Assessing Formal Strategic Planning's Appropriateness for Waitrose

This report provides a comprehensive analysis of formal strategic planning within the context of Waitrose's operating environment. It begins with an introduction to strategic planning and its importance, followed by an assessment of whether a formal strategic planning process is appropriate for Waitrose. The report delves into the benefits of such planning, including improved decision-making, effective resource allocation, and enhanced long-term performance. It explores key components of the strategic planning process, such as setting business objectives, defining missions and visions, conducting situation analysis (including SWOT), and formulating and implementing strategies. Furthermore, the report examines factors affecting the operating environment, including political, economic, social, legal, technological, and environmental influences, and their impact on Waitrose's strategic planning. The report concludes by emphasizing the significance of formal strategic planning for Waitrose, highlighting its role in achieving business goals, improving productivity, and adapting to market changes. The report references several academic sources to support its findings and arguments.

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Assessing whether formal strategic planning process is appropriate for operating
environment of Waitrose or not..............................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Formal strategic planning is a process of organisations, which defines their strategy,
directions and decision-making on allocating resources to engage this formal strategic planning.
The strategic planning process, steps and advantages to understand the business objectives as
well as strategies to implement which help organisation to improve their production and
profitability. Factors that affect the operating environment and formal strategic planning will be
discussed here with which the firm will be able to resolve all conflicts and problems that arise
during implementing formal strategies and operations.
TASK 1
P1. Assessing whether formal strateagic planning process is appropriate for operating
environment of Waitrose or not
Formal strategic planning is important for the Waitrose that it help in decision-making
process and allocate resources effectively. Managers of firm believe that it will improve the long
term performance of Waitrose. There is a link between formal strategic planning and business
performance. A systematic documentary process for deciding, what is useful in decision making
process, the firm must get right in order to thrive over next few years. The process give results in
the production department of corporate strategic plans. Strategic planning process includes:
 Improving long term performance and setting business objectives
 Determination of plans and strategies (Ahern, 2016)
 Assigning policies which govern the acquisition and allocation of resources effectively
 To achieve purposes of the Waitrose
The formal strategic planning process in Waitrose is generally used to manage the
operational activities and strategy of business to be competitive in the market and improving its
performance. The planning process includes:
 Getting ready: Before implementing strategic planning in the organisation, it must be
confirmed that all issues at workplace, essential commitments of leaders and managers as
well as of employees are addressed effectively. The environment of Waitrose should be
evaluated before framing a strategy. Some other elements are also there that should be
recognised before making formal strategic planning such as:
 Planning process helps to address specific issues and conflicts.
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 Process clarifies the roles and responsibilities.
 It helps to make effective planning committee to develop organisations profile.
 Identify information and resources which helps to take decision.
 Setting mission and vision: The missions are generally settled by the firms and designed
to explain the purposes of Waitrose. (Davis, Jansen van Rensburg and Venter, 2016). In
the past, mission’s statements were used to inform creditors and investors about the
organisation. Modern mission statements are related with purpose of the organisations
and it also helps to promote a friendly image towards customers. Thus, it can be said that
mission statement is very useful to determine the strategic directions of Waitrose.
 Objectives: Objectives are the specific goals which a firm pursue as a part of its overall
mission statement. Objectives are established for attaining growth in revenue and
profitability of business. In case of Waitrose, the firm should aim to serve more
customers or to establish more branches. Objectives of the firm are generally set
according to the principle of SMART reflect that objectives, must be specific,
measurable, achievable, realistic and time bound (Bachmann, Engelen, and Schwens,
2016).
 Situation analysis: When the SMART objectives of business are set, firm needs to
understand the current situation from which it can attain those objectives effectively. The
external environment provides both; opportunities and obstacles to reach at set objectives
and achieve them. Internal audit of Waitrose helps to understand its own capabilities from
which it can exploit opportunities and overcome the obstacles effectively. SWOT
analysis will help the business to find its strengths, weaknesses, opportunities and threats
from which the firm can understand the internal and external environment and make
decisions according to the objectives.
 Strategy formulation: Waitrose built a clear picture of its capabilities, resources and
environment and considered with that it is able to formulate a specific strategic plan
towards its goals and objectives effectively. Michael Porter defines the importance of
cost leadership which makes difference between product and market segmentation. The
business finally analyse all the situations and key areas to implement the final strategy
which will help them to achieve their objectives and goals effectively and efficiently.
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 Implementation: The formal strategies will remain effective, if it will be consider with
communications and policies. Thus, it is useful to direct workers within the firm. Strategy
implementation only succeed if it has the support of employees who deal with suppliers,
customers and business resources. Strategy implementation at lower level also helps to
address practical issue. The strategy should be implement in marketing, production,
Human resource and IT departments to aquire successful results. This will help
organisation’s operating environment to achieve their set goals and objectives easily and
effectively (Bititci, Cocca, and Ates, 2016).
Advantages of formal strategic planning:
 Essential for decision making process and also beneficial for groups to formulate
strategies within the firm.
 Formal strategic planning process ensures that top managers are aware of their
objectives and also challenge complacent acceptance of the status.
 It helps to make effective balance of structure of the firm.
 It moderates the use of power in a planning or strategic group.
 It will help managers and groups to deal with conflicts and issues effectively.
 It also helps to give a sense of direction towards meetings.
 Formal strategic planning process enables the evaluation of progress.
FACTORS AFFECTING OPERATING ENVIRONMENT AND STRATEGIC
PLANNING
 Political: These factors include the influence of government upon economy or on an
industry. The political factors also affect the operating system and strategic planning of
Waitrose. For an example: government can change or impose new duties and taxes which
affect the entire revenue and structure of the firm. These factors are like tax policies,
trade tariffs and fiscal policy. Thus, business should prepare for political changes so that
these will not affect the strategic planning of firm. This will help business to manage the
environment and strategy implementation as well (Dalkir, and Beaulieu, 2017).
 Economic: These factors are the determinants of an economy’s performance which affect
business and have long terms effects. The economic factors include interest rates, foreign
rates, economic growth patterns and inflation rate, etc. For an example: rise in the
inflation rate of any economy will affect products and services offered by the Waitrose
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organisation. Thus, it also changes the strategic planning process respectively. This will
affect the purchasing power of customers and change demand and supply models for
economy. The business should be aware of economic changes that it would not affect the
organisation’s products and services.
 Social: These factors define the social environment of market. Factors such as
demographics, population analysis and cultural trends come under the same. There is
high demand during the holidays at UK that business should try to manage their strategies
and operating environment, in order to increase sells and profitability effectively.
Cultural trends of different countries as well as population and demographics also affect
the strategic planning that business should make changes according to that country
environment. This will help organisation to increase their sales and achieve set objectives
and goals effectively (Bromiley, and Rau, 2016).
 Legal: Legal factors have both sides; internal and external. There are certain laws which
affect the operating environment of business such as legislations for consumer laws,
health and safety standards and labour laws, etc. Business needs to make policies to
maintain their environment and operations according to different legislations of the
countries.
 Technological and environmental: Technological innovations may affect the business
operations of Waitrose. This will include, research and development, amount of
technological awareness and automation. Environmental factors include farming, tourism
and agriculture. These two may affect the business in both favourable and unfavourable
way. This can also change formal strategic planning for the firm which affect operations.
Thus, formal strategic planning is appropriate for the Waitrose organisation in operating
environment because it helps managers to define their goals and objectives as well as strategies
for the implementation. Sometimes, it is not appropriate for those organisations that cannot
afford these planning due to the high cost reasons. Organisations like Waitrose can implement
the formal strategic planning for their operating environment which helps them to increase their
production and profitability effectively and efficiently. This will also help business to achieve
their goals and objectives with the help of strategies and plans. Organisation should have formal
strategic planning for gaining better results in sales as well as in production with managing
different departments of the firm effectually.
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CONCLUSION
Conclusion of this report covers the formal strategic planning importance in business
operating environment. Formal strategic planning is important for the firms for their operating
environment and business activities. It will also help Waitrose firm to make effective decision-
making by the management, which leads towards profitability and productivity effectively.
Factors, which affect the business environment is also helpful for the firm to understand their
strengths and weaknesses. This will help management to remove barriers from operating
environment efficiently. Thus, it can be said that formal strategic planning process is important
for the businesses to improve their performances and working conditions effectively.
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REFERENCES
Books and Journals
Ahern, J., 2016. Novel urban ecosystems: Concepts, definitions and a strategy to support urban
sustainability and resilience. Landscape Architecture Frontiers, 4(1), pp.10-22.
Bachmann, J.T., Engelen, A. and Schwens, C., 2016. Toward a Better Understanding of the
Association Between Strategic Planning and Entrepreneurial Orientation—The
Moderating Role of National Culture. Journal of International Management, 22(4),
pp.297-315.
Bititci, U., Cocca, P. and Ates, A., 2016. Impact of visual performance management systems on
the performance management practices of organisations. International Journal of
Production Research, 54(6), pp.1571-1593.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management, 41, pp.95-106.
Dalkir, K. and Beaulieu, M., 2017. Knowledge management in theory and practice. MIT press.
Davis, A., Jansen van Rensburg, M. and Venter, P., 2016. The impact of managerialism on the
strategy work of university middle managers. Studies in higher education, 41(8),
pp.1480-1494.
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