Strategic Management of ABC Supermarkets-Free-Samples for Students

Question: Create a hypothetical organization offering product /service of your choice. Identify a real potential competitor in the market. Answer: Name of the organization and the services it offers The name of the organization is Abc supermarkets. The company is engaged in supermarket business. It has various supermarkets in various cities of Saudi Arabia. It sells various products like fresh vegetables, frozen foods, spices, wheat, rice, processed foods and other food items. The company was established in 2012 and has expanded to 4-5 cities in the country. The competitors of Abc company in Saudi Arabia are Hyper Panda and Savola group. The mission The mission of Abc supermarkets is to bring in the best food items to people, which are healthy and safe. The vision To provide customer satisfaction and become the best supermarket company in Saudi Arabia. Evaluation of the business environment Evaluation of the business environment in the country in which the business operates in is extremely important. The business environment consists of various factors that influence the business. These factors may influence the business in a positive or in a negative manner. The business environment may be analyzed (Hitt, Ireland and Hoskisson 2012) in various methods. One of the most popular methods of evaluating the business environment is SWOT Analysis. SWOT analysis can be described as a method in which the external business environment as well as the internal business environment is analysed. SWOT stands for strengths, weakness, opportunity and threats. The Strengths and the weakness cater to the internal environment analysis whereas the Opportunity and threats cater to the external environment factors. The strengths and weakness are in the hands of the company whereas the opportunity and threats are not within the domain of the company and therefore the company must prepare before hand to face these problems (Hill, Jones and Schilling 2014). The SWOT Analysis of Abc Company has been given below: Strengths: Strength can be defined as the capability of the business that helps it in gaining a competitive advantage in a business environment. The strength of Abc company is given as below: Providing high quality product It engages in high quality maintenance In a short span of time it has made its market presence in 5 -6 cities Availability of capital Weakness The market does not provide any products from South Asian brands, which are extremely famous among the people in Saudi Arabia (Barney 2014). Its brand name is not as strong as compared to its competitors Hyper Panda and Savola group Relatively new in the market Opportunities There exists a large untapped market in the United Arab Emirates where the company can expand. It can take advantage of the south east Asian markets like India and import products from there This will help in increasing the popularity as well as sales. Threats The competitors like Hyper Panda and Savola groups are big threats to the company. As stores that are more competitive are opening up o the market, the market share of the existing stores is decreasing. Analysis of the SWOT From the SWOT analysis, it could be observed that the company is a relatively new company. The main problem areas lie in the fact that there are more markets with a business model similar to this one The company can change its mission and state that it wants to provide safe and quality products to the consumers, which are of their choice (Ball et al. 2012). Strategy Therefore, the best strategy for Abc supermarkets will be to engage in promotional activities that will help in increasing the market base for the consumers (Wheelen and Hunger 2017). Another step would be to import goods from South Asia. No other super market present in Saudi Arabia has been able to import the products and therefore if Abc company will be able to do so it can gain more from the sales and become a leader faster than its competitors become. This strategy can be achieved by Conducting a promotional program, which will help to create more awareness about the supermarket? The company has to integrate its promotional activities with the organizational goals and objectives and develop a promotional program that can take place in various parts of the country (Eden and Ackermann 2013). This promotional program can offer free coupons to people, which may be discount coupons or gift coupons. This will help the company to attract more customers who will be induced to visit the stores. Feedback system The footfall before the distribution and the footfall after the distributing system need to be measured. If the footfall ahs increased, it means that the company has been successful in its promotional activities. If the footfall has not increased then that means that they need to try some other measures of promotion. While distributing coupons, the Abc executives can ask the company regarding their views of the supermarket and how often have they visited it. This shall provide them with a fair idea about the popularity of the company. References Ball, D., Geringer, M., Minor, M. and McNett, J., 2012.International business. McGraw-Hill Higher Education. Barney, J.B., 2014.Gaining and sustaining competitive advantage. Pearson Higher Ed. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012.Strategic management cases: competitiveness and globalization. Cengage Learning. Wheelen, T.L. and Hunger, J.D., 2017.Strategic management and business policy. pearson.