This assignment focuses on understanding the core components of business strategy. It examines how organizations establish goals, analyze their markets, develop competitive advantages, and implement strategies for sustained growth. The discussion emphasizes the importance of measurable, attainable, and realistic targets to ensure successful execution.
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.1 Mission, Vision, goals, objectives and core competencies of an organisation.....................1 1.2 Analysis of the factors that have to be considered while formulating strategic plan............2 1.3 Evaluating effectiveness of two techniques used in developing business strategy...............3 TASK 2............................................................................................................................................5 2.1 Environmental audit of the company....................................................................................5 2.2 Environmental audit of an organisation................................................................................6 2.3 Significance of stakeholder analysis.....................................................................................7 2.4 Presenting a new strategy for a business...............................................................................7 TASK 3............................................................................................................................................8 3.1 Analyse the appropriateness of alternative strategies..........................................................8 3.2 Appropriateness of alternate strategies to organisation........................................................8 TASK 4............................................................................................................................................9 4.1 Assess the roles and responsibilities of personnel in charge of implementing a strategy.....9 4.2 Resource requirement to implement a new strategy.............................................................9 4.3 Contribution of SMART targets to the achievement of the strategy implementation........10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
INTRODUCTION Business strategy is defined as an action plan developed by a company to attain its goals and objectives (Annabi and McGann, 2013). A strategy adopted by the business can be categorised for long and short term. The strategy adopted by the business provides guidelines to management which a business has to follow to achieve goals established by the company. This is termed as a core function undertaken by the management of an organisation where entire focus is on alignment of individual goals to objectives of the organisation. This assignment undertakes business strategy adopted by Waitrose. It is one of the leading retailer carrying out its function in the United Kingdom. Process of strategic planning will be understood and new strategy will be formulated. The various approaches to strategy evaluation and selection will be discussed. At the end, steps while implementing a strategy will be studied in context of chosen organisation. TASK 1 1.1 Mission, Vision, goals, objectives and core competencies of an organisation Waitrose as mentioned earlier cater diverse needs of people through its supermarket chain. This organisation has established a name when it comes to serve nutrient needs of people by UK fresh fruit growers. The production is done in the sustainable manner giving due consideration to each and every factor surrounding. Mission Mission defines the plans formulated by management to fulfil desires and expectations of the stakeholders (Auzair, 2011). It defines the manner in which operations are carried out so that purpose of the company can be fulfilled. The company's efforts are directed to achieve a superior position in the market through adoption of sustainable measures. Vision The vision of Waitrose aims to be a successful business through its people and principles in its own defined manner. Objectives The main objective of this supermarket market chain is to increase their market coverage. Efforts of this organisation are aimed to improve their market share from 3.7% to over 6% in coming 10 years. It is done through increasing number of stores. Goals 1
Goals are the objectives formulated by the company for a shorter duration of time. Goals of Waitrose are to provide value services to customer and increasing digits of sales volume of the company adopting a suitable promotional tool. Core competencies Core competencies are defined to be major strengths of the company achieved through association of knowledge and technological capabilities of an organisation (Boies, Lvina and Martens, 2011). This supermarket chain is known to possess a superior position in market through its food retailing services. The company carry an expertise in food and drink sector and emphasis on freshness quality and value. 1.2 Analysis ofthe factors that have to be considered while formulating strategic plan There are variety of factors which are to be considered while formulating a strategic plan. Management has to ensure that vision of the company is to be attained with the help of strategies developed. The main factors which are to be undertaken while formulating a business plan are as follows: Engagement: Large number of organisation employ a formal strategy planning process to make important decisions. Engagement ensures that employee's opinion and ideas are taken into consideration before formulating a plan so that major problems and issues can manifest. Communication: It is a trend that major strategies developed in an organisation does not conform to organisational vision. It is necessary for a business to have up-down and bottom up approach to make sure that employees are aware of decision being taken by the management (Butler, 2012). It is necessary for a business to conduct surveys to involve inputs of employees in decision making. Innovation: This is another crucial aspect in an organisation. As the major initiatives or decision made by the company are in the sector of product development and innovation. The company should involve innovation to ensure a certain level of success through risk taking initiatives. Project management:It is very necessary for management to thoroughly understand the strategy of the company. The reason for the same is that strategy defines projects which are to be undertaken so that success can be attained. The two factors which are crucial in this domain are employee involvement and commitment. 2
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Culture:Culture of a company undertakes values and beliefs of people working in an organisation. It is necessary that culture of a company supports strategies formulated to ensure certain level of achievement. 1.3 Evaluating effectiveness of two techniques used in developing business strategy The popular techniques while using a strategic planning is BCG matrix. This tool helps in long term strategic planning of the company through consideration of opportunities of growth in terms of products (Köseoglu and et al., 2013). The main four components of Boston Consulting Group Matrix are: Question Marks:The growth of this product is high but lacks in sector of share. The decision regarding investment on these products is pending as investor is unclear with what to do. Flower segment of the company fulfils this sector as company is not sure whether to invest or not. Stars:This is area with high market growth and market share. These products are doing well in the market and possess good opportunities (Campbell, Edgar and Stonehouse, 2011). In terms of Waitrose, organic foods and online shopping are stars as they are doing well and carry a scope of enhancement. Dogs:These are the products with low market share and growth. The products are not doing good in the market and are not earning profits. Entertainment goods comes in this segment as they fail to catch eye of consumer. Cash Cows:Products in this sector carry high market share but lacks in terms of growth. This product now possesses limited opportunities to growth in the market. Frozen uncooked foods and counter sales are cash cows for Waitrose. 3
(Source:BCG growth matrix, 2017) Another tool which is applied during strategic planning is SPACE. It is an approach which takes into consideration strategic positioning and action evaluating of an enterprise (Mehta and Mehta, 2011). Ascertaining of two mentioned factors help an organisation in creating ideal business strategy. The assessment of internal and external environment is to be done so that appropriate business strategy can be designed. Internal Environment: Financial strength and competitive advantage of the company is analysed in this sector. The amount of finance available with the company and market share along with product are taken into consideration while evaluating strategy. External Environment: The various factors in the external environment are analysed. Changes in the market in terms of technology, demand, growth potential and intensity of competition is analysed so as to formulate a strategy for business. 4 Illustration1:BCG Growth matrix
TASK 2 2.1 Environmental audit of the company SWOT is an tool utilised by the business to analyse internal environment of the company (Montgomery, 2011). Strengths, weakness-opportunities and threat of a company are evaluated thoroughly so thatcurrent positioning of business can be ascertained. SWOT analysis for Waitrose is as follows: Strengths ï‚·Brand Recognition ï‚·Quality foods products ï‚·Parent organisation (John lewis)ï‚·Diverse range of products Weaknesses ï‚·Small market share (3%) ï‚·Expensive products ï‚·less number of outlets Opportunities ï‚·Expansion ï‚·Venturing into non-food segments ï‚·Digital expansionï‚·entering into partnerships Threat ï‚·Large competitors such as Tesco and Asda ï‚·Newer firms entering into market ï‚·Availability of cheaper substitutes The brand name and expertise of the company in food segment is its major strengths which can be further utilised by the company for its financial gains. However market share of the company which is confined to 3% is a major weakness. The company have chances to expand over online and offline platforms through entering into partnerships. The new entrant in the market are huge factor which can cause harm to an organisation. The another tool which is employed to analyse the internal and external environment of the company is Ansoff matrix. It defines that business aims to grow its operations through existing products or by launching new products for the market. It mentions strategies which can be adopted by a business to growth in terms of operation or market share. Market Penetration:This strategy is carried out in the existing market with present line of products. The organisation can improve its service and quality to penetrate into existing market of operations (Murthy, 2012). 5
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Product development:This strategy is adopted when a company wishes to develop new products for existing markets. Cited organisation can venture into non-food segment to cater other needs of people in present market. Market development:It is a measure in which new products are launched specifically for newer market (Parnell, 2016). The development of online shopping platforms is an ideal strategy to venture into emerging markets. Diversification:The company can acquire or collaborate with other retailer to launch existing product line-up into new markets. 2.2 Environmental audit of an organisation It is essential to examine various factors in the environment so that appropriate actions and strategies can be adopted. PESTLE is a common tool which is employed by business to conduct environmental audit for an organisation (Scholes, 2015). The various factors which are taken into consideration are: Political factors:GM food and competition commission are two major determinant of political factor of a country. There are a variety of food standardisation practices along with labelling approaches which are to be adhered by an organisation. Economical Factors:The economic does not affect food sector in significant manner. It is basically safe industry from recession. There are a fewer number of players in the market catering needs of people. Social factors:This factor undertakes values and beliefs of consumers. Organic food and convenientfoodshoppingarethemajordeterminantofsocialfactorincontextofan organisation. Technological Factors:The changes in the technology affect the functioning of a business as well. The adoption of latest trends in technology such as EPOS, IT and online shopping help serve customer in efficient manner. legal factors:It is very necessary for a business to examine laws and policies formulated by the government.The strategy planner have to give due attention to employment, health and safety laws which are highly regulated by the government are to be followed by the company. Environmental Factors:These factors are crucial for a business working in food sector. It is necessary for a business to adopt sustainable means of operations by giving emphasis on the climate, level of pollution, weather etc. 6
2.3 Significance of stakeholder analysis Stakeholder are the parties which are influenced by business functioning to a greater extent. The major stakeholders for a business are shareholders, employees, customer and communities surrounding business (Torrent-Sellens, 2015). All these parties play a vital role in affecting business operations. Before formulating a decision it is crucial to take in consideration interest and impact of decision formulated by management. The significance of stakeholder analysis is as follows: Formulating strategies:While developing a strategy it is necessary to give consideration tothestakeholderconcernedwiththatfield.Forinstancebeforeundertakingaproject, expectations and desires of shareholders are given due consideration and consent of the same will be essential before initiation. Marketing strategies are developed keeping customer's desires in mind to achieve a certain level of effectiveness. MotivatingEmployees:Employeesareoneofthemajorstakeholderinbusiness. Understanding and emphasizing on needs and expectations of employee helps in raising a competent workforce. This will ultimately help in optimising production and process of an organisation. Sustainabledevelopment:Anorganisationhavecertainresponsibilitiestowards community in which operations are carried out. It is necessary for a business to adopt sustainable means of development so that ethical responsibilities of a company are fulfilled. 2.4 Presenting a new strategy for a business The strategies are developed keeping in mind mission and vision of the company.It is necessary to evaluate various factors pertaining in an environment along with conducting internal assessment of an organisation. Waitrose is successful in catering food domain of consumers. The expertise of the company in this sector is well appreciated around the United Kingdom. Emphasis of social factors adds to brand value of the company. The company at present possess around 5.1% of the total market. The strategy which is most suitable to this organisation isNew market development.The company's range of quality and fresh product targets upper segment of consumers. Waitrose have paid its full attention to the food and drinks sector and have achieved expertise in the same. This organisation can expand its operation in UK itself as it carries a higher scope of growth. The expansion of operations is done through opening up of more retails 7
stores in the country. The loyal customer in the country will definitely avail the food products from the same. At present, there are 350 stores of Waitrose in Britain. The company can increase number of stores in the country so that better level of profitability can be attained. This mega supermarket chain can also employ technological advancements in its operations through launching online portal through which customers can avail products and services of the company. TASK 3 3.1 Analyse the appropriateness of alternative strategies There are variety of measures through which an organisation can enter into unexplored segments of markets. The alternative strategies to market growth are as follows: Market strategy:It is an planned strategy which aims to deliver company's products and services to new emerging markets. The major approaches which are employed under this are merger (two or more corporations combining), acquisition (availing ownership of company), strategic alliance (sharing of assets and operations of two or more organisations). Substantive growth:The is growth strategy aims to increase the market share of the companythroughdiversificationofproductsandservicesofferedbythecompany(The Advantages of Substantive Growth in Business Strategies,2017). The another measure through which growth can be attained is integration.Integration can be carried out in horizontal and vertical manner. It is referred to as amalgamation of operations of the company either with different or same industry. Limited Growth:This growth measure undertakes strategies such as penetration, market and product development.The efforts are aimed to increase market share of the company through launching a product in the existing or in emerging markets. The promotional tools can be employed to penetrate deeper into existing markets. Retrenchment:The effortsin this are aimed to improve performanceof existing corporation. It can be done through selling business to another party or liquidation of the same. The major approaches which are employed in this are divestment and turnaround strategies. 3.2 Appropriateness of alternate strategies to organisation This supermarket chain aims to be enhance its market share of the company through its specialised operations. The approach which is most suited to this organisation isnew product development. This is another approach through which Waitrose can enhance its market share. 8
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The company possess a certain amount of loyalty in its customer therefore people will also avail the non-food items of this enterprise. This strategy belonging from limited growth approach and is best suitable to circumstances of an organisation. The company is doing well in the market with its existing product line-up. So launching another product in the market will increase its market share and ventures into unexplored segments of market. The emphasis is on designing and creating a new product which caters needs of people in the brand-new manner.This diversification of product line-up will increase market share and ultimately enhancing revenue of the organisation. The development of new products will help company achieve competitive edge in the market. TASK 4 4.1 Assess the roles and responsibilities of personnel in charge of implementing a strategy Right execution of a strategy is crucial as it ensure the successful achievement of goals and objectives. This task of strategy implementation is assigned to a person who looks after the execution process in an organisation. It is necessary for a management to clearly defines roles and responsibilities of a person who in-charge for the same. The personnel responsible needs to prepare a guideline through which strategies can be implemented in an organisation.It is necessary to introduce changes gradually and effectively. He is responsible for keeping records as well. The conform with legal and ethical standards is also ensured by the personnel himself. The task of supervision of activities is handed over to him as well. It is essential to make sure that the work is carried out as per plan and there is no variation between the two. In case of any discrepancies, he is responsible for undertaking corrective measures to make the situation ideal. He will be held accountable for all the actions and results which are incorporated by the strategy. 4.2 Resource requirement to implement a new strategy There is a variety of resources which are required to implement a strategy. This organisation aims to enhance their market share by increasing number of retail outlets of this enterprise. The strategy adopted by the company is market development and there are variety of resources which are required by an organisation to fulfil the same. Some of them are mentioned below: Human resources:This is among vital resource employed by an organisation in fulfilling objectives of an organisation. It undertakes employees which helps in ideal implementation of strategies on to the organisation. The company aims to achieve improved market share by 9
opening up more retail stores. To achieve the same, additional competent human capital will be required with an organisation. Financial resources:It is one of the most crucial resource which is required with an organisation.Toimplementastrategyadequatecapitalisrequiredwithanorganisation (Verbeke,2013).Toopenupnewstoresappropriatefinancewillberequiredwithan organisation.Financecanberaisedthroughequityanddebtmeasurestakenupbyan organisation. Time and material resources:In addition to the financial and human resources, material resources are required to successfully implement the strategy in an organisational context. There are variety of resources such as technology and machineries required to achieve the goals established. It is necessary that all activities are time specified so that operations are achieved with in specified time. 4.3 Contribution of SMART targets to the achievement of the strategy implementation It is an acronym for Specific, measurable, attainable, relevant and time bound targets which are formulated by the company to achieve specified goals. It is necessary to incorporate smart targets to ensure that goals are achieved in an effortless manner. These targets states that goals should be well defined, measurable, agreed, realistic and time limit. The contribution of SMART targets in strategy implementation are: 1.The specific nature of the targets provides a sense of direction to the efforts of employees. 2.The measurable nature of targets help in defining level of achievement and monitoring of performance of people. 3.The targets should be attainable so that it motivates employees to work and to attain the same. 4.The targets established by the organisation should be realistic and should carry certain amount of relevance to the business operations so that employees are more determined to perform the same. 5.Time bound activities motivates an personnel to achieve within defined time. CONCLUSION It can be ascertained from the above report that creating and implementing strategies plays a crucial role as it helps in attaining mission and goals of an organisation in an ideal 10
manner. Every business organisation aims to enhance its market share so that more financial outcomes can be entertained. Before formulating strategies it is necessary to evaluate factors of internal and external environment so that ideal strategy can be formulated. The company can opt for product and market development approaches to sustain in the market for longer duration. The targets established should be measurable, attainable and realistic so that they can be achieved by employee working in an organisation. 11
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REFERENCES Books and Journal Annabi, H. and McGann, S. T., 2013. Social media as the missing link: Connecting communities of practice to business strategy.Journal of Organizational Computing and Electronic Commerce.23(1-2), pp.56-83. Auzair, S., 2011. The effect of business strategy and external environment on management control systems: a study of Malaysian hotels.International Journal of Business and Social Science.2(13). Boies, K., Lvina, E. and Martens, M. L., 2011. Shared leadership and team performance in a business strategy simulation.Journal of Personnel Psychology. Butler, D., 2012.Business development: a guide to small business strategy. Routledge. Campbell, D., Edgar, D. and Stonehouse, G., 2011.Business strategy: an introduction. Palgrave Macmillan. Köseoglu,M.A.andetal.,2013.Linkagesamongbusinessstrategy,uncertaintyand performanceinthehospitalityindustry:Evidencefromanemergingeconomy. International Journal of Hospitality Management.34, pp.81-91. Mehta, C. and Mehta, K., 2011. A Design Space and Business Strategy Exploration Tool for Infrastructure-based Ventures in Developing Communities.International Journal for ServiceLearninginEngineering,HumanitarianEngineeringandSocial Entrepreneurship.6(2), pp.30-57. Montgomery, C. A. ed., 2011.Resource-based and evolutionary theories of the firm: towards a synthesis. Springer Science & Business Media. Murthy, V. P., 2012. Integrating corporate sustainability and strategy for business performance. World Journal of Entrepreneurship, Management and Sustainable Development.8(1), pp.5-17. Parnell, J. A., 2016. A business strategy typology for the new economy: reconceptualization and synthesis.Journal of Behavioral and Applied Management.3(3). Scholes, M. S., 2015.Taxes and business strategy. Prentice Hall. Torrent-Sellens, J., 2015. Knowledge products and network externalities: implications for the business strategy.Journal of the Knowledge Economy.6(1), pp.138-156. Verbeke, A., 2013.International business strategy. Cambridge University Press. Online The Advantages of Substantive Growth in Business Strategies.2017 .[Online]. Available through: <https://bizfluent.com/info-7759598-advantages-substantive-growth-business- strategies.html>. 12