Business Strategies: A Comprehensive Analysis of 99 Stores

This assignment delves into the business strategies employed by 99 Stores, a UK-based grocery retailer. It utilizes frameworks like PESTLE, SWOT, and Porter's Five Forces to analyze the macro and micro factors impacting the company's operations. The analysis explores the internal environment, capabilities, and competitive landscape, culminating in a strategic management plan designed to enhance 99 Stores' competitive edge and market position. The assignment provides a comprehensive understanding of the strategic challenges and opportunities faced by 99 Stores, offering insights into how the company can navigate the dynamic retail environment.

BUSINESS STRATEGIES

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
P1- PESTLE AND SWOT FRAMEWORK OF 99 STORES AND THE IMPACTS OF MICRO AND
MACRO FACTORS ON THE ORGANIZATION.................................................................................3
M1- CRITICAL ANALYSIS OF MACRO ENVIRONMENT FACTOR TO DETERMINE THE STRATEGIC
MANAGEMENT DECISIONS..........................................................................................................4
TASK 2..............................................................................................................................................6
P2- INTERNAL ENVIRONMENT AND CAPABILITIES ANALYSIS OF 99 STORES..............................6
M2- CRITICAL ANALYSIS OF INTERNAL ENVIRONMENT FOR ASSESSING STRENGTHS AND
WEAKNESSES OF 99 STORES........................................................................................................7
TASK 3..............................................................................................................................................8
P3- EVALUATION OF COMPETITIVE FORCES OF 99 STORES BY APPLYING PORTER’S FIVE
FORCES.........................................................................................................................................8
M3- STRATEGIES TO IMPROVE COMPETITIVE EDGE AND MARKET POSITION BASED ON THE
OUTCOME OF ORGANIZATION..................................................................................................10
TASK 4............................................................................................................................................12
P4- INTERPRETATION AND DEVISING STRATEGIC PLAN FOR 99 STORES..................................12
M4- STRATEGIC MANAGEMENT PLAN FOR THE 99 STORES.....................................................15
CONCLUSION.................................................................................................................................16
REFERENCES...................................................................................................................................17
1

INTRODUCTION
Business strategies can be defined as the principles or a goal that sets by the manager and
management group of the company in order to accomplish the specified target and success.
Simply, it described long-term planning or business approach and there are various kinds of
strategies that the company used. In this assignment, macro factors will analyze that can put
the impacts on the business environment and by determining the factors, it would be easier to
make an effectual plan towards gaining competitive advantages. The chosen organization for
this assignment is 99 stores, and the PESTLE, SWOT or Porter’s five forces will determine in
context to this company.
99 stores Ltd. Is the private company of UK and headquarter of this organization is located in
Holloway, London? They provide groceries and related services and goods to the customers as
per their requirements. The total numbers of employees are more than 3000. It was founded by
Nadir Lalani in January 2001.
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TASK 1
P1- PESTLE AND SWOT FRAMEWORK OF 99 STORES AND THE IMPACTS OF
MICRO AND MACRO FACTORS ON THE ORGANIZATION
PESTLE ANALYSIS-
PESTLE is the framework tool by which, the macro factors can be analyzed easily that can
influence the business environment and strategies accordingly. It is an acronym of political,
economic, social, environmental, technical and legal factors. These macro factors directly put
impacts to the organization.
PESTLE ANALYSIS OF 99 STORES-
Political factor: political instability, taxation, trade and tariffs, wage legislation, legal framework
and many other factors are included in this category that impacted the whole function and
customer services. In order to reduce these negative consequences and weak links, the
company must diversify their systematic approaches and make the plans according to it.
Economic factor: economic factors of 99 stores considered efficiency of financial system, labour
costs, infrastructure, discretionary income, market growth, government intervention and many
others aspects that directly impacted the organizational culture and their functionality (Mauree
and Geneletti, 2017). Apart from that, inflation, consumer rating, expenditure is also some of
the factors that influence the growth of the company.
Social factor: this factor related to the communal society and the demands of people, as 99
stores always seeks new opportunity and works according to aware the people, so that they can
take the advantage of and helps in the achievement of the company.
Technological factor: as technical advancement takes place nowadays and it impacted
positively to the organization. It fastens the services and helps in the enhancement of
profitability and effectiveness accordingly. Fast billing services, positive customer experience
can be acquired by the advanced technical factors.
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Legal factor: governmental laws and regulations, employment laws, data protection and other
laws are included in this aspect and impacted the entire business functions and the procedure
(Madhavaram, et al. 2017).
Environmental factor: environment scanning, climatic changes, recycling standards, an attitude
of people, ecological products, endangered species, waste management, consumer service,
pollution, regulations and endangered species are included in this factor that impacted the
entire functionality of business organization.
SWOT ANALYSIS OF 99 STORES -
It is the strategic tool of management that is used for determining the external or internal
micro factors. It is an acronym of strengths, weaknesses, opportunities and threats.
STRENGTHS WEAKNESSES
 The wide variety of products
 Affordable price
 Good staff
 Customer satisfaction
 Overcrowding and high customer
expectation
 Competition
OPPORTUNITIES THREATS
 Expansion of business
 They can work according to
enhancing their brand name
 Potential to tap into new customers
(Siciliano, 2016).
 Huge rivalry
 Safety procedure
 Fluctuation in the marketplace
M1- CRITICAL ANALYSIS OF MACRO ENVIRONMENT FACTOR TO DETERMINE
THE STRATEGIC MANAGEMENT DECISIONS
The macro factors of 99 stores impacted the business administration directly. As mentioned
above that the political factor, which includes governmental laws, taxation and other aspects
and risks factors put the negative impact and affects the customer experience as well. These
aspects of political factor may obstruct the several advantages as well. Apart from that, the
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economic factor influences the competitive advantages and fluctuation about customer
revenue and their experiences with the spending rate are also put the negative impact on the
business functions and process accordingly (Kolk, 2016). In case of favourable economic
conditions, the company can grab several opportunities by which they can get the advantage
and maximizes the profit rate accordingly.
Social factors can be pretentious by demographical area of the country, which impacted entire
business functionality and the process in a positive manner if the customers are more
interested to buy the products and services. As 99 stores always seek new challenges and
identify needs and different demands of the people and then make the decision according to
provide them with such required services, which fulfils their needs and helps in the
enhancement of profitability as well (Kolk, 2016).
It is well known that the technical advancement in this globalized world take place nowadays
and impacted positively. It fastens the services and increases customer experience as well. It
creates positivity and helps in the enhancement of effectiveness accordingly. Fast billing, online
booking services, delivery system and many other services have been updated with the help of
advanced technical terms that enhance profitability and efficiency as well.
Moreover, the legal terms and environmental factors play vital role because legal aspects
render several laws and regulations while some of the environmental issues impacting the
business arena.
In order to overcome the issues and problematic situation of the organization, they must make
the decisions according to it (Baumgartner, 2014). The involvement for the employees and
entire staff in the decision making process or entire activities of business administration makes
the employees feel more valuable part of the of the company and also give them potential
strength to work more passionately and in an effective manner towards accomplishing the
goals and objectives and helps in the enhancement of profitability respectively.
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TASK 2
P2- INTERNAL ENVIRONMENT AND CAPABILITIES ANALYSIS OF 99 STORES
In order to analyze the capabilities and internal environment fi the 99 stores, the value chain
analysis will create greater value and helps in comparing the functionality of the business
administration as well. It maximizes the values for the consumers and helps to identify the
overall competition accordingly (França, et al. 2017). It can be defined as the strategic tool that
the company used for identifies the internal factors and overall activities within the
organization such as the source of cost, cost differentiation, advantages and many other
factors. Inbound and outbound logistics, inventory control, storing, scheduling, transportation,
receiving are the factors that included in the value chain analysis.
Primary activities:
A primary activity of the company includes inbound and outbound logistics, sales and marketing
scopes, operations, business process, funding, resources etc. these primary activities of the
company works according to transform the inputs into output. Hiring and recruiting the new
people are also included in this service that helps in the enhancement of proficiency. The
promotional tactics of 99 stores can be done by different methods in order to attract customers
and increasing awareness among the people so that they can get aware of it and take the
advantages accordingly and helps in the enhancement of profitability and effectiveness.
Support activities:
These activities of value chain analysis comprise of the planning like infrastructure, expansion of
business, operations and other key aspects that provides the potential to the company and
helps in the development and growth. Safety and security concerns are also included in this
category. As the HR department of the 99 stores makes their decisions and involves entire staff
members for making the plan towards gaining success (Rowledge, et al. 2017). They also
conduct training program, so that the people can develop their skill set and helps in maximizing
the profit rate as well. Support activities also include the technical advancement by which the
customer satisfaction can be acquired easily with the high proficiency that helps in gaining
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competitive advantage and also give support to the customers as well as employees for
maintaining sustainability respectively.
M2- CRITICAL ANALYSIS OF INTERNAL ENVIRONMENT FOR ASSESSING
STRENGTHS AND WEAKNESSES OF 99 STORES
As mentioned above that the internal environment of 99 stores is helpful in gaining competitive
advantage and provides high-quality products and services to the customers as per their needs
and demands, which helps in satisfying their needs and enhanced brand value and satisfaction
of customers accordingly. The value chain analysis comprises of primary and support activities
that include various services and the facilities and helps the company to determine strength
and weaknesses as well (E. Dobbs, 2014). With the strategic decision making and planning, may
help in overcoming the issues and problematic issues of the company. As there are several
issues and the conflicting situation can be raised within the organization that can be reduced
with the effective decision making and the support of each other.
It is very important to maintain sustainability and the strong relationship with the employees
and entire staff members with the effective communicational strategy so that they can easily
resolve the conflicts and many issues accordingly. It also helps in maximizing the profit rate and
effectiveness of the organization. The performance of the employees and entire staff member
must be the effective and ineffective manner in order to accomplish the organizational goals
and objectives (Bell, et al. 2017). In the primary activities, the structure, services, operations
and other internal activities are included on the other hand; infrastructure, external services
and operations are included in the support activity, which helps in supporting the primary
activities and enhances the proficiency of the organization accordingly.
Moreover, it needs to be developed more effectively to get rid of the competitor world and also
helps in the increasing awareness among the people by which they can easily take the
advantages of and enhances the effectiveness accordingly.
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TASK 3
P3- EVALUATION OF COMPETITIVE FORCES OF 99 STORES BY APPLYING
PORTER’S FIVE FORCES
Porter’s five force model is used for analyzing the competitive environment of the business by
which the intensity of business and competitive analysis can be analyzed. There are five forces
in this model that develops strategic position within the industry (Badii, et al. 2018). It also
encourages the entire staff for their certain working criteria and gives them the potential to
deal with the situations and makeup for the competitive environment accordingly.
Figure: Porter’s
five forces model
[Source:
https://www.mindtools.com/pages/article/newTMC_08.htm]
Threats of new entrants: according to the new entry in the market in grocery or supermarket
industry may create pressure and impacted the entire business operations accordingly. By
utilizing the approach of low-cost cutting and less pricing strategy for providing such required
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things to the customers according to their needs and demands may positively impact the
business arena and increases values or efficiency of the business administration (GURCAYLILAR-
YENIDOGAN and AKSOY, 2018). There are huge rivalries within the marketplace and each and
every one put their whole efforts for enhancing the profitability rate and effectiveness of the
business, so it is significant for the 99 stores to maintain their sustainability and make their
decision according to it, so that they can gain competitive advantages accordingly and helps in
eh enhancement of proficiency.
Bargaining power of suppliers: in the marketplace, there are various kinds of suppliers are
present in the marketplaces that have high powers to extract pricing strategy and they can also
decrease the profitability of the organization accordingly.
Bargaining power of buyers: the customer is the major stakeholder in any organization who is
able to enhance the profitability and effectiveness. It impacted the organization positively and if
the company puts their efforts for providing such services and goods to them in order to
accomplish the goals and objectives. Powerful customers can bargain highly by which
sometimes the company influenced badly and decreases the profitability accordingly.
Threats of the substitute: in this globalized world, there are various substitutes available in the
market that can render the industry and needs of the customers and decreases profit rate of
the organization accordingly (Darroch, 2014).
Competitive rivalry: as it is well known that there is huge rivalry within the market but effective
decision and planning can make the organization profitable accordingly. High competition may
decrease overall profit rate of the company and impacted the organization accordingly.
M3- STRATEGIES TO IMPROVE COMPETITIVE EDGE AND MARKET POSITION
BASED ON THE OUTCOME OF ORGANIZATION
As it is mentioned that there are huge rivalries within the marketplace and some of the
problematic situations and issues may also impact the business procedure and program as well.
99 stores have been utilized several approaches and tactics in order to overcome the negative
situations and makes the decision effectively towards achieving goals and objectives. In order to
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increase market growth and position, there are following strategies that the company used
towards gaining competitive advantages-
 It is important to maintain sustainability within the business administration and strong
relationship with the employees and entire staff members may reduce many of the
negative impacts and issues. Strong relationship creates the healthy environment and
gives potential to the staff workers for doing their work effectively and in manner.
 By developing new products and providing such effectual services and goods to the
customers helps in increasing customer satisfaction and also builds the economic scale
by which threats of new entrants can be reduced (Kerzner and Kerzner, 2017).
 High bargaining power of supplier issues can be removed by building effective supply
chain demand that can also develop the independence among them and helps to reduce
these issues accordingly.
 It is important to understand the needs and demands of the people and then providing
them with such required services and goods that will help in increasing brand value and
also reduces the problem of substitutes.
 The effective communicational strategy will also helpful in reducing many of the effects
of the organization because by communicating with each other effectively and sharing
the opinions and views may create positive impact and also helps in reducing conflicting
situation accordingly (Wheelen, et al. 2017).
 The market exploration and by identifying the different needs and demands of the
people may impact positively and helps in the enhancement of profitability and
effectiveness accordingly.
These are some of the strategies and approaches by which the company can easily make the
effective decision and maintains their sustainability as well. Communication plays the viable
role within the industry because in create friendly and healthy environment where each and
every one can share their feelings and views that reduce the chances of misunderstanding and
several issues of the company as well. It also helps the people to maintain the healthy
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relationship with other, so that they can put their efforts in their certain working criteria and
helps in the advancement of an organization as well.
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TASK 4
P4- INTERPRETATION AND DEVISING STRATEGIC PLAN FOR 99 STORES
Porter’s generic strategies:
Porter’s generic strategies can be described as the competitive advantages of a company and
also helps in pursuing these benefits from the marketplace. There are four kinds of generic
strategies such as lower cost, differentiated leadership, cost focus and the differentiation focus.
These strategies help in rendering greater benefits and also help in lowers the price
(Baumgartner, 2014).
Figure: Porter’s generic strategies
[Source: https://www.mindtools.com/pages/article/newSTR_82.htm]
There are majorly two kinds of competitive advantages that are combined with the scope,
which varies from differentiation functions accordingly.
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Cost leadership: strategies of Porter’s methods are used for increasing upper hand – at the end
of the day, building up the "edge" that gets you the deal and removes it from your rivals. There
are two primary methods for accomplishing this inside a Cost Leadership methodology:
Expanding benefits by lessening costs while charging industry-normal costs. It includes
economics of scale, proprietary technology, preferential assets and many other factors that can
be helpful in achieving overall leadership traits and maintains sustainable growth of the
organization accordingly (Madhavaram, et al. 2017).
Cost focus: the bland system of concentrate lays on the decision of a tightly focused degree
inside an industry. The focuser chooses a fragment or gathering of sections in the business and
tailors its methodology to serving them to the avoidance of others.
The concentration technique has two variations. In cost centre, a firm looks for a cost
advantage in its objective section, while in (b) separation centre a firm looks for separation in
its objective fragment. The two variations of the attention methodology lay on contrasts
between a focuser's objective fragment and different sections in the business. The objective
portions should either have purchasers with abnormal needs or else the creation and
conveyance framework that best serves the objective section must vary from that of other
industry fragments. Cost centre endeavours contrast in cost conduct in a few portions, while
separation centre adventures the exceptional needs of purchasers in specific fragments.
Differentiation leadership: it major aim is to capture the large market area in order to identify
the competition so that they can easily make their decision and planning according to it for
gaining such advantages and helps in the profit rate and enhanced efficiency. It also adds extra
value position to the services and goods of the company with the premium pricing strategy,
which helps in gaining competitive advantages accordingly (Bell, et al. 2017).
Differentiation focus: the major focus of this strategy is to carry out sustainable differentiation
of the services and goods with the proper needs and demands of the people by which they can
fulfil their demands and helps in increasing customer satisfaction, which enhances brand value
and the proficiency accordingly.
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Apart from that, another theory and method for analyzing the strategies of the company by the
Ansoff matrix, this is one of the most prior strategic tools that gives potential and helps in
making the strategic plan for the future growth of the company.
Figure: Ansoff Matrix
[Source: https://blog.oxfordcollegeofmarketing.com/2016/08/01/using-ansoff-matrix-develop-
marketing-strategy/]
It suggested two major approaches for developing strategies such as productivity growth and
the market growth. In the matrix, there are four options and each has different level. In the
lowest level of the matrix, the existing sell strategy of the company has been established, which
is known as the market penetration. It helps to take entry in the new market with the effective
planning and promotional strategies (Badii, et al. 2018).
The second option is called as product development, where products and promotional
strategies have been derived in order to deal with the situations and analyze the needs of
customers for providing them with such required services accordingly.
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The third strategy is known as the market development in which influencing factors of the
marketplace can be analyzed in the manner with the consideration of new marketplace and
well-planned approaches towards gaining competitive advantages.
The fourth strategic option is called as the diversification, which develops new products for the
new marketplace and risk factors have been also identified in this stage so that the company
can easily make the strategic decision for reducing such negative consequences and enhances
their effectiveness as well.
M4- STRATEGIC MANAGEMENT PLAN FOR THE 99 STORES
The management plan is the strategic tool that provides the effective opportunity to the
company in order to develop strategies and objectives for the certain working criteria and
enhancement of the profitability of the company as well.
There are majorly four factors are considered while developing the plan for the organization
such as planning, organizing, leading and the controlling. It is also known as the basic road map
for the attainment of the goal and specified objectives (Darroch, 2014).
In the first stage, the proper planning takes place where the management department and the
entire staff members that help in the strategic management system for the objectives and goals
of 99 stores.
In the second step, Organizing of the planning and entire business procedures have been taken
place which is an important factor for controlling and monitoring of the process and business
activities (Kerzner and Kerzner, 2017).
The third step stated leading and in the last controlling and monitoring of the business
operations take place which must be effective in nature towards establishing the objectives and
goals of the company so that the people can do their work in an effective manner.
In order to achieve the target and accomplishing the goals and objectives for the development
and growth of the company, there are several approaches and theories that the company
utilized accordingly.
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CONCLUSION
The aforementioned assignment depicted the study of business strategies that are more
important to carry out within the 99 stores in order to accomplish the specified goals and
objectives. there are various approaches has been described in the context of organizational
terms and the internal or external factors have been also derived, by which it can be easier to
analyze the influencing factors. It helps in making the strategic decision towards reducing issues
and problematic situations as well as works according to attaining the perspective goals and
objectives. Internal environment and capabilities with applying Porter's five forces in order to
identify the competitive edge within the marketplace have been also discussed. Furthermore,
different theories and interpreting and devising strategies have explained in a manner with the
appropriate tangible management plan by which the company can easily set their standards
and make decisions according to gain competitive advantages with the improved customer
satisfaction and brand value as well.
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