Sunderland Business School

PGBM16
Global Corporate Strategy
- Off-Campus -

Individual Assignment
Case Study – Strategy Development in the
Global Food Retail Supermarket
Industry

Module Leader: Dr. Augustus Osseo-Asare

Module Tutor: ?????
Submission Date: Thursday 18th May 2011
Word Count: 3,500 words
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Introduction:
This individual assignment will be assessed by means of a 3,500 ± 10% word Report. The assignment
has been designed to allow you to develop and use your knowledge and skills in understanding key
strategic issues relating to food retail internationalisation. You will be required to apply the strategic
concepts and analytical techniques studied in this module. All the learning outcomes below will be
assessed:
1. Demonstrate critical understanding and application of relevant theories associated with global
corporate policies and strategies.
2. Understand the holistic nature of strategy and apply analytical techniques to solve complex
problems in real life organizations
3. Demonstrate knowledge of the strategic decision making process through critical analysis of how
strategic decision making enables an organisation to relate to its global business environment.
4. Critically evaluate and monitor the business mission, objectives and policies of international
organisations.
5. Use critical reflective skills to reflect on the impact of their understanding on the problem solving
process

The assignment will be internally moderated by: John Dixon-Dawson

Please note:
1. All work must adhere to the University regulations on ‘Cheating, Collusion and Plagiarism’
which are provided as an Appendix in your Programme handbook. See your tutor for useful
guide on ‘Harvard Referencing Style’ and on how to avoid ‘Plagiarism’.
2. A hard copy and an electronic copy on DVD or CD of the assignment must be handed to your
Study Centre on or before the appointed date under cover of the Sunderland Business School
Feedback Sheet.
3. Issue Date: Friday 18th May 2011
4. Submission Date: Thursday 18th May 2011

Task
Your task is to carry out a critical analysis and evaluation of the strategies adopted by world-class food
retailers, using the information provided and other materials researched. You will be expected to select
and apply appropriate theories, techniques and models studied during the module whilst having regard
to the practical aspects of strategy development.
Your assignment should be presented in a Business Report Format and should be within the range
3,500 ± 10% words (excluding executive summary, references and relevant appendices). The report
should include a title page and executive summary and be fully and consistently referenced, using
Harvard Referencing style. You must also submit a DVD or CD containing an electronic version of the
report. This should be clearly labelled with your name, your course and the name of the case study.

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It is recommended that you research information additional to the case study to support your
arguments. This may be obtained from a diverse range of sources and you are encouraged to research
the issues in whichever way you deem appropriate.
Assessment Criteria
In the event of failing this individual assignment, normal referral / deferral procedures will apply. This
assignment carries a weighting of 100%. The assessment will focus on the level of ANALYSIS carried
out. That is, the application of THEORETICAL CONCEPTS studied in the module to the ‘practical’
case study presented. In other words, you should proceed beyond a DESCRIPTION of the company
and its actions. You should be analysing ‘why’ rather than describing ‘what’. The assignment will be
assessed and moderated by two members of staff in accordance with the marks allocated to each of the
questions detailed below. 10% of the marks are set aside for the ‘presentation’ criteria.
Academic Rigour

• your ability to isolate the key strategic issues

• the coherence and depth of the analysis of those issues
• the ability to analyse the strategy context within which companies operate
• the ability to critically review and evaluate strategic decisions made by companies
Methodology

• the use of relevant evidence, from material provided and personal research to support any
statements made
• the appropriateness of the methods used and theoretical models and frameworks applied
• the breadth and depth of research undertaken
Evaluation of data
• the ability to make sound recommendations or conclusions arising from the analysis
• the soundness of arguments put forward
Presentation
• the summary of arguments
• report layout and format
• use of illustrative material and evidence to support arguments
• the appropriateness of length
• the quantity and accuracy of referencing

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The Global Food Retail Supermarket Industry

The entire global food industry, from growing to processing to retailing, is an extremely competitive
industry where profit margins have become so low that it is often challenging to maintain profitability
(www.plunkettresearch.com/Industries/ ).The global food retailing industry is a complex collection of
diverse supermarket chains, independent food stores, and direct-to-consumer services that supply
much of the food consumed today. The supermarket and hypermarkets are where tens of thousands of
products are gathered in one location, in continuous, year-round supply. Global food retail sales are
about $4 trillion annually, with supermarkets and hypermarkets accounting for the largest share of
sales (www.ers.usda.gov/). In the U.S., the food retail supermarket industry is under attack by Wal-
Mart, Costco and Target. Wal-Mart now has the leading market share of American supermarket sales.
At present vast changes are sweeping through the industry as major supermarkets such as Safeway and
Kroger cut prices and lower operating costs dramatically, while others are being sold to private
investors. (www.plunkettresearch.com ; www.ers.usda.gov/).

Question One:
Wal-Mart, Carrefour, Tesco, Metro and Kroger are among the top five food retailers. Using
examples from any TWO of these five food retailers, critically examine the main arguments for and
against ‘globalization’ in the food retail industry in terms of:
(a) Strategic Alliances, Merger and Acquisition (M&A) activity,
(b) Threat of New Entrants and Substitutes, and
(c) Bargaining power of suppliers and buyers.
Your answer should be based on critical analysis of developments in the global food retail supermarket
industry over the past 12-18 months. [30 % marks]

Question Two:
Globalisation of food retail is not an emerging or imminent strategy, but a current focus for many food
retailers. Established supermarket retailers recognise that with domestic organic growth becoming
more difficult to sustain in mature markets, expansion into new markets is a necessary step towards
securing future profitability.
Critically evaluate the global food retail market dynamics since the year 2000 in the context of the
above statement and discuss how Wal-Mart OR Tesco continues to invest into food retail facilities in
order to secure future profitability, with particular focus on their innovation strategies. [30% marks]

Question Three:
Using relevant leadership and management theories, discuss the ability of Mike Duke the current
President and Chief Executive Officer of Wal-Mart to quickly improve Wal-Mart’s products and
customers’ perception by the year 2015.

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You are expected to use relevant data/information from Annual Reports on Wal-Mart’s website, and
your own understanding of the approach to strategy development at Wal-Mart since 2005.
[30 % marks]
Note: 10% marks is allocated for presentation

Suggested Reading:
Textbooks:
De Wit, B. and Meyer, R. (2004) - Strategy Process, Content, and Context International Perspective, 3rd
Edition, Thomson Learning
Johnson, G., Scholes, K. and Whittington, R. (2005) Exploring Corporate Strategy: Text and Cases, 7th
Edition, Financial Times Prentice Hall.
Lynch, R. (2006) Corporate Strategy, Fourth Edition, Financial Times Prentice Hall.
Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) Strategy Safari, Financial Times Prentice Hall

Websites & PDF documents:

http://walmartstores.com/ - Walmart Stores
http://www.walmart.com/ - Wal-Mart
www.carrefour.com/ - Carrefour Food Retail
www.economist.com The Economist
www.ers.usda.gov/Briefing/GlobalFoodMarkets/Industry - Global Food Markets: Industry Structure
www.ft.com The Financial Times
www.kroger.com/ - Kroger Food Retail
www.metrofoods.net/ - Metro Food Retail
www.plunkettresearch.com/Industries/ - Plunket Research
www.tesco.com/ - Tesco Food Retail

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http://walmartwatch.com/wp-content/blogs.dir/2/files/pdf/native_americans_fact_sheet.pdf

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