1.4 Activity
CostLess Supermarket
CostLess PLC is a discount supermarket chain operating in the UK with 380 stores
located in out of town retail parks. CostLess focus on stocking a limited range of
‘non-branded’ products sold much cheaper than branded alternatives, for example,
CostLess only sell one brand of tomato ketchup, ‘BrumWells’. Price is the key USP
for CostLess and they focus on keeping costs low and then passing this on to the
customer. In addition to selling food, CostLess also sell a small range of home and
garden products from a dedicated section of the store.
Close down 15
unprofitable
stores
Announces
plans to take
over a rival
supermarket
chain
Announces
plans to open
up 10
dedicated
Home and
Garden stores
Introduces a
5p charge for
single use
carrier bags
Introduce a
range of fair
trade products
Change store
opening times
from 8am to
6am
Introduce selfservice tills
Opens 10 new
smaller
convenience
stores on local
high streets
Increase
prices by 5%
Employs 200
more shop
floor workers
Remove bonus
scheme for all
new employees
Change store
closing times
from 8pm to
10pm
Announces
plans to build a
new £60m
distribution
centre
Introduce a
bonus scheme
for all
employees
Announces
that the
business is to
be taken over
by a rival
supermarket
chain
Increase
holiday
entitlement
from 20 days
to 25 days
Introduces a
‘pound zone’
area in all
stores
Freeze
employees pay
Reduce all
prices by 5%
Increase Pay
Build 20 new
stores
Launch online
grocery
shopping
Introduce a
range of
branded food
products
Demand 2%
pay cut from
all suppliers
Introduce 24
hour opening
throughout all
stores
1.4 Activity
CostLess Supermarket
How will the decision affect the stakeholder groups?
Decision: _________________________________________
Employees:
Customers:
Shareholders:
Suppliers:
_____________ :
Ranking (1–most affected, 5 – least affected)
1–
2–
3–
4–
5–
_____________ are most affected because
_____________ are least affected because
Stakeholder conflict:
Possible way(s) to resolve the conflict:
1.4 Activity
CostLess Supermarket
To what extent do you believe that ___ will be more affected than ___ by the decision
to ___?
Outline your answer in AO3 style. Keep it short and use bullet points. Key terms in
intro (no definitions needed), three balanced POAs, conclusion (priority,
recommendation, overcoming drawbacks). Keep it short! This is a brainstorming
activity, not a final assessment!