Business Strategy Report: Waitrose Strategic Planning and Analysis

This report provides a detailed analysis of Waitrose's business strategy, encompassing various aspects of its operations and market positioning. It begins with an executive summary and introduction to business strategy, followed by a comprehensive company analysis, including its background, mission, vision, objectives, and industry lifecycle. The report then delves into a macro-environmental analysis using the PESTLE framework, identifying opportunities and threats. An in-depth analysis of Waitrose's internal environment and capabilities, including RBV, strengths, weaknesses, value chain, and stakeholder analysis is presented. The report also applies Porter's Five Forces model to assess the competitive landscape and proposes strategies to improve competitive edge and market position. Furthermore, it explores strategic planning using the Ansoff Matrix and Porter's Generic Strategies. The report concludes with strategic recommendations and a comprehensive conclusion, supported by references. The report critically examines the impact of both macro and internal environments on Waitrose's strategic decision-making processes.

Business Strategy

Table of Contents
Executive Summary Waitrose.................................................................................................................3
Introduction.............................................................................................................................................3
Company Analysis...................................................................................................................................3
P1: Macro Environment Analysis............................................................................................................4
M1: Critical Analysis of the impact of macro environment in strategic decision making based on
application to the chosen organisation.....................................................................................................6
P2: Internal environment and capabilities analysis:.................................................................................7
M2: Critical evaluation of the impact of internal environment to assess strengths and weaknesses of
internal capabilities, structure and skill set by applying to the chosen organisation................................9
P3: Porter’s five forces model by applying to the chosen organisation....................................................9
M3: Appropriate strategies to improve competitive edge and market position based on the outcomes of
the Porter’s five forces model................................................................................................................10
P4: Strategic planning on chosen organisation:.....................................................................................10
M4: strategic management plan that has tangible and tactical strategic priorities and objectives..........12
D1: Valid strategic directions, objectives and tactical actions to the chosen organisation:....................13
Conclusion.............................................................................................................................................13
References.............................................................................................................................................14

Executive Summary Waitrose
The report consists of a detailed study related to the business environment of Waitrose
organization. It also attempts to determine the business planning led by Waitrose in respect with
strategy formulation, implementation and regulation. Moreover, the report also determines
strategic tactics and antics that can help the company to lead highly improvised business
strategies in its respective industry.
The project report incorporates the application of various business models and frameworks to the
strategic process of Waitrose. It indicates that the company is implementing its strategy in a vital
manner and needs to realign its focus upon breaking the market barriers and lift its market
expansion scale higher. In order to do the same, certain suggestions are also facilitated within the
report that can be taken into consideration by the company.
Introduction
Business strategy can be characterised as a set of plans and tactics capitalised by a firm in order
to attain a competitive edge in the market. Business strategy guides the short and long-term goals
of the company towards the right direction. The utilisation of proficient business strategies can
allow the company to lead exceptional business process and function within their concerned
industry and achieve recognition and acknowledgement in the same. It can be said that strategic
planning is the key to optimisation of effective opportunity and elevation of the business
capabilities. The report will highlight upon the business strategic planning and evaluation of
Waitrose organization.
Company Analysis
Company background
Waitrose was established in the year 1904 in the United Kingdom. It is an international
supermarket chain that deals in a variety of products ranging from food and beverages to
household products and apparels (Park and Mithas, 2020). The firm is known for its niche
marketing and is considered to be highly posh within the market.
Mission Analysis

Waitrose mission is to prioritize the happiness of the organisation members by encouraging
profit generation, knowledge creation and powerful operations in the organisational culture.
Vision Analysis
The vision of Waitrose is to provide quality services to everyone.
Objectives (SMART)
Maximization of profit scale
Product development
Catering optimum quality products
Enhance the standards of service satisfaction
Value creation
Waitrose leads its value creation process by serving highly standardised goods and services to
the focused market.
Industry life cycle
The organization can considered to be in the peak phase as its business operations are very
successful and profitable. There is an elevated demand for the offering served by Waitrose
within the niche business market as well.
P1: Macro Environment Analysis
PESTLE Analysis
Political
Political environment comprises of fluctuating tariffs, taxes and reforms in a dynamic manner.
The alterations within the government policies as well as the stability of the same can impact
upon the operations led by Waitrose within the market sector.
Economic

The changing rates of foreign exchange, employment rates, Growth rates, boom period, deflation
et cetera can immensely impact upon the profit generated by Waitrose within the concerned
industry (Bai, Cordeiro and Sarkis, 2020).
Social
Social factors such as values, rooted beliefs, attitudes of the individual play a vital role for the
functioning of a business enterprise. Since, Waitrose also conducts its business activities within
other countries such as Dubai, Kuwait, Qatar etc. hence the company needs to be aware of the
values and tradition practised within the market culture in order to integrate the same and satisfy
the customers in a more defined way.
Technology
The launch of new technology advancement or automation Can also likely to impact upon the
regular functioning of the firm. Waitrose needs to keep an eye upon the latest upgrade within the
technological sector so as to optimise upon the same efficiently and use it to elevate the
productivity efficiency of the company.
Legal
It can be said that the governing body has formulated and stab list guideline in regard with
frameworks and legal policy that needs to be organised by the institutions in order to facilitate
their actions and process in a considerate mannerism. Waitrose also needs to incorporate the
business standards and guidelines in an optimal manner so as to carry out its operations smoothly
without any further intervention.
Environmental
The company also needs to adapt to the business practises that encourage the environmental
standards to a higher extent. Waitrose needs to look towards implementing sustainable business
practises and ensure that its waste management procedures are intact so as to reduce the impact
of carbon footprint on the natural environment and habitat.
Opportunities and Threats Analysis

Opportunities
Waitrose can align its strategies so as to facilitate expansion operations within untapped parts of
the world. The respective practice can assess the form to increase its share in the market and
ensure that the company gets recognised and popularised among the global set of customers. In
addition to the same, the E-commerce portal of the firm Also be modified and designed in a more
creative and detailed manner (Ali and Anwar, 2021). This will further help the firm to Make a
deep knowledge and understanding about its offering to the customer line up in a more relevant
and reliable manner.
Threats
The pricing policies of Waitrose are quite expensive as compare to the other rival company. It
can hamper the sales of the company as customers will switch to the firm that provide quality
goods at low prices rather than paying a large sum of money for the same product at the
respective firm. Also, there are few new start-ups who are providing same services as Waitrose
within the United Kingdom supermarket industry. This can probably impact upon the targeting
of the concerned firm as there is the possibility of division in the market if the new start-ups
provide the healthier product options at viable prices
M1: Critical Analysis of the impact of macro environment in strategic decision making based on
application to the chosen organisation
Macro environment of Waitrose can have immense implication upon the process and strategies
regulated and implemented by the firm. The company needs to concentrate upon the political
factors as well as the social factors so as to maintain stability and consistency of the operations
for a long run. There are several opportunities that can help the firm to exercise its work
operations at the global domain. Also, the anticipation of threat is quite high so the firm needs to
incorporate certain prominent action plans that can assist the firm to be more effective in dealing
with the upcoming threats in an orderly manner.
P2: Internal environment and capabilities analysis:
RBV (Resources Based View Analysis)

Tangible
In context to Waitrose, the tangible assets of the firm can be characterised as its advanced
physical technology, machineries and equipments, firm’s property. The tangible resources
provide a good benefit to Waitrose in regulating its business operations in an appropriate and
considerate procedure.
Intangible
The intangible assets of Waitrose can be termed as its goodwill and reputation in the market
environment, the trademark written in the name of the company, intellectual property rights
acquired by the firm etc.
Heterogeneous
The respective company relies upon various diverse strategies and tactics so as to achieve major
uniqueness and creative proposition in the market (Eikelenboom and de Jong, 2021). The
company hikes up with prices in order to target a niche market and optimize upon the same.
Immobile
The business competency practiced by Waitrose and its advanced decision making criterion are
immobile and cannot be easily adopted by other units competing with the same.
Strengths and Weaknesses
Strengths
Marketing and advertisement approaches and medium utilised by Waitrose in order to enhance
the business activities of the firm can be termed as its most prominent advantage. The
advertisement strategies of the firm are proved to be quite effective in engaging the customers
towards the firm and increasing the sales as well. The ethical cultures practised at Waitrose are
extremely sincere and credible as compare to its competitor which allows the firm to lead a more
genuine and honest company in the market.
Weakness

The optimization of less market share as compare to the rival firms can be stated as a potential
weakness of the firm. Moreover, the reduced focus of the firm to cater to lower income
generating section can also turn into a huge drawback for the firm within the future run.
Value Chain Analysis
The operational and administrative procedure was led by Waitrose are quite smooth and
effective as they assist in helping the company to achieve desired and optimal results.
The sales and marketing process conducted by Waitrose is extremely advanced and high-tech.
The company utilizes several mediums and modes so as to reach out to larger client base and
persuade the same to invest within the products offered by Waitrose organization.
Human resource department of the firm is also very productive, adaptive, flexible and skilled
which in turn helps the firm to achieve its target goals in a more efficient and appropriate
mechanism.
The CRM operations facilitated by Waitrose are helpful in managing good rapport with the
customer and the company also focuses upon solving the concerns and queries as well as
providing after sales services to the client base to the best of its capability (Weng, 2020).
The infrastructure of Waitrose is effectively organized and systematically designed so as to boost
the competency of management and operational activities and promote more productivity within
the same.
Stakeholder’s Analysis
It is very vital to facilitate a stakeholder analysis so as to determine the potential stakeholders of
the firm and manage them in a significant way. The stakeholders of Waitrose can be termed as
the owner of the company, the shareholders, the investors, the employees, the customers, the
competitors, the media houses, government bodies and agencies etc.
M2: Critical evaluation of the impact of internal environment to assess strengths and weaknesses
of internal capabilities, structure and skill set by applying to the chosen organisation.
Internal environment of Waitrose is very prolific and proficient. Marketing channels as well as
operational competencies of the firm are very appreciable as they help the same to gain optimal

leverages within the business environment. Stakeholder management is also very impressive as
almost every given stakeholder is satisfied by the firm in a reasonable and considerate manner.
However, the lack of preference provided to the lower sections of the society can be depicted as
a major weakness for the firm. On a larger note, it can be stated that the internal capabilities of
Waitrose are very advanced and the continuous additions and specifications within the same can
further help the firm to acquire a more competent internal environment
P3: Porter’s five forces model by applying to the chosen organisation
 In context to supermarket industry, the entrances of new enterprises within the
supermarket sector of United Kingdom is much low. The reason for the same can be
stated as the high scale capital requirements needed to establish a supermarket chain
within the industry. Hence, the respective factor cannot possess a very huge impact upon
the business regulation of Waitrose in its concerned industry.
 The impact associated with the bargaining power of the customers is one of the major
factors that can impact upon the profitability of Waitrose. The customers often demand
for reduction in the prices as well as discounts and coupons so as to acquire quality goods
at minimum prices. The respective behaviour can lead to more switching of the
companies which in turn can possibly impact the revenue generation of the company.
 In case of Waitrose, the availability of supplier is very high as company runs at a good
scale and this is one of the reasons that it has good connectivity and network with various
alternative suppliers through which it can acquire raw material and other prominent stock
in a reliable manner.
 The substitution that is quite high in context to Waitrose firm, the potential reason for the
same is that Marks & Spencer as well as ALDA caters the optimum range of products
and services at affordable prices as compare to the Waitrose the organization (Habib and
Hasan, 2021). Hence, the respective factor can play a huge part in the sales operation of
the company.
 Although, Waitrose capitalize upon brilliant strategies in order to facilitate optimum
differentiation within its product range but the growing competition and aggressive
market can severely impact upon the division of profit within the supermarket industry.

Hence, the company needs to be highly alert in regard with the competitor’s strategy and
retaliate to the same in an efficient way.
M3: Appropriate strategies to improve competitive edge and market position based on the
outcomes of the Porter’s five forces model.
Competitive strategies that can facilitate Waitrose in improving its business profitability and
growth are as follows: -
 The company needs to introduce a separate section of products and services for the lower
income people as well. This will help to generate more profit for the firm and assess the
same to provide head-to-head competition to the rival companies as well.
 Unique selling proposition needs to be integrated within the company’s business
practices so as to project a more creative image of the company within the market.
 Also, enhanced alignment to the modifications in work culture and managerial functions
can allow the firm to accelerate its current degree of efficiency and tap into more
effective opportunities in the future run.
P4: Strategic planning on chosen organisation:
Ansoff Matrix Analysis
 Waitrose needs to excessively rely upon market penetration so as to increase the demand
for its current products and services within the existing business domain. The respective
strategy will allow the firm to generate more sales within its concern market environment
and develop the company in a more prominent manner.
 The company needs to also optimise upon product development ideas and concepts so as
to increase the standard of quality and specifications within its existing products and
optimise upon the same within the market (Drucker, 2020). In order to do so, marketing
research needs to be conducted by Waitrose and the firm needs to invest into research and
development process as well.

 The organization can also try to enter an untapped market with its existing offerings. This
will further increase the scope of capitalisation and market acquisition of the Waitrose
and helps the firm to strengthen its position within the industry.
 Also, the process of diversification can also help the firm to collaborate with new
partners and cater to fresh market with innovative products in order to establish the
company within the same and generate more revenues.
Porter’s Generic Strategic Model
 The utilization of cost leadership strategy can assist Waitrose to achieve economies of
scale and acquire immense profit margin through the same. The current operations of
Waitrose target supreme market and neglect the lower to medium income groups (Argus
and Samson, 2021). With the incorporation of cost leadership strategy, the company will
be able to expand its target market and develop in a more prominent manner.
 The company can also opt for differentiation strategy and facilitate innovative and
disruptive concepts in regard with products and services that has not been introduced
before within the market domain. It will enhance the degree of differentiation and
creativity provided by the company towards its target market and Increase the overall
growth of the company in the coming years.
 Also, Waitrose focuses upon niche market which is a good strategy for the firm and has
helped the company to establish itself in a strong manner within the market domain.
M4: strategic management plan that has tangible and tactical strategic priorities and objectives.
KPIs (Key performance indicators)
The optimal enhancement as well as acceleration within the revenue operation of Waitrose can
be termed as a key performance indicator for the firm,
In addition to that, the customer retention ratio of Waitrose is also one of the indicators towards
the degree of development through the years of business operations.
Also, the overall operational effectiveness regulated by the company in a continuous approach
reflects upon its performance in an appropriate mode.

Blue Ocean strategy
The focus of Waitrose should be provided to formulation of blue ocean within the market
wherein the company is able to generate a separate market for itself with no potential
competitors that can match up to the productivity and efficiency of the respective firm (Guliman,
2020). The unique proposition of the product needs to be encouraged and prices are required to
be facilitated in a reasonable manner so as to make the competition ineffective and irrelevant to a
great extent.
Benchmarking
With the amalgamation of benchmarking strategy, Waitrose organisation will be able to
effectively monitor the best potential process and procedure within the market domain and
incorporate the same within the current line of operation. This will further help the company to
formulate a structure and business process that is excellent and dynamic within the industry and
that is the benchmark for the other firms as well.
CSF (Critical Success factors)
The CSF factors need to be demonstrated in a detailed and defined manner so as to clearly
demonstrate the respective aims and aspirations of the business enterprise within the market
sector. In context to Waitrose, the major CSF factor is to provide quality offerings to its target
line up and promote the employee productivity in the work setting (Dhanuka and Sharma, 2020).
Value creation
Waitrose needs to constantly strive towards creation of valuable business process and products
and services in order to stay relevant in the market. The company should prioritize the process of
value creation in order to sustain its business operations for longer time phrase.
D1: Valid strategic directions, objectives and tactical actions to the chosen organisation:
KPIs
It can be said that the KPI of Waitrose seems appropriate and well structured. The firm aims to
focus upon quality generation and profit maximization which is an optimum approach that can
help the form to attain its future business objectives in a thriving manner.