Waitrose: Business Organisation and Environment in Canada

This report provides a comprehensive analysis of Waitrose, a British supermarket chain, focusing on its potential expansion into the Canadian market. The report begins with an introduction to Waitrose, detailing its history, operations, and current market position. It then delves into the business environment, examining both internal factors like employees, investors, and management, and external factors using the PESTEL model, including political, economic, social, technological, environmental, and legal aspects. The report further applies analytical approaches, specifically Porter's five forces, to assess the competitive landscape. The analysis considers the threats of new entry, substitute products, and the bargaining power of customers and suppliers. The report concludes with an application of appropriate data and strategic recommendations for Waitrose's successful entry into the Canadian market. The report underscores the importance of understanding the business environment and adapting strategies to local conditions.

Business Organisation and
Environment in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Information on selected business organisation.......................................................................1
TASK 2............................................................................................................................................3
Business environment.............................................................................................................3
TASK 3............................................................................................................................................6
Analytical approaches............................................................................................................6
TASK 4............................................................................................................................................7
Application for appropriate data.............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
A business organisation needs a lots of research on market, industries, customers,
competitors, core competencies as well as environment in which they are operating their vision
and mission. Whenever a organisation established in market they work with a agenda to earn
more revenue and provide services to their customers with higher satisfaction (Alshamaila,
Papagiannidis and Li, 2013). These activity of a firm is directly or indirectly affect on
environment of country and economy. This project work is on Waitrose, which is British
supermarket. Now this company wants to open their new store in Canada. So for this they need
to deal with some environmental issue of the county. It includes Internal and external
environmental factors that affects on a business organisation as well as appropriate analytical
approaches through Porter's five forces.
Task 1
Information on selected business organisation
This report is based on Waitrose which was established in the year 1904 by Wallace
Waite, Arthur Rose and David Taylor. This is a British supermarket and a retailer of food
products. It has approx. 350 branches across the UK with having 30 convenience stores and
around 91,000 employees. Now, this organisation is considering to open their new stores in
Canada. So, for this, they have to get a brief research about their rivalry in this country and their
customer’s choice and demands. They have warrant to supply groceries, wines and spirits to
Queen Elizabeth. So, these things make their goodwill higher in market with a strong rivalry. As
its results, they will have to face some difficulties to make their own goodwill in Canada and to
stand with their competitors. But in it, their management's strategy and decision making skills
provides them strength and future objectives. They will have to attempt all the task and practices
of the company in most effective way to increase financial profit of business. This report
includes, how external and internal environment affect on their business strategy as well as what
type of plans they can make according to different approaches of business (Baker, 2012). It is
basically a process which is work for different economy, culture and society to provide their
services and communicate with them to promote their business easily. Communication with
customers or different market aspects is one best promotion activity for newly established
organisation at different place. Through this they can easily provide information about their
1

products and services to consumers and build trust in their mind for them. Sometimes
management of business conduct different programs in which their marketing division is deal
with Business to business and business to customers to promote their organisation. For a
company its is very hard to operate their business activity in a different country where lots of
competitors are already exist and they already have a large number of customers who believe in
their goods and activities as well. These type of competitions provides them different approaches
to make effective strategy which provides them best outcomes as well as connect more
customers with them. In a different country, customers demand and their wants are all depends
on its environment aspects because it is a term related which relates to climate, cultures, fashion
and customers taste. They have a structure that determines relationship between its function and
activities, employees and management, workers and customers as well as their responsibility
toward the organisations and market. This system of a company can affect or they are affected by
the environment beyond its boundaries (Bristow, 2010).
Financial statement of Waitrose
Partnership weekly sales figures for last week (to 2 December) published on Tuesday 5
December 2017
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TASK 2
Business environment
Business environment identify external and internal factor of a organisation that affect its
function, employees, management, supply, demand and legislation. These factors can be
common for existing firm of country but they can most effective for newly established company
for a new economy. Somehow this factors proves as beneficial if management know very well to
deal with them. Factor and issues that affects business environment-
Internal factors
This factor includes success and approaches of business operation for a particular goal.
They are occur when organisation faces negativity, unapproved decision, distraction of
employees and other internal activities of organisation. These are
3
Illustration 1: Financial Statement of Waitrose
Sources: Financial Report of Waitrose. [Online]. Available through
<http://www.johnlewispartnership.co.uk/content/cws/financials/weekly-figures/
latest.html>

Employees- Employees of a organisation are their key strength which provides them
services to making a effective or successful organisation in market. For this, management of a
organisation need to provide them training and learning for enhance their skills and capacity of
working (Bruton, Ahlstrom and Li, 2010).
Investors- Investors are the paid entity for a organisation. They provides their fund for
organisation for manufacture or production as well as organisation provides them a part in their
revenue. Investors always wants to provides their funds to a well repeated company on which
they can trust easily.
Management- This is a main aspect of a organisation which provide activities,
opportunities, employment as well as training and leaning to their new employees. This is a
different part in organisation in ,many different division and employees are working. In other
words they are the care taker of firm.
External factors
It determines that how economical factors of a country affect on business pattern, its
operation and functions. These external factors can be customers, government, technological
changes as well as organisations supply according climate and weather of country. PESTEL
mode is provides its information briefly-
Political Factor- This factor are totally related to government and political issues of a
economy. It includes Government policy for marketing firm, foreign trade policy, trade
restriction, labour law, political stability and insatiability that can affect firms policies directly,
law and regulation related to environmental issues etc.(Cavusgil and et. al.,2014) .
Economic factor- Economy of a country has a significant role on business organisation.
It can includes economy growth, interest rate, inflation, income of consumers as well as how
much they are spend on different products. Economy has two major factors micro and macro
economy and they both are has different role on business organisation. Micro economy includes
customers demand, their need and supply of particular product by organisation and in macro
economy includes inflation, monetary policy of government and national income. It both have
different impact which a need to know how can they reduce their negative impact and kind of
strategy is required for them (Crane and Matten, 2016). It has three factors and these are
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 Opportunities- In this factors it is determine that all the organisations get different
opportunities from market to established their own goodwill with rivalries but they needs
to provide most effective and quality products to customers.
 Threats- For a business organisation their only one threat is their competitor who also
provide same quality of products and they have a large number of customers in market.
Substitute products can also be a big threat who can directly affect on their goodwill.
 Advantages- This can be the positive factor of organisation in various methods such as
marketing advantages, Customers demand, best competitor for existing organisations and
create brand loyalty etc.
Social factor- These factor are related to social culture issues of a country and they based
on how customers are deal with them. For Waitrose, as they provides food products in a country
and now they want to established their services in new market, so for this they need to know
what kind of products their customers want as well as is their society allow to sell or purchase
them easily. Theses factor can be relate to culture of a society and trend which they follows.
Social factors includes population growth, age of individual, health and safety of consumes etc.
Technological factor- Technological factors and its uses landscape changes very fast and
it has a big impact on people. Currently each and every product and things includes new ideas or
something advance which attract to customers easily. It has some positive impact on different
organisation like trough this they get innovative ideas to produce goods and services easily, new
techniques to provides them in market and one most important new ways of promotion activity.
Environmental factor- Environment of a country is direct affect on customers demand
and their needs because it includes different elements like weather, surrounding, culture, fashion
and trend which is follows by people. In this factor customers demands are changers according to
different weather and Waitrose is a food retailer organisation so they needs to make some
changes according to different places and their climates (Farndale, Scullion and Sparrow,2010).
Legal factor- Legal factors are regulated by government of country in which they
provides some policies and legislation for the organisation which they have to followed. These
factors are regulate to provides some right to employees of the organisation and consumers of the
country. For organisation it includes some law such as labour law, employees compensation,
working hours, healthy and safety, equal opportunities as well as product safety etc.
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TASK 3
Analytical approaches
Analytical approaches includes a framework in which a marketer analyse external
environmental factors that can affects and impact on organisation in directly or indirectly. This is
used to evaluate the treat of organisation and how they can be as its weakness. External factor
can not be controlled but firm can make some strategy to face them easily and deal with them
without a big loss. For this Porter's five forces analysis helps to provide brief information about
them-
Threat of New entry :- New entry of an organisation with the same product is always a
big competition in economy. Waitrose is an iconic company in UK but company faces strong
competition from other companies. But because of these competition company never reduce their
product quality that is the only reason which makes this company a largest employees force
organisation to others. Customers can only be in link with food process organisation when they
provides good quality of product at a best prices because customers always wants good costing
with best trait. They can be important to improve values of raw material, population and business
ethics as well (Hopwood, Unerman and Fries, 2010).
Threat of Substitute :- All the companies in market are known by the quality of their
particular product but some companies are offer substitute products. These companies are
cheated on their customers. Not all substitute products are cheat on customer, some product uses
different technology to solve economic needs. These items provide flexibility in market. To
protect their organisation from substitute products organisation can use technology of their
products and services. It will be useful for Waitrose because through it they can easily
communicate with their target market and easily provides their organisation information to
people. Technology has a positive impact on marketing firm but it required a great knowledge to
use them easily and utilize its sources effectively.
Bargaining power of Customer :- Customers are the last buyer of product and very
sensitive with their deals. They always want some attractiveness in a product either they can be
in packing or it can be in price. They always want some discount or offers with products. For an
organisation it is very important to know how to attract customers with further offers. Waitrose
always introduce new ideas with their products like changes in prices and also introduce a offer
6

in which all the variety of Waitrose are sold in only one packing. So these ideas always made
customers first choice to choose this brand around the world (Low, Chen and Wu, 2011).
Bargaining power of suppliers :- Suppliers and customers relation always matters for a
company. It is basically says what customer want and how supplier full fill their needs. They
work on Demand theories. This organisation always give a best quality to their customer as they
want. That's why this company is more likely among the all. Different country has their different
law and policies for marketing organisation, so for this newly established organisation need to
get full research about them and need to go through it. Waitrose is a supermarket industry which
wants to start their store in Canada, so for them it is very important to analyse all the marketing
and supply issues that can affect their organisation and impact on their working policy (Nadkarni
and Herrmann, 2010).
Industry Rivalry :- Industry rival is introduce to some competitor in market which are
short lived. These companies are chasing same target and become big threat for company.
Rivalry are known as the competition of the organisation and for Waitrose lots of organisation
has already exist in Canada whose will be best competition for them but to make their own good
will in market they need to provide quality of products and good costing which will helps to
attract their customers. Somehow they also needs to do their work under the rules of government
which will helps them to stand in market easily. For consumers it includes quality of products,
consumers right and law as well as purchasing power of particular product. Legal aspect demand
to follow them in appropriate manner other wise government can be punished or cancel their
licence to serve their services in particular country.
TASK 4
Application for appropriate data
According to this report, this data will be based on some marketing aspects which will be
face by the Waitrose when they established their new store in Canada market. This appropriate
data will help them to provide effectiveness and efficiency in competitive advantages. These can
be -
Effectiveness- Effectiveness of a organisation is based on how they understand their
competition and uses different strategy to deal with them easily. This is can be improve if
management of a organisation provides training and learning to their employees to improve their
capacity and ability of working. Employees are the key element of firm who provides their
7

services to company and customers. They are uses different techniques to make a appropriate
relation with their customers and build a trust in their which help to recognise them for a long
time period (Needle, 2010).
Demands can met- If a organisation can understand different perspectives of market,
they can easily improve customers demand for their products. Demands of customers are based
on environmental changes happens in country, so for this companies needs to provides flexibility
in their production services according to make changes according to people need. Demand has a
direct connection on organisations revenue and their income.
Productivity- Customers are the buyer of products and a company is always works to
provide the best goods according to their demands. It is a long process in which company
manufacture their products on the basis of market needs and want. This brief analysis provides
them a strategy or planning to measure efficiency of their labours, machine or system to convert
inputs into useful outputs. In the context of economy, productivity is refer to the amount of
output in specific period of time divided by all hours of working to manufacture new products
according to market need (Oliveira and Martins, 2010).
Strategic Risk- Strategy of firm provides ability to reach the goal of business plan. These
can be for new objectives, technological changes and customers demand etc. A business is
always starts with many risks of market and business such as investors, stakeholders,
manufacturing. But theses are make them strong to achieve success with different strategy.
Coordination among departments- When organisation know their future objectives and
goal than they all are Woking together to achieve them easily. This objectives provides
coordination among them for provides better services in market (Scullion and Collings, 2011).
CONCLUSION
From the above report it is concluded that environmental factor adversely affect business
organisation working in a dynamic environment. There are factors such as political, economic,
legal, environmental and social that affect business organisation Waitrose. It is one of the
supermarket retailing company hence considerations needs to be given to such factors to achieve
targets within stipulated time. To deal with the dynamic environment first of all analysing them
is essential. They need to build effective strategies and implement them appropriately to gain an
edge over its rivals.
8

REFERENCES
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Business Environment in a Global Context. [Online]. Available through
<https://global.oup.com/academic/product/business-environment-in-a-global-context-
9780199672585?cc=in&lang=en&>.
Business Organisation in a Global Context. [Online]. Available through
<http://asasedu.com/business-organisation-in-a-global-context/>.
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Financial Report of Waitrose. [Online]. Available through
<http://www.johnlewispartnership.co.uk/content/cws/financials/weekly-figures/
latest.html>
10