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
UK’s 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 2008–09, 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.
2) From the case above, identify and explain four factors
within the general environment
of Jessops Group Limited.
3) Elaborate on any three internal factors of Jessops’ Group
Limited that can influence its
functioning.
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) If yes, can you identify and explain a benefit of the CSR
activity to Jessops Group Limited?