• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Regulation. The supermarket sector is regulated by a great many factions and organizations all of which have different interests and agendas.

Extracts from this document...

Introduction

Definition Regulation is spoken of as if an identifiable and discrete mode of governmental activity. Selznick's notion of regulation as sustained and focussed control exercised by a public agency over activities that are valued by a community, has been referred to as expressing a central meaning. It is perhaps useful to think of the word regulation being used in the following different senses > As a specific set of command > As a deliberate state influence > As all forms of social control or influence. (Baldwin, R, Understanding Regulation) Introduction Due to its size, necessity and great public interest, the supermarket sector is regulated by a large variety of factions and organizations. The supermarket sector is primarily part of the food retail industry though it includes other areas of retail such as fashion and electronics. The U.K government, the E.U and U.N have several interests in this sector such as political, environmental social and economical factors. There are various factions who influence regulation of the sector including The Consumer Association, The National Farmers Union, British Retail Consortium and The Advertising Standards Association. The need for regulation Regulation is commonly used to correct market failure. Market failure is defined as when the uncontrolled market place will for some reason fail to produce behaviour or results in accordance with public interest. Public interest can be further subdivided into stakeholders. Supermarket stakeholders include employees, consumers and suppliers. The E.U. U.N and government are also stakeholders in the sector whose actions are in theory supposed to be in the public interest The oligopolistic nature of the supermarket sector means that the market is susceptible to market failure in various ways these are: > Collusion this is when firms in an oligopoly cooperate with each other and fix prices at artificially high rates, in order to maximise revenue. It is argued by many economists that such practice was apparent between Tesco's and Sainsbury's prior to Asda's rise in market share. ...read more.

Middle

Whilst it can be argued that the national farmers union only operates in its own interest of its members and not the public at large. Private interest groups This is where the role of private economic interests drives regulation as discussed above this is the view held by the national farmers union. Regulation in the supermarket sector is implemented by two major players, the U.K government and the E.U. Their role in the regulatory process is discussed below The U.K Government The U.K government Regulates the supermarket sector by implementing rules and procedure. The government concurs with regulatory bodies such as the Advertising standards authority and the consumers association. Legislation is passed by an act of parliament and the government investigates claims that acts have been broken. If it is ruled in court that an act is broken then fines are made and in severe cases criminal prosecution may occur. The government will operate procedure on both a national and local level. As discussed the government may not always act in the public interest and may be subject to corruption however Tiebout's local government context argues the government are forced to act in public interest because individuals can vote with their feet and can move to jurisdictions with the tax expenditure balances that meet their preferences this leads local governments to tailor their tax and spend regimes to the desires of residents if they do not do so they will be voted out of office or residents will move house out of jurisdictions. The same theory applies to national government, as they must satisfy public interest in order to ensure re-election The E.U The E.U is considered by many to be the most powerful and strongest regulatory body. Like the government the E.U fundamental aims are to look after the public interest of its members. E.U regulatory procedure works by conferring with member states who will also represent the view of regulatory bodies. ...read more.

Conclusion

Conflict concerning regulatory change is also present on an international level. Supermarkets and the U.K government and E.U appear to favour mandatory food labelling law as concerns the use of Gm food, America and Canada however wish to play down concerns. The U.N has yet to rule on the matter but there appears to be little room for compromise (BBC online Fight on GM food labelling Wednesday, 2 May, 2001,) Summary The supermarket sector is regulated by a great many factions and organizations all of which have different interests and agendas. As a result the development of regulation is often an expensive, burecratic and time consuming process. This is due to the nature of Europe's dispersed democratic structure. Democracy itself could be held largely responsible, because it allows the formulation of an unlimited number of interest groups, which with enough members and campaigns are capable of becoming players in the development of regulation. The situation is intensified further because of the U.K relationship with Europe. On many occasions this relationship has resulted in conflict of interests and defiance of E.U law. There are various ways these problems can be countered though none at present appear to be favoured by the majority of the British public. The options available are 1. Sever all links with the E.U. This would give the British government complete control of regulatory policy meaning decisions would be quicker as the E.U would have no control over regulation. However this decision could result in a significant reduction of trade with E.U nations. This would most likely leave the U.K economy unstable. Another option would be to give greater power to the E.U this would allow compatibility amongst E.U states and would result in greater compliance with E.U regulation. (This appears to be the direction the British government favours. This is illustrated by Mr Blair's readiness to hold a referendum as concerns the single European currency. At present opinion polls suggest this is not favoured by the British Public, however it is highly possible that opinion will change in response to Blair's impending pro euro campaign. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Introduction to Tesco

    Tesco has also expanded into Thailand in 1998 and South Korea in 1999 through a joint venture with Samsung Corporation. It opened in Taiwan in 2000, and in May 2002 Tesco opened its first store in Malaysia in a joint venture with Sime Darby Sdn Bhd.

  2. Political, legal, social factors affacting Tesco.

    Tesco have now learnt from that and are funding Everton FC in making a new stadium. This will help brand the name Tesco as thousands of people watch Everton play. In order for Tesco to stay up to date in the social market the will need to ensure that they are doing their market research.

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    Frequently, consumers are recognizing with brands when they purchase. For example, software's buyers need their products to be the best available for their needs and wants. This is how we would like to see improvements day by day of the Microsoft Company.

  2. Stakeholders influence

    with good quality of products * Being provide with value products * Having a good customer service when they are in stores * Having variety of products In a private business like Puma, customers are really important as they depend on the customers to make profit.

  1. Outline key features of legislation and regulation on health and safety as applied to ...

    * To take corrective action to eliminate hazards within the workplace and/or report those hazards, which the employee him/her self cannot correct. * To establish and maintain at all times the highest possible standards of housekeeping and cleanliness in individual work areas and on Company property generally.

  2. Introduction to J Sainsbury plc

    The functions of a product department include the production of goods, quality control, maintenance of equipment, stock control, job evaluation, production planning and control, design and development, raw materials and component purchasing, control of stocks and despatch or distribution. How Production help to achieve Sainsbury's Objectives According to Sainsbury's production

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Tesco carries out television advertisements regularly. They are also run a promotional program of giving away vouchers for schools computers. Tesco also participates in print advertisements, and runs a loyalty card scheme ? the Tesco club card. Market Research Tesco?s identifies its customer needs as it counts towards one of

  2. Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz

    The business environment raises awareness of needs and the facilities required in order to meet the goals that can be set through strategic planning. The ownership of Apple effects the strategic plan because as it?s a large cooperation they need to set plans according to what the owners can manage and be responsible for.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work