Introduction to the Business
FreshChoice is a UK-based supermarket chain that has been operating for around 10 years.
It operates in a highly competitive market alongside large and well-established supermarkets
such as Tesco, Asda and Sainsbury’s. Despite this strong competition, FreshChoice has
managed to grow steadily by opening new stores across the UK and increasing its market
share.
The business positions itself as a good employer by offering full-time contracts, pay above
the national minimum wage and a range of employee benefits. However, recent data shows
that the business is facing several internal challenges, particularly in areas such as staff
training, recruitment and employee satisfaction. These issues are beginning to impact
customer service and overall business performance.
Purpose of the Business
The main purpose of FreshChoice is to provide goods and services (groceries) to
customers while making a profit. Like most private sector businesses, its key aim is profit
maximisation, but it also has wider objectives linked to growth and customer satisfaction.
FreshChoice also aims to:
● Deliver high-quality products at competitive prices
● Provide good customer service
● Maintain a positive reputation in the market
● Be seen as a reliable and attractive employer
In addition, the business has a social purpose, which includes looking after its employees
through benefits and creating job opportunities across the UK. However, current issues such
as high labour turnover suggest that it is not fully achieving this purpose.
Business Goals (Key Objectives)
FreshChoice has set three main long-term goals:
1. Become a Top 5 UK Supermarket by 2030
This goal focuses on growth and market share. Currently, FreshChoice is ranked lower
than major competitors like Aldi and Morrisons, so it needs to increase sales revenue and
expand its operations to move up the rankings.
This requires:
● More stores
● Better efficiency
● Stronger customer loyalty
, 2. Achieve Over 90% Customer Satisfaction
Customer satisfaction is essential in retail because it leads to:
● Repeat purchases
● Positive word of mouth
● Strong brand reputation
However, current data shows FreshChoice is struggling with:
● Poor customer service
● Lack of staff availability
● Products not always in stock
This shows a gap between targets and actual performance.
3. Reduce Labour Turnover Below 30%
Labour turnover refers to how many employees leave the business. FreshChoice currently
has a turnover rate of 45%, which is much higher than the industry average.
High turnover causes:
● Increased recruitment and training costs
● Loss of experienced staff
● Lower productivity
● Poor customer service
Reducing turnover is important for improving both employee stability and business
performance.
Issue 1: Ineffective Training System
FreshChoice currently operates an online-only training system that is poorly implemented
and lacks consistency across stores. Many employees do not have access to the necessary
technology in-store, meaning they are expected to complete training on personal devices at
home, which reduces engagement and fairness. Furthermore, there is no centralised system
to monitor who has completed or passed training, leading to situations where some
employees receive little to no training at all. The content itself is often not relevant to
employees’ roles, such as checkout staff being trained in warehouse safety. As a result,
employees lack the practical skills and knowledge required to perform effectively, leading to
operational mistakes, reduced productivity and poor customer service, which contributes to
FreshChoice failing to meet its customer satisfaction target.
Recommendation 1: Blended and Structured Training System
FreshChoice should introduce a blended training approach, combining online modules with
face-to-face practical sessions to ensure all employees can access and understand training
FreshChoice is a UK-based supermarket chain that has been operating for around 10 years.
It operates in a highly competitive market alongside large and well-established supermarkets
such as Tesco, Asda and Sainsbury’s. Despite this strong competition, FreshChoice has
managed to grow steadily by opening new stores across the UK and increasing its market
share.
The business positions itself as a good employer by offering full-time contracts, pay above
the national minimum wage and a range of employee benefits. However, recent data shows
that the business is facing several internal challenges, particularly in areas such as staff
training, recruitment and employee satisfaction. These issues are beginning to impact
customer service and overall business performance.
Purpose of the Business
The main purpose of FreshChoice is to provide goods and services (groceries) to
customers while making a profit. Like most private sector businesses, its key aim is profit
maximisation, but it also has wider objectives linked to growth and customer satisfaction.
FreshChoice also aims to:
● Deliver high-quality products at competitive prices
● Provide good customer service
● Maintain a positive reputation in the market
● Be seen as a reliable and attractive employer
In addition, the business has a social purpose, which includes looking after its employees
through benefits and creating job opportunities across the UK. However, current issues such
as high labour turnover suggest that it is not fully achieving this purpose.
Business Goals (Key Objectives)
FreshChoice has set three main long-term goals:
1. Become a Top 5 UK Supermarket by 2030
This goal focuses on growth and market share. Currently, FreshChoice is ranked lower
than major competitors like Aldi and Morrisons, so it needs to increase sales revenue and
expand its operations to move up the rankings.
This requires:
● More stores
● Better efficiency
● Stronger customer loyalty
, 2. Achieve Over 90% Customer Satisfaction
Customer satisfaction is essential in retail because it leads to:
● Repeat purchases
● Positive word of mouth
● Strong brand reputation
However, current data shows FreshChoice is struggling with:
● Poor customer service
● Lack of staff availability
● Products not always in stock
This shows a gap between targets and actual performance.
3. Reduce Labour Turnover Below 30%
Labour turnover refers to how many employees leave the business. FreshChoice currently
has a turnover rate of 45%, which is much higher than the industry average.
High turnover causes:
● Increased recruitment and training costs
● Loss of experienced staff
● Lower productivity
● Poor customer service
Reducing turnover is important for improving both employee stability and business
performance.
Issue 1: Ineffective Training System
FreshChoice currently operates an online-only training system that is poorly implemented
and lacks consistency across stores. Many employees do not have access to the necessary
technology in-store, meaning they are expected to complete training on personal devices at
home, which reduces engagement and fairness. Furthermore, there is no centralised system
to monitor who has completed or passed training, leading to situations where some
employees receive little to no training at all. The content itself is often not relevant to
employees’ roles, such as checkout staff being trained in warehouse safety. As a result,
employees lack the practical skills and knowledge required to perform effectively, leading to
operational mistakes, reduced productivity and poor customer service, which contributes to
FreshChoice failing to meet its customer satisfaction target.
Recommendation 1: Blended and Structured Training System
FreshChoice should introduce a blended training approach, combining online modules with
face-to-face practical sessions to ensure all employees can access and understand training
