This sample will let you know about :-
- What is Business environment ?
- Discuss about the Products and services offered by Waitrose.
- Discuss about the Value chain analysis of Waitrose.
Business environment is mainly consist of both the external as well as internal factors which places remarkable influence over their performance. It mainly includes clients, market trends, customers needs, government, social trends, economical changes, suppliers, supply and demand etc. Business managers are now a days focusing on developing their understanding over business environment so that they can easily manage their business activities and attain their predetermined goals and objectives in quicker manner (Mandal and Bagchi, 2016). The present report is based on Waitrose, a large scale supermarket with operates all of its stores within UK only. This report includes detailed information on company background, its competitive analysis with the usage of Porter's five force framework. Also, the report has further explained about value chain analysis that provides guidance to the company in managing business work at different level of changes which are implemented in the company for attaining competitive edge.
Background of company
Waitrose was initially initiated in the year 1904 as a small scale grocery store in West London. After approximately two years David Taylor has left the business and started his own with the name Waitrose. This time around 10 stores were opened and all of them were effectively handled by 160 employees. In the year 1955, chain of Waitrose supermarket has been initiated with the motive of its expansion in London. The passing time has brought range of changes in the Supermarket with the main motive of improving their market presence and attaining success in quicker manner (Cassidy, 2016). Since 2000, the respective supermarket has started focusing on buying shops from other super markets of London like Morrisons, Woolworths, Sandpiper CI, Somerfield etc. This has contributed a lot in the growth of Waitrose and supported in enhancing its profitability with the passing time. Get Assignment Examples? Talk to our Experts!
Products and services offered by Waitrose
Waitrose geneally offers all kind of grocery items within its stores satisfies its customers effectively in efefctive manner. Its product range it basically related to food items, organic products, everyday essential, etc. All of these products are mainly delivered under different names like Essential Waitrose, Waitrose Duchy organic, Waitrose and Other Waitrose & Partners brands. In Waitrose essential higher standard products are mainly delivered to its customers. It mainly belongs to entry level tier where around 1500 products like lunch box, health and beauty, fresh, grocery etc. are offered to its customers. In Waitrose Duchy organic mainly organic farm products are offered to its customers. In Waitrose 1, fresh and ambient products are delivered to its customers. The respected company also provides option of online delivery services to its customers.
Analyse the competitive environment
UK's supermarket industry has been acknowledged as most competitive sector as it has range of rivals within the industry. For developing business performance in adequate manner, it is highly important for the companies to enhance their understanding over the industry in which they are dealing (Avgerou and Walsham, 2017). With reference to Waitrose, it has been analysed that its respective manager is planning to conduct industrial analysis by making use of Porter's five force framework in order to enhance their understanding over competitive environment of the supermarket industry in effective form. Porter's five force analysis is explored as the effective framework that analysis overall industry in detailed manner. This framework is consist of 5 forces which contributes in analysing overall industry deeply by evaluating its each and every aspect. All five forces in context of Waitrose has been described as below in detailed manner:
Bargaining Power of Buyers(High): The influence of this force is determined as high for Waitrose. This is so because, there are range of supermarket available in UK which are offering almost Similar kind of service as well as products to customers at same prices. This could become major concern of for the Waitrose as thee are higher chances that its customers might move to another supermarket which is nearer to them and also serves them in better form. This simply states that bargaining power of the buyer is higher as if they rejects Waitrose due to any reason that might be product, price or services then it will hamper performance of the respective supermarket. In order to overcome this, it is essential for Waitrose to acquires new schemes and methods in order to sustain their customers loyal with them for longer period of time.
Bargaining Power of Suppliers(Low): Suppliers are the one who provides raw material to the company which is being further processed and sold in external marker. In context of Waitrose, bargaining power of supplier for the respective supermarket is highly low. This is so because there are range of suppliers within UK which offers almost similar quality of raw material to the supermarkets. It can be further said that if suppliers of Waitrose do not agrees to quotation given by the Waitrose then the respective supermarket has option to move to the another one. Waitrose owes good market presence in UK and always large orders to its supplier (Chen and et. al., 2017). Therefore, its supplier always to tries to get agree on the quotations given by Waitrose. This simply depicts that bargaining power of supplier is highly low for respected supermarket. Take Management Assignment Help from professional experts!
Threat of new entrants(Moderate): New entrants are the one who enters into new market in order to develop their presence and position themselves effectively within the industry. With reference to Supermarket industry, it has been analysed that it is difficult for new companies to enter into this industry and establish their business in rightful manner. The main reason behind this is that it requires huge capital investment also it would be difficult for new entrants to handle flow of customers and attract new one towards. Therefore, threat of new entrants for Waitrose is quite moderate for Waitrose as it has strong brand image within UK market and it would be quite tuff for new entrants to enter into the same industry and snatch its customers in right form. Along with this, it can also be said that this is only possible for any large scale company who can manage financial trouble at the time of establishing their business in supermarket sector. This shows moderate influence of this force.
Threat of substitutes(High): Supermarket industry has also lots of market leader who takes several initiatives to attract large number of customers towards them 9in order to improvise their sales performance and enhance their profitability (Chuang and Huang, 2018). For this, these companies introduces new products and services for the customers which could easily replace existing products and helps company in influencing more number of customers towards them. In context of Waitriose, it has been determined that the respective supermarket has major threat from its rivalry as if they have introduced any sort of substitute product then this would directly hamper their performance as well as profitability because their customers might move rivalry. In order to tackle this situation in rightful manner, it can be said that Waitrose should conduct market research at regular basis in order to develop their understanding towards customers changing needs and preferences. This ultimately helps them out in formulating new products accordingly and manage their position within the industry in appropriate manner.
Competitive rivalry(High): Competitiveness with supermarket industry is very dense. This clearly shows that the respective sector is having huge number of companies which are leading marketplace in effective manner (Phadermrod, Crowder and Wills, 2019). Main market leaders of UK's supermarket industry are ASDA, TESCO, Morrisons, Sainsbury's, ALDI, Iceland, Lidi, Ocado etc. It has been seen that all of these companies has huge number of loyal customers which supports them maintaining their sales performance and achieving organisational goals in quicker manner. Effective presence of all supermarkets within UK market directly reduces their own market share. It can be further said that for handling situation in appropriate manner it is essential for the large scale supermarket companies to collaborate with their rival only. By doing so they can easily enhance their market share within the UK. Also, with one another's support both the collaborated firms can expand their business outside the UK too. From this, it can be said that collaboration with the same sector company will provide support to Waitrose in sustaining longer in the industry with higher profitability.
Value chain analysis of Waitrose
Value chain analysis is mainly determined as the effective framework which helps company in exploring the activities that contributes in adding value to the firm that directly helps them out in gaining competitive edge. Usage of this framework directly supports company in enhancing their profitability (Benitez and et. al., 2018). With reference to Waitrose, it has been determined that the respective supermarket has made use of this framework in order to improvise their sales performance in effective manner. In this regard, respective manager of the company has planned to conduct value chain analysis which includes many terms that are stated as below:
Inbound logistics includes range of activities like retrieving, storing, supplying raw materials and transform them into final product. It is also determined as the first and foremost activity which manages various operations. In context of Waitrose, it has been analysed that inbound logistics of this company are highly complex as it supplies overall goods in its 300 plus stores within UK. Also, the company provides high quality products to its customers directly helps firm in attaining competitive edge at marketplace.
This is mainly determined as the procedure which transforms overall raw material into finished goods. With reference to Waitrose, it has been acknowledged that the respective company has been engaged into range of operational activities like assembling, packaging, machining and others (Stein and Barron, 2017). At respective level, overall products is completely ready to ready with main features like packaging, displaying and others. Also, flow of these developed goods is quite smooth which helps firm in gaining competitive edge. Waitrose believes in offering reasonable products and services to its customers which converts these customers into loyal one for firm for longer period of time.
Outbound logistics mainly covers several activities like warehousing, material handling and transporting finished goods to its final destination. It is mainly determined as the effective value chain analysis that supports company in gaining competitive edge. Waitrose owes strong supply chain system which supports company in delivery products to its customers in timely manner. This ultimately results in the increase of sales performance of the company as its customers are getting good quality products at timely manner which influences them to make purchase from same company in rapid manner.
Analyse any two support activities in Porter's Value Chain of Waitrose
Supportive activities helps company in coordinating their business activities in rightful manner. This directly helps company in taking effective decisions which are helpful for the company in gaining competitive edge (Mudambi and Puck, 2016). In context of Waitrose, it has been analysed that two main support activities of value chain analysis are human resource management and technological advancement. Both of them are stated as below:
- Human Resources Management: This respective department mainly works for selecting right person for the right job position so that organisational productivity could be enhanced and also helps company in attaining all of its goals in rapid manner. In context of Waitrose, it has been analysed that the respective company believes in providing training to its employees at constant basis in order to enhance their knowledge as well as skills in quicker manner. This training will directly help employees in making use of digital media in effective form which will improve sales performance of the company in best form.
- Technological Advancement: Technology is determined as the important factor which helps company in simplifying their business processes in rightful manner. With reference to Waitrose, it has been analysed that respective manner of the believes in making use of digital media for enhancing their interaction with the customers (Lloyd, 2017). This interaction directly leads to increase in sales performance of the company which maximises their profitability in the quicker manner. Along with this, usage of digital media helps company in gaining competitive edge.
Identify key value adding activities with justification
Value chain is determined as the effective framework that helps company in taking good decisions for the growth of the company. This is so because, it provides framework to internal as well as external factors that contribute in making good decisions. The respective framework emphasises on making use of available resources in lucrative form that helps in attaining organisational goals in quicker manner. In context of Waitrose, it has been determined that its manager is focusing making use of effective supply chain system for the motive serving products to its customers in quicker manner. Along with this, later on it has been seen that company prefers in offering its products with effective packaging as well designing in order to influence interest towards them in rightful manner (Julita and Arianty, 2017). By doing so, the respective company is able to gain competitive edge as they have more number of loyal customers. Here, it has also been determined that the company offers higher quality of products to its customers at reasonable prices. For serving customers in more better manner the respective company has focused on using latest technology in the form digital media. Want to get Assignment help? Talk Our Expert Now!
Summarise and reflect on how the business could deploy information technology (IT) and use innovative ideas to improve its business processes and to enhance its competitive positioning.
Information technology is determined as the effective way by which company can easily improves their business performance as technology helps company in smoothing their current functioning. Incorporation of latest technology not only helps company in improvising their business functioning but at the same time it helps firm in serving their customers in more adequate manner. This ultimately influences interest of customers towards the firm which enhances their purchasing habits from the company. With references to Waitrose, it has been analysed that the respective company is facing competition from its rivalry like TESCO, ASDA, ALDI and others. In order to deal with this, the company is planning to incorporate latest informative technology within their business performances so that they can easily attain competitive edge in rightful manner (Jäckering, Fischer and Kehlenbeck, 2019). Also, respective manager of the company has also realised that they are not using digital media in lucrative manner which simply states that they are not making use of available technology in best form that waste their huge proportion of time within the company. Here, it has been analysed that for incorporating this in effective form its manager of Waitrose has started engaging more number of well trained staff in this department so that they can improvise their performance and serve its customers in more adequate manner with the usage of digital media (Falkheimer and Heide, 2018). In addition to this, it can be further said that manager of Waitrose also makes use of digital media in the form of E- commerce platform, in sales as well as marketing activities and others. Engagement at through this media will help company in enhancing their interaction with the customers which results in development of strong relationship with them.
Apart from this, the respective company can also incorporate another latest technology like automation production processes within the company. The main benefit that would be attained by Waitrose with the introduction of automation was that it will reduce chances of defects at workplace as no manpower is involved in the functioning (Barca, 2017). This will also improvise quality of production and contributes in the attainment of all organisational targets in rapid manner. From this, it can be said that incorporation of latest technology helps supermarkets like Waitrose in attaining their organisational aim and objectives in quicker manner. Furthermore, technology helps company in performing their work in systematic manner as it simplifies the overall functioning of work and supports business operators in completing work within the provided time frame. Innovation associated with the technology supports Waitrose in attracting more number of customers towards them as they are getting advanced services which from supermarket. Also, customers are saving their time as they can easily order products online without even visiting the stores (Baller, Dutta and Lanvin, 2016). These customers also feels connected with the supermarket as well as its services because they are offering their hi tech services to customers which enhances their experience and improves their satisfaction level. This in return results in growth of the company.
On the basis of overall information discussed in the above section, it is comprehended that businesses are required to acquire latest technology with the passing time so that they can easily attain success in quicker manner. For incorporating any kind of change effectively within the company, it is essential for business managers to deeply analyse their industry by making use of Porter's five force analysis so that they can explore the overall sector and attain competitive edge in quicker manner. Also, usage of value chain analysis helps company in enhancing their value effectively within the industry. In addition to this, it can be further said that by developing knowledge on both the internal as well as external factors company can easily determine major issues which are developing the industry. This helps them in finding out proposed solution for the same. As a result, it contributes in attaining goals of firm in rapid manner.