Question

Exercise 1: Long essay questions (IN YOUR WORDS)

1. Differentiate between superstores, supermarkets and convenience stores giving one example for each.
2. Explain what a supply chain is. Differentiate upstream and downstream partners.

make sure the answer is correct

Answer 1

1. Superstores can be defined as large supermarkets that offer a wide variety of merchandise for sale. Superstores will sell grocery as well as non-grocery products such as clothing, home décor, etc. As these types of stores are huge in size, they are often located out of town. They offer tremendous value to consumers due to the availability of huge variety of products at a lower price. Products can be bought at a discount since the superstores have economies of scale. Hence, they often face opposition from small, local retailers. Bed Bath & Beyond, Walmart are examples of superstores. Supermarkets are large stores, smaller than superstores, which primarily sell food, beverages and household products. They offer a variety of products in the foods and beverages section. Prices are usually slightly lower than neighborhood stores. Foodtown, Meijer are examples of this category. Convenience stores are small, retail neighborhood stores that offer liquor, food, beverages, newspapers, magazines, etc. There is less variety in goods sold and prices are usually higher than that in superstores and supermarkets. However, they offer convenience, since the stores are located within the neighborhood. Examples are 7-Eleven, ampm.

2. A supply chain can be defined as a set of entities, people, and all the resources involved in all steps, from the production of a good or service to the selling of the product. The upstream part of the supply chain comprises the organization’s suppliers and the transportation of raw materials till the production plant. The downstream part of the supply chain includes the organization’s wholesalers, retailers, and all resources required for distributing and selling the finished product to the customers.