Wilko Ltd: Evaluating Business Strategy, Environment & Competition

This report provides a comprehensive analysis of Wilko Ltd.'s business strategy, focusing on the impact of the macro environment and competitive forces. It examines the political, economic, social, technological, environmental, and legal factors affecting Wilko's operations. The report uses SWOT analysis to evaluate Wilko's internal capabilities, identifying strengths, weaknesses, opportunities, and threats. Furthermore, it applies Porter's Five Forces model to assess the competitive landscape, considering the threat of new entrants, bargaining power of suppliers and buyers, threat of substitute products, and competitive rivalry. The report also explores strategic planning models, including Ansoff matrix and Mintzberg's theory, to develop effective strategies for Wilko to achieve its organizational goals and maintain its market position. The analysis aims to provide insights into Wilko's strategic challenges and opportunities, offering recommendations for enhancing its competitive advantage and overall performance.

Business strategy

Contents
INTRODUCTION.......................................................................................................................................3
Exercise structure to inspect effect of macro environment on Wilko company.......................................3
Examine internal capabilities related to environment..............................................................................5
Porter’s five forces for competitive forces for the organization...............................................................7
Models and theories of strategic planning in organization.......................................................................9
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Business strategy is process of creating idea, thoughts that defined how company will
compete with their workplace in order to achieve organizational objectives. It requires proper
execution for implementing in firm that helps in attain aims of company (Lanzolla and Markides,
2021). The above report is based on Wilko Ltd. Company which is manufactured as purpose of
retailer and headquartered in England, UK. Mainly focus on product of household essentials
including sanitation products, stationery etc. That is essential for everyday life of individuals to
live in market. The study is based on administer structure that effect macro environment and its
strategies by examine their capabilities in chosen firm. Furthermore, also cover Porter's Five
Forces concept to evaluate competitive forces for company by applying range of models and
interpret strategic planning for firm. It will also implement Ansoff matrix and Mintzberg's theory
for Wilko. To which organization makes effective plan that contribute towards achievement of
targets and objectives of company. It will also develop strategies for management that derive
aims of its, formation of proper execution in accordance to project that has assigned by SWOT
and PESTLE analysis.
Exercise structure to inspect effect of macro environment on Wilko company
Companies in retail and other sectors are facing numbers of problems because of
changing factors of business environment. Business environment is made up of internal and
external factors. Changes may happen in such factors anytime. Changes in internal
environmental factors rely on changes in external environmental factors. Macro environment is
known as external environment which includes: political stability of country, economic
condition, social behavior, technological factors and others. Changes in all these factors affect
company's overall performance in both positive and negative manner. Some factors that may
affect business strategies of Wilko retailer company are explained below;
Political- This stability plays a fundamental role on business performance. In regard to
political condition of UK, it is found that there are multiple governmental acts that impact on UK
food retailers. Retailers are required to follow all rules for improving quality of food. There is
consistency in policy making and implementation because government adheres all rules under
world trade organization norms that may be beneficial for Wilko (Massihi, Abdolvand and

Harandi, 2021). Government have been patronizing the activities of company very productively,
by having good relationship with political parties as well. On the other hand, there have been
several changes that occurred by bad political conditions.
Economic- It is determined through different elements that are bank rate, rate of
inflation, foreign change rate etc. Brexit has changed economic condition of UK as it has
increased inflationary pressure. Due to rises in oil and other prices, consumers do not invest in
clothing, flowers and other products that Wilko offers. So, it can lower profit margin of this
supermarket. The role of economic impact is so much numerous that responsibility are getting
assured. The employees are making the role in meeting goals activities as well. In this way, the
commercial understanding and getting sure also, managed. In this way, the economic
understanding is getting assured and manged in preferred way. However, they have added so
many giant amount in GDP OF UK as well.
Social- This element is related to basic surroundings that serves as ethics, culture, beliefs
based on analytical population within company conduct. Raising age population is creating
numbers of opportunities for retailers as it can increase sales of companies (Hughes and et.al,
2021). On the other hand, it is found that people are becoming health and environmental
conscious and for satisfying customers' needs, companies need to focus on improving
sustainability and quality of products. New brand positioning can also help Wilko in attracting
customers and retaining them. They were able to maintain strong relationship with social parties
within system. This is how the role of civil formals can be demonstrated.
Technological- In context to organization, this means automation of it changes every day
because of that impact company. Implementation of advanced technologies within organizations
is increasing competition for retailers, and they are striving hard for being in the competition. For
minimizing and dealing with this factor, firm has started using artificial intelligence to stock its
stores and drive sales. It can help this retailer in managing big data and business more effective
as well as responsive to customers (Suhariyono, Sunitiyoso and Yuniarto, 2021). Wilko has
skilled employees who mainly focuses on research and development and it helps this retailer in
collecting information related to customers. In this case there will be several needs of
technological understanding as well. Once they are able to manage mechanical understanding,
organizational efficiency can easily be assured that affect environment.

Environmental- They become beneficial because lack of goods that influences
government sector by aiming at them. By growing alertness towards workplace in order to
enhance productivity in market. It is stated that people are becoming environmental conscious as
they prefer buying products from companies that promotes sustainability. For all organization it
is essential to make use of natural resources to some extent. It is found that Wilko is striving hard
for decreasing carbon emission in order to make people feel valued and decreasing negative
environmental effects. It offers plastic free fruits options and it has banned plastic bags and
customers need to carry their bags for buying products, or they will be provided with cloths bags.
Furthermore, are also following several issues in this matter.
Legal- In regard to Wilko, business have to perform legal functions related to
organization in order to follow rules and regulation related to government. There are some
legislation and laws related to household essentials or other products for standard and quality. It
is significance for all retailers to adhere to food quality standards in order to protect themselves
against lawsuit and improving health of customers. Company has its own legal guidance that
support compliance with several regulations. According to understanding all legal factors, within
firm which is dealing with factors so, it has been well managed from side. In order to achieve
firm goals and objectives to maintain their presence in market by building reputation.
Examine internal capabilities related to environment
By using SWOT analysis environment efficiency is determined because it defines
strength, weaknesses, opportunities and threats that occur in company through different sources
with the aim of distinguish or identify them in accordance to achieve organizational goals and
targets, which is explained below;
Strength- It is refers to as determining subjective, positive characteristics that evaluate power of
company which they have in their inner area and manage through force. Wilko has many stores
and every state is supported by a strong distribution network that makes sure that its products and
services are available easily to large number of consumers in a timely basis. It has a structure that
consider low costs and sell it's to products at low price and makes affordable for their customers
that is advantage for an organization in order to build strength to company (Al-Baldawi and et.al,
2021). Another strength of this company is its loyal customers, especially they aim at getting
focus on their success. Company has huge range of blades which will attract more consumer

towards their goods and great influence on them. Also, they have large area in market which is
strength for firm because its benefit to them through their sector.
Weaknesses- They have major fragility that it has no good presence in marketing area
through which are not able to gain more customer for their organization. Also, not have structure
of their own which is drawback for Wilko. In regard to company, it has to provide good
manufacturer to their customer is order of build consumers towards their product. Better brand is
not for all firm, but having the best strategy for management is also needed to attain targets of it.
The weakness of organization, is that a significant proportion of the property that it owns is
rented rather than purchased consumes large amount of rent on these adding to its costs.
There is lack of proper financial planning in company regarding cash flows, leading to certain
circumstances where there isn't enough cash flow as required leading to unnecessary unplanned
borrowings. The company has high employee turnover rate compared to competitors, this means
that it have more individuals who leave job and as result spending more time on training and
development as employees keep leaving and joining. The marketing of the products left a lot to
be desired. Even though the product is a success in terms of sale but its positioning and unique
selling proposition is not clearly defined which may lead to attacks in the segment from the
competitors.
Opportunities- Wilko may use social media to promote its products, interact with its
consumers and collect feedback from them through various source of social media such as
Twitter, Instagram, YouTube etc. That have shown the greatest number of monthly active users.
Another opportunity is there has been rise in average household income along with an increase in
customer spending following recession (JATMIKO and et.al, 2021). This may result in growth of
firm target market with new consumers that may be attracted towards the company. The new
technology provides an opportunity to organization, practices differentiated pricing strategy in
the new market. It facilitates the firm to maintain its loyal customers with great service and new
customers through other value oriented propositions. They have convenience to go in worldwide
sector where they can settle products in markets to achieve objectives of firm by their expansion
in other areas. Their products are considered as opportunities for them to develop brand or
presence in market.
Threats- As Wilko, they have major risk is that must be got out taxing policy, statutory

problems, evaluate economy of specific region. Also, occurring workers cost is may be problem
for organization. Company have major risk because of rapid increase in competition market
which may lead to decrease in the productivity of firm due to which revenue reduced and adjusts
in price changes occurs drastic loss of market share. Another drawback is customer tastes are
changing and this put pressure on companies to constantly change their products to meet the
customer demands. An increased promotion by customers have been a threat for an organization.
As the company is operating in numerous countries, it is exposed to currency fluctuations
especially given the volatile political climate in number of markets across the world.
Porter’s five forces for competitive forces for the organization
Porter five forces model are used to evaluate the competitive environment for the company
(Demil, Lecocq and Warnier, 2018). It gives the strategical analysis to the company to follow the idea to
deal with competition in their market field. it gives the complete information related to the market
through which company can use the information in their designing process to maintain their position in
the market.
Porter five forces are as follows-
Threat of new entrants:
In which it describes that the if company has stable position in the market then they do not need
to make changes in their product and services. This factor defines that if some other company also come
with the same product similar to the organization which can directly impact the performance of the
existing company (Oldman and Tomkins, 2018). Every new company enters the market with the
affordable price they first set their product on lowest price, which attracts more customer in the market
because customer always looking for the product who are low at the price so that it can satisfy their needs
and desires. Therefore, Wilko company can consider some point to deal with such type of situation they
can proceed with making innovation in their product so that it will fulfill the demands of the customer.
Wilko company can invest their money and time in their research process so that they got to know about
the additional information of the market which helps them to design a product which satisfy the consumer
need.
Bargaining power of the supplier:
It defines as the supplier of raw material in the market can anytime increase the price on their raw
materials. So that have the power to charge extra to the company against their raw materials. It is not a
win-win situation for the company they have to pay more for the resources ( Aithal, 2017). They also

can’t able to negotiate the supplier because they are the only who provide the resources for the production
process of their company. Wilko company can sort such type of situation by taking their raw materials
from different suppliers. Also, they can develop a good relation with the supplier so that they can give
them a cost advantage. Company can also develop the alternatives of the resources so that if there is any
rise in the price of the resources they can use their alternative resources. It can save their time and money.
Bargaining power of the Buyers:
It is the most important factor as buyers are the one who describe the company’s success rate. For
every company their customers are very important for that purpose company need to make innovations
and invention in their product to meet the desires of their customers. Buyers demands a lot, they always
want a product which are cheaper at rate and also consist of good quality. Therefore, this factor puts a lot
of pressure on Wilko company to fulfil the demands of their customer otherwise they will not be able to
retain their potential customer (Pervan, Curak and Pavic Kramaric, 2018). For that purpose, Wilko
company can do some things as they can proceed to lure the customer by giving them a good services and
product at affordable price which can increase their customer base. Also, company can do invention and
innovation so that it meets their customer’s desires.
Threats of Substitute products or services:
When in the market the substitution of the product exists then it will be difficult for the company
to reach their maximum sales. As customer always searching for the substitution of the product if one
company offers the same product at low price then definitely customer go with other company. For Wilko
company they are retailer industry if the same retailer company can launch the item with the lowest price
can also attract their customer so it becomes difficult for the company to maintain their position.
Company can do some things to deal with these threats they can proceed with delivering good product
and services to their customer so that they will remain loyal to them. Also, they need to be service
oriented not only focusing on the product. As good delivery of the services can enable the customer to
buy their product again. Wilko company can also proceed to know the core desire of their customers as
what they actually want which can help them to design product which can satisfy their needs ( Bruijl,
2018).
Rivalry among existing competitors:
It can be understood as if rivalry between the companies are intense in the market can
directly impact the company’s performance also badly affect the profitability rate of the
company. For that purpose, Wilko company need to proceed with collaborating with their rivalry

company in their market so that it will help both the company also it will drive more customers
towards their product and services. Wilko company can also proceed with designing sustainable
product so that it will develop more customers for them which can play a main role to develop
the good revenues for the company.
Models and theories of strategic planning in organization
Application and development of theories and models for strategic planning very beneficial for the
effective organization performance. It develops good understanding and better relation between owner
and employee, also it improves productivity business productivity as well (Hacioğlu, Doğan and
Akdemir, 2021). On the basis of retail industry Wilko organization owner consider and applies theories
for their strategic planning and decision-making process because they provide their services by various
products. Theories of organization strategic management planning are as follows,
Mintzberg's theory
On the basis of this theory organization manager has to involve ten roles and divided
sections into three categories like interpersonal, decision and informational. This theory is
mainly explained the roles of manager and manager has responsibilities to manage effective
organization management plan. Wilko company consider and applies this theory for their
multiple department manager and management of employee performance.
Interpersonal:
Manager develops social activities to engage people and connect them for particular task,
and develop professional skills as well. Next one is leader responsible to develop motivation in
the employee and encourage them for business task because it improves the quality of work and
this process of strategic plan can generate new opportunity as well. Last is to manager has to
focuses on the build good relationship with the stakeholder because they are key of overall
business plan. On the basis of Wilko organization they consider this approach and develop good
relationship with the employee as well as customers.
Informational:
Manager has responsibility to discuss, explain thoughts, ideas, to their team member and
provides them information about how to perform particular task, but manger has to spoke every

task with polite and well-spoken manner so that people feel more engage and perform their task
effectively. Every organization has to develop managers so company can easily manage their
task.
Decisional:
On the basis of this theory company manager has to follow and develop new changes
discuss with the employee its not good for overall business performance that company only
consider and develop new decision without discussion with the existing employee. It develops
conflicts and develop threats between manager and employee so its essential that when
organization prepares any decision, they mainly discuss with the employee as well.
Ansoff Matrix
Ansoff matrix refers to effectively product expansion in the market, various companies
uses this strategy for the expansion of effective growth and develop of the company. It is mainly
divided into the four part, mainly this matrix develops for the firm growth and risk management
(Fedushko and et.al., 2021). Organization develops this growth strategic plan are as follows,
Market penetration:
Major goal of this strategy to improves the company sales with existing product this
strategy beneficial that how company can influence and boost their sales with the proper
utilization of resources. Wilko company consider and applies this strategy for generate profit.
Market development
Organization wants to develop their business activities in different place or when
company wants to improve their business with new product launch they can apply this strategy
for new market development.
Product Development-
Company aiming at offering new goods or services to an extant sector in order to achieve
goals and objectives of firm by developing products in innovative or creative way. It focuses on
introducing new products to an existing market in the company. In regard to Wilko, is may
definitely design and development of new products and has continued to develop new services to
meet customer needs and requirements. For example, by innovating existing product into new

may develop product from their creative way to create product in attractive manner that increase
profitability of product to the organization in order to do so it has to develop growth in product
by developing them into new form. It may be suitable for company strength are related to its
specific consumers rather than to specific product itself. In this situation, it may leverage its
strength by developing new product that targeted to its existing consumers.
Diversification-
In context to Wilko, it centers on coming new sector with establishment of modern
products through diversified it, customer comes into current market in order to build creativity
among them. It refers to new market sales of new products and consider as one of the riskiest
development tactics because goods, as well industries are fresh or unfamiliar. Also, important to
note his begun path with software device and has created many modern, fundamental different
items. In current scenario diversification takes place in every aspect due to changes takes place in
environment that affect organization in order to diversify it has to create new sales of markets by
considering their risk.
CONCLUSION
From the above report it is concluded that effective business strategy can play a crucial
role to grow the good revenues for the company. Implementation of business strategy can helped
the organization to carried out their operation effectively. SWOT and pestle analysis of the
organization could help them to know about the internal and external factor about their company
so that they got to know about the functionalities and can proceed to work on to accomplished
their successive goals. This report further described about the frameworks which explained the
capabilities of the company. Porter five forces helped the organization to know about their
competitive environment it helped the company to retained their customers by providing better
services and products. Report further discussed the theories in which it described about the
strategic plan for the organization. proper evaluation of the strategic plan could help the
organization to achieve their goals of success also enabled them to earn more revenues for their
company. Furthermore, also implement Mintzberg's and Ansoff matrix theories in organization
for attaining goals of Wilko.