Home Retail Group Strategic Analysis

This assignment requires a comprehensive strategic analysis of Home Retail Group. Students must apply analytical tools such as PESTLE analysis, the Ansoff matrix, and the VRIO framework to evaluate the company's external environment, growth strategies, and internal resources. The analysis should consider factors like market trends, competitive landscape, and the company's strengths, weaknesses, opportunities, and threats.

STRATEGIC MANAGEMENT

Table of Contents
Introduction..........................................................................................................................................3
Q.1Corporate profile of organisation...............................................................................................3
Q. 2 Strategic Analysis.....................................................................................................................4
Q. 3 Strategic Purpose.....................................................................................................................7
Q. 4 Strategy Options For Growth...................................................................................................8
Q. 5 Strategy Implementation and control.....................................................................................11
Q.6 Essential Conditions................................................................................................................12
CONCLUSION..................................................................................................................................13
References..........................................................................................................................................14

Illustration Index
Illustration 1: PESTLE analysis...........................................................................................................6
Illustration 2: Anshoff matrix.............................................................................................................12

INTRODUCTION
Strategic management is administration of corporation resources to achieve its goals and
objectives in the market. It is associated with setting objectives, measuring the environment
internal organization. Further, it also evaluates organizational strategies to measure its effectiveness
in the business operations (Strategic Management, 2014). Home retail group is a retail organisation
which provides optimistic products and services to its consumers in the United Kingdom. The
present report explains environmental analysis which helps in developing strategic objectives of
company. The report represents vision as well as core current values to develop proper strategies in
Home retail group. Further, it describes strategic options for growth and setting targets for next
three years in United Kingdom. It explains the strategic implementation of selected plan in the
Home retail group organisation. In addition to this, it defines critical conditions which help to
achieve desired outcomes of firm in the market.
Q.1Corporate profile of organisation
Home retail group is a parent organisation of Argos and Habitat in United Kingdom.
Enterprise was founded in the year 2006 and the head quarter of this corporation is in Milton
Keynes, Britain. Company works in retail sector which provides better products and services to its
customers in UK (About us, 2016).
Market relationships: Market relationship between consumers and Home retail group is very good
in the market. Management of the organisation use market research, proper targeting as well as
segmentation strategy to attract consumers which help in increasing brand value in retail industry
of UK. In addition to this, Effective marketing relationship also helps the Home retail group to
increase frequency of consumers at store.
Competitive positioning: Competitive positioning of Home retail group is good in Britain.
Organisation is categorised under top ten retail organisations in the nation (Hill, Jones and
Schilling, 2014). Further, firm offers effective retail products and services to its consumers which
contribute effectively in achieving better competitive positioning in the United Kingdom. Further,
Competitive positioning helps the management of organisation to increase its revenues in the retail
sector.
Scope and scale of the business: Scope and scale of business of Home retail group is effective due
to better working practices in the retail industry of UK. These factors help the firm to expand its
business nationally and globally in the nation. In addition to this, they also help Home retail group
to develop optimistic strategies which aid in increasing its scope and scale of business in the
country.

Number of employees: Management of this corporation has 30000 employees who manage retail
operations and it has about 840 retail stores in the United Kingdom (About us, 2016). These staff
members contribute effective role for Home retail group to increase its sales and revenues in the
nation. In addition to this, organisation try to increase its staff for the further expansion in new
areas.
Key financial results: Financial results indicate effective growth of Home retail group as compare
to previous years in the United Kingdom.
 Sales of organisation are 5474, 5663 and 5710 millions in 2013, 2014 and 2015 in the
respective years
 Profit before tax of Home retail group are 91, 115 and 132 millions in 2013, 2014 and 2015
in the respective years
 EPS (Earning per share) of corporation are 7.7, 10.4 and 13 pence in 2013, 2014 and 2015 in
the respective years (Annual Report and Financial Statements 2015, 2015).
Significant milestone achieved: Home retail group is a leading organisation in retail sector of UK.
Further, the company has created a positive image and brand values in front of consumers in the
retail sector of Britain. In addition to this, organisation has sold home base to Australian
conglomerate Wesfarmers for 340 million dollars.
Q. 2 Strategic Analysis
Management of Home retail group can use PESTLE and SWOT analysis to measure the
internal and external environment.
PESTLE analysis:
It is used to analyse external environment of market which help to make effective decisions
as per the current condition of UK. It is described below in the paragraph.

(Source: Hitt, Ireland and Hoskisson, 2012)
Political and legal: Current political aspects are supportive for the organisation in United Kingdom
(Hitt, Ireland and Hoskisson, 2012). For example, political aspects like Tax regulations, government
stability, operational laws as well as reduced corruption levels help the Home retail group to
manage its retail operations effectively. In addition to this, legal factors like taxation along with
regulatory bodies support the firm to manage its legal operations in United Kingdom. On the other
side, health and safety rules and regulations of staff members and employment polices of UK are
very strict which is increased the expenses of Home retail group in the market. Further, it also
creates complexities for organisation to manage its retail operations.
Economic: Economic condition of United Kingdom is effective which provides huge reliability to
increase growth of the organisation (Wheelen and Hunger, 2011). For example, GDP (Gross
domestic product), GNP (Gross national product) as well as inflation rate are supportive which
contribute effective role for Homer retail group to improve its market share, sales of retail products
as well as profit in the retail industry of UK.
Social: Social aspects are effective factors which help in expanding the business in United
Kingdom. For example, life style, trend as well as income of people are higher than any other
developing country in the world. Further, this thing increases spending power of people which help
the organization to increase its sales of retail products in the market. Management of Home retail
group conduct market research to identify needs of people in a regular time intervals (Frynas and
Mellahi, 2015). So social factors help the firm to enhance its market share by fulfilling
requirements and needs of consumers of Home retail group in the nation.
Technological: Technological factors of nation are supportive for the organisation to manage its
technical operations which assists in increasing its performance and efficiency in the market of UK
Illustration 1: PESTLE analysis

(Eden and Ackermann, 2013). For example, effective communication facilities as well as internet
technologies help in managing business activities of Home retail group in the United Kingdom. In
addition to this, these technological factors contribute effective role for organisation to increase its
efficiency in the market.
Environment: Generally, environmental factors of United Kingdom are very strict for the
organisation. Further, they also oblige firm to follow the rules and regulation of climate safety in
the nation. Government of UK prohibit the organisation to sell those products which are harmful for
environment. They also suggest corporation to perform social activities like plantation of trees as
well as Marathon which contribute effectively to increase awareness about the environment safety
in the mind of people. For example, management of Home retail group spend some percentage of its
profit on the public welfare as corporate social responsibilities (CSR) activities. These strategy can
help the Government of Britain to keep the climate clean. However, they reduce net profit of Home
retail group which creates issues to manage its retail operations in United Kingdom (Bettis and
et.al., 2015).
SWOT analysis
SWOT analysis helps the firm to analyse its strength, weakness, opportunities as well as
threats in the nation.
Strength Weakness
 Appropriate market image of organisation
in the retail market of United Kingdom.
 Range of 60000 retail products in retail
store of Home retail group (Boyd and
et.al., 2012.).
 Core competencies of organisation are
effective in the retail sector of UK.
 Effective market share of Home retail
group in the country.
 Less retail store in rural and urban areas
as compare to its competitors like
ASDA and TESCO.
 Internal management of staff is as weak
as compare to its rivals in the United
Kingdom.
Opportunities Threats
 Management of Home retail group can
expand its retail business in many
 Changes in rules and regulations of
health and safety and employment

countries of the world.
 It can also enter health care sector of
United Kingdom due to its positive image
in the market (Keupp, Palmié and
Gassman, 2012).
policies in the nation.
 Increasing rate of inflation in the
country.
 Recession is also a threat of Home
retail group in the Britain.
 Strike issues of staff members in the
organisation.
Strategic directions
Strategic directions contribute effective role for management of organisation to reach its
goals and objectives in the nation. In addition to this, Strategic objective are decided on the basis of
SWOT analysis which helps in developing futures strategies of corporation in the nation (Priem, Li
and Carr, 2012).
 To increase 12 percent sales of retail products of Home retail group over next three years in
the nation.
 To enhance the 15 percent profit of organization in the retail market of United Kingdom.
 To increase 5 % market share of retail industry of United Kingdom in the next three years.
 To reach the 4th position of Home retail group out of top ten companies in retail sector of
UK.
 To improve brand value of organisation in the next 3 years (Carlsson, 2015).
Q. 3 Strategic Purpose
Generally mission, vision and current core values of Home retail group do not help to
achieve desired outcome which create problems to manage its business activities in the United
Kingdom. It is described below the paragraph.
Current mission, vision and core values of Home retail group
Vision of corporation
Vision of Home retail group is to develop effective businesses that bring superior value and
comfort to their consumers in the United Kingdom (About us, 2016).
Mission of organisation
Mission of the Home retail group is to achieve leading position by providing effective

quality of products and services to its consumers in retail sector of UK.
Core values of company
 Core values of Home Retail Group’s is to produce long-term values by using effective
leadership skills for convenience of staff members.
 Organisation also provide effective product and services to its consumers in an emerging
digital age in the UK Frynas and Mellahi, 2015).
Justification
Current values, mission as well as vision of the Home retail group do not decided as per
selected strategic objectives in the nation. They do not provide more focus to improve core
competencies of organisation and employees in the retail sector of UK. In addition to this, it creates
problem for corporation to reach its goals and objectives in the retail industry of Britain. Due to
these reasons, Human resource of organisation do not trained and skilled very well due to lack of
training activities at work place which creates problems to increase its core competencies (Hill,
Jones and Schilling, 2014). In addition to this, efficiency and performance of Home retail group
does not improved as comparison of their competitors like ASDA and TESCO in the market of
United Kingdom. They also created mismanagement staff members which produces many issues to
manage retail operations of Home retail group in the nation.
New mission, mission and core values of organisation
Mission of firm
Mission of Home retail group is to create value for customers in order to earn lifetime trust
and loyalty from them.
Vision of corporation
Vision of organization is to serve superior value to the consumers by increasing its core
competency in the respective areas. Corporation want to develop loyal and committed employees
and shareholders to increase its growth of firm by applying effective human resources skills in the
world (Hubbard, Rice and Galvin, 2014).
Core values of Home retail group
 Serving consumers of Britain in a appropriate manner in the retail store of UK.
 Organisation treat customers how they want to be treated in the store.
 Share knowledge as well as experiences to stakeholders in the nation.
 Corporation also encourage people to reduce food waste internationally.

 Supporting people and employees to live better and healthy life (MacIntosh and Maclean,
2014).
 Creating new opportunities for new many young people for better job in the world.
Justification
Generally new mission, vision as well as core values of Home retail group contribute
effectively to increase growth of organisation nationally and internally. Further, they can help the
firm to increase the core competencies of staff members by using effective approaches like on and
off training methods at work place. These approaches can help the Home retail group to increase
efficiency and performance of employees in the nation. In addition to this, they contribute effective
role for organisation to provide better reliability to manage human resources in a appropriate
manner in the nation. Further, New mission, core values and vision can help the management of
Home retail group to increase to retail operations internationally in the world (West, Ford and
Ibrahim, 2015). They can aid to create better relationships to consumers by providing effective
schemes in the retail market. They can help the organisation to achieve better market share as well
as profit by increasing sales of retail products. Further, New mission, core values and vision can aid
to achieve better position by enhancing revenues of Home retail group in the retail sector of United
Kingdom. This way, organisation can complete its goals and objectives in better way (Thopte and
Poldner, 2014).
Q. 4 Strategy Options For Growth
There are many options like Anshoff Matrix and Mintzberg strategies for growth as selected
strategic directions which help Home retail group for its expansion in the next three years.
Mintzberg strategies
It contains 5p's of strategies which is used to develop new business strategy for organization.
Further, it contribute effective role for Home retail group to increase its growth and development in
the nation.
Plan: Planning is the necessary part which can help to complete decided strategic objectives in a
appropriate manner within organisation (Wan, Chen and Yiu, 2015). For example, management of
Home retail group can use brainstorming process to develop growth strategies which can help to
complete selected strategic objectives in the retail industry within three years.
Ploy: It is important strategy for growth of Home retail group in the United Kingdom. In this
process, management of organisation can perform effective strategy to take market share of
competitors. For example, Home retail group can patent its product and services which can help to
increase its growth as per selected strategic objectives in the retail market.

Pattern: In this process, strategies are selected on the basis of past behaviour of Home retail group
in the retail sector of United Kingdom (Sandberg and Mena, 2014). For example, organisation can
develop strategies on the base its previous performance and efficiency in the retail industry. This
method can contribute effective role for corporation to increase its growth as per chosen strategic
directions within three years.
Position: It is another strategy to define the position of enterprise by analysing proper environment
in the market. For example, position strategy can help the Home retail group to develop competitive
strategies in the market. In addition to this, it can help the organisation to take rival advantages as
per selected strategic directions in the retail sector.
Perspective: It is highly dependent on culture which helps the firm by providing shapes to its
activities in the market (Mustak, 2014). It supports the corporation to meet out chosen strategic
directions within three years in the retail sector of UK. For example, it can help the Home retail
group to develop innovative products and services and encourage risk taking capacity. Further, it
can also aid the organisation to enhance its growth by using these strategy in the market.
Anshoff matrix
Ansoff Matrix is a strategic planning tool which offers appropriate base to aid the staff
members, general managers as well as marketers to devise better strategies for future growth of
organisation in the nation. Further, it can help the Home retail group to increase its growth
nationally within three years (Marek, 2014). Anshoff matrix is divided in four parts product such as
market development, market penetration as well as diversification. It is described below in the
paragraph.

(Source: Egbeleke, 2014)
Market penetration: It is a useful strategy for organisation to release exiting products in the same
market. Further, Home retail group can consider lower price strategy in order to increase sales of its
products which can contribute effectively to increase its growth as per decided strategic directions
in the retail industry within three years (Egbeleke, 2014). In addition to this, market penetration can
also help the organisation to consolidate its position in the market.
Market development: In this method, management of corporation release same or slightly modified
products and services into another market or country. It can aid the Home retail group to complete
its objectives and goals in the other developing country within three years. So Market development
strategy can contribute effective role for corporation to increase its growth in the other country
(Borland and et.al., 2014). This way, Home retail group organisation can increase its sales in the
retail market.
Product development: It is important strategy for organisation which helps to increase its growth as
per designed objectives within three years. Generally, management of Home retail group can help
to innovate new products and services in the exiting market. In addition to this, product
development can also contribute effective role for organisation to enhance its growth in same retail
market. Further, it can help the enterprise to achieve effective market share in the retail sector of
UK within three years (Cavender and Kincade, 2015).
Diversification: It is different type of strategy for the Home retail group which helps to increase
Illustration 2: Anshoff matrix

growth in global market share as per decided objectives. Organisation can release another products
and services different market which can help to increase its growth in the other nations.
Diversification strategy can also aid the home retail group to complete strategic objectives within
three years.
Q. 5 Strategy Implementation and control
Gantt chart contribute effective role for management of Home retail group to implement its
selected objectives within three years in the nation. It is described below the diagram
Activities Time duration (1 cell = 3 months)
1 2 3 4 5 6
Planning of new
Strategy
Selection of process
Management of
resources
Implementation of
strategies
Controlling of process
Evaluation of strategy
As per above diagram, implementation activities are divided planning of new strategy,
selection of process, management of resources, implementation of strategies, controlling the process
an as well as evaluation of strategy in the market. This execution process can help the effectively to
increase growth of organisation in the next three years. Generally all activities are divided to
execute process in appropriate manner.
Planning of strategy: Management of Home retail group can use brainstorming process by
arranging meeting of organisational managers and employees. This process can help to develop
better plan which can aid to enhance growth of organisation as per chosen strategic directions in the
United Kingdom (Hill, Jones and Schilling, 2014). Home retail group can choose team of skilful of
employees in this process. In addition to this, planing of strategy will consume at least three month

to complete in the Home retail group.
Selection process: Organisation can select many process which can contribute effectively to
increase its growth in the nation. Management of Home retail group should use Mintzberg strategies
to make its strong plans with help of brainstorming process. These strategies can help the firm to
achieve its goals and objectives in appropriate manner within market. Further, they can give
reliability for Home retail group to gain effective profit and revenues from consumers in the retail
sector of United Kingdom. In addition to this, management of organization should also consider
SWOT, as well as PESTLE analysis (Priem, Li and Carr, 2012). These strategies can contribute
effective role for Home retail group to analyse the external and internal environment of UK.
Further, they can aid the enterprise to complete its goals as per decided objectives in the market.
Mainly, selection process activity will take at least three to complete in the corporation.
Management of Resources: Management of Home retail group need many human and technical
resources to implement these activities in the nation. Firm can be needed various resources like
general employees, managers, ERP (Enterprises resources planning) and CRM (Consumer
relationship management) software to manage its business activities at work place (Hitt, Ireland and
Hoskisson, 2012).
Implementation and control of activities: Then after, organisation can implement its decided
strategies with contribution of human and other resources in United Kingdom. It can control these
activities to reduce the mistakes as possible in the retail market of UK. Other wise, management of
Home retail group can face many issues during the execution of these activities in the retail industry
of UK (Eden, and Ackermann, 2013). In addition to this, implementation and controlling activity
will take 3 months respectively.
Evaluating of process: After implementation, organization should make inspection team to evaluate
whole process to find out level of success. Selected team of Home retail group can evaluate this
process through taking feedback from employees at wok place. In addition to this, organisation can
analyse the performance and efficiency of its strategies through consumers with help of CRM
software in United Kingdom. Further, Evaluation activities will also consume 3 months in the
organisation.
Q.6 Essential Conditions
There are many essential conditions like availability of resource, optimistic economy level
as well as effective Human resources for organization which are required to achieve its valid
outcome in the retail industry of UK.
Availability of resources: According to Bettis and et.al.,(2015), Home retail group requires many

type of resources like financial as well as technological resources to manage its retail operations in
the retail industry of United Kingdom. So this thing helps the organisation to spend money to
achieve better profit in the nation. In addition to this, it aid the firm corporation to gain valid
outcome in the nation (Bettis and et.al., 2015). However, some time, Home retail group can face
problems due to shortage of monetary funds in the market (Boyd and et.al., 2012).
Optimistic economy level: As per Keupp, Palmié and Gassmann (2012), optimistic economical
conditions aid the Home retail group to reduce its complexities in the nation. They help the
organization by maintaining supply and demand of retail products and services in the UK. In
addition tom this, better economy level contribute effectively to achieve optimistic results in the
country (Keupp, Palmié and Gassmann, 2012). On the other side, fluctuation of currency, as well as
increased inflation rate affect outcome of Home retail group which create negative impact on its
profit in the United Kingdom (Carlsson, 2015).
Effective Human resources: According to Frynas and Mellahi (2015), skilled and talented
employees as well as managers of Home retail group help in developing appropriate strategies in
order to gain better output in the retail industry of United Kingdom (Frynas and Mellahi, 2015).
Hubbard, Rice and Galvin (2014), It aids in understanding requirements and needs of the
stakeholders which increases chances of success in order to achieve effective outcomes from the
retail market of UK (Hubbard, Rice and Galvin, 2014). However, sometime, management of Home
retail group do not recruit and select effective employees due to shortage of monetary funds which
creates problems to manage its retail operations in the United Kingdom (West, Ford and Ibrahim,
2015).
CONCLUSION
From the report, it is found that market relationship, competitive positioning as well as
scope and scale of business help to know about current status of Home retail group in the Britain.
PESTLE, SWOT analysis aid the organisation to know the internal and external environment of
retail industry. Further, they also help to develop strategic objectives of corporation in the nation.
New mission, mission and core values of Home retail group help to increase its market share and
growth in the United Kingdom. In addition to this, Mintzberg model provide effective guidance to
select proper strategies for appropriate growth in the United Kingdom. Strategic implementation
process aids the Home retail group to execute its activities in a appropriate manner within retail
industry of UK. It can be concluded that essential conditions contribute effective role for
organisation to manage its retail operations in a better way.

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Online
About us, 2016. [Online]. Available Through:<https://www.homeretailgroup.com/about-us/>.
[Accessed on 3rd March 2016].
Annual Report and Financial Statements 2015., 2015. [Pdf]. Available
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eport_and_financial_statements_2015.pdf>. [Accessed on 3rd March 2016].
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