Tag: ethical business

As the Times Online article below states, “Barely a year ago, The Co-operative Group was selling itself as an antidote to big business, an ethical alternative to the ruthlessness of mammon, but now it has decided to take on the Big Four supermarkets at their own game.”

So just what is the business strategy of the Co-op? Is ethical business consistent with profit maximisation? Does the takeover of Somerfield make the new Co-op a very different type of supermarket from that of a few months ago? The following articles look at the Co-op’s business strategy.

Co-op hits back with its own triple whammy Times Online, Marcus Leroux (30/11/09)
Christmas battle has started but the real test will be 2010 Telegraph, James Hall (5/12/09)
Co-op supermarket chain enjoys Somerfield boost BBC News, Will Smale (11/12/09)

See also the Co-operative group site:
The Co-operative

Questions

  1. What do you understand by ‘ethical business’? Would you describe the Co-op as an ethical business?
  2. What type of merger is the one between the Co-op and Somerfield?
  3. What economies of scale are likely be realised by Co-op’s takeover of Somerfield?
  4. What type of growth strategy is the Co-operative group pursuing?
  5. Is being ethical likely to slow or accelerate the expansion of the Co-op?