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Doyle, T. (2009)
Languages: English
Types: Unknown
Subjects:
The objective of this management report is to evaluate through a multi perspectives\ud lens the strategic implications and decisions that are required to be made by the Fresh Cut\ud Produce (FCP) business, the largest single business within the Icelandic owned Bakkavör\ud Foods group.\ud Key influencing factors behind these decisions for FCP will centre upon the hyper\ud competition which exists within the grocery retail industry; this industry has dramatically\ud changed over the last 10 years, with market dominance being continually strengthened by\ud retailers such as Tesco and M&S resulting in considerable year on year financial\ud improvement.\ud The forecast for the next 5 years again shows a considerable transformation in\ud relation to the terrain of the market, this transformation is influenced by factors such as global\ud economic downturn, rising input costs and overall recession resulting in lower consumer\ud confidence and a considerable reduction in the availability of disposal income, these factors\ud have resulted in a marked rise in the power of the discounter retailers such as ALDI and\ud NETTO.\ud The turbulence of the UK grocery retail market and the overall uncertainty within the\ud UK economy has required a dramatic fundamental change in strategic direction for FCP; the\ud explanation for and evaluation of this strategic change will be evaluated through a strategic\ud multi-perspective comparing the strengths and weaknesses of these different approaches.\ud Initially the document will introduce the background of the Bakkavör business and\ud the subsequent development of FCP. Secondly the evaluation of the structure within the UK\ud grocery retail market focusing specifically upon Tesco, Marks & Spencer’s, ALDI and NETTO\ud and their overall structure, conduct and performance of these companies.\ud The next stage of this document will evaluate perceived effects of UK recession on\ud consumer confidence and their spending habits, the results of which have been obtained\ud through an internet survey carried out on behalf of Bakkavör foods.\ud The analysis of the survey results and an interview with the Commercial Director,\ud are then overlaid with the outcome of the UK grocery retail findings will be used to provide\ud the backdrop for the implications and decisions that are to be made by FCP to ensure\ud sustainable business security and the continued competitive advantage over the supply base\ud from which it operates within.
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