Business Strategies of the Atlantic Superstore Report 2022
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Running Head: BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE1 BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE Name- Instructor name- Course name- Due Date-
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BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE2 Contents BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE..........................................1 Summary....................................................................................................................................3 SWOT Analysis.........................................................................................................................4 Strengths:................................................................................................................................4 Weakness:..............................................................................................................................4 Opportunities:.........................................................................................................................4 Threats:...................................................................................................................................4 Environmental Constraints.........................................................................................................4 Stakeholders...............................................................................................................................6 Organizational Structure and Design.........................................................................................6 Motivating Employee.................................................................................................................7 Recommendations......................................................................................................................7 Controls and Recommendations................................................................................................8 References..................................................................................................................................9
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE3 Summary Atlantic Superstore is a Canadian supermarket chain operating across 54 stores across Canada. The company offers various products in the retail industry. There is a varied range of products that are offered by the company. It caters to a large customer base. The report analyses the internal and external environment of the company. Through SWOT analysis the internal business strategy of the company is decided and stated in this analysis. PESTLE analysis determines the external environment, which enables an understanding of the various constraints faced by the company. The reports also identify the importance of stakeholders and employee motivation. It also helps in identifying the appropriate organizational structure for Atlantic Superstore. Recommendation and controls are discussed for improving the operations of the Atlantic Superstore. Thus, this report will give a view of the internal and business strategy of the Atlantic Superstore.
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE4 SWOT Analysis Strengths:The major strengths of the Atlantic Superstore are the employee base that possesses reliable experience and training. The expertise of the employee will be used to cater to the requirements of the customers while also tackle their issues efficiently. Weakness:SomeoftheweaknessesoftheAtlanticarehighrentsandcomplex management structure. The company will focus on selling larger quantities by offering special benefits for loyal customers. This will help the company to earn high profits while also managing its high rent. In this view, complex management can be cured through the recruitment of efficient management personnel, who will be able to manage the 24/7 operations of the Atlantic Superstore effectively. Opportunities:The firms use market opportunities for expanding their operations in the region (Kajanus et al,2012). In this view, high employment and increased purchasing power in Canada have helped the firm in expanding its operations. The firm will adopt techniques like Home delivery and online operations that help will further increase its service as well as the customer base. Threats:Identifications of market threats help firms in surviving high competition in the region (Görener,TokerandUlucay,2012). Currently, Atlantic Superstore has been facing high competition from other retail firms that operate in Canada. Thus, the company should enhance its services to attract its customers. Atlantic Superstore will also offer special benefits like offers, discounts, home delivery services for its loyal customers for retaining its market strength. EnvironmentalConstraints PESTLE Analysis
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BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE5 Political: Canada has been ranked 18thby The World Bank for the ease of doing business (Nandonde,2019). The corporate taxes are low while the educated workforce enhances the growthopportunitiesofthefirm.Thepoliticalenvironmentishighlyconducivefor businesses in Canada. Economical: The region has been estimated to grow at a rate of 1.5% in the year 2019 (Santander, 2019). In this view, the unemployment rate is low (5.4% in 2019) that indicates a strong labor market in the region. Financial Stability of the population will help retailers like Atlantic Superstore in gaining market strength. Social: Social factors also help in determining the external environment of the firms (Perera, 2017). Thus, in this regard, 40-50% of the total population is the working class of the economy (Santander, 2019). Thus, purchasing power is high that further helps business units like Atlantic Superstore in earning profits. Technological: The region has a strong R&D that drives innovation which further helps in internationalexpansion(Ward,2016).Thus,technicaladvancementwillenhancethe operational efficiency of the Atlantic Superstore. Legal: Canada has ranked 114thin the contract enforcements this will further help Atlantic Superstore to function smoothly. Environmental: Governments of Canada has also passed several environmental acts to be followed by the business units to maintain environmental standards (Fasken, 2017). All such regulations will be followed by the Atlantic Superstore. There are two major environmental constraints in Canada. Atlantic superstore pays high electricity bills as their prices in the region has grown by 71% (Hokkanen, 2019). Thus, the privatization of electricity in the province will reduce the high costs for Atlantic Superstore. This is a major economical constraint faced by the company. Canadian banks and insurance companies offer good investment opportunities for firms. Such financial benefits will further
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE6 help Atlantic Superstore to expand its operations worldwide. This is a major opportunity present in the macro environment of the company. The other constraint is the increasing rate of cybercrimes that further challenges the privacy of the Atlantic Superstore. Cybercrimes have increased to 160% (Hokkanen, 2019). This is a major technological challenge faced by the company. Therefore, the company has planned to install advanced software to protect customer data as well as its operational privacy. Stakeholders Stakeholders can majorly be divided into two categories that are primary and secondary stakeholders. The primary stakeholders have strong financial control as their income is majorly dependent on the profitability of the business. For instance, if the firm expands its operations, the profitability of the invested funds might decline for the primary stakeholders. Furthermore, secondary stakeholders are not directly impacted by the operations of the business. Atlantic Superstore must focus on its primary stakeholders that are vendors and suppliers who help the business to succeed. Thus, the organization should manage its primary stakeholders. Organizational Structure and Design Organizational structure majorly refers to the framework through which the company exercises control (Ashkenas et al, 2015). In a mechanistic structure, all the decisions are based on a centralized network. This structure is also known as a bureaucratic structure where the hierarchy managers are only responsible for decision making (Kortmann, 2012). This structure is best for companies that operate in a stable environment. On the other side, in an
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE7 organic business structure, each member is a responsible decision-maker (Burns, 2010). Communication and decision making in the organic structure is rapid that help organizations quickly adapt to the changes. Atlantic Superstore works on the organic structure. The store has functional areas like a warehouse, customer care, billing counters, and others. Each department has its manager who is also the decision-maker. Motivating Employee Needs theory of Motivation by Maslow can enable identification of internal factors through which the employee can be motivated (McGrath and Bates, 2017). Needs theory of motivation comprises five aspects such as physiological, safety, self-actualization, social and self-esteem. Therefore, managers at the superstore should fulfill the Physiological needs of water, food, and shelter by providing an appropriate salary. Furthermore, Safety needs include security from accidents, health, and financial crisis. They can be fulfilled through insurance schemes, financial assistance and other employee benefits of the organization. In this view, social needs are fulfilled through love and care gave by the managers to the workers. Esteem needs are the needs of self-respect and esteem that the managers can uplift through appreciations and recognitions. Furthermore, self-actualization can be met by giving challenging work, participating in decision making. Recommendations There many competitors of the Atlantic superstore in Canada. Hence, the company should broaden its customer base. Currently, the firm caters only low and middle-income groups but it should target high earning classes. The company should sell a premium range of products
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BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE8 to satisfy high earning individuals. This will enhance its customer base and strengthen its market position. The company needs to combat its high costs. The efficient management of the resources should be done by the managers to ensure low cost of operations. Low-cost operations include efficient use of manpower, electricity. In retail organizations, employee motivation should be high as they are directly linked to the customers. Atlanticsuperstore should use the Needsof Theory to enhanceemployee motivation that will further yield high customer service by the workers. Employees can be highly motivated through participation in decision making. Controls and Recommendations To monitor business activities three types of approaches like feedback, feedforward, and concurrent controls can be used. In this view, feedback provides information on how the company has been working but feedforward controls are the disturbance variable through corrective measures that can be taken before they harm the entire process. The third aspect involves concurrent controls that include the identification and prevention of problems. Thus, in the business model of Atlantic Superstore, concurrent controls and feedforward will be applied. In this regard, concurrent controls will help to manage quality control standards while feedforward would improvise employee services before they harm the company’s mission and vision.
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE9 References Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015).The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons. Burns, P. (2010).Entrepreneurship and small business: Start-up.Growth and Maturity. Palgrave Macmillan. Fasken.(2017).TheCanadianbusinessandinvestmentenvironment. https://www.fasken.com/en/knowledge/doing-business-canada/2019/06/the-canadian- business-investment-environment/ Görener, A., Toker, K., & Ulucay, K. (2012). Application of combined SWOT and AHP: a case study for a manufacturing firm.Procedia-social and behavioral sciences,58, 1525- 1534. Hokkanen.G. (2019).Top 10 challenges of doing business in Canada.https://www.tmf- group.com/en/news-insights/articles/2018/may/top-10-challenges-of-doing-business-in- canada/ Kajanus, M., Leskinen, P., Kurttila, M., & Kangas, J. (2012). Making use of MCDS methods in SWOT analysis—Lessons learned in strategic natural resources management.Forest Policy and Economics,20, 1-9. Kortmann, S. (2012).The relationship between organizational structure and organizational ambidexterity: A comparison between manufacturing and service firms. Springer Science & Business Media. McGrath, J., & Bates, B. (2017).The Little Book of Big Management Theories:... and how to use them. Pearson UK. Nandonde, F. A. (2019). A PESTLE analysis of international retailing in the East African Community.Global Business and Organizational Excellence,38(4), 54-61. Perera, R. (2017).The PESTLE analysis. Nerdynaut
BUSINESS STRATEGIES OF THE ATLANTIC SUPERSTORE10 Santander.B.(2019).Canada:Economicandpoliticaloutline. https://santandertrade.com/en/portal/analyse-markets/canada/economic-political-outline Ward,S.(2016).SettingUpandDoingBusinessinCanada. https://www.thebalancesmb.com/do-business-in-canada-2947118