Profitability And Sustainability Analysis Of Superstore Industry Marketing Essay

Profitability And Sustainability Analysis Of Superstore Industry Marketing Essay There are several framework on the financial performance have been became apparent during last couple of decades and most of them relates to social and financial performance, which are mainly associated around the corporate social responsibility and performance concept . Only few of the study emerged to evaluate financial performance and the sustainability of competitive advantage. Furthermore, most of the work has been associated with industry level but not the firm level, which is also more important to consider in the study on micro level. This is one the strong reason to investigate the firm level financial performance and the competitive advantage. However, there are some limitation related to data gathering for the industry analysis but it seems feasible to gather or access company level data and their availability. World Food Retail Overview After development in technology and policies in 1990, huge change in food industry has begun. With evolution in business globalisation, activities like mergers and acquisition has amplified which resulted growth of big players in efficient and dominant way. Globalisation also resulted an increase in tours and travel activities across the world. The expenses incurred on food and drink by a tourist is 30p on every  £1.00, as per survey conducted by regional tourist bodies of England, UK (IGD Global Retail Outlook Survey, August 2007). Among various sector, retail food sector create more value than that of others. The Organized food sector is such an area where both strong management system and sectorial operational specialization i.e. human and technology are mainly affected by large volume, Daily splitting in physical operations and lower margins, food retail in world are acumen and influenced by six basic trends: Uncertainty Variable Demographics Growth will/necessity Low Price Madness Technology Globalization It has been forecasted that the speed in retail globalization will further accelerate. In order to success, the competition between retailers and suppliers are more likely to increase in a diversified range of capability. Even though in retail sector, huge opportunities still exist, but success will depend on managing the risk and challenges at the same time by capturing the opportunities. According to IGD, In order to obtain sustainable growth, Retail Globalization has shifted its focus from flag-planting to targeted expansion. IGD conducted a survey in 12 countries where senior retailers and supplier has been questioned to derive the above statement (IGDs Global Retail Outlook Survey in August 2007), The top five supermarket companies in United Kingdom control a 50 percent share in market where as in Germany it is 60 percent and in France 90 percent (AC Nielsen). Industry Overview The top five biggest United Kingdom retailers and food selling companies influence the whole market, which are Tesco, Morrison, Sainsburys, Asda and Co-operative Group. In 2004, the whole market size was  £115 billion which includes the retailers from small shops who has store to the biggest supermarkets which have the full-scale operating chains. In 2004, Morrison ranked at 4th position among other 12 supermarkets in UK, which is illustrated below in Table (1). Whereas in 2008 February 79.4% market share captured by top 5 retailers i.e.30.9% by Tesco, 16.4% by Sainsburys, 11.6% by Morrison, 16.9% by Asda and 4.0% by Waitrose. Only 20.6% of market share has been left for others. With the above positioning Morrison can be concluded as upper-medium size food and grocery retailer in United Kingdom. Supermarket 2004 (%) 2005 (%) Aldi n/a 2.2 Asda 16.7 16.5 Co-op 4.8 n/a Iceland 2.1 1.9 Somerfield n/a 5.7* Lidl 1.8 n/a Marks and Spencer 3.5 n/a Morrison 14.6** 12.2** Netto 0.6 n/a Sainsburys 15.7 15.9 Tesco 29 29.8 Waitrose 3.5 3.7 To create portfolio, in same industry, five companies has been selected i.e. Tesco, Finsbury Food, Sainsburys, Thottons and Falkaland. In segregation, Sainsburys and Tesco are biggest supermarket, whereas Finsbury Food and Thorttons are the medium ones and Falkaland is small stores in UK. According to total asset, these portfolios almost represent the industry. Hence it is tried to increase the sample for closer representation of the population which is illustrated below in Table (2): UK Companies Size ( £) Falkland 24.25 Finsbury Food 102.60 Thorntorns 106.02 Morrison 7,370.90 Sainbarys 9,576.00 TESCO 24,775.00Table(2): the position of Morrison in the whole UKs industry according to total assets (2008) Business Drivers for sustainability strategies: There are various internal and external factors which might drives the growth in sustainability strategies in WM Morrisons and major supermarkets: Employees Communities Sustainable Product Development Competitors Green Buildings Waste Transportation and Logistics Costs Carbon Efficiency Rising Demand for Certified Products Expectation for Reporting and Performance Measurement Product Safety The above mentioned drivers are the key to change the retail sectors outlooks and providing competitive benefit to the retailers in terms of sustainability performance. Furthermore, competitive benefit can be drive by working with more innovative solution provider; brand owner and supply chain partners, which leads to reduce the cost the increases efficiency. Apart from above factors, supermarkets have already implemented a number of growth/sustainability strategies to achieve high growth. These are: Increasing focus into own label products. Expansion by organic growth and acquisition Convenience Sector Expansion Focus into nonà ¢Ã¢â€š ¬Ã‚ food items Graph 1 : Profit Margins of UK Supermarkets About Wm Morrison Supermarkets With acquisition of larger rival Safeway plc., Wm Morrison Supermarkets moved up in UK food chain. Founded in 1899, from 125 stores Wm Morrison runs approximately 425 stores in England and Scotland. It has already made a history beating UK supermarket giants like Tesco (the UKs No. 1 food retailer) and ASDA (Wal-Mart owned supermarket) in high concentrated acquisition battle. Through its Market Street specialty, Morrisons offer various food and non-food items. Morrison sell gas about 290 locations. With acquisition of Safeway, Wm Morrison enhanced its market presence with more than 12% share of grocery market. Aim of the Study The aim of this research is based on two objectives. The first objective is to examine the profitability of the WM Morrison within the superstore industry context in the UK market and secondly to examine the firms sustainability of competitive advantage on retail performance. Preliminary Literature Review The analysis of firm profitability is a bit difficult task because the majority of the performance indicator models focus on the success of various key financial indicators i.e. return on investment (ROI), return on assets (ROA) or return on capital employed (ROCE). These performance indicator models have been disapproved or criticized due to lack in the multiple dimensional approach of the performance as well as the its competitive advantages to organizations growth (Brignall and Ballantine, 1996). There are number of studies (Dawson,2005; Dess and Robinson,1984; Reynolds et al.,2005; Venkatraman and Ramanujam,1986) have faced challenge to consider right variables as a financial performance indicator. The understanding of the correct information and its non-availability to the public are the most common problems (Ailawadi et al., 1995). However, a number of alternative approaches have been implemented to getting best financial performance indicator in to order to handle above discussed problems. Therefore, subjective financial indicators are designed to measure firms performance i.e managers forecast on financial performance to compare with competitors performance. Although, some financial indictors has been considered in the number of empirical study (Capon et al.,1990; Dawson, 2005; Reynolds et al., 2005), which was significantly positive with the economic models. The most frequently used profitability indicator in the various studies could be return on equity, return on sale and return on investment etc. But still it is unconcluded regarding the best financial indicators to measure retail financial performance ( Ailawadi et al.,1995; Dawson,2005; Reynolds et al., 2005).On the other hand, the most commonly used performance indicators are rates of return, gross margin (Bradley and Taylor, 1992; Dobson, 2005; Reynolds et al., 2005) and sales growth, sales revenue (Doyle and Hooley,1992; Dobson,2005; Greenley,1995; Hooley et al.,1992; Reynolds et al.,2005). The accepted distinction between competitive advantage and sustained competitive advantage is matched by a range of studies which forward and debate the factors determining the sustainability of a competitive advantage (see Coyne, 1985; Williams, 1992). Whilst many of the studies of advantage sustainability are conducted from a resource based view, Porter (1980, 1990) contributes a number of observations at a more macro level. Briefly, Porter (1980) suggests that competitive advantage can only be sustained over time if consistent strategy is developed and applied promptly. Research Objective and Data Methodology An attempt has been made in this paper to analyze the profitability and examine the sustainability of competitive advantage on retail performance of the WM Morrison during 2005 -2010. Eventually top players will be identifying on the basis of total asset in UK superstore market. To identify competitors, Lexis-Nexis and Hoovers will be used. 5 years Balance sheet and other financial data will be extracted from Thomson One banker. The profitability of Morrison will be analyzed through decomposition method in context to peer group. Statistical analysis may be conducted as a support to the thesis. After performance analysis of Morrison, Industry performance will be compared to target company performance to analyze abnormality if any in the behavior pattern and the reason behind the pattern will be scrutinized. Analysis Factors: Return on Net Operating Assets (RNOA) Net Borrowing Cost (NBC) Operating profit margin Operating Liability Leverage Financial Liability Leverage (FLEV) Asset Turnover (ATO) Return on Common Equity (ROCE) Spread However one of the main aims is to analyze the driving factors for the performance of the firm and the industry and simultaneously to discuss the sustainability strategies of the firm for the competitive advantage. Conclusion

Constitutional Reform of 1997 in United Kingdom

The UK constitution has a modaretely successful history, it is highly tradition and has stood the test of time and, based on the fact that Britain has never suffered a violent revolution unlike France, we can therefore assume that the UK constitution has many beneficial and enduring strengths. Our constitution ensures that Parliament, and therefore Government, can act quickly and decisively as they are unrestricted by excessive constitutional constraints. It is flexible and adaptable which clearly shows thorugh after the 2010 general elections. However, the lack of restraints on the powers of Government and Parliament may be dangerous especially to minority and invidual rights. There have also been many doubts about this traditional constitution and many questions have been raised to do with the Monarchy and outdated institutions such as the FPTP system. The lack of separation of powers between Government and Parliament means that Government tends to dominate which in many eyes is seen as undemocratic. The first constitutional reform was to do with devolution; Scotland Act of 1998, Wales Act of 199 and the Belfast Agreement of 1998. The original nature of this reform was so that considerable powers were transferred to the devolved representative bodies and executives. Labour wanted to bring about this change due to the fact that they were hugely popular in Wales and Scotland and so the Acts were a means of thanking them for their support. This reform has been believed to be long overdue and has been very beneficial and have given each body the right to have more control over their region however it has caused a bigger rift of the UK and therefore has separated Britain even more. The second reform was the Human Rights Act of 1998. This reform has been extremely beneficial for minority and invididual rights, which has been reflected most recently in the Abu Qatada case where a man who had made terrorist plans has been saved from deportation to Jordan, where he would have most likely been prosecuted for his actions. The European Convention on Human Rights made this Act binding on all public bodies but the UK Parliament due to Parliament being sovereign. Although this act has been beneficial, it would have had more impact should it have been binding on Parliament. Another reform was the House of Lords ; the House Of Lords Act of 1999. Most of the hereditary peers lost their voting rights and there was a major cut down in the number of hereditary peers as it was lowered down to just 92. There was also a decision to separate the Judges from the Lords ( Constitutional Reform Act of 2005) and move them into a seperate building across the road. It is believed to be a moderate decision which has limited the powers of the Lords as many believed there should not be any hereditary peers. In fact a proposal has been put forward for a whole new house to be created. There were 3 other major changes introduced : Greater London Authority Act 1999, Local Government Act 1999 and Freedom Of Information Act 2000. The first established an elected mayor in London with an elected assembly to which s/he is accountable for, the second allowed for local communities to elect a mayor if approved by a local referendum and the third gave the citizens the right to view documents and records of public bodies. Each of these has helped to reinforce democracy within the UK and helped to protect the rights of each citizen by ensuring they are more politically involved and have the right to appoint and elect candidates for powerful positions.

Conflict Theory Response Racism - 851 Words

Conflict Theory Response Racism today can be traced back to the greed of white business men who legitimized bigotry to fulfill their economic desires. Today, I believe that the root issue of racial discrimination, or exclusion, is the legitimization of imperialism in the 19th century and the praise of capitalism/ neoliberalism on the international stage today. These political ends encourage stratification of the classes on all fronts, split labor markets, and create false consciousness in regard to the elite public. In truth, I have a hard time recognizing prejudice in regard to the African American public in Colorado. I’ve grown up in a largely white or Latino population and been unfamiliar with the ails of the African American community. I am however, very familiar with the racial discrimination and cultural discrimination that is projected on poor â€Å"undeveloped† countries. I will first analyze the root of racism and discrimination as a consequence to politics of core nations, then analyz e several observations of racism in the United States contrasted against Honduras, a country where I work in sustainable water aid. Imperialism began in in the 19th century as Europe began to force itself upon weaker countries by commandeering control of those weaker states’ economies and governments. The acquisition of these states was legitimized through creating racial divisions and encouraging stratification of the classes where the white man asserted himself as the pure and capableShow MoreRelatedRacism And Aversive Racism1618 Words   |  7 Pagesterm ‘aversive racism’ seeks to encompass the nuanced and profound experiences of prejudice faced by racialized peoples in societies whose values do not accommodate explicit discrimination based on race. This form of â€Å"subtle racism†, which in the words of Donald Glover in â€Å"Hold You Down†, you’d only understand through lived experience, is but one facet of a larger social problem: anti-black racism (Glover 2011). Personal understandings and experiences of aversive and explicit racism, detailed in musicRead MoreThe Conflict Of Police Brutality And Racial Profiling858 Words   |  4 PagesSummary: My exigent topic is focusing on the prominent conflict of African American males and police officials in Western nations, focusing directly on the American South. In the late 1920’s African Americans in the U.S.A, were hopeful that their struggle against racism was nearing a successful conclusion with the start of the NAACP (National Association for the Advancement of Coloured People). For many years, especially for people not of colour, racism, racial discrimination and police brutality wereRead MoreThe Conflict Theory Gives Me A Better Understanding Of My Ethnicity And Race Essay1541 Words   |  7 PagesConflict theory gives me a better understanding of how my ethnicity and race are pivotal in shaping me, understanding my role in society and determines the treatment I receive from society. For example, the conflict perspective views racism and inequality towards minorities, like me as a way for the so-called superior and majority race to keep control and power over minorities. They do this, by perpetuating institutionalized or structured racism, pitting minorities against each other, and limitingRead MoreIs Homelessness Not Just A Problem?1714 Words   |  7 Pagesthe fact that homelessness is not just a problem in the United States, it has global implications. The people that die and are displaced as a result of homelessness is a major challenge to social justice. Through the tenets of the Critical Race Theory, it’s been statistically qualified and quantified that minority groups are frequently targeted and suffer from socioeconomic neglect, resulting in homelessness. The Lack of equal access to supportive political policies, as well as, economics, healthcareRead MoreThe Birth Of Machine Changed The Life Conditions Essay995 Words   |  4 Pageschanged th e life conditions. One of the major issues in the 20th century that this research will examine is racism and sudoriferous relationships. It is commonly assumed that racism is as old as human society itself. Since the beginning of creation the argument between human beings goes; they have always hated people of a different nation or gender or religion or skin color. However, racism is an integral part of human nature. The Civil war in America was one of the darkest times in the AmericanRead MoreRacial Profiling : A Big Problem1601 Words   |  7 PagesRacial Profiling Racism has been a big problem in the U.S. for all races for a very long time and continues to be a problem to this day,. Racism has been a big part in U.S. history and has changed over time, some of these races were African Americans, American Indians, and Mexican Americans, for American Indians it was how they were treated wrong socially and economically. Racism has been around since the beginning of civilization and was a big deal. During the times of the Old TestamentRead MorePrejudice1230 Words   |  5 PagesDiscrimination * Discrimination is the behavioural component or differential actions taken towards others * Prejudice is a negative attitude and behaviour, also unjustified behaviour * Attitudes and behaviour reflects our inner convictions * Racism and sexism are practices that discriminate. Stereotyping: beliefs about social groups * Stereotyping is the belief about social groups in terms of the traits or characteristics that they are deemed to share * Stereotypes are cognitiveframeworksRead MoreEthnicity and Crime1008 Words   |  4 Pagesof race-based politics had become ludicrous. And yet even with the doing away with a raciology, there was still institutionalized racism in British society. As Phillips and Bowling (2007) note, the census confuses race, geography, and ethnicity to the point where the terms are meaningless. The politics of race remained powerful. Class conflict and strain theory account for at least some of the root causes of the current ethnic/racial disparity in criminological data. As early as the 1960s, systematicRead MoreBlack Marxism By Cedric Robinson : Marxist Perspective On The World s Progression Into The Phenomenon Of Capitalism1362 Words   |  6 Pagesanalysis that outlined the beginnings of racism dating back to the Roman Empire. This and more make Black Marxism a unique analysis on the world’s progression into the phenomenon of capitalism. Rejecting Wallerstein’s view that racism and sexism is traditional, Robinson often closely associated the birth of capitalism and socialism with a racially Eurocentric perspectiv e of history and society. Disregarding and subverting the liberal and Marxist theories of a phenomenal conversion, Robinson showedRead MoreSociological Theories And The Structural Functional Theory1356 Words   |  6 PagesSociological Theories: Compare and Contrast The Structural-Functional theory definition: Two theorist who were major contributors to the structural functional theory where Herbert Spencer and Robert Merton. Also known as functionalism, it is a framework for building theory that views society as a complex system whose parts work together to promote stability and solidarity. Important concepts in the perspective of functionalism include social structure, social functions, latent functions and manifest

Gothic Motifs Of Dracula And The Dark And Eerie Setting

The three most important gothic motifs that occur within the novel Dracula are a supernatural antagonist, dark settings such as castles and cemeteries, and unreliable narrators. The supernatural antagonist is the most important park of Dracula, it is so important the antagonist’s name is the title of the novel. The dark and eerie setting occur very frequently throughout the novel and have a profound impact on how the science will be perceived by the reader. Finally the unreliable narrators are important because, it makes the readers feel important by letting them connect the dots before the main characters. The supernatural antagonist, Dracula, is vital part in how the reader reads the novel. Without Dracula nothing will occur it would be very dull and uneventful. The cause of Dracula becoming a vampire is unknown but it did occur hundreds if not thousands of years before the story took place. Dracula adds a different dimension to the novel, since he is the only antagonist throughout the novel he is the root of all problems that occur. Another element Dracula adds, is he very rarely in contact with more than one main character, thus leading to an unreliable narrator through most of the novel. In the beginning Dracula is looking to move from his castle in which he currently resides in because, the people of Transylvania know what he is and horrible things he has done. This Dracula’s motivation to move because, he feeds on living human by drinking their blood. He canShow MoreRelatedDracula Transformation Essay1237 Words   |  5 Pageswhich is a reconstruction of Dracula, a novel by Bram Stoker, and Nosferatu a film directed by F.W. Murnau. The use of intertexuality in Shadow of the Vampire is a key aspect which allows it to echo; themes, the gothic mode and issues that are present in the other two texts. Through a clear pastiche, Merhige produces a new text from the old. Immortality is a key theme which has been subverted from the physical sense through sucking blood, as it’s represented in Dracula, to the spiritual sense throughRead MoreAnalysis Of Poe s The Fall Of The House Of Usher 3197 Words   |  13 Pagesscholars credit Poe with being the creator of the modern horror story and the science fiction and detective fiction genres, as well as recognize him for being as one of the most famous American authors in history. â€Å"The Fall of the House of Usher† is a dark, gothic short story about a man who goes to an old childhood friend’s house to help him because he and his sister are not doing well. In the beginning, the narrator, who remains nameless throughout the story, arrives at the house of his childhood friend