Strategic Plan Assignment Sample

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1. Introduction - Strategic Plan

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SME’s helps in the innovation development and entrepreneur skills in the individuals. They help in increasing the GDP of the country by creating the scope for employment. Northern Independent Supermarkets Association (Nisa) retail store has been selected for the current report. It was founded 46 years ago, headquartered in North Lincolnshire, which provides services in UK. Company is providing their services to over 4000 stores in the UK and the net worth of the company is 30.77 pound sterling (Net worth of Nisa Today, 2023). Nisa mission is to become first choice of all the retailers and costumer over upcoming years. There vision statement is to make a difference locally that is the charity which is formed to provide support the local communities. For the company to be considered small - medium size enterprise their net worth should be below 50 million pound. Nisa store has fulfilled these criteria which make it to be part of SMEs. This report will also describe the external factors which are impacting the growth of the stores and the organization strategy which has been employed by the company. It will also included the analysis of the stakeholders and there expectation from the company operations. This report will also define the strategy which company can used for used for its development and attaining the long term goals of the organization in more efficient and effective manner.

2. Current strategies used by the Nisa Todays

The company’s aim is to grow their business as independent retailers in the most competitive market. Company is using Red ocean strategy which aims at staying the same market and focus on identify various sources through which competitive edge could be creates (Malesios, et. al, 2021). The company has adopted various measures for protecting the environment and improving the quality of the product. These measures help Nisa store in gaining competitive edge in the market and creating an opportunity for sustainable growth. In October 2005 the company has launched the environmental friendly warehouse which was the first company in the industry. The entity has also launched Waste packaging scheme in 2010 which aim at recycling of all the cardboards and plastics and help in reducing the annual waste charges (Le, et. al, 2021). The company has also been certified from the Organic Food federation and Food Standard Agency which provide assurance to the costumer regarding the quality. By adopting these measures Nisa was able to stay in the market for the longer period of time and have a completive edge over others.

3. Environmental scanning of Nisa

PESTLE analysis

Political factors:

Political instability and changes in the government policies will negatively impacted the growth of the enterprise. Trade tariffs and fiscal policy impact the company on larger scale (PESTLE analysis of Nisa Today, 2019). The Nisa store provides its financial support to the government as reduction in tax rate and expansion of the permission are the positive factors in the working of the company.

Economic factors:

One the most important factor which is affecting the Nisa is the changes in the cost of the labor in UK. As the stores are operating in more than one country they need to regular conversion of the money, any changes in the foreign exchange impact the company (Nandonde, 2019). Changes in interest rate, increase in the inflation and the growth rate are the factors which are hampering the growth prospect of the company.

Social factors:

Each country is differentiated on the basis of their cultural and lifestyle of the people. Nisa is providing these services in various countries also changes in the income pattern; lifestyle and the trends are affecting the success of Nisa. For reducing the impact Nisa has entered into new product lines and focus towards expansion of the business so that company could keep pace with the changing environment.

Technological factors:

Up-gradation in the technology and new invention is creating force on the Nisa to change its technology aspects. Company has paid focus toward launching a site through which goods could be sold through online mode (Blut, et. al, 2021). To overcome the issue of technological aspects company had taken initiative to improve the communication and infrastructure systems.

Legal factor:

Company needs to follow all the rules and regulation that are affecting the success of the enterprise. There are legislation regarding the health and safety of the employees which if ignored can impact the organization. Changes in the tax policies, competition regulations and the employment laws are affecting the working of the company.

Environmental factors:

Consumer spending pattern have been changes in the UK because of the economic disruption caused due to the extreme changes in the climate. This extreme weathers event has increase the cost of insurance of the company leads to making the product more expensive. Company is targeted at the sustainable development by advising employees to work according to the global action plans. In 2010 company has introduce a waste Packaging Scheme which aim at collecting all the plastics and cardboards from the partner and recycle it. 

SWOT analysis

Strengths: Nisa is able to attain economies of scale which help in reducing the cost for the product and increasing the profit margin. The company is efficiently carrying out its core functions as inventory management and logistics work have been outsources which provide time to focus on the crucial activities (Pangriya, 2023). They are to retain there costumer as they are providing loyalty cards on each purchases and reward there on.

Weaknesses: Firm has not been able to create an online presence in the market which is reducing the sales of the company It has not been able to update to the latest technology and involves the tools which could streamline process and increasing the efficiency (SWOT analysis of Nisa Today, 2023). Company has not been able to retention their employees for the longer period of the time which is increasing the cost. Company has limited market share which do not provide scope for operate on higher scale.

Opportunities: The Company could focus on expansion on the online platforms as this could increase the sales and create awareness regarding the firm. They could focus on employing RFID technology which helps in decrease the chances of theft and efficient management of supply chain. There is opportunity for company to grow as green retailer which will help in protecting the environment and improving the image of the company in front of consumers.

Threats: Companies in retail industry cannot increase the profit margin as there are various competitors in the same filed. Company cannot easily move toward international expansion due to difference in the cultural and lifestyle of the different countries. Changes in the labor regulations, restriction of the location are the regulatory environment which will affect the growth prospect of the company.

4. Stakeholder analysis of the Nisa Today

This matrix describes various individuals and organization that are interest in knowing the position of the company. It also describe the power that each on the on the working of the organization (Obeng, 2019). This matrix has been divided into 4 parts in which all the stakeholders are differentiate on particular criteria.

Keep satisfied: Government, trade union and regulatory bodies are the entity which has high power over the organization. They are not interested in the regular working of the organization and indentify their working process. Company should focus on working according to their rules and regulation and try on keep them satisfied as they have greater influence on the Nisa.

Expectations

Government are expecting from the company to pay regular tax without default and focus on avoiding the situation of concentration of economic power and monopoly (Rze?ny-Ciepli?ska and Szmelter-Jarosz, 2019). Regulatory bodies are interested in knowing that the company is following all the environmental legislation related to the industry. Trade union are interested in identify whether the organization is following all the rules regarding the employment laws of maintaining the safety and health and determine the working condition in the organization.

Manage closely: This is the most crucial and important individual and organizations which are having high power and interest in the company. They are one who manage the organizational work and help in achieving the goals. They include person who are providing all the monetary and operational sources to the company.

Expectations

Project managers: they are interested in knowing the profitability and liquidity position of the company. They are having power related to the planning and budgeting of the project, which is the core factor affect the success of the project. Investors and sponsors are the one who are interested in knowing the long term growth potential of the organization. They are one who provide the fund and has the power to stop funding which can impact the working of the company.

Monitors: They are the stakeholders which do not have much interest and power in the organization. Company should inform them on the periodic basis regarding the companies working and goals.

Expectation:

NGOs and community group are interested in knowing whether the company is following all the norms which are beneficial for the development of the country. Local resident are interested in knowing all the new product and services which the company is planning to offer to the society, negative review from them will affect the goodwill and reputation of the company.

4. Keep informed: Companies need to regularly take feedback from them as to identify any difficulties they are facing in accomplish their tasks (Ashaye and Irani, 2019). They need to be keeping informed regarding the company’s goals and objectives and the changes which are planning to do in the policies. They do not have power to change the decision of the owners.

Expectations

They are interested in knowing the profitability and stability of the company in the long term so that they can identify their financial security. They are well aware of the all the goal, objective and the policies of the company so that they work accordingly to increase the sales and profit of the organization.

5. Marketing strategy for the growth of the Nisa Today

There are various growth opportunities available for the company which will help in the expansion and development of the enterprise (Khajezadeh, et. al, 2019). According to the Ansoff growth matrix there are 4 strategies available for the company which can help increasing the profitability of the company.

Market penetration: It is the strategy aiming at the increasing in the sales of the current product in the market by providing the benefit of decreasing the prices. This is the least risky strategy among the others.

Market development: This strategy involves increasing the sales of the product by entering into new market. It is related to entering into new market with the existing product and does not involve high risk.

Product development: Under this strategy company aims at doing expenditure in the R&D and identifies the needs and demand of the individual. This include introducing new product and offering in the existing market.

Diversification: This is the strategy which involve highest amount of risk as this aims at introducing new products in the new market. This involve identify the needs and wants of the population and determine the demand of the product in different markets.

According to me market development will be best strategy which the company should involve for sustainable growth in the industry (AYBEK, 2020). Company is already providing more than 2400 products under all categories so introducing new product will not be an effective strategy. Rather than they should focus on increasing the sale of the existing product which could help in achieving long term goals and maintaining the stability of the company. This is less risky strategy and help in creation of the reputation of the company by creating a competitive edge. This strategy involves expense on the R&D and help in creating new opportunity of growth in different sectors. This strategy focuses on entering into new market with the existing product which helps in expanding the market and exploring new opportunities in the market. Moreover, currently, in both developing and developed countries customers give more preference to the organization which performs activities in a sustainable manner. Thus, by laying more focus on recycling and waste management Nisa would become able to get success in long-run.

6. Strategies for the future developments:

For improving the profit of the company a company could not stay in the same market place for longer period of time. The company should focus on entering a new market where there are fewer competitors which could help in gaining more costumers (Mesut, 2021). The company should select blue Ocean strategy which include rather than compete with the existing competitors, a company should exploit and enter new market. To implement the blue ocean strategy the company should follow the four step strategic action:

Eliminate: This step include identify all the technology, process and operations on which the organization was competent earlier but now they are not working efficiently. This includes removal of outdated technology, strict human resources policies and monotones processes and operations.

Raise: Under this the company should focus on the factors which the company should improve to create a competitive edge. This will help in sustainable development of the company and attracting new customers. These factors involve: innovation in the technology, training and development session of the human resources, improvement in the organizational cultural etc.

Create: The company should focus on identify and develop new strategy capabilities and the factors which the company should introduce to reduce the costs. The company focus on entering new market with effective cost will attract more costumers and leave less scope for the new entry in the market.

Reduce: This step include reduce the implementation of the strategy and process which are less effective (Shyam, 2019). This will help in reduction in the unnecessary expenditure and focusing on the new strategy which will help in effective completion of the goals and help in sustainable development of the organization.

7. Conclusion

This has been concluded for the report that SMEs should adopt a suitable course of change in the strategy to survive in dynamic environment. Nisa Today is a small medium sized company which us operating in UK with more than 4000 stores in the country. Changes in the government policies, and change in the cost of labor, changes in the lifestyle costumer, up gradation in the technology and the changes in legislation are the factors affecting the performance of the company. It has been identifies that the company is able to attain economies of scales which help in reducing the cost and company could opt for the opportunity of expanding through online mode. There are various stakeholders who are interested in knowing the profitability and stability of the company. Stakeholder matrix has been used which distinguish the stakeholder on the basis of their power and interest. Investors and project managers are the one enjoying at most power and the interest whereas local residents and NGOs are the one who are least interest in the growth of company. It has been conclude that company should opt for market development strategy for the long term development of the company as this will help in attracting and retention of the costumer with entity. The company is facing challenges from their competitors which are making it difficult to stay in the market for longer period of time. In long run, to eliminate all the challenges company should adopt blue ocean strategy which will help in sustainable development.

References

Books and journals

• Ashaye, O.R. and Irani, Z., 2019. The role of stakeholders in the effective use of e-government resources in public services. International Journal of Information Management, 49, pp.253-270.
• AYBEK, T., 2020. Effective Rural Labour Market Development Strategy. JournalNX, 6(09), pp.39-44.
• Blut, M., Chong, A., Tsiga, Z. and Venkatesh, V., 2021. Meta-analysis of the unified theory of acceptance and use of technology (UTAUT): challenging its validity and charting A research agenda in the red ocean. Journal of the Association for Information Systems, forthcoming.
• Khajezadeh, M., Niasar, M.S.F., Asli, S.A., Davari, D.D., Godarzi, M. and Asgari, Y., 2019. Application of neural network in portfolio product companies: Integration of Boston Consulting Group Matrix and Ansoff Matrix. International Journal of Economics and Management Engineering, 13(6), pp.821-825.
• Le, T.T., Huan, N.Q., Hong, T.T.T. and Tran, D.K., 2021. The contribution of corporate social responsibility on SMEs performance in emerging country. Journal of Cleaner Production, 322, p.129103.
• Malesios, C., De, D., Moursellas, A., Dey, P.K. and Evangelinos, K., 2021. Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework. Socio-Economic Planning Sciences, 75, p.100993.
• Mesut, S., 2021. Blue economy and blue Ocean strategy. J. Ecol. Nat. Resour, 5, p.000263.
• Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African Community. Global Business and Organizational Excellence, 38(4), pp.54-61.
• Obeng, E., 2019. Bullseye: An argument for effectively managing retail stakeholder relationships. Journal of Retailing and Consumer Services, 49, pp.327-335.
• Pangriya, R., 2023. Beacon Technology the Future of Retail: A Review of the Literature and SWOT Analysis. A Journal of Management, 1, p.11.
• Rze?ny-Ciepli?ska, J. and Szmelter-Jarosz, A., 2019. Assessment of the crowd logistics solutions—The stakeholders’ analysis approach. Sustainability, 11(19), p.5361.
• Shyam, R., 2019. Exploring uncontested markets with blue ocean strategy in convenience food business-a case of id fresh food. Journal of the International Academy for Case Studies, 25(1), pp.1-7.

Online

• Net worth of Nisa Today. 2023. Online. Available through: <https://www.nisalocally.co.uk/corporate/the-nisa-story/>
• PESTLE analysis of Nisa Today. 2019. Online. Available through: <https://desklib.com/document/Pestel-analysis-explanation/>
• SWOT analysis of Nisa Today. 2023. Online. Available through: <https://desklib.com/document/business-strategy-nisa-company/>