Strategy Evaluation for Waitrose: Purpose, Objectives, Competitive Advantage, and External Analysis

This report evaluates the purpose, vision, mission, and objectives of Waitrose in setting its strategy direction. It also examines the competitive advantage using the VRIO framework and applies PESTEL analysis to analyze the external environment of the business. Additionally, it critically discusses the Porter Five Forces Model.

Strategy evaluation

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY ......................................................................................................................................3
Evaluate purpose, vision, mission & objectives in setting strategy direction of firm ....................3
Examine competitive advantage by using VRIO framework ........................................................4
Apply PESTEL analysis to analyse external environment of business .........................................6
Critically discuss Porter Five Force Model ....................................................................................7
Based on analysis, review organisational strategy ..........................................................................9
CONCLUSION...................................................................................................................................11
REFERENCES...................................................................................................................................12
Books & Journal:...........................................................................................................................12

INTRODUCTION
In business sector, strategy is to be defined as set of actions or plans that are used to
achieved objectives. It is important to focus on strategy on basis of goals and objectives are being
achieved. Main aim of this report is to understand the importance of strategy evaluation to gain
competitive advantage (Bayo-Moriones, 2020). With change of business and market situation, it is
important to focus on adopting of tactics that leads to development of organisation goals &
increasing sustainable period. Waitrose & Partners, a British supermarket headquartered in
United Kingdom. John Lewis is parent firm of Waitrose. The company operates at global level & is
expanding its business with new strategies as well as operations. This report comprises of purpose,
mission, objectives, VRIO analysis, PESTEL framework, Porter Five Force and review of
organisational strategy.
MAIN BODY
Evaluate purpose, vision, mission & objectives in setting strategy direction of firm
Strategy management plan (WAITROSE)
Strategy management plan is essential in business without which it is not possible to
achieve set goals or objectives in proper manner. In relevance of Waitrose, they too implement
strategy management plan with proper considerations (Birkin, 2017). As they operates at global
scale, they are focusing on development of business to gain higher profit & increase customer base.
In this competitive era, it is crucial for company to be aware about strategy direction so that
business goals are accomplished.
Purpose Main purpose of Waitrose is to be everything that discounters
are not.
Mission Mission of firm is to provide happiness to all its members
through properly satisfying employment in business.
Objectives Objective of company is to maximise profit through
developing of more organic links with local community.
Another objective is to increase level of customer service.
Strategies
Their main strategy is to be different from others and from
what others are doing.

They aims at providing affordable products to customers
with additional features or options.
Targets
The success of strategies and targets are based on middle
class people.
Results & goals To carry out strategy effectively they have been expanding
their services & developing network across the globe.
So, from above shown strategy management plan of Waitrose, it has been analysed that it is
critically important for business to focus on their panning as well as strategy so that it is easy for
them to achieve both long and short term goals. Furthermore, manager of firm make assure that
appropriate type of resources are to be used so that planning is carried out properly.
Examine competitive advantage by using VRIO framework
In retailing industry, it is essential to states that the level of competition is increasing at
rapid scale & which makes it necessary for chosen entity to achieve competitive advantage in
appropriate manner. Furthermore, with proper analysis of market it is easy to scan environment &
achieve competitive benefit by gaining information about competitors, market etc. The retailing
industry is growing & making it difficult for enterprises to survive in market due to increase of
competition & low customer base. In context of selected firm, they adopt VRIO framework with
aim of achieving competitive advantage (Çitilci, 2020). Waitrose has goodwill in market on basis of
which they are able to gain benefits at larger scale. The framework is further discussed as follows-
VRIO
It is type of framework which is used by organisation to determine resources that can leads
to competitive benefits. With use of VRIO, it is easy for entity to identify their most important
resources on basis of which they can achieve uniqueness in market for future development &
growth (Goodman, 2017). This is also to be considered as strategic analysis tool that is adopted
with aim to protect resources as well as capabilities from exploitation. It comprises of four
components that are explained below-
Resources Valuable Rare Imitable Organised
Financial
resources
Yes Yes No Yes
Employees Yes No Yes Yes

Strong global
presence
Yes Yes No Yes
Supply chain
Yes No Yes Yes
Valuable
It is component in which it reflects the most valuable resource which is used by
organisation in effective manner. In context of chosen entity their valuable resources are employees,
financial resources and supply chain (Hernández, 2018). They uses these valuable resources in
efficient manner. Valuable resources are identified by differentiation or decreasing of product.
Moreover, it is too important to analyse & review value of specific resource in correct way.
Rare
In this element, it reflects the those resources that can be only used by few firms that are rare
in nature. With help of valuable & rare resources, Waitrose is able to achieve temporarily
competitive benefits. By properly focusing on these resources, they are used at optimum level.
Resources which are rare in nature need to be adopted only when there is need of urgent
requirement. Furthermore, rare resources also have deep impact on prices & other part of
businesses. Thus, HR of selected company uses their rare resources with proper considerations.
Imitable
It is element in which it depicts about cost to which resource can be copied by others. It is
necessary to examine about the degree of imitable so that changes are made accordingly.
Furthermore, it is often seen that a firm which has high degree of imitable resources is unable to
survive for longer period. In context of chosen corporation, employees of company are easily
imitable as competitors can hire employees with more better options with same work & roles.
(Masih, 2019).
Organised
It also crucial component of VRIO framework in which it shows that whether resources are
organised or not. Being organised leads to carrying out everything in correct manner. Main benefit
of being organised is that it assist in capturing value in appropriate way. It is crucial to organise
employees, management processes & system in such a way that sustainable advantage is achieved.
In reference of chosen entity, they have well organised management system and resources such as

employees, supply chain in organised manner which assist them in achieving of sustainable
advantage.
Therefore, it is examined it is necessary to gain competitive benefits so that decisions and
strategies are implement accordingly. It is critically important to use this model on basis of which
resources are analysed in effective manner. Furthermore, it is time consuming process but is
essential to be used. With properly internal analysis, it is easy to examine about the presence of
resources within enterprise whether they can be used or not.
Apply PESTEL analysis to analyse external environment of business
External environment refers to factors that impact on enterprise widely. In business sector,
it is crucial to be aware about such factors as they help in making decisions effectively. In
relevance of Waitrose, they apply PESTEL analysis to analyse external environment & is further
discussed below-
PESTEL Analysis
It is type of tool which is used for determining external factors within market that have deep
impact on overall organisational structure. It is important to use this tool so that it is easy to make
decisions in effective manner (Pooe, 2020). Main benefit of carrying out this framework is that it
help in developing of strategy thinking on basis of which it is easy to access external threats which
can affect business at wider level. In viewpoint of chosen firm, they operate at global scale so they
are being affected by external factors which are given below-
Political factor-
It is first component of framework in which it comprises of environmental law, labour law,
trade policy, tax policy, etc. This affect business & the way work is being carried out. For example-
U.K government might impose a new tax policy which can negatively impact on enterprise
functions & operations. Thus, political factor have negative impact on organisational strategy of
Waitrose (Seth, 2019).
Economic factors-
It is element in which includes factors such as inflation and deflation rates, foreign exchange
rates etc. These are non controllable factors which can not be controlled by any cost. Due to change
of foreign exchange rates, profit & sales ratio of Waitrose might get affected at lager scale. It is
necessary for entity to be active in market. It reflects about involvement of government within
economy.
Social factor-
It is another element in which it comprises of community, society, behaviour, disposable
income of people & many more. It is crucial to focus on such factors as it help in understanding

perception of others. In relation of selected enterprises, they distribute their products on basis of
social factors in which certain things are focused by them such as who are their target market, what
products are mostly purchased etc.
Technological factor-
Technology has been playing major role in success of business. It is because every entity
functions & operations are connected with technology. This technological factor includes use of
artificial intelligence, software, hardware, etc. For example- retailing businesses uses different
system & software for their operations in management (Sharma, 2018). So, chosen company is too
affected by this factor as they uses technology in their research & development department,
marketing department. Also, changes in technology takes place at frequent level which makes it
difficult for firm to
Environmental-
In this, it focuses on factors such as pollution, whether climate, green agenda etc. In
businesses, it is necessary to have appropriate information about these elements as they help in
accessing of trust of market or customers easily. In relation of selected organisation, they properly
are concerned about these elements. For example- they do charities to NGO'S & prohibit use of
plastics in order to protect environment.
Legal factor-
It is last component in which it includes rules, regulations, laws. In organisation, these are
to be followed properly so that problem do not occur in future time period. For example- in food
retailing supermarket, laws which are focuses are consumers laws, safety standards & many more.
In viewpoint of chosen corporation, they legal department of firm are properly following all laws
which are under food business.
Therefore, it is specified that PESTEL analysis is needed to be considered in proper manner.
So, that it is easier to make decisions about factors affecting businesses externally. Further, with
proper analysing these factors, it is easy to achieve objectives in effective manner.
Critically discuss Porter Five Force Model
The market is changing at rapid scale and it is becoming important to gain information
regarding business sector & field. With increase of competition in retailing food sector, it is
necessary to focus on factors that can shape the business. In relation of Waitrose, to access
competitiveness in market, company uses Porter Five Forces Model. This is also used as strategy
evaluation tool by entity.
Porter Five Forces Model-

It is type of model which is used by organisation analyse the competition in market. With
the help of this model, it is easy for enterprise to gain competitive advantage in market Stverkova,
2018). In relevance of selected entity, adapting this framework helps them in increasing of
sustainability period. Main advantage of focusing on this model is that it help in implementation
of strategies & tactics effectively within competitive environment. Also, profit is easily increased
when competitive environment is easily determined. So, it is discussed as follows-
Supplier power- It is first factor in which it reflects power of suppliers. In business as
well as market, suppliers are important who are responsible for distributing of products and
accessing to customers. Without suppliers, it is not possible to access to customers easily. In
reference of chosen entity, they are located at global scale & which shows that bargaining power of
supplier is low because company has option of selecting of other suppliers. So, bargaining power of
supplier is high when vendors are few and buyers are large in market, few substitute raw materials
exist, cost of switching over raw material is high (Walters, 2020).
Buyer power- It is another factor in which main focus is on buyer power and as it is
important in businesses to determine buyer power so that products are being produced accordingly.
It is often seen that buyer often demands for low bargaining with aim of achieving products at
affordable prices & with better quality. In context of Waitrose, bargaining power is basically low
because company targets middle class people & affordable prices are being charged from customers
9Warnaby, 2018). Bargaining power of buyers have a deep impact on enterprise overall distribution
process as well as decisions making.

Threat of new entry- In this force, it depicts about how new enterprise impact upon
business. In U.K, it comprises of small, medium and large enterprises. In retailing food business,
threat of new entry is high because most of customers still shops from open markets as low cost
products are present. It is necessary to states that with proper scanning business environment, new
entries are examined. It is critically crucial for firm to be aware about these new entries so that
strategies are implemented in appropriate manner. Threat of new entry is basically high when
customers do not find appropriate taste or satisfaction to brand, presence of few options of
switching etc.
Threat of substitutes- Substitute are defined as replacement of product or service. In
market, there many firms of same field, business, or service different characteristics or options. It is
important to focus on such substitutes so that customers behaviour, attitude are easily examined. In
relation of Waitrose, they too have substitute of their products like customer have options of
switching to Sainsbury, and other local grocery stores. Threat of substitute is high when customers
find it better options to satisfy their needs or demands (Xie, 2020). Also, another reason for
substitutes is switching depends on quality. In this flexible market, threat of substitute is relatively
moderate due to changing needs o
Industry rivalry- It is last factor in which it focus on degree of competition in market of
relevant field. It is also analysed with market analysis, it is easy to be aware about who are rivals
within marketplace that can negatively impact on entity's profit & sales ratio. It is duty of manager
to make assure that rivals of business are identified in proper manner so that decisions & strategies
are carried out with appropriate considerations. Furthermore, in relevance of chosen entity they
have number of competitors in market such as Tesco, ASDA, Morrisons, Kroger etc. who can
impact upon company's operations & customers.
So, with detailed analysis of Porter Five Force Model it is examined that accessing to
competitiveness makes it easy for organisation to make effective decisions regarding functions &
operations which are beneficial for growth. Moreover, it is also seen that company is able to
develop effective strategies for business after accessing to competitiveness in market.
Based on analysis, review organisational strategy
After analysing of above matter, it has been seen that Waitrose strategy is to produce
products & be different from others. With adapting of USP strategy, they are able to achieve
competitive advantage in proper manner. Further, they focuses on middle class people with
affordable prices and better quality. With this organisational strategy, entity easily attracts customers
within business. Also, it is reviewed that enterprise is improving their competency level &
developing their network across the globe with adapting of this strategy (Yuliansyah, 2017). Being

different & unique is important in this competitive market as it assist entity in achieving of goals
within period of time.
Moreover, this is stated that to measure the effectiveness of organisation strategy, review
techniques are being used by entity such as feedbacks, updating goals, developing own reflection
report, SWOT analysis are some of the technique of strategy evaluation which are used by given
firm. Thus, it is too analysed that appropriate type of knowledge, high level of expertise is needed
so that evaluation of strategies within company is made in correct manner. It is beneficial to
implement strategy evaluation so that risk are challenges are eliminated in future context. So,
adopting of being different from competitors strategy allows firm to achieve advantage in market at
appropriate level (Bayo-Moriones, 2020).
Thus, above explained matter shows that it is essential to review strategy so that changes or
improvement is done accordingly. Further, organisation is able to achieve goals appropriately by
reviewing organisational strategy (Birkin, 2017).

CONCLUSION
After a brief analysis of above report, it has been analysed that evaluating strategy is crucial
as it help in achieve of benefits in market appropriately. So, discussions have been made about
strategy management plan, PESTEL analysis, VRIO, Porter Five Force Model and review of
organisational strategy. It is essential for manager of firm to evaluate strategies & tactics that are
used for achieving of goals. Retailing market changes from time to time which makes it crucial for
businesses to adopt effective strategies. With entry of new businesses, improving sustainable
advantage has become important for enterprises. Main benefit of strategy evaluation is that it assist
in analysing decisions of strategy requirements. It comprises of feedbacks, reviews, rewards,
process of control. Manager of enterprise ensure that these are properly focused to carry out
evaluation appropriately. Carrying out strategy evaluation makes it easy for company to develop
future plan as well as goals in effective way.

REFERENCES
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Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 336-
357). IGI Global.
Gadema, 2019. The use and usefulness of carbon labelling food: A policy perspective from a survey
of UK supermarket shoppers. Food policy, 36(6), pp.815-822.
Goodman, 2017. Creativity and strategic innovation management: Directions for future value in
changing times. Taylor & Francis.
Hernández, 2018. The link between a firm s internal characteristics and performance: GPTW &
VRIO dimension analysis. Revista de Administração IMED, 8(2), pp.222-235.
Masih, 2019. Market Capturing and Business Expansion Strategy for Gluten-Free Foods in India
and USA Using PESTEL Model. Agricultural Sciences, 10(02), p.202.
Pooe, 2020. The evaluation of the supply chain management challenges South African fashion
designers experience in the retail clothing environment. Journal of Business and Retail
Management Research, 15(01).
Seth, 2019. The grocers: the rise and rise of the supermarket chains. Kogan Page Publishers.
Sharma, 2018. Tourist shoppers’ evaluation of retail service: A study of cross-border versus
international outshoppers. Journal of Hospitality & Tourism Research, 42(3), pp.392-419.
Stverkova, H. and Pohludka, M., 2018. Business organisational structures of global companies:
Use of the territorial model to ensure long-term growth. Social Sciences, 7(6), p.98.
Walters, 2020. Strategic Capability Response Analysis. Springer International Publishing.
Warnaby, 2018. Pop-up retailing: Managerial and strategic perspectives. Heidelberg: Springer.
Xie, 2020. Digital twin for cutting tool: Modeling, application and service strategy. Journal of
Manufacturing Systems.
Yuliansyah, 2017. The significant of business strategy in improving organizational performance.
Humanomics.