Unit 32 Business Strategy Assignment Sample

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Unit 32: Business Strategy Assignment

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In attempt to comprehend management solutions, foresee trends, and guide the company’s performance inside the desired direction a decision-maker must understand the strategic management concepts. What actually matters is helping the company innovate and act swiftly so that operational risks may be minimized (Kurniawan and Yusuf, 2021). Strategic management has various subcomponents, including management, advertising, and finance. It is necessary to supervise them at all costs. Organizational goals may be achieved by a simple process of planning, evaluating, assessing, and implementing strategies. The ability to respond rapidly to the both internal and external events is critical for a corporation. It is possible to implement the aforementioned tactics, but only under certain circumstances.

Increasingly, businesses understand the value of strategic planning and the incorporation of strategy management into to the organization’s structure as a way to deal with unforeseen events both inside and beyond the company. Strategic management for Ocado includes “SWOT analysis,” “PESTLE analysis,” and “Porter’s five-force analysis” as part of a report outlining Ocado’s long-term business plan. Ideas and techniques for increasing the efficiency of corporate operations and operations also will be discussed. It is equally important to look at the company’s performance and principles while considering its long-term sustainability (Galletta, Mazzù, and Naciti, 2021). To ensure that all necessary strategic alignment is achieved, this issue will also be examined. This model’s success will also be monitored by looking at strategic objectives and concepts that have been put out.

Section 1: Macro Environmental Analysis

1.1 Assessment of the strategic position using mission statement and long-term goals

Background of the company: The Ocado Group is a company that sells grocery-related technologies under licence. One half of Ocado.com is controlled by UK retailer “Marks & Spencer” and its grocery fulfilment technology is licenced to international retailers including Kroger in the United States and Coles Group in Australia (Mason, 2019). As of the 21st of July, 2010, the firm was listed on the “London Stock Exchange” and is included in the FTSE 100 Index. “Jason Gissing, Jonathan Faiman, and Tim Steiner”, three senior Goldman Sachs merchant bankers, launched Ocado in April 2000. In January of 2000, the idea of Ocado was unveiled, and in January of 2002, the company began operations as a joint venture with Waitrose (Moss, 2021). Retailers and corporations in the UK and abroad may use the company’s online retail solutions, which also include online distribution, shop management, and online delivery apps. Through Morrisons and Ocado Retail in the UK, Ocado provides customer fulfilment centres, information technology (IT) and robotics corporate platforms, and logistics solutions.

Mission Statement: “Ocado’s mission is to change the way people shop for their groceries every week. Ocado has been created to try to make the customers’ lives easier. Ocado want customers to be able to get what they want, when they want it, with minimum fuss”.

Long-term Goals: Ocado intends to quit the instant sales business in the future. Ocado intends to remain a pure tech firm in the future, rather than a hybrid (Moss, 2021). Thus, Over the last two decades, Ocado has evolved from an online grocery shop to more of a technology firm than a retailer.

1.2 Analysing the macro-environment for the organisation Ocado

The macro-environment, as opposed to a single sector or area, refers to the overall state of an economy. The macro environment encompasses GDP growth, inflation, labour market

conditions, expenditure, and financial and fiscal policies. A PESTLE analysis is necessary to accurately define Ocado’s present macro environment (Mkansi and Nsakanda, 2021).

Political factors

Political concerns have a significant influence in defining the aspects that may impact Ocado Group Plc’s ability to realize its objectives in a given region or market. Ocado Group Plc conducts a retail operation in more than a dozen countries and is exposed to various political and system-related concerns. Creating such a unique retail firm in several nations intends to diversify the systemic risks linked with the political climate (Bergan, 2021).

Economic Factors

The general interest and investment in the economy are determined by macro- environmental factors such as inflation rates, savings rates, interest rates, unknown conversion rates, and economic cycles. Environmental elements that are less significant, such as competition standards, impact a company’s competitive edge. Ocado Group Plc can utilize national economic elements such as economic growth rates, inflation rates, and industry economic indicators such as retail growth rates and consumer spending to anticipate industry names and the direction of association growth (Emmanuelli, 2020).

Social Factors

The way things are done and the culture of a society impact the culture of associations in a specific context. For example, the population’s common values and attitudes significantly influence how Ocado Group Plcers analyses its consumers in a given country and creates marketing messages for retail customers. Likewise, demographics and skill levels are two social aspects that impact the growth of organisations (Tonelli and Cristoni, 2018).

Technological Factors

A corporation should examine the sector not only in terms of technology but also in terms of the rate at which technology is altering it. A moderate speed of technological development buys time, but a quick pace allows a corporation to adapt and reap the benefits in a short period.

As a result, Ocado should examine its competitors’ latest technical breakthroughs (Beckmann, 2021).

Environmental Factors

Environmental legislation and standards vary by market, which may impact the Company’s interests in those areas. Companies should carefully assess whether environmental standards should be implemented in new markets or new operations in current markets before entering new markets or initiating new activities in existing markets. Climate, environmental change, and environmental legislation are all aspects that businesses should think about ahead of time (Beckmann, 2021).

Legal Factors

Before entering such markets, the Company should carefully consider the situation, as this could lead to the loss of its secret formula and thus its global competitive advantage. The legal factors that Ocado Group Plc’s management must consider when entering a new market are copyrights, protected innovation rights and patents. In addition, discrimination and data protection laws must also be considered (Ahmad, 2019).

Section 2: Capability

2.1 Assessing the internal environment using McKinsey’s 7 S framework

The assessment of an association’s internal capability reviews the organisation’s cost position, capacity and competitiveness. Internal assessments often use indicators that provide important information about the organisation’s strengths, weaknesses, opportunities and threats. Therefore, the McKinsey 7S model is extremely useful for assessing Ocado’s management performance. Using the McKinsey 7S model, managers and corporations may evaluate their performance. Using the approach, organizations may better manage change and enhance execution by focusing on and adapting to seven important components (Dawes, 2018).

Hard Elements- “Strategy, structure, and systems” are the hard parts of McKinsey’s 7-part model. The model’s hard aspects are simpler to spot, have a more defined character, and are within the direct control and influence of the organisation’s leadership and management. Structure, systems, and strategy are examples of hard components (Yin, 2016).

Strategy- There are well defined Ocado strategic lines and Ocado’s overall company strategy for all workers and stakeholders. This allowed the organization to manage execution, oversee operations, and create a variety of approaches to its business plan in a more efficient and effective manner. Furthermore, Ocado’s operations are much more transparent and aligned with the Company’s roles and activities by adopting and updating the corporate strategy (Mason, 2019).

Structure- Ocado has a complementary hierarchical structure backed up by a growing and learning organisation. Employees feel safer and have greater access to data when there are fewer levels of administration at the centre of the organisation and more communication with managers and leaders. Furthermore, the progressive compensation structure enables Ocado to make faster choices and delegate greater authority to its employees (Frei et al., 2020).

Systems- Ocado has high-quality, well-segregated processes to ensure that company activities are run efficiently and without conflict. Ocado’s systems are mostly departmental and cover human resources and marketing. Ocado’s distinct and varied systems contain tools and controls intended to measure performance and meet goals. These tools and controls were created expressly for the various departments based on their roles and responsibilities (Pantano et al., 2018).

Soft Elements- Shared values, styles, talents, and people are among the soft factors of the McKinsey 7 model. These components are less explicit and are more dependent on the organisation’s culture. As a result, they are not directly influenced or controlled by management. Shared values, style, people, and talents are non-technical aspects (Bergan, 2021).

Shared values- The basic principles of Ocado are developed and conveyed in order to build a creative and supportive organisational structure that allows workers to perform at their best while also increasing their motivation and loyalty to the Company. Creativity, honesty, and openness are three of Ocado’s basic principles. In addition, Ocado embraces diversity and promotes an inclusive atmosphere. The corporation has a global presence and manufacturing sites in several nations (Frei et al., 2020). As a result, Ocado makes sure that its corporate culture encourages diversity and has internal rules to combat prejudice.

Style-Ocado’s management style is participatory. Ocado can use a participatory management style to include staff in decision-making and management choices. It also allows management to regularly communicate with employees and various groups of managers to identify possible disputes and gain input on tactical and strategic activities. By implementing participatory leadership, Ocado can boost employee enthusiasm, dedication to the organisation, and ownership by workers and other stakeholders (Tonelli and Cristoni, 2018).

Staff- Ocado has enough people working for it all across the world. Depending on the urgency and abilities necessary, employees for various jobs and responsibilities are recruited internally and externally. This guarantees that Ocado’s workers’ qualifications are in line with the demands of their jobs. In addition, internal training is provided to all workers to familiarise them with the organisation and its ideals. To develop abilities, both external and internal training is employed (Dawes, 2018).

Skills- Ocado focuses a strong emphasis on developing its workers’ skills and abilities. Accordingly, Ocado regularly conducts internal and external training and seminars to help staff grow and enhance their abilities. Ocado is likewise concerned about its workers’ personal and professional growth and works with them accordingly (Bergan, 2021).

2.2 Evaluating the strategic capabilities using TOWS matrix

Resources and talents are the means through which a corporation competes. As a consequence, they may serve as a reflection of a company’s strengths and weaknesses and a competitive advantage or deficit over its competitors (Bergan, 2021). Ocado’s strategic capabilities are thus analysed and determined in the next section utilising TOWS analysis.


Strengths (S)

Weaknesses (W)

Opportunities (O)

The company hopes to increase demand for US theme parks by entering the US entertainment industry (Tsatsoula, 2018). A digital interactive platform for selling the company’s products and services may also be developed to reach a wider audience in Mexico, given the country’s high rate of internet use.

Due to a lack of financial and human resources, the company was unable to develop its operations on a national and international scale (Sukma, Lubis and Utami, 2019). A further factor in Ocado Case’s financial woes was the ongoing depreciation of the Mexican peso (Visser, Sikkenga and Berry, 2019). Because the Company lacks engagement and knowledge of the industry’s style and entertainment fundamentals, it is limited in its potential to develop in the hard and rewarding arena of event parties.

Threats (T)

Ocado is up against a plethora of local and international competitors, as well as the constantly evolving practises and tastes of the entertainment sector (Mkansi and Nsakanda, 2021). If this happens, the company’s reputation as a recognisable brand and key player may be tarnished. Because of this, the company’s products are more easily copied by the competition. A major part of the company’s success may be attributed to its commercial design. When the Mexican peso devalues against the US dollar, the company’s financial stability may be threatened.

The company has a large customer base, a well-known brand, and a global presence. Maintaining a strong market position and increasing customer happiness are important goals for the company, thus it prioritises continual project development (Mkansi and Nsakanda, 2021). Known for its collaborative approach with educational institutions, marketing firms, and instructors, the company has a proven track record of successfully offering answers to children’s educational and family needs (Sukma, Lubis and Utami, 2019).

Section 3: Competitive Analysis

3.1 Application of Porter’s five to evaluate the competitive positioning

Competition in the industry-New retail sector rivals have brought advancements in better methods of getting the job done and are putting pressure on Ocado Group Plc by lowering estimation procedures, reducing costs, and informing customers of new advantages. Ocado must deal with this variety of actions and draw corporate boundaries to protect its strategic advantages. Ocado can counter this by developing new items and administration services from the dangers of its rivals (Rubio Villaseñor, and Yagüe, 2017). Similarly, it can reduce unit costs by creating economies of scale and setting limits on money for innovative work.

Power of suppliers- All retail organisations buy their natural products from different suppliers. A dominant supplier can limit the advantages Ocado Group Plc can obtain. Powerful consumer service providers use their organisational skills to suppress the more exorbitant expenses of retail organisations. The overall effect of greater supplier commercial power leads to greater overall retail productivity. For example, Ocado Group Plc can counteract the bargaining power of suppliers by building a network of specialist shops with many suppliers and by exploring different routes to plans for items using different materials so that the cost of one unrefined substance increases, the organisation can switch to another (Henry, 2021).

Power of customers-Buyers are often a demanding element in the equation. They need to buy the best contribution obtained by meeting the expected underlying costs. This puts pressure on the long- term interests of Ocado Group Plc. The smaller and more impressive Ocado Group Plc’s customer base, the greater its bargaining power and ability to demand limits and extended offers. Ocado Group Plc can therefore counter the bargaining power of buyers by building up a large customer base. This is useful in two ways. First, it will reduce the buyers’ bargaining power and open the door for a smooth transaction and formation process (Beckmann, 2021).

The threat of substitute products- Productivity in the industry drops when another project or agency handles the demands of a similar client differently. Dropbox and Google Drive, for example, are advantages of distributed storage that can be used instead of hard drives. However, assuming that an alternative project or administration includes incentives that are not quite similar to those currently available, this represents a major risk. Ocado Group Plc can therefore combat the dangers of alternatives by focusing on management rather than projects and focusing on customers’ essential needs rather than what they buy (Dawes, 2018).

Potential of new entrants into the industry- If current players compete fiercely, expenses will fall, and overall company efficiency will suffer. Ocado Group Plc works in an extremely competitive retail environment. This competitiveness comes at a cost to the association’s long-term production. By physically separating and growing up to compete more effectively, Ocado Group Plc might solve the tremendous competitiveness amongst rivals in the retail market (Galletta, Mazzù, and Naciti, 2021).

3.2 Analysing the current and potential strategic positioning for Ocado by using Ansoff’s matrix

The Ansoff framework is a useful tool for businesses to make strategic choices about their growth. As seen in the accompanying grid, the Ansoff framework offers organisations with four critical choices to make.

Market Penetration- Market penetration is a strategy employed by companies wanting to expand into current projects where their brand is already well-established and doing well. Ocado would be able to attract more clients in the same market if its creation limits were expanded (Nguyen, 2021). In addition to increasing productivity and sustainability, widening the creative limits will also help keep growing prices under control.

Market Development- A market development strategy to Ocado’s company expansion may be achieved by expanding current initiatives into new markets. It is possible for Ocado to do this in a number of ways. First and foremost, Ocado must commit resources to innovation activities in order to distinguish between potential new business sectors and the segment of customers for its product (Klever, Visser and Engelfriet, 2021). First and foremost, R&D activities should concentrate on differentiating and comprehending diverse market cultures, purchasing habits and practises - and how they conflict with the conventions of consumer behaviour in current company sectors.

Product Development-“Product development” is the term used when a company tries to enter a previously untapped market with the aid of a new initiative. Ocado employs a variety of approaches to improving projects (Sukma, Lubis and Utami, 2019). Ocado has the ability to offer adjustments and updates to current projects in order to give customers with new and improved information. As a result, the number of transactions and applications for the project will rise.

Diversification- When a company expands into new markets, it is said to be expanding in terms of both business development and advancement. Organizations such as Ocado are able to maintain their status as competent, entrepreneurial, and reputable because of their ability to expand (Klever, Visser and Engelfriet, 2021). A partnership with another firm may also help Ocado stand out from the crowd. In the event of Ocado’s acquisition by another firm, Ocado would be forced to look for new ways to stimulate or secure the engines of growth and success.

Section 4: Strategic Plan

4.1 Producing a Strategic Management Plan

This is followed by five-year strategic goals, objectives, and activities for the organisation, which summarise the fundamental management plan. Organizations need to constantly improve their OSP offerings to better serve consumers, increase operational capacity to cut costs and promote the function further. Innovation pioneer Ocado must leverage its unique knowledge to remain on top of the curve and encourage more openness to value creation inside and beyond the core programme (Dawes, 2018). OSP must be used to promote a fast-expanding consumer base. A similar improvement is needed for these partners’ operational capabilities, which must be made throughout the whole deployment and maintenance process by its Ocado Solutions, Ocado Technology, Platform Implementation and Customer Service teams (Mkansi and Nsakanda, 2021). It must also be compatible with our UK partners’ functional implementations. These operational competencies must be supported by the organization’s focus group activities.

Employees that serve Ocado in a variety of ways should be respected by the company’s management. Previous studies have shown that in the present circumstances, management can give the most beneficial manner for consumers to get the things they desire from the online store without inquiry and with few or no criteria (Klever, Visser and Engelfriet, 2021). It is not only their consumers that represent them, but so do their staff, who are seen as competent persons. There should be no doubt that the representatives are the most essential members of this organisation, and that they give a wide range of assistance to members (Tonelli and Cristoni, 2018). As a result, Ocado needs to employ additional individuals in several departments, including design, customer administration, and task force, to help the organisation grow over the fiscal year. In the next 10 years, they have the option of hiring more employees and opening additional locations under more favourable circumstances. Every member of the organisation should be given the equal chance to voice their concerns to the organization’s leadership (Henry, 2021).


In conclusion it can be inferred that considering the business situation of Ocado, it is imperative that the staffs of the company must be treated and trained correctly regardless of their colour, age, ethnicity, or occupation. All associations benefit greatly from representatives who are more equipped and better equipped to serve customers. In Ocado’s background check, it is evident that the organisation should attempt various actions to make its representatives more desirable for different activities and more astonishing to consumers in terms of giving different forms of assistance. Preparation for work and personal qualities are two areas in which Ocado might improve its workforce. As a result, given the current climate, management should provide a variety of opportunities for workers, such as performance evaluations and 360-degree reviews.


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