Heron Foods Strategic Management Report

This report analyzes the strategic management of Heron Foods, a UK food retailer, focusing on its challenges and opportunities in the face of changing market dynamics and Brexit. It examines the company's intended, emergent, and realized strategies, identifies critical success factors, and explores the potential for international expansion. The report also discusses Mintzberg and Lampel's Ten Schools of Strategy Formulation and provides recommendations for overcoming identified risks and weaknesses. Desklib provides past papers and solved assignments for students.

STRATEGIC
MANAGEMENT

EXECUTIVE SUMMARY
The below report showcases the impact of above factors on UK's one of the largest
retailer Heron Foods. It shows the strategy developments, evaluates the process of strategy
making, assesses the impact of strategy making and how Heron Foods can be flexible and
adaptable to changes in its professional environment. From the report, it can be determined that
Heron Foods needs to grow its market internationally to deal with the problems which the
company is facing because of not having good business in its home market. Also, with the help
of recent Brexit issue how the company has managed to grow itself in international market. The
report also showcase the strategy developments, evaluates the process of strategy making,
assesses the impact of strategy making and how Heron Foods can be flexible and adaptable to
changes in its professional environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Question 1........................................................................................................................................4
a) The difference between intended, emergent and realised strategies with the usage of
analysis tools undertaking the external and internal environmental analysis of Heron Foods4
PESTEL analysis to exploring the external environment of Heron Foods...................5
SWOT analysis exploring the internal environment of Heron Foods...........................5
b) Opportunities and threats of Heron Foods in short to mid term range with the identification
critical success factors of the company..................................................................................6
The Opportunities and Threats in short to mid term range ..........................................6
Identification of critical success factors .......................................................................7
c) Issues Heron Foods foresee if the company decides to see growth through international
markets and how to overcome them.......................................................................................7
d) Strengths that Heron Foods needs to overcome the above identified weaknesses............9
Question 2......................................................................................................................................10
a) Why Heron Foods should start establishing its outlet internationally, after taking a resource
and market based view towards strategy..............................................................................10
b) Mintzberg and Lampel’s Ten Schools of Strategy Formulation in context of Heron Foods10
Question 3......................................................................................................................................11
a) After the evaluation of Mintzberg Ten schools of thought of strategy formation Heron
Foods need to consider the below mention points:..............................................................11
Identified risk and weaknesses:...................................................................................11
b) Top down strategy making...............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Today, the increasing growth in online shopping and easy online resources has impacted
the retail market worldwide. This has led retail owners to suffer from a variety of troubles
including less business and decrease in their overall profitability. In countries such as United
Kingdom the major population was depended on the high street shopping, but after the arrival of
the internet and other leisure activities people have started to spending money in other places and
activities. This has led the retail market to suffer in various ways. The below report showcases
the impact of above factors on UK's food retailer Heron Foods. As a newly appointed strategist,
the report aims to provide a theoretical model and the company's potential to develop strategy
and support strategic decisions. It shows the strategy developments, evaluates the process of
strategy making, assesses the impact of strategy making and how Heron Foods can be flexible
and adaptable to changes in its professional environment.
Question 1
a) The difference between intended, emergent and realised strategies with the usage of analysis
tools undertaking the external and internal environmental analysis of Heron Foods
Intended Strategy Emergent Strategy Realised Strategy
An intended strategy is a
strategy that Heron Foods
hopes to execute. The strategy
is obtained from the prepared
strategic plan by the top
management of the company.
Here, the intention refers to the
beginning point of the
planning process developed to
gain a certain objective(Hill,
2017).
Emergent strategies are put in
place by identifying
unanticipated outcomes after
executing a strategy and then
including those outcomes
which are unexpected in future
corporate plans with the help
of bottom-up approach.
A realised strategy is known as
a strategy which is
accomplished. This strategy
might be the result of an
emergent or deliberate
strategy. This is a kind of
strategy that Heron Foods
actually follows. It is often a
by-product of intended
strategy of organisation.

PESTEL analysis to exploring the external environment of Heron
Foods
Political Heron Foods has seen its sourcing costs reduction due the policy of free
trade. Other political factors are the significant implications of Brexit on
businesses are the changing taxation policies and government.
Economical The organisation has seen economic changes due to Brexit. Brexit has
created a lot of disturbances and the company is not able to maintain its
smooth operations.
Social The company has received criticism as being a not trendy store. Also, the
company has supporting initiatives in communities surrounding it which
helps to cut down its internal costs.
Technological Heron Foods is having technological partnership to strengthen its
compliance, risk and security(Robson, 2015).
Environmental The company is serving products which are environment friendly and
sustainable. It has proved as good for the company and the environment as
there is a rising demand in products which are sustainable and
environmental friendly.
Legal The legal factors impacting the Heron Foods includes its financial dispute
with the Blackrock shopping centre Frascati landlord.
SWOT analysis exploring the internal environment of Heron Foods
Strengths Weaknesses Opportunities Threats
Heron Foods is having
an infrastructure with
strong e-
commerce(Hitt and
Heron Foods is seen to
have a poor financial
performance. Along
with it, the company is
The company is
planning to invest in
the market of India
and the company has
The company is facing
the rapidly changing
trends in the space of
food. Also, the

Duane, 2017). The
company is having a
strong focus on
enhancing its
consumer experience
and is very effective in
its corporate social
responsibility.
too much relied on the
market of UK which
makes it vulnerable to
the local market
conditions.
decided to reshape
their segment of food
entirely. Along with it,
Heron Foods have
decided to simplify its
operating model.
competition for Heron
Foods is very hard in
UK's food sector. The
company has seen a
threat post Brexit in
sterling depreciation.
b) Opportunities and threats of Heron Foods in short to mid term range with the identification
critical success factors of the company
The Opportunities and Threats in short to mid term range
Opportunities: Heron Foods is planning to invest in the market of India. The company
has seen a growing demand in Indian Market for western food. This opportunity is being used by
the company to increase its business in one of the top Asian countries. Also, the Indian market is
allowing the company to have less competition than its home United Kingdom. It competitors
such as Whole foods are still not present in the market of India which makes the company the
First one to reach Indian subcontinent and sell its products and services. Along with it, India
offers less taxation and fewer legal implications(Doz, 2017).
Heron Foods have chosen to develop their website which is allowing the company to
make its reach in global markets. The online platform is making the organisation reaching more
consumer bases that the company still isn't aware of. The organisation has seen a rapid increase
in buying and selling of its commodities through its website which is allowing the company in
reaching more consumers and businesses as well(Barney, 2017).
The above stated factors explains the market opportunities of Heron Foods.
Threats: Heron Foods has observed that its retail competitors are providing better
discounts within United Kingdom. This is making its consumers to shift towards its competitors
and the company is facing a major profitability downfall. Heron Foods has managed to

understand these threats well, and has decided to reshape its food segment entirely. Along with
it, the company has also chosen to provide offers and discounts to its customers.
Another threat is due to Brexit the company is facing strict government policies for its
retail stores. The overall organisation has been impacted hard with Brexit and the company's
European market has also seen fewer profits. Along with it, in response to the Britain's exit other
European nations have applied strict political implications and has made it difficult for Heron
Foods to thrive in the overall European Market(Wheelen, Hunger, and Bamford, 2017).
Identification of critical success factors
The critical success factors of Heron Foods include its arrival in the market of Indian
Subcontinent which is providing the company with various new opportunities to expand its
business in a huge market. Heron Foods is able to find new customers and to produce new
commodities as per their needs and requirements. The company is also able to observe new
trends in the Asian market which in terms would help the company to observe the overall Asian
market scenario and later to expand its business in countries such as China and Japan.
Also, Heron Foods is incorporating new ways to develop its business online. This is
general will increase the company's presence on a global scale and can make it possible to reach
its goals and objective successfully(Meyer, Neck and Meeks, 2017).
c) Issues Heron Foods foresee if the company decides to see growth through international
markets and how to overcome them
Heron Foods has observed a rising demand of its products and services in the
international market(Lasserre, 2017). The company has decided to explore its market in countries
such as India and China. This has made the company to understand and observe those issues
which are making its growth difficult in these market along with how these issues can be
resolved to gain success in the above markets. Below explained are those external environmental
issues which the company has foreseen:
Strong government regulations: After the trade war between United States and China,
other Asian countries have started applying strong legal implications on foreign businesses.

These businesses have seen major trouble in growing themselves in these countries(Michael,
Storey and Thomas, 2017). Heron Foods has also seen these legal implications being hard on
the company's businesses. The company is trying to grow its business in Indian Market. The
trade war has left India considering its legal implications, and making it strong for the future
purposes so that the country need not suffer damages caused by the trade war.
Different needs of different consumers bases: There are consumers bases which
demand products that satisfies their needs and comforts then there are consumer bases which
asks for the product with long shelf life, good quality etc. Along with it, different countries have
different cultures and per these cultures the consumers demands might vary as well. It is going to
be difficult for Heron Foods to understand these needs and demands on a large scale if the
company is trying to increase its business in International market.
Strong Competition: When an organisation tends to increase its business in the
international market, its major problem is the competitors with strong bases in the countries in
which it is trying to grow its business into. Heron Foods has seen to be facing the same problem.
Asian countries such as India and China is already having big companies that tend to supply the
required products and services to the consumers of the country, and because of the presence of
these competitors, it is difficult for Heron Foods to grow its business in both of these countries
and internationally as well(Bonardi, Vera, and Withers, 2018).
Heron Foods can overcome these issues by using the right strategies such as to fight
strong government regulations the company can provide the government with a trust and can
sign the MOU (Memorandum of Understanding) in which the company can guarantee the
nations to manage the difficult political climate effectively in case of trade wars or any other
political problems. To deal with different needs of different consumer bases, Heron Foods can
understand the trends which its competitors are using and can use forecasting techniques to
understand the needs of various consumer bases. To deal with strong competition
internationally, the company can make its products unique and different from its competitors.
Also, the company can use better advertising and promotion to promote its products and
services in these countries.

d) Strengths that Heron Foods needs to overcome the above identified weaknesses
The above identified weaknesses explains the troubles Heron Foods is facing to grow its
business internationally. These troubles are making the company to face situations in which it is
hard for the organisation to grow itself in desired new markets. Below explained are the various
strengths the company can adapt to overcome these weaknesses:
 Excellent customer service: To deal with the issues of different consumers and their
different demands, Heron Foods needs to develop an excellent customer service.
Customers when receives good service, they tend to stick to the company they are buying
their products and services from. As seen in the above scenario the company is facing
difficulties in increasing its consumer base internationally because of the presence of its
competitors in those countries. Providing excellent customer service can make the
company stand apart from its competitors and can prove itself as better from them.
 Low cost and highly efficient manufacturing: Heron Foods is facing difficulties in
supplying different products to different consumer bases. In this case, the company
needs to adopt manufacturing with low cost and high efficiency. This is going to allow
Heron Foods to develop products with different categories to serve its different
consumer bases. Low costs will minimize the risk if any of its products fail to perform in
the market as desired and high efficiency will make the organisation to develop products
fast and smooth(Ginter and et.al., 2018).
 Leadership in product innovation: Leading in product innovation will make the
company to attract new consumers easily. Heron Foods can make use of its Research
and Development team to ensure that the company is doing best research and making
efforts to understand the needs of its consumers. This is going to help the company to
understand its market needs and pave to way to lead. It is going to make easy for Heron
Foods to grow itself in desired economies.
 Skilled Employees: Having skilled employees in its retail stores would help Heron
Foods to provide best services to its consumers. These employees can provide each and
every consumer with best of the satisfaction while purchasing their products and services.
Along with it, having good employee base would make the organisation functioning

smooth and efficient. This can make the overall organisation to lead towards growth and
in achieving its goals and objectives.
Question 2
a) Why Heron Foods should start establishing its outlet internationally, after taking a resource
and market based view towards strategy
After taking its resources and market based view into consideration, it has been observed
that Heron Foods is failing to keep its market strong in United Kingdom. Brexit has left the
company with facing serious issues such as fewer suppliers of raw materials across Europe and
consumers loosing interest in buying products and services of Heron Foods all over the Europe.
This has made it impossible for the organisation to grow and survive in United Kingdom.
The country has already seen a major loss in consumers in retail sectors. All of these factors has
made Heron Foods to look for different ways to grow its business internationally. Along with it,
the company is exploring ways in which it can grow itself in international markets.
Observing this it is important for the company to grow itself internationally. Heron Foods
is already having good reputation in the market of United Kingdom and Europe as well. By
using this reputation the company can grow itself in the desired economies and markets. The
company can make its reach in markets where its competitors are having high demands and has
seen potential customers as well. It is important for Heron Foods to keep growing itself new
markets for organisation well being and keep leading towards growth.
Heron Foods will see a rapid growth in its businesses and overall market profitability if
the company tends to grow its market internationally. Countries like India and China are having
a large base of consumers who needs to be identified with their needs and demands. The
company can observe these customer demands and provide them with the products and services
they need and in return they can set the kind of prices they want from them.
b) Mintzberg and Lampel’s Ten Schools of Strategy Formulation in context of Heron Foods
The school of culture in Mintzberg and Lampel's Ten Schools of strategy formulation
offers a process which is rooted in social power of the culture. The school is focused on
integration and common interests. This school of thought can be used in Heron Foods's further
advancement in growing its business internationally.

The school of culture can be used in understanding the needs of various cultures across
different countries. This can help the organisation to understand the specific roles that a culture
play, along with it Heron Foods can understand their significance in the particular area. The
food they eat in their community and what would be their needs as per their current trends. This
can help the organisation to develop a chart of various cultures and their particular trends. The
company can later produce the good and services accordingly.
Understanding cultures can make Heron Foods stand apart from their competitors as
well. It can make the company to understand the needs and requirements of a particular culture
and then with the usage of these same needs and requirements Heron Foods can develop new
products in the line. It can save the company from investing in Research and Development again
and again and would save a lot of time and money as well.
Question 3
a) After the evaluation of Mintzberg Ten schools of thought of strategy formation Heron Foods
need to consider the below mention points:
The learning school model:
This approach pay attention to the management. That what does work and what does not
work. It is very hard to implement particular strategy to be develop in an organisation at once. So
according to the learning school model Heron Foods company should divide plans and strategies
in small steps as company can adopt or learn.
Identified risk and weaknesses:
The economy-
Heron Foods company is set out to develop its presence on international level. It is very
essentially Heron Foods is depended on the British consumer for the selling their products. 11%
of revenue is coming from overseas consumers. All the British customers were tempted to ditch
Heron Foods high quality and up market for the cheaper stuffs. So there was a risk about
economic condition has an impact on the consumer confidence and ability to achieve the plan. It
was a big risk that Heron Foods is admitted the disposable income of consumer from the

inflation of price and austerity measures of government, and trading conditions (Ginter and et.al.,
2018).
Recommendations to overcome from the economic problems- Heron Foods company
should monitoring and reviewing the effectiveness of promotional strategies and pricing in the
food business and general business. Marks and pence company should minimize the cost of the
products according to the feedbacks of the customers and also its positioning in the market place.
Flawed execution of new selling channels- Heron Foods company can be fail to deliver
improvements in the stores across the world. Company is not providing a new platform for the
purpose of flexibility to support the future growth of the company. Company knows very well in
terms to refreshed all the store, adherence to programs, budget and schedule
Recommendations- Heron Foods company should use an integrated management system
with the help of IT to provide a common platform. Data base centre will help to update all the
stores. Other thing is Heron Foods company should manage and maintaining the supply chain for
the purpose to update all the stores of the company. An integrated management system gives a
common platform where all the functional groups of area inter connected to each other with
purpose to access the information of other functional units(Starr,Ganco, and Campbell, 2018.).
Less engagement with the customers- Heron Foods company has lost its touch with the
fashion business. It is a risk coming out in front of the company. That Heron Foods company is
giving then importance to the 55+ customers. And it can be the cause of economical and
competitive uncertainty in the market.
Recommendations- Heron Foods should concentrate on the need of core customers. And
company should interact with the customers on regular basis to know about their feedbacks. It
will be helpful for the company to improve its brand image through focus on the customers
group, online reviews etc. company can also make an improvement in the products to know
about the requirements' of the different markets.
b) Top down strategy making
Strategy planing is an area where companies find out a right approach to used to
overcome from a problem. Top down strategy help to divide all the management system into in
parts. Top down and bottom top both are the strategies of knowledge ordering and information
processing used in different kinds of fields. The meaning of this strategy is to breaking down a

system into segments. So all the units can work individually. And the working process will not
overlap with each other.
That means all the fictional units inside the company should work individually. This
strategy helps to work more effectively. For the example- sometimes functional areas of an
organisation does not allow doing work more effectively.
According to Mintzberg schools of thought about strategy formation the learning school
model is an emerging process where all the activities of the strategies should be divided into in
parts to adopt and learn. This model is based on education learning theory which contributes to
deal with number of problems in strategy formation. This model provides strong views in
difficult situations from the continuous changes. This model contribute to build strong
professional organisation(Ma and Seidl 2018).
Limitations- there ere some limitations also of this model. This model is not so much
useful in stable conditions of the company. This model includes many sensible steps. This model
is also not very useful in the economic crises. This model also include cost with learning.
There are 5 alternative models for the strategy formation in Heron Foods and these models are -
 The environmental school (Reactive process)- this strategy helps to make a challenge
imposed by the external environment.
 The cultural school (A collective process)- This model includes different types of
departmental groups with in the Heron Foods company. It is a collective process and
reflection of the Heron Foods is a process where values and beliefs are playing an
important role in decision making process. This model helps to give a central role to the
environment in strategy formation.
With the help of all these strategies Heron Foods company can overcome from the management
problems and external problems.
CONCLUSION
From the above study it has been summarised that, the strategies difference between
intendant emergent and realised strategies and utilised analysis tool for the internal and external
analysis on the Heron Foods and opportunity and treats of the company and the critical success
factors of the organisation. And identified the changes in external environment and issues in
growth of international market and recommendation to overcome from the marketing issues.

This file also discussed about the tools and techniques to identify the strength and weakness of
the company. Also, discussed about the views towards resource based strategy. Further,
discussed about the Mintzberg and Lapels ten school of strategy in different situation. Risks and
recommendations of the Heron Foods company. And practices and limitations of down strategy
making process in organisation.
REFERENCES
Books and Journals

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Leadership and Strategic Management.
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