Five Elements of Strategy Formulation and Implementation for Sheng Siong

This report discusses the five elements of strategy formulation and implementation for Sheng Siong, including arenas, differentiators, vehicles, staging, and economic aspects. It includes SWOT, PESTLE, and Porter's Five Forces analysis. The report argues on how strategy became “catch all term” and its proposal framework with some of the five major elements. Subject: Strategic Management, Course Code: N/A, Course Name: N/A, College/University: N/A

Contents
Introduction...........................................................................................................................................3
Five elements of strategy......................................................................................................................3
Arenas-..............................................................................................................................................3
Differentiators...................................................................................................................................4
Vehicles.............................................................................................................................................5
Staging...............................................................................................................................................6
Economic logic...................................................................................................................................6
Conclusion.............................................................................................................................................9
References.............................................................................................................................................9

Introduction
This report brings out a discussion on five elements of strategy formulationand its
implementationof Arenas, differentiators, vehicle, staging, and economic aspects of Sheng
Siong. The report argues on how strategy became“catch all term” and its proposal framework
with some of the five major elements (Rastogi, and Trivedi, 2016).This report has analysed
the external and internal elements of the organisation with the help ofSWOT, PESTLE, and
porter five forces model.SWOT Analysis is the evaluation oforganisation’s strength,
weaknesses,opportunities, and threats.Pestle analysis comprises of political
factors,economicfactors,social factors, technological factors, legal factors, and environmental
factors.This factors well define the external influence on company.
Five elements of strategy
Arenas-
This factor indicates how much and to what extent, an organisation is active. Decisions for
the firm`s arena will encompassthe products, geographic areas, market segments,
technologies and the stage of value creation process (Aithal, 2016).
Sheng Siong group limited is the third largest supermarket chain of grocery stores in
Singapore.The company offers fresh food.The storefocuses on availing wide range ofno-
frilleditems.The company has welcomed retail players including Amazon Prime, Redmart,
and the habitat of honest bee’s with an aim toget blue chip market share from the mortar
grocery andbrick such as dairyfarm, sheng Siong and NTUC fair price. The company has
been operating retail centres from the headquarters with the purpose of building centralised
warehouse with distribution centres. Sheng Siong targets people of all ages, children,
youngsters, and the elderly people especially who buys grocery items for house (Racz et al.,
2018).The number of retail outlets is near to54 at the end of 2017 located across the island.
This chain stores is availed just to provide customers with both wet and dryoptions ranging

from huge range of assortmentof fresh, chilled product, meat, vegetables, dried food, fruits,
seafood and repackaged. The company was further incorporated under the Companies Act,
Singapore as a private limited liability. Group includes the company and its subsidiaries with
SS supermarket, SS Malaysia and CMM Marketing. The company has been located in the
heart of Singapore.
Differentiators
Differentiation is the core ofstrategy and these includeUSPs, difference from the competition,
and the method to winat the marketplace.Some of the commontypes of differentiation are
price, customisation, reliability, speed of the product updates, customer services, and speed to
market(Aithal, 2016). The strengthsof the company areresilient business, positive free cash
flows,no debts, and strong financial status. Sheng Siong belongs to the group of resilient
operation regardless of business cycle, as it is the provider of food and groceries. Evenwhen
the market crashes; a person will still want to eat. Sheng siong business will never go out of
date and the fact will become well rootedin the country (Bohari, Hin, and Fuad, 2017).With
the upgraded formin Singapore, wet marketwill be removed and replaced by Sheng Siong as
it progresses in times (Bull et al., 2016). Bring a huge chain ofsupermarkets; the company
will benefit it by leveraging on the economies of scale. The company has been continuously
expanding and growing that will continue to work in favour. The company has to maintain no
debt and positivecash flows, whichit pursues toenhance theprojects with high level of returns
in order toimprovethe earnings. A business continues to expandthe existingbusiness with the
help of upgrades and conduct share buybacks.The company lacks product differentiation
between the competitors’ products such as Giant, Fair price and Sheng Siong`s items. The
opportunities include expansionstores in Singapore, looking forward to China, and Room for
huge profits. Expansion of Singapore with other BTOs is a good sign for the company as
there is new emerging population, which is in the need for supermarket in the conduction of

grocery shopping. ShengSiong has attained to licence in the operation of supermarketsin
People`s republic related to China and entered in lease agreement for the retail space with
several competitors such as Carrefour, Wal-Mart, and Metro.It is not refreshing to foresee
Sheng Siong, which is a home brand pitting itself in regards to the huge competitors.The
company engaged in grocery retailing in the country whereit includes 23 stores all near
Singapore.Long history and the reputation for the quality of products at the competitive
prices leading to “Sheng Siong” widely becoming established brand name in Singapore
recognised by the customers (Sheng siong, 2019).
Vehicles
While determining the aspects of the activities, which are most material to the
stakeholdersafter the conduction of peer evaluationand engagement to the stakeholders
includingcustomers, shareholders, suppliers, non-governmental company, voluntary welfare
company and the media. Industry is greater support to the existence of Sheng Siong. Porter`s
five forces model has beendescribed below-
Rivalry among the competitors-When the competition is intense then it will become difficult
for the existing players such as Sheng Siong to maximise the sustainable profits. Major
competitors are NTUC Fairprice, Giant, and Cold storage.The competitors have been located
at different places where the competition is high.The competition is higher especially with the
resources and money needed to enter in the industry.It weakens the organisation’s
positionbecause of several effective factors such as continuous advantage, level of
advertising, competitiveadvantage,and continuous innovation.
Threat of new entrants- If this threat of new entrants is high then the recent players will be
willing to earn less amountin order to reduce threats.As the industrymerchandise
commodities and regular products. It is a rigidindustry because of the nature and consumer

often likes to attempt frequent purchases. Sheng Siong ensures where its product price at the
competitiveprice so that it can attempt to get market share (Mathooko, and Ogutu, 2015).
Bargaining power of suppliers-when the bargaining power has strong power where they will
extract huge prices from Sheng Siong.
Bargaining power of customers-When the buyers do have strong bargaining power, which
they are usually often tend to drive the prices down by limiting the potential of Sheng Siong
in order to earn thesustainable profits.Bargaining power is high where there are many
alternatives available (Mathooko, and Ogutu, 2015).
Threat of substitutes- When this threat is high then the company has to continuously invest
into investment and R&Dby riskingthe lossof disruption in industry.
Collaborationand Partnership for the smart dealings with an extensiverange of
operationalservices, initiatives, systems, and processesin order to serve great experience of
Sheng Siong.
Staging
This factorrefers to strategic moves that is defined by timing, speed, and pace.Strategic
decisionsare driven by factors such as credibility, resources, need for early wins and urgency.
The product named as “Fairer” is marked as local food product, which is marked as important
in investing the external opportunities. It is used to combat several external threats. Highly
trained workforce is even valuedmore than theproductivity output.On the other hand, VRIO
analysis lays down the method of production, which will lead toinnovative features,
competitive advantage, and low costing.The employee base of the company is different and
rare, whichis possessedby the competitors.It is important not to legally allowimitating
patented products (Basset, Mohamed, and Smarandache, 2018).

Economic logic
Internationalisationstrategy serves to achieve overall economic logic of the corporates and
their strategies. Sheng Siong has to conduct PESTLE analysis under the economic logics.
Political aspect- For every organisation, it operates an important role in the smooth operation
of the company. The government intervention is that area of concern, which decides how the
organisation has been affected. The country political conditions are stable and democraticin
its nature with very low political risk. Some political laws often come up with low political
risks. At the same time, few laws come up with restriction on the non-Singapore person hired
for job leading to increase in labour cost for other competitors and Sheng Siong. All the
suppliers will have to adhere several regulations of export and import. Government will
provide subsidy to the e-commerce activities while forming the direct subsidy and the fiscal
incentives such as E-business industry for the development scheme. It will further lead
tostrongadoption of e-business that will help in increase of the electronic transactions among
the business in country.It will undertake to stepand strengthen the adoption of e-business,
which helps to increase the electronic transactions in the business.
Economic aspect- This factor includes inflation rate, GDP, purchasing power, personal
disposable income, and foreign currency. Singapore is a booming economy with an aim to
focus on the diversification. Business model entirely is dependenton Brick and Mortar outlets
that need big investmentin terms of labour and space. Economy of Singapore is marked by
high degree of openness as it depends on international trade. GDP grew by 2.9 percent in
2018 and it is expected to growwith 2.5 percent in 2019. Growth factor indicates business
regulatory system where 180 percent of the domestic and export demand.Publicdebt often
become high wherefinancial assets held by nation more than expected compensate for the
same.The main politicalaspectsinclude restructuring of Singapore`s economy by preventing
its dependence on the foreign labour, increasing wages, and weaken productivity

enhancement. Singapore Food Agency was established in 2019 while promoting the food
security. Singapore does not have only mineral resources, which indicates that budget is
industrialised. This sector represents 23.21 percent of GDP that employs 16 percent of
population (Mathooko, and Ogutu, 2015).
Social aspect-Social contributions will be affected for the Red Cross project.This has eased to
make the positive market value of the Sheng Siong supermarkets amongst the competitors.
The company has retained more than 3000 staffs in the 34 stores with maintenance of
highemployment track recording.Skilled workersare quite deemedto assist the organisation to
advance the market position by ensuring more customer retention.
Technological factor- It includesadvancement in the production related technologiessuch as
automation, increasing customised possibilities, and more general advances, through
whichtechnology such as music and light. More use of internet for consumer transactions and
business.E-commerceamenities has been facilitated brand to pay and purchase online with
minimum delivery charges (Aithal, Shailashree, and Kumar, 2016).
Legal factors- Several acts have been proposed to prevent the exploitation of natural
resources.Acts have been enactedto prevent the use of unethical measures by the
organisations.Awaited “Heyday case” has been resultedregarding the retirement with the
greater impact of employment laws. In 2017, the company was on zero incidents of
corruption and zero cases of the legal actions for the anti-competitive nature. As per the
company`s opinion, various accounting and other many recordings as per the requirement of
Act has to be kept by the organisation in accordance to the provisions of Act.
Conclusion
From the above data, it can be concluded that sheng siong has been confronting itsexternal
factors effectively.The company is already renowned as one of the third largest supermarket

by the evaluation of Porter`s five forces model, PESTLE analysis and SWOT analysis. Sheng
siong faces high level of competition where the company has accessed the competitors of
new technology and its impact on better services and product development. Research areas of
the Singapore’s government and the educational institutes can make efforts in facilitating
effect on workflow. Economic logic has been affected by PESTLE analysis including
economic, social, technological, and legal factors. Arenas cover different products offered by
the company, differentiator includes target market including their offerings and staging
signifies VRIO analysis.

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[Accessed on: 26/07/19]