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1、Executive SummaryThis report aims to make a strategic analysis of the UK Cooperative Group. Through the analysis of the external environment, the internal environment, the SWOT analysis and the strategic position, this paper makes some suggestions for the future development of this organization.The

2、report firstly gives the introduction of this papers purpose, then the operation environment this organization works in, the strength, the weakness, the opportunities and the treats it faces are done in the main body part. The strength of it mainly includes the largest geographic coverage, the stron

3、g bargaining power resulting from the CTRG and the good market image its value and faith bring. The weakness includes the weakness in the hypermarket and supermarket, the brand position is not so clear and the lack of the range of products. The opportunities include the quick development of the inte

4、rnet and the deceasing affording ability of the customers. The threats consist of the emerging of the online retailing and the penetration of the “big four” into the convenience sector. In the last part, the strategy position of this organization is suggested based on the previous analysis.After the

5、 analysis, this paper thinks that in the austere economy condition of UK, the UK Cooperative Group can use its location advantage and its low cost advantage to compete in the market. At least, at this kind of condition, it can attract more price sensitive customers and build up its image. As this or

6、ganization is in the retailing industry and it focuses on the convenience sector which is mainly the price sensitive customers market and providing the satisfied products with the satisfied price fro the customers is their main target, so the price leading strategy is the right one for it.Table of c

7、ontent（Words count: 2997） 1.0 IntroductionThe UK Cooperative Group is one of the largest cooperative retails in the world. It trades in many areas including the food business, retailing, insurance, tourism and so on. After the world financial crisis, in the austere economy conditions, facing severe

8、competition from different aspects, this organization should find its new direction or better strategy to develop well in the future. This paper aims to make a strategic analysis including the external environment analysis, the internal analysis, the SWOT analysis and the identification and the eval

9、uation of the basic three competing strategies for the organization. After comparing the basic three competing strategies, this paper will combine the special circumstances with the environment analysis to propose a suitable strategy position for this organization. This paper mainly includes four pa

10、rts. Firstly, it is the introduction part. Secondly, it is the main body of this paper. In this part, the detailed strategic analysis of this paper will be done which consists of five steps which are external environment analysis, internal analysis, SWOT analysis, strategy position and the evaluatio

11、n of the strategies. Thirdly, the recommendations will be suggested. Finally, it comes to the conclusion.2.0 The strategic analysis of the UK Cooperative GroupThis part aims to do a complete strategic analysis of UK Cooperative Group. The external environment analysis consists of macro environment a

12、nalysis using PEST model, industrial analysis using Porters five forces model and the competitor analysis using the strategic group analysis to identify the relevant competitors （Saplitsa, 2008）. Then, the internal analysis of the organization mainly includes the value chain analysis to identify whe

13、re and how the value is added within this organization. The SWOT analysis includes the strength, the weakness, the opportunities and the treats of the organization （Miller, 2007）. Finally, the identification and the evaluation of the basic competing strategies will be done. 2.1 The external environm

14、ent analysis2.1.1 Macro environment analysis: PEST modelThe PEST model dive us an analysis framework about the macro environment of the organization. These factors generally consist of politics, economical factors, society culture factors, technology factors, environment factors and law factors （Pen

15、g et al, 2007）.The political factors refer to the impacts the state, the government and the local policies make on the organization （Peng & Nunes, 2007）. The policies the government implements will probably make positive or negative impacts on the organizations. The UK government will make broadband

16、 available to every home by 2012 and to encourage the development significantly faster next generation （Grewal & Levy, 2009）. Building of the foundation facility of internet is a technology support for the development of UK Cooperative Group and the customers. However, the wide use of internet will

17、promote the online buying of the customers. Through this policy, the UK Cooperative Group can expand its retailing channels through online sale. In the negative aspect, the wide use of the internet among the customers will induce more online retailing competitors The economical factors can make sign

18、ificant impacts on the organizations and can reflect the economic condition of the location and the operating environment which the organizations meet （Peng & Nunes, 2007）. After the global economy crisis in 2008, the economy of UK is affected seriously. According to the data the UK National Statist

19、ics publishes, the inflation rate of UK has been increasing since 2007 and the increase of the average wage of the people is lower than the increase of the inflation rate. The inflation in December 2010 is 3.7% and now it is nearly 5%. Comparing with the data in 2007, the CPI in UK has grown 12%, bu

20、t the wage level has an increase of near 7.6%. The living level of the ordinary households in UK decreases. The shrink of the affording ability of customers affects their consuming, which is a bad news for the UK Cooperative Group. To attract more price-conscious customers, the UK Cooperative Group

21、should pay more attention to these customers. However, the UK central bank thinks that the economy of UK will revive better nest year. In this kind of expectation, this organization can operate in a better condition in the nest year. The budget and the resource allocation in this organization should

22、 be planned seriously （The data source: the UK National Statistics）.The society and culture factors reflect peoples code of conduct, value, and psychology （Peng & Nunes, 2007）. The impacts of the society and culture of UK makes on the UK Cooperative Group are mainly from three aspects. Firstly, the

23、aged tendency of the population will create more price sensitive customers. Secondly, the culture diversity in UK makes the ethical food more popular. Thirdly, the customers pursuit of the healthy life demands the companies providing more green and sustainable food. UK Cooperative Group should place

24、 importance on the new demands to maintain its own competitive advantage. The rapid development of technology is the world success in the 21st century. The rapid development of the internet changes the life style of people. Online buying becomes a kind of fashion. With the popularity of the online r

25、etailing, the competing pressure of the retailers becomes more serious, including the UK Cooperative Group. The emerging of the online retailing is a new entrant which also brings heavier competing pressure.2.1.2 Industrial analysis: Porters five force modelPorters five forces model provides an indu

26、strial environment analysis framework. In this model, there are five forces which push the organizations to develop and compete. The five forces include the threat of the potential new entrants, the threat of substitutes, the bargaining power of the suppliers, the bargaining power of buyers and the

27、extent of competitive rivalry （Porter, 1980）. In the UK food retailing, the UK Cooperative Group plays an important role which is the 5th largest food retailer in UK after the big four of Tesco, Sainsbury, Asda and Morrisons. The “big four” takes up the hypermarkets and the supermarkets, so in the h

28、ypermarkets and supermarkets, the UK Cooperative Group does not have many advantages. In the austere economy condition, the consumers afford ability shrinks and the demand of the consumers decreases. In this occasion, the bargaining power of the buyer is stronger. The UK Cooperative Group participat

29、es in the CRTG which is a group of the retailers having similarities. Through the CRTG, the retailers can purchase lower price products from the suppliers. In this condition, the bargaining power of the suppliers is relatively low. With the rapid development of the internet and the popularity of the

30、 online buying, the threat from the potential new entrants （online retailers） is higher （Grewal & Levy, 2009）. The online selling partly becomes a substitute of the existing selling channels of real outlets. 2.1.3 Competitor analysis: Strategic group analysis The strategic group analysis aims to ide

31、ntify the direct competitors of the organization （Johnson et al, 2008）. The strategic group is a kind of group in which the organizations have something in common about their competitive strategy, such as the location, the price of the products. This technique can help our organization to identify t

32、he similar and direct competitors and then we can find out the differences of the competitors （Lynch, 2006）. Through the strategic group analysis to find out the similarities and the differences among the companies in the group, the organizations can cooperate and create its own difference to maintain its competitive advantage. In the UK food retailing, the retailers are mainly divided into two groups. One is the hypermarket and the supermarket and the other is the convenience sector and the symbol group. In the first group, the major members are th