Future-Proofing International Purchasing and Supply Chain Management

The assignment requires students to critically evaluate the future challenges that their chosen organization may face in the next 30 years regarding International Purchasing and Supply-Chain Management. The report should provide a critical analysis of the potential challenges, and suggest strategies for the organization to stay sustainable and competitive. The assignment is worth 30% of the grade.

Assignment Case Study
Module – International Purchasing and Supply-Chain Management
Module Code 6LO501
The Worlds’ Top 10 Retailers, Dec 2015
http://www.investopedia.com/articles/markets/122415/worlds-top-10-retailers-wmt-
cost.asp accessed on 2nd Nov 2016 If you visit the website above you can link
electronically into lots of useful information to start your research. There are a number of
similar sites which provide useful preliminary information.
American and European companies dominate the ranks of the world's largest publicly traded
retailers. Most are global companies with vast distribution networks and thousands of retail
locations spanning the globe. While many of these companies operate retail websites,
Amazon.com stands out as the only fully online retailer to make the list. The companies are
ranked according to sales figures reported in financial statements for the most recent fiscal year
end.
1. Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (NYSE: WMT) is the world's largest brick-and-mortar retailer by a
substantial margin. The company reported worldwide revenue of $485.7 billion for its 2015
fiscal year, a year-over-year increase of about 2%. It operates 11,453 store locations in 27
countries. About $228 billion of its 2015 revenue, nearly 60% of the total, is attributed to
operations in the United States. Most of the company's store locations worldwide operate
under the Walmart brand. However, the company also operates a number of other retail chains,
including Sam's Club membership warehouse stores around the world, ASDA stores in the
United Kingdom, Bodega Aurrera stores in Mexico and Seiyu stores in Japan. As of December
2015, Wal-Mart Stores, Inc. has a market capitalization of about $194 billion.
2. Costco Wholesale Corporation
Costco Wholesale Corporation (NASDAQ: COST) is a membership-only warehouse retail chain
with operations in nine countries. The company reported worldwide revenue of $112.6 billion
for fiscal year 2014, including more than $2.4 billion in revenue attributed to annual customer
membership fees. Year-on-year revenue growth amounted to about 7.1%. Costco operates 671
warehouse locations around the world, including 474 locations in the U.S. The company opened
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30 new warehouse locations in 2014 and plans to open another 34 locations in 2015. As of
December 2015, Costco has a market capitalization of $73.6 billion.
3. Kroger Company
Kroger Company (NYSE: KR) is the third-largest retailer in the world by revenue and the largest
grocery retailer in the U.S. It reported total sales of $108.5 billion for fiscal year 2014, an
increase of 10.2% over the prior year. Kroger operates 2,625 supermarkets and multi-
department stores, which combine to make up 93% of company revenue. The company also
operates 782 small-format convenience stores and 326 jewellery stores. It operates stores
under more than 30 different brand names, including Kroger, Ralphse, Fry's, Fred Meyer,
Food4Less, Littman Jewellers and QuikStop. Kroger has a market capitalization of $40.4 billion.
4. Walgreens Boots Alliance, Inc.
Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is a holding company formed during the merger
of drugstore giants Walgreen Company and Alliance Boots at the close of 2014. For the fiscal
year ending on Aug. 31, 2015, Walgreens Boots Alliance reported sales of $103.4 billion.
However, this figure only includes sales arising from Alliance Boots operations after the merger
was completed on Dec. 23, 2014. Consequently, true full-year results for the combined company
are not yet available. The combined company operates more than 12,800 drugstore locations in
11 countries. It has a market capitalization of $92.2 billion.
5. Tesco PLC
Tesco PLC is a global grocery retailer headquartered in the U.K. For fiscal year 2015, the
company reported revenue of £62.3 billion excluding value-added tax (VAT), equivalent to
approximately $101.3 billion at average exchange rates for the reporting period. This represents
a 2% decline in revenue compared to the prior year, making Tesco one of only two companies
on this list not experiencing sales growth. Tesco operates 6,814 stores in 11 countries. In
addition to its grocery stores in the U.K. and Europe, Tesco has major operations in Thailand,
Malaysia, India and China. The company has a market capitalization of $19.9 billion.
6. Carrefour SA
France's Carrefour SA reported sales of €74.7 billion excluding VAT, equivalent to approximately
$99.1 billion at average exchange rates for the period. Revenue growth amounted to 2.9% on
the year. At the close of 2014, Carrefour had 10,860 store locations in 33 countries. It operates
stores in a variety of formats, including small convenience stores, mid-size supermarkets and
large-scale superstores offering both food and general merchandise. Carrefour opened or
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acquired a total of 1,128 new stores during the 2014 year, adding more than 650,000 square
meters of retail space. The company has a market capitalization of about $22 billion.
7. Amazon.com, Inc.
Amazon.com, Inc. (NASDAQ: AMZN) is the world's top online retailer. It reported sales of
approximately $89 billion for the 2014 fiscal year, an increase of about 19.5% over the previous
period. The company operates 14 country-specific retail websites and ships products to
customers around the globe. About 62% of Amazon.com sales take place outside the U.S. Both
domestic and international sales figures have shown continued fast growth in recent years. Sales
of media products account for 25.3% of net sales, while electronics and other general
merchandise account for about 68.4%. As of December 2015, Amazon.com has a market
capitalization of $314 billion, the highest market cap of any company on this list by a substantial
margin.
8. Metro Group AG
Germany's Metro Group is a European retail giant with far-flung operations in Russia, China,
Japan, Thailand, Pakistan and India. The company reported sales of €63 billion excluding VAT,
equivalent to approximately $85.5 billion at average exchange rates for the period. Sales were
down about 4% from the prior year. Metro Group operates 2,200 stores under several brands,
including the warehouse retail chain, Metro Cash & Carry, which is responsible for more than
48% of the company's sales. Other Metro Group retail operations include the supermarket chain
Real, the consumer electronics retailers Media Markt and Saturn, and the department store
chain Galeria Kaufhof. Metro Group has a market capitalization of $9.9 billion.
9. The Home Depot, Inc.
The Home Depot, Inc. (NYSE: HD) is the world's biggest home-improvement retailer. It reported
sales of $83.2 billion for the 2014 fiscal year, an increase of about 5.5% over the previous year.
The company operates 2,273 stores in total, including 1,977 in the U.S. and its territories, and
the remainder in Canada and Mexico. The Home Depot offers a variety of proprietary and
exclusive brands in its stores, including Hampton Bay home products, Glacier Bay home fixtures,
Vigoro lawn care products and Husky tools, among others. As of December 2015, The Home
Depot has a market capitalization of just over $170 billion.
10. Target Corporation
Target Corporation (NYSE: TGT) reported revenue of $72.6 billion for fiscal year 2014, an
increase of 1.9% over the prior year's results. Target is a big-box retailer with 1,790 stores across
the U.S. In addition to its large-format stores, the company also operates eight CityTarget stores
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in an ongoing test phase. CityTarget locations are designed as small-format stores for densely
populated urban areas. Further expansion in this segment is planned for fiscal year 2015. Target
has a market capitalization of $45.3 billion.
Your Assignment
Choose any ONE of the top ten retailers listed above.
For your chosen organisation:
Task 1 - Critically evaluate their approach to International Purchasing and Supply-Chain
Management, against models and concepts that have been explored in this module and
from your wider reading. Critical evaluation requires you to take a well-structured and
balanced view of what is good in your chosen organisation and also what does not work
so well and could be improved. (70% of the Grade)
Task 2 – Critically evaluate the future challenges that your organisation is likely to face in
the next 30 years or so, in terms of International Purchasing and Supply-Chain
Management. What do you suggest that they need to do to address these future
challenges and stay sustainable and competitive? (30% of the Grade)
Format
An Individual Management Report of a maximum of 3500 words in length.
Criteria
Students must be able to demonstrate an understanding of a range of relevant theories
and analytical models and apply them to the specifics of your chosen organisation. This will
provide a structure to aid your analysis of your organisations’ International Purchasing and
Supply Chain Management approach. Significantly more depth is required than mere
descriptions of information that you have found during your research.
You will be required to show evidence of research and analysis about your chosen
organisation and the key elements of a successful approach to International Purchasing and
Supply-Chain Management. You will be expected to make recommendations about
improvements that the organisation could make to its approach, with a clear academic
rationale to support your ideas.
Launch of Assignment:
Thursday 10th November 2016
Assignment Submission:
Electronic Submission by Friday 6th January 2017
Visit www.derby.ac.uk/esub for guidance on electronic submission of assignments.
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Evidence of wider
research
Evidence of analysis
and justification
Critical evaluation Application of the
theoretical
concepts
References,
arrangement and
language
Applicable to Coursework
Excellent
(70% - 100%)
The output shows a level
of original thinking & a
thorough understanding
of the subject area. High
quality sources have
been sought and
triangulated.
Independent primary
research designed and
undertaken.
All research analysed
and synthesized to
produce clear, coherent
justification for market
decisions. Identified the
relevant strategies
critically analysed and
evaluated.
A critical analysis of the
relevant issues; a
strong, reasoned
argument with a
detached evaluation.
The best pieces of work
show strong synthesis
Relationships
between themes
and ideas of critical
evaluation fully
explained and
clearly linking
academic theory to
the main concepts.
References are of high
quality & in the correct
format. No or very few
proofing errors.
Very Good
(60% - 69%)
There is evidence of a
good understanding of
the subject area.
Additional secondary
research has been sought
and verified. Primary
research attempted.
Clear evidence of
research analysis and
logical reasoning to
justify the
implementation of the
strategies are well
reasoned and clear.
A clear and consistent
exploration of all the
main points backed up
with evidence. A clear
attempt at critical
evaluation – try to
ensure that you put
forward a balanced
argument.
Clear evidence of
relationships
between critical
evaluation ideas
and themes. Sound
application of the
relevant chapter
models.
Correct referencing
style with only very
minor errors.
Good use of
paraphrasing. Work
has a clear structure &
the argument is
focused making the
decisions easy to
follow. Only minor
spelling or grammatical
errors.
Good
(50% - 59%)
Some good evidence of
course readings and
associated texts. Use the
information in the
module notes as a
springboard for wider,
independent reading.
Research has more than
one secondary source.
Some evidence of
analysis and reasoning
to justify new strategies
and markets chosen.
Some evaluation of
market entry strategies
and how these would
be implemented
The work is rather
descriptive. However,
there is an indication of
the ability to critically
evaluate. Weigh up the
arguments surrounding
the issues; use your
own opinions and,
more importantly,
reference to the work
of others.
Some evidence of
linking ideas and
themes from critical
evaluation. More
than one colour
used and some use
of images to
broaden visual
aspect.
Occasional errors with
referencing. More
paraphrasing beneficial
(i.e. explain in your own
words) Possible
structural and/or clarity
problems. Work has
occasional spelling
and/or grammatical
errors.
Satisfactory
(40% - 49%)
There is a basic
knowledge of the subject
and evidence that basic
reading has been
completed. Single
secondary source.
Little evidence of
analysis or justification.
Strategies sketchy and
unsubstantiated.
A mixture of general
commentary & factual
information gained
from lectures. Ensure
that you read the
question carefully -
what it is asking you to
do?
Very basic
understanding of
the subject material
with little linkage
between ideas and
themes. No models
applied or used.
References are weak
and/or not in correct
format. Some attempt
at structure but not
clear in what trying to
convey. Work has
frequent spelling
and/or grammatical
errors.
Unsatisfactory
(35% - 39%)
There is minimal
evidence that the
basic/core readings have
been completed. Little
research to use as basis
for analysis
Strategy not identified.
Little evidence of
analysis. No strategy
entry plans presented.
Little evidence of
critical thinking
Poor quality which
shows minimal
structure of
relationships
between ideas and
themes.
Work displays no
quality referencing and
is minimal. Sequence of
information is difficult
to follow. Some errors
with output
construction. Poor
spelling /grammar.
Very Poor
(1% - 34%)
There is no evidence that
the basic/core readings
have been completed.
No research to use as
basis for analysis
No evidence of analysis.
No market entry plans
presented.
No evidence of critical
thinking
Very poor quality
which shows no
structure of
relationships
between ideas and
themes.
Work displays no
quality references.
Sequence of
information is difficult
to follow. Serious error
with output
construction. Very
poor spelling
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