Business Strategy: Macro Environmental Analysis, Capability, Competitive Analysis

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1: Macro Environmental Analysis.................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...............................................................................3
SECTION 2: Capability...................................................................................................................7
Analyse the internal environment and capabilities of Ocado using appropriate frameworks.7
SECTION 3: Competitive Analysis...............................................................................................10
Apply Porter’s Five Forces model and evaluate the competitive forces of a given market
sector for Ocado...................................................................................................................10
SECTION 4: Strategic Plan...........................................................................................................13
Applying a range of theories, concepts and models, interpret and devise strategic planning for
Ocado....................................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy generally means the actions and decisions which is taken to achieve the
goals and objectives of the organisation. Thus, these strategies also helps to secure the
competitive position in the market. Without strategy company is nothing and even there will be
no smooth functioning of organisation (Chen, Eshleman and Soileau, 2017). Business strategy is
a plan which is implemented to create a place in the market and a strategic move which is used to
attract the people towards firm. Business strategy are further divided into various types they are
cost leadership, differentiation, focused cost leadership, focused differentiation (FERNIE,
FERNIE and MCKINNON, 2018). This project is based on the company Ocado which is one of
the largest food retailer organisation it has no physical shops they operate through internet, they
work according to the strategies which is formulated by them. The mission of the company is to
give their customers wow feeling through fair value and convenience.
SECTION 1: Macro Environmental Analysis
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
The strategic positioning of Ocado and its mission statement and long term goals
The strategic positioning of Ocado determines the performance of the company in the
market, the organisation strategic positions should be different from its competitors positions in
the market. Customers get to know easily that whether the organisation is competing on quality
or price (Lin and et. Al, 2021). The strategic positioning of Ocado is to provide the products to
its consumers with best quality. The five strategies through which Ocado can determine their
positioning are-
 Positioning based on their product characteristics
 Positioning based on price
 Positioning based on quality
 Positioning based on product use
 Positioning based on competition
Mission of Ocado-
The mission of Ocado is to make their customers feel wow experience with incredible
combination of unbeatable range, convenience and fair value.

Values of Ocado-
The company beliefs in the team work, by depending on each other they can transform
from something good to something great. Each individual can make a big difference by
achieving the goals by going extra mile (Martínez Hernández, Sánchez‐Medina and Díaz‐
Pichardo, 2021).
Objectives of Ocado-
The objective of Ocado is to provide the products to their customers conveniently without
going to supermarket every week. The organisation can create a new shopping experience for the
customers by meeting their needs and demands.
Ocado PESTEL Analysis
The Pestel analysis is conducted to identify the external factors that affect the operation
of the business (Quenum et. al 2019). It helps Ocado to analyse the forces of external
environment that could change the strategy and competitive edge. The macro environmental
factors are as follows-
PESTLE
Analysis
External factors to
consider
Factors affected within industry Importance
to
organisatio
n
Political Political instability If there is high political stability it
provides a friendly business environment
with market growth and the trust of
stakeholders get reduce in economic and
organisational performance if there is
political chaos (Olson and et. Al, 2021).
Ocado is established in different countries,
each country have its own political
tensions. Instabilities and tensions affect
the growth opportunity available to Ocado.
High
Change in
Government
If there is change in government policies it
will affect the performance of Ocado by
High

policies increasing environmental uncertainties.
Ocado must study the current and future
trends as fluctuations in government
policies may divert the priorities of
government towards the development of
industries.
Economic Economic Growth,
development and
infrastructure
The performance of Ocado get affected by
economic development of a country.
Ocado must understand the life cycle of
the industry, as entering into mature
industries is challenging for the company
due to its market saturation.
High
Labour Market
Conditions
The wage rate is determined by the
demand and supply of the labour (Liu and
Kong, 2021). Ocado have to study the
labour market conditions to know how to
attract the talent labour and use their skills
to improve the performance of
organisation.
Medium
Social Online shopping
trend
In Today's world, customer prefers to
purchase through online platforms, social
media and e-commerce have developed
online shopping behaviour among people.
Ocado have to know the online shopping
behaviour of customers on the basis of
generation differences.
High
Disposable income
and buying habits of
the consumer
The customers spending pattern are
determined by their purchasing power,
Ocado must have to invest their time to
know the trends and consumption
Medium

motivations that could define the
consumption behaviour of the customers.
Technological Technological
Innovations
Ocado have to look out the technological
innovation to be competitive in the market,
this helps to bring transformation in the
industry. Ocado can increase their market
share by keeping eye on emerging
technological innovation.
High
Research and
development
activities in new
technologies
Ocado should invest in research and
development to find out how the new
technologies can affect the value chain and
cost structure of company. Ocado must
invest in technologies to ascertain the
profit and re-invest that profits for future
technologies.
Medium
Environmental Waste management
Activities
Ocado have to work by minimising the
wastage, as environment pollution with
technological advancement has brings the
companies to use waste management
practices.
Medium
Climate Conditions A Change in weather and climate
conditions can enhance the cost of
operation that makes Ocado to make value
chain more flexible. These changes affects
the consumers spending pattern and the
have to revise its marketing and product
strategies (Salehi and Arianpoor, 2021).
High
Legal Intellectual Property
Law
This law is created to protect the patents
and valuable ideas of the organisation. If
the company haven't protect their
Medium