Costcutter A1 Poster

Costcutter A1 Poster

Learning Outcomes
This assessment will enable students to demonstrate in full or in part the learning outcomes identified in the Unit Descriptor – see online copy, via the STR355 homepage on myCourse.

Other Instructions
Follow any advice and guidance given for both `Turnitin’ and `Succeed@Solent’ found on the SSU Portal, as well as on the STR355 homepage on myCourse.

No External Contact is permitted – please note that widely used cases with answers already on the internet will not be permitted, either.

Extenuating Circumstances
The University’s Extenuating Circumstances procedures are in place if there are genuine circumstances that may have affected your academic performance. Remember however you need to be ‘fit to study’, this means that you can either submit your assessed work or declare extenuating circumstances, but you cannot do both.

A summary of guidance notes for students is given below:
http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234570925

Academic Misconduct
Any submissions must be your own work and, where facts or ideas have been used from other sources, these sources must be appropriately referenced. The University’s Academic Handbook, includes the definitions of all practices that will be deemed to constitute academic misconduct. You should check this link before submitting your work.

Procedures relating to student academic misconduct are given below:
http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234570157

Ethics Policy
The work being carried out by the student must be in compliance with the Ethics Policy. Where there is an ethical issue, as specified within the Ethics Policy, then the student will need an ethics release or an ethical approval prior to the start of the project.

The Ethics Policy is contained within Section 2S of the Academic Handbook:
http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234569791

Anonymous Marking
A copy of the University’s Policy on Anonymous Marking, process details and student guidance on submission sheet completion can be found on the following links, which are also uploaded on the Student Portal.  The guidance ‘fact sheet’ will be available at Faculty Reception Points.

Policy:  http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234574213

Process:  http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234574215

Fact Sheet:  http://docman.solent.ac.uk/DocMan8/OCSFile?RN=1234574214

Grade marking
The University uses a letter grade scale for the marking of assessments. Unless you have been specifically informed otherwise your marked assignment will be awarded a letter grade. More detailed information on grade marking and the grade scale can be found on myCourse. The guidance ‘fact sheet’ is available at the Faculty Reception Points.

Policy: http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234569864

Fact sheet:  http://docman.solent.ac.uk/DocMan8/OCSFile?RNS=1234576014

Assignment Brief

•    you are to prepare a Poster that demonstrates your reflections upon the AE1 exercise
For more on Reflection – see Succeed@Solent: http://mycourse.solent.ac.uk/mod/book/view.php?id=2732
•    your poster must be produced to a high standard and created [online] on one sheet of A1 paper, uploaded onto Turnitin – for assessment and moderation.
•    you may be required to respond on key points of your Poster, within your seminar group, in a very brief manner.
•    you should ensure that your Poster is a stand-alone item and requires no additional notes, etc..

No External Contact is permitted – please note that widely used cases with answers already on the internet will not be permitted, either.

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Poster guidance notes
Basic principles
•    The poster should be A1 (841 x 594 mm) in size
•    It should be visually interesting, presenting your topic clearly and with immediacy
•    It should be understandable to a reader without extensive verbal comment – the poster should be able to speak for itself
Creating your poster
You should create your poster using a software package that can cope with A1 size.  Otherwise, you may have problems when scaling up, particularly if you have inserted a picture.  One of the following packages will do the job.
Software examples:
In ‘PowerPoint’, create your poster as a single slide.  You can set the page size when you start using File > Page Setup, so if you want an A1 poster (84.1 x 59.4 cm), you can specify this before you start.  PowerPoint also allows you to add guidelines to help you line up the poster elements.  Use View > Grid and Guides… and tick the Display grid on screen box. (Try this source too?) http://www.ljmu.ac.uk/lea/LEA_Docs/Posters_with_Powerpoint.pdf
•    In ‘Open office writer’.  This software is free and can be downloaded from http://www.openoffice.org.  It takes a few minutes to download and several more minutes to install onto your desktop.  You can set the page size by using Format > Page > Page and set the page size width to 59.4 cm and height to 84.1 cm.  There is a useful Drawing toolbar (View > Toolbars > Drawing) which will probably appear at the bottom of the screen.  This software also allows you save the document as a PDF, which is necessary for printing in the library.
•    Other software packages that might be suitable include ‘Photoshop’, ‘Indesign’ or ‘Illustrator’.

STR355  STRATEGIC MANAGEMENT
ASSESSMENT CRITERIA – LEVEL 6
See, also, the SSU Generic Criteria and the Grade Mark advice, on the SSU Portal
Criteria    Weight          FAIL   [F1-F3]               THIRD      [D1-D3]    LOWER SECOND   [C1-C3]    UPPER SECOND   [B1-B3]        FIRST  [A1-A4]
Introduction to the topic being researched gives clear objectives and credible terms of reference    10    Unacceptable set of very poorly-focused objectives; failing to demonstrate an acceptable understanding  of  the SM context    Acceptable set of focused objectives; demonstrating a basic understanding of key aspects of the SM context, with some flaws    Good set of well-focused objectives; demonstrating a good understanding of critical aspects of the SM context    Very good set of very-well focused objectives; demonstrating a critical evaluation of most aspects of the SM context    Excellent and extremely well focused objectives;demonstrating an innovative approach to the critical evaluation of the full SM context
Appropriate research, selection and prioritising of critical issues related to the SM challenge; with clear context and impacts    10    Unacceptable Research Methodology, failing to demonstrate sound research, selection and prioritising of the issues underpinning the SM challenge    Acceptable Research Methodology, demonstrating some  research, selection and prioritising of the basic issues underpinning the SM challenge    Good Research Methodology, demonstrating good research, selection and prioritising of the key issues underpinning the SM challenge    Very good Research Methodology, demonstrating good research, selection and prioritising of the critical issues underpinning the SM challenge and its main  implications    Excellent Research Methodology, demonstrating comprehensive research, selection and prioritising of the full set of critical issues underpinning the SM challenge and its full implications
Critical evaluation of SM theories; logically selected and justified, with appropriate links to General Management literature    25    Unacceptable level of evaluation of SM theories, failing to demonstrate logic, selection or justification; with minimal links to the General Management literature    Acceptable level of evaluation of SM theories, demonstrating a basic logic, selection and justification; with weak links to the General Management literature    Good level of critical evaluation of SM theories, demonstrating a clearly logical selection and justification; with good links to the General Management literature    Very good level of critical evaluation of a wide range of SM theories, demonstrating a very clear logic, selection and justification; with very good links to the wider General Management literature    Excellent level of critical evaluation of SM theories, demonstrating a comprehensive logic, selection and justification; an excellent use of the full  General Management literature demonstrates new insights
Credible application of theory and knowledge to the SM challenge; with unconstrained problem-solving and entrepreneurial imagination    25    Unacceptable application of theory and knowledge to the SM challenge; with minimal problem-solving and little sense of imagination    Acceptably critical application of theory and knowledge to SM challenge; attempting basic problem-solving and little imagination    Good critical application of theory and knowledge to the SM challenge; clearly demonstrating  a good level of problem-solving and imagination    Very good critical application of theory and knowledge to the SM challenge; clearly demonstrating unconstrained problem-solving and entrepreneurial imagination    Excellent critical application of theory and knowledge to the SM challenge; demonstrating innovative approaches to unconstrained problem-solving and entrepreneurial imagination
Credible Conclusions and Recommendations are developed and justified, in an SM context    20    Unacceptable level of Conclusions or Recommendations; without underpinning development / justification, set in a limited  SM context
Acceptable set of basic Conclusions & Recommendations; with some development and justified, within a useful SM context
Good set of critical and credible Conclusions & Recommendations; well developed and justified, within the SM context

Very good set of critical and credible Conclusions & Recommendations; extremely-well developed and justified, within a strong SM context
Excellent set of critical and credible Conclusions & Recommendations; superbly developed and justified, within the full SM context

Presentation and tone of the poster is appropriate and professional    10    Unacceptable Presentation & Tone of a poorly structured poster; referencing fails to follow the Harvard system     Acceptable Presentation & Tone within a basic poster structure; referencing, broadly, follows the Harvard system    Good Presentation & Tone with a well-structured poster; referencing follows the Harvard system well    Very good Presentation & Tone within a very well structured poster; referencing follows the Harvard system very well    Excellent Presentation & Tone within an impressively structured poster; referencing follows the Harvard system flawlessly

Executive Summary

Thursday task:
Thursday 19th February

•    using appropriately holistic models to underpin your analysis, demonstrate how emerging trends that you’ve seen [during the STR355 unit and in the Guest Lectures, yesterday and this morning; like Augmented Reality, etc.] may [or may not] deliver Competitive Advantage for the Costcutter convenience store subsidiary of Bibby Line Group,  in the Longer-term – reflect on today’s Guest Lecture and on your own group’s workshop experience, when making your key recommendations

•    given the changing circumstances of the wider Retail environment, especially those highlighted in this week’s Guest Lectures, critically evaluate the organisational structure(s) of the Costcutter convenience store subsidiary of Bibby Line Group – in light of those organisational structures adopted by Nisa Retail, Tesco and any other relevant Competitor / Comparable organisations that you deem relevant

In the final day of the simulation activities the group has to develop an appropriate analysing data for the Costcutter comparing with their main competitors using a suitable strategic models.

Also analysing the environment of the industry of retail sector in term of identifying any potentials threats or opportunities for costcutter

The group has the chance today to visit the usability lap to discover how the technological progress can be used to develop the businesses in the retail sector for example to measure and assess each store capacity and design in the system before applying the design on the reality world
In the first session on morning was a guest lecture explained the immersive technology world and how the businesses can be benefited from it

Costcutter Business Model

What is Costcutter and what is offering?
Costcutter supermarkets it is started in the 1986 a part of Bibby retail service mission. In 2014 costtcutter when it did the joint venture with Palmer and Harvey wholesaler it came with a new supply chain it got for them the best price in the supermarkets
When Costcutter begun it venture with P&H they signed on the deal to let Costcutter lead Mace, Super shop and Your store.
“The store owners and staff know their customers, what they want and give them the personal service. They are proud of their store and are “Proud to be local”. (Costcuttersupermarketsgroup.com, 2015)

Value Chain of Costcutter:
The value of Costcutter retail stores are when consumers sometimes are looking to buy something premium on quick time with a reasonable price
Costcutter Core capability:

?    A daily premium standard on store delivery
?    Main focus now are putting them extremely hard work on extend the premium delivery outcome that Mace, Super shop and Your store are satisfied with from Costcutter to it group member.
?    The high and continuous control on delivery made Costcutter impacted as a massive increase on business productivity.
?    As a business they are extremely looking on the demand of them customers and following up by the need of customers. Making retailers concentrate on working hard for them business and not being worried on products delivery.

Who are the Costcutter Partners?
The main partners are Mace, Supershop and Your store
Crosscutter distribution:
Costcutter has admitted on Jul 2014 that they had some issues to retailers on delivery with P&H.
Roughly most of Costcutter stores are using P&H delivery under the Buyco system, after the ended up contracts with Nisa.
AS a Nisa spokesman says: they are receiving dozens of requests to re-join the costcutter retail group.

How Costcutter communicate with customers?
The new PR of Costcutter says that engaging with customers as well as retailers are very important and the methods that they are going to use it via traditional and digital communication platforms as concerning on the brand core value , with no forget on the label “proud to be local”.
Also the Marketing director has said that the market field is absolutely competitive which is been appointed on working as a team with marketing experts to deliver the objectives and expertise to be close always with the consumers and retailers.
“Costcutter strikes £35m financing deal with Barclays”
Cost cutter have signed a finance deal on 2013 to help the costcutter on them investment.

Costcutter Leadership style?
By delivering the strategic business plan it is essential to have the strongest leadership, as well by concerning on the change of sector and conditions for future growth on helping independent retailers.
Also to raise sustainably and making the right decisions to take advantage in this market successfully

SWOT Analysis of Costcutter

Internal
Strengths    Weakness
?    Brand Heritage: established 1986
?    Customized service: understanding the demand of local community
?    Verity of brands included such as, custcutter, kwiksave and mycoscutter
?    Serving over 1700 stores
?    Service provided based on local customer behaviour
?    Company provides variety of brand like kwiksave, mycostcutter, mace
?    Large number of stores
?    Overall represent high growth rate
?    Skilled workforce
?    Focused in domestic market
?    Large field team comprising of 900 people nationwide
?    Partnership with P&H co.?        ?    Collapsed merger: costcutter had a few failed merger for different reasons
?    Company intend to have independents retailers which lead to limited profit share
?

External
Opportunities    Threats
?    Technology developments in the retail industry
?    Strong brand heritage will allow the company to expand in developing countries
?    costsutter  can launch and produce brand products that can be present exclusive only in its own stores
?    With strong brand hereitage the company can also enter new market in the developing countries
?    Company abilities to launch more brand-products which can be presented exclusively in its stores
?    Equally active competitors at same sector
?    Future competition
?    Product’s price changes
?    Taxation rate
?    Currency exchange rate
?    Technological development for example online shopping
?    Competitors has high market share

Costcutter industry analysis

Costcutter cost strategy

Costcutter Ashridge portfolio display

Adapted from Ashridge Portfolio display
Costcutter cooperating with rivals

The retailing environment in the future:

?    Most of giant retail investment intend to develop and establish present in the emerging market, by 2025. Pulse, some speculations about customer spending that will be much higher in ten years’ time from now, especially in developed country, and the customer’s tendency will be more toward luxury goods and services.
?    The future of retail industry in advance countries will be focused less on grocery and food and more to beauty, restaurant, health, financial services, and recreation.
?    Internet will a crucial and key player in recent future, with regards to, customer’s trading and transection. (chathambouse.org 2015)
Costcutter PIMS Performance drivers

Adapted from PIMS performance drivers
Recent issue in media about Costcutter
“Cheema family leaves Costcutter for Nisa”
•    After 26 years of association with Costcutter, in Oct 2014 some of the shareholders in Cheema family were not satisfied with the Costcutter, which led the supply chain association end last year.
•    On the other hand P&H have did start it supply chain agreement in June last year with Costcutter.
•    Since January we have recruited far more retailers into the group than have left and we now have more members than ever before, further strengthening our volume and market position
•    Director of Costcutter says: since January they have built up more retailers agreement than the retailers who have ended up contracts with Costcutter
•    While Nisa has a strong raise on them profit by opening 557 new stores that worth £250m in them revenue. (Betterretailing.com, 2014)
•    A number of issues have been brought to the light for last 6 months from costcutter retailers around the country, and all there concerned are revolve around poor availability, scheduling and credit notes, cancelled orders, and  out-of date stock. Which causing problems for the retailers to fulfil their local demand.
•    One Costcutter retailer claim that as  it may seem to most of other brand retailers that it is Palmer and Harvey fault, but in actual fact ‘’it is down to BuyCo and Costcutter management fault; Costcutter have got to fix this, or it’s got to go’’ (Rees  2014)

Costcutter future plan

?    Simply fresh is increasing gradually, with its aim to achieve 60 stores by the end of 2014.
?    Costcutter group has grown its acknowledgment to the other retailers to go with Costcutter for agreements who run their stores independently
?    Offering unique stages to create more core for grocery deals
?    Costcutter aims for 6000 stores by beginning of 2015, from over 3000 stores in 2014 to 6000 stores in 2015
?    Costcutter group has settled a new strategy that mixed selection of retail brands on coming five years.
?    Costcutter has made a contract with J Mart Limited into Costcutter with the wide variety of supply chain offers.  To provide the members with the best range, making the technology systems made, J Mart Limited on future to grow the business. (rtailanalysis.com, 2014)

References List

?    Chathamhouse, 2014. The changing retailing environment [online] [viewed 19th Feb. 15.]. Available from: http://www.chathamhouse.org/publications/papers/view/179269
?    Conveniencestore, 2014. Costcutter retailers near the end of their patient [online] [viewed 19th Feb. 15.]. Available from: http://www.conveniencestore.co.uk/news/costcutter-retailers-near-the-end-of-their-patience/369964.article
?    Costcutter.com, 2015. About us [online] [viewed 19th Feb. 15.]. Available from: http://www.costcutter.co.uk/
?    Prospect, 2014. What the key issue in the retail sector [online] [viewed 19th Feb. 15.]. Available: http://www.prospects.ac.uk/retail_sector_overview.htm
?    Rees, D., 2014. Costcutter retailers near the end of their patience [Online] [Viewed 19/02/2015]. Available from: http://www.conveniencestore.co.uk/news/costcutter-retailers-near-the-end-of-their-patience/369964.article
?    Retailanalysis, 2014. Costcutter News [online][viewed 19th Feb. 15.]. Available from:  http://retailanalysis.igd.com/Hub.aspx?id=13&tid=1&rid=107
?    Talkingretail, 2014. Costcutter News [online] [viewed 19th Feb. 15.]. Available from: http://www.talkingretail.com/tag/costcutter/

Executive summary

For the second activity of:

Illustrate how on-going impacts from the Costcutter convenience store subsidiary of Bibby Line Group having transferred its logistics partnership, from Nisa to Palmer & Harvey, are likely to help/hinder its Competitive Advantage, against the convenience store sector and the wider Retail industry – in the Longer-term?

The group has split the work between each members:

?    Applying the strategies models
?    Researching about the P & H Company
?    Researching about Costcutter and Bibby line group
?    Analysing the information and try to identify any issue that does not mentioned

Some issues during the activity:

?    Limited time and working under pressure
?    Enable to access the Bloomberg site to analyse the financial situation for the Costcutter Company

What is the group would do differently in future?

?    Preparing the resources needed for the research in advance
?    Set up the work plan for the whole day and start immediately

Palmer & Harvey and Costutter

Bibby Line Group entered the retail sector with the acquisition of Costcutter Supermarkets Group, the convenience retail group with 1,700 stores operating under its kwiksave, Costcutter, myCostcutter and Rhythm & Booze brands.(Bibbylinegroup.co.uk, 2015)

Costcutter Supermarkets Group is predominantly a franchise business, with over 1,700 convenience stores throughout the UK and Republic of Ireland.
Founded in 1986, Costcutter directly employs over 600 people nationwide and has its head office in York and an office in Belfast. With 1,700 convenience stores throughout the UK and Republic of Ireland.

Originally founded in 1925 as a delivered wholesaler specialising in tobacco and confectionery, Palmer and Harvey has since broadened its wholesale offering and customer base considerably. Customers range from key grocery multiples to forecourts and independent retailers. The Company offers customers up to 11,000 lines spanning ambient (including alcohol), chilled and frozen products.

On Wednesday, March 13th 2013: Costcutter Supermarkets Group and Palmer &Harveytoday announced a strategic partnership that will transform the UK’s £34bn convenience sector.

Advantages of Palmer & Harvey partnership with Costcutter:

1.    Palmer and Harvey joint venture will be exclusive within the convenience sector, providing Costcutter Supermarkets Group with entrance to the largest volume buying power in the sector

2.    Resulting in the most competitive prices for its members as well as an industry-leading range of products and promotions at highly competitive prices.

3.    Darcy Willson-Rymer, CEO of Costcutter Supermarkets Group, said: “We have been focusing only on generating extreme value and demand for our members and it became wholly apparent that without access to the proportionate benefits of our own buying power this could not happen.

4.    P&H Can ensure the best prices, promotions and range for members. Combine this with the industry leading distribution abilities of Palmer & Harvey and we firmly believe that Costcutter Supermarkets Group will present the best possible service to Members.

5.    The values upon which the company was started over 25 years ago, which we know Palmer & Harvey shares, will be strengthened both through the greater control these changes bring but also because, quite simply, the relationship between Costcutter and Palmer & Harvey is traditionally and commercially right.”

6.    Costcutter Supermarkets Group has announced an introduction of a new, adaptation range, negotiated on its behalf by The Buyco. This will include an extensive chilled and fresh scheme, and a new three level own label range for Costcutter Supermarkets Group is developing for all categories and will support through marketing investment that will see it emerge as an industry leading brand.

7.    Palmer & Harvey and new suppliers we will be bringing on board to meet the needs of Costcutter Supermarkets Group members and all of P&H’s existing independent retailers, to ensure we are providing not simply the largest range but the highest value range possible. This brings greater value for everyone, including consumers who will ultimately benefit the most from a strong independent convenience sector.”

8.    All Costcutter Supermarkets Group members will receive a considerably improved service made possible by Palmer & Harvey’s national leading service and infrastructure of 14 depots offering multi-temperature deliveries.

9.    Palmer and Harvey is the UK’s largest full range delivered wholesaler, with an annual turnover of more than £4 billion. The Company has grown since its inception over 80 years ago through a mixture of organic growth and targeted attention.(Palmerharvey.co.uk, 2015)

SWOT Analysis for Palmer & Harvey:

SWOT analysis for P & H company
Internal    Strengths    Weaknesses
•    UK’s number one delivered supplier
•    top delivery network of 14 regional warehouses and work for over 90,000 UK retails
•    over 1,000 vehicles makes more than 60,000 deliveries per week in the UK
•    UK’s leading annual retail trade show Pro-retail.
•    one of the largest privately owned companies in the country
•    it has been around since 1925
•    lack of high competitive strength
•    string of delivery and availability problems
•    retailers are not receiving the high service level as they expect
•    distribution effectiveness
•    environmental affect

External    Opportunities    Threats
•    Expending Business
•     Moving in to new market segments
•    Increase of Internet users
•    Increase of householders
•    Online shoppers
•    Free social media platforms
•    Technological progress
•    Increases demands in the low price stores      •    Price and service wars with competitors
•    Threats from tobacco smugglers
•    Weather disruption
•    Traffic congestion
•    Problems with delivery vehicles

Whittington’s Four Generic Approaches to Strategy

From analysing different evidences shows that interpretation on costcutter using this model.
Costcutter its primary aim to maximise its profit, and it has a formal planned and deliberate approach with a clear strategy and path to follow; as it is a subsidiary of the giant global organisation Bibby line group. Plus, the external influences have been already taken care of and considered in the company’s strategy and values.

Ansoff Matrix

(Edrawsoft.com, 2015)
This is due to Costcutter selling existing product to existing markets and to the local communities in that market in particular, and also trying to increase their productivity and quality for its products through different strategies including, collaboration with other companies like Palmer and Harvey. In addition, the company has expanded in new markets and new sales area such as morocco, and intended to mushroom in other countries like Pakistan. Also, the company is heading toward divarication especially when it comes to entering new market, and in costcutter’s case when entered the Moroccan market, the firm has developed new products and supply other from local suppliers in order to fulfil the demand of local communities there. However, costcutter has been developing its own product for its market (the UK), and has invested to expand in new areas in the UK.

•    bowman’s strategic clock

(Edrawsoft.com, 2015)

Costcutter sits between hybrid and differentiation,
This is due to costcutter offer products at a low cost, but with a higher perceived value than those of other discounter retailers such as, 99p. As a consequence, a company like costcutter try to build a reputation of offering fair price for reasonable goods.

References List

?    Bibbylinegroup, 2015. About us [online][viewed 18 Feb. 15]. Available from: http://www.bibbylinegroup.co.uk/companies/bibby-retail-services/
?    Costcutter, 2015. About us [online][viewed 18 February 2015]. Available from: http://www.costcutter.co.uk/about-us/
?    Edrawsoft.com, 2015. Ansoff Matrix Template and Professional Matrix Software [online][viewed 18th Feb. 15.]. available from: http://www.edrawsoft.com/ansoff-matrix.php
?    http://www.palmerharvey.co.uk/press-room/costcutter-and-ph-to-transform-the-uk-convenience-sector-through-launch-of-new-buying-company
?    PalmerHarvey, 2013. Costcutter and P&H to Transform the UK Convenience Sector Through Launch of New Buying Company [online] [viewed 18 February 2015]. Available from:
?    Reed, 2015. Palmer & Harvey McLane Ltd jobs [online][viewed 18th Feb. 15]. Available from: http://www.reed.co.uk/jobs/palmer-harvey-mclane-ltd/p5193
?    Sussexckricket, 2015. Sponsor and Partners [online] [viewed 18 Feb. 15.]. Available from: http://www.sussexcricket.co.uk/sponsors
?    The grocer, 2013. Costcutter and Palmer & Harvey tie-up cleared by OFT [online][viewed 18 Feb. 15]. Available from: http://www.thegrocer.co.uk/companies/costcutter-and-palmer-and-harvey-tie-up-cleared-by-oft/348663.article

Executive summary

For the second activity of:

Illustrate how on-going impacts from the Costcutter convenience store subsidiary of Bibby Line Group having transferred its logistics partnership, from Nisa to Palmer & Harvey, are likely to help/hinder its Competitive Advantage, against the convenience store sector and the wider Retail industry – in the Longer-term?

The group has split the work between each members:

?    Applying the strategies models
?    Researching about the P & H Company
?    Researching about Costcutter and Bibby line group
?    Analysing the information and try to identify any issue that does not mentioned

Some issues during the activity:

?    Limited time and working under pressure
?    Enable to access the Bloomberg site to analyse the financial situation for the Costcutter Company

What is the group would do differently in future?

?    Preparing the resources needed for the research in advance
?    Set up the work plan for the whole day and start immediately

Palmer & Harvey and Costutter

Bibby Line Group entered the retail sector with the acquisition of Costcutter Supermarkets Group, the convenience retail group with 1,700 stores operating under its kwiksave, Costcutter, myCostcutter and Rhythm & Booze brands.(Bibbylinegroup.co.uk, 2015)

Costcutter Supermarkets Group is predominantly a franchise business, with over 1,700 convenience stores throughout the UK and Republic of Ireland.
Founded in 1986, Costcutter directly employs over 600 people nationwide and has its head office in York and an office in Belfast. With 1,700 convenience stores throughout the UK and Republic of Ireland.

Originally founded in 1925 as a delivered wholesaler specialising in tobacco and confectionery, Palmer and Harvey has since broadened its wholesale offering and customer base considerably. Customers range from key grocery multiples to forecourts and independent retailers. The Company offers customers up to 11,000 lines spanning ambient (including alcohol), chilled and frozen products.

On Wednesday, March 13th 2013: Costcutter Supermarkets Group and Palmer &Harveytoday announced a strategic partnership that will transform the UK’s £34bn convenience sector.

Advantages of Palmer & Harvey partnership with Costcutter:

1.    Palmer and Harvey joint venture will be exclusive within the convenience sector, providing Costcutter Supermarkets Group with entrance to the largest volume buying power in the sector

2.    Resulting in the most competitive prices for its members as well as an industry-leading range of products and promotions at highly competitive prices.

3.    Darcy Willson-Rymer, CEO of Costcutter Supermarkets Group, said: “We have been focusing only on generating extreme value and demand for our members and it became wholly apparent that without access to the proportionate benefits of our own buying power this could not happen.

4.    P&H Can ensure the best prices, promotions and range for members. Combine this with the industry leading distribution abilities of Palmer & Harvey and we firmly believe that Costcutter Supermarkets Group will present the best possible service to Members.

5.    The values upon which the company was started over 25 years ago, which we know Palmer & Harvey shares, will be strengthened both through the greater control these changes bring but also because, quite simply, the relationship between Costcutter and Palmer & Harvey is traditionally and commercially right.”

6.    Costcutter Supermarkets Group has announced an introduction of a new, adaptation range, negotiated on its behalf by The Buyco. This will include an extensive chilled and fresh scheme, and a new three level own label range for Costcutter Supermarkets Group is developing for all categories and will support through marketing investment that will see it emerge as an industry leading brand.

7.    Palmer & Harvey and new suppliers we will be bringing on board to meet the needs of Costcutter Supermarkets Group members and all of P&H’s existing independent retailers, to ensure we are providing not simply the largest range but the highest value range possible. This brings greater value for everyone, including consumers who will ultimately benefit the most from a strong independent convenience sector.”

8.    All Costcutter Supermarkets Group members will receive a considerably improved service made possible by Palmer & Harvey’s national leading service and infrastructure of 14 depots offering multi-temperature deliveries.

9.    Palmer and Harvey is the UK’s largest full range delivered wholesaler, with an annual turnover of more than £4 billion. The Company has grown since its inception over 80 years ago through a mixture of organic growth and targeted attention.(Palmerharvey.co.uk, 2015)

SWOT Analysis for Palmer & Harvey:

SWOT analysis for P & H company
Internal    Strengths    Weaknesses
•    UK’s number one delivered supplier
•    top delivery network of 14 regional warehouses and work for over 90,000 UK retails
•    over 1,000 vehicles makes more than 60,000 deliveries per week in the UK
•    UK’s leading annual retail trade show Pro-retail.
•    one of the largest privately owned companies in the country
•    it has been around since 1925
•    lack of high competitive strength
•    string of delivery and availability problems
•    retailers are not receiving the high service level as they expect
•    distribution effectiveness
•    environmental affect

External    Opportunities    Threats
•    Expending Business
•     Moving in to new market segments
•    Increase of Internet users
•    Increase of householders
•    Online shoppers
•    Free social media platforms
•    Technological progress
•    Increases demands in the low price stores      •    Price and service wars with competitors
•    Threats from tobacco smugglers
•    Weather disruption
•    Traffic congestion
•    Problems with delivery vehicles

Whittington’s Four Generic Approaches to Strategy

From analysing different evidences shows that interpretation on costcutter using this model.
Costcutter its primary aim to maximise its profit, and it has a formal planned and deliberate approach with a clear strategy and path to follow; as it is a subsidiary of the giant global organisation Bibby line group. Plus, the external influences have been already taken care of and considered in the company’s strategy and values.

Ansoff Matrix

(Edrawsoft.com, 2015)
This is due to Costcutter selling existing product to existing markets and to the local communities in that market in particular, and also trying to increase their productivity and quality for its products through different strategies including, collaboration with other companies like Palmer and Harvey. In addition, the company has expanded in new markets and new sales area such as morocco, and intended to mushroom in other countries like Pakistan. Also, the company is heading toward divarication especially when it comes to entering new market, and in costcutter’s case when entered the Moroccan market, the firm has developed new products and supply other from local suppliers in order to fulfil the demand of local communities there. However, costcutter has been developing its own product for its market (the UK), and has invested to expand in new areas in the UK.

•    bowman’s strategic clock

(Edrawsoft.com, 2015)

Costcutter sits between hybrid and differentiation,
This is due to costcutter offer products at a low cost, but with a higher perceived value than those of other discounter retailers such as, 99p. As a consequence, a company like costcutter try to build a reputation of offering fair price for reasonable goods.

References List

?    Bibbylinegroup, 2015. About us [online][viewed 18 Feb. 15]. Available from: http://www.bibbylinegroup.co.uk/companies/bibby-retail-services/
?    Costcutter, 2015. About us [online][viewed 18 February 2015]. Available from: http://www.costcutter.co.uk/about-us/
?    Edrawsoft.com, 2015. Ansoff Matrix Template and Professional Matrix Software [online][viewed 18th Feb. 15.]. available from: http://www.edrawsoft.com/ansoff-matrix.php
?    http://www.palmerharvey.co.uk/press-room/costcutter-and-ph-to-transform-the-uk-convenience-sector-through-launch-of-new-buying-company
?    PalmerHarvey, 2013. Costcutter and P&H to Transform the UK Convenience Sector Through Launch of New Buying Company [online] [viewed 18 February 2015]. Available from:
?    Reed, 2015. Palmer & Harvey McLane Ltd jobs [online][viewed 18th Feb. 15]. Available from: http://www.reed.co.uk/jobs/palmer-harvey-mclane-ltd/p5193
?    Sussexckricket, 2015. Sponsor and Partners [online] [viewed 18 Feb. 15.]. Available from: http://www.sussexcricket.co.uk/sponsors
?    The grocer, 2013. Costcutter and Palmer & Harvey tie-up cleared by OFT [online][viewed 18 Feb. 15]. Available from: http://www.thegrocer.co.uk/companies/costcutter-and-palmer-and-harvey-tie-up-cleared-by-oft/348663.article

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