Leadership and Management – BMS4677
Summative Assignment
Student Id: M00642531
Evaluation of Leadership and Management in a supermarket company
Abstract
In every business organisation or company need a skilled leaders or managers are necessary for prosperity and development of organisation. if you are evaluating every major industrial organisation, we could find success and popularity of that particular organisation lies in the skill, ability and confidence of the leaders of particular company. A very famous supermarket which was founded in UK is evaluated here. In this assignment we focused on analysing the issues regarding the leadership and management of this supermarket in the current situation. The infrastructure and management style of the company is studies and evaluated. The possible improvements to lead the company in the right direction without possible difficulties are implemented. The effectiveness of the implemented technique is periodically monitored and evaluated.
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Introduction
ABC super market was created by farmers from Yorkshire (which is in north of England) in 1965. Later it is formed in south of England in the years between 1970’s and 1980’s and started competition with other stores in 1989. In 1991 and 1993, this super market faced lot of problems and almost at the precarious edge as it was difficult for the company to offer excessive number of various items. In 1999, it has become part of one shopping giant market of US. Later more and more new customers were gained by this giant market. CITATION UKe15 l 16393 (essays, 2015)ABC super market has become second largest supermarket in UK owned by United States. It offers beverages and food items, clothing, stationary items and electronic devices etc. This super market managers operates through online and super markets as well. It is most popular for the service of economic products. It has focused on low cost on many products and became cheap price super market. This super market defines its culture by making their official website. Money saving and low cost on items is their main culture as always saving money is not a company protocol, but it is unique and look after customers. It has been part of the four famous supermarkets in UK, however it is now moved to 2nd place by overtaking other retail store’s after disappointing sales. It has become higher competition to top 5 supermarkets in UK. The research says that it requires a change in its strategy to concentrate on distribution of products. However, the customers get attach emotionally if they sell more local products. CITATION UKe15 l 16393 (essays, 2015)The following assignment will be discussing about the ABC supermarket and its present external environment and strategies. The recommendations will be made if the current strategies require any change to promote good business in the ethical sense.
PESTLE Analysis
It plays very vital role for marketing strategy. However, it is analysed by marketing professionals which the factors affect the pan of business. Pestle stands for Political, Economic, Social, Technological, Legal and environmental.
Political
Worldwide, National and EU controls and mandates influence on business, customer rights and charges may affect this supermarket like other industries. It profits by a generally stable political condition in the UK. CITATION Drs17 l 16393 (sodry, 2017) Taxes are increased as part of the alcohol policy, but many queries came in between like how it shows impact. To sort it out that might be used to blame if a product is sold out as below cost. The concern of liquor already remarked that tax increment is a begin. Basic pricing will be the best arrangement policy and it keeps super markets away from increasing tax on liquor. This super market managers study the impact on their strategy of maintaining low costs. CITATION UKe15 l 16393 (essays, 2015)Economical
It should consider its costs economically like the pay level. Cost or credit, aggressive weights, employees and request vitality costs. These economic costs may affect the strategy of pricing of this company. CITATION Drs17 l 16393 (sodry, 2017) The normal people spend their salary on food about 10%. However, it increases to 15% on their minimal earnings. CITATION UKe15 l 16393 (essays, 2015)Social
For advertisements, the social media is used as an advantage. Multicultural society growth may increase the demand for a goods media and food range as well as power of customers. CITATION Ari18 l 16393 (cohen, 2018) Matured population, famous people following, and healthy individuals are essential for this supermarket, these factors helps to promote the products in the market. CITATION Drs17 l 16393 (sodry, 2017)Technological
Make the customers more convenient and easy to buy the products and provide discounts as well. While the customer pays the bill, provide them contact less payment and checkouts should be done automatically. This super market provides the online services those who are busy in their life styles. Just click and collect the delivery. CITATION Ari18 l 16393 (cohen, 2018) By using high technology, it is developing regularly, superfast broadband. The most essential thing is delivery services by using mobile applications. The other big markets usually they are working to get best by using technology. CITATION Drs17 l 16393 (sodry, 2017)Environmental
The essential elements of this company are hazardous waste, green economy, contamination and natural nourishments. As population has awareness about the environment it is a lot of pressure on all industries to work in an eco-friendly manner. Hence this supermarket must exhibit that it is an eco-friendly organization. CITATION Drs17 l 16393 (sodry, 2017)Legal
It should be maintained by the rules and regulations and control of the nations. If any break it may brings out correctional activities by authorities. For example, this supermarket should pay the workers according to wage in the UK and should not terminate employees without proper reasons. If it happens the worker can take the supermarket to a business court. CITATION Drs17 l 16393 (sodry, 2017)The above discussed analysis tells that it is experiencing lot of changes in the market. So, this super market requires a new change in strategy to retain the customers.
SWOT Analysis
The purpose of this analysis deals with external and internal aspects of company. The external factors of company are opportunities and threats whereas the internal factors of company are strengths and weaknesses
Strengths
This store contains all kind of products and more convenient to customers. The primary factor is keep low costs and money saving. Information technology supports in operations when the company has a competition with other stores. The customer’s feedback plays prominent role in the company’s business. This super market recognised that it has a better growth in the UK. CITATION Drs17 l 16393 (sodry, 2017) There are about 525 stores in the United Kingdom. It is still the 2nd largest supermarket in the UK. It has the ability to increase the shares. It has good in touch with the customers via social media. CITATION Rod17 l 16393 (Rodrigo, 2017)Weakness
The main weakness for this super market industry is absence of convenience stores and mini stores or express stores like other companies. Some critical reports say that products from this store is not as good as other store products. Even if it has information technology advantages, it is weak in few places because of long way to control. There is no Clubcard for this super market to attract the customers. CITATION Drs17 l 16393 (sodry, 2017) As compared with other stores, it has very limited global appearance and no petrol stations as well. The standard quality of food. In many European countries, they get restricted to build big stores in rural areas because the country fears an opposition with nearby merchants. CITATION Rod17 l 16393 (Rodrigo, 2017)Opportunities
It has lot of opportunities to become world famous. As it grows in food and non-food markets. According to part time chairman of this super market set some targets like to become 2nd place to 1st place in the UK and to open small stores about 100 in number like other companies. Most of the customers does shopping through online in UK and it is the better opportunity for this super market to build up online market. CITATION Drs17 l 16393 (sodry, 2017) Growing in new areas of jewellery, pharmacies. photograph office and opticians. The business sectors are developing like china and India. It has opportunity to develop petrol stations and express stores like other companies.
Threats
This super market has a threat on competition with small stores. The other stores keep the price of products constant whereas this store changes randomly. Local stores which are independent are also good in online services also a threat for this super market. CITATION Drs17 l 16393 (sodry, 2017) As few companies rapidly growing with their discount rates, it remains threat to this supermarket. When other companies maintain low prices then lot of pressure on this company and have to maintain the same to get more sales. CITATION Rod17 l 16393 (Rodrigo, 2017)The above analysis is saying that the main drawbacks are this supermarket should work under pressure with other store discounters and it is also one of the threats to the business as fall in sales. However, there are lot of chances to build up the company by expanding its market to clear drawbacks. Ethically should improve the food sources and problems like locality and food safety.
Developing an improvement plan
Objectives
As we discussed SWOT analysis specially should change weaknesses in to opportunities with the help of their strengths. Initially this supermarket goals have been concentrated on customer esteem. However later they have given discounts on many products and work under pressure to look after customers. Therefore, the customers may attract and will be back to stores. The main goal for this supermarket is to attract the customers with the introduction of new products and discounts on some products as well. They should continue competition with other stores and proceed some with new stores as well. CITATION pet11 l 16393 (peter.j.p, 2011)implementation
This supermarket will plan to divide the company into categories depends on income, demographics and location etc.by appointing the different people for different sections of the strategic business plan and it will help the success of implementation stage.
However, given advertising efforts attempted by the business and no doubt this super market has divided the market. Looking forward to few people those who get low income. Being the least expensive is best option of its essential to reach target. After this the company became popular on this action plan, special focus on minimal cost which could obstructs quality. However, new participants given, and rivalry Increased when it is situated itself in the minimal cost end of the market. Now it finds difficulty to create with new rivalry. The action plan supported this supermarket throughout the long stretches and the conditions have enhanced financially, and basically buyers have exchanged up. This supermarket offered help for other retailers then stood up themselves at the higher end of the market. CITATION pet11 l 16393 (peter.j.p, 2011)This supermarket feels that as of now, its business situated to limit. the two ways by which the retailer can widen its customer base, this can be either changes to promotions which will focus on other market or by separating the products to a more extensive base of customers. CITATION Arm12 l 16393 (Armstrong, 2012)As this supermarket is not aware of outcomes would turn out and it is not good to invest lot of money to start new things. Hence it should start as a trial it in a small scale. Later have to check progress then according to that we should take forward steps.
Action plans
As we discussed above, the fundamental strategy for this supermarket is to expel this consistent focus on cost and hope to spotlight on moral issues and to re-situate in the market itself. For example, maintenance which suggests the quality. The retailer has various activities to do this.
This supermarket moves to centre around any local place and special emphasis on provide more UK deliver in-stores. The main advantage here is wont be higher offers of products. Maintain positive public relations which tells that customers can trust and will have confidence on company and supports nearby networks and neighbourhood agriculturists. While negative public relations which tells customers to avoid this market whereas strong public relation plan needs to contact the people and explain the awareness of goodness about market. This market will also promote new products into good stores and this viewed as division and it attracts the new customers and it could be promoted by this supermarket to focus on these particular customers. CITATION Rod17 l 16393 (Rodrigo, 2017)Change in strategy
The main objective of marketing is seen as fundamental expenses. Suppose, with regards to the ‘Accommodation path’ and it denotes that there is infrastructure already. To make new passage way the stores will have to rearrange around stock. When it comes to promote the new items, the expenses should be more down became the neighbourhood joins to build up. As opposed a price financially, the presentation of more nearby items could be additional tedious for this supermarket and they should provide the guarantee that the new products are good in terms of quality and cost. CITATION Fer12 l 16393 (Ferrell, 2012)Strategy should be built on value and price. This super market is going to concentrate mainly on values. However, this super market should provide low price on products instead of offering vouchers. This super market should offer club cards to everyone like other stores. CITATION Ari18 l 16393 (cohen, 2018)Advertising will be done through TV channels about new products of this supermarket and the furious rivalry within the UK supermarket. While this supermarket will include a higher price. TV ads and print promotions would be trusted and more consideration will happen so that more publicity for more people. When we do advertisements with the help of social media. Advance marketing will use and with the help of online services, banner ads will be done. CITATION Cha12 l 16393 (Chaffey, 2012)Social media is the best way to get customers feedback and it will help us to get an idea whether customer is happy with product and service or not and we can change according to their convenient.
Challenges
When this super market was purchased by one US shopping giant store, all top UK super markets get threatened. Now, this store can be rivalry with any stores in terms of low cost on products and good service. All other stores well known about this store as it keeps the price cuts and different special offers. In future, this can dominant any store in terms of excellent presentation of all products. This super market doesn’t participate competition with small stores as it is not present in organisation strategy of real estate and it keeps challenging for giant super markets. Because of competitors, this store may loose customers, as they feel to shop in stores which are very near to them. CITATION UKe15 l 16393 (essays, 2015)Vision – To be best always in terms of food service and customer needs
Mission – To make services and products more convenient for everyone
Core values – Respect for the one who provides best service to customers.
Impact of Action plan
Management remains an essential thought, guaranteeing a level in the promoting message and checking the return of investment as well. When it comes to stability, the marketing may show changes in the commercial centre, the business hope to look after its core values. Suppose the core values stay with the motto “save money, live better” when the emphasis on new showcasing efforts on nearby deliver lot of changes may progress to present customers getting to be isolates with its qualities and the business as well. CITATION Cha12 l 16393 (Chaffey, 2012)Management also comes with return on investment (ROI). All organizations should be aware of their promoting spend is creating profits. The marketing of items or products with the help of digital channels to convey customers enables to track this. This process is also known as digital marketing. The marketing of products through print ads such as newspaper bill boards and flyers. This process is also known as traditional marketing and this kind marketing get difficult to manage in return on investment anyway, a specific publication or TV may have driven request. However, this supermarket should move with unified marketing strategy So that it can change all promotions in a solitary message. Therefore, the organization understands the return on investment of the battle. CITATION Cha12 l 16393 (Chaffey, 2012)Conclusion
To conclude, in past, this supermarket concentrated mostly on advertising anticipate value and hoping to reduce prices. As some products which are low cost seen as a harmful to the environment, this wouldn’t be viewed as moral consumerism. However, this supermarket placed in to a market section due to more rivalry and same time the span of the market might moderate and enhancing financial aspects in the UK as well. To battle this, this supermarket has opportunity to develop petrol stations and express stores or mini stores like other stores and also has a chance to retain the customers by introducing the new products and brands. This supermarket’s external factors are generally disturbed. However, this supermarket became the second largest supermarket in the UK because of products with low prices and good service. Technically, online market is in great service. However, it has bit competition with other online markets. This supermarket should be providing products with minimal cost and great quality products as well. This supermarket should focus on online services and regular customers to stores.
References
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