STRATEGIC MANAGEMENT - HEALTH FOOD STORE

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Strategic Management - Health Food Store

Part 1

Strategy Types

Introduction

Intended Strategy

An intended strategy is a model that a business purposes to implement. According to Trigeorgis and Reuer (2017), a firm’s strategic plan details its intended strategies, especially regarding approaches to provide end-users with goods and services. Perhaps the best example of an intended strategy is when, in 1965, Fredrick Smith created a complete business plan as a class activity (Lynch, 2018). In his proposal, he outlined a delivery system that would augment efficiency by sending parcels through a central hub and deliver them to different locations. Later on, Frederick started Federal Express (FedEx), a business that copied his strategic plan.

Emergent Strategy

An emergent strategy is an unintentional approach that results in a reaction to unexpected prospects and hindrances. Businesses use emergent strategies to attain success (Demir et al., 2017).  For example, Southern Bloomer Manufacturing Company's business model involved producing undergarments for use in mental and incarceration institutions (Lynch, 2018). Majority of managers of such entities trusted that other companies manufactured unsuitable underwear for persons under their care. For that reason, they wanted to provide prisoners with sturdy and durable undergarments that could endure the rigidities of jail activities and laundering. To fulfill these demands, Southern Bloomers started to sell underclothing produced from heavy cotton fabric.

Realized Strategy

A realized strategy denotes the approaches that a business actually implements. According to Demir et al. (2017), the combination of other strategies, including the emergent and intended plans, forms realized strategies. Even with well-defined objectives, ideas and outcomes experience change, altering the intended strategies. For this reason, such changes result in the formulation of a coherent and organized realized strategies. Lynch (2018) postulates that in the case of Southern Bloomers, it's emergent and intended strategies shape its realized strategy that involves the production of gun-cleaning products and undergarments. For FedEx, the strategy formulated by Fredrich Smith regarding the use of a centralized hub to deliver packages is still the company's realized strategy.

External and Internal Environment Analysis of the Organization

External: PESTLE and Porter’s 5-forces

Political, Economic, Socio-cultural, Technological, Legal, and Environmental elements are some of the uncontrollable factors affecting the performance of entities in the organic healthy snacks industry. According to Trigeorgis and Reuer (2017), external factors help businesses determine whether the current trends might positively or negatively affect their profitability function and operations, informing their reaction. PESTLE factors include:

o   Political Factor: Regulation and Legislation

The United Kingdom (UK) government has comprehensive regulatory frameworks for the organic health food industry. According to Tsolakis et al. (2018), laborers' requirements, storage and transportation standards, and general cleanliness are some of the food business monitoring parameters. In the global market, the organic food industry is tightly regulated since various government aims to eliminate low-quality nutrition.

o   Economic Force: Lifestyle Change

The decline in purchasing power among Britons affects the organic food industry. A low acquisition parity means that locals cannot obtain expensive brands (Trott & Simms, 2017). Not only do lifestyle audits show that locals, especially across Europe and North America utilize organic foods but also that they increasingly pressurize businesses into offering affordable pricing.

o   Socio-cultural Factor: End-user Behavior

The increase in education concerning food health results in customers becoming more aware of better food options. A lifestyle transformation across...