Implementation of Hybrid Strategy at All Levels of Organisation

Ocado, a UK-based online grocery retailer, implemented the Hybrid Strategy to achieve its organisational goals and plans. The strategy involves balancing four perspectives: Financial, Customer, Business, and Learning. This approach helps in recognizing emotional contracting with all staff, which links individual commitment with achievement of organisational goals. The company's financial performance has improved, with a substantial increase in profits from $241 million to $265 million. The quality of service and products have also improved, leading to customer satisfaction. Additionally, the company has transformed its remuneration system and motivates employees for overall organizational success.

Ocado

Part 2:
Root Definition
Ocado is basically aims on fulfilling its customer’s service requirements. All of this can
managed and run by efficient and effective IT department in the company. IT department
need to design good online system and websites, which will help in catering to the needs and
demands of the customers, which are secure and safe for online transactions. Besides they
should also provide fast online service, with other issues regarding confidentiality and data
security (Field, J. M., et.al. 2004).
CATWOE
Customers People who purchase grocery online
Actors Suppliers, Advertisers, Employees, Drivers
Transformation More efficient and timely delivery of orders
World View Will attract people to buy grocery online and save their
valuable time
Owners Various supplies should be persuaded about the value of
coming together with Ocado
Environmental constraints Marketing Budgets, competition in the market
Ocado needs to attract more and more customers, for shopping online. This will require all of
the human resources, such as employees, suppliers, car drivers and others who are working
together, should combine their efforts and create value for their customers. This will help in
attracting more customers who are not using such services for purchasing groceries. Various
people who are working at present with Ocado, should be convinced of the benefits of
combined efforts while keeping all the environmental constraints in check (Castells, M.
2002).

Brainstroming
Low
sales
Less
Stock
Competitors
Rich Picture for Present Situation
Rich Picture for Future Situation
Earlier the company was having problems in providing efficient services, but after according
to the new system it was able to provide effective efficient services. It was also able to
provide most of the orders in time. Ocado maintained better relations with the wholesalers

and suppliers, which resulted in management of good quality services and products to their
customers. This also helped the company to give tough competition to the competitors in the
online retail market. Furthermore Ocado was able to maintain level of stock required to meet
the needs of the customers and thus was able to earn more profits (O'Brien, J. A., et.al.
2006).
Flow Chart (Current)
Figure 1: Flow Chart showing present process of operations in Ocado
At present Ocado is selling products to its customers, by placement of orders by the usage of
user friendly interfaces. The company have operated and developed a totally different
solution for providing groceries which are brought from suppliers and then are directly sent to
the kitchens of the customers. Ocado is running huge warehouses operations, where they
keep all the goods and then picked according to the customers’ orders and then they are
picked and delivered to the customers. The company is based on technology and logistics
skills instead of store based system, which help them to cater to the needs of the customers
(Jonkman, J., et.al. 2009).
Suppliers and
Wholesalers
Centre Fulfilment
Centres Delivery Final Consumer

Flow Chart (Future)
Figure 2: Flow Chart showing future process of Ocado
New platform will be able to provide services which will be tailored to the needs and
requirement so the customers, consisting of other features that are already available to its
customers. Back end will be managed properly to provide better results in the content
management in the website. New platform will help the in managing physical equipment’s.
Ocado will be able to harness the capabilities of the local suppliers and will help enabling
them towards the building of profitable and sustainable online retail business in the local
markets. It will also enable the company to work faster at low risk and in much more cost
effective way. All of this will help the company to stand and improve their retail business in
the market (Ackoff, R. L., et.al. 2005).
Suppliers
Ocado
Supply Chain
Warehouses
Post/
Courier/Pick
Up
Ocado Home
Delivery
Network
Ocado apps
Final
Consumer

Conclusion
Ocado will be able to become better at catering to the needs and requirements of the
customers. While continuing the existing processes and implementation of new one to
enhance the effectiveness of the business will help the company to become stable in the
market. Overall Ocado will be able to solve issues within its system and then becoming a
strong market player in the online retailing business.

References
Ackoff, R. L., et.al. (2005). On purposeful systems: An interdisciplinary analysis of
individual and social behavior as a system of purposeful events. Transaction Publishers.
Jonkman, J., et.al. (2009). Definition of a 5-MW reference wind turbine for offshore system
development. National Renewable Energy Laboratory, Golden, CO, Technical Report No.
NREL/TP-500-38060.
O'Brien, J. A., et.al. (2006). Management information systems. McGraw-Hill Irwin.
Field, J. M., et.al. (2004). Managing quality in the e‐service system: development and
application of a process model. Production and Operations management, 13(4), 291-306.
Castells, M. (2002). The Internet galaxy: Reflections on the Internet, business, and society.
Oxford University Press on Demand.

Part 3:
Implementation of New Strategy
An organisation can be successful only when it is able to find what is that it needed to be
changed and how it should implement in the existing system. Any organisation can formulate
strategies but only the effective implementation of the strategy will lead to success of the
organisation. Essential elements for the implementation of strategy in Ocado are as follows.
Motivational Leadership
In order to implement the Hybrid Strategy, the leaders within Ocado needs to play and
important role in the process. Leaders will have to take responsibility for the achievement of
balanced performance by doing leadership which is value based, personal growth and
planning the change which will also consider the human portion of the organisation.
Managers and leaders will need to will be required to work effectively, so that they can
deliver growth in Ocado (Bourgeois, L. J., & Brodwin, D. R. 1984).
People will look forward to their manager and leaders when Hybrid Strategy will be
implemented in Ocado. Strong leadership will allow Ocado in the translation of the strategy
into the required results, by the engagement of employees of Ocado in this process. Moreover
strategy can be divided into parts for the implementation purpose, so that there is clarity of
intent. Besides this managers need to engage people for driving the strategy into action, and
managing the performance results by efficient leadership will make the difference.
Transforming strategy into actions
This will require a phased approach, which will consist of linking the performance with that
of strategic objectives that have been set by Ocado. Different projects should be designed and
developed for optimisation of individual and departmental activities for the effective

implementation of the Hybrid Strategy. This will require planning, and making a course for
the performance, which will be linked to the projects, departments and individuals (Sigala,
M., et.al. 2001).
The main objective is to enable Ocado to efficiently translate the strategy into actions which
will help in attaining the required results and objectives. Managers in the organisation will be
required to systematically and innovatively to unfold the strategy and bringing it to life, by
the creation of combined plans of actions across the organisation, which will ensure that all
the division and as well as functions are properly aligned with the strategy. It will require the
managers to break the strategy into smaller parts, and thus help the employees in better
understanding of their work for achievement of necessary objectives (Chaffey, D. 2007).
Further, the managers will require working with employees themselves at every stage of
implementation, in order to provide them necessary guidance and tell them the sub projects
and themes of the strategy. Finally outlining the detailed work plans for every department
will render the effective implementation of the strategy in Ocado. Departmental head will be
responsible for handling operations and work in his department, and he will align work of
individual with that of organisation (Smith, D. K., & Tardif, M. 2009).
Performance Management
This will involve creation of capabilities and processes which will help in the achievement of
required results by driving people to work. Ocado needs to maintain the enthusiasm generated
in the planning sessions till the implementation of the strategy. Mangers should start working
and make people start their work for the delivery of new plans for implementation of the
strategy. Each and every person should be involved in the implementation process and their
performance should also be assessed.

For this manager will be required to communicate the intent of the organisation and plans, by
the utilisation of project management techniques which will help in delivering the
transformed agenda. By establishing objectives and plans which ar ealigned with the Hybrid
strategy and continuously assessing the progress and providing the feedback regarding the
performance of the employees will help Ocado, in effective implementation of the strategy.
Management of performance will calls for effective communication of the strategy at all
levels of organisation. Performance of all the employees should be measured in real time, by
the managers. Besides this the managers should recognize emotional contracting with all the
staff, which is significant for linking the commitment of individual with achievement of the
organisational goals and plans (Rapert, M. I., et.al. 2002).
Emotional contracting which is easily overlooked by various organisations may help Ocado,
in achieving what they want to achieve by implementing the Hybrid Strategy. Emotional
contracting will provide and significant link between the people, aspirations, values and the
strategic intent of Ocado (Pearce, J. A., et.al. 1997).
Balance Score Card showing post implementation performance of Ocado
Perspecti
ve
Goal Measure Target Initiative Mileston
es
Accountabil
ity
Resourc
e
Allocati
on
Financial Expansion
and
Growth
Substantial
increase in
profits from
$241 to
$265.
Profit of
300
million.
Enhancem
ent of
design,
safety and
security
features of
the
website.
Cash
equivale
nts have
increased
from
$212
million
to $263
million.
Financial
Managers
$100
million

Custome
r
Improvem
ent in the
quality of
the service
and its
products
Fresh and
quality
products
provided to
customers
Overall
improveme
nt in the
Quality of
customer
service.
Minimisin
g the stock
of products
of bad
quality.
Grocerie
s have
been
recognis
ed as
healthy
and
reliable
by its
customer
s.
Marketing
Department
and Delivery
Service of
Ocado
$80
Million
Business Attract
more
customers
and
retaining
the
existing
ones.
New
promotional
strategy
have locked
existing
customers
and have
attracted
more
customers.
Increase in
the market
share and
customer
base.
Increasing
the market
share, by
the
improving
the
satisfaction
of its
customers.
Custome
r base
and
market
share of
have
been
increased
by 5%.
Marketing
Department,
Suppliers,
and
Deliverers.
$50
Million.
Learning Analyse
the overall
environme
nt
achieveme
nt of goals.
Transformati
on of
remuneratio
n system and
employee
motivation.
Make
necessary
changes in
the
organisatio
nal
environme
nt.
Making
company
first choice
for people
with good
Knowledg
e, skills
and
abilities.
High
employe
e morale
and
motivati
on.
HR
Department
$10
Million
Financial Perspective – Goal of the implementation of the new strategy was expand the
growth opportunities by catering to the needs of the customer, in a more effective way. This
gaol has been achieved by Ocado, and it was clearly indicated by the substantial increase in
the growth in profits to $265 million in 2017 as compared to the $241 in the previous year.
Cash equivalents have also been increased from $212 million to $263 million in 2017. Ocado

is still trying to enhance it competiveness by improving the design, safety and security
features of the website. Ocado is also trying to reduce any wastages in its warehouses for
improving the cost effectiveness and efficiency of its operations (Kaplan, R. S., & Norton, D.
P. 1995).
Customer Perspective – The main of implementing the Hybrid Strategy was to improve the
quality of the service and its products, in order to meet the requirements and expectations of
the customers. Ocado have been able to achieve this objective, as it is clearly indicated by the
fresh and quality products that it have been providing to its customers, and thus its groceries
have been recognised as healthy and reliable by its customers. Whereas other products of
Ocado, have also been recognised as of high quality. Ocado is still trying to reduce the stock
of products which are not of good quality and thus it is trying to join hands with wholesalers
and suppliers for completing the requirement of their good quality products (Sharma, A.
2009).
Business Perspective – While Ocado have decided to implement Hybrid Strategy, it wanted
to ensure that it will be able to attract more customers while retaining the existing customers.
Ocado have been able to achieve this target, by investing a significant amount of money in
the advertising and promotion of the company, which have affected the existing customer
base and have locked them with the company and have been able to attract more customers.
Ocado is still trying to enhance and increase the market share, by the improving the
satisfaction of its customers, by providing them with fresh and quality groceries (Neely, A.
2008).
Learning Perspective – In order to achieve the goal of improving the market share and
meeting the requirements of its customers by the implementation of Hybrid strategy, could
have been achieved only when the company is able to enhance and improve the work

environment for its employees. For achieving this target, Ocado have transformed the
remuneration system into an attractive one and side by side also motivating it employees to
work for the achievement of overall organisational goals. Though still Ocado, is trying to
make the company as first choice for people with good skills, which will provide Ocado
competitive advantage over tis competitors (Crabtree, A. D., et.al. 2008).

References
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returns. Advances in Accounting, 24(1), 8-15.
Neely, A. (2008). Does the balance scorecard work: an empirical investigation.
Sharma, A. (2009). Implementing balance scorecard for performance measurement. IUP
Journal of Business Strategy, 6(1), 7.
Kaplan, R. S., & Norton, D. P. (1995). Putting the balanced scorecard to work. Performance
measurement, management, and appraisal sourcebook, 66, 17511.
Bourgeois, L. J., & Brodwin, D. R. (1984). Strategic implementation: Five approaches to an
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Rapert, M. I., et.al. (2002). The strategic implementation process: evoking strategic
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implementation guide for architects, engineers, constructors, and real estate asset managers.
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Sigala, M., et.al. (2001). Strategic implementation and IT: gaining competitive advantage
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Pearce, J. A., et.al. (1997). Strategic management: Formulation, implementation, and control.
Chicago, Illinois: Irwin.