-retailing sector of the United Kingdom, with the global economy through distinct features of innovation employed by retailers. Food and Drink Economics branch, Defra, 2006. Economic Note on UK Grocery Retailing. London: Department for Environment, Food and Rural Affairs The United Kingdom grocery retail industry is subject to huge and numerous supermarket chains. Their size, visibility and control have created the much attention and argument they currently receive. Multiple retailing is a feature that describes the food retail sector in UK, carried on and developed from the late 1800’s. As a result, an increasing venture by huge multiples in the convenience sector led to the increasing trend in average store size. This acknowledgment serves as the main strength of the article since Food and Drink Economics branch of DEFRA looks into the innovative technology new retailers have permitted to pave way for huge returns. Vasquez-Nicholson, J., 2011. GAIN Report: United Kingdom retail foods. London: USDA foreign agricultural service The UK retail grocery sector has 82% of its market share controlled by only five superstore chains. The remaining market share is spread over hundreds of retail vendors. The retail sector dealing with food and drinks in the UK has certain features that compete with the US commodities within the European markets. Vasquez-Nicholson has provided a complicated market that reflects several patterns in the United States food retail sector. Nevertheless, the variations between these two industries have not been deeply supported by in-depth analyses, causing a weakness in the article (Vasquez-Nicholson, 2011, p. 32). Task 2: I. Competitor analysis of the UK’s major food (grocery) retail rivals (2010-2011) (FRAC, 2011, p. 14). Aspect of Performance Asda Tesco Morrisons Sainsbury’s % Market Share 16.9 30.8 11.6 16.1 Products or Services Groceries, processed foods, beverages and caffeine products Groceries, processed foods, beverages and caffeine products Groceries, processed foods, beverages and caffeine products Groceries, processed foods, beverages and caffeine products Marketing Strategy / Branding Raising the sales quarter by taking out store space and escalating the non-foods sales quarter Naturally discovering their buyers in every market and what they currently demand and in the future Concentrating on employing newness as a differentiator between its foodstuffs and those sold by competitors Change of taglines to reassure a wider range of foodstuffs and drinks to a larger market Financial Performance Eg. Different ratios Pre-tax returns for 2011 were recorded at 3,411,938, 000 pounds Pre-tax returns for 2011 were recorded at 67,573,000 pounds Pre-tax returns for 2011 were recorded at 16,479,000 pounds Pre-tax returns for 2011 were recorded at 3,239,500,000 pounds Locations / Distribution Has 26 depots all across UK Fresh foodstuffs depots at Peterborough  and Doncaster  Bought part of the part of the distorted Rathbones Bakeries operation for distribution Owns 13 regional centers (RDC’s), and a depot at Tamworth Leadership / Management A National Task Forces Committees Reference Committees, House of Delegates and Executive Committee comprise of the management outline Use of models of management and leadership mannerism hypothesis Dalton Philips is the present chief executive who substituted Marc Bolland contemporary leadership, led by Justin King seeks to improve retail dynamic property Employees has 150,000 workers, with 90,000 being recreational, and 60,000 working around the clock) Had 472,000 workers in 2010 Had 132,000 employees in 2011 Had 146,900 employees in 2010 II. PESTLE analysis A. Political factors Food Self-sufficiency report released by the UK cabinet (1990-2010) 120 (total cereals) 100 (%) 80 60 40 20 (fresh fruit) 0 1990 1995 2000 2005 2010 B. Economic factors UK expenditure on Foodstuffs in percentage of taken as a whole on buyers expenditure from 2006 to 2010 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 2006 2007 2008 2009 2010 C. Social factors Downstream traffic to UK grocery retail sectors from social networks 1.2 1.0 0.8 (%) 0.6 0.4 0.2 May ‘07 Sep ‘07 Jan ‘08 May ’09 Sep ’09 Jan ’10 May ’10 Sep ’10 Jan ’11 D. Technology factors UK internet traffic towards grocery retailers 10.0 8.0(%) 6.0 4.0 Sep 07 Jan 08 Apr 08 Aug 08 Dec 08 Mar 09 Jul 09 Nov 09 Mar 09 E. Environmental factors Socio-economic features of UK food retail buyers in mid 2010: These features are accountable for the creation of general environmental trends within the industry Vasquez-(Nicholson, 2011, p. 16). Tesco (%) Asda (%) Sainsbury (%) All 27 18 13 Men Women 26 27 16 19 13 13 15-19 (age) 19 24 7 20-24 24 19 9 25-34 29 18 15 35-44 24 23 12 45-54 28 15 16 III. Most significant factors shape strategic direction UK food retailing sector future over the next three years A. Information technology The field of innovation is one of the fields that can be developed through certain strategies to trend the UK retail sector. The UK foodstuff retailing industry can choose to put information technology into practice, and assist supermarkets in effective management catalog, logistics and warehousing. Therefore, the general costs of production will decrease using online trading as a major business operative (OIRM, 2007, p. 44). B. Socio-economic patterns The socioeconomic shifts and customer performance could be turned and used as the main commerce driver to reveal a significant role played by socio-economic patterns. These patterns shape the future of the food-retailing sector of the United Kingdom. C. Improved industry analysis The following few years require constant analysis of the food retail market to introduce an improved overview of the global retail market. This overview will challenge the participators of the food-retailing sector of UK to come up better policies, strategies and prices that will boost competition and widen markets for consumption. Improved statistics from the overview of the grocery, drinks and foodstuffs market and sector in the UK will provide the performance of the participating supermarkets and corporate chain stores a much better outlook of the consumer’s demands (OIRM, 2007, p. 17). D. Exercise more buying power The buying power of the retail players in the food retail market could imply the halt of the dominance of the market by particular supermarket owners. This way, more food retail companies will be encouraged to rise and increase competition amongst all food producers (DEFRA, 2006, p. 11). UK can also face a fall in food prices if more buying power is reached a majority of industry players. A decrease in food prices implies improved living standards for the people of UK. E. Competitive advantage Food retail players in UK could consider growing their stores further, in terms of working hours. As an alternative, several food retailers can choose to initiate new metro and express stores that promote internet transactions and smoother distribution and payment methods. These methods reduce insecurity and fraud, implying increased consumer confidence and competitive advantage (OIRM, 2007, p. 21). F. Change in cultural trends Cultural trends amongst retail food buyers could be scrutinized through remarks of how the organization responds. Such responses can be made through schedules, rituals, narratives, organizational structures and systems (DBERR, 2007, p. 28). Certain assumptions brought up by economical analysts and rival retail food companies are not appreciated. Changes in cultural trends will put forward clues with welcoming and encouraging strategies that enhance corporate responsibility and develop the sector’s entire market. G. Role of senior management The senior management of major food retailers in the UK food sector needs to deepen its function in accomplishing an accurate sense of balance between the normal trade that produces returns, and the need for new streams of earning revenue (Bain and Michigan State University, 2007, p. 147). This can be brought about by the introduction of innovative employees or coordinators who can steer the company from potential tensions between these two functions of top management. H. Future environmental regulation Ecological laws play an important role in the lengthy property portfolios of farmers and companies that grow foodstuffs. These regulations are a surfacing driver towards future energy conservation and environmental preservation. This initiative could be used by retailers alongside considerable energy users and distributors. Such a trend will incline other players in the food retail sector to initiate increased corporate and ecological responsibilities adding complexity to the purpose of logistics (OIRM, 2007, p. 39). IV. Appendix 1. How did you organize for this coursework?  I have began the course work with a brief introduction that allows the reader to get a glimpse of the material, terminology and factors expected to be observed in the text. Brief summaries, main points, strengths and weaknesses of various writers, analysts and governmental units follow the introduction. These brief bibliographies provide the reader with the assumptions, studies results and assumptions of different individuals and organizations concerning the food retailing industry in UK. 2. What difficulties were encountered and how did you overcome them?  The greatest difficulty I encountered was the collection of valid data from the bibliographies to compile legit graphs and diagrams for the PESTLE analysis. Obtaining annual reports of major food retail players in the UK industry was also troublesome, alongside its compilation for the competitor analysis. 3. How well do you think your work meets the grading criteria?  I believe this paper has addressed all areas required by the grading criteria provided. The analysis of this coursework has been legitimately complied, structured and presented in a clear and understandable manner. 4. What have you learned from this coursework?  I have learnt many several facts and features of the United Kingdom’s food retailing sector. Some of the features include: The UK retail grocery sector has 82% of its market share controlled by only five superstore chains. The retail industry is the eighth largest industry of the global financial system in terms of total market value and accounts for 7% of total value-added and 10% of the working population in UK. The UK government and the retail division have discrete, balancing roles except that roles have to be shared amongst all retailers. Socio-economic features of UK food retail buyers in mid 2010 were liable for the formation of wide-ranging ecological shifts in the business. 5. What would you do differently if you had to repeat the coursework? Information provided in this coursework is quite clear and corrections are not necessary. However, data on the progress of major food retail competitors such as Asda, Morrisons and Tesco constantly change. Therefore, an update would increase the accuracy of the paper. References Bain, C. and Michigan State University, 2007. Reconciling competing values for corporate social responsibility: EurepGAP standards in the Chilean fresh fruit value chain. Michigan: ProQuest Department for business, enterprise and regulatory reform, 2007. UK Government response to: ‘Stern – Initial comments from the Retail Sector.’ London: UK Department for business, enterprise and regulatory reform Dobson, P. W., Clarke, R., Davies, S. and Waterson, M., 2009. Buyer Power and its Impact on Competition in the Food Retail Distribution Sector of the European Union. Journal of Industry, Competition and Trade Volume 1, Number 3, 247-281 Food and Drink Economics branch, Defra, 2006. Economic Note on UK Grocery Retailing. London: Department for Environment, Food and Rural Affairs Great Britain: Parliament: House of Commons: Environment, Food and Rural Affairs Committee, 2011. The Common Agricultural Policy after 2013: fifth report of session 2010-11, Vol. 2: Oral and written evidence. London: The Stationery Office Hollingsworth, A., (2004). Increasing retail concentration: Evidence from the UK food retail sector, British Food Journal, Vol. 106 Iss: 8, pp.629 – 638 Ogbonna, E. and Harris, L. C., 2002. Organizational Culture: A ten Year, Two-phase Study of Change in the UK Food Retailing Sector. Journal of Management Studies Volume 39, Issue 5, pages 673–706, July 2002 Ogbonna, E. and Whipp, R., 2006. Strategy, culture and HRM: evidence from the UK food retailing sector. Human Resource Management Journal, Volume 9, Issue 4, pages 75– 90, November 1999 The oxford institute of retail management, 2007. Innovation in the UK Retail Sector: Report for NESTA. London: Oxford SAID business school Vasquez-Nicholson, J., 2011. GAIN Report: United Kingdom retail foods. London: USDA foreign agricultural service Read More