SWOT, PESTEL and five forces analysis

SWOT, PESTEL and five forces analysis 2. Introduction The supermarket industry is fierce in terms of its competitors. There are four main firms that have dominant market share but still have the aim to become the market leader and want to be bigger and better for their customers and potential customers. 3. Methodology In order to conduct my research I used a variety of sources which included economical and contemporary books, additional journals were also used to gain more specific and up-to-date information. The internet was also a valuable source due to its nature and variety of widely available information. 4. PEST Model The Pest model allows us to see what changes have happened in the industry and how this can affect competition. It allows us to distinguish the not so important compared to what is vital in the industry. For any firm in this industry it is important to create value for its customers, so therefore an understanding of the customer is vital. To create value, a firm would have to create a form of understanding and a relationship with its suppliers. Also for a firm in this organisation an in depth understanding and monitoring of its competitors is essential in order to be a profitable company and have first mover advantage. This supermarket industry includes the customers, the suppliers and the competition. An understanding of the pest model allows us to discover comprehensive potential opportunities and threats in the future. I.e. global warming may not be an issue now but can be in the next hundred years; this could reflect raw materials for food. 4.2 Political There is a low level of unemployment this due to the recession; this affects the demand of good being bought as consumers have less disposable income. However, food is a commodity and will always be demanded sue to its nature. E.g. the price of stock in supermarkets has dropped in last few years with the intention of boosting demand. Its level of custom has also fallen. There are now restrictions on buying land or buying out another supermarket chain making it more difficult for supermarkets to expand. 4.3 Economical Barriers to entry E.g. Over 5 years it has been reported that 700 hundred supermarket stores have opening ranging from sizes to 3,000 to 25,000 square feet. In comparison to this it is going to be hard for smaller supermarket chains to break into this industry due to it competitors. Only 5 new supermarket stores have opened in last 5 years. As a result of the recession, supermarket chains have to concentrate on the demands of the customer. This could include customers looking at: Cost Prices Profits Overall price is very competitive in this industry. There is also a change in the way consumers shop; supermarket chains such as Tesco have addressed this by giving incentives such as a club card in order to gain brand loyalty and repeat custom. Larger supermarket chains are quick to eliminate competitors. E.g. Sainsburys had bought out star Market and then opened stores across Egypt. 4.4 Social Supermarkets are continually monitoring changing consumer trends and shopping patterns such as; Who is buying the product? When they buy the product? How they buy their products? Which products are they buying? Monitoring these trends and understanding then can create competition in order to be the first to develop products and services that meet changing patterns. E.g. in the UK,75% of customers shop twice a week and seven still shop at different chains. This pattern by UK shoppers is known as Bulk Shopping or One Stop Shopping. Even though the recession has cut back the number of jobs available, supermarkets still employ a large number of people. This could be due to their flexibility in working times such as part time. E.g. Sainsburys employs around 150,000 people in the UK alone. Also there will always be demand for commodities meaning that supermarkets have some level of safety. Some supermarkets use this as a marketing technique, for example Asda aims to create over 7,500 jobs in 2011 (Tue, 16 Nov 2010 (www.supermarketnew.co.uk)) There is also change in demand regarding taste: organic foods are now much more common in supermarkets due to greater awareness of global warming, fairtrade and many other issues. E.g. there could be health concerns surrounding British beef with BSE. 4.5 Technological Technology has become beneficial to customers in supermarkets. With self checkout tills, shopping has become much easier and more convenient for consumers for shoppers. They are also easy to use meaning that all consumers can take advantage of this new technology. Personalized shopping is also being introduced which again makes shopping easier and more convenient. E.g. Waitrose allows you shop with your own trolley gun. With the technology available and the number of companies supplying it, explosion is the word for it, said Tim M. Hammonds, senior vice president of the Food Marketing Institute in Washington. Almost every store is doing at least one experiment. Tesco are reported to have spent  £25 billion in 2005 setting up their on-line shopping website this also helps chains looking at consumer buying habits. Tesco.com is the worlds biggest online supermarket and this year the group had sales of over  £577 million, an increase of 29% on last year 4.6 Environment Cutting waste; fruit and vegetables have less packaging. Fresh and seasonal produce of a high quality Introduction to organic foods, governments have supported farmers to convert and grow only organic foods. 4.7 Legal Law legislations Health and Safety 5. Swot Analysis The SWOT analysis shows the strengths, Weakness, opportunities and threats in the supermarket industry. 5.1 Strengths Corporate culture The supermarket industry is one of the biggest and profitable Supermarkets are a necessity; people will always need food therefore the demand is always high in relation to other industries. Customers have different tastes; supermarkets have a wide variety of goods and services making it likely that a consumer can purchase all of their necessities in one place. Having different stores allowing access to the mass market. Customer Experiences e.g. in store cafes and facilities. Giving Incentives: Loyalty cards and point reductions on foods. Image; this encourages brand loyalty and can keep an environmentalist reputation. 5.2 Weakness Recession has impacted on supermarkets; giving better price reductions and deals undercutting competitors to retain market share. Low-cost supermarkets such as Aldi, Netto and Lidl have taken consumers due their much lower prices. Smaller supermarkets may have to fold due to recession and a very highly competitive market. Low employee efficiency and high labour turnover. 5.3 Opportunities Market leadership in a highly demanded segments i.e. the growth in organic and natural foods this will establish high economies of scale Merging or acquisitions gaining market share E.g. Morrisons takeover of Safeways. Working with foreign countries help supermarkets break into a new market. Such as Latin America, South East China and South Africa. 5.4 Threats Changes in Government Regulations Recession impacts the economic changes. I.e. Has and impact on customers spending patterns. 6. Portors five forces Porters five forces of competition identify structural variables influencing competition and profitability in the supermarket industry. 6.1 Threats of Entry The supermarket industry is dominated by some big competitor chains such as Tesco, Asda, Sainsburys and Morrisons and smaller chains such as Somerfiels, One Stop etc. Bigger Chain competitors have focused more on operation and efficiency and productivity (allowing a wider variety of foods or products, better services etc). This force has left very small and traditional shops like butchers, bakers trailing very far behind. This has made it very hard for new companies to enter the supermarket industry. I.e. it is hard for a new business to raise capital because of the large fixed costs and its in a very much developed market with chains like Tesco have self check out points and their own stock control system. Where as Asda focus on operational tactics, like product development, better promotional activities and concentrating on better distribution. 6.2 Bargaining Power of Supplier Because the industry is fierce and is growing to be influenced by the likes of Tesco and Asda they can negotiate better promotional prices in comparison to smaller chains have a fear of losing business. They benefit from purchasing economies of scale. Suppliers are under threat because big food chains can negotiate better deals abroad. There needs to be an effective relationship with the supplier and its seller, this makes for a better profit margin. 6.3 Bargaining Power of Buyers To meet customer needs there are many things, lowering prices, wider and better choices, countless promotional activities, consistently bettering customer service. E.g. Tesco club card is most successful to date and has added to Tescos profitability. Supermarket chains have become more aware of consumer needs and by expanding in new markets banking, pharmacies and clothing. There is also a push on ethical products as consumers have become increasingly aware, they are now available in most big supermarkets. 6.4 Threat of Substitutes There is a threat that consumers can switch from one supermarket to another, this can be due to consumers being influenced highly on price, better service or quality. In relation to this bigger chains are buying out smaller chains, and opening them strategically in small towns or cities. E.g. Morrisons tookover Safeway as a method of quick expansion. 6.5 Bargaining Power of Competitors The supermarket industry has grown dramatically in size mainly due to bigger chains and continuous growth. This has opened up bigger and better retail concentration, new formats and better customer service. E.g. Tesco retain and build relationship with customers with databases allowing them to see what the consumers have purchased. Companies need to be innovative to keep up with the consumer behaviour such as refocusing on pricing and its values. 6.6 Competitive Rivalry Because the industry is dominated by bigger supermarket chains, there is a constant battle for better prices or better reductions. This results to high price wars to all competitors. Supermarket chains focus on quality and value for the customer in return they could attract new customers of different segments of the market. By bigger chains spending much more on advertising including celebrity endorsement, E.g. Jamie Oliver being the face of Sainsburys and Heston Blumenthal and Delia Smith for Waitrose it becomes much harder for smaller chains to compete. By giving customer price incentives such as Buy-One-Get-One-Free (BOGOF) this again allows supermarkets to retain and maintain customer satisfaction. Loyalty cards are also good example of this. 7. Conclusion 7.1 Smaller supermarket vs. bigger supermarkets The emergence of a number of smaller grocery stores has increased in the past 12 months. A number of smaller supermarkets have been grasped by larger competitors. Morrisons purchase of 39 Somerfields after Co-Ops disposal programme, led Morrisons to further increase market share in the south east and in the London. Sainsburys followed Morrisons vision, breaking into new areas, opening 22 store acquisitions in the north. The stores average from 17,000 square feet. Waitrose reached beyond the South east, opening 14 new stores, averaging between 5,000 square feet under its actual store size. A recent newspaper headline stated Asda goes shopping at Netto in  £778m takeover deal (27.05.10, London evening standard) showing larger supermarkets being able to takeover much smaller chains. 7.2 Strategies Available During the recession, it is apparent that value for money is most important to the customer. There is little room to negotiate prices as the market is very competitive and each supermarket wants to retain market share. Food Retailers can look into trends and new technologies to differentiate from the competitors, i.e. smarter shopping carts and better formatting of stores. Supermarkets are looking into convenience for the shopper. Smaller stores such as Tescos Express fill the gap between the bigger and smaller stores; they stock ready made meals and supply the basic foods. The sales maybe smaller but they retain market share and overall the business in going to profit. Organic foods are becoming a strong strategy to pull in new customers. There is a distinctive line between luxurious and affordable prices. The organic Market is worth 340 million annually, this figure has doubled in the last 2 years. Supermarkets have recognised the potential and responded with their own range of organic produce. Tescos has market lead and Sainsburys are planning a huge launch of its own organic range as is evident from the newspaper headline below. Tesco turns itself into a green giant (The Sunday Times May 31, 2009) Asda will also be taking advantage, a spokeswoman for Asda says: Organic food is definitely something that can be marketed to the masses. Throughout our stores we have a suggestion box programme called Tuned In. More organics is the number one suggestion. A sales increase from 3.1% to 5.4% in sales. And have increased their organic range from 250 to 400 items with cutting prices. Supermarkets may not be able to persuade shoppers from its competitors directly but convenience of better food products may sway them naturally.

A man without a country

‘A man Without a Country’ is an anthology of essays published by Kurt Vonnegut in 2005. The anthology, whose caption is, â€Å"A memoir Of Life in George W. Bush’s America.†Is a book consisting of tremendously short essays which deal with subjects varying from tribulations with contemporary technology, to significance of humor, to Vonnegut’s views on the disparities between women and men. (Vonnegut & Simon 36)However, most common in a ‘Man without a Country’ are essays which clarify Vonnegut’s views on politics as well as the subjects in contemporary American society, frequently from a particularly humanistic viewpoint. ‘A Man without a Country’ is Kurt Vonnegut’s final work. In January 2007, Vonnegut pointed out that he anticipated this book to be his last work and the declaration confirmed to be correct when he passed away in April, 2007.This would stand correct awaiting a short- story anthology of Vonnegutâ €™s unpublished work entitled ‘Armageddon in Retrospect’ which would be in print posthumously in 2008. (Vonnegut & Simon 78)  Ã¢â‚¬ËœA man without a country’ is therefore an anthology of principally formerly published work. The huge majority which cames out in the pages of the substitute newsmagazine ‘In These Times’ between 2003 and 2005. Vonnegut gleans his work from speeches as well as short essays which were written over the last a half a decade and abundantly illustrated with works of art by the author all the way through. (Vonnegut & Simon 78&79)

Fad Diets

NO FAD DIETS Americans are obsessed with dieting. They willingly try the latest diet appearing in popular magazines, discussed on talk shows, and displayed on the shelves of a local bookstore. The basic premises to a healthy life seem simple, and Americans are even given specific guidelines- outlined in the food pyramid- as to how much of each food group to eat. If this is so, why then, is obesity one of the leading health risks confronting Americans? It may be because the simple and healthy road to weight loss is actually a long-term process.Therefore, it is tempting for Americans to substitute diets and exercise regimens with what are known as â€Å"fad diets†Ã¢â‚¬â€diets that promise quick and easy results. Long term weight loss does not come from extreme diets and quick fix decisions; losing weight and keeping it off comes from choosing a healthy lifestyle and making it a habit. Despite research, fad diets have achieved popularity proving their dangers and inefficiency. J ust as a car needs the proper gasoline, the human body needs a healthy diet; a balance of protein, carbohydrates, and fat to properly develop.Although fad diets may share very different â€Å"truths†, most have many common characteristics: most claim to provide insight and new results, but they are simply replicas of older fad diets (Hobbs 2007, 42). They also claim that specific foods or group of foods are the â€Å"enemy† and should be banned from the diet. This is a myth—there is not a single food which is capable of causing weight gain or loss (Hobbs 2007, 42). Another characteristic of a fad diet is that they usually promise fast results.These diets are usually not supported by scientific evidence, and the information they provide are usually derived from a single study or analysis (Hobbs 2007, 42). An example of a popular fad diet is called â€Å"The Zone. † This plan was created by Barry Sears, PhD in 1995 (Greene 2003, 23). Sear’s principle argument is that human beings are programmed to function best on only two food groups: lean proteins and natural carbohydrates (Greene 2003, 24). Consumption of carbohydrates, according to Sears, produces insulin—a process that converts carbohydrates into fat (Greene 2003, 22).Critics of this diet argue that Sear’s theory regarding insulin production is an â€Å"unproven gimmick† (Greene 2003, 22). Individuals who go on fad diets are putting their body at risk for disease and illness. A second well-known fad diet is called â€Å"Sugar Busters. † This plan was created by H. Leighton Steward (Greene 2003, 13). Labeling sugar as the enemy because it releases insulin and then stores it as body fat, â€Å"Sugar Busters† demands that both refined and processed sugars be taken out of one’s diet (Greene 2003, 13).This includes potatoes, white rice, corn, and carrots. Sugar is not naturally toxic and it is dangerous to eliminate along with complex c arbohydrates, which provide a good source of fiber (Greene 2003, 14). This plan, just like many other fad diets, calls for the elimination of a specific food. It is ignoring the fact that the human body needs many types of foods to stay healthy (Greene 2007, 17). These fad diets promote high- fat foods which, in turn, can increase the risk for heart disease, cancer, high cholesterol, and liver and kidney damage.A 2007 Stanford University study took 311 women who averaged 40 years old and 189 pounds, and put them on 1 out of 4 diets—the low carbohydrate Atkins and Zone diets, or the low-fat Ornish and LEARN diets. After six months, the Atkins dieters had lost 13 pounds; the others 6 to 8 pounds. All the dieters, however, started to regain what they had lost (American Heart Association 2005, 12). In the past year, the Atkins dieters regained 3 pounds, and the others had gained back 3 to 8 pounds (American Heart Association 2005, 11).None of these dieters could stick to the diet ing plan for a long-term period. Fad diets are extreme plans that lack valid evidence and research. High-fat diets may promote short-term weight loss, but most of the loss is caused by dehydration (Hobbs 2007, 14). As the kidneys try to destroy fats and proteins, water is lost (Hobbs 2007, 14). High-fat diets are low in calories causing depletion of body mass instead of fat loss (Hobbs 2007, 16). Fad diets argue that the human body responds to carbohydrates in a way that causes weight gain.If Americans are gaining weight, it is because of the quantities they consume. Weight gain is due to the excessive calories, not the carbohydrates that invite obesity (Greene 2003, 22). If fad diets work, it is due to the decreasing of calories being consumed [The Zone’s diet calls for less than one thousand calories a day] (Greene 2007, 33). Fad diets are very difficult to keep up with since they ban certain products and require repeated eating of certain foods. These fad diets are low in calcium, fiber, and other important vitamins (Hobbs 2003, 32).This provides many dangers such as heart disease, hardening of arteries, and high cholesterol. Many fad diets contribute to the â€Å"yo-yo dieting. † Yo-yo dieting is the successive loss and gain of weight due to excessive dieting. This makes weight loss slow when it is looked at from a healthy perspective (American Heart Association 2005, 39). Because of the obvious health dangers and the failure to provide long-term weight loss, this should encourage people to stop using fad diets but that is not the case.Fad diets continue to remain the substitute for healthy diet plans and exercise. Each year, Americans spend more than thirty billion dollars fighting fat—often on gimmicks that do not work (American Heart Association 2005, 9). What is so appealing to Americans about fad diets? Instead of pursuing the long and enduring road of healthy diets and habits, most embrace the â€Å"easy fix† – the fad diet. When one hears of a person losing a significant amount of weight, one often does not even question the health risks, and they embrace this quick way of losing weight for themselves.Devoting to a lifestyle that includes exercise and eating a proper diet with moderate portions is still the best method to lose weight and keep it off (Greene 2007, 21). Those who make the change from a typical high-fat fad diet to one that follows a diet based on the food pyramid will slowly and safely lose weight (Greene 2007, 22). It is important to note that it is possible for fad diets to prove effective for certain individuals. Each body is different, reacting to certain diets in different ways (Hobbs 2003, 56). Fad diets may work on bodies that are used to such extreme constraints.Diversity, however, is the most basic principle for the human body (Hobbs 2003, 59). The fact that fad diets disregard this most fundamental truth renders them unhealthy and ineffective. The diet industry is giv ing the world what they want—a diet plan that can be followed while keeping the same of living (Greene 2007, 40). If a person want to lose weight, it is best to stay away from fad diets. A magic pill or diet will not take weight off. A person trying to lose weight should talk to their physician about a healthy weight loss plan that is right for their individual needs.Also, Exercise goes hand-in-hand with weight loss. Simply walking 2 to 3 times each week will boost your metabolism. Studies show that ninety-five percent of people who lose weight gain it back within five years (Greene 2007, 32). It is not surprising that nearly twenty-five percent of Americans are confused when it comes to dieting (Greene 2007, 32). Reducing calories, no matter how approached, will result in weight loss, but when cutting calories, it is also important to choose foods that nourish the body (Greene 2007, 35).In conclusion, fad diets do not result in long-term weight loss, are nutritionally inadeq uate, and should simply be avoided. The key diet for weight loss is one that reduces overall caloric intake and promotes physical activity. Psalm 139:14 says, â€Å"For I am fearfully and wonderfully made. † We need to live a lifestyle that reflects this principle; fad diets are not a reflection of this. God designed us exactly how He wanted to, and that should bring comfort to each and every person in this world.

The Myths Of Rising College Cost - 2366 Words

Tuition charges have increased by a national average of 20% between 2008 and 2012 (Hiltonsmith Draut, 2014). Higher education stakeholders, such as students, parents, public policy makers, have expressed their worries about the rising tuition as it has triggered a public concern about college affordability (Mumper Freeman, 2011). For public colleges and universities, it was the first time that they have witnessed that tuition as a share of total revenue surpasses the state funding for public institutions nationwide in 2012 (U.S. Government Accountability Office, 2013). It imposes challenges to public higher education institutions to shift their dependence of revenue from state appropriations to tuition and other sources (Mulhern, Spies, Staiger Wu, 2015). A number of researches have investigate the myths of rising college cost (Archibald Feldman, 2012; Baumol, 1995; Bowen, 1980; Douglas Keeling, 2008; Heller, 2011; Martin, 2011; Mumper Freeman, 2011). In summary, the major factors that attribute to the rising college cost are: (1) the decline in state financial support for public higher education with the increasing support for other items (Mumper Freeman, 2011); (2) higher education institutions set their goals to be academic excellence, prestige, and influence. To achieve these goals, they tend to generate revenue source and there is no limit for the money they can generate. So they raise all the money they can and spend all the money they raised. RaisingShow MoreRelatedThe Real Reason College Tuition Costs So Much By Paul F. Campos Essay1521 Words   |  7 PagesReason College Tuition Costs so Much,† author Paul F. Campos makes a deliberative argument that the cost of higher education is not caused by public funding bein g cut. Campos uses invention, arrangement, and style techniques in order to structure his argument and persuade his audience. His argument also contributes to the general debate in the cost of education because it is in conversation with other texts and researchers. Campos’ argument effectively contributes to the debate on the cost of higherRead MoreStudent Loan Debt Is A Burden1467 Words   |  6 Pageshandle previous bills while staying on time with college payments. According to the Consumer Finance Protection Bureau in the United States, the total amount of student debt amounts to over $1 trillion. In the article â€Å"Here’s Your Crisis: Student Loan Debt Isn’t a Myth† (2013) Chris Lewis states, â€Å"because of the weak job market, borrowers are struggling more and more to keep up with payments† (458) meaning the amount of debt consumed to go to college is going up because the job market is weak whichRead MoreThe Myths Of College Majors963 W ords   |  4 Pagesâ€Å"Myths of College Majors† College students have the hardest time paying off their student loans, but why? Well, most students usually pick their major based on their talents and their interests.(Source, Time) This idea sounds like a smart move, but in fact it is putting students in a very difficult situation. Since most majors end up making considerably less money in their first year out of college, it is becoming more and more difficult for majors in the humanities and arts to pay off their studentRead MoreThe Myth of the American Dream1269 Words   |  5 Pagesï » ¿THE MYTH OF THE AMERICAN DREAM A Raisin in the Sun is a play written by Lorraine Hansberry in the period following the Second World War. It is divided into three acts and explores the circumstances of the Younger family, a colored family living in the ghettos of southern Chicago. In particular, the play deals with the efforts of Walter Lee, the scion of the family to bring his family out of poverty and into riches by entering into a business venture. The play highlights the psychological and societalRead MoreThe Nationwide Student Debt Crisis967 Words   |  4 Pagesaccepted that college (or any form of higher education for that matter) is a wise investment that each and every individual should strive for. Each and every year thousands of parents open college funds and future investment plans to ensure that once their child is of age he or she can participate in quality educational programs. While college attendance rates are at a positive all-time high, right behind it follows an astounding $1.3 trillion dollars in student loan debt. Let’s face it, college is expensiveRead MorePrimary Educational Disparities And Education985 Words   |  4 Pagestend to have fewer educational resources such as supplies, funding, amenities, and college preparatory classes. However, â€Å"students living in poverty require more intensive resources..., and many schools in poor neighborhoods lack the...resources to break the nexus between student background characteristics and student achievement† (Nielsen, 2013). Since race has already been found to be a significant factor in college readiness, poor racial minorities face a more complex disadvantage than their higherRead MoreOrgan Donation1090 Words   |  5 PagesTopic: Why organ donation should be mandatory Audience: College Students General Purpose: To persuade Specific Purpose: To persuade people to want to become an organ donor and the benefits of being one Proposition: You should become an organ donor Organizational Pattern: Statement of logical reasoning Introduction: Attention Getter: Organ donation is an amazing thing, saving many lives every year. Roughly 152,000 people die every day and 55 Million die each year yet, there is 116,000 peopleRead MoreMy Uncle Not Worked For The U.s. Embassy1253 Words   |  6 Pagesjust a myth? For awhile, I pondered the validity of the California Dream, and through oral interviews with some of my family members – I was able to find my answer. As an aspiring educator, I believe that education is the key to social mobility, and with this in mind, I asked my relatives a series of questions regarding their schooling experience. I asked them the following questions: what were some hardships you faced during your schooling experience (elementary, middle, high school, college), doRead MoreStudent Loan Is A Terrible Idea1308 Words   |  6 Pagesproblems, America would fair better in taking the initiative in making reforms to the educational loan system that are a bit more realistic. Student loans are a massive predicament in the U.S. that can no longer be ignored. The Atlantic 311.2 article â€Å"The myth of the student-loan crisis(CHARTIST)(Statistical data)† by Allan, Nicole, and Derek Thompson states that to date student loan debt surpasses all other forms of debt with over a one trillion dollars sum (2013). The United States should stop being complacentRead MoreEssay on Global Warming: The Harmful Reality722 Words   |  3 Pagesis used as a â€Å"...political tool to increase government control over American lives, incomes and decision making† (Hiserodt 1). Allowing the government to take â€Å"control† is not necessarily a bad thing. Speaking from my personal experience, I am a college commuter and I drive back and forth through the Long Island Expressway from my home to NYIT Old Westbury. The government has a special lane on the highway known as High Occupancy Vehicle or HOV; only two or more people in a vehicle are eligible to