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XYZ was formed in Seychelles in the early 1900s to help incorporate a co-network shop designed and owned by farmers. With time, it started opening

XYZ was formed in Seychelles in the early 1900s to help incorporate a co-network shop designed and owned by farmers. With time, it started opening small shops in Seychelles selling products across the country produced by the farmers. XYZ expanded its shops and started to offer non-farming product from a wide range of suppliers. However, it remains important for XYZ to remain true to its co-operative roots. Supermarkets in Seychelles A few years later, supermarkets were introduced in Seychelles and as a result, XYZ opened its own supermarket. However, compared to its competitors, XYZ supermarkets remained smaller, and its smaller shops were all retained. In contrast to XYZ, all its competitors were more focused on developing large out-of-town sites servicing a large catchment population. Out of the top-ten supermarkets of Seychelles, XYZ was the only one having a network of smaller shops. Margins in the sector are always under pressure and large supermarkets aggressively market their goods, highlighting price savings. They also introduced loyalty cards and discount coupons with times as incentive to retain customers. Except for XYZ, all the other supermarkets became listed companies with their shares largely owned by institutional investors who look for significant dividends and capital appreciation. In the top ten supermarkets of Seychelles, XYZ is the only co-operative one. With suppliers to supermarkets being normally relatively small companies, supermarkets control of consumer spending is so great that many suppliers aggressively compete to have their products stocked by the supermarket chains. XYZ has continued to promote its ethical principles and ensures that its new shops and supermarkets are energy efficient. It also pays its employees significantly more than its competitors. Due to its special concern about the employees welfare, XYZ was the leading supermarket to provide excellent customer service. In the latest survey, it was ranked first for personal customer service. Performance Management Assignment | Page 4 of 5 Seychelles government information sheet Disability legislation (The Access Act) The previous legislation required shops and supermarkets to provide disability access to the store areas. However, the new legislation requires shops and supermarkets to help all disabled customers to access all shelf areas within the store. This new amendment is because many disabled customers found the goods were out of reach when they were in the store. With this new amendment, all the products within the store should either be reachable to the disabled person or if not, an attendant should be there to help. Failure to adhere to this legislation will lead to a fine of up to $1,000 per incident.

(a) From the PESTEL analysis, choose three elements to analyse the external factors of XYZ management. This analysis should include an assessment of the likely effect of such factors in the context of the strengths and weaknesses of XYZ. It should also include an explanation of the purpose and value of a PESTEL analysis. (15 marks)

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