Geoff Pugh, David Tyrrall and John Wyld
Both the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA) argue that barriers to market access in the UK brewing industry disadvantage small brewers…
Abstract
Both the Campaign for Real Ale (CAMRA) and the Society of Independent Brewers (SIBA) argue that barriers to market access in the UK brewing industry disadvantage small brewers. They have been actively campaigning for a number of years for a tax concession (progressive beer duty or PBD) to alleviate the situation of small brewers. This paper argues that the disadvantages faced by small brewers are due to a complex monopsony in the beer industry, where the power of the distribution segment of the value chain is paramount. It outlines a model of the structure of the UK beer industry, and undertakes two types of empirical analysis to test the potential impact of PBD on the small brewery sector. The paper finds that control over distribution is the key to profitability and survival in the beer industry, and that small brewers with such control are most likely to benefit from PBD. The findings, however, also have relevance to the position of any small business facing a powerful distribution segment. Finally, for the issue of policy development, the paper indicates that the potential outcomes of a policy change may not be entirely those intended.
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John Wyld, Geoffrey Pugh and David Tyrrall
The purpose of this paper is to examine the relationship between SME suppliers and large buyers, and so better inform competition policy in cases where market power resides with…
Abstract
Purpose
The purpose of this paper is to examine the relationship between SME suppliers and large buyers, and so better inform competition policy in cases where market power resides with buyers.
Design/methodology/approach
The theories of monopsony and oligopsony are applied to intermediate markets to set out a model of profit appropriation by large buyers from small suppliers. The main focus of the illustrative examples used is on the relationship between supermarkets and their suppliers.
Findings
The authors' main prediction is that powerful buyers are able to “exploit” SME suppliers by restricting their number, the price paid to individual suppliers and the quantity purchased from each supplier.
Practical implications
Governments seek to encourage small businesses because of their ability to generate innovation and create future growth opportunities. Any investigations of the continued growth of buyer power in intermediate markets should consider the effects not only upon consumer welfare but also upon the welfare of the SME sector. Governments may wish to counteract monopsonistic markets as they may inhibit SMEs that could otherwise provide innovation and growth within the economy.
Originality/value
This model gives a theoretical framework to analyse the interaction between small suppliers and large buyers. Furthermore, it may provide a counter to the argument that low consumer prices are the sole legitimate aim of competition policy.
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Jackie Fry, David Tyrrall, Geoff Pugh and John Wyld
This paper surveys the population of independent breweries in the UK to ascertain their Web site usage and accessibility via the Internet. It finds independent breweries have…
Abstract
This paper surveys the population of independent breweries in the UK to ascertain their Web site usage and accessibility via the Internet. It finds independent breweries have tended to lag similarly sized business in other sectors in the provision or abandonment of company Web sites. Most of their Web sites have intuitively easy URLs and are readily accessible via brewery directories, but are less accessible via popular search engines. Most are corporate Web sites rather than marketing or selling tools. The paper concludes with a discussion of business and policy implications for small businesses and the Internet.
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John Goodman and David C. Wyld
Documents a case study in the use of Shainin Design of Experiments in an industrial honing operation. Provides an overview of the process which attempts to reduce process…
Abstract
Documents a case study in the use of Shainin Design of Experiments in an industrial honing operation. Provides an overview of the process which attempts to reduce process variability by isolating the most influential factor (Red X). Shows the details of the week‐long experiment and gives some analysis of the data. Uses multiple statistical techniques to identify Red X and discusses corrective action. Suggests that this methodology is very practical and easily executable in many settings, making it one of the most approachable quality techniques available.
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Andrew Stein, Paul Hawking and David C. Wyld
In the late 1990’s, online B2B auctions were proliferating and were being adopted in a wide variety of circumstances. The reverse auction tool has evolved to take advantage of…
Abstract
In the late 1990’s, online B2B auctions were proliferating and were being adopted in a wide variety of circumstances. The reverse auction tool has evolved to take advantage of internet technology, and online auctions have been identified by many large organisations as a tool to achieve procurement savings. As companies adopt this technology, it is important for them to understand the implications of this type of procurement. This paper adopts a case study approach to identify the issues for both buyers and sellers using this type of B2B application. It describes the conduct of a reverse auction, from the preliminary steps all the way to the final awarding of the contract. The case study is viewed through the eyes of a supplier, undertaking a reverse auction for the first time. The main outcomes show that the auction vendor and buyer were major winners – with the supplier expending considerable time and effort to participate in the auction, only to realise that the auction places cost above all other factors in awarding the contract. The importance of cost over service delivery, customer support and buyer‐supplier relationship was the “bitter pill” the supplier had to swallow.
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David C. Wyld, Sam D. Cappel and Daniel E. Hallock
In their book Megatrends 2000, John Naisbitt and Patricia Aburdene (1990) stated that one of the ten “megatrends for the 1990's would be the rise of “The Age of Biology.” One of…
Abstract
In their book Megatrends 2000, John Naisbitt and Patricia Aburdene (1990) stated that one of the ten “megatrends for the 1990's would be the rise of “The Age of Biology.” One of the central forces behind this societal shift which is occurring right now, they say, is research into understanding human genetics and the rise of biotechnology. The scientific knowledge regarding human genetics and the technology to examine an individual's genetic makeup have grown at a rapid pace, especially in the last decade as a result of the Human Genome Project. This venture has been labelled alternatively as “mediocre science” (Roberts, 1990b: p. 804) and as “biology's Holy Grail,” (Nelkin and Tancredi, 1989: p. 14). It is indisputably a monumental scientific undertaking, likened to the drive to put a man on the moon in the sixties (“The Geography of Genes,” 1989). This knowledge and the resultant trends will likely prove to be important factors not only in our future economy, but also in the nature of how we understand ourselves.
This paper examines the potential relationship between the history of American generations and the development of American management thought. The paper reviews the recently…
Abstract
This paper examines the potential relationship between the history of American generations and the development of American management thought. The paper reviews the recently developed generational theory of American history, along with the generational concept itself. Then, the leading thinkers in the history of the management discipline are classified according to their generational membership. The potential theoretical and research implications of the interplay of managerial and historical generations are then discussed.
The purpose of this paper it to examine the potential for radio frequency identification (RFID) to be used to tag packs, cartons and cases of cigarettes, both to combat the…
Abstract
Purpose
The purpose of this paper it to examine the potential for radio frequency identification (RFID) to be used to tag packs, cartons and cases of cigarettes, both to combat the fast‐growing, global problem of cigarette smuggling and to provide tobacco companies and retailers with better inventory control and business intelligence.
Design/methodology/approach
The paper begins with an overview of RFID technology and its applicability to product identification. It then looks at the issues involved with contraband cigarettes, both in the USA and on a global scale, examining the impact of smuggled cigarettes on both tax revenues and public health. With the growth of online cigarette sales and sales by Native American tribes, the problem continues to escalate in scope. The paper then examines the technological and political issues involved – and potential benefits of – using RFID track and trace capabilities with cigarettes, looking at early efforts to accomplish just that goal.
Findings
It was found that RFID is an appropriate technological answer for the seemingly intractable problem of contraband cigarettes.
Practical implications
The paper highlights the importance of implementing a technological solution to the problem of cigarette smuggling. It provides a framework for the cost‐effective use of RFID in this area and the potential for reducing contraband cigarettes, increasing tax revenues, and decreasing youth smoking.
Originality/value
The paper is original in that it lays out a market‐based case for the use of RFID to combat cigarette smuggling, giving credence to the calls of governments around the world and the WHO to better use technology to reduce the smuggling problem.
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John Overby, Mike Rayburn, David C. Wyld and Kevin Hammond
Epidemiologists are concerned the next deadly global cognition will be a new kind of deadly flu which humans have no resistance. Since the 1960s, their alarm has been focused on a…
Abstract
Epidemiologists are concerned the next deadly global cognition will be a new kind of deadly flu which humans have no resistance. Since the 1960s, their alarm has been focused on a bird (avian) virus (H5N1). This virus is generally harmless in its host species, but it is extremely deadly when contracted by humans. H5N1 mutates quickly and tends to pick up genes from flu viruses that affect other species. The flu is far more contagious and harder to contain than the SARS (severe acute respiratory syndrome) virus. It is projected that 30‐40 per cent of the population would be infected in a H5N1 flu pandemic, and as many as one‐third would die. The 1918 Spanish flu caused 20 to 50 million deaths world wide. One scientist observed that the 1918 Spanish flu pandemic could have caused civilisation to disappear within a few weeks. Currently, more than 50 million chickens have been slaughtered in eight Asian countries in efforts to curb the spread of avian influenza. This article examines the roots and dangers of the potential avian influenza pandemic, examining the business and social ramifications that could ensue if the worst case scenario occurs.
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John Overby, Mike Rayburn, Kevin Hammond and David C. Wyld
The war in Iraq, the threat of terrorism and the Severe Acute Respiratory Syndrome (SARS) epidemic have made international business activities increasingly difficult and risky…
Abstract
The war in Iraq, the threat of terrorism and the Severe Acute Respiratory Syndrome (SARS) epidemic have made international business activities increasingly difficult and risky. The worldwide economic downturn and slow growth in domestic markets are forcing companies to depend more than ever on overseas trade. SARS emerged in China in November 2002 and has spread to 26 countries. The SARS epidemic has caused the most severe economic crisis in Southeast Asia since the wave of bank failures and currency devaluations that swept the region five years ago. The SARS epidemic has prompted health officials to implement travel advisories and restrictions, in order to defer nonessential travel to regions of Asia with large numbers of SARS cases. They are enforcing quarantine and isolation measures in major cities to try and limit the spread of SARS. The President of the United States has signed an executive order adding SARS to the list of communicable diseases that can be quarantined. A major disruption in China could paralyze just‐in‐time supply chains and cause an economic crisis for retailers and other businesses worldwide. The SARS epidemic has caused many economists to drastically reduce their economic‐growth forecasts for Asia. New infectious diseases, such as SARS, can emerge and easily travel around the globe, infecting less‐resilient hosts and mutating because of the influence of viruses and bacteria in their new environment. Health officials are even more concerned about the pandemic disaster that hasn’t happened, but may still. However, the SARS epidemic has created positive economic benefits for some companies.