Retailing Industry of UK Essay Example | Topics and Well Written Essays - 3250 words

Retailing Industry of UK - Essay Example This report is structured into four sections. Section two of the paper presents a brief overview of the UK retail sector, using some key players such as Tesco, J.Sainsbury, Morrison and Mark and Spencer. The third part of the report focuses on how the sector is affected by factors in the PESTLE framework. Part four of the paper provides an argument in support of how an understanding of these factors by a firm can create a competitive advantage. The section also provides a brief conclusion and recommendation. Like macroeconomic analysis the analysis of the industry is important because it enables the analyst to make abnormal profits arising from information asymmetry between the proper analyst and competitors who fail to carry out a proper analysis. Just as it is difficult for a firm to do well in a poor macroeconomic environment, so too is it difficult for a firm to perform well in a troubled industry. (Bodie et al, 2002). Similarly, as performance can vary across countries, so too does it vary across industries. (Bodie et al, 2002). This section examines the activities of key players in the UK retail sector. It focuses on the activities of some of the major players such as TESCO, Morison, J.Sainsbury and Mark and Spencer (Report 2008). Tesco PLC is an international retailer. ... (Bodie et al, 2002). Similarly, as performance can vary across countries, so too does it vary across industries. (Bodie et al, 2002). This section examines the activities of key players in the UK retail sector. It focuses on the activities of some of the major players such as TESCO, Morison, J.Sainsbury and Mark and Spencer (Report 2008). Tesco PLC is an international retailer. The principal activity of the Company is food retailing with over 2,000 stores in the United Kingdom, the Republic of Ireland, Hungary, Poland, the Czech Republic, Slovakia, Turkey, Thailand, South Korea, Taiwan, Malaysia, Japan and China. Tesco offers simple travel insurance, food retailing, Tesco personal finance, Telecom, and recycling facilities to the public. J Sainsbury Plc is a United Kingdom-based food retailer with interests in financial services. The Company is principally engaged in grocery and related retailing, and financial services (Report 2008). Wm Morrison Supermarkets PLC is engaged in the operation of retail supermarket stores and associated activities. Its business is mainly related to food and grocery. During the fiscal year ended February 4, 2007, it operated 368 Morrisons stores, with 10.5 million square feet of retail space. Through its stores, Wm Morrison Supermarkets PLC offers a range of goods, which include fresh foods, groceries, home and leisure products, beers, wines and spirits (Report 2008). 2.0 Growing Trend of the PESTLE framework and How its affects the UK Retail sector In business, environmental analysis is an appreciation of the activities of an organization in relation to its environment (Lin& Lee 2006). Such analysis