Strategic Management - (Assignment)

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

STRATEGIC MANAGEMENT
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Table of Contents
Introduction:...............................................................................................................................3
Background of the business entity:............................................................................................3
Competitive Stance of the business entity:................................................................................3
PEST Analysis:..........................................................................................................................4
Strategy Map 1:..........................................................................................................................6
Strategy Map 2:..........................................................................................................................7
Porter’s Five forces:...................................................................................................................8
Growth aim of business entity:..................................................................................................9
Blueprint for growth:..................................................................................................................9
Competitive Stance of the business entity Revisited:..............................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11
Transcript:................................................................................................................................13

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Introduction:
The study analyses the commercial actions of Lulu Hypermarket of grocery operating
in United Arab Emirates. The study delivers a short summary of the commercial actions of
the corporation and also describes the competitive stance of the business entity. The study
analyses the global trends of the industry with precise application of the PEST analysis and
assesses the competition in the UAE grocery market through utilizing the Porter’s five forces
tool. Along with that the study provides an important understanding of the growth
opportunities of the business entity. In addition to this, the study shows the position of the
business entity in the grocery market of UAE through pictorial presentation.
Background of the business entity:
The organization operates in the grocery industry of UK and is regarded as one of the
largest names of the mentioned industry. The business entity proposes an extensive range of
products to their clients which ranges from grocery products, fresh food products, mobile and
gadgets, electronics products, home and lifestyle related products along with the fashion
products (Luluhypermarket.com/en-ae 2020). The senior management of the business entity
is dedicated in making it the most preferred destination for the people of UAE and that is
visible with the urge of the senior management of the business entity in applying the low
pricing. Along with that, the strong presence of the organization in the form of the store
outlets is a vital feature that influences the accomplishment of the business entity. In UAE
market, the business entity is observed to face a strong level of rivalry from the part of other
competitor organizations such as Almaya Supermarkets, Carrefour, Spinneys, Choithrams
and Union Co-op (Almaya.ae. 2020).

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Competitive Stance of the business entity:
With an exact look at the commercial actions of the business entity it is
understandable that one of the key aspects that increases the competitive nature of the
business entity is their pricing policy. The business entity is observed to have the knowledge
of utilizing low pricing strategy for their products. A survey conducted by Souqalmal.com
showed that the organization is in third place in utilizing low pricing policy for their products
amongst the supermarket chains or the grocery stores operating across the nation. Apart from
this, the robust existence of the business entity in the form of 188 stores and 23 shopping
malls across the globe, is observed to be significant for the business entity in reaching out to
the clients (Lulugroupinternational.com. 2020). As a result, it is understandable that the
business entity is placed in an advantageous position in comparison to their competitor
organization in terms of the infrastructural strength. Apart from this, the business entity is
observed to be determined in continuously expanding their product chain as that will be of
great significance for them in ensuring that the different requirements of a larger number of
clients are met in a professional manner.
PEST Analysis:
With a detailed consideration towards the macro environmental factors of the nation,
it is understandable that the impact of Brexit is pretty significant on the grocery market of the
nation. With the application of Brexit, the business entity is expected to face substantial
amount of difficulty in sourcing skilled and experienced employees for their business
operations at cheaper rates (Busch and Matthes 2016).
The total GDP (PPP) of the nation in 2019 was 3.131 trillion US dollars and the per
capita value of the same was 46827 US dollars (Tradingeconomics.com. 2020). In addition to
this, the high score of 0.920 in the Human Development Index is noteworthy in affirming a