Business Strategy And Planning Of Costcutter

Business Strategy And Planning Of Costcutter The corner shop or convenience store, as it is sometimes labelled, has been a feature of retail life in cities and towns from Roman times, if not earlier. To be sure, the Romans articulated the role of the convenience store in everyday life, developed its corporate identity and regarded it as an enterprise that operates optimally within the range of footfall. The Roman streetscape was littered with these stores, most engaging prominent positions, some even corner positions, but all dominating the facades of the masonry buildings they occupied. A characteristic of the Roman convenience store was its integration into the local market, sourcing locally grown farm produce, supplying locally refined products and distributing this merchandise at a local level. With the passage of time, the convenience store began to infiltrate the New World, and remained a characteristic feature of retail life in countries such as Australia, Canada and the United States, until well after the Second World War. But from the 1960s, as the economies of the industrialised world entered a rapid phase of expansion, the supermarkets emerged as the dominant players in the retail grocery sector. Yet, the convenience store managed to survive as a viable economic entity. Nowadays, even supermarket giants such as Tesco and Sainsburys here in the United Kingdom, have begun to penetrate the lower echelons of the retail grocery sector with their own version of the corner shop. Using this concept as a launch pad, Tesco has already made inroads in the United States, though with varying degrees of success. Moreover, Tesco harbours further ambitions to establish its convenience scale outlets in such emerging economies as South Korea. On the face of it, very little appears to have changed over the millennia since the Romans devised the concept of the convenience store. Neighbourhood stores, if they form part of a larger national chain, are still obsessed with such issues as corporate image and identity, not to mention their strategic role in the local market.1 What has changed, however, is the largely oligopolistic nature of the retail grocery sector. By 2010, the major participants in this sector Tesco, Sainsburys, Asda and Morrisons controlled 65.4 per cent of a grocery market valued by industry analysts at a staggering  £118.2 billion2. Given the strongly oligopolistic character of this market, it is hardly surprising to observe that these key players have developed planning strategies that virtually anticipate their competitors next move. In other words, their behaviour is very much retaliatory! There is evidence, too, to suggest that this behaviour is being emulated in the convenience store segment of the market, where the hallmarks of oligopolistic competition are just starting to appear3. COSTCUTTER Costcutter is one of the United Kingdoms leading convenience store chains. Although the majority of the stores trading under its banner are based here, Costcutter also operates outlets in Northern Ireland and Poland. As a typical grocery retailer, Costcutter stocks a comprehensive range of groceries, alcoholic products, tobacco and confectionery. However, Costcutter operates two distinct retail store models : (a) the directly owned outlet; and (b) the independently owned franchised outlet. Both models benefit from economies of scale, so that as the organization grows, so too, does its purchasing power. Yet, those outlets that are independently owned tend to operate along the lines of a retailers cooperative. Costcutter has developed a high profile corporate image, which is bolstered by its own range of branded products. Groceries bearing the company brand name are often shelved alongside those of Nisa Today Costcutters warehousing and distribution affiliate. The companys headquarters are based in Yorkshire. As of December 2006, ownership of Costcutter is vested in James A Barry Co.4 COMPANY HISTORY Costcutter was founded in 1986 by Colin Graves, a former sales employee of the SPAR grocery group. In the short space of just 12 months, Graves set up seven stores in Yorkshire. By 1991, Costcutter had opened its first outlets in Scotland and Northern Ireland. In 1992, the company established a grocery distribution centre in Barnsley. It was then keen to develop its corporate image and identity. By the mid-1990s, Costcutter operated some 500 outlets throughout the United Kingdom, the majority of them franchise-owned. In 2004, Costcutter merged 50 of its outlets with the MURCO fuel distribution group. Thereafter, the Costcutter convenience store found its way onto the forecourts of an increasing number of MURCO petrol filling stations. In addition to their grocery lines, these stores stock car care products and accessories. Exponential growth followed. By 2007, largely driven by a successful franchise recruitment campaign, the total number of outlets under its corporate banner, grew to 1500. Sales turnover exceeded  £600m in 2010, making the company one of the most significant players in the grocery retail sector. For all that, Costcutter is not unlike the other key players in the convenience store market. Costcutter stores occupy prominent high street positions with a typical catchment area covering a radius of a quarter mile. The company continues to enjoy solid growth, though recently its development strategy increasingly promotes direct ownership of outlets. At present, more than 1200 stores in the chain are independently owned by franchisees.5 Business models, concepts and tools in business strategy and planning of costcutter At an early stage in its corporate history, Costcutter put growth at the centre of its retail development strategy. Indeed, the company conducts an aggressive retail recruitment drive to enlist new franchise owners. Ideally, the company seeks existing operations which engage high footfall volumes and occupy floor space of between 1,000 to 1,500 square feet. By contrast, the typical Sainsburys Local or Tesco Express occupies a floor space of between 2,000 to 6,000 square feet. Costcutter does not regard the absence of car parking as an issue. There are a number of advantages which Costcutter offers its franchise owners: an association with a well-established high profile retailer continuous retail training and technical support generous profit margins a loyalty scheme which rewards franchise owners for centralised purchasing improved credit terms both within the group and externally the cost benefits of group purchasing power fast and cost-effective Epos accounting and inventory control an efficient and reliable supply chain cycle a robust business development strategy deploying the services of a range manager to maximise profits and sales turnover extensive national, local and in store advertising6 As an adjunct to this, each franchised outlet is indelibly stamped with the Costcutter corporate identity. All newly franchised premises are refurbished to the Costcutter specification, though refits are tailored to a range of budgets. The process of nurturing company image is achieved through: a conspicuous company logo which largely resembles a banner distinctive company fascia advertising the use of a thematic colour palette to harmonise the in-store ambience the use of a standardised in-store lighting format in-store radio providing a continuous voice for product promotion the shelving of Costcutter branded products extensive advertising The cost of a Costcutter franchise is between  £70,000 to  £100,000. Annual management fees amount to  £1880. Projected first year net profit for a typical outlet is in the region of  £100,000.7 THE BUSINESS DEVELOPMENT STRATEGY At the heart of Costcutters retail development strategy is growth itself. It improves market share and even allows new products to be sold. Above all, growth promotes economies of scale. Such economies are reflected in the companys burgeoning purchasing power and presence in the wholesale distribution markets. From its inception, Costcutter has enjoyed continuous year-on-year growth, despite predatory competition from the huge multiples. Growth has been achieved through: the setting of annual expansion targets a vigorous franchise recruitment program, as noted above the defection of other franchisees from the ranks of competitors notably, from the SPAR group the direct acquisition of small groceries the purchase of other outlets under administration8 Continuous expansion of the Costcutter chain remains a development priority. Not surprisingly, Costcutter has devised an ambitious overseas expansion drive, which at present has targeted such emerging powerhouse economies as India and Pakistan. But such proposed international development is to be accompanied by further consolidation of its core business in the United Kingdom.9 In recent years, Costcutter established a close relationship with Nisa Today, the leading independent wholesale distributor of groceries throughout the UK. Critical to the companys development is the vertical integration of wholesale grocery distribution. Costcutters affiliation with Nisa Today partly achieves this objective. But in 2007, the Bibby Line group, a direct competitor to Nisa Today, acquired a 51% shareholding in Costcutter. In the event, Nisa Today has retaliated by establishing its own retail outlets.10 Despite this, the growth strategy of Costcutter remains the same. That approach incorporates a number of other marketing facets: the development of new lines, especially fresh, locally sourced products promotion of the concept of value for money a narrowing of the cost profile between its outlets and those of the huge multiples promotion of the concept that Costcutter can deliver quality food as needed, thereby avoiding the arduous weekly shopping event an increasing investment in technology, especially as its relates to online marketing the promulgation of a company ethos, culture and set of values, as noted below11 Appraise processes of Costcutter to identify their goals and values THE COSTCUTTER ETHOS Not unlike Tesco, Costcutter espouses a human relations approach that values its customers and staff. The company prides itself in the marketing of fresh, quality products. But unlike Tesco employees and management, Costcutters staff are versatile individuals, well versed in product knowledge across its full range. In addition, all staff together with franchise owners, benefit from continuous retail training. All franchise owners undergo a rigorous induction course. Furthermore, the company has established its own academy to equip store managers and their staff with cutting edge retail techniques. The development of customer loyalty through harmonious relations and rapport is central to the company ethos.12 ANALYSIS OF THE COSTCUTTER GROUP Central to the development strategy of the Costcutter group is its continuing growth. Using the convenience store model it has developed for the UK market, Costcutter is poised to make significant inroads into the emerging markets of Asia. But it is here in the United Kingdom, that Costcutter has reached a mature stage in its evolution. At the top end of the grocery retail sector, leviathans such as Tesco and Asda compete for market share, in what is overwhelmingly an oligopolistic market. Retaliatory marketing techniques are a conspicuous feature of such markets, as these companies clearly demonstrate. Yet, as companies like Costcutter continue to expand, even the bottom end of the retail grocery sector is beginning to display oligopolistic behaviour. Second guessing the competitors next move is par for the course. Nevertheless, Costcutter seems well positioned to fare better than most of its competitors, as it signs up an increasing number of franchisees, attracted by its generous profit margins and reduced overheads. 4.0 CONCLUSION The convenience store has endured as a potent force in the retail grocery sector, despite increasing competition from the huge multiples, such as Tesco and Sainsburys. Indeed, the blue print for the convenience store has largely remained the same since the Romans articulated its role in everyday life. Costcutter remains a robust example of the convenience store concept. The floor space of the typical Costcutter outlet is less than one quarter that of its major rivals notably, Sainsburys Local and Tesco Express. In this way, the typical Costcutter outlet manages to reduce its overhead costs, and at the same time, benefit from the substantial purchasing power of the Costcutter group itself. As a convenience store chain, Costcutter lacks the bureaucratic structure of the huge multiples. Instead, it fosters a more flexible and independent approach to its management. Such flexibility enables its local outlets to purchase outside the central distribution arm of the organization. In recent times, this has allowed the company to stock more local fresh produce. Thus, Costcutter can be perceived as a highly evolved and adaptable form of enterprise, and one which is not just sensitive to the tastes and preferences of the local market, but in some instances, equally sensitive to its ethnic composition.

A Marxist Reading of One Flew over the Cuckoo’s Nest Essay -- One Flew

Fred Wright, Lauren's instructor for EN 132 (Life, Language, Literature), comments, "English 132 is an introduction to English studies, in which students learn about various areas in the discipline from linguistics to the study of popular culture. For the literature and literary criticism section of the course, students read a canonical work of literature and what scholars have said about the work over the years. This year, students read One Flew over the Cuckoo's Nest, by Ken Kesey, a classic of American literature which dates from the 1960s counterculture. Popularized in a film version starring Jack Nicholson, which the class also watched in order to discuss film studies and adaptation, the novel became notable for its sympathetic portrayal of the mentally ill. For an essay about the novel, students were asked to choose a critical approach (such as feminist, formalist, psychological, and so forth) and interpret the novel using that approach, while also considering how their interpr etation fit into the ongoing scholarly dialogue about the work. Lauren chose the challenge of applying a Marxist approach to One Flew over the Cuckoo's Nest. Not only did she learn about critical approaches and how to apply one to a text, she wrote an excellent essay, which will help other readers understand the text better. In fact, if John Clark Pratt or another editor ever want to update the 1996 Viking Critical Library edition of the novel, then he or she might want to include Lauren's essay in the next edition!" At first glance, a reader may wonder how Ken Kesey’s novel One Flew over the Cuckoo’s Nest, a book depicting a group of mentally unstable men and their boisterous Irish-American leader, connects with the economic and sociological view o... ...lett, Moyra. Marxist Literary and Cultural Theories. New York: St. Martin’s Press, 2000. Print. â€Å"Industrial Revolution.† The New American Desk Encyclopedia. 5th ed. 1989. Print. Kappel, Lawrence. Readings on One Flew over the Cuckoo’s Nest. San Diego: Greenhaven Press, 2000. Print. Kesey, Ken. One Flew over the Cuckoo's Nest. Ed. John Clark Pratt. New York: Viking-Penguin, 1996. Print. Viking Critical Library. Loeb, Roger C. â€Å"Machines, Mops, and Medicaments: Therapy in the Cuckoo’s Nest.† Lex et Scientia 13. 1-2 (1977): 38-41. Rpt. Kappel 85-91. Malin, Irving. â€Å"Ken Kesey: One Flew over the Cuckoo’s Nest.† Critique 5.2 (1962): 81-84. Rpt. in Kesey 440-444. â€Å"Marxism.† The New American Desk Encyclopedia. 5th ed. 1989. Print. Parker, Robert Dale. How to Interpret Literature: Critical Theory for Literary and Cultural Studies. New York: Oxford, 2011. Print.

Financial Analysis of McDonalds Company

PART 1, COMPANY OVERVIEW:a. McDonald’s is an American fast food chain that sells a variety of fast food alternatives, but most notably has earned its reputation and success for the hamburger. It is the largest fast food chain in the world, with globally recognized â€Å"golden arches† symbolizing a reliable meal can be had in over 119 countries. McDonald’s has continued to develop their menu to reflect the desire/demands of their customers. The current CEO of McDonald’s is Mr. Don Thompson. b. McDonald’s was started in the 1940s as a BBQ restaurant owned and operated by Richard and Maurice McDonald’s in California, U.S.A.The McDonald’s franchise was not established until 1955, when man by the name of Ray Kroc opened the ninth McDonald’s restaurant in Des Plaines, Illinois. By 1961, McDonald’s filed trademark for the company name and â€Å"drive-thru† service. Ray Kroc eventually forced the McDonald’s brother s out of the business and successfully spread the company throughout the world. Today, McDonald’s is an international sign of globalization. c. McDonald’s invests in properties, operates restaurants, and is a franchiser of the McDonald’s chain, in order to make money. McDonald’s operates differently than most franchise companies. Most franchised companies make their money by claiming a percentage of the income made at each chain; however, often times McDonald’s Corporation will purchase the property the franchise is on and charge rent.d. Arguably, the main thing McDonald’s sells is uniformity and expectations. This is to say, when you order from McDonald’s you know what you will get every single time; no surprises. McDonald’s makes money doing this by selling the food for significantly more  than what they purchased it for. McDonald’s also makes money by participating in the strategy discussed above investing in proper ties and charging franchise owners rent, franchise markups of 40%, operating restaurants, etc. e. McDonald’s has over 33,000 locations in over 119 countries across the globe to include places like Israel, Brazil, Scotland, Russia, the U.S., India, and China. Within each of those countries McDonald’s can be found in a variety of places in a variety of forms; such as, coffee stands in Paris, drive-thru only restaurants in Germany, airport vendors, or even connected to gas stations.f. In recent years McDonald’s has taken criticism on the unhealthy food choices on their menu, so much to where at some restaurants they have listed the total caloric intake per meal. That said, McDonald’s was the official food sponsor of the 2012 Summer Olympics in London, England, where they built their largest restaurant to date to support the massive crowds.PART 2, FINANCIAL OVERVIEW:a. Sales and Income Record:————- Fiscal Years ——â₠¬â€Ã¢â‚¬â€-2007 2008 2009 2010 2011 Sales 22.79 23.52 22.74 24.07 27.01 Percent Change in Sales Each Year3% -3% 6% 12% Net Income 2.34 4.31 4.55 4.95 5.5 Percent Change in Net Income Each Year84% 6% 9% 11%GRAPH OF SALES & NET INCOME, FY 2007 ‑ 2011COMMENTS: Aside from 2009, the company has seen growth in both sales and net income every year. The decrease in sales for 2009 could possibly be a result of the economic times, where many of McDonald’s customers may have reduced their spending and become more conservative with their expenses. The growth percentages since 2010 are increasing, which indicates a positive trend in the company moving forward. It would be unrealistic to assume that the company can continue doubling its growth percentages, but a continued growth of 12% to 15% is possible.b. Expense Distribution:FY 2011 Major Expenses: COGS 16.3 SG&A 2.2 Interest 0.49 Taxes 2.5PIE CHART OF EXPENSES, FY 2011COMMENTS: As depicted in the chart, the companies’ largest expense is Cost of Goods Sold (COGS). In order to increase their profit margin, McDonald’s must continue to try and find ways to reduce COGS. This is because many of the other expenses are much harder to influence. Selling General and Administrative (SG&A) expenses have most likely already been trimmed to the minimum over the company’s life, taxes are required by the Government, and interest expense makes up only a small portion of expenses. The company may need to do a cost-benefit analysis to determine what may be done to reduce COGS. One idea may to better vertically integrate the company, or to remove menu items which are unpopular and/or seasonal.c. Assets Distribution:Year-end FY 2011 Assets: Cash 2.3 Accounts Receivable 1.3 Inventory 0.12 Fixed Assets (PP&E) 22.8 Other Assets 1.67PIE CHART OF ASSETS, Year-end FY 2011COMMENTS: As depicted in the chart, the companies’ assets are largely fixed. This comes as no surprise since the company consists of over 33,000 restaurant locations worldwide. The percentage of fixed assets as compared to current assets does mean though that the company is not liquid, which means it cannot quickly convert its assets to cash. The low inventory which actually makes up just 0.4% of the asset distribution is normal due to the fact that the company is a restaurant chain, and much of the product has a quick shelf life.c. Capital Structure: Year-end FY 2011 Capital Structure:Current Liabilities 3.5 Long-term & Other Liabilities 13.73 Common Equity 14.4CAPITAL STRUCTURE PIE CHART, Year-end FY 2011COMMENTS: As depicted in the chart, the companies’ capital structure is made up largely of common equity and long-term liabilities. The compa ny has been extremely successful, and has gained equity over the years as it became the world’s largest chain of hamburger fast food restaurants. Additionally, in order to continue their growth, the company has expanded its locations, which required long-term debt financing. Because of these characteristics,  the percentages of each of these categories are expected. Furthermore, the company has low current liabilities, which is normal for yearly operations in this sector.PART 3, RATIO ANALYSIS:(1) LIQUIDITY:Comments On McDonalds Liquidity:McDonald’s has a good current ratio. It is above 1, which means that it has enough current assets to cover current liabilities. Also, since the number is not too high, we know that the company is utilizing its assets efficiently. The quick ratio is also good because it is above 1, meaning McDonald’s does not rely on their inventory. Comparing the numbers to Wendy’s, McDonald’s has room for improvement.(2) ASSET MANAGEMENTComments On McDonalds Asset Management:McDonald’s has great Total Asset Turnover when compared with Wendy’s. They are making over $0.75 for every dollar of assets. Also, their Average Collection Period is very good, taking on average 18 days to collect on receivables.(3) DEBT MANAGEMENT:Comments On McDonalds Debt Management: Both companies’ debt ratios are similar, and are not alarming for the industry. However, McDonald’s Times Interest Earned is much higher than Wendy’s. This shows possibly lenders that McDonald’s can easily meet their interest owed (17x).(4) PROFITABILITY:Comments On McDonalds Profitability:For the industry, McDonalds has good profitability. Wendy’s seems to be struggling in this area, and it may be best to compare the company against another peer to determine how they are doing.(5) MARKET VALUE RATIOS:Comments On McDonalds Market Value Ratios:McDonald’s market value is good compared to both indust ry numbers, as well as against Wendy’s market value ratios. McDonald’s ratios prove the company is economically strong. Part 4, Summary and ConclusionThe McDonald’s Company is continuing to grow, both physically and monetarily, as seen in the increase in locations and sales per year. This is a good sign, especially during the current economic times. The company also has standard asset, expense, and capital distribution for companies within the fast food industry. This is good because there are no glaring issues that would inhibit investing in the company. Additionally, the company has great ratios when compared with The Wendy’s Company, as well as the rest of the fast food industry. One can fully understand how well the McDonald’s company is doing in comparison to the industry.Looking forward, the McDonald’s Company can try to get better by finding efficiencies where possible. One way the company could do this is by reducing its Cost of Good s Sold. Through eliminating some specialty items, this may be possible. Also, the company may want to look at a way to increase their return on assets and equity as any increase, large or small, will always help a company. Again, the company is doing extremely well already, but great companies should always continuously look for efficiencies and improvements in these areas.Overall, the McDonald’s Company has postured itself to become a large and extremely successful company within the fast food industry. It has grown from a small upstart in the 1940’s, to a symbol of globalization today  because of the multiplicity of restaurant locations around the world. I believe The McDonald’s Company is a great investment opportunity as it seems to continually improve, develop, and grow to serve its consumers around the world.

Social Limitations of Autism - Free Essay Example

Sample details Pages: 3 Words: 801 Downloads: 9 Date added: 2019/02/14 Category Medicine Essay Level High school Tags: Autism Essay Did you like this example? In a society that is deprived of face to face contact, it is very easy to get lost on your phone, tablets, etc. As members of society, we often task our social skills for granted, thinking that is automatic and something that everyone possesses, which isn’t the case. For people on the autism spectrum disorder, what people think is innate is what they struggle with the most. The issues that they face vary from person to person, but they all share the same ideal of isolation. Autism is classified as a disorder of neural development, which is often associated with restricted and repetitive behavior. It was first discovered by Leo Kanner in 1943, in which he believed that the disorder arose at birth and developed in the first few months of life. While many stigmatize autism and write it off as a mere case of mental retardation, there are many individuals that are affected by this label. The autism spectrum ranges from low functioning individuals who need 24/7 assistance to individuals who can fend for themselves but have a few social quirks. In fact, some people diagnosed with autism are listed savants, which are people diagnosed with Autism Spectrum Disorder that display extraordinary talents and surpass abilities of professionals that have studied a topic for years. With savants, their talent usually lies in something specific, an example being architecture. Without prior knowledge and one glance of a landscape, a savant could memorize the infra structure down to the last detail and draw it out perfectly. Even with this almost supernatural memory, a savant still has trouble socially, and most will just write him off as a â€Å"idiot savant†. Don’t waste time! Our writers will create an original "Social Limitations of Autism" essay for you Create order Social limitations in autistic individuals is a very complex and puzzling topic. The difficulties common for young children with ASD focus on their ability to engage jointly with others (joint attention/joint engagement), and the amount and quality of their interactive skills to enter into or maintain interactions with peers (Interventions Addressing Social Impairment in Autism, Kasan and Patterson). In a scientific context, the disorder correlates to impaired development of limbic connectivity, though in recent years it has become increasingly known that it affects all areas of the brain, as opposed to specific areas associated with social functioning. In terms of memory, a research study that included neurologist Nancy Minshew showed that children with autism lacked good memory for complex information in the form of words and pictures. In the same study, it also showed that they lacked working memory for spatial information, which meant recalling an item once it was no lon ger presented to them. Essentially, their memory is very fragile, and at times can find themselves repeating many things because they often don’t remember themselves saying it. To precisely pinpoint what may be going on in these children, various interventions have been developed in order to analyze a controlled environment of autistic patients. In a social skills intervention designed by Connie Kasari and Stephanie Patterson, the main targets were knowledge and conceptual understandings, peer relationships/friendships, and joint attention/joint engagement. The interventions were ran under the theory that sustained knowledge of social behavior would result in improving social interactions in real time. While focus on core deficits increased, future designs needed to address the active causes of interventions, which can be parents, environment, etc. Out of the 35 designed that required intervention, many were deemed weak, and only 3 were deemed strong. 2 of the studies considered strong were conducted by Kasari herself, and involved different types of intervention. The first one involved JASPER vs. delayed intervention involving 38 toddlers(n=38) and it measured observed joint engagement, play types, joint attention skills, and caregiver quality of involvement. The results yielded increases in immediate treatment gro up and decreased in object only engagement. The second study involved child assisted, peer assisted, and child plus peer vs. control intervention and it measured social network salience, playground observation, and teacher perception social skills. The results yielded child and peer group increases in social network salience over child, peer, and control while solitary engagement decreased for children in the peer intervention. The last strong study conducted composed of 61 preschool students(n=61). It involved joint attention intervention vs. treatment, and it measured observed duration of joint engagement. The results yielded increases in frequency of JA skills in teacher child interaction and increase in joint engagement, being the only study in the interventions that didn’t not see a decrease in anything. While the studies that were rated strong showed promise and serves as a template for future interventions, there is still a lot of work to be done to find something that can universally help out individuals affected by ASD. Not every autistic person turns out to be a savant, so a â€Å"Rain Man† approach cannot be applied to every person.