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How Waitrose makes Strategic Dicision for Growth | Case Study

8721Downloads1 I Published: 19 Jun ,2019

Introduction to the organization

Strategic decision-making is a constant process, which incorporates the various strategies and policies in the organisations so that the targets of the organisation are fulfilled. The strategic planning for growth is required in the organisations because it helps the organisations to set the objectives that would be helpful for gaining profit for the organisations. The strategic planning of Waitrose, a large succession of British supermarket in the food retail sector, is discussed for the better understanding of its importance in the business. The organisation, Waitrose, is considered as the constant rising retail store in the British supermarket and has the largest number of employees working under Waitrose.

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Summarising the internal and external factors

Pestle Analysis

Political Factors: Waitrose increases employment in the country so that it gains popularity among people and it would help to increase the Waitrose product’s demand.

Environmental Factors: Waitrose has developed the policy of internationalization of their products so that the organization can deal with the economic factors like product’s cost, demand and the profits that occur within the organization.

Social Factors: Waitrose has started providing sale in various food items and this would attract more people towards Waitrose.

Technological Factors: Waitrose has increased the technological development in the area of online shopping for the customers, which led the organisation to involve more number of customers in purchasing their products.

Legislative Factors: The decrement in the products of Waitrose has is decided by Waitrose so that Code of Practice is maintained within the organisation.

Environmental Factors: Waitrose has started the mission of reducing the waste production from their stores and also recycles the waste so that the environment can be protected.

Porter’s Five Forces

New beginner’s threat: Waitrose has ruled the competition in food retail of UK by its efficiency in operation and there is a big threat for the beginner’s in the grocery chain.

Negotiating power of victualler: The product supplier of UK supplies the products at a cheap rate to Waitrose but the threat of buying products from abroad is a major concern for the supplier nowadays.

Customer’s bargain: Waitrose has adopted a great strategy of retaining the customers by providing sale to them so that they do not switch to other brands.

Replacement threat: Substitution of a particular product by another is a major threat in the food retail market and Waitrose should have to take this matter into their concern.

Bargain of the peers: Waitrose always has to understand the bargaining policy of the peers so that they can be able to develop the best strategy for increasing their business profit.

Threshold and distinctive resource or capabilities

Resources of the organisation are the valuable properties of the organisations that help in meeting the demands of customers from the organisations (Wollmann and Steiner, 2017, p.125). Resources can be formed internally or externally from the suppliers of products of the organisation. Waitrose resources are taken from the various suppliers and also the organisation uses an intellectual resource in the form of copyright for their products (Limited, W, 2017).

Distinctive capabilities

Waitrose has sustainable products in the grocery items that are not present in the other competitors’ products. This makes the organisation different in capabilities from other organisations.

SWOT Analysis

Strength: Waitrose products are popular among people because of the discounts provided by the organisation. The organisation has high-quality products from the local source that helps in increasing the efficiency of Waitrose.

Weaknesses: Waitrose has less number of stores in other countries that can affect the profit margin in the business.

Opportunities: Waitrose can enter the markets of other areas with the help of joint ventures with the existing business. The organisation can increase their selling of the non-food product in order increase the profit.

Threats: There is the increase in the cost of raw materials every time, which is a big threat for Waitrose. A huge number of peers in the supermarket and that is why; economic decisions should have to be taken in order to increase profit.

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Developing the strategic choices for the organisation

Strategy planning is much required in any business especially in the food retail sector because there are various competitors in the market, who are delivering the similar products in the market. According to German et al. (2017, p.645), the retail strategy has to be made in such a way so that there remain sustainable products in the market and the customers need not have to use same products every time. Waitrose delivers products in the market but the organisation has no accurate strategy that can help Waitrose to increase their profit margin. Waitrose can develop the strategy of producing sustainable products so that the organisation can become one of the most recognised food retail units of UK.

The competition in the supermarket is huge and in order to survive in such market, constant innovation should have to be done by the organisations so that they can deliver quality products every time (Lee and Tongarlak, 2017, p.950). Initially, Waitrose needs to set the target of achieving the goal of the organisation and then prepare a plan in what way the products can be made sustainable for their organisation. Waitrose has to understand the market risks before implementing this strategy in their organisation. There are large numbers of competitions in the market and the organisations try to develop plans that would be suitable for the customers (Strotmann et al. 2017, p.70). The strategy of sustainable products is a great concept and Waitrose can be a gainer in the supermarket if the organisation incorporates it within their system.

The main mission statement of this strategy is the long-term use of products of the organisation and thus, the organisation can accomplish the desire of ruling the minds of the customers. Nakandala et al. (2017, p.111) commented that it is essential for every organisation to work harder in order to gain by the strategic policy that is taken by the organisation. Waitrose follows this statement and works harder so that the organisation can deliver the best quality products to the customers. The organisation has the task of understanding the numerous threats of the market and then analyse the efficiencies that are present in the organisation, which help them to provide the best service. Waitrose should have to anticipate about the profits and loss that can come after the incorporation of the plan of sustainable products.

Porter’s generic strategies help in achieving the targets of the organisation and provide large competition to the peers in the market (Demirgunes and Ozsacmaci, 2017, p.56). Waitrose should have to set the profit level in such a way that the pricing of the various products remains less. The organisation needs to function efficiently so that the customer can avail products from Waitrose due to their less cost. The differentiation of the products should have to be present in the products of the organisation because it helps in adding various new features to the product that is not provided by other peers. Coteur et al. (2016, p.20) mentioned that organisations have to focus on the strategic plan that is taken so that they can be able to create brand awareness among people. Waitrose does the same and focuses on the strategy so that their products can serve larger customers.

Evaluating the strategic choices of the organisation

SAFe analysis is required to be done in order to evaluate a particular strategy that is implemented within the organisation (Kirchoff et al. 2016, p.50). Waitrose has taken the strategy of producing sustainable products for the customers and this strategy needs to be evaluated so that the effectiveness of the strategy can be understood. In the SAFe analysis, Suitability of the plan, Acceptability of the new strategy and Feasibility of the plan are mentioned in abbreviated form. Sustainability helps in understanding about the opportunities and the various limitations of the strategic plan that is incorporated within the organisations (Watson et al. 2015, p.1058). Waitrose has analysed about the opportunities that the organisation has and also has undergone the limitations that the organisation have to face in the execution of the strategy.

Acceptability is another major evaluation because it helps the organisation to understand whether the organisation is meeting the expectations of stakeholders or not. Wood and McCarthy (2014, p.130) stated that the organisations can understand the numerous market risks and the return that would come from the market after implementation of the strategic plan. Waitrose has made the analysis of the market risks and the competitor's risk but needs to analyse about the return whether it would be profitable for the organisation or not. When the strategic plan is taken by the organisation for the products that would be delivered in the supermarket, then there is the huge risk and Waitrose should have to be prepared for that task.

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Igoulalene et al. (2015, p.3345) opined that Feasibility is another essential part that cannot be overlooked by the organisation while implementing strategic resource management for the organisation. Waitrose should have to understand properly whether the sustainability plan would work for the organisation or not. Waitrose workers are not so much skilled as required for this task to do. That is why; the organisation has thought of providing training to the workers so that they can deliver their best performance in such a huge strategic plan. The resources of the organisations should have to be obtained easily and the integration of those resources needs to be done properly (Sadler, 2016, p.20). Waitrose can get the products from the abroad market and then those can be easily integrated into the sustainable strategy plan.

Waitrose has to evaluate what could be the reactions of the customers when they get in touch with the products of the organisation. The organisation has to understand whether the creditors of the organisation can get back the investments that are done by them because it is essential for the further run of the business. Waitrose products need separate resources when are made sustainable for the customers and the organisation should have to understand how can the arrangement of the resources can be done. Waitrose has to develop the financial strategy so that the organisation does not have to face any issue while producing the sustainable products. The technology of Waitrose needs to be developed before implementing this strategy because technology is greatly required for the successful completion of this task.

Recommendation regarding the preferred strategic choice

When the organisations develop some strategic decisions, it is essential for them to understand the prevailing market conditions. Waitrose has the motive of achieving a lot and fulfilling the demands of the targeted customers but the organisations lag behind in technology and proper-trained workers. The organisation can start some training sessions for their workers so that they get skilled and develop a target within themselves. Sustainable products are essential because the technology of the world is increasing day by day and it is required that people start the use of sustainable products so that the world may not be depleted more. Waitrose strategic plan is quite acceptable but the execution of the plan is not at all an easy task to do. The organisational resources should have to be properly supplied so that the organisation does not face difficulty in arranging the products for the customers.

Waitrose is a big organisation of UK but no retail stores of Waitrose are supplied equally. As a result, the customers do not get satisfaction after buying products from Waitrose. The organisation needs to be efficient in the delivery of their products so that the organisation does not face any issue after incorporation of the plan. The employees of the organisation have to be very efficient while dealing with the customers and the employees need to make people understand about their plan so that the organisation can sustain their profit. The aim of the strategic plan of Waitrose is to gain long-term profits for the organisation. If the resources are not properly arranged, then the aim of the plan cannot be achieved by the organisation.

Waitrose has to be very efficient in the case of arranging of the resources for the products. The resources need to be arranged from abroad markets so that there remains less risk of the organisation suffering from loss. There should be the proper leadership of the leaders of the organisation so that they can motivate the employees to work properly in the given task. Waitrose has the largest workers working in the stores and that is why; the organisation has to train a huge number of employers, which is costly. Thus, the plan needs to be such that the organisation has to spend less and gain more from the market. It is highly recommended to Waitrose that they align their business service in such a way so that the gain margin is increased at a rapid rate after the delivery of sustainable products to the customers.


The above study of strategic management helped to understand the processes of development strategic plan and in what way it brings profit for the organisation. The organisation, Waitrose, has taken a great step towards bringing sustainable products to the market and employees of the organisation have to be very efficient in performing the task for the organisation. Every employee has to work collectively so that the Organisational goals can be achieved. Moreover, the recommendations provided need to be focused on in order to face no problem in the execution of the plan.

Reference List

  • Coteur, I., Marchand, F., Debruyne, L., Dalemans, F. and Lauwers, L., (2016). A framework for guiding sustainability assessment and on-farm strategic decision making.Environmental Impact Assessment Review,60(8), pp.16-23.
  • Demirgunes, B.K. and Ozsacmaci, B., (2017). Exploring the Effect of Consumers’ Food-Related Decision Making Styles on National Brand vs. Store Brand Choice.International Journal of Marketing Studies,9(1), pp.46-80.
  • German, A.M., Sârbu, F.A. and Boşcoianu, M., (2017). A real options and joint ventures perspective for strategic decision-making process in the case of dynamic industrial environments. InMATEC Web of Conferences, 94(2), pp. 601-650.
  • Igoulalene, I., Benyoucef, L. and Tiwari, M.K., (2015). Novel fuzzy hybrid multi-criteria group decision making approaches for the strategic supplier selection problem.Expert Systems with Applications,42(7), pp.3342-3356.
  • Kirchoff, J.F., Omar, A. and Fugate, B.S., (2016). A Behavioral Theory of Sustainable Supply Chain Management Decision Making in Non‐exemplar Firms.Journal of supply chain management,52(1), pp.41-65.
  • Lee, D. and Tongarlak, M.H., (2017). Converting retail food waste into by-product.European Journal of Operational Research,257(3), pp.944-956.
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