Business Report: Waitrose's Market Position and Expansion Strategies

This report provides a detailed analysis of Waitrose, a British supermarket chain, examining its background, market position, and business environment. It covers Waitrose's operations, including its international presence, brand and marketing strategies, corporate and employment practices, and financial performance. The report explores the company's market structure, major competitors, and uses PESTEL and Porter's Five Forces analyses to assess its external environment, including political, economic, social, technological, environmental, and legal factors. The study also evaluates the internal factors influencing Waitrose, such as its value system, mission, organizational structure, corporate culture, and workforce quality. The report concludes with a discussion of Waitrose's expansion strategies and its approach to navigating the competitive retail landscape, offering insights into the company's strengths and challenges.

BUSINESS
ORGANIZATION

Contents
INTRODUCTION...........................................................................................................................1
Background information of Waitrose..............................................................................................1
Business environment of Waitrose..................................................................................................3
Business opportunity with consideration of using analytical approaches.......................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organization has been considered as individual as well as group of person. They
are responsible to use collective efforts in order to attain target with in stipulated time period.
The present report is based on Waitrose which is British supermarket. It provides varieties of
goods and services in international market. Waitrose has 350 shops in Portugal. Offer different
food verities to large of customers in order to attract them and keep them for long time
(Osterwalder and Pigneur, 2010). In the present report discussed about background information
about Waitrose related to its legal ownership, current international operations and much more.
Business environment of this firm is also discussed which is able to present information based on
economy, culture as well as political or financial system. What is the objective of your report?
What analytical tools would be used?
Objective of the report is to expand the branches of business in different places which helps
in generating profit for the company. Expansion of organisation facilitates a opportunity to serve
their product in oversees hence more people will be aware for firm's existence. The PESTEL and
Porter's five force modal are used as analytical tools for this report.
Background information of Waitrose
Waitrose is a chain of supermarkets ????PORTUGAL. It is largest employee owned retailer
in retail sector. It first appears at high street in 1904. They managed to run successful business by
selling a wide variety of grocery products. Their standards in products helped them to grow their
business faster (Gulati, Puranam and Tushman, 2012).
In 2004, they expanded their business to approx. 200 shops. In 2015, it has around 350
branches all over PORTUGAL. It is sixth largest retailer in PORTUGAL with a market share of
approx. 5.1%. This company has royal warrant as it supplies groceries to Queen Elizabeth.
Brand and marketing- Monotype imaging has designed its logo. Its advertising focusses
on its unique selling points such as its different strategies in production process, more focus on
quality of products and expertise of its employees. Its advertisements are done through print
media, national television, and online platforms (Musa and et. al 2015). Its advertisements
feature celebrity chefs Delia Smith and Heston Blumenthal. Marketing is the concept of enhance
brand awareness among people in order to attract them and keep them for long time. Marketing
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officer is responsible to perform allotted functions for the purpose of attain target. Through this
they can easily convey message to large number people about verities of goods and services.
Corporate practices- It not just focusses on profit making as it donates some part of its
profits to various charitable institutions. It has a system called 'Community Matters' where they
invite customers to donate money. It has established Waitrose Foundation in 2005. It provides
funds for education, health services and worker facilities.
Employment practices and benefits- As it is part of John Lewis Partnership, so its
employees are given title of partner and co-owner. They receive benefits like partnership bonus.
Partners are given membership in countries where partnership occurs such as Brownsea and
Odney club.
Waitrose also offers placement schemes to students of 4-year degree.
Stores- Waitrose has its stores in various countries like Australia, Barbados, Bermuda,
China, Dubai, Hong kong, Kuwait, Malaysia, Saudi Arabia. It has around 350 stores in
PORTUGAL.
Online presence- It operates its delivery services through Waitrose.com. It is available in
some of its stores as they deliver goods on orders. This site also includes online ordering system
for special orders like cakes. It became first supermarket to abolish delivering charges in 2009. It
has also launched online food retailer Ocado in year 2000. Its services are available in different
areas of Britain. It uses central warehouses to deliver its services (Shangmin, 2010).
Market share- It currently holds approx. 5.1% share in the food market. Along with that,
it has around 10% and 18% share in fish market and organic food market respectively.
Awards – It has been awarded with various awards and titles. In 2006, it received award
for multiple retailer of the year. In 2007, it received awards for being best high street retailer,
PORTUGAL favourite retailer, best business initiative and many more. It gets awards each year
as it delivers best products and services to its customers. It has high degree of consumer loyalty
and trust due to its quality and standards.
Financial position- As per current financial report of this organisation, it generated total
revenue of approx. 6.3 billion pounds by 2017. Due to this it is amongst top four retailers in
PORTUGAL. These figure shows that financial position of this entity is very good (Pandey and
Singh, 2010). Use data for last 3 years and projections for next year
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This graph has been showcasing the current revenue of Waitrose which is increasing in
day to day bases.
Ownership structure- It operates in partnership with John Lewis. It is based on
partnership principles. All co owners works on behalf of this organisation. Due to this structure it
enjoys various benefits of being in partnership (Owolabi, Obiakor and Okwu, 2011). It helps in
combining resources and skills of many workers. Profits and losses are shared by partners as per
their share. They don't need to disclose their profits to public. They have to follow very simple
formalities to change their legal structure.
But there are certain negative points also as chances of conflicts are high which may
affect the operations of company (Al-Debei and Avison, 2010). Tax is charged at personal tax
rate which means that if business earnings increases tax rate will also increase.
Current international operations – As it is leading retailer of PORTUGAL and
subsidiary of John Lewis departmental stores so it has various opportunities in international
market. It is advantage of it by expanding its business in emerging economies. It is targeting
global customers by adopting various strategies. It is trying hard to capture international market
(Srinivasan, Rage Frameworks, 2010). What is the market structure, in which it operates? Who
are its major competitors?
The company Waitrose are dealing their products in high level of economy cause
PORTUGAL has sound economy. Waitrose are offering and is the part of perfect competition
market structure. In perfect competition there are so many organisation who are providing same
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Illustration 1: Financial report of Waitrose

product and compete against each other. the prominent competition for waitrose are Tesco, j
Sainsbury PLC and morrisons that are serving same products in market and demand of these
companies offers sound competition.
Business environment of Waitrose
It means combination of external and internal factors which directly or indirectly affects the
decision making process of an organisation. It includes micro and macro environment. Both
internal and external factors affect the business.
Internal factors-
Value system- Value system means ethical beliefs that helps in achieving mission and
objectives of organisation. It is one of the internal factor affecting internal business environment
of Waitrose. This company believes in fair business policies and practices which makes benefits
for firm, customers, employees, stakeholders and society. Every person who are workign g in th
company are tend to be responsible maintaining sound working environment (Ford and Condon,
2011).
Mission and objectives- These are another factors of business environment. Every
company's objective is to maximize their profits in long run. Waitrose is working towards
attaining these objectives but sometimes it affects the business environment internally. Every
person of company is responsible to perform functions according to the mission or goals. They
are bound to fulfil rules, regulation and policies which are imposed on them as per the policies of
organisation. Certain policies are imposed on employees which gives fruits to them (Roy, 2011).
well defined objectives and mission are helpful for company hence they are able to achieve their
target and maintain performance in international market. The main objective of Waitrose is
providing varieties of food items in different countries to maintain their target demand in
effective manner.
Organisation structure- It means nature of structure followed by an organisation. It has
high influence on decision making process. Directors are the core decision makers in a business
organisation. Therefore, capability of directors is very important for smooth functioning of
business and attaining missions and objectives (Campuzano and Seteroff, 2010). Waitrose is the
private firm which main objective is to earn profit with selling goods and services to large
number of people.
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Corporate culture- It is important factor that reflects the internal environment of
Waitrose. It includes style of working and capability to deal with changing external environment.
Employers are bound to provide best employment opportunities to its employees in order to keep
them for long time (Granovetter, 2010). Workers have to perform functions which are allotted to
them according to their skills, qualification and experience.
Quality of workforce- It is an essential factor of internal business environment of
business. Success of business is very much depended on skills, attitudes, ability, and dedication
of its employees (Meade, 2013). Therefore, it is required to have efficient management of human
resources. Employers are needed to provide best quality working environment to people which
employees can easily perform their functions and gives positively contribution in growth or
development of firm. The quality shown in food items which grabs attentions of customers. You
are better off using PESTLE and Porter’s 5 forces model!
External environment-
PESTEL analysis
Political- These factors are key forces determining the operations of business. Waitrose
faced two political environments, that is PORTUGAL and South Africa. Government are stable
in both countries. This company created a foundation in SA to maintain the quality of its
products. Trade policies, foreign trade regulations are in favour of its growth. Due to their quality
standards, they hold royal warrants with queen of PORTUGAL. Political factors are very crucial
for this company because most of its seasonal products are imported (Follett, 2013). Political
factors are affects on company's rules and regulation as they has states their rules which all
organisations needs to accept if it is not then trade of the firm will be harmed
Economical- Economic factors very important for development of company. It
contributes to GDP of country and due to this it gets support from government. Waitrose is
taking full advantage of this and using it for achieving long term growth ( Bae, Rowley and
Sohn, 2012). the economy factors such as taxtion and tariff made impact of organisation's trade
cause if tariffs are more then expected ration, organiser will not afford it hence business are
affected.
Social- Such factors affect the operations of Waitrose in various ways. PORTUGAL
market demands better quality and healthy products. This is reason, that they are first one to
launch organic food there. These factors influence the operations and policies of this company.
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Waitrose provide large number of job opportunities to people in order to enhance their skills and
knowledge. Social factors are major one cause Waitrose is a food retailing firm which should
serve quality or healthy product to consumers if they fails in it then customers has power to sue
them in consumer forum.
Technological- Technology plays a vital role in growth of business. It is also required to
survive in high competition (Allen and Kraakman, 2016). Waitrose emphasis a lot on quality of
its products therefore, it is necessary to use advanced technologies to maintain those standards.
Being a part of retail sector it has huge competition and to be a market leader it need to focus
more on its technologies. Managers and leaders are responsible to opt advance technologies for
promote its goods and services in across the national boundaries for the purpose of attract large
number of customers and try to keep them for long time. Advancement in technology attracts
demand hence it is important for the firm to offer their product unique way which customer
considers more.
Legal- Such factors include competition law, employment law, health and safety laws.
As Waitrose maintains its quality standards of products so it helps in dealing efficiently with
legal issues (Foss and Knudsen, 2013). Companies are responsible to comply with rules and
regulation which are imposed on them. Legal authorities of PORTUGAL frame various types of
legal procedure which are imposed on PORTUGAL based organization. They are bound to fulfil
policies which are framed by companies for perform function in effective manner. The legal
factor are inversely affect to company as if the compensation plans are not sound for employees
then it will creates some hurdles in future cause as if an employee are get injured in work hours
then they ask for compensation which is ethically their right.
Environmental- Nowadays, every company is focussing on such issues as the situation of
environment is getting worst day by day. Problems like carbon emission global warming and
ozone layer depletion are serious problems related with our environment. Waitrose need to focus
more on such issues by taking some measures to prevent the surrounding from severe risks.
Waitrose is a food retailing firm they should not deliver any of element which inversely affect
environment. The negative impact of it may creates roadblocks in trade of company.
Porter's five model
This model is a tool that analyse the competition of business. It has five factors which
examine all conditions.
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Threats of new entrants: New entries are able to decreases the profitability for other
organisations. Whom are dealing the same product on same target area. Hence Waitrose needs to
keep innovation along with quality in their proposed product. It helps in locking customers with
their company.
Threat of substitute: The substitutes are major roadblock. Some organisers introduce substitute
product which have a bit same attribute at low price which will grab customer's attentions cause
buyers are always price sensitive.
Bargaining power of customers: This also explained as result of market like ability of buyers
for saving money put the company under pressure. Some strategy of price change also affects
customer's bargaining power.
Bargaining power of suppliers: This can be describes as Raw material suppliers, components,
service and labour of the company are the source of power. Hence firms need to have healthy
relation with suppliers cause if product are sell by one supplier then how will the product will be
sold and how can company will run.
Rivalry: It states major competition can be a factor which affect the organisation in market like a
company are launches their product in area at time of Waitrose's operation with same quality
product hence the new firm will be know as rivalries for each other.
Business opportunity with consideration of using analytical approaches
Waitrose is the international supermarket which offer different types of food items to large
number of people in order to attract them and try to keep them for long time. Various business
opportunities created for business for maintain their performance in international market and
enhance market growth as well (Foss and Knudsen, 2013). Member are bound to follow several
roles and responsibilities which are imposed on them. They are bound to attain target with in
stipulated time period in order to contribute in growth of company. They can frame various plans
and strategies for the purpose of achieve market strength and enhance performance as well.
Framing of plans and strategies is the forecasting process which is helpful for the growth and
development of firm.
Higher authorities of companies select some approaches which are useful for the growth
of firm (Foss and Knudsen, 2013). Waitrose have to use advance technologies in order to
promote its goods and services in across the national boundaries and aware people about latest
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food products introduce by firm in international market. Goods and services needs to be present
according to the current demand of customers. Through this, company can easily communicate
with people and attain success through selling large number of food items.
Analytical approach has been considered as use of appropriate process in order to resolve
problems arise with in organization. Each and every of Waitrose has been considered as small
pieces of puzzle which are needs to be use at the time of resolve conflict. Due to this reason
member of this firm can easily resolve problem through identify best possible solution for the
same. Members are responsible to use their collective efforts in order to comply with law and
maintain performance in international market (Foss and Knudsen, 2013). They are responsible to
attain target with in stipulated time period. Analytical approach is the helpful tool for breaking
down problems in short terms and try to resolve them one after another in effective manner.
They are responsible to follow systematic process which is helpful for them and maintain
performance as well. Various rules and regulation imposed on them in order to comply with
policies of company. Members are bound to use best quality of food items in order to maintain
health and safety of people who are continuously products. In case firm failed to maintain health
and safety then customers having rights to file case against organization for receive amount of
compensation equal to damages caused to them. Various elements use to maintain performance
of company in effective manner and try to attract large number of buyers.
Members of company have to recruit best person who is capable and fit for the purpose of
firm. Through this, entity can easily attain target and successfully improve brand awareness
among customers of several countries (Foss and Knudsen, 2013). Marketing officer of Waitrose
is responsible to conduct market survey in order to analyse actual market demand of customers.
Through this they can easily meet level of satisfaction of people and maintain quality as well. In
this modern era, there are large number of people consume food items of company. Also try to
analyse problem of the firm for identify best possible solution.
CONCLUSION
From the above report, it is depicted that business organization has been run by individual or
group of person. Waitrose is the international supermarket which provide various food items in
different countries in order to attract large number of customers also try to manage performance
in effective manner. In the above report, discussed about background of the Waitrose such as its
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legal structure, international operation and much more. There are various types of business
opportunities crated for company which are helpful to attain target with in stipulated time period.
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REFERENCES
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Al-Debei, M.M. and Avison, D., 2010. Developing a unified framework of the business model
concept. European Journal of Information Systems. 19(3). pp.359-376.
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Bae, J., Rowley, C. and Sohn, T.W. eds., 2012. Managing Korean business: Organization,
culture, human resources and change. Routledge.
Campuzano, L.G. and Seteroff, S.S., 2010. A new approach to a spiritual business organization
and employee satisfaction.
Follett, M.P., 2013. Freedom and co-ordination (RLE: Organizations): lectures in business
organization (Vol. 15). Routledge.
Ford, C. and Condon, M., 2011. Introduction to “New governance and the business organization”
Special Issue of Law and Policy. Law & Policy.33(4). pp.449-458.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Granovetter, M., 2010. 19 Business Groups and Social Organization. The handbook of economic
sociology. p.429.
Gulati, R., Puranam, P. and Tushman, M., 2012. Meta‐organization design: Rethinking design in
interorganizational and community contexts. Strategic Management Journal. 33(6).
pp.571-586.
Meade, J.E., 2013. Alternative Systems of Business Organization and of Workers' Renumeration.
Routledge.
Musa, H., and et. al 2015. The website usage among private sector: A case of Malaysian business
organization. European Journal of Business and Management. 7(6). pp.121-125.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Owolabi, S.A., Obiakor, R.T. and Okwu, A.T., 2011. Investigating Liquidity Profitabulity
Relationship in Business Organizations: A Studi of Selected Quoted Companies in
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Pandey, A. and Singh, K., 2010. Wholesome leadership development process: Case study of a
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Roy, T., 2011. Economic History of India, 1857-1947. OUP Catalogue.
Shangmin, M.W.D., 2010. Empirical Study on both the Validity and Impact Factors of Critical
Decision for Business Organization——Based on the Reflection of Critical Decision for
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Online
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SALES VOLUMES AT UK SUPERMARKETS RISE FOR FIRST TIME IN
NEARLY 18 MONTHS .2017. [Online.] Available through:
<http://www.nielsen.com/eu/en/press-room/2015/sales-value-uk-markets.html> [Accessed
on 16th November, 2017].
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APPENDICES
Figure 1 SALES VOLUMES AT UK SUPERMARKETS RISE FOR FIRST TIME IN NEARLY 18
MONTHS .2017. [Online.] Available through:
<http://www.nielsen.com/eu/en/press-room/2015/sales-value-uk-markets.html> [Accessed on
16th November, 2017].
Figure 2 SALES VOLUMES AT UK SUPERMARKETS RISE FOR FIRST TIME IN NEARLY 18
MONTHS
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