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JJC Prelim 2010 Case Q1

JJC Prelim 2010 Case Q1

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Published by: Michael Calderone Chee on Oct 01, 2011
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HWA CHONG INSTITUTIONCollege 1 Promotional Examinations Preparation 2011 RevisionGeneral Certificate of Education Advanced LevelHigher 2
PAPER 1 Case Study QuestionAdditional Materials: Answer Paper
1 hour 10 minutes
 Name: ( ) CT Group: _______ 
Write your name and CT on all the work you hand in, including this cover sheet.Write in dark blue or black pen on both sides of the paper.You may use a soft pencil for any diagrams, graphs or rough working.Answer
Question 1
.Indicate the questions that you have attempted on this cover sheet.The number of marks is given in brackets [ ] at the end of each question or partquestion.
Marks Awarded
1b1c1d1eTotal Marks
This paper consists of
printed pages, including this cover page.
UK Grocery MarketExtract 1: UK Amazon grocery launch
Amazon today launched a grocery division offering free delivery on thousands of householdgoods. The online retailer, which launched in the UK in 1998 as a bookseller, will offer22,000 top grocery items. As well as selling individual items the Amazon.co.uk grocery storeallows customers to save money by bulk-buying items such as nappies and washing powders.Goods on sale will also include a large selection of international and specialist itemsincluding organic, gluten free and sugar free ranges. Customers will be able to shop via theircomputers or their smart phones.Source: Adapted from
7 July 2010
Extract 2: Internet grocery shopping is booming
Internet grocers are more popular in UK, largely because many city-dwellers lack cars.Verdict, a research firm, reckons that internet orders will account for almost 5% of the UKgrocery market this year and perhaps double that by 2014. For example, the sales of Ocado,an online grocery, has increased by 21% a year since 2007. However many of the onlinegrocery firms are finding it difficult to make profits. Grocers sell perishable products thathave to be kept frozen or cool and that must also be delivered at specific times. To makematters worse, online grocery shoppers tend to want their food delivered at the beginningor end of the week, leading to a crush of orders. All this is expensive.Source: Adapted from
15 July 2010
Extract 3: Asda Pricing Strategies
Christmas would not be Christmas without a supermarket price war, and last November twoof the leading UK grocery retailers, Asda and Tesco, duly kicked off the battle for thenation's festive spend by announcing that they were cutting millions of pounds off prices intheir stores. Tesco said it was cutting its prices by £250m and Asda said it would roll backprices to the tune of £150m. Persuading customers that they represent better value formoney than their rivals, at a time of year when people traditionally increase their groceryspending significantly, is vital to supermarkets meeting their end-of-year profit targets. Butit has become almost impossible for shoppers to know what, if anything, the discountsactually mean for them.The Guardian looked at data provided by third party analysts on thousands of prices inTesco and Asda between 9 and 22 December, when most people will have done their bigChristmas shop. As well as the thousands of price cuts promoted by the supermarkets, weidentified thousands of price rises
some of them more than doubling the price of keypurchases. The list of increases, taken from information on the supermarkets' online storeswhich they say is reflected nationally in their shops, is published on our website. We askedProfessor John Bridgeman, who as director of the Office of Fair Trading led official inquiriesinto the big UK supermarkets, to analyse and interpret the figures for us. The data shows
that between 9 and 22 December Asda increased prices on more than 2,000 lines whileTesco upped the price of over 1,500 lines. Bridgeman's view was that the rises we foundrepresented "a systematic, cynical and aggressive attempt to exploit demand overChristmas and force prices up". Bridgeman accepts that price rises are sometimes areflection of increased costs from suppliers, but believes the number and size of the rises wehave found shows Tesco and Asda using the Christmas period to "extract maximum profit"from shoppers who are too busy to go elsewhere. The rises are targeted, he points out, atheavy store cupboard goods and essentials for the holiday period. He said the Guardianinvestigation stood out in a field where there was very little independent tracking of supermarkets pricing strategies.Source: Adapted from
12 Feb 2010
Extract 4: Asda reignites banana wars with new price cut
The banana price wars are back, after Asda this morning cut the price of 1kg of loosebananas from 68p to 58p.The new price is the lowest cost for a kilo of bananas in the mults for almost a year. The lasttime bananas were on sale for less than 60p/kg was during the week of 12 November 2010,
when Asda, Sainsbury’s and Morrisons were selling the benchmark fruit at
Asda’s move on comes in the week that arch rival Tesco debuted its Big Price Drop and
represents the latest episode in an ongoing tussle over bananas that has run for more than ayear.In April, Asda lowered its price from 77p/kg to 68p/kg, having previously led moves to lowerthe price to 55p/kg in the wake of a raft of price reductions on staples last summer.
The supermarket’s price cuts were swiftly followed by the other mults but, at present, Tesco,
Sainsbury's, Morrisons and Waitrose are all still selling at 68p/kg.Source: thegrocer.co.uk, 30 September 2011

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