Assignment 4 Business Environment
Business Environment
Assignment 4
Contents
Question 1a 4
Question 1b 6
Question 1c 8
Question 2a 9
Question 2b 12
Question 2c 13
Question 3a 13
Question 3b 15
Question 3c 16
Question 4a 18
Question 4b 19
Question 4c 21
Notes 24
Reference list 24
Introduction
The Musgrave group is Ireland’s largest grocery wholesale/distributor and retailer. The Organisation is family owned, founded in 1876 and is the second largest private employer in Ireland (38,000). The business is split into two areas its large wholesale/distribution sector Musgrave and its retail sector SuperValue & Centra. The SuperValue brand caters for the larger weekly shopping needs of customers while Centra targets the convenience market. SUPERVALU brand is in direct competition with Tesco, Dunne’s stores and Sainsbury (Northern Ireland) and has a market share of 23% with Mugrave group sales totalling £6.4 billion. However the business model differs from all its competitors in that all stores, IE 232 SUPERVALU & 551 Centra, are franchised with locally based owners, set up as private limited companies. The franchisee avails of the extensive product range, marketing and distribution capabilities of the Musgrave SUPERVALU Centra (MSVC) brand. While MSVC gains local entrepreneurs that maintain the company ethos of community based retailing that champion’s local produce supporting the areas in which they operate.
Question 1a
Organisational objective should allow everyone involved in the business to know exactly where the business wants to go in the future. To make profit is the primary aim or objective of most businesses however this is vague objective and does not explain how a business plans to reach this goal. MSVC set mid to short term goals according to the SMART principle of objective management IE specific, measurable, achievable. Relevant and time scaled. This for example includes the targets for 2012 of consolidating their home market share of 23%-25% and increasing
Assignment 4
Contents
Question 1a 4
Question 1b 6
Question 1c 8
Question 2a 9
Question 2b 12
Question 2c 13
Question 3a 13
Question 3b 15
Question 3c 16
Question 4a 18
Question 4b 19
Question 4c 21
Notes 24
Reference list 24
Introduction
The Musgrave group is Ireland’s largest grocery wholesale/distributor and retailer. The Organisation is family owned, founded in 1876 and is the second largest private employer in Ireland (38,000). The business is split into two areas its large wholesale/distribution sector Musgrave and its retail sector SuperValue & Centra. The SuperValue brand caters for the larger weekly shopping needs of customers while Centra targets the convenience market. SUPERVALU brand is in direct competition with Tesco, Dunne’s stores and Sainsbury (Northern Ireland) and has a market share of 23% with Mugrave group sales totalling £6.4 billion. However the business model differs from all its competitors in that all stores, IE 232 SUPERVALU & 551 Centra, are franchised with locally based owners, set up as private limited companies. The franchisee avails of the extensive product range, marketing and distribution capabilities of the Musgrave SUPERVALU Centra (MSVC) brand. While MSVC gains local entrepreneurs that maintain the company ethos of community based retailing that champion’s local produce supporting the areas in which they operate.
Question 1a
Organisational objective should allow everyone involved in the business to know exactly where the business wants to go in the future. To make profit is the primary aim or objective of most businesses however this is vague objective and does not explain how a business plans to reach this goal. MSVC set mid to short term goals according to the SMART principle of objective management IE specific, measurable, achievable. Relevant and time scaled. This for example includes the targets for 2012 of consolidating their home market share of 23%-25% and increasing