Strategic Management Report: Analysis of Park Towers Supermarket

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This report provides a comprehensive strategic analysis of Park Towers Supermarket, a leading supermarket in Malta. It begins with an overview of the organization and delves into external environmental factors using PESTLE analysis, covering political, economic, social, technological, legal, and environmental aspects. The internal environment is examined through value chain analysis, focusing on primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services, as well as support activities such as infrastructure, technology development, human resource management, and procurement. The report identifies technology advancement as a key strategic advantage for Park Towers, emphasizing its potential to enhance competitiveness through online services and improved inventory management. Furthermore, the report evaluates the alignment of organizational culture, leadership, and performance with the supermarket's strategic execution, highlighting the importance of leadership in adopting new technologies, management's role in providing workforce training, and the impact of a positive organizational culture on employee retention and business performance. Finally, it suggests strategic improvements related to specific areas to help the company grow and succeed in the retail sector.
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STRATEGIC
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1- STRATEGIC POSITIONING.....................................................................................................3
A- Organization overview............................................................................................................3
B- External environment analysis................................................................................................3
C- Internal environmental analysis..............................................................................................4
D- Strategic advantages...............................................................................................................6
2- EVALUATE STRATEGIC EXECUTION.................................................................................7
Critically examine whether the organizational culture, leadership and performance of
supermarket more effective in achieving its tactic......................................................................7
3- STRATEGIC IMPROVEMENT...............................................................................................11
How can internal change improve the strategic advantages......................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Strategic management is defined as procedure of setting aims, processes and objectives for
purpose of making a company more productive and competitive in the world of business. The current
assignment will be based on Park Towers, which falls under the category of top 10 supermarkets in the
Malta. The study will explain internal & external environment analysis regarding chose supermarket. It
will also define alignment of leadership, organizational culture and performance with strategic
advantages. Furthermore, lastly the report will justify strategic improvement related to specific area that
help company to grow and gain success, while operating in retail sector.
TASK
1- STRATEGIC POSITIONING
A- Organization overview
Park Towers supermarket is listed in category leading supermarket in the Malta, because it has
provided quality and better quantity of products to customers (7 Of Malta’s Favourite Supermarkets,
2021). In order to enhance the satisfaction level of customers, it has taken varied initiatives. For example,
supermarket and its management has taken strategic action to retain consumers in term of developing plan
to offer discounts. They take action to make a discount outlet where individual person may purchase
many things according to their needs and requirements whether it is food item or other grocery products.
B- External environment analysis.
PESTLE Analysis-
Political factor-
Political factors such as political stability, trade policy, tax rate and more are included in category
of external forces that may put direct impact on a company. In case of Park Towers, political stability in
Malta may provide great chance to grow venture in term of business expansion.
Economic factor-
Economic growth may also affect firm in positive manner in form of providing opportunity to
retain potential shoppers and increase profitability after selling quality products with better quality
(PESTLE Analysis, 2021). It may affect supermarket positively and allow to become a top brand in the
retail sector.
Social factor-
Change related to any social factor whether it is market trends or consumer lifestyle, put direct
impact on the way a firm is managing and running their business. In case of chosen supermarket,
customers trends may put positive impact as it may drive the attention of firm toward adding more vegan
items into the list of products that they may have.
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Technology factor-
Technology advancement may provide organization opportunity to generate excellent brand
awareness across national boundaries, which is quite essential and beneficial for marketer to do it.
Legal factor-
Employment law, business policies and customers privacy regulations may also provide firm
chance to grow productively in term of following regulatory framework that help to sustain in new as well
as existing market forever.
Environmental factor-
It is one of those external chances that Park Towers may grab in way to become a sustainable
supermarket in the industry. For example, it may take approach to follow the concept and conduct CSR
practices.
C- Internal environmental analysis
Value chain analysis-
Primary activities-
Inbound logistics -
Park Towers may use its resource and ability in appropriate way, in term of building strong
workforce in the workplace among which each candidate conducts effective and useful actions. They may
take approaches to achieve strategic aims and objectives of supermarket that is essential.
Operations-
It may take action to utilize the best and most effective inventory system as well as approaches,
which boost operational effectiveness and productivity of supermarket that in return increase sales and
manage inbound operations appropriately (WHAT IS A VALUE CHAIN ANALYSIS, 2020). It may
contribute to manage inventory function in effective manner.
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Outbound logistics-
In order to conduct this practice in effective and systematic manner, management may take
decision to build relation with sustainable suppliers and establish own warehouse where additional
products stock may keep safe and store. It is important and beneficial for them to do that because of on
time deliver to customers, when they need something.
Marketing and sales-
It may take approach to use the resources and effective capabilities in term of generating the
revenue via strategic marketing plans that may contribute to generate more sales (Value Chain Analysis,
2021). With the help of useful advertising strategies, marketers may increase profitability of supermarket
and generate great brand image worldwide.
Services-
After sale service is the key resource or capability of supermarket, that enable management to
acquire and retain potential customers who are taking interest to become a loyal consumer of well-known
brand such as chosen one. This form of service may enable buyers to stay with company forever.
Illustration 1: Value Chain Analysis
(Source: Value Chain Analysis, 2021)
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Support activity-
Infrastructure-
The organizational structure of chosen supermarket is not that much effective as it may lead to
create complication for employees to work on daily basis. The structure or size of organization is not
wide, which may make buyers unable to shop happily and find out the products that they prefer to
purchase.
Technology development-
Park Towers management may take approach to use this resource in term of implementing
advanced technologies that enhance organizational performance and productivity level. With the help of
this key asset, firm may grow effectively and productively in term of generating revenue and improving
brand image in the market.
Human resource management-
A key resource that firm may use to gain competitive benefit is current one. It can be said that
with skilled, knowledgable and talented employees' organization may grow rapidly and develop strategic
plans that they may effort to achieve successfully and appropriately.
Procurement-
Organization is able to become a sustainable brand by conducting this activity in effective
manner. For example, Park Towers as leading supermarket may take approach to build trustworthy
relation with sustainable suppliers who are able to deliver and provide organic and fresh fruits, vegetables
and other items to organization.
D- Strategic advantages
From above internal and external analysis, technology advancement is considered as one of the
best and effective strategic advantage that Park Towers, may attempt to grab. It may enable supermarket
to become a competitive brand in the industry in term of offering online services to customers along with
offline, which build a great brand image in the retail sector. Along with this benefit, it may gain more in
form of business expansion that boost productivity, performance and profitability more than other
supermarkets. Furthermore, management may take initiative to gain more benefit as key advantage in
term of gaining customers attention in term of managing inventory according to new market trend. It may
enable firm to retain buyers and gain the attention of new who are able and tend to retain with sustainable
companies like chosen supermarket.
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2- EVALUATE STRATEGIC EXECUTION
Critically examine whether the organizational culture, leadership and performance of
supermarket more effective in achieving its tactic
Both leadership and management plays a very crucial role in improving and enhancing the
working of the firm. As being the important component of management, leadership tend to build an
environment for every employee to earn, develops and excel (Yunus and et.al., 2020). Both terms being
aligned with 'Park Tower's strategic advantage in the terms of technology.
Leadership: As company's leadership style tend to utilize and various new technologies as well
as innovation for improving. With this leadership also provides various benefits in terms of new values
and potential. With the aid of leadership company may tend to incorporate new technologies which helps
firm in observing about the new market trends as well as knowing about customers taste and preferences.
Not just that but also likely to assist and growing of firm's flexibility and improving the working
operations of company. Apart from that but also likely to help in digital transformation with adoption of
new technologies which improves the efficiency and effectiveness of organization in the market. With the
usage of leadership company try to convert their workplaces into digital ones for gaining more
effectiveness in the strategic advantage of firm.
Aligning new technologies with business requirements assist in identifying key investment
required that tend to close the gaps, and spending with business priorities evolve. With the proper
utilization of leadership with technologies also tend to help in changing industry structure. Apart from
that also likely to assist in creating competitive advantage by providing 'Park Tower' new and more
enhanced ways to outperform their rival firms. With viewing technology as their core aspect of business
at all levels, and not just company's different products or Research and Development activity ( Hamidifar,
Yusoff and Ebrahimi, 2017). With Providing new, innovative products and services based on the latest
technologies and practices end in effectively and efficiently meeting the customers needs and
requirements.
Management: Being aligned towards the strategic advantage company's management tends to
provide with high level of training as well as development to their workers. By providing the workforce
with an appropriate training leads to improve the working operations and efficiency. Company dedicated
employee training and development most likely to identify a sharp increase in profits as well as gaining
high level of staff retention, which also vital for sustained business growth. Workforce training is worth
more than replacing talents and retaining existing ones. With the proper utilization of that workforce may
tend to acquire more and various new skills in regarding the technology. This new skills being
incorporated under the workforce aims to provide with keeping pace with the changes appearing in the
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industry. Not just that also provides with being and staying ahead of the competition and increasing the
profitability for the firm.
With the new skills gained by workforce also tend to improve and increase productivity along
with producing high quality standards for aligning more of strategic advantage. Being skilled with
training of new technology understand on how to effectively utilization at workplace and lower down the
problem causing major issues in productivity (Doyle and Brady, 2018). 'Park Tower' providing their
workers with appropiate training and skills generations also likely to help firm in saving money and time
on recruiting new personnels, spending less time in troubleshooting and more into productivity.
Organizational Culture: With referring as system of various shared assumptions, beliefs and
values 'Park Tower' organizational culture being aligned towards strategic advantage as understanding
about different dimensions of company's culture. Apart from that also helps in understanding the major
strength and weakness of culture with their subcultures. Organization's culture being aligned with
strategic advantage tends to provide firm with various benefits like improving the employee retention rate
for seeing more individuals of different cultures engaging into same work. Apart from that but an
effective aligned culture also assist brand with easily resolving any upcoming major issues or challenges
with the help various ideas. With having strong cultural bonds in between the working force of firm to
come up with new and enhanced ideas or brainstorming for innovating and improving company's
operations or workings on daily basis. Having stellar company culture also assist in aligning strategic
advantage with Improving brand's reputation and putting positive effect on business from inside out.
'Park Tower's organizational culture also aligned to strategic advantage with having and gaining
more and better business performance. As, it tends to support better teamwork between workers, higher
sense of satisfaction for working as well as more and improved productivity. With the effective working
company's culture likely to provide sense of loyalty for their firm, and they're more motivated for
reaching higher along with working harder. This also helps in acquiring all the resources effectively along
with gaining competitive advantage over other rival companies (Narayana, 2017). Apart from that
company's culture is being aligned towards strategic advantage with providing their customer with higher
quality of products resulting in providing satisfaction. Brand also being able to revenue gains along with
steady growth. Impactful of positive culture results in driving workforce employee engagement and
improving the working capabilities on regular basis.
A positive company culture also aims at provides a system or environment for easily and
effective recruiting, stronger retention of employees along with improved or enhanced customer loyalty.
With aligned towards their strategic advantage tends to also directly impacts the bottom line of company.
With healthy company culture leads to hiring people who may aligns with company's values and norms
resulting in improving the working culture. Not just that bust also assist in providing various and many
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opportunities for inputting the informations and feedbacks from both the working task force. The firm's
culture is being aligned with strategic advantage as it tend to improve and solve the issues, challenges or
differences with the existing employees. It also provides values towards with vision with business
strategies being utilized.
Performance: Yes organization performance is aligned to strategy as company tend to fully
utilize all the resources. Performance management is an important component in company's business for
improving the production function as well as operations of firm (Carvalho and et.al., 2019). For example,
firm tend to incorporate various ways for operating like brand puts in considerations for their workforce.
Apart from that also providing workers with skills and knowledge which most likely to improve the
organization's functions as well as all the working. Firm also aims to set various targets and focus on
achieving those targets resulting in aligned performance being provided by 'Park Tower'. Company also
used to review their performance quite frequently which aims at observing, analysing and getting to know
about how working force is doing their job, what were the preventive measures they may take and what
kind of new technologies or techniques they may tend to use. Along with that but brand's performance
also being aligned with using advices and notions from senior and more experienced working personnels.
With the aid of this assist in motivating the task force and improve the performance of firm. Further, it
also helps in gaining a large part of market along with attracting and gaining new customers which
eventually results in increasing the profitability of firm.
Organization's performance also being aligned with the strategy as the major focus time,
resources and efforts being considered in the right areas with an immediate effectively timely manner.
Brand also puts their main, focus on the actions like implementing new methods of doing work, resolving
all the conflicts within or overcoming all the challenges with clearing out both short term and long tasks
on daily basis. This aids in checking and evaluation of the work along with properly focus on the effective
working of production and other functions (Foltean, Trif and Tuleu, 2019). Along with that, also
incorporating and utilizing both the individuals and team efforts allowing to, gain more autonomy and
assist in driving strategic alignment for performance. Firm's performance also being aligned and
improved with promoting efforts with providing transparency resulting in loyalty of workers and
improved performance by them. This also may leads in increasing profits for firm and gaining
competitive advantage.
'Park Tower' utilizing various and different kind of strategies which also provides performance
achievement as, like providing their workforce with special training which aims to improve the
knowledge and skills. With having more and improved employees aims to improve the working of
projects they tend to work on. Along with that also provides proper and most appropriate skills required
with the market trends to their current duties and future based or focused. Furthermore, brand aims to
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follow the current market trends and new techniques as, using these trends helps in organization to
evaluate performance. With the proper using of these trends and techniques aims to provide firm the more
and higher efficiency along with capturing the target market and identifying, observing the areas for
improvement (Kaleka and Morgan, 2017). Organization also use inventory current projects which also
provides the information regarding identification as well as analysation which leads in operational
efficiency in regard to working of firm. This also tend to improve the performance and providing more &
high quality standardized products and ends in improving the performance of firm.
There are more factors accessible in the corporate world, that enable Park Towers and its
stakeholders to achieve strategic aims. For example, along with leadership, organizational culture and
performance, motivation may also play crucial role to reach desire result in term of enhancing the
performance and productivity level among all candidates whether they are new or existing
(Werdhiastutie, Suhariadi and Partiwi, 2020). It is fact that employees' motivation may aid chosen
supermarket to achieve strategic advantage such as technology implementation and utilization of
advanced technologies that contribute to generate revenue and increase profitability more than other
brands. In the recent time, people prefer to work within those organizations where management take
approach to boost the morale, motivation and commitment level among existing as well as new
workforce. When chosen supermarket to these activities it may give them opportunity to work with such
an productive and creative people who are able to achieve strategic goals ( Lorincová and et.al., 2019).
Motivation is considered as key element of business success and growth, as it may enable a
candidate to perform such tasks in productive manner, without making any mistake that may put negative
impact on final outcomes. With this help of this factor or element, leader may contribute to provide great
pleasure to high authority and all the stakeholders who expect to gain benefits in bulk and tend to take
strategic decisions (Rizky and Ardian, 2019). It is fact that when individual employee in a company feel
motivated they take approach to make achievable commitment that contribute to make organizations
strong and productive. It may also give leaders power to take essential and beneficial decisions, without
thinking twice. Motivated and encouraged candidates may lead to increase organizational productivity
and permit management to achieve higher extent of output that is not easy for any firm to do that because
it needed strong workforce and wide in term. Leaders may take initiative to create positive environment in
the workplace where individual person attempt to encourage new candidates along with existing that in
turn improve & increase Park Towers performance. These are varied reasons accessible in supermarket
that drive the attention of leaders and managers to consider all above factors into their consideration. For
example, they may consider leadership and more because to gaining competitive advantages, enhancing
customers satisfactory level and increasing organizational performance. By using each component, Park
Towers may achieve set tactics and obtain expected outcomes more than the expectations of management.
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3- STRATEGIC IMPROVEMENT
How can internal change improve the strategic advantages
It can be said that internal change in any firm whether it is large or small, open new growth
opportunities and ways. For example, it contributes to enhance or improve operational efficiency, better
than last few months or weeks. In case of Park Towers, organizational structure change is the best
example of internal modification that may support to improve strategic benefit such a competitive
advantage, brand expansion or internationalization and customers retention. It can be said that the
structure of a company contributes to grow and success organizations, it enables management and all the
stakeholders to take pleasure of increasing productivity and profits margin (Smith and et.al., 2019). It is
quite important for chosen supermarket to change its existing structure or make is suitable for consumers
as well as candidates. Management may take approach to make important discussion with high authority
to make possible modifications internally, which in turn aid workers to perform in productive manner and
also make them capable to offer satisfactory services to individual customer when they reach the outlet
and enter into it.
For example, they may take initiative to use hierarchy as strategic and useful organizational
structure. It is one of those improvements that chosen company may make to grow continually in
productive manner. This form of modification may allow customers to find out a product easily instead of
facing challenges to do that. It can be said that changes related to infrastructure of companies provided
greater benefits to management in term of faster decision-making and excellent staff performance, that
enable a firm to grow in form of expanding business worldwide (The Advantages of a Hierarchical
Organizational Structure, 2021). It may allow entering into those markets where success and progress
chances are accessible in bulk. Along with above benefits, the current essential improvement may support
to reduce risk to conflict between employees, as they may work independently and appropriately without
taking too much stress about managing inventory due to lack of space. Hierarchy is the best
organizational structure in the world of business that has been used by many companies according to
requirement and need. It may contribute to drive the attention of management toward segregating food
products into category or section, which make decision and purchasing easy for target market. A change
in a firm leads to many positive features for example, it may help to retain competitive position of
companies in the specific sector, gain competitive benefits and also support to remain at top position in
business area.
It is fact that internal change whether it is related to system, management or structure may lead to
encourage innovation, develop staffs and their skills that play vital role in the context of aim achievement
process (George, 2020). With new infrastructure, individual candidate may drive their concentration
toward creation or process of developing creative ideas that boost retention level among target audience
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and give them a specific reason to stay wit h Park Towers forever, instead of taking decision to switch to
other supermarkets.
The selective internal change may bring more benefits for company in term of making it capable
to achieve set goals. For instance, it may bring benefit in form of driving individuals' attention toward
developing a plan that allow supermarket to enter into profitable, progressive and beneficial market. It
may give power to each candidate to perform appropriately and also permit customers to make their
shopping in comfort manner that is quite essential for them to do that. As it may give chance to buy each
product according to list in which products are included by family members, that they tend to buy.
This change may bring new business growth chances that firm may achieve in effective manner
by applying the best strategies and taking actions. For instance, Park Towers may take approach to make
chance in existing structure to grow. It may enable management and overall business to grab the
opportunity of working with skilled people who are available in new market. It can be said that the
capability to embrace change may continually aid venture to find and nurture new venture ideas as well as
chances in bulk. By having stellar fluctuation tactics, management may aid to move forward into new
areas about by the new techniques of working. Organizational structure change may permit organization
to grow in varied manners, such as it may help to develop clear understanding in the workplace among
employees about their responsibilities and roles that they attempt to fulfil (Why Change In the Workplace
is Good! A Guide For Companies, 2021). It may assist to build productive and experienced workforce
that also contribute to achieve set goals and objectives as well as effort to reach desire outcomes
according to stakeholders expectations. With new structure, individual employee may get clear direction
from store leader and manager which in return improve their performance level and make them capable to
satisfy customers by using key skills. Along in above term, this element may contribute in the context of
aim and vision achievement in varied manners.
CONCLUSION
From above analysis, it has been concluded that supermarket has gained competitive advantages
by using its strengths and key resources that are accessible in firm. It has also retained potential
consumers by offering discounts that people expect from company to offer seasonally. It makes their
shopping easier and happier ever, which is not that easy to make for any firm whether it is public or
private. Furthermore, by summing up above discussion, it has been determined that utilization of
appropriate leadership style, creation of organizational culture and performance management techniques,
enabled supermarket to give tough competition to its rivals. Along with above things, it has also
determined that leadership, and motivation play significant role in success of supermarket as it enabled
organization to achieve effective and strategic goals.
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