IB Business Management

This could easily be a Microeconomic 'scoop', focusing on the role of profit and how we might define supernormal profit, however, I've put it here because Nils Pratley's analysis goes beyond this in looking at a key Business Management concept - Return on Capital Employed (ROCE) that proves a good guide to the extent to which the big supermarkets are profiteering. 

He seems to prove that by historic standards, the supermarkets are making about 3% profit, and whilst he doesn't deny that there appear to be parts of the market - notably milk - where something's awry. Profit margins and the Return on Capital Employed suggest that it might be branded food manufacturers, rather than retailers who are profiteering. 

An example of change in action, with this BBC article looking at the future for car dealerships, suggesting that new models of buying cars and the banning of new petrol and diesel car sales from 2030, meaning that staff will require retaining, and, in all probability, there will be fewer of them. 

Furthermore, instead of making an average profit of 7% per car, the dealerships are being squeezed by car manufacturers, with some - notably Audi and DS - looking to set-up their own directly-owned showrooms. 

However, existing dealers are confident that there is a still going to be a place for them in any future market.