Strategic Analysis of Iceland Supermarket: A Business Report

This report provides a detailed analysis of Iceland Supermarket's business strategy. It begins by explaining strategic context and terminologies such as mission, vision, objectives, goals, and core competencies. The report then identifies issues in strategic planning and explores techniques like the BCG Matrix and Product Life Cycle. Task 2 delves into organizational and environmental audits, including SWOT and McKinsey 7-S frameworks, and PEST analysis. The report examines internal and external factors affecting Iceland Supermarket, offering insights into its strategic position and potential strategies for achieving its goals. Finally, it outlines resources, roles, responsibilities, targets, and timescales for strategy execution, offering a comprehensive overview of the company's strategic approach.

BUSINESS STRATEGY

INTRODUCTION
Strategy is a plan which helps to the company in order to achieve vision, goals and long
term objectives of it. By using strategy the management is highly able to make the firm more
profitable in the sector where it serves its products and services. There are various kinds of
strategies are to be formulated by the manager which helps to achieve different objectives. For
analyse about the business strategy Iceland supermarket company is selected which is UK based
private limited entity operating in the retail sector. Key products of it are such as frozen food
items as well as grocery products. The present report describes about number of terminologies
which are used by the Iceland along with constraints occurs in strategic planning. The second of
part of report shows regarding organisational and environmental audit using different models.
Apart from this it looks upon number of strategies which can be used by Iceland supermarket to
achieve goals and vision in effectual manner. At the end of report it focuses on resources, roles,
responsibilities, target as well as timescales which require to execute new strategy in Iceland
company.
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TASK 1
1.1 Explaining strategic context and terminologies
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In the business entity there are various kinds of terminologies are used which are
achieved with the help of different strategies. In the organisation, with the context to strategic
there are several aspects are to be used and added. With reference to the Iceland supermarket
different business terminologies such as goals, mission, vision, objectives, core competencies
etc. are analysed as below:
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Mission: To increase market share by 18% in the retail industry.
Vision: To become a leading brand in overall retail industry across the world.
The Iceland supermarket has vision and mission and due to this it operates in the retail
sector in UK. Mission of the firm is to enhance market share by 18% in the overall retail industry
with the help of attracting more customers. Further, vision is to become a leader of retail industry
in the whole world.
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Objectives are those which helps to management of Iceland supermarket in order to meet
with the vision and mission. Further, different business objectives of Iceland supermarket are
such as follows:
Objectives:
 To attract more number of customers towards Iceland supermarket for purchasing its
products.
 To achieve economies of scale.
 To improve financial position in the retail industry.
 To gain competitive advantage with the help of cost.
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Goal is a term used by the firm in order to meet with various formulated objectives. It
shows strategies and tactics which is used to achieve objectives and goals of Iceland supermarket
are given as below:
Goals:
 Use highly effectual and attractive marketing strategies like as internet and social media
networks.
 Increase level of production which lead to reduce total costs and expenditures.
 Control over the miscellaneous expenses and enhance profit.
 Using cost leadership strategy to attract more customers.
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Core competency shows that the Iceland supermarket is in which term having expertise
for attracting customers. Moreover, core competencies of it are such as follows:
Core competencies:
 Providing food products with high quality to the customers.
 Attracting consumers by offer food items with high nutritions and hygienic.
 The Iceland charging lower prices of frozen food and grocery items from buyers.
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1.2 Issues which are involved in strategic planning
Strategic planning is a process in which objectives are determined and strategies have
been formulated to reach the targets. Iceland supermarkets have formulated these strategies but
the issues that they are facing are:
 Have a plan: just having a plan for the sake that others are also having plan does not
gonna get success. What the business entity plan, gets the result accordingly.
 Not understanding the market: They do not gain the proper understanding of the
market . The cited entity needs to know the market conditions so as to get the desired
results. Priorities must be set.
 Partial commitment: When the owners of the entity are not fully committed towards
their business , then the strategies fail.
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 Involvement of wrong people: When the people don't have interest in the plan they will
not care about the success of the plan. So the people who vision is this, must be involved
in the plan as they will do every possible thing to make it successful.
 Not monitoring: The plan needs to be monitored at every step to check its progress, and
to see whether the plan which was made by the cited entity is going in the right direction
or not.
 Wrong leaders : Having the wrong leaders for the plan can ruin the entire company. It
should be make sure that only the right person should be given the charge to lead the
project as he will make all the efforts to make that plan a success.
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1.3 Explaining various techniques for strategic planning
There are mainly two techniques used for strategic planning are such as BCG Matrix and
Product Life Cycle which are explained as below:
Boston consulting group has identified the matrix that helped the Iceland supermarket to
analyse and assess their product's line and portfolio. It measures on the basis of growth of
product within the market and with that of competitors.
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