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venture in south Korea ,every decision that one of them make they will have to consult the partner first to see if they agree, this is an disadvantage because they can end up in a disagreement that can harm the business, This is why it is always advisable to draft a deed of partnership during the formation period to ensure that everyone is aware of what procedures will be in place in case of disagreement and what will happen if the partnership is dissolved.

Another disadvantages, is the fact that partner is subject to unlimited liability, which means that each partners shares the liability and financial risks of the business. This can be countered by the formation of a limited liability partnership, which benefits from the advantages of limited liability granted to limited companies, while still taking advantage of the flexibility of the partnership model.

Identify and justify possible options the senior management may have which will enable Smartco to maintain its current levels of success and profitability.

The UK business of SMARTCO is based on fascination of getting it right for the customers. They run to offer great value, grow market share and bring new innovations.

In this report, it can be recommended that if Smartco follows these following core competences, then Smartco may protect its present status or it may sustain in first 10 retailers in the UK.

  1. First of all, since the developing eastern European and Asian markets have enormous potential for growth, Smartco needs to continue to invest in those markets so that the company can gain more market shares for its expansion.
  1. Second of all, Smartco can sign the partnership agreements with more companies in eastern Europe and Asia to gain more comprehensive market information and share of the products and develop new ones.
  1. Last but not the least, it is necessary that Smartco deeps more its partnership with Esso, since Esso is a long established and well-respected player in the UK market. By doing it Smartco can achieve further expansion.

Question 2


Assess the strengths and weaknesses of Smartco as they seek to expanding in the coming years.


First of all, Smartco has a strong domestic market position, since 1990s it expanded rapidly through acquisitions of smaller supermarket chains throughout the UK. Smartco was one of the first super market groups to introduce a loyalty card and led the way as one of the first food stores to offer an internet shopping service.

Second of all, Smartco is a diverse geographically, and into areas such as the retailing of books, clothing, electronics, furniture, petrol, telecoms and DVDs. The 1990s saw Smartco reposition itself, from its perceived position as downmarket retailer, to own which appealed to a wider social audience through its Smartco Value to Smartco Quality ranges. This was successful and the chain grew from 600 stores in the mid-1990s to 2500 stores 15 years later.

Last but not the least, as their characteristics, Smartco has a strong partnership, following their main competitors, in 1997, Smartco and Esso formed a business alliance that added petrol stations to many of their larger store sites. It also allowed them to open Smartco Mart stores on the site of many existing Esso patrols stations. 200 Smartco/Esso sites now exist across the UK. This also leads to a stronger market presence


First of all, Smartco has chosen not to diversify into banking/financial services broadband making the company the company less competitive in those sectors.

Second of all, Saturation of the market, Smartco competitors have also rapidly expanded their supermarket and hypermarket outlets. Some European chains have also become well established in the UK, with the result that the UK grocery market has become increasing saturated, making the food retailers companies fighting much harder to attract customers.

Last but not the least, lack of strategies and Adaptation to deliver a growth more economically, because the current Attachment with the past strategies the company is not achieving the growth and Good returns that used to deliver.

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