Sample Research Proposal on Comparison of Supplier Relation of Tesco and Waitrose

Tesco and Waitrose are two of the most recognized and most successful supermarkets in the UK today. Tesco is the leading food retailer in the UK. Its corporate values of Tesco are: "No one tries harder for customers"; and "Treat people how we like to be treated" (Tesco.com, 2005). The first one includes standards such as: Understanding customers better than anyone; Being energetic, innovative and being first for customers; using their strengths to deliver unbeatable value to their customers; and looking after their people so they can look after Tesco's customers (Tesco.com, 2005). The second value of Tesco includes principles such as: recognizing teamwork and believing that there is only one team – the Tesco team; trusting and respecting each other; striving to do their very best; giving support to each other and praise more than criticise; asking more than tell and sharing knowledge so that it can be used; and enjoying work, celebrating success and learning from experience (Tesco.com, 2005). On the other hand, Waitrose, on the other hand, is one of the most successful brands of John Lewis Partnerships. Both companies, although Tesco is a little ahead, have made a mark in UK's retail and supermarket industry. But since the supermarket industry relies greatly on suppliers to keep up with its economy costs of goods, it can assumed that supplier relations is perhaps one of the most critical areas of management that the two companies handle. This study will explore this and will identify the difference among the two. Interestingly, Tesco has a larger name and a much successful company compared to Waitrose. But then, only with the results will the study reveal on whether Tesco has an edge over Waitrose in terms of supplier relations.   Problem Statement             Supplier relation is a form of strategic alliance that a company engage into to be able to gain considerable advantage on supplies. Toneva and Knoke (2005) cited various literatures and have identified the complete list of reasons why firms engage in strategic alliance. Reasons of firms include: market seeking; acquiring means of distribution; gaining access to new technology, and converging technology; learning and internalization of tacit, collective and embedded obtaining economies of scale; achieving vertical integration, recreating and extending supply adjust to environmental changes; diversifying into new businesses; restructuring, improving performance; cost sharing, pooling of resources; developing products, technologies, resources; risk reduction and risk diversification; developing technical standards; achieving competitive advantage; cooperation of potential rivals, or pre-emptying competitors; complementarily of goods and services to markets; co-specialization; overcoming legal/regulatory barriers; and legitimating, bandwagon effect, following industry trends. Logically, all those attributes is currently being affected by globalization one way or another, thus leads to the assumption that collaboration is more preferable at this era than increased competition.  Most of those attributes can be linked with firm collaboration among suppliers and companies inductively. Thus, in order to make the best out of the advantages of alliances with suppliers, companies need to know how to create positive relationships that would benefit both parties.   RESEARCH QUESTIONS The following research questions will be explored in the study: Ø       Does Tesco have more positive relationship with its suppliers compared with Waitrose? Ø      What are the factors that influence and promote good supplier relations? Ø      What strategies do the two companies use to promote positive supplier relations? Ø      What can be recommended to improve supplier relations among the two companies?   AIMS AND OBJECTIVES             The aim of the study is to explore the differences between the strategies of Tesco and Waitrose in creating a positive relationship with their suppliers. It also aims to identify on whether the two companies currently have positive relationship with their suppliers. The following objectives will also be explored: Ø      To conduct a survey on several representatives in Tesco and Waitrose to know what they think about their current relationship with their suppliers. Ø      To conduct a survey on the suppliers of the two companies and know what the former think of the latter. Ø      To analyze the data that will be collected from the survey. Ø      To provide useful and insightful conclusions and recommendations that would help the two companies improve their supplier relations.   METHODS The descriptive approach will be used in the study. A descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study (Creswell, 1994). It is also concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing. (Best, 1970) In addition, such approach tries to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research (Creswell, 1994).   Sampling             20 Tesco and Waitrose managers are planned to be surveyed as well as 20 suppliers for each of the companies. The sample selection will be convenience sampling and sampling will take place on email.   Data Collection A structured questionnaire will be constructed and sent to the respondents. They are expected to return the questionnaires within a week.   Data Analysis             Data will be analyzed using the latest SPSS.