CASE 1: THE JESSOP GROUP LIMITED

Jessops has been a leader in the photographic business for over 75 years. The Jessops story began in 1935, when Frank Jessop opened a photography store in Leicester. Today, the company is the UKs premier photographic retailer operating from over 200 stores around the UK. In addition, it has an online shop and call centre. Jessops is the trading name of The Jessop Group Limited, which is a subsidiary of Snap Equity Limited. However, in 200809, the UK economy went into recession. This had a negative impact on the retail industry. During this

period unemployment was rising. Even people in work felt the effects of the recession. Many employers were forced to cut wages or to keep pay rises very low. During the recession, Jessops sales margins on hardware were falling year on year. Fortunately, the margins on services such as photo and imaging remained stable. To improve the overall company margin, Jessops decided to focus its attention on making its imaging business the market leader.

A key part of Jessops product portfolio is its photo and imaging business. Jessops operates in two main sectors of the photography market. The modern photographic industry has changed radically. The business originally focused on producing prints from photographic film. Every shot of a reel of film was printed regardless of quality. Today, however, digital cameras allow consumers to choose which prints are produced. New digital cameras and digital media enable ordinary people to take high-quality photographs. These images can be quickly edited and altered. The digital camera market has expanded rapidly as a result. It is also quickly changing. For example, as more mobile phones come fitted with good quality built-in cameras, sales in standalone digital cameras have begun to fall. As a result, traditional film printing in the UK is declining by around 30% year on year.

One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimise its environmental impact will be seen more favourably by consumers. Jessops responded to the WEEE regulations by contributing towards a national fund to assist local councils to develop collection facilities for electronic goods. The company is working to increase awareness of the WEEE regulations. It has set up convenient battery recycling points in its stores. Also, the growing popularity of social media such as Facebook, especially among younger people, unlike their parents, demands a constant upgrade to use the latest technology as it is at the forefront of this change.

The photography and imaging business has experienced considerable change in recent years. This poses a challenge to the directors and managers at Jessops. To sustain and grow the business, they must develop ideas and plans to combat the changing market and stimulate new demand.

REQUIRED

1) Define the external business environment of Jessops Group Limited. (4 marks)

2) From the case above, identify and explain four factors within the general environment

of Jessops Group Limited. (20 marks)

3) Elaborate on any three internal factors of Jessops Group Limited that can influence its

functioning. (6 marks)

4) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? (5 marks)

5) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited? (5 marks)