Assignment Sample on Management and Strategy
1. Introduction
Introduction: Strategic decision-making helps in providing competitive advantage along with changing overall scope along facilitating the direction of the company. Strategic decision-making also helps in facilitating necessary decisions to get taken along with managing the performance of the people to get played properly. Communicating the decision with the people and taking necessary decisions are needed for evaluating better business decisions. Strategic decision-making is also necessary and important as it helps in meeting business objectives. In this study, the chosen organization is D-Mart. The study is aimed towards analyzing the viable strategy for an organization that takes account of the reality of strategic decision making that will help in making an appropriate recommendation. The purpose has also been on facilitating purpose on providing data and argument in support of a strategy for D-mart
About the organization: D-Mart is a one-stop supermarket chain that is seen to be aiming towards providing a wide range of services and personal products under a roof. Each of the D-Mart stores stocks home utility products that are included in food, toiletries along with managing the bed and bath linen. All the items are seen to be available at competitive prices that get appreciated by the customers. The organization’s core objective is to offer customers good products at a great value. D-Mart was started by Mr. Radhakishan Damani and by his family for addressing the growing needs of Indian families. The primary target customer of the business is related to meet the demand of the Indians. In the year 2002, the first store was launched and currently, it is seen to be operating in 234 locations. The supermarket chain of D-Mart is seen to be operated and owned by Avenue Supermarts Ltd. (ASL) and headquarter of the organization is in Mumbai. The mission of the organization is related to identifying and making new products and categories that suit the everyday needs of the Indian Family. The mission is also related to providing the best value possible for the customers along with providing more value.
At D-Mart, people are seen to be placing a strong emphasis on excellence in providing efficient customer service. The employees are seen to believe in the values of Action, Care, and Truth (ACT), which helps in getting the job done. The ACT is about:
| Action | Care | Truth |
| Focus: to stay focused on what to do.
Motivated: to stay clear about achieving the goal. Enthusiastic: to conduct what to do. |
Respect: to respect every individual in the organization along with maintaining dignity and attention to get provided for believing what differences can be made in the organization.
Listen: listening and resolving the employee of customer problems quickly and also in a fairway. |
Integrity: staying open, honest, and fair in the relationships for being respectful and trustful towards others. |
Table 1: ACT organization
(Source: D-Mart, 2021)
From the September quarter, it came to know that the profit of D-Mart was raised to 48%. The company has also reported that the margin of profit after tax (PAT) was also improved to 5.4% in the second quarter of the current financial year. Currently, the organization is seen to be following the strategy of everyday low cost- everyday low price (EDLC-EDLP) for producing goods at a competitive price along with developing operational and distributive efficiency for delivering value for money along with maintaining the competitive price rate (NDTV, 2019). Currently, the organization is also seen to be facing a strong challenge of battle to stay in the run with Reliance Retail. Thus, ramping up with e-commerce operations is necessary for handling challenges for the grocery chain in the battle.
2. Environmental analysis
2.1 PESTLE Analysis
Conduction of PESTLE analysis helps in analyzing the political, economic, social, technological, environmental, and legal issues that have affected D-Mart. This tool has been useful for handling business strategies along with identifying the macro-environmental factors for managing the business work (Sastry et al. 2019). It is seen to be useful for D-Mart to conduct strategic changes in the decision-making that can be useful for the business.
| Political | It is seen to play an important role in managing investment decisions along with managing the cost line which helps in developing sustainability. Political factors that are seen to make an impact are governance system, democracy & institutions, military coup chances, probability of armed conflict. There is another thing that is developing consistency in policymaking from one government to another. Thus, changes in policy are seen to affect the business. |
| Environmental | Economic factors of any region or country are seen to make a direct impact on the organization. The economic factors that are needed to be evaluated both in the present market and also where the business will be making an entry are related to handling the inflation rate, GDP growth rate, and disposable income level. It is also seen that the share of services in the economy in their days constantly increasing which is seen to affect the manufacturing and agricultural sectors. The high employment rate is also seen to impact the D-Mart Geographies strategies to face a change. |
| Social | Social factors that are seen to affect the business are: demographic trends, the power structure in the society, enhancing the participation of women along with handling immense impact over country’s economy that is seen to affect the talent availability along with handling the consumer demand. It is also necessary for D-Mart to analyze the power structure of the society along with analyzing the impacts of the demand on the economy. |
| Technological | In the business model, technology is making fast changes across various industries. Technology trends are seen to be impacting the business environment that is seen to be making changes in artificial intelligence along with managing the use of machine learning for handling the consumer behavior along with growing importance over service providers. D-Mart geographies are seen to assess for handling technology disruption in the industry. E-commerce is seen to be critical for D-Mart geographies business model. |
| Environmental | Environmental factors are also seen to gain traction that is seen to affect the regulatory and policymakers. Climate change and changing ecosystem is also seen to lead the policies to face a change. It is also necessary for D-Mart geographies to develop environment-friendly products. Environment policy is also seen to facilitate numerous decisions to get taken by handling pricing strategy along with conducting development to the products. It is also necessary to develop a policy on waste management by managing the basic requirements of the environment. |
| Legal | It is known to be the factors that get implied to make an entrance to the market along with resolving the disputes. In case, if the legal system is not strong enough, then D-Mart geographies are seen to face numerous challenges. Thus, D-Mart geographies are seen to assess the level of protection that is seen to be under the legal system of the country. Transparency is also said to be essential for developing fairness along with making consistent decisions, |
Table 1: PESTLE Analysis
(Source: Çitilci and Akbalık, 2020)
2.2 Opportunities and threats in analyzing the changes
D-Mart is known to be the second-largest and also the most profitable food and grocery retailer in India. In order to achieve such growth, it has been necessary for the business to make positive changes to get conducted. Thus, analyzing external environmental factors such as opportunities and threats are needed to be analyzed for making changes based on strategies. Based on the conducted PESTLE analysis, opportunities and threats are seen to arise and it also makes a direct impact on the industry attractiveness. Thus, the opportunities and threats that are seen to make an impact are:
| Opportunities | It is related to those on which businesses can capitalize for increasing returns. The opportunities are:
· Technology: technology is seen to offer many things to the retailer for facilitating in-store experiences along with creating value-added services to offer to the consumers. · Personalization of the services: Customers are seen to be looking towards facilitating services to get provided along with managing the payments to get conducted properly. It is also seen to increase the quality of the services. |
| Threats | Threats are those factors that are seen to be detrimental towards conducting growth to the business. The threats that are seen to affect the businesses are:
· Online retailers: as per the current situation, people are leaning towards more conducting online business. · Online start-ups: companies are seen to open an online business which is cheaper compared to offline stores. Thus, it is seen to be affecting the online business. |
Table 2: SWOT Analysis
(Source: Bhasin, 2018)
2.3 Porter’s 5 forces analysis
Conduction of Porter’s 5 forces analysis is necessary for facilitating understanding market competitiveness to the business environment along with identifying the potentially profitable strategy.
| Competitive rivalry | The rivalry with Reliance is getting higher day by day. The bigger the number of competitors, together with the number of identical items and administrations they offer, the lesser the control of a company. |
| Supplier’s power | The model helps in addressing the suppliers along with driving the cost of inputs. It is also seen to be handling the cost of the company of the supplier. |
| Buyer’s power | The ability that customers are seen to use for driving prices lower along with managing the significant changes to get conducted. |
| Threats of a substitution | Organizations that are seen to deliver products are seen to generate control for handling the business work. |
| Threats of new entrants | It is also seen to affect the force of new entrants for making changes to the competition. Online businesses are also seen to be affecting the business. |
Table 3: Porter’s 5 forces
(Source: Scott, 2020)
3. Capability analysis
3.1 Value chain analysis
It is said to be a process where a firm is seen to identify the primary along with supporting the activities that help in adding value to the final products for analyzing the activities that look after reducing costs or to increase differentiation. It also looks after representing the internal activities that D-Mart can engage in transforming inputs and outputs. Value chain analysis also helps in facilitating strategic tools that can be analyzed in internal firm activities. The goal is related to recognize the activities that are known to be the most valuable.
Value chain analysis also helps in increasing the efficiency of the business along with improving the flow of materials and products by reducing waste in the supply chain process for enhancing the customer experience. It is also seen to be useful for improving the business work to gain a competitive advantage for D-Mart. It also helps in creating a competitive advantage for managing the competitors along with improving the value chain of the company (Dugassa, 2017). Two different approaches are seen to perform the analysis and thus it is seen to depend on facilitating the competitive advantage for certain changes to get conducted for managing a business. Such an approach is also seen to be analyzing the costs along with providing necessary advantages to the business. In the case of analyzing the differentiation advantage, it was related to create superior products o services for facilitating differentiation approaches to get conducted. It is also known to be useful in providing a competitive advantage to the firm along with providing generic strategies into practice and it is included of the below:
- Cost leadership: It helps in providing the lowest price to customers (Devaux et al. 2018).
- Differentiation: It is necessary for the business to provide important attributes that buyers demand and the company provides that at a premium price.
- Focus: It is related to facilitate strategic changes based on market segmentation.
The primary activities are included below:
- Investment team: It helps in making and taking investment decisions.
- Operations and traders: It helps in ensuring investments that are seen to be lined with the guidelines that are set by the client (Bammann, 2019).
- Marketing and sales: It is related to produce necessary things for the clients.
- Service: It helps in providing all the touch points to the client.
Supporting activities are also there, which are:
- Technology: It helps in designing trading along with enhancing efficiency and effectiveness to provide service and also to make the best investment decisions.
- Human resources: It helps in finding and retaining the talent in the firm (ZUCCHI, 2020).
- Infrastructure: it is included of the risk managers where the firm operates the regulations by analyzing the internal and external market.
3.2 Strengths and weaknesses
Analyzing the strengths and weaknesses of the company is necessary for analyzing the value of the organization.
| Strengths | Focus on the long-term: D-Mart is seen to be focusing on gaining a long-term advantage over its competitors. It also helps in maximizing the returns through a value that helps in driving pricing strategy.
Slow scaling up It has helped the company on starting better control along with facilitating a deeper understand to handle the supply line. Discount policy: It is considered to be one of the important factors of D-Mart that has helped in facilitating better advantage to get provided. It has also helped in gaining the attention of the customers. Price-based differentiation: It is seen that D-Mart never followed the trends that were set by other retail brands and this business goes for setting their trends. People-centric management style: D-Mart was seen to be holding an effective employee policy which is also seen to be transparent that helps in facilitating employee relations. Thus, developing good relations is needed for managing the balance between vendors, suppliers, and stakeholders. |
| Weaknesses | Focus on certain places: It is necessary for the business to develop business strategies towards more states. D-Mart is seen to be focusing on western states more, where the market growth is seen to be restricted from gaining market prominence.
Sustainability on low pricing: The zero credit policy is also seen to be providing strategic changes to get conducted for providing necessary support. No fills: D-Mart is also seen to follow a no-frills approach that is seen to focus on cutting costs that are seen to look at prices of products on offer. Thus the sustainability of this differentiator is questionable. Slow growth: D-Mart was known to be the retail boom set of fire in India. It’s been 16 years that the retail market is on the way and yet the organization is seen to make the step to the market due to its long-term focus. |
Table 4: SWOT Analysis
(Source: Bhasin, 2018)
4. Proposed strategy and conclusion
Thus, it can be analyzed that business has a need of making changes in business strategies to make a better reach to the customers. In these days, it can be seen that businesses are running to be online and for that, it is necessary for D-Mart to integrate online strategies for making the reach to the people who are willing to buy things online. Thus, it is necessary for supporting the firm’s primary and support activities for producing goods and services to be identified. Value chain activities are necessary for delivering customer value (Holotiuk and Beimborn, 2017). Establishing the relative importance of the activities is necessary for analyzing the total cost of the products. Identifying the cost drives is necessary for driving changes that can encourage managers to develop strategic changes. Identifying opportunities are also necessary for reducing costs along with handling the wage rates that are seen to deal with increasing production speed. A solid online presence is seen to permit the construction of the brand and pick up the validity that’s required to attract more clients (Kong et al. 2020). Together with making trade promptly open, online nearness also gives your clients a straightforward way to discover out more almost what has to be offered. Innovation patterns are seen to be affecting the trade environment that’s seen to be making changes in artificial insights besides managing the utilize of machine learning for dealing with the consumer behavior in conjunction with developing significance over benefit suppliers. Environment arrangement is additionally seen to encourage various choices to urge taken by taking care of estimating methodology alongside conducting improvement to the products.
It is also seen to be useful for improving the business work to gain a competitive advantage for D-Mart. Two different approaches are seen to perform the analysis and thus it is seen to depend on facilitating the competitive advantage for certain changes to get conducted for managing a business. It also helps in creating a competitive advantage for managing the competitors along with improving the value chain of the company. It is also seen that online presence is also important for outbound marketing as it helps in rein forming the branding along with meeting the target market. It also helps in attracting customers to the brand. Online businesses, be that as it may, can be exceptionally engaging since they don’t have the conventional obstacles that most modern wanders confront (Belew and Elad, 2020). Communicating the decision with the people and taking necessary decisions are needed for evaluating better business decisions. Strategic decision-making is also necessary and important as it helps in meeting business objectives.
In the study, it was mentioned that the organization’s core objective is to offer customers good products at a great value. The zero credit policy was also seen to be providing strategic changes to get conducted for providing necessary support. Value chain analysis was also seen to be useful that has helped in increasing the efficiency of the business along with improving the flow of materials and products by reducing waste in the supply chain process for enhancing the customer experience. It was also seen to be useful for improving the business work to gain a competitive advantage for D-Mart. It was also mentioned about the challenges, which are related to the organization that is also seen to be facing the strong challenge of battle to stay in the run with Reliance Retail. Thus, ramping up with e-commerce operations is necessary for handling challenges for the grocery chain in the battle.
Reference list
Belew, S. and Elad, J., 2020. Starting an online business all-in-one for dummies. John Wiley & Sons.
Bhasin, H., (2018). SWOT analysis of D mart. https://www.marketing91.com/swot-analysis-d-mart/
Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for Environmental Scanning Process. In Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 336-357). IGI Global.
D-Mart (2021). OVERVIEW. https://www.dmartindia.com/about-us
NDTV (2019). Avenue Supermarts (DMart) Profit Rises 48% In September Quarter. https://www.ndtv.com/business/dmart-share-price-dmart-avenue-supermarts-earnings-dmart-reports-rs-323-crore-profit-in-q2-2115830
Sastry, V.V.L.N., Katvi, S. and Tourani, P., 2019. AMAZON’S STRATEGIC ANALYSIS AND IT’S ENTERPRISE STRATEGY FOR THE CLOUD. Advance and Innovative Research, p.186.
Scott, G., (2020). Porter’s 5 Forces. https://www.investopedia.com/terms/p/porter.asp
Zhu, F., & Liu, Q. (2018). Competing with complementors: An empirical look at Amazon. com. Strategic Management Journal, 39(10), 2618-2642.
ZUCCHI, K., (2020). Value Chain Analysis. https://www.investopedia.com/articles/investing/111014/basics-value-chain-analysis.asp
Bammann, H., 2019. Participatory value chain analysis for improved farmer incomes, employment opportunities, and food security.
Devaux, A., Torero, M., Donovan, J. and Horton, D., 2018. Agricultural innovation and inclusive value-chain development: a review. Journal of Agribusiness in Developing and Emerging Economies.
Dugassa, B., 2017. Value chain analysis of niger seed: the case of jardega jarte district, western Ethiopia (Doctoral dissertation).
Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.
Kong, D., Yang, X., Liu, C. and Yang, W., 2020. Business strategy and firm efforts on environmental protection: Evidence from China. Business Strategy and the Environment, 29(2), pp.445-464.
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