Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Ongoing business sustainability today is one of the major issues facing the management of organizations. How to remain in the profit zone, that area where a company will be allowed to make high profit in its industry, is a constant challenge. Continued profitability in a fast changing industry, where the profit zone moves as competitors offer the same solutions, requires constant innovation, implementation of new ideas and heavy financial commitments. The key is to identify clear and rational business design choices that are responsive to customers and that will ensure profitability. This document will illustrate how the four major food retail companies in South Africa, and their visionary leaders, have reinvented their business designs in ways that kept or returned them to the profit zone. Shoprite's target market is the middle to lower income group. The company has built up core competencies within its business to serve this segment. There are currently a number of issues facing Shoprite's core market, and as a result the company is diversifying its income streams to be less dependant on a vulnerable target market. . The visionary leadership of Raymond Ackerman, who applied principles of customer sovereignty long before his peers, has resulted in one of the best-run companies in South Africa. Pick 'n Pay's ability lies within the middle to upper segment of the market. The company has built its business on one core element - the customer, and has adapted the company business design to meet the needs of the customer and capture value . .Spars' philosophy of giving the small retailer the power to compete with the larger retailer, who buys in bulk, has proved to be a successful formula and is threatening the traditional hierarchy. Owners who are in close contact to customers have the flexibility to align their businesses with the customer requirements. 'Woolworths has one of the strongest brands in the South African retail industry. However, the company has in recent years been in serious trouble having lost its way because it lost touch with its customers. Concentrating back on the core customers and building back confidence in its goods, have taken considerable focus. Each of the business designs are built on a deep understanding of what the customer needs are of the target market they serve and how they will be allowed to make a profit. / AFRIKAANSE OPSOMMING: Een van die grootste knelpunte vir organisasies vandag is volhoubare besigheidsbestuur. Die uitdaging is om in die area te bly waar die organisasie toegelaat sal word om hoë wins te maak. Voortgesette winsgewendheid in 'n industrie waar die wins area veskuif as gevolg van mededingers wat oplossings naboots, vereis voortdurende vernuwing en strawwe finansiële verpligtinge. Die sleutel is om duidelike en rasionele besigheidsontwerpbesluite te neem wat kliente behoeftes aanspreek en wat na 'n wins sal lei. Hierdie dokument beskryf hoe die vier groot voedselhandelaars en hulle leiers hul besighede herontwerp het sodat hulle winsgewend kan bly. Shoprite se teiken mark is die middel - tot lae inkomste groep. Die firma het kern bevoegdhede binne sy besigheid ontwikkel om hierdie segment te bedien. Shoprite diversifeer huidiglik sy inkomste stroom as gevolg van die kwesbaarheid van sy teiken mark. Pick 'n Pay word as een van Suid Afrika se beste bestuurde firmas beskou. Die sukses word toegeskryf aan die leierskap van Raymond Ackerman wat die beginsels van kliënte soewereiniteit lank voor sy portuurgroep geïmplimenteer het. Pick 'n Pay se fokus is die middel - tot hoë inkomste groep. Die firma is op een kern element gebou, die kliënt, en sy besigheids ontwerp is aangepas om die behoeftes van die kliënt te bevredig. Spar se filosofie is om die kleiner handelaar in 'n posisie te stel om met die groot handelaar, wat in grootrnaat aankoop, te kan meeding. Die groei wat Spar toon bedreig die traditionele hiërargie en bewys die sukses van hierdie formule. Winkel eienaars wat noue kontak met kliënte het, kan hulle besighede aanpas om in kliënte se behoeftes te voorsien. Woolworths het een van die sterkste handelsmerke in die Suid Afrikaanse handels industrie. Die firma was in die laaste paar jaar in groot moeilikheid omdat hy tred verloor het met sy kliënte. Deur weer te konsentreer op die kern kliënt en om vertroue op te bou in sy goedere het beduidende fokus vereis. Elk van die besigheids ontwerpe is gebou op 'n intieme begrip van die behoeftes van die teiken mark wat bedien word en hoe die firma toegelaat sal word om 'n wins te maak.

Research question: What initiatives does Lidl Sweden implement in the area of environmental sustainability?                          Purpose: The purpose of this research is to investigate what initiatives Lidl has developed and how the company implemented its corporate social responsibility in the direction of environmental sustainability. The purpose is also to compare the company’s activities with the guidelines of the EU Environment Commission and theoretical frameworks developed by previous research, and, as the result, to provide recommendations to the Lidl management. As well the purpose is to review the general improvement patterns within the food retail industry. Method: The research is made by using a qualitative method with a deductive approach. In order to present quality information in the study, a case design was chosen. The empirical analysis includes four interview transcriptions, secondary data and documentation, as well as a comparison to the theoretical concepts in the descriptive analysis. Conclusion: The responsibility and awareness of the improvement of the environmental sustainability is vital in the food retail industry. Indeed, it was found that aspects such as product and supplier’s control, the use of resources, transportation and distribution, as well as waste management and information communication to the employees and customers are considered as important aspects of the contribution for the environmental impact reduction. Lidl Sweden has developed and implemented some initiatives towards environmental sustainability, as well regarding the corporate social responsibility. However, there are some suggested actions that can be taken in order to excel the development.

It has become more and more evident that independent food retailers must co-ordinate their individual efforts if they are to gain an operating efficiency paralleling that of the corporate multiple-unit or chain system. Such co-ordination largely has taken three courses: (1) group buying clubs, (2) wholesale- sponsored voluntary chains, and (3) retailer-owned co-operative warehouses. It is the last of these that this study suggests as the most appropriate course for Denton independent retailers.

A produção e o comércio de alimentos orgânicos mostram-se como um mercado em desenvolvimento, e esse se apresenta como alternativa agrícola com menores externalidades negativas. No entanto, há algum tempo já é indicado um processo de convencionalização que o aproxima de práticas de mercado que ameaçam essa capacidade de preservação do ambiente. Nesse processo aparece a venda através de grandes varejistas. Como alternativa surgem diferentes formas de distribuição de alimentos e a possibilidade de alcançar maiores benefícios para a sociedade e o ambiente. Uma delas é a venda em domicílio através de esquemas de cestas, uma variante em que consumidores adquirem semanalmente uma cesta de produtos orgânicos padronizada, através de meios eletrônicos. Utilizando o arcabouço teórico proposto na Sociologia Econômica, vou investigar através dos empresários, funcionários e consumidores que formam essa rede, os interesses, as relações e sua estrutura para responder como essa nova forma de comércio se enraíza socialmente na cidade de São Paulo. Através de entrevistas realizadas a partir de um roteiro semi-estruturado, é possível entender que o novo canal se estabelece a partir do desejo de consumir alimentos orgânicos. Uma falha de mercado representada pela disponibilidade e qualidade precária na rede convencional e outras formas alternativas, os leva a experimentar esse novo canal. A capacidade de abandonar o hábito de compra convencional (ver, tocar, avaliar) dá lugar a um relacionamento com terceiros que se incubem de escolher por esses consumidores a qualidade dos alimentos que serão levados para casa. Lentamente as trocas comerciais se expandem a sinais de reciprocidade, fortalecendo a confiança. Eventualmente o compartilhamento de valores possibilita influenciar os interesses dos consumidores e torná-los mais conscientes. / The production and trade of organic food are defining a growing market and presenting an alternative supposed to cause less negative externalities. Nevertheless, a conventionalization process has been identified some time ago, what takes it closer to market practices that threat its capacity to preserve the environment. Sales through large retailers is part of this process. As options, different ways to distribute food emerge and represent the possibility to reach more benefits to society and environment. One of them is the home delivery of boxes containing fresh food, the box-schemes. It consists of weekly acquisition of a standard set of organic goods through electronic media. Utilizing the theoretical framework proposed by the Economic Sociology, I have investigated with owners, employees and consumers that are part of this social network, the interests, relationships and structures to answer how this new retail format gets socially embedded in Sao Paulo city. Through interviews based on a semi-structured script, it is possible to understand that this new channel is established from the desire to consume organic food. A market failure that causes poor distribution and quality in conventional network drives them to look for alternatives and try this new channel. The capacity to abandon the conventional buying habitus (see, touch, assess) opens space to establish a new tie with people that will choose the quality of the food to be delivered to their homes. Slowly, commercial exchange expands to reciprocity signals and strengthen trust up to a possible redistribution system. Eventually, values sharing makes possible to influence consumers and make them more conscious.

Title: A quantitative study extending the understanding regarding the influence of sales promotion on brand knowledge   Background: Sales promotion is a marketing communication activity that aims to promote a purchase, usage or trial of a particular brand. Sales promotion activities can provide significant benefits and incentives that could help the brand to differentiate from competitors and can contribute to the consumer’s brand knowledge. Prior to this thesis, there has been little attempt to integrate research to determine the relationship between the use of sales promotions and brand knowledge, which is why this study intends to extend the existent understanding. Purpose: The aim of this study is to extend the understanding regarding the relationship between sales promotion and brand knowledge and its drivers. Research questions: R1: What influence does monetary promotions have on brand awareness? R2: What influence does monetary promotions have on brand image? R3: What influence does non-monetary promotions have on brand awareness? R4: What influence does non-monetary promotions have on brand image? Hypotheses: H1: Monetary promotions of a brand influence brand awareness H2: Non-monetary promotions of a brand influence brand awareness H3: Monetary promotions of a brand influence brand image H4: Non-monetary promotions of a brand influence brand image   Methodology: In order to test the hypotheses a quantitative research approach was conducted and a questionnaire was used to collect data from Swedish consumers, the data was analyzed in the IBM SPSS program to find out if the hypotheses was supported or rejected.   Conclusions: H1,H3 and H4: May from this study be supported. H2: May from this study be rejected.

A produção e o comércio de alimentos orgânicos mostram-se como um mercado em desenvolvimento, e esse se apresenta como alternativa agrícola com menores externalidades negativas. No entanto, há algum tempo já é indicado um processo de convencionalização que o aproxima de práticas de mercado que ameaçam essa capacidade de preservação do ambiente. Nesse processo aparece a venda através de grandes varejistas. Como alternativa surgem diferentes formas de distribuição de alimentos e a possibilidade de alcançar maiores benefícios para a sociedade e o ambiente. Uma delas é a venda em domicílio através de esquemas de cestas, uma variante em que consumidores adquirem semanalmente uma cesta de produtos orgânicos padronizada, através de meios eletrônicos. Utilizando o arcabouço teórico proposto na Sociologia Econômica, vou investigar através dos empresários, funcionários e consumidores que formam essa rede, os interesses, as relações e sua estrutura para responder como essa nova forma de comércio se enraíza socialmente na cidade de São Paulo. Através de entrevistas realizadas a partir de um roteiro semi-estruturado, é possível entender que o novo canal se estabelece a partir do desejo de consumir alimentos orgânicos. Uma falha de mercado representada pela disponibilidade e qualidade precária na rede convencional e outras formas alternativas, os leva a experimentar esse novo canal. A capacidade de abandonar o hábito de compra convencional (ver, tocar, avaliar) dá lugar a um relacionamento com terceiros que se incubem de escolher por esses consumidores a qualidade dos alimentos que serão levados para casa. Lentamente as trocas comerciais se expandem a sinais de reciprocidade, fortalecendo a confiança. Eventualmente o compartilhamento de valores possibilita influenciar os interesses dos consumidores e torná-los mais conscientes. / The production and trade of organic food are defining a growing market and presenting an alternative supposed to cause less negative externalities. Nevertheless, a conventionalization process has been identified some time ago, what takes it closer to market practices that threat its capacity to preserve the environment. Sales through large retailers is part of this process. As options, different ways to distribute food emerge and represent the possibility to reach more benefits to society and environment. One of them is the home delivery of boxes containing fresh food, the box-schemes. It consists of weekly acquisition of a standard set of organic goods through electronic media. Utilizing the theoretical framework proposed by the Economic Sociology, I have investigated with owners, employees and consumers that are part of this social network, the interests, relationships and structures to answer how this new retail format gets socially embedded in Sao Paulo city. Through interviews based on a semi-structured script, it is possible to understand that this new channel is established from the desire to consume organic food. A market failure that causes poor distribution and quality in conventional network drives them to look for alternatives and try this new channel. The capacity to abandon the conventional buying habitus (see, touch, assess) opens space to establish a new tie with people that will choose the quality of the food to be delivered to their homes. Slowly, commercial exchange expands to reciprocity signals and strengthen trust up to a possible redistribution system. Eventually, values sharing makes possible to influence consumers and make them more conscious.

Background: COVID-19 has brought so many changes in the business environment and in the ways of doing business. Food retail companies in Sweden have been trying to cope with the changes and challenges and have made necessary decisions to become resilient. It is in their urge to become resilient; however, the implementation is arduous at times. Purpose: The purpose of the thesis is two-folded. One is to know the supply chain inefficiencies, and the other is to understand how the inefficiencies can be mitigated through the actions of the supply chain professionals. Method: Semi-structured questions have been asked in the interviews to gather in-depth insights from the industry expert. The interviews were taken from the branch managers of food retail stores in Sweden. The analysis has been done based on the content analysis. Findings: Content analysis assisted the emergence of the factors. It was done by analyzing the quotes from the branch managers. Therefore, the relationship between the characteristics and the RBV theory has been scrutinized. Conclusion: The purpose of the thesis was to find the inefficiencies of the food retail supply chain in pandemic times. Also, it was to find the solution about how the supply chain inefficiencies can be tackled to ensure supply chain resilience in the food retail stores in Sweden. For that purpose, data have been collected right from the field where the action takes place, and therefore, the data have been analyzed. Hence, the problems have been found, and the solutions have been recommended.

Issues relating to inventory capacity resulting from high fill rates (inventory pressure) have been identified as a major problem for growing Fast-Moving Consumer Goods firms. The implications of these capacity problems include increased costs of working capital and cost-inefficient rental of external storage space. The study is focused towards the food retail segment and aims to address the lack of a detailed SKU-level KPI for inventory pressure and a model for identifying its root causes. The research design is based on a review of literature and a live case study at the Swedish food retailer Axfood, including qualitative interviews in addition to the collection and analysis of inventory data. The inventory turnover ratio was determined to be an accurate KPI in this case, where lower ratio values tend to correspond with high inventory pressure, and vice versa. With the KPI established, a regression analysis was performed, in order to find critical determinants of the problem in the Axfood case. The regression analysis yielded a number of highly influential factors for inventory pressure, mainly low order frequencies, high variability of demand and prolonged supplier lead times, in addition to a number of less influential determinants. The study also included the identification of key drivers of inventory pressure within various Axfood product segments, where private label product stands out as a particular product segment of interest. A numerous of segments were identified as particularly problematic, however private label products where not found to influence the overall level of inventory pressure in any significant manner. While the study is in no way exhaustive about the highly complex nature of the researched problem, the establishment of a KPI and use of a regression model has provided a basis for discussion regarding the problem. In addition, the proposed framework is applicable for future similar studies on other FMCG cases, in addition to more detailed case studies into inventory capacity issues. / Lagerkapacitetsproblem som härrör från höga fyllningsgrader (lagertryck) har identifierats som ett avgörande problem för växande företag verksamma inom snabbrörliga konsumentvaror. Konsekvenserna av sådana kapacitetsfrågor är bland annat ökade kostnader för rörelsekapital och kostsam inhyrning av externt lagringsutrymme. Denna studien är inriktad mot livsmedelsbranschen och syftar till att adressera bristen på ett detaljerat mätetal för att följa upp lagertryck på artikelnivå, samt en modell för att identifiera dess underliggande orsaker. Forskningsmetodiken är baserad på en litteraturstudie och en fallstudie hos den svenska livsmedelsåterförsäljaren Axfood, som innefattar kvalitativa intervjuer samt insamling och analys av lagerdata. Lageromsättningshastigheten ansågs vara ett tillförlitligt mätetal i denna fallstudie, där lägre värden tenderar att motsvara högt lagertryck och vice versa. Med detta mätetal som grund utfördes en regressionsanalys för att finna kritiska förklaringsfaktorer till problemet i Axfood-fallstudien. Regressionsanalysen gav ett antal starkt inflytelserika faktorer för lagertryck, främst låg orderfrekvenser, hög varians av efterfrågan samt långa ledtider från leverantörer. Även ett antal mindre inflytelserika determinanter hittades. Studien innefattade också identifiering av kritiska faktorer för lagertryck inom olika produktsegment hos Axfood, där egna märkesvaror utmärker sig som ett segment av särskilt intresse. Ett flertal segment identifierades som särskilt problematiska, egna märkesvaror visade sig emellertid inte påverka det totala nivån av lagertryck på något avgörande sätt. Denna studie utger sig inte för att vara uttömmande om forskningsproblemets mycket komplexa natur. Upprättandet av ett mätetal samt tillämpandet av en regressionsmodell har dock legat till grund för en diskussion om problemet. Det i studien föreslagna ramverket är applicerbart för liknande studier på andra FMCG-fall i framtiden, samt mer detaljerade fallstudier av lagerkapacitetsproblem.

The development of digital solutions has changed the way consumers complete purchases today. New distribution channels through internet and mobile applications have come to challenge the business of traditional retailers. Thus, retailers must find new ways of keeping customers loyal to the store. One way of retaining customers is to provide a more prominent customer experience. This study focuses on technological solutions for the food retail industry that enables the creation of this experience, more specifically self-scanning applications provided by the Swedish company Datema.The Swedish market, in which Datema acts, is among the most technologically advanced in the world regarding self-scanning solutions and has begun to reach a maturity phase. This, along with desires to expand the marketplace, has created an attraction to larger foreign markets such as North America. Similarities in business culture and a strong buying power have led to a certain interest in the Northeastern part of America. Thus, the purpose of this thesis is to investigate the need for self-scanning solutions in this specific area and to provide recommendations for how the market could be targeted.To create an overview of the market structure the consumer market has been studied through an in-depth literature review of the latest market investigations. Furthermore, the technological level of Northeastern supermarket chains was investigated through market observations and interviews with store managers in Boston, Massachusetts. To create the holistic view of the market, interviews with experts in the US retail market and with US IT-vendors were conducted. Additionally, interviews with management consultants and experts in market entries have contributed to answering the question of how the market should be entered. Finally, in order to provide conclusions and recommendations, the results have been analyzed with relevant literature and theories within marketing, change management and entry mode management.The findings in this master thesis indicates that there is a need for technological solutions that enhance the customer experience in the Northeastern American food retail market. Furthermore, the technological level of the existing supermarket chains in Boston is considered low and that the level and acceptance varies with the store concept. The previous resistance towards implementation of new technological solutions in the stores was found to mainly depend on a low knowledge, low trust in the consumers and fear of losing customer interaction.Datema is recommended to address the middle and high-end supermarket chains with a follower approach. Further recommendations include that the market should be entered through a joint venture with a local partner.

In Sweden, the retail sector is responsible for 8% of the total supply chain waste. Although the number is relatively small, the retail sector is of key importance for food waste minimization since retail stores collect large amounts of food and connect with consumers and producers in a limited, clearly defined number of places. Therefore, initiatives or policies implemented in retail may have major implications. The Royal Swedish Academy of Engineering Sciences (IVA) concludes that prevention of food waste and redistribution to humans are the only actions that contribute to Target 12.3, aiming to halve food waste per capita from both retail and consumer levels as well as reduce food losses in the production and supply sectors by 2030. Also, research concludes that the median benefit-cost ratio for reducing waste in the supply chain is 14:1, and that unawareness of this business case is a reason for insufficient implementation of food waste reduction. In the latest years, authorities and researchers have increased focus and emphasized importance of industry collaboration to reduce supply chain food waste; however, there are more scarce findings in literature on incentives for food waste reduction from a retailer perspective. Therefore, the purpose of the study was to understand barriers and incentives for prevention of food waste and price reduction, conversion and donation of surplus food from a retailer perspective, and thereby identify opportunities to increase incentives. A multiple case study of nine retailers from the three major Swedish retail corporations was chosen as methodology, and semi-structured interviews were conducted with managers working in each store. The results show internal and external barriers for reduction, the major ones being the business objective to always ensure consumer satisfaction and variability in demand (prevention); inefficient label creation due to health and safety regulations (conversion) and lack of available partnerships (donation). In terms of initiative prioritization, financial benefits are found to be the major driving force for waste reduction, why food waste prevention is the most favourable option and reduction initiatives prioritize expensive products. Also, the incentive for food waste reduction depends strongly on business case awareness and integration efficiency, where the study identifies opportunities to increase incentives when: i) retailers are aware of the business case of reducing food waste, but discouraged by certain constraints; ii) retailers are unaware of the business case; and iii) there is no existing business case / 8% av Sveriges totala matavfall uppkommer i livsmedelsbutiker. Trots denna relativt låga siffra är butikerna avgörande för minimering av matavfall: de samlar stora mängder mat på ett begränsat antal platser och implementerade initiativ och policy får därmed stor verkan. Kungl. vetenskapsakademin (IVA) har konstaterat att förebyggande av matavfall och omfördelning av överskott till människor är de enda initiativ som signifikant bidrar till att nå Förenta Nationernas hållbarhetsmål 12.3, att halvera matsvinnet per person i butik- och konsumentled, och minska matsvinnet längs hela livsmedelskedjan. Studier visar att det finns ett tydligt business case för reducering av matsvinn, att initiativ i genomsnitt genererar 14 gånger så stor finansiell vinning som kostnad för aktörer i livsmedelskedjan, men att många aktörer saknar vetskap om detta. Myndigheter och forskare har de senaste åren i en allt större utsträckning ägnat fokus åt, och betonat vikten av, samarbete i livsmedelskedjan för att reducera matavfallet. Mindre fokus har ägnat åts livsmedelsbutikernas incitament att genomföra de initiativ som anses nödvändiga för att matavfallet i Sverige ska reduceras. Syftet med studien var därför att, från ett butiksperspektiv, förstå rådande hinder och incitament för förebyggande matavfall samt prisreduktion, förädling och donering av överskottsmat, och därigenom identifiera möjligheter att öka dessa incitament. Studien genomfördes i form av en fallstudie av nio livsmedelsbutiker från de tre största livsmedelskedjorna i Sverige, där semistrukturerade intervjuer hölls med ansvariga från varje butik. Resultaten visar interna och externa barriärer för reduktion av matavfall, av vilka de signifikanta är att ständigt tillfredsställande av konsumenters önskemål och variation i efterfrågan (förebyggande av matavfall), ineffektivitet i tillverkning av innehållsförteckningar (förädling), samt avsaknad av fungerande partnerskap (donering). Finansiell vinning är den största drivkraften för reduktion av matavfall, varför matavfall helst förebyggs och dyra produkter prioriteras. Det råder en generell osäkerhet kring den optimala strategin för att reducera matavfall, samt bristande tid att ägna initiativ. Incitament för reduktion av matavfall beror därför i stor utsträckning på vetskap om ett initiativs business case, samt hur effektivt det kan integreras i butikens verksamhet. Möjlighet att öka incitament finns därmed där: i) livsmedelsbutiker har vetskap om ett business case, men förhinder att agera; ii) livsmedelsbutiker saknar vetskap om ett business case); och iii) det saknas ett business case.