Structure of industry; the economics of supermarkets

Article Abstract:

The largest supermarket companies in the UK use central distribution and storage to move goods around, thus saving money. They have all expanded rapidly in the 1980's, notably in building out-of-town shops. The five largest companies sell 60% of UK food consumption, 27% of that is split between Sainsbury's and Tesco. The largest three companies all made profits during the recession. Supermarkets in other European countries do not make the same level of profit.

Supermarkets, Market share

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Section 2: Structure of industry; 'short-termism' in British industry

Article Abstract:

The failure of British industry to compete effectively with the Japanese and German economies has been blamed on 'short-termism', a lack of investment in research, training and equipment. One explanation is that British companies are more concerned with keeping shareholders by paying larger dividends than other economies. Finance to run British companies comes from shareholders rather than borrowing at fixed interest rates, unlike other economies.

United Kingdom, Competition (Economics), Finance, Corporations, Corporate finance

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Structure of industry; case study: Ford of Britain

Article Abstract:

Ford of Britain made a loss of 920 million pounds sterling in 1991, badly affected by the recession in the car industry. This has meant some production plants have been working at only 50% of their capacity. Other EC Ford production lines have much higher rates of productivity than in the UK. Future prospects for Ford in Britain will depend on increased productivity, changing working practices and the end of the recession to increase demand.

Production management, Ford Motor Company Ltd.

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