Pearson BTEC Unit 32: Waitrose Strategic Management Report 2021-22

This report presents a comprehensive strategic analysis of Waitrose & Partners, examining its internal and external environments. It begins with an introduction to strategic management and its importance for long-term competitiveness. The report then conducts a PESTLE and SWOT analysis to assess Waitrose's political, economic, social, technological, legal, and environmental factors, as well as its strengths, weaknesses, opportunities, and threats. The Porter Five Forces model is used to analyze the competitive environment, followed by an identification of Waitrose's existing and potential competitive advantages. The report also utilizes the BCG matrix and McKinsey's 7-S model to evaluate Waitrose's strategic position. Furthermore, it explores various strategic alternatives, including growth platforms and techniques, such as the Bowman Extent Model, Balanced Scorecard, Ansoff's matrix, and Porter’s generic model. The report concludes with an assessment of methods to monitor the selected strategies for success. This analysis provides a thorough understanding of Waitrose's strategic challenges and opportunities within the competitive grocery market.

Learner Name ID
Programme Name Pearson BTEC Higher National Diploma in Business Management
Unit Number and Title Unit 32 – Business Strategy
Credit Value 15 Unit Level 4
Academic Year 2021-22 Cohort January 2021
Assessor Mohammad Islam
Assignment Title Strategic Management Plan
Issue Date 12/01/2022
Submission Deadline Saturday 30 April 2022 at 23:59
IV Name Kashif Khan
IV Date 10 January 2022
Statement of Authenticity:
I certify that the work submitted for this unit is my own and the research sources are fully
acknowledged.
Learner Name: Date:
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Contents
...............................................................................................................................................................0
PART A.................................................................................................................................................2
An internal and external examination that offers as a basis for making strategic decisions –
Waitrose and Partners..........................................................................................................................2
INTRODUCTION.....................................................................................................................................3
1. A PESTLE and SWOT analysis of the WAITROSE LTD, as well as an assessment
of its assets and capacities........................................................................................................4
2. The Porter Five Forces model is used to analyse the competitive environment.........................9
3. Identification and justification of the organisation’s existing and/or potential competitive
advantage...........................................................................................................................................11
BCG matrix...............................................................................................................................12
7 S McKinsey model...............................................................................................................13
4. Valid strategies and tactical objectives to achieve overall strategic objectives. 14
PART B.................................................................................................................................................15
Analyse, assess, and justify Waitrose's strategic alternatives...........................................................15
1. Evaluate critically the many strategic paths open to the Waitrose...........................................16
2. Justify and suggest the growth platform(s) and techniques that are most suited....................19
The Bowman Extent Model of Strategy.............................................................................20
Balanced Scorecard Aligns Organizational Vision and Strategy....................................22
Ansoff's matrix............................................................................................................................23
Porter’s generic model..............................................................................................................24
3. Assess the methods and techniques by which the selected strategy or strategies may be
monitored to guarantee their success................................................................................................26
CONCLUSION.......................................................................................................................................27
REFERENCES........................................................................................................................................28
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PART A
An internal and external examination that offers as a basis
for making strategic decisions – Waitrose and Partners
2

INTRODUCTION
Strategic management is a persistent act of establishing, developing, and
monitoring choices that allows the business to pursue decisive choices in addition to
be competing in the marketplace. A strategy is a set of aims, objectives, or targets,
as well as the primary principles and strategies for completing this activity,
articulated in of that kind a manner as to describe what sort of business the
organisation is within which will be in (Andrews, 1999).
In order to maintain a long-term competitiveness, a business must implement
a strategy. In other words, it means that you have a certain specific goal and want to
work toward it. (Henry, 2021)
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1. A PESTLE and SWOT analysis of the WAITROSE LTD, as well
as an assessment of its assets and capacities
During 1904, Wallace Wyndham Waite, Arthur Rose, and David Taylor started
Waitrose & Partners in Acton. The ambitious three built a profitable company offering
unique supermarket supplies. Waite focused upon purchases, Rose in accounting,
but Taylor ran company production line. Taylor left 2 years afterwards, leaving Waite
and Rose to start Waitrose Ltd. in 1908. (Waitrose & Partners, 2022)
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POLITICS FACTORS
A government's taxes as well as financial regulations, commerce import
duties, among other legislation can have significant impact on the economic sector
throughout the financial term. With what degree can a governor have an impact on
the market or a particular sector? When a novel tax as well as levy is implemented
by the government, the whole framework of a Waitrose's income generation could
also be affected.
ECONOMIC FACTORS
The wide range of commercial variables may be analysed, including price
level, asset prices, as well as foreign currencies. Those variables have a direct
influence on the price for living.
SOCIAL FACTORS
Important aspects include things like demographic growth as well as an
increase in culture preferences. According to Waitrose, they must take into account
really significant items which customers purchase, as well as the demographics of
the individuals which make up the potential economy for those items. This is
important for Waitrose for doing all types research since company maintains large
number of locations across the globe, including Abu Dhabi.
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TECHNOLOGICAL FACTORS
Any positive / negative impact on the economy might be attributed to any of
the technological shifts. It is a measure of an economy's technology savvy as well as
its investment in automated investigation and advancement activities.
LEGAL FACTORS
There are internally as well as externally aspects that consider on this list.
Businesses within definite nations usually governed by particular regulations,
whereas other corporations pursue their own political agendas. It's essential to
consider the perspectives while drawing up a legislative strategy.
ENVIRONMENTAL FACTORS
The variables which influenced or determined the nearby surroundings are
included within this category. The PESTLE feature is significant of several
businesses, such as leisure, agribusiness, and livestock, among others. Among the
variables considered in an ecological impact study for a company involve things like
climate, temperature, region, rising temperatures, ecological penalties, and more.
STRENGTHS
Waitrose is on the marketplace from 1904. These have 338 stores all over the
country (Bedford, 2022). Company moreover collaborates alongside groceries,
dealers that distribute their goods from over 50 nations as well as places. Waitrose
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- rising store with items of superior value. It is recognized like some of the top
supermarket chains. It is also a Royal Warrant to feed members of a Royal family.
They applaud their devotion towards inventiveness for Quick Check
smartphone application available to their clients. This software allows users quickly
identify goods barcodes while users adding them at cart, saving them time paying -
simplified purchasing to consumers during 2016. (Waitrose & Partners, 2022)
Waitrose has helpful webpage featuring ideas menus, cooking recipes,
demonstrations, as well as product information, moreover utilises Facebook
for communication among consumers.
WEAKNESSES
Numerous shoppers regard Waitrose being a store targeting wealthy as well
as hence avoid it. Various media, impartial experts, authors referred to it as
'upmarket.' This image is extremely expensive to Waitrose, since that results in
significant revenue losses.
Waitrose has received eighth place grocery in United Kingdom, staying many
positions after top spot where is Tesco. Additionally, Waitrose has announced the
closure of numerous locations in 2020 due to coronavirus crisis.
Waitrose is positioned on 8th place in GB biggest supermarket (Grocery
Market Share - Kantar, 2022)
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OPPORTUNITIES
Waitrose may use marketplace potential tactics for boost revenue but also
making their sector position in the United Kingdom. It may have been accomplished
through offering clients great worth their price while implementing efficient
promotional programmes. Waitrose may indeed diversify business income sources
by focusing into quasi goods. Similarly, more worldwide growth via franchising
partnerships as well as selling also merits investigating.
THREATS
Waitrose has every time been under pressure from its competitors - Tesco,
Sainsbury's, ASDA, Morrison's, and etc. When comes to big-name grocery stores in
the United Kingdom, Waitrose has a lot of competition of all primary opponents.
High-street retailers cannot compete with Waitrose's outstanding excellence since
the meals manufacturing as well as services industries are constantly evolving.
Waitrose's profitability but also revenue ratios have been adversely affected
from rising rivalry with bargain hikes conducted mainly by Aldi and Lidl. However, a
recession in the UK's economy might harm the company" through driving buyers to
the well-known retail companies of some sector.
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2. The Porter Five Forces model is used to analyse the
competitive environment.
NEW ENTRANTS AS A THREAT
 Within Waitrose business, cost savings are hard to acquire. That helps
large-capacity producers gain the competitive boost. This even increases
manufacturing costs to newcomers. This weakens overall danger from newcomers.
 Inside this sector, enterprises offer distinctive items instead than
uniform
ones. Consumers want unique goods. Merchandising but also consumer care is also
heavily emphasised. Because of such reasons, newcomers are a low threat in the
market.
 The sector's financial needs remain substantial, rendering them tough
to
newcomers for get started. Expenditures are significant due to hefty R&D expenses.
Those considerations weaken the risk of future competitors in that market.
SUPPLIERS’ BARGAINING POWER
 Providers outnumber customers inside this sector wherein Waitrose
trades. That reduces provider pricing regulation as well as weakens provider
negotiating leverage.
 Most providers' products usually essentially basic, offer limited
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differentiation, as well as substitutability. So customers Waitrose may transfer
providers more easily. Vendors' negotiating leverage has weakened.
BUYERS' BARGAINING POWER
 The sector wherein Waitrose works has far extra providers that
producers. This limits the purchasers' ability of influence pricing. That weakens the
purchaser's negotiating strength.
 For example, purchasers cannot identify other businesses providing a
given commodity because market segmentation is great. Customers' negotiating
leverage is weakened due to the difficulties of shifting suppliers.
 Purchasers' revenue seems limited. In other words, customers are
especially value conscious since they are under compulsion to acquire cheap. It
reduces the sector's purchasing capacity.
SUBSTITUTE PRODUCTS AND SERVICES
 Waitrose operates in a sector where exist some replacements to its
goods. Alternatives which do exist come from sectors which have a minimal
profitability on their products. As a result, organisations like Waitrose may make as
much money as they want inside this sector they work within.
 Danger of alternative goods is less of a power inside the business
because of aforementioned variables.
RIVALRY BETWEEN EXISTING BUSINESSES
 Waitrose has some competition inside its sector. Majority among them
are huge. Companies inside the business would not be able to manoeuvre
unobserved. This weakens current corporate competitiveness inside this sector.
 Only some rivals feature big profitability. Both would compete for
acquire
rank by becoming industry champions. That strengthens corporate competitiveness
inside this sector.
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3. Identification and justification of the organisation’s existing
and/or potential competitive advantage
GROWTH THAT IS STABLE
Waitrose leadership might employ that method through order to extend their
company's operations as well as development. By that approach, the company might
purchase another expanding organisation within that industry for expanding the firm
with a little outlay of capital. Related diversification is the term used to describe such
type on long-term strategic plan. Waitrose would be capable of improving its
businesses can expand into new sectors of sales simply a result of executing that
approach. That technique may aid with the reduction for costs associated with the
development but also establishment - facilities, but also hiring of extra employees.
ENTRY INTO THE MARKET
Waitrose may enter into a partnership involving a regional
organisation attempt to grab new customer base and attract fresh clients
for stimulating business and increase trade position, including sales concept (Day
and Tosey, 2011).
The technique requires evaluating the efficacy on micro - medium dining
businesses which have a large consumer foundation as well as provide great
solutions. The strategic partnership method would assist keep start - up costs low.
The method may assist fulfil corporate objectives with little assets.
Huge company such Waitrose might benefit from purchasing a small
company providing similar activities. The method is indeed beneficial whereas
management issues between the firms might not even disrupt the operational
processes. Waitrose may improve pricing power and economic sectors by executing
such method. That technique would assist offset the costs of creating fresh facilities
plus hiring more employees. With that approach, Waitrose may receive a strategic
edge above their rivals via building a solid corporate identity but also profitability
(Dibb, 2010).
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