Management: Empire Company Limited.
A SWOT analysis is a well formulated guideline for growth analysis. The guideline is almost applicable in all business enterprises; therefore, for the case of Empire Company Limited, it is the most appropriate method. Even though Empire has been in the market for 108 years, it still needs to analyze itself before taking out the best measures in alignment to its growth strategy and sustainability issues (Judge, 2012). The mnemonic SWOT is a word used in place of the four major aspects of evaluation, that is, strength, opportunity, weakness and threats. The four aspects of evaluation are evident in all business organizations across the world regardless of their industry of trade or reputation, as such, Empire lies within the context of SWOT analysis. As a matter of fact, Empire’s continued growth can be solely attributed to innovation and creativity, once again, a function of SWOT analysis. In a nutshell, SWOT analysis forms a basic foundation towards growth and sustenance (Peter, 2011).
Empire’s Internal Environment Analysis
Even though the company has registered success in almost all economic platforms ahead of its competitors not only in Canada but globally, there are certain underlying features that foster its growth and sustainability. A company’s internal environment constitutes things that affect the company’s operation from inside (Judge, 2012). Specifically, the company’s strength is primarily based on its diversity, effective incorporation of technology in almost all its operations and efficient management. However, it’s not only the three factors that propel the company to greater heights, but also a number of internal factors that seem to be working well for the organization. As things stand, there are no conspicuous weaknesses evident in the company’s operation but it needs to do much more on sustainability issues. Precisely, the company’s management should work on ways to meet the current trends of consumption (Peter, 2011).
The market has revolutionized too, today, clients are too demanding in such a way that they opt for tailor made goods and services. In recent times, clients order goods online; it’s upon the company to make the necessary arrangements to avail the ordered products to the customer. Unfortunately, this has not yet been formulated by Empire Company. Even though the company has some little setbacks in terms of its daily operations, the opportunities outweigh the current evident weaknesses (Peter, 2011). In terms of physical resources, the company is well endowed; it has physical entities not only in Nova Scotia but Canada as a whole. Currently, the organization owns an approximated amount of 1500 functional outlets in the 10 provinces of Canada. Besides, it has 350 fuel outlets across the nation. All these physical entities give the organization a competitive advantage ahead of its competitors. The chart below summarizes the SWOT analysis for Empire’s internal environment.
SWOT Analysis Chart for Empire’s Internal Environment.
Source: Author
The table above gives a summary of Empire’s internal environment. It’s quite clear that the corporation still has a more competitive advantage than the rest. Its current human resource stands at 125,000 personnel while reputation has been sound for the past 108 years it has been serving the Canadians at various levels. Coupled up with its current innovativeness, the company is destined for greater heights (Judge, 2012).
Empire’s External Environment Analysis
Just like any other organization, Empire has been facing challenges from the external environment. However, it has been struggling over the years to align its daily activities in order to make good profits out of its daily business operation. Even though the external environment consist of factors that organization can do very little to change, they should adjust their operations to the external environment. External environments are made up of those activities that affect an organization’s performance from outside. Studies show that the external environment significantly affects a company’s ability to function while others even threaten a company’s existence (Greco, Cricelli, & Grimaldi, 2013).
SWOT Analysis Chart for Empire’s External Environment.
Source: Author
Generic Strategy
The primary vision of Empire Company Limited is to facilitate the growth and development of a healthy population. Forming a very crucial part of the Canadian population, the company seeks to provide healthy food stuffs in order to enhance the population’s health. However, achieving this vision entirely depends on the products the company would be selling to its clients on daily basis. Currently, there exists the problem of GMO foods, as a matter of fact; people would want to avoid genetic foods for one reason or another (Greco, Cricelli, & Grimaldi, 2013). The company would want to sell only organic foods to the population even though they are quite expensive. The company’s generic strategy has being derived from its mission statement, that is, “Eat Better, Feel Better and Do Better.”
Even though the company has been striving to better their customer’s satisfaction, it is something that cannot just stop. Customer’s satisfaction is an ongoing and continual aspect. Currently, the company’s customers are a satisfied lot, however, the company is doing more to make them more satisfied, maintain them and win their loyalty. These are aspects that must be continual and as such the organization must come up with strategies that would guide the company’s current and future position in terms of customer satisfaction, customer base and the type of goods and services available for purchase. Even though the company is currently ahead of its major competitors, it must work extra hard to maintain the lead. The major aim of the company is to grow and increase its customer base by offering more competitive products and services to the clients. The company’s generic strategy on making its services better has been a major guideline towards its growth.
There are various examples on how Empire has been struggling to rise to greater heights in terms of customer satisfaction and customer base. Recently, it implemented a strategy on which a customer is liable to fuel discount upon purchasing grocery from its outlets. The logic behind the strategy is that most motorists are the purchasers of grocery from its outlets situated all over Canada. Besides fuel discount, the corporation through the SAP system came up with a policy where only the freshest grocery were stocked in its stores across Canada (Noland, & Phillips, 2010). The SAP system effectively checks the freshness of grocery by checking the supply date and the date of expiry. Unlike in the past where the quality of grocery was checked manually, the new system does that by ease, over the recent times customer complaint has significantly reduced in regards to freshness of grocery. All these measures aim at keeping the already existing customers, attracting new ones while offering the best services to the clients. On top of customer satisfaction, the generic strategies currently put into play strive to help the company grow in terms of physical assets and financial capability. These can be seen in the company’s mission statement that stresses on the need to increase the company’s net worth and net assets.
Likewise, the company has come up with strategies to help curb the stiff competition currently evident in the industry. When the company merged with Sobey Inc. in 1963, its main intention was to diversify and effectively beat competition. Being grocery retailers, one would fail to understand how the company merged with a real estate company, the logic was very simple, to gain stability in order to beat competition. Yet again, the mergers were made due to diversification purposes, as it is known Empire is currently the most diversified company in Canada. However, its current diversification is not yet enough according to the strategic planners, as a matter of fact, the organization is striving to diversify even further. The company is currently attracting more clients due to its diversified goods and services. According to business terms, clients have the tendency of developing a liking for stores that offer a variety of goods and services under the same roof. These are some of the things that the company is striving to achieve through its integrated information system. The corporation is planning for more in the future.
Discussion and Recommendation
According to previous analysis, Empire Company is quite objective and has the ability to remain relevant in the industry for more years to come. Specifically putting SWOT analysis into consideration, it is revealed that Empire has several competitive advantages ahead of its competitors. SWOT analysis clearly reveals that Empire has the full capacity to suppress entrants due to its diversified goods and services. Moreover, the food retailing business has proved to be the most profitable business activity for the corporation, all these can be attributed to its uniqueness and customer satisfaction. Furthermore, any food grocers currently are joining the market should think of the best strategies to enter the market, lack of it will render them totally irrelevant. Empire has been serving Canadians in various capacities for the last 108 years; as a result, it has a high number of loyal customers than any other food grocers in the industry (Priem & Carr, 2012).
The organizations generic strategy is borrowed from the organizations motto, in so, the organization is striving to provide healthy food to the Canadians. Just as the company is striving to be prosperous, it wants the same to be insinuated on its customers through healthy and happy living. The organization is quite innovative and is ever ready to accept change, take for example the automated supply center, the SAP system and the fully integrated information technology system. All these strategies are meant to enhance the company’s present as well as preparing it for the future. In a nutshell, the company is preparing for the future at present. The organization’s primary objective is to increase its customer base by attracting more and retaining the already existing ones. Currently, the organization is on the right course only that it would need to innovate am be creative enough to continue being relevant in the future.
All the functionalities, goods and services offered by the corporation currently are just perfect for the customer needs. However, a time progresses, new challenges would be presented therefore, innovation should take care of that. Innovation is the only way an organization can become more competitive and carry out sustainable businesses. Empire should stick to its current strategies and strategic objectives owing to the fact that they attract more customers while retaining the already existing besides succinctly satisfying the customers’ needs just as they require. Therefore, since the strategies work best for the company and enhances its daily operations there company should do nothing else but stick to its course.
References
Greco, M., Cricelli, L., & Grimaldi, M. (2013). A strategic management framework of tangible And intangible assets. European Management Journal, 31(1), pp.55-66.
Judge, H. (2012). Staffing Organization. An Analysis of Human Resources in Organizations Upper saddle River, New Jersey, NJ: McGraw-Hill Publishers.
Noland, J., & Phillips, R. (2010). Stakeholder engagement, discourse ethics and strategic Management. International Journal of Management Reviews, 12(1), pp.39-49.
Peter, H. (2011). The Economic Way of Thinking. A Review of Importance of Innovation to Organizations. New York, NY: Prentice Hall Publishers.
Priem, R.L., Li, S., & Carr, J.C. (2012). Insights and new directions from demand-side Approaches to technology innovation, entrepreneurship, and strategic management . Research. Journal of management, 38(1), pp.346-374
