Business in Practice: Local Grocers' Strategic Analysis Report

This report provides a comprehensive analysis of Local Grocers, a small-sized online supermarket. It examines their business practices, including marketing strategies, pricing, and distribution channels. The report identifies key challenges such as expensive delivery, low-profit margins, and competition, and uses SWOT and PESTLE analyses to assess the company's strengths, weaknesses, opportunities, and threats, as well as external factors impacting the business. The report proposes strategic solutions like low pricing, good communication, and effective supply chain management to enhance performance and sustainability. Furthermore, it recommends the implementation of Co-Op Robot Delivery to reduce costs and improve customer satisfaction. The analysis also covers the application of academic theories and models to solve business issues and make effective decisions. This report provides valuable insights into the business operations, challenges, and strategic solutions of Local Grocers.

Business in Practice
BSS065-3

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................8
REFERENCE ................................................................................................................................10

INTRODUCTION
Business practices can be defined as important laws and regulations which are formulated
by company in order to operate their business and increase the profitability. A company have
different rules and practices that should be followed by management to manage their employees
in efficient manner and maintain the productivity as profitability (Weking and et.al., 2019). If
organization is following all activities then it will be opportunity to attracts the large number of
customers and develop the business performance. The present report is based on Local Grocers
that is small size supermarket, providing range of products and services in changing environment
and operating all functions effectively. The organization is also attaining the competitive
advantages by develop the activities and functions which helps to maintain the higher
performance. The reports identification of problems which are facing by company, strategic tools
that supports to operate the business, and change management that can help to expand the
business.
MAIN BODY
Identify some potential projects within the company environment and may choose one from
the range of projects that are identified.
In business environment, number of businesses are running as well as operating where it
is important to bring the new products and services that can help to operate the business and
increase the profitability. The aim of company is to identify the project and start to work on them
so that business can develop their performance and profitability. Local Grocers is a small size
online platform that is providing variety of products and services which fulfil the customers
demand and develop the productivity. This is newly established company in April 2020 that
manages all functions and activities effectively. The marketing management of chosen
organization analysis the environment and conduct market research which maintain the all
functions and activities accurately. The customers of such organization are segmented on
demographic and geographical basis where organization is targeting all ages of people by
offering variety of products and services so that business could be maintain effectively
(Szopinski and et.al., 2020).
The distribution channel which uses by chosen organization are advertisement, e-mails,
print media and social media that reaches the number of customers by offering variety of
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products and services in changing environment that increases business performance and
profitability. To develop the business activities and productivity management conduct the
analysis and bring new products as well as services which can help to reach the targeted
customers and maintain the good performance. Prices is important aspects and factors which uses
by organization to set the right price of their products and services that increases the sales and
profitability. In relation to Local Grocers, lower price is adopted by organization that is
influencing the number of customers and increases the performance in challenging environment.
By offering numerous products at different prices organization can develop their performance
and productivity (Sigala and Robinson, 2018).
Issues and challenges facing by business industry
Local Grocers is a small size online platform that is providing variety of products and
services in changing environment and maintain the good image. While operation and
management different types of challenges and issues are facing by company that are as
explained:
Expensive delivery – This means organization is facing the challenges in managing and
operating the business in defined marketplace which affected the organizational productivity.
Such as Local Grocers is facing the challenge of expensive delivery where its operation and
management can be affected negatively as customers are not ready to pay extra for their delivery
so they go towards other brand which affected the profitability.
Low profits margin – This is another issue which is facing by Local Grocers in
challenging environment and as number of organizations are operating their business by
offeri8ng variety of products and services. This can be challenge for existing company how to
sustain in environment as it make decision to reduce the prices of their products which become a
reason of low profitability (Park, Park and Hirachi, 2018).
Entrance of new industry – In the grocery market and place there are many new
organizations which are entering in the environment by introducing new products and services.
This might be affect the sales and productivity of Local Grocers as management launches new
products and services in the market who identify the products and develop the business
performance so that all activities can be maintain effectively.
Cut throat competition – This issue is also facing by Local Grocers as number of brand
and organizations are existing in the environment where it is important to identify the
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competition and launch the products as well as services accordingly. This issue has created the
problem for operation and proper management of business activities in changing environment.
To reduce the negative impacts management is responsible to research the market that are as
defined:
In relation to Local Grocers, marketers is responsible to conduct the market research by
analysing different tools and techniques that can help to manage the all activities and
performance. To increase the sales and profitability management identify the needs and
requirements of their customers, social trends, attitude and regulations that can help to operate
the business and increase the performance. In the business environment, there are many
supermarket which are analysed by marketing management to fill the requirements and
developing the potential growth of company by managing and organization all functions and
activities (Palepu and et.al., 2020).
To develop the business performance and attaining the higher profitability Local Grocers is
focusing on business case elements such as:
Marketing and internet – For all organization it is important aspects that analysis the
needs of customers and provide the kind of products by using different marketing channel and
activities that can help to reach the targeted customers and maintain the higher productivity. The
aim of Local Grocers is to understand requirements and introduce the products as well as
services which can help to reach the potential customers and develop the business performance.
The management uses social media, print media, Face Book. Twitter and others internet
marketing activities which can help to operate the business and manage the all activities
effectively. This brings the changes in their existing products and attain the higher profitability.
Strategy – This can be explained as important tool and technique which are uses by
organization to reach the targeted customers and develop the business performance by reducing
the issues and and managing all activities. Local Grocers is using different types of business
strategies that are as explained:
 Low pricing strategy – As customers are price sensitive who focuses on products which
are available on lower cost that can help to reach the targeted customers and maintain the
good performance. By adopting the low pricing strategy Local Grocers can influence
number of customers in higher range which would help to solve the problem and increase
sales (Márquez, Marugán and Papaelias, 2018).
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 Maintaining good communication – Communication is the important aspects for
running a business as it can help to increase the understanding of customers and
employees regarding products and services which are providing by organization. This is
important for organization to understand what their customers wants and how they can be
satisfied which affected the organizational performance. In relation to Local Grocers,
marketing and production management uses proper communication strategy which
encourages number of customers towards products that helps to fill the needs and
increase brand image in competitive environment.
 Effective supply chain and distribution – The selected organization can increase its
sales and profitability by maintaining the good supply chain and distribution channel
which can help to increase the sales by reaching the targeted customers and managing the
all activities. In the changing environment marketing management of Local Grocers is a
small size online platform that analysis the all activities of supply chain and manage the
functions which can help to develop the business performance and profitability
(Mandych and et.al., 2018).
Organization sustainability
The meaning of sustainability is defined as organized group of people that aims to
advance sustainability and live for long period in the competitive environment. The management
of business organization is responsible for all functions and activities then bring the changes
which can help to fill the customers requirement and attain the higher profitability. Local
Grocers is a small size online platform where it is operating their business introducing good
quality of products and services in changing environment and maintain the performance in
changing environment.
New products and services
For attaining higher productivity and profitability in competitive market it is important
for organization to introduce new product and services that can help to attracts the number of
customers and manage the all performance effectively. As Local Grocers is facing the issue of
expensive delivery which is major problem for organisation to manage their functions and
activities. Marketing manager of chosen organization have decided to introduce Co-Op Robot
Delivery that would help to reduce the cost of delivery which is reducing the profitability. By
providing robotics delivery of organization provide the delivery of their product to their
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doorstep. This can help to attracts the large number of customers in changing environment and
maintain the higher profitability. The management identify market and analysed that it is the
convenient way for consumers to get their groceries delivered to their doorstep that provides the
higher satisfaction by reducing unnecessary cost of delivery which affected the productivity and
profitability. Moreover, if someone tries to steal the products along the way, the robots would
contain 9 cameras to capture the face of thief and let the operator to take back.
From the above elements in relation to business case, it has recommended to chosen
organization that bring the uses of Co-Op Robot delivery that will help to attracts the number of
customers and manage the good performance in competitive environment which helps to attain
the higher productivity and profitability by managing all activities and functions effectively
(Lahti, Wincent and Parida, 2018).
Appropriate problem-solving methods to identify the key issues and recommendations
Academic theories
Different theories and methods are uses by organization for solving business issues and
making the effective business decision by developing all activities and functions. The
management of Local Grocers is applying different academic theories and models for operation
and managing the activities that are as explained:
SWOT analysis – This is a framework which uses by organization to analysis the
strength and weakness by managing all functions and activities that increases the performance
and profitability. The SWOT analysis in context to Local Grocers are as defined:
Strength Weakness
 Local Grocers is providing multiple
category of products and services in
wider range (Battistella and et.al.,
2018).
 The organization is having enough
source to supply and distribution.
 Home delivery is provided that
influences number of customers.
 Skilled and committed employees who
 The alternative of products which are
providing by company are exists.
 Changing in lifestyle of people
 New generation habituated to purchase
anything from super shop.
 Having number of competitors in
market place (Kravchenko, Yusupova,
and Kuznetsova 2019).
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manages all functions.
 Managing all functions and activities in
appropriate form.
Opportunities Threats
 Focusing on customers demand and
requirements.
 Developing range of products and
services.
 Using innovation time to time .
 Co-Op Robot delivery that influences
number of customers and offer range of
products.
 Understanding roles and responsibility
then allocation of work properly.
 Political instability and government
regulations.
 Financial stability in particular country.
 Transportation and distribution issues.
 Changing in climate and increasing cost
of organization.
PESTLE analysis – For every organization it is important to analysis the environment
that is related to external. This provide the understanding that which factor is affecting the
organizational performance and productivity. The PESTLE analysis in context to Local Grocers
are as explained:
Political factor – This involves government policy, labour laws, trade restrictions,
foreign trade, and tax policies which are decided by government in order to operate their
business and manage the all activities. Reduction in tax rate is good opportunity for Local
Grocers as it can increase the sales by influencing number of customers and managing all
functions. As Pandemic is occurring in whole country where government has regulated new
regulation to stop the business and trading activities during lock down period that has affected
the productivity and sales of chosen organization.
Economical factor – This factor involves exchange rate, economic growth, inflation
rates, disposable income and others that mainly consider to focus on organizational performance.
The rate of inflation has been decreased where the Local Grocers is a small size online platform
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is operating their business that can be good opportunity for selected organization to operate the
business and manage the all functions effectively (Ghauri, Grønhaug and Strange, 2020).
Social factor – This factor involves population growth rate, career attitudes, health and
safety, life style and attitude that has impacts on organizational performance. As environment is
changing where needs and wants of customers is also changing, Local Grocers is obtaining this
facts in their business and fill the all requirements which can help to operate the business and
manage all performance. On the other side, Due to Covid -19 sales activities of organisation has
been reduced as customers are demanding healthy, organic, and hygienic products which created
the challenge for organization to operate their business (Amankwah-Amoah, Khan and Wood,
2020).
Technological Factor – This factor is related to technological incentives, research and
development activity, technical awareness, automation and innovation that uses by organization
for managing all functions. By using the new technology business operation of Local Grocers
has been increased as it introduced the Co-Op Robot delivery which could help to increase the
number of customers in changing environment. This can help to increase business performance
and profitability by managing all functions and activities effectively.
Legal factor – This factor involves employment laws, copyright and patent law,
discrimination laws, health and safety laws etc. that has affected the organizational performance.
In relation to Local Grocers, management is following all regulations and laws in relation to
operating a business accurately and managing all activities that develop the business
performance and profitability in competitive environment.
Environmental factor – This is another factor which is related to keeping clean and safe
to environment by following all regulations that has affected the productivity and profitability.
Local Grocers is managing all environmental activities as reduction in wastages, reducing carbon
emission and others that can help to operate the business and manage the all performance
effectively. This develop the higher productivity and profitability in competitive environment
(Fjeldstad and Snow, 2018).
Therefore, by using the PESTLE analysis Local Grocers is operating their business in
changing environment and maintain the good performance by following all regulation which are
formulated by government.
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Porter's 5 forces model – This can be defined as important framework that mainly uses
by business industry to know their activities and bring the competitive advantages by operating
all functions. Local Grocers is small size supermarket that is considering all forces for the
purpose of developing performance and attaining profitability that are as explained:
Bargaining power of suppliers – This means people who have contacts with
organization and providing raw material and stock in bull to retailers at decided price that can
help to operate the business and manage the all functions. In relation to Local Grocers suppliers
is having high power as many supermarket are available in market and number of suppliers are
less that can be challenging situation for organization to buy material at high prices that might be
affected profitability.
Bargaining power of Buyers – This means people who buys the products and services
by selecting a best option. In relation to Local Producers there is moderate power of buyers
reduce the price of products. This can be provide opportunity to chosen organization as to
operate their business by offering better quality of products at lower prices which can help to run
the business and develop the business performance (Ferrell, Harrison, Ferrell and Hair, 2019).
Threat of substitutes – This means products which are substitutes of original product
can fill the customers demand and maintain the good performance. In case of Local Grocers,
there is high threat of substitution which affected the organizational productivity and profitability
in changing environment. This has created the challenge for chosen brand as how to manage the
all activities and functions.
Threat of new entrants – In business environment new businesses are entering with new
products and services that can be affected the organizational productivity and profitability. In
relation to Local Grocers, there is high threat of new entrance that can be affected the
organizational productivity as new competitors can enter in to market and created the challenge
for organization to operate their business (Fang, Siau, Memili and Dou, 2019).
Threat of competition – In business environment there are many competitors which are
running their business by maintaining competition and providing products. In relation to Local
Grocers, there is high threat of competitors such as Tesco, Sainsbury, Farm foods and others
which might has created the challenge for organization and reduced the profitability.
Thus, Local Grocers is required to manage all functions and activities by offering better
quality of products at affordable prices which can help to increase the organizational
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performance and profitability effectively (Brennan, Canning and McDowell, 2020). This
influences the number of customers and attain the competitive advantages by arranging all
activities.
Solution to get more profits and becoming competitive
Local Grocers is a small size online platform that is facing the competitive challenges
and continuously changing needs of customers which affected the profitability. For increasing
the profitability, management should be expand their business by focusing on geographical
market and needs of customers. The organization should also needs to introduce new innovation
in delivery as fast and different food items that would influence the more customers and develop
the organizational performance in competitive environment. To become the more competitive
selected organization management is required to formulate effective strategies and planning time
to time that can help to provide new services and retain them for long period that develop higher
brand image.
CONCLUSION
From the above report it can be concluded that business practices is important aspects of
organization that needs to complete the activities in effective time period. The management of
organization is responsible to analysis the needs of customers and provide the products
accordingly which can help to develop the performance and provide higher profitability. Porter's
five forces uses to get competitive advantages and PESTLE analysis uses to know which factor
might be affected the organizational profitability.
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REFERENCE
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Ferrell, O. C., Harrison, D. E., Ferrell, L. and Hair, J. F., 2019. Business ethics, corporate social
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About organization situation. 2020. [Online]. Available through:
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