Management Report: Analysis of UK Food Retailing and Stakeholders

This report provides a comprehensive analysis of the UK food retailing industry, focusing on competitive forces, market dynamics, and key players like Tesco, Sainsbury's, and Aldi. It assesses the level of competition, the impact of suppliers, and the bargaining power of customers and new entrants. The report also examines the resources and capabilities of an independent food shop, "A Canteen", using the VRIN model to evaluate its competitive advantage. Furthermore, the report analyzes stakeholder relationships for Essex Fire and Rescue Service, identifying managerial responsibilities. Finally, it discusses Sainsbury's acquisition of the Home Retail Group Argos, evaluating the motivations behind the strategic move. The report offers valuable insights into the complexities of the UK food retail market and the importance of strategic management.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

1MANAGEMENT
The evaluation of the internal and external environment is significantly important for
the modern business organizations. The evaluation of the external environment is
significantly important for the modern organizations as that enables the organizations to
analyse the impact of the competition in the industry and restructure their strategies in
accordance to that. Along with that, the assessment of the external environment plays a
crucial role for the organizations in the effective management of the different market forces
in an attempt to improve the financial stability of the organizations. Adding to the point of
external environment, the assessment of the internal environment also plays a crucial role for
the organizations in the effective management of their business conduction (Gupta 2013).
The internal analysis helps the organizations in the effective identification of the strong
points along with the weaknesses. In addition to this, the organizations have the chance to
identify the opportunities and threats through conducting the internal analysis (Grant 2016).
Hence the importance of the external and internal analysis is pretty evident in the modern
business context.
The paper is focused in the elaboration of the level of competition in the food retailing
industry of UK. Adding to this, the paper also analyses the impact of the competitive forces
on the food retailing in Chelmsford City Centre. In addition to this, the paper discusses
regarding the resources and capabilities of a chosen independent food shop in the form of “A
Canteen”. The paper includes an analysis of the VRIN model in order to identify the method
in which the chosen organization deals with the competition of the market. Apart from this,
the paper analyses the stakeholder relationship for Essex Fire and Rescue Service. Along with
that, it identifies the responsibility of the managers in the effective management of the two
identified stakeholders. The paper also discusses regarding the change that Sainsbury had
with the acquisition of the home retail group Argos along with a precise assessment of the
motivation that triggered the acquisition.

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A.
Competitive Forces:
The UK food retailing industry is seen to be significantly competitive and that is
pretty evident with the significant business conduction of the retail organizations such as the
Tesco, Sainsbury, Aldi along with the Asda (Tesco.com 2019).
(Information: Annual growth in food retail sales in the United Kingdom (UK) from 2014 to
2017)
(Information Courtesy: Statista.com 2019)
From the above mentioned information, it is pretty evident that the annual growth of
the food retail industry of UK is significantly increasing. The mentioned industry had a
growth of 1.3% in the year 2014 and in following year, it faced a significant decline

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(Statista.com 2019). In the year 2016, it again had a significant growth and increased to 0.9%
compared to the 0.2% of the previous year (Statista.com 2019). In the year 2017, the food
retail sales of the mentioned industry again had a significant jump to 1.1% and that defines
the growth of the mentioned industry (Statista.com 2019). Hence the base of the profitability
and the significant opportunity of growth is seen to be a key factor for the organizations
operating in the food retail industry of UK. In addition to this, the substantial generation of
revenue from the part of the organizations operating in the mentioned industry proves the
growth that the market is currently experiencing and that is also significant in stating the
increasing level of competition that the industry is facing. The strategies such as the
competitive pricing, improvement of the quality in the products of the organizations
operating in the UK food retail industry along with the efficient sourcing of the raw material
are seen to key factors responsible for the increment n the intensity of the competition. Hence
it is pretty visible that the mentioned industry faces a significantly high competitive rivalry
amongst the organizations.
On the other hand, the chosen industry is seen to be filled with notable number of
suppliers for the production of the quality materials. Adding to this, the majority of the
suppliers of the mentioned industry are able to portray the characteristics such as on time
delivery, appropriate delivery, delivery of the quality materials along with proper costing of
the products. Hence the industry is seen to face limited impact of the suppliers (Marsden
2018). Apart from this, the significant business conduction of the market leading food
retailers is capable of justifying the fact that, there are considerable number of organizations
that are applying the low pricing strategies in order to attract the customers in a more efficient
manner. Along with that, the application of the innovative design techniques in the products
with a precise focus on the efficient achievement of the preferences or the requirements of the
customers is seen to belong to the upper section in the list of priorities for many of the

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organizations (Marsden 2018). Hence it is pretty evident that the threat of getting substituted
by other organizations is significantly high for the existing organizations operating in the
mentioned industry.
Apart from this, the bargaining power of the customers is seen to be significantly high
in the industry as majority of the organizations are trying their level best to attract the
customers with the above mentioned strategies such as ethical sourcing of the raw materials,
application of the low pricing or by achieving the preferences of the customers through the
design of the products (Mylan et al. 2015). Hence the customers of the organizations are seen
to be subjected to a considerably large pool of organizations for achieving the require
services or the products.
On the other hand, the significant growth of the mentioned industry is seen to
influence many of the business organizations in entering the food retail industry of UK.
However, the concerns like the significant investment for the infrastructural set up, the
significant market share of the above mentioned market giants along with the absence of a
brand that has the potential to attract the customers in an efficient manner, are seen to be a
major obstacles for many of the new entries which creates a moderate threat of new entries in
the mentioned industry (Jones, Hillier and Comfort 2014.).
Hence it is pretty evident that the organizations which belongs to the food retailing
industry and exists in the Chelmsford City Centre are facing notable amount of competition
from the part of the other existing organizations and at the same time, the organizations are
facing a high threat of substitution. However, the threat of new entries faced by the
organizations is seen to be moderate and bargaining power of the suppliers is substantially
low. Adding to this, the organizations operating in the region are expected to face a high level
of bargaining power of the buyers.

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B.
The chosen organization for the part is an independent food shop named as A
Canteen. The food shop was established in the year 2001 on New London Road
(Acanteen.co.uk. 2019). The duo of Emma and Brenda are responsible for managing the
family run restaurant and bar (Acanteen.co.uk. 2019). The chosen organization is one of the
renowned names in the small scale food shop industry in the UK food retail industry. The
chosen organization has the specialization of providing quality mixture of food and beverage
products. Along with that, the organization offers variety of coffees for the customers of the
organizations. Apart from this, the owners of the shop are able to stretch their product chain
with the introduction of the quality food products such as the pizzas along with the variety of
sandwiches (Acanteen.co.uk. 2019).
One of the prime resource of the chosen organization is the strong supply chain of the
organization. The organization has multiple number of suppliers capable of producing quality
raw materials with the characteristics such as on time supply of the materials, adequate
supply along with the appropriate pricing of the raw materials (Sadun 2015). The impact of
the suppliers on the chosen organization is seen to be limited as the suppliers are even ready
to provide discount to the organization on bulk purchases.
Apart from the suppliers, the organization has capable workforce in place for
producing optimum quality food products and providing a pleasant environment to the
customers of the organizations. Adding to this, the conduction of increased number of
training and the developmental activities from the part of the organization has enabled the
employees of the organization to achieve the required skills and competencies for providing a
high level of quality in the operations of them inside the shop. The improvement in the
quality of the services of the employees along with the quality of the food and beverage

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products that the chosen organization offers to the customers are seen to be significantly
influential from the part of the organization in increasing the customer satisfaction which has
the potential to trigger the customers in the repetitive purchasing from the part of the
organization. With the increasing growth of the mentioned industry, the UK food retail
market is observed to be significantly populated. Along with the existing market giants, there
are considerable number of new organizations that are entering the market and that is notably
increasing the competition of the market. This is one of the prime reason of the increasing
urgency amongst the small scale food shops in the mentioned region in improving the quality
of the food products along with the services of the employees of the organizations. The
chosen organization is seen to achieve a competitive edge over the other competitor
organizations in the mentioned aspect owing to the conduction of the multiple number of
training and the developmental activities from the part of the organization (Acanteen.co.uk.
2019).
The modern infrastructure of the chosen organization is one of the prime reason of the
success of the organization. The selected food shop is decorated in a fine fashion to provide
sufficient spaces to both family and couple groups and along with that, the company is able to
provide a pleasant environment for the customers of the organization. Apart from this, the
food shop is seen to have modern facilities such as Wi-Fi which is an influential factor in
targeting the youth generation as customers (Acanteen.co.uk. 2019). Apart from this, the food
shop is observed to use the modern facilities for the processing of the food and beverage
products that they serve to the customers. This plays a crucial role for the organization in
providing customized products and serving the varying requirements of the customers in a
more efficient manner. Adding to this, the usage of the modern infrastructure in the
processing of food and beverage products helps the selected organization in serving the
customers in the least possible time. With a precise focus on busy life style of the people of

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UK, the consumption of the least possible amount of time helps the organization in achieving
the preferences of the customers and in attracting the customers in a better manner.
Resources VRIN Framework
Quality services of the Employees Valuable, Inimitable
Infrastructures Inimitable, Non-substitutable
Strong Supply Chain Rare
From the above framework, it is pretty visible that the mentioned food shop has the
capability of gaining significant competitive advantage in comparison to the competitor
organizations. The excellent usage of the resources such as the employees or the modern
infrastructure plays a crucial role in the success of the mentioned food shop. In addition to
this, the strong supply chain of the organization plays a crucial role for the organization in
ethical sourcing of the raw materials which enables the organization to provide the optimum
quality of the products to the customers (Ramanathan, Bentley and Pang 2014). Thus, the

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excellence of the above mentioned resources helps the selected food shop in a significant
manner in the increment of their profit.
C.
The selected organization, Essex Fire and Rescue Service is responsible for the
statutory fire and the rescue services in the county of Essex. The mentioned organization was
established in the year 1948 and is seen to receive approximately 14000 annual calls (Essex-
fire.gov.uk 2019). The organization is able to provide quality services to the people of the
county for more than 60 years owing the service excellence of 1448 number of employees
along with the significant investment of £70.1 million (Essex-fire.gov.uk 2019).
The major stakeholder for the selected organization is seen to be people of the Essex
County. The organization serves the people by providing the much required emergency
services in the form of the fire and rescue services. The services of the chosen organization is
seen to be divided into four groups which are North East Group, North West Group, South
East Group and South West Group and that significantly increases the efficiency of the
services of the organization (Essex-fire.gov.uk 2019). With an annual average of 14000
cases, the chosen organization is seen to be significantly active in meeting the demands of the
people of the country which helps the people to get rid of the adverse situations.
In addition to the people of the county, one of the major stakeholder of the chosen
organization is seen to be employees of the organization. As mentioned, the quality of the
service of the employees of the organization enabled it to operate for more than 60 years in a
significantly successful manner. The selected organization is seen to employ 1448 number of
employees which includes 620 number of full time fire-fighters, 240 support staffs, 33
control personnel along with 519 retained fire-fighters (Essex-fire.gov.uk 2019). The

9MANAGEMENT
services of the selected organization is divided into various teams which includes Fire-
fighter, Crew Manager, Watch Manager, Station Manager, Group Manager, Area Manager,
Assistant Brigade Manager, Deputy Brigade Manager along with Brigade Manager. The
division of the teams from the part of the senior level management of the selected
organization is seen to be significant in increasing the efficiency of the selected organization
(Murphy and Greenhalgh 2018).
Apart from the employees and the people, the suppliers of the infrastructure that the
mentioned organization uses in managing the adversity of the emergency situations, is one of
the crucial stakeholder for the selected organization. The organization is seen to face the
significant need of the improved infrastructure for managing the emergency situations. The
organization currently experiences the services of 43 Rescue Pumps, 8 Heavy Rescue Pumps,
20 Water Tenders, 4 Aerial Ladder Platforms, 3 Foam Tenders, 2 Incident Command Units, 2
Water Bowsers, 1 Animal Rescue Unit, 1 Hose Layer Unit, 1 Specialist Operations Vehicle, 4
Off-Road Vehicles, 1 High Volume Pump, 5 Prime Movers with various demountable pods, 1
Personnel Carrier, 1 Line Rescue Vehicle, 1 Detection, Identification and Monitoring vehicle
(Murphy and Greenhalgh 2018).
Hence it is pretty visible that the achievement of the above mentioned infrastructure is
significantly dependent on a strong supply chain. The organization is able to build a good
relationship with the multiple number of suppliers that it is associated with. The high level of
efficiency amongst the suppliers is seen to provide the much required ease in the business
operations of the mentioned organization and adding to that, it plays a crucial role for the
organizations in increasing the effectiveness and urgency of their business operations. Apart
from this, the managing authority that is the government of the Essex County is seen to be
crucial stakeholder for the chosen organization responsible for funding and the monitoring
the performances of the selected organization (Murphy and Greenhalgh 2018).

10MANAGEMENT
Two most crucial stakeholders for the selected organization are the employees of the
organization along with the suppliers of the organization. As the operations of the selected
organization is observed to be highly dependent on the employees of the organizations, it is
important for the employees of the selected of organization to stay motivated. Hence the
managers of the organization are in need to make sure that they create an effective pay
structure and rewarding policy that have the potential to motivate the employees in
conducting their business (West and Murphy 2016). Other than this, the managers are in need
to make sure that they provide the appropriate pricing for the products that the suppliers
supply to the organization for enabling the organization in achieving the modern
infrastructure. The managers are in need to make sure they motivate the suppliers to
incorporate the modern technology and innovative solutions to the products that they offer to
the selected organization through improving the pay structure (Gazzard, McMorrow and
Aylen 2016).
D.
Sainsbury as a corporate entity had significant potential in becoming one of the
renowned organization in the global business context. However, the organization had some
important restructuring in need of completion for the improved business conduction
(Sainsburys.co.uk. 2019). The mentioned corporate entity was in need to increase the
flexibility in their business operations with the increased number stores for reaching out to
the customers with the products and the services. Along with that, the company was facing
the much required change that has the potential to increase the product chain of the
organization to serve the varying requirements of the customers in an efficient manner. Apart
from this, the company was facing the need of representing itself as the food and non- food
retailer to the customers and along with that, the significant improvement of the revenue and
the cost synergies were seen to be the much required change that the organization was

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expecting (Argos.co.uk. 2019). Hence the above mentioned loopholes in the business
operations of the mentioned organization prepares it with perfection for implementing the
change of acquisitioning the home retail group, Argos.
Motivation:
The above mentioned change had the potential to convert Sainsbury as the most
preferred choice for the customers as the food and non-food retailer. Along with that, the
organization will be able to increase the product chain in addition to the number of outlets for
providing the diverse demands of the customers in an efficient manner. Adding to this, it will
enable the mentioned organization to increase the speed and flexibility of their business
operations in an effortless manner (Sainsburys.co.uk. 2019). The change will have the
potential to improve the financial stability of the mentioned organization with a precise focus
on the cost synergies. In addition to this, the change will be significant for the organization in
optimising the usage of the combined retail spaces along with creating the financial services
propositions with a specific focus on the customer centric business activities. Apart from this,
the change had the potential to combine the delivery networks of the mentioned organization
for reliable, flexible along speedy delivery to the store or customers (Argos.co.uk. 2019).