MANAGERIAL ECONOMICS ASSIGNMENT 2 - Case Study Report
You will find the Lidl UK 2015 annual report and financial statements for 2015 and statements relating to their core purpose and values on the following link: https://www.lidl.co.uk/en/8413.htm
The purpose of the assignment is to apply the managerial economic concepts and techniques of the module to the analysis of the retail industry and on the operations and strategies of one of its leading players. You should complete your research into the company by the 30th of April and you will be afforded an opportunity to discuss your research findings with the module tutor prior to the commencement of the writing of the report. There is a wealth of material on Lidl, its main competitors and the retail industry on the internet. The issues raised by the Lidl annual report will require you to examine the following:
• demand and supply conditions,
• competitive strategies-pricing and non-price competition
• price elasticities of demand and Supply
• market structure
• Porter's five forces and competitor analysis
• the role of ethics in economic decision making.
• Uncertainty and its impact on strategy formulation
TASKS:
Q1: The Lidl UK financial statements for 2015 refer to the company's principles as follows:
"As a retailer we value the continued trust placed in our company and our products.
Our commitment to our core principles of simplicity and customer focus together with responsible use of natural resources and respectful relations with our customers, employees and business partners is key to our success as a business".
Critically evaluate the significance of such extensive and inclusive value statements in determining the competitive advantage enjoyed by Lidl in the United Kingdom supermarket industry.
Q2: Assess the attractiveness of the UK supermarket industry and Lidl's current competitive position.
Q3: Given the changes currently taking place in the UK supermarket industry what strategies would you like to recommend to the Board of Lidl in order to improve their profitability and image with the public.