Strategic Evaluation of Lulu Hypermarket: Business Performance Report

This report provides a strategic evaluation of Lulu Hypermarket, a prominent retail chain. It begins with an introduction to the company, its history, and its mission and vision. The report then discusses the purpose of the organization, emphasizing the importance of setting goals for employee motivation and customer loyalty. Business ethics within the company are examined, highlighting the need for adherence to ethical guidelines. The Bowman's strategic clock is applied to analyze the company's strategic positioning. A critical evaluation of Lulu Hypermarket is conducted, including strengths, weaknesses, opportunities, and threats, with strategic recommendations for improvement. The report concludes by summarizing the key findings and recommendations, emphasizing the importance of employee training, customer feedback, and online marketing strategies for future growth and success.

Strategic
evaluation of
Lulu
Hypermarket

Table of Contents
INTRODUCTION...........................................................................................................................1
The purpose of organization is laid done before anything else...................................................1
Business ethics ...........................................................................................................................2
The Bowman's strategic clock position.......................................................................................2
Critical evaluation of the company.............................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
The company that is been chosen for this project is Lulu hypermarket. It is a well-
known and popular hypermarket chain and retail venture (Lulu Hypermarket, 2017). In
the year 2000 it is been started by Lulu Group International. The headquarters of the
company is located at Abu Dhabi, UAE. The number of employees that are been
working in this company are about 35,700.In Asia and it is one of the largest retail
chains and in the Gulf cooperation council it has about 128 outlets. In 1995 Lulu group
opened its first supermarket in United Arab Emirates. The fresh and frozen food stuff
and fresh fruits and vegetables are been offered by the company across the globe. The
vision of the Lulu hypermarket is to achieve the Number 1 position in organized retail
sectors of the regions in which they deal in and for the current and future multi-ethnic
employees strive the most preferred employer (Wheelen and Hunger, 2017). This retail
company wants to become a global retail brand. The mission of this company is to give
its customers a unique experience of shopping with unmatched quality in context to
product and services. They also want to find out new market opportunities and to all
their business associates they want to add value. The core values of this company is
innovation, commitment, integrity and accountability.
In this report strategic evaluation of the Lulu hypermarket will be done. The
theories of strategic management will also be represented in this report. The critical
analysis of the current possession and challenged that is faced by the company will also
be done.
The purpose of organization is laid done before anything else
Basically the purpose of the organization are the written goals that are a part of
their business plan. In terms of market share, growth and profitably these purpose can
describe the plans of the company. For the internal measurement of staff the purpose
may be set (Morgeson and Siegel, 2013). This will expand or motivation among
employee morale in the company. The purpose of this company is to create a high-
quality product for its customers and also to earn the lifetime loyalty.
The goals, objective and purpose of the organization mainly motivates the
employees in order to do their work well in order to achieve the goals of business. The
theories such as Humanistic theories of motivation can be used in order to encourage
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employees. In this theory the needs of employees such as safety, psychosocial ,
esteem etc can be satisfied (Ostrom, 2014.). The other theory that can be used is
arousal theories of motivation. The performance of the employees can be influences
through this theory.
Business ethics
It is been expected from all the employees that are working in the company to
adhere to ethical guidelines (Marler and Fisher, 2013). In compliance with all applicable
laws and regulation the business need to be done in Lulu hypermarket. The illegal
activities should not be tolerated by the company that is been done for personal and for
professional reason. In all dealings with other employees, the customers, the
shareholders and government authorities the company need to be honest and
honourable. All the laws need to be adopted by the company in order to make sure
protection of health and safety of the employees. The normative theories can be sued
that will help to differentiate between right and wrong doing at the business.
The Bowman's strategic clock position
The options of strategic positioning is been explored by Bowman's strategic
clock. The variety of options that is been available for the business in order to position
its product in two dimensions that is price and perceived value is been illustrated by this
model. For the business status of the company the position 4 differentiation is
applicable (Gans and Ryall, 2017.). As the main purpose of this company is to generate
more number of customers by providing them with high-quality goods at relative prices.
The company wants to produce loyalty among customers so that they visit their
supermarket again and again so this position will be fit for the business strategy of this
company.
Critical evaluation of the company
Contexts or framework Critical analyses Strategic recommendation
Strength  The good quality
products and
services are been
given (Renwick,
Redman and
 The company should
continue to
manufacture high-
quality products for
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Maguire, 2013).
 As it is an old chain
so brand loyalty is
there
 In GCC it is the
fastest growing
retailer.
its target customers.
Opportunities  It has an opportunity
to grow it business
globally in UK
logistics
 The customer loyalty
programs can also
be used by the
company(Friesl and
Kwon, 2017)
 The social marketing
through Facebook,
twitter, YouTube etc
can also be used.
 The customers loyal
programs need to be
launched by the
company
 The discounts should
be given by the
company in order to
do promotion
 The
Facebook,twitter,
online marketing is
recommended for
this company
Weakness  The feedback of
customers is note
take seriously it is
been neglected
 The appropriate
training is not been
given to the staff and
also they are not so
qualifies (Durand,
Grant and Madsen,
 The training
programs for the
employees need to
be arranged by the
company so that they
are aware about their
job more in detail.
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2017)
Threats  Due to poor CRM the
reputation is been
loosen by this
company.
 The huge
competition is been
faced by international
mass grocery items
 This company is also
not politically stable.
 The feedback of
customers need to
be take seriously in
order to gain its
reputation back in
the market.
CONCLUSION
Thus summing up the above report it can be concluded that Lulu Hypermarket is
popular retail market in UAE. The objective of the company is to give its customers the
good quality products and services (Baumgartner and Rauter, 2017). The motivation
among employees can be generated through Arousal theories of motivation .The
business ethics helps to differentiate between right and wrong doing. The training need
to be organized by the company in order to make employees aware about their job roles
and responsibilities. It is recommended that company can make use online marketing in
order to do promotion of its products and services.
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REFERENCES
Books and journals
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate
sustainability management to develop a sustainable organization. Journal of Cleaner
Production, 140, pp.81-92.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Friesl, M. and Kwon, W., 2017. The strategic importance of top management resistance:
Extending Alfred D. Chandler. Strategic Organization, 15(1), pp.100-112.
Gans, J. and Ryall, M.D., 2017. Value capture theory: A strategic management
review. Strategic Management Journal, 38(1), pp.17-41.
Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic
human resource management. Human Resource Management Review. 23(1). pp.18-
36.
Morgeson, F.P., and Siegel, D.S., 2013. Extending corporate social responsibility
research to the human resource management and organizational behavior domains: A
look to the future. Personnel Psychology. 66(4). pp.805-824.
Ostrom, E., 2014. Collective action and the evolution of social norms. Journal of Natural
Resources Policy Research. 6(4). pp.235-252.
Renwick, D.W., Redman, T. and Maguire, S., 2013. Green human resource
management: A review and research agenda. International Journal of Management
Reviews. 15(1). pp.1-14.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy.
Pearson.
Williams, C., Chen, P.L. and Agarwal, R., 2017. Rookies and seasoned recruits: How
experience in different levels, firms, and industries shapes strategic renewal in top
management. Strategic Management Journal, 38(7), pp.1391-1415.
Online
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Lulu Hypermarket. 2017. [Online] Available through:
<http://www.muscatdaily.com/Archive/Oman/Lulu-rises-to-be-among-top-250-
global-retailers-3snk/>.
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