MBA-ODL : MARKETING MANAGEMENT IN DIGITAL AGE

1.0) Case Study Analysis - UK Food Shortage

by Siti Zaidah bt Abdullah

2.0) TABLE OF CONTENTS

No Content
1 Title of Page
2 Table of Contents
3 Problem Identification
4 Analysis of Problems and Issues
5 Evaluation of Alternative Solutions
6 Recommendations
7 List of References
8 Appendices
 3.0) Introduction and Problem Identification

The critical phase or economic crisis plaguing the UK economy has been widely publicised,
with Newspapers and politicians are predicting a "winter of discontent," a reference to the wave
of strike action that drove the British economy to its knees in the 1970s (CNN Business, 2021).
The slow economy growth, high unemployment, decline in Gross Domestic Product (GDP)
and excessive inflation, are even being discussed. Therefore, even several major economies,
including the United States, China, and Germany, are experiencing food and energy shortages,
as well as supply chain disruptions, but Britain is suffering even more. With the coronavirus
epidemic, there was a scarcity of heavy goods drivers to make deliveries. Moreover, there were
problems in term of shortage in labours (especially the truck drivers), unskilled labours, and
food supply vulnerable. In addition, it has been identified the problems occur like the lack of
carbon dioxide gas and increasing of the food price which will be explained as below.

4.0) Analysis of Problems and Issues

4.1) Workers Shortage

The UK government's version of Brexit, which imposed strict immigration policies and cut
Britain off from the EU's goods and energy markets, making it much more difficult for British
businesses to hire European workers and doing business with the country's single largest
trading partner much more expensive. Other options for a future EU-UK partnership were
available at this time. Worker shortages, like going it alone on energy, were not a guaranteed
result of Brexit. However, in Prime Minister Boris Johnson's ideological push to "get Brexit
done" amid heated talks with the European Union, agreements in important critical areas,
including as energy, were overlooked. This we can relate with what we have learned in Chapter
3, whereby the marketing environment from external factors like political can influence its
marketing operations. On top of that, UK put their army on standby to deliver fule as shortage
of tanker drivers, which trigger large number of panic buying by British motorists. " If
necessary, military personnel would be deployed to provide additional capacity to the supply
chain as a temporary measure to relieve pressures created by spikes in localised gasoline
demand," UK Business Secretary Kwasi Kwarteng said in a statement. (CNN Business, 2021).
In order to curb the panic buying issue, supermarket chains such as Sainsbury's, Morrisons, and
Tesco (TSCDF) were working closely with their suppliers to preserve supply and guarantee
that all sites received the fuel, aside from Shell restocking the fuels within 24 hours, as reported
by CNN Business (CNN Business, 2021)."

4.2) Unskilled labors

Despite a domestic unemployment rate of approximately 5%, the According to the government,
the post-Brexit immigration system was created to minimise the number of unskilled
employees entering the country and lessen the country's "dependence on cheap, low-skilled
labour." "In the end, the government made a political decision to make low-skilled immigration
more difficult," Joe Marshall, a senior researcher at the Institute for Government, an
independent think tank, explained, if the UK had preserved free movement of people after
Brexit, labour shortages would have been less severe." The administration plans to issue
temporary permits to 10,500 foreign truck drivers and workers in the poultry business. Industry
organisations, on the other hand, suggest the measure will have little impact, mainly because
EU employees are unsure whether they want to return to a country that has become increasingly
hostile to their presence. As a result, the government should extend the short-term visas for
workers. According to Care England, which represents independent providers, the adult social
care sector is also facing a "workforce crisis" and will need to hire foreign employees to fill the
gaps. In this case, they should advertise more to boost recruitment and provide training to their
staffs.

On top of that, due to supply chain restrictions aggravated by Brexit, Consumers in the United
Kingdom are confronting increasing food and energy costs at the same time. Customers will
spend more for their weekly or Christmas shop as a result of a lack of variety and growing
supply chain costs, (CNN Business, 2021)". This might be a factor of production and
distribution costs.

4.3) Food Supply Vulnerable

Due to a lack of personnel, farms and food processors have been compelled to cut back on
production or simply throw away crops. This has resulted in supermarket product offerings
being decreased and, in some circumstances, vacant shelves. This lead to food insecurity
among society during pandemic. Futhermore, increasing farm and food processing company
pay costs will rise as a result of attracting more British workers.

4.4) Energy Crisis

Food prices are rising as the United Kingdom deals with a surge in natural gas and energy
costs, owing in part to cold spring temperatures earlier this year, rising demand from China,
and reduced supply from Russia. In Europe, too, rising energy prices are a worry. A lack of
large natural gas storage facilities, delayed maintenance work, and a fire that shut down a power
line from France have made the situation particularly bad in the United Kingdom have
aggravated the supply shortage. Due to rising gas prices, a major US fertiliser firm has halted
output in the UK, thus cutting off most of the country's carbon dioxide supply to the food and
beverage industry. The gas is used to make carbonated drinks and to stun animals for slaughter.
It is also utilised in packaging to lengthen the shelf life of fresh, chilled, and baked items.
5.0 Evaluation of Alternative Solutions

5.1) Workers Shortage

There was no one to transport products where they needed to go without European truck
drivers. The supermarket aisles appeared to be less crowded. Tankers haven't been able to bring
enough fuel to gas stations in the last week, resulting in a serious gasoline shortage across the
country. Automobiles are backed up in huge queues at gas stations, with signs indicating that
the stations are out of fuel. Besides, moving items to distribution centres or channels, as well
as transporting supplies and things to manufacturing locations, is tough for manufacturers. Part
of the reason for the shortage of lorry drivers is that they are shifting to online merchants and
starting to deliver for Amazon and Tesco in order to receive better hours and pay. Hence, there
should be a salary hike for the existing employees to ensure staff retention. As a result of the
shortage of lorry drivers in the UK, supermarkets are receiving less deliveries of everything
than they used to, so when a product sells out, it takes longer for them to replenish the shelf.
Therefore, the manufaturers and distributers should invest in technology especially during this
digital era.

5.2) Unskilled labors

UK government must be well aware to overcome the negative impact on the environmental
factors are imposing on the manufacturer or firm’s marketing activities. The government would
offer short term permits to 10,500 foreign truck drivers and poultry industry workers to relieve
the demand. Industry organisations; point of view, mention the measure won't make significant
difference, might be because it's uncertain EU workers whether want to return to a country that
has become increasingly hostile to their presence. Therefore, the government should extend the
labours’ short term visa. The adult social care sector also faces a "workforce crisis" and will
need to recruit overseas workers to fill up the vacancies, according to Care England, which
represents respective providers. In this event, they should spend on advertisement to recruit
more candidates and provide training to their current and potential employees.

5.3) Food Supply Vulnerable

According to recent study, the East Midlands, Yorkshire and the Humber, and the North East
have the worst food shortages in the UK. Over the previous fortnight, more over one in five
residents in the North East, East Midlands, and Yorkshire and the Humber have been unable to
purchase basic food products. In the North East and Yorkshire and the Humber, 21% of
residents were unable to purchase non-essential food items, while this ratio was 22% in the
East Midlands. Food shortages at supermarkets and restaurants are "permanent," according to
an industry executive, and shoppers will never again have a full selection of foods. According
to Mr Wright (Head of The Food and Drink Federation- FDF) , the food and beverage business
is short around half a million jobs, or about one-eighth of the total number of workers it
requires.

Part of the shortage was due to EU people fleeing the UK as a result of both the pandemic and
Brexit. Staff shortages, prompted by a combination of Covid and Brexit, have killed the "just-
in-time" delivery model, according to the chairman of the Food and Drink Federation (FDF).
According to the FDF as well, the food and beverage industry is short almost half a million
workers, or one in every eight people employed in the country. Mr Wright explained that the
scarcity is caused by "a number of things." He predicted that the resulting supply chain
problems will "only grow worse," adding that "it's not going to go better any time soon."

A shortage of heavy goods vehicle (HGV) lorry drivers has been criticised by several firms,
including supermarkets, bars, and restaurants, for generating problems in their supply chains,
including product shortages. EU employees departing the UK after Brexit, as well as during
the pan, have been blamed for lorry driver shortages.

5.4) Energy Crisis

There was no one to transport products where they needed to go without European truck
drivers. The supermarket aisles appeared to be less crowded. Tankers haven't been able to bring
enough fuel to gas stations in the last week, resulting in a serious gasoline shortage across the
country. Everywhere you look, automobiles are backed up in huge queues at gas stations, with
signs indicating that the stations are out of fuel.
All of this could have been avoided. Brexit could have been handled more cautiously and
pragmatically, with possible concerns identified and addressed ahead of time. That was not the
case. Instead, pointing out roadblocks to its implementation was interpreted as evidence of a
lack of patriotism.

Objective fact, on the other hand, did not vanish; it was just ignored. And now it's wreaking
havoc on the economy, affecting everything from fish exports to fuel supplies.

6.0) Recommendations

In brief, the most serious impact of Brexit on the United Kingdom has been labour shortages.
After the Brexit vote or during the coronavirus outbreak, tens of thousands of European
workers who had lived in Britain under the EU's free-movement laws emigrated. They were
fed up with being viewed as a nuisance, and after the epidemic hit, they just wanted to be near
their loved ones. However, after the United Kingdom exited the European Union, free
movement was no longer possible.

Brexit supporters argued that this was a good thing since it would improve domestic salaries
and make it easier for domestic workers to find work. However, European personnel were
critical to the British economy's operation. Labor shortages would wreak havoc on society if
they didn't exist – in stores, restaurants, and other places.

The UK Clothing Retailer Next , NXGPY (2021) said, "For the sake of the wider UK economy,
we hope that the government will take a more decisive approach to the looming skills crisis in
warehouses, restaurants, hotels, care homes, and many seasonal industries," . Economists are
already warning that rising prices, fueled by labour shortages, clogged supply chains, and rising
energy costs, could stifle UK growth and raise inflation, which is already at its highest level in
more than two decades. Britain's GDP is still 2.1 percent smaller than it was before the
epidemic, and Berenberg economists recently revised their full recovery prediction to the
second quarter of 2022.
7.0) Appendices

Submission date : 21 Nov 2021

Submission ID: 1704226081
WordCount: 2072
8.0) List of References

Katie Grant (2021).UK Foodshortages:Supermakets may start rationing meat ahead of

Christmas amid gas crisis.https://inews.co.uk/inews-lifestyle/food-and-drink/food-shortages-
gas-crisis-supermarkets-meat-rationing-christmas-1242061

Robert Plummer (2021). Shortage Problem: What’s the UK running low on and
why?.https://www.bbc.com/news/business-58721085

Esylt Carr (2021).Food Shortages could be permanent,wants industry

bdy.https://www.bbc.com/news/business-58519997

Explained Desk,New Delhi(2021).Explained:What is causing food shortages in the

UK?.https://www.google.com/amp/s/indianexpress.com/article/explained/uk-food-shortage-
labour-force-truck-drivers-brexit-covid-7508718/lite/

Rob Merrick Holly Bancroft (2021).Food Shortages ‘permanent’ and shoppers will
never again enjoy full choice of items, Britons
warned.https://www.google.com/amp/s/www.independent.co.uk/news/business/food-
shortages-brexit-covid-boris-johnson-b1917763.html%3Famp