Competition in the Retail Grocery Sector

Topic: Competition in the Retail Grocery Sector
Essay question:
Coles and Woolworths have together long accounted for nearly 80% of the retail grocery sector in Australia, but these market shares have gradually eroded from 2001 onwards, with a new entrant, Aldi, now commanding a market share of 11%, largely gained at the expense of Coles’ and Woolworths’. This assignment asks you to apply microeconomic principles to analyse past and current trends in the market for groceries in Australia.
Use economic analysis to discuss the economic benefits and losses brought by changes in the market for groceries over the last 15 years in Australia. What future role do you see for market forces and for government intervention in this market? Justify your answer (max. 1500 words)
(feel free to use diagrams where appropriate, diagrams are not counted into the word limit). In structuring your essay, you may benefit from pondering the following sub questions:
– In economic terms, what type of market structure underpinned the retail grocery market in Australia before the entry of Aldi?
– What was the source of market power for Coles and Woolworth?
– What do you think was the main policy issue concerning government regulators such as the ACCC?
– Do you think the grocery market is now more or less efficient? What measure of efficiency would you use to answer this question?
– Who would be the winners and losers of this market evolution?
Here is a general checklist for preparing essays: it should not be viewed as a set of instructions to be strictly adhered to, but rather as a source of guidance where appropriate
1. Comprehensiveness
Have you addressed all aspects of the assignment tasks? (Read each task carefully)
2. Synthesis and Use of the Literature
Have you carefully selected texts and journals for your assignment preparation? Have you used the literature to explore the topic and as evidence to support the points you make? Reliance on your own experiences and observations, or on press articles will not satisfy the assessment requirements for the essay. You are expected to demonstrate your knowledge and understanding of the literature by using the literature to argue your points of view in relation to the scenario. Be sure to use your own words to present the ideas you have obtained from the literature and to cite your sources. Direct quotes generally do little to demonstrate your understanding of the source material and, if used, should always be accurately quoted, referenced and interpreted.
3. Analysis
Have you moved beyond simple descriptions? From the theoretical foundations, have you drawn conclusions, and insights which address the assignment tasks? To undertake an analysis you have to answer the questions: “So what?”; “What does it all mean in relation to my point of view?”. Based on your analysis you must make some logical conclusion/s. Without a conclusion your analysis is incomplete. Analysis does not come by just descriptively listing the views of the various writers; you must break down their arguments and look for the strengths and weaknesses in each.
4.Application
Have you demonstrated skills in applying theory to practice?
5.References
In-text: Using the author-date method of referencing (“Freyens (2000) argues that…”…”The proof is in the pudding (Freyens 2000)”), have you correctly cited all the authors whose work you have drawn upon?
6.Structure of Discussion
Is your essay well organised? Does it have an introduction, a body of argument and evidence, and a conclusion?
Introduction:
What is your short answer to the question?
The introductory statement or thesis identifies the topic of the essay, indicates a “position” with regard to the question, and suggests the line of reasoning that will be developed in the essay. The final form of the introduction will probably be written last.
Body of essay: How did you arrive at your answer?
What is your line of reasoning? Your evidence?
The body of the essay should develop and support your introductory statement by making points that support the statement and providing evidence in support of those points (for example, research findings, expert opinions, data, examples, etc.). The stringing together of quotes is not a line of reasoning nor is jotting down points under sub-headings. Sub-headings in an essay are very useful and you are encouraged to use them, however an essay can – and must – be able to be understood without them. As the author, you are responsible for ensuring that your line of reasoning and your evidence is readily comprehensible to the reader; it is not the reader’s responsibility to do your thinking for you. Also, material presented in the body of the essay should be explained and critically evaluated.
Conclusion:
What should the reader conclude from what you have presented? A conclusion draws together and summarises the ideas and line of reasoning presented in the essay and makes some meaningful statement with regard to the thesis as it has been developed in the essay.
7. Literacy
Have you checked spelling, punctuation, grammar, inclusive language, and sentence and paragraph formation? One sentence does not normally make a paragraph. Good paragraphs will contain transitional sentences which clearly state how you move from one theme to the next.
8. writing style
Aim for a simple, clear and direct writing style.
• Use one point per sentence.
• Complete sentences should always be used.
• Each paragraph should cover only one main idea or a set of closely connected ideas
headings and sub-headings can be used to make the underlying structure of the analysis clearer
a “chatty” or “journalistic” style should be avoided.
the first person (I, we) should generally be avoided in favour of an impersonal style (the evidence suggests that…)
use gender neutral language. This is most easily achieved by using the plural form, for example, using “they” instead of “he”
• Spelling, grammar and other elements of expression will be considered in the assessment.
9. Final check
If someone was to read your essay could they:
tell you what the task is you are attempting to address?
explain what they saw as your major points and conclusion?
be persuaded by the evidence you present and the line of reasoning you offered to support your conclusions?
10. A reference list must be included on a separate page at the conclusion of your essay. Present the list of references in alphabetical order. In the list of references presented at the end of the essay, cite journal articles and books in the manner of the sample references given below.