History on Greggs
Greggs plc is a bakery retailer in the United Kingdom; the Company has approximately 2,000 shops, supplied by approximately 10 regional bakeries. Greggs is owned by John Gregg, who set up the business in 1951, when he opened a small bakery on Gosforth High Street. Ian Gregg then took over the family business in 1964, where the business developed a reputation for good quality and great value. The business had expanded to over 260 shops by 1984, and today they have nearly 1,600 shops and are planning to open 600 shops over the next few years.
There is a range of fresh bakery goods that Greggs offers to their customers, such as sandwiches and drinks in its shops. In addition to this it also provides frozen bakery products to its wholesale customers. The Company's operations are managed through an integrated supply chain, with over seven retail regions. Greggs are passionately about making great quality, delicious tasting food that customers can enjoy as part of a healthy and balanced diet.
a) Examine the business practices of your chosen organisation and consider whether these activities demonstrate responsible corporate behaviour.
When discussing responsible practices within businesses it is important that these are carried out throughout each of the business sectors, these include the Marketing sector, Operations, Human Resources and the Finance sector. I will be investigating the practices that Greggs have put in to place for each of these sectors and how they affect the business.
Some of the practices that Greggs have implemented throughout the marketing sector, in order to be responsible business is how they price their products. Greggs have many different products, which are all priced differently. However over the recent period the prices have been rising which can be expected due to the recession and to the fact that Greggs number one competitor closedown. There have been compliments about this changes as customers do not like the fact that the prices of their products are rising. ‘Research by The Grocer magazine found that, prices have been increased but the sizes of some products have been reduced. Greggs feel they are catering for customer tastes towards paying more for less.’
The Daily Mail have an article on Greggs as they stated that ‘Bakery giant Greggs slims down pasties and bacon rolls while pushing up prices’. In the article it is said that the ‘High Street bakery Greggs has been slimming down its food - while still pushing up the prices. Several of the store's best-selling savouries have shrunk in size, however the ‘bakery giant has defended the shrinking size of its food, saying it is better on the waistline’. I feel that this does not demonstrate responsible because the customer is having to pay more for the product, but they are receiving less than before. This will also not reach the expectations of the customers as they are used to a certain standard for the product...