The Relationship Between Business Strategy, Accounting, and Performance

This assignment revolves around the relationship between business strategy, accounting, and performance in various studies and research papers. It highlights the importance of aligning business strategy with accounting practices for optimal organizational performance. The assignment also touches upon Porter's Generic Strategy and PESTEL analysis as essential tools for strategic management. Students seeking help with this topic can find detailed solutions and explanations on Desklib.

Business strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Waitrose mission, vision, goals, core competencies and objectives.....................................2
1.2 Different factors that are considered when implementing strategic plan .............................3
1.3 Effectiveness of techniques and tools in developing business plans of strategic.................3
TASK 2............................................................................................................................................4
2.1 Strategic positioning of a Waitrose by carrying out their internal audit...............................4
2.2 Environmental audit of Waitrose..........................................................................................5
2.3 Importances of stakeholders analysis when implementing innovative strategy...................6
2.4 New strategy of Waitrose .....................................................................................................7
TASK 3............................................................................................................................................9
3.1 Appropriateness of alternative strategy.................................................................................9
3.2 Justification of strategy selection .........................................................................................9
TASK 4..........................................................................................................................................10
4.1 Duties of an individuals who are charged with scheme formulations................................10
4.2 Necessary and essentials resources required in implementing new strategy.....................10
4.3 Contributes of SMART objectives to strategy formulation achievement in a Waitrose.....11
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Business strategy is identified as a best approach that enable an enterprise in order to
attain long as well as short term goals & objectives. It is also determined as the process of
evaluating objectives, mission, vision and goals of the business organisation in a systematic
manner. It is known as vital components because without a plan company cannot run their
business activities and functions successfully. Business strategy is implement by the upper and
middle level administration. It is very essential part of the organisation because it will support in
maximising the business performances (AlsudiriAl and et. al., 2013). Business strategy is make
healthier and long-lasting relationship with their buyers which contributes in generating their
revenue.
In this report chosen organisation is Waitrose, a supermarket in British organisation in
United Kingdom, Bracknell and Berkshire. They mainly deal with food products with the aim of
providing healthy products to the customers. It was founded in 1904 by Wallace Waite, David
Taylor and Arthur Rose etc. There are approx. 91,000 employees working with it and their
purpose is to achieving high growth and success of company in a short duration. They mainly
have 353 stores in all around the world and their annual revenue is £5,400.4 million it is better
for the business in achieve long term benefits. They also produce other food products such as
vegetables and fruits, in this business mainly attract large number of the buyers in order to
provide discount on goods. Rank of the company across the UK is 6th which is good in regards to
successfully increase their position in national and international market. They also deal with
online shopping and supermarket services in order to attract large numbers of the clients on
particular products or services. Main aim of the business entity is to give innovative products and
creative services to their potential and targets customers. financial conditions of the company is
very better in comparison to organisations (Althonayan and Sharif, 2010). But sometime they
face various issues related to their competitors, Waitrose has some main competitors such as
TESCO, MORRISONS and SAINSBURY PLC etc. In this way firm face different difficulties in
their sales as well as revenues. They mainly target different age groups who are waiting and
purchase better quality products.
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TASK 1
1.1 Waitrose mission, vision, goals, core competencies and objectives
Strategic planning (SP): It is defined as a process which analyses the enterprises directions,
resource of allocation, strategy and direction for attaining the desire objectives. In order to
identifying the directions of the organisation which is required to know actual business
situation. It includes several important aspects to prepare all planning in an essential manner.
Mission: Waitrose mission statement is defines as a clear picture of companies objectives in
order to inspire their workers to work with each other as a group (Burlton, 2010). It will inform
the strategic planning in order to make value for their potentials and target customers, to earn
loyalty and expand their share in market. “Mission is to provide quality products to their
customers”
Vision: It is defined as a future outlook that support in regards to analysis potentials growth,
development and benefits of the business. It will also inform the strategic planning; to adopt their
unique services in globally, to be an innovation organisation, growth business and generally
valued by the buyers, shareholders and staff etc.
Goals & Objectives (G&O): With the help of this, company desire to attain goals and objectives
within a time duration. It will refer as a short as well as long term goals and plans. There are
main goals and objectives that change strategic planning such as; successful retailer, grow and
success the core entity and develop all retailing services in a accurate manner. “Main objective of
company is to achieve long term objectives and goals in limited time period.”
Core Competencies: It is identified as a quality and special knowledge that support in order to
make firm exceptional between different challengers (Campbell, 2011). It assists to generate a
better brand picture for clients. This is also inform the SP that are identify retail network which
support in respect to attains its main and core purpose in a successful way. “Company have
effective logistics support system at minimum operational cost”.
1.2 Different factors that are considered when implementing strategic plan
Business strategy is very essential part of the each and every organisation which play
vital role in formulating plan. With the support of this, company attain their objectives and goals
in an easy way. Business environment considers some factors as well as problem which can
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affect on working activity of Waitrose. It is significant and necessary in order to identify all
factors when strategic plan formulated are determined in detailed:
Future Targets: An organisation can make impressive business strategy which is essential in
regards to decide its objectives, goals, mission and vision successfully.
Actual situation of market: It is another significant factor which important to determine current
condition of market. According to the recent trends, Waitrose should improve efficient plan of
action.
Buyers: One of the main factor is customers behaviour which is required to evaluate in an
effective way (Casadesus and et. al., 2010). As per the client’s needs and demands, company
should give better service quality and products to their potentials and target clients.
Competitors: With the use of this factor, business organisation can analysis their challengers, it
must be included in implementing as well as formulating planning. In this, company never attain
success and growth without knowing the competitor’s nature in market. Waitrose is capable in
respect to analysis its challenger’s weakness and strengths as well as find out several mode by
which rivals meet the buyers needs and requirements.
1.3 Effectiveness of techniques and tools in developing business plans of strategic
In the organisation, there are different kind of tools and techniques which are essential in
developing business strategic planning. With the use of this aspects, company can achieves there
long term objectives and goals. BCG and SPACE matrix are used in this way:
BCG: With the use of this approach, company can identify their situations related to the market.
In this they mainly face four issues which are defined in detailed form are as follows:
Stars: In this situation, business entity had high market share as well as growth. So that, they
earn large revenues in comparison to another company (Cinquin and Tenucci, 2010). Waitrose
does not required in order to carry promotional activities which supports the business in order to
attract large number of the customers towards products and services.
Cash Cows: In this conditions, organisation face low growth and high share in market.
Therefore, they invest their additional capital in this aspects, so that they can attain higher
success.
Dogs: It is define the business situation in market, in this they have low growth rate and less
market share also in comparison to another entity. But organisation is not capable to earn large
amount of profits.
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Question mark: In this way, company face low market share & high growth situation. They also
face uncertainty because few share reduce the Waitrose performance. But sometime it have some
positive points such as, with the use of this company can introduce their innovative products in
market.
SPACE: It is defines as strategic position and action evaluation matrix which is very essential in
order to implementing strategic plan (Elhamma and Zhang, 2013). It is very useful and beneficial
in order to review & develop a business strategy. This aspects includes two factors such as
internal i.e. financial & competitive position and external i.e. stability and industrial strength etc.
Internal:
Financial: This factors covers different points such as return on investments, liquidity,
leverages, cash flow working capital and inventory turnover of the company. It is very essential
and important factor of business performances and profitability.
Competitive: In this main aspects are considers i.e. product quality, market share, buyers loyalty,
product life cycle capacity utilizations, monitor over distributors and technology which is
identify the business positions in strategy planning.
External:
Stability: With the use of this factor business can change their technology, inflation rate, demand
variability, competing product price and competitive pressures etc. All there are important in
developing business strategy planning.
Industrial: In this factors can identify their profit potentials, extent leverage, resources &
capacity utilizations and product in order to rising BS planning.
TASK 2
2.1 Strategic positioning of a Waitrose by carrying out their internal audit
Strategic Positioning: It is defines as a company action doing unalike activities and
functions then its challengers (Kalyani and Sahoo, 2011). With the help of this, business can
provide better products and services to their clients in an effective manner.
SWOT Analysis: This approach supports in order to identify the opportunities, threats ,weakness,
and strengths etc.
Strengths Weakness
 Maximising and increasing market  Required for across the nation coverage
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growth & share
 Online facilities
 Strong Unique selling point
 Supply chain ownership
 Healthy and better financial condition
in UK market.
 Geographic classification is not better
 High product price in comparison to
another organisation.
Opportunities Threats
 Carbon offset and food product miles
 organic, green and ethical items
 To capturing large number of market
share in different times. Higher
competitive position in market.
 Failure to explain there position on free
tea and coffee strategy.
 Poor market and economic condition in
United kingdom or United States.
 Home delivery as well as fostering
online facilities.
2.2 Environmental audit of Waitrose
PESTLE Analysis: With the use of this factors in order to determine external position of
the company (PESTEL Analysis, 2015). This aspects includes some points which are determine
in details are as follows:
PESTLE Analysis Description
Political Waitrose operates their business activities and
functions worldwide (Köseoglu, 2013). As an
output, this factors influences their operations.
In this some points are covers such as
government policies, law and tax rate etc. In
this company offers different possibility their
employees.
Economic Profit price and product demands are includes
in this factor. That impact on business
operations in negative and positive ways.
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Diversification as well as internationalization
are essential reasons for business success.
Social Social modifications are important matters for
enterprise. According to social variation,
company can give non food products to their
clients (Matzle, 2013). In this consumer
attitudes and behaviours effects the activities
and functions of enterprise.
Technological Company use advanced technology in their
business. With the use of innovative
technology, firm can provides home delivery
and online purchasing facilities to its buyers.
Main aim of the organisation is to fulfil their
buyers satisfaction. In this they can reduce
their additional and labour cost.
Environmental This factors will be impacts the firm position.
Waitrose is concerned with CSR in order to
fulfil its stakeholders. In this they can decrease
their wastage products in regards to save
surrounding.
Legal In this factors, organisation performance
directly impacted by the legislatives and
policies. All rules, regulation and policies are
framed by the legal authority.
2.3 Importances of stakeholders analysis when implementing innovative strategy
Stakeholders analysis identify as a position, interest levels, influences, management
strategy and expectation of every person when implementing innovative scheme (Meskendahl,
2010). They influences as well as monitor all matters and issues which are hold in organisations.
It addressees and includes how duties are classified between different peoples in different
segments.
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Organisational stakeholders: They are known as internal person of the company such as
employees, investors and owners in order to increase the income level which is make by the
business. In this investors are mainly endowed in regards to increasing profits. Workers wants
and needs to receive basic salaries.
Stakeholders analysis is needed in order to manage relationship with other persons to
generate a help system for task (Mitra and Bhardwaj, 2010). It is very beneficial and valuable for
the organisation to formulating and implementing innovative strategy in an effective manner.
There are several importances which are as follows:
(Source: Analysis of stakeholder, 2017)
 Get essential opinions and views from neutral.
 Acquire help from powerful person
 Realize their nature and existence by making effective communication with others
 Able in order to estimate individual response about their entities.
2.4 New strategy of Waitrose
Innovative strategies which is very beneficial and essential for the enterprise in order to
attain higher growth, development and success of them (Porter's Generic Strategy Assignment
Help, 2015). Waitrose adopt Porter's Generic strategy, it is valuable part of the company to
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Illustration 1: Stakeholder Analysis

successfully grow in market. There are four aspects which are covers in this elements which are
analysed in detailed:
Cost Leadership: With the use of this, an organisation can increase their sales and revenues. So
it is very beneficial for them in maximising their productivity level as well as profitable ratio
(Schaltegge and Wagner, 2011). In this they can decrease their wastage product cost.
Cost Differentiation: In this business can develop their innovative activities and functions which
is required in success of enterprise. Waitorse has various range products, that they produce their
customers in order to fulfil their satisfaction.
Illustration 2: Potter's Generic Strategy
(Source: Potter's Generic Strategy, 2015)
Cost focus: In this way, firm identify the buyers needs and wants towards products or services.
In this they can attract large number of clients.
Differentiation focus: In this company focuses of their target and potentials customers who can
produce different products. So it is very important for them in increase their sales.
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TASK 3
3.1 Appropriateness of alternative strategy
There are different number of strategies which is used by the Waitrose in order to
formulate plan in an effective manner. Business focuses on formulating business strategic
planning in regards to attain success and growth of the firm.
Substantive growth strategy: With the use of this, company expand their functions and activities
in various ways such as horizontal as well as vertical. Business can get to merge their operations
which is very useful and beneficial in maximising their sales. In this, business entity introduce
their additional services to customers.
Limited growth: In this, firm used various tactics in order to attaining long term goals and
objectives (Slate and et. al., 2011). There are some factors such as product development,
innovation and penetration are essential introduce their additional online and home delivery
services.
Retrenchment: It is very important and effective tools which is essential for the manager in
order to analysis effectiveness of the organisation. It is very beneficial for the Waitrose, because
with the use of this they reduce their unnecessary cost. It is classified in several forms such as
cost& assets and revenues generations.
3.2 Justification of strategy selection
Waitrose is a retail store and they use Substantive growth strategy in their business
activities and functions. With the help of this, they can easily attract large number of the buyers
in an effective or efficient manner. So it is very beneficial and valuable part of the company to
maximise their sales and revenues in an essential manner.
Business organisation tries to expand their business activities as well as function to
achieving long as well as short term goals and objectives. One of the main purpose of company
is to give quality products in order to accomplish objectives and goals (Teece, 2010). This
strategy help organisation in offering food and non-food products. With the support of this, they
can expand their upcoming schemes that assist to maximise sales.
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TASK 4
4.1 Duties of an individuals who are charged with scheme formulations
There are some person who can implement business strategies in an essential manner.
Business organisation wants and needs to improve growth and success in marketplace. Several
people are that they have some roles and responsibility in formulating strategy in an effective
manner.
Managers: They are main person in the business that play essential role in formulating strategy
in a proper way. This persons are capable to develop all scheme in an efficient way (Tsamenyi
and et. al., 2011). They have some knowledge and skills which can support in formulate all plan
of action.
Leaders: Waitrose is a retail business entity with the aim of giving quality products and creative
services to its customers. In they have ability to motivate and guilds their subordinates in order to
implement business strategies as well as achieve long term goals and objectives.
Employees: They are know as main person and asset of the entity which play essential role in the
organisation. They have better knowledge and skills in order to achieve long term success and
growth in an effective way.
4.2 Necessary and essentials resources required in implementing new strategy
There are different resources which are needed in implement new strategy in an essential
ways. All factors or resources are defined in detailed are as follows:
Financial resources: It is define the financial capabilities of the organisation in order to manage
finance. All funds and capital are required in formulate innovative strategy in an effective or
efficient manner. Examples: Waitrose make effective plan to formulate plan of action which are
useful for company. In this raising and managing of the funds activities are considers.
Technical resources: It is main and essential part of the company to easily implement new
strategies (Bednall and Valos, 2010). In this business use innovative and advanced technology in
the services and goods productions. It will needs unique technology for manufacturing all items
in an effective way.
Raw materials: It is also very essential and necessary resources for manufacturing all items. In
this business entity, proper raw materials never present in an accurate quantity. It will influence
the process of manufacturing.
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4.3 Contributes of SMART objectives to strategy formulation achievement in a Waitrose
With the use of this approach, business organisation can fix their goals and targets in an
essential manner (Woerner and Wixom, 2015). Waitrose that must particular as well as specific
in their nature. They are capable to measure with implanted criteria in an effective manner. That
is define as a achievable in time period which is realistic.
Significance of SMART targets:
 All targets are never specific, so it is define what they needed and wanted in order to
attain then whole efforts for the situation of haphazard.
 Business objectives are never measurable and evaluable in giving with the all formed
targets. It is never possible in regards to determine ant leakage.
 If Waitrose fix their desire targets and objectives that is not countable in its nature. So
that they can achieve this in different areas. From the same they essentially set their
objectives which can be achieved in an effective manner.
 Targets and objectives of the entity is define as imaginative, which is never possible in
regards to achieve as fanciful things which are vague. So it is determine as realistic
target which can achieved.
 Each and every thins are identify as a limitation of time it is known as time bounded
objectives which is achieved by the Waitrose.
CONCLUSION
As per the above mentioned report, it can be concluded that business strategies is very
essential part of the organisation in order to achieve success and growth of the enterprise. There
are different kind of tools and technique's which are used by the company in an effective manner.
PESTLE and SWOT analysis of business entity which is identify the internal and external
position of the firm in marketplace. Enterprise use Porter's Generic strategies in order to
implement new business-strategy planning. In this way various sources are required such as
financial, raw material and technical which is needed by the firm in successfully formulate
strategy. SMART objectives of the organisation which is realistic, measurable, time bounded and
specific.
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REFERENCES
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Online
Porter's Generic Strategy Assignment Help. 2017. [Online]. Available Through:
<http://www.assignments4u.com/porters-generic-strategy-assignment-help/> .
[Accesses On 6th October 2017].
PESTEL Analysis. 2015. [Online]. Available Through:
<http://www.d.umn.edu/~jvileta/FAQs/pest-pestel.html> . [Accesses On 6th October
2017].
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