The Mission and Vision of SHANS

Published:

SHANS is leading with the perceptive that customer's values are always important. According to them they are providing the good quality products on lower prices in comparison with their competitors. A questionnaire was prepared to analyse the organisational values of SHANS. In the following table average of responses is being given.

Current Strategy of SHANS

SHANS is leading the way with the perceptive that consumers' ethnic values are always important. Accordingly it is targeting specific market. It is supplying what Asian minorities want. Consumers have become loyal to their brand and the company is struggling to maintain it.

When SHANS entered in the retail market of United Kingdom it employed low price strategy in comparison to its competitors for the market share. Its strength is to be the largest halal supermarket of Keighley and mainly west Yorkshire. The most selling product is supplied by the same group of companies. So it is dictating the price of its own choice and selling products on lower prices. That is why its competitors are far behind of it.

Lady using a tablet
Lady using a tablet

Professional

Essay Writers

Lady Using Tablet

Get your grade
or your money back

using our Essay Writing Service!

Essay Writing Service

SHANS is involved in community work to make good business sense like recycling of the waste materials, reduction in carbon emissions etc. Now the company is going to expand its business patterns. First step is home delivery of their products. Next step will be online sales to earn profit margins. The company is planning to open new stores in other areas of United Kingdom. Management has started paperwork in this regard.

Task 02

External Analysis

PESTEL Analysis

PESTEL analysis develops an overall look at the main external factors which have a great effect on the company whether positively or negatively in the near future.

Political: The regulation of developing huge out-of-town supermarkets has a huge effect on SHANS negatively. Because it has no more supermarkets in the different areas of the United Kingdom and due to this regulation the organisation will not be able to add to their profits. If we look in broader terms on U.K's political system and the party in the government has its own vision. The U.K's next election are very near and any change in the political set up will have its consequences in the next five year of the business of Shans.

Economic: Due to increase in the prices of fuel in the international market, SHANS has devised ways to reduce the cost of delivery of the fleets at the same time saving the environment. In the long run these measures that SHANS is employing and planning will cut down the company's expenditures. Interest rates and foreign exchange rates are also not very favourable.

Sociological: The influx of cheap labour from Eastern Europe would affect the British workers because these workers are paid on cheaper rates. Therefore, the companies like SHANS would rather prefer to employ these workers than the locals.

Technological: The usage of software for production and marketing is more helpful and useful because it is making the job of the employees and management easier and error free. 

Environmental: There are two aspects of environment that can be related to any business. One of them is the company specific environment or internal environment. As for as the internal environment of Shans is concerned, it has a very good and dedicated workforce. There are no groupings and workplace politics. Management has one to one relationship and contact to each and every employee. Religious and cultural values are cared for and ethics have priority over worldly affairs. There does not exist any formal labour union or internal pressure groups. But these issues can rise as Shans business in expanding.

The external environment is more important. It includes different stakeholders like customers, suppliers, competitors, local environment protection agencies, and government and tax authorities. As these all have some stake or interest in the operations of the business and vice versa. Shans has strong customer relationship. It has also good working relationship with its supplier. The other stakeholders are also given due care and stakeholder management function is in the hands of top management.

Legal: Legal environment includes the workplace health and safety regulations, tax law and employee benefit laws. Shans has a dedicated staff member who looks after the health and safety at workplace. Any changes in law can affect the performance of Shans. For example there are a few worker from over sea and the recent changes in immigration law has made it difficult for Shans to recruit any foreign national. Shans is required to get Tier 1 licence in order to sponsor international high skilled workers. In the same way each and every aspect of business operations are regulated by some law and legal environment is needed to be considered by the business like Shans.

PESTEL Analysis

PESTEL

Notes

Potential impact

Implication and importance

Score

Political

Lady using a tablet
Lady using a tablet

Comprehensive

Writing Services

Lady Using Tablet

Plagiarism-free
Always on Time

Marked to Standard

Order Now

Next Elections

Different political perspective of different U.K's parties

Low importance

Low

Economic

Interest Rates

Credit Crunch

Mortgage market

Tax rates

Hard to borrow

Huge taxes

Can lead to business closure due to credit crunch

High

Social

Religious Norms an beliefs

Business Boycotts

The business may fail to fulfil its basic commitment

Medium

Technological

Online shopping

It is an opportunity

Can be started to provide customer value

High

Legal

Environment legislation and Green U.K programme

Health legislation

Higher compensation and claims expense

Business may lose its reputation and prestige

High

Porter's five Forces at SHANS

Competitive Rivalry: Classical economists have forecasted that the rivalry between companies could propel the profits and sales to zero. SHANS has competition between Kashmir Food Store, Pakeeza supermarket and Alhalal supermarket which could sell the same goods on cheaper rates. These companies can also present the substitutes to SHANS products.

Threat of New Entry: new supermarkets may face barriers that the large retailers have imposed on them, like in the case of SHANS wherein the company have already cornered some good, in which the smaller supermarkets will not be able to find cheap and reliable suppliers.

Threats of Substitution: As SHANS has competition among the

Companies, therefore always have a risk of substitutes. Its competitors can present

Substitute of its products on cheaper rates. Then consumers will automatically shift to other markets.

Buyer Power: The power of the consumers drives the prices down. If the products in SHANS are more expensive than its competitors the consumers will shift to the other supermarket.

Supplier Power: SHANS as compared to its competitors has a power over the suppliers because these companies dictate the price that they must pay to the supplier.

Five Forces Analysis at SHANS

Force

Issues

Potential impact

(Positive, Negative,

No Impact)

Competitive Rivalry

High switching costs

Negative

Threat of New Entry

Economies of scale

Positive

Threat of Substitution

Buyers inclination

Negative

Buyer Power

Reduced Buying power reduces revenue

Negative

Supplier Power

Economies of scale should be achieved. Monopolist can overcharge which will cause the end users price to hike

Negative

Stakeholders

SHANS has both internal stakeholders and external stakeholders. The key internal stakeholders of SHANS are its managers, shareholders and most especially their employees. The key external stakeholders of SHANS are its customers, suppliers and local authorities. Each of these stakeholders has its own interest in which can be directly by the changes and decisions of SHANS.   

Customers want good quality products at low prices. They also want to see that SHANS is involved positively in their community.

Employees are motivated by being given handsome wages and pleasant work environment.

Shareholders want a good return on their investment in the business. They also believe in community involvement, as it makes good business sense.

Suppliers may be local businesses that SHANS can use.           

Analysis of the Competitive Environment

General Environment: United Kingdom is one of the industrialised and richest nations in the world; therefore the country has a very stable economy and a huge purchasing power from the consumers. Aside from the fact that it is one of the richest countries in Europe, the UK is also a very diverse country which is composed of different ethnic groups such as the White, Asian, Black, Mixed, Chinese and other ethnicities. It has huge where different retail giants like Tesco, ASDA, and Sainsbury which are working in competition. Currently Tesco is leading the market. However, the regulation of the government to create and developed stores out-of-town makes it hard for these retailers to dominate the market.

Business Environment: In the United Kingdom business environment for the retailers is very competitive. Huge retailer giants are receiving great market share.

Lady using a tablet
Lady using a tablet

This Essay is

a Student's Work

Lady Using Tablet

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Examples of our work

SHANS has competition between Kashmir Food Store, Pakeeza supermarket and Alhalal supermarket. Therefore different strategies are being made by SHANS to keep up. The company is lowering the prices of its goods; however other retailers have followed also this strategy making the competition even tougher.

Stakeholders Impact Analysis

Organisation: SHANS

Stakeholder 1: The Employees

The company has major problem regarding its employees particularly the butchers who want high wage rates and minimum working hours. Due to present economic scenario it is not possible for the company to pay their employees high wage rates. It has negative impact on the company.

Stakeholder 2: the Customers

The customers always want good quality products on cheaper rates.

Stakeholders impact analysis

Stakeholders | level of interest | level of power

Type

Detail

High

Medium

Low

High

medium

Low

Primary stakeholder

Management

Employees

shareholders

H

M

H

H

L

H

Secondary stakeholder

Suppliers

Customers

Govt. agencies

Legislature

H

H

L

M

H

H

H

H

Strategic objectives and stakeholder impact analysis

Key future strategies of SHANS

1) Online selling is going to be used as a profit maximising strategy.

2) Restructuring of the employment screening and recruitment process to attract international skilled work force

The benefits of engagement with key player stakeholders (high impact, high interest) for example

If Stakeholders are employee: Benefits include better and motivated workforce

If we consider suppliers: We can position ourselves in a better bargaining position and can get economies of scale through bulk purchasing.

The risk of non engagement with Key Player Stakeholders

Stakeholder 1 employees: we can face strikes from them and may be we have to pay high redundancy expenses.

Stakeholder 2 for example tax authorities: if we do not comply with tax rules and company house requirements we may have to pay penalties.

Task 03

SWOT

SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company. A SWOT analysis should not only result in the identification of a corporation's core competencies, but also in the identification of opportunities that the firm is not currently able to take advantage of due to a lack of appropriate resources. (Wheelen, Hunger pg 107)

For SWOT analysis, thorough market research and accurate information systems are the basic necessity. Firstly, assess the market:

What is happening externally and internally that will affect their company?

Who are their customers?

Who are their actual competitors?

What are the strengths and weaknesses of each competitor?

What are the driving forces behind sales trends?

What are important and potentially important markets?

What is happening in the world that might affect their company?

What does it take to be successful in the market?

At second, access their own company:

What do they do the best?

What are their company resources - assets, intellectual property, and people?

What are their company capabilities (functions)?

How are they different from their competitors?

What are the general market conditions of their business?

What are the needs of their products and services?

What are the customer-market-technology opportunities?

What are the customer's problems and complains with the current products and services in the industry?

Strengths of SHANS

The analysis of strengths focuses on internal factors that give an organization certain advantages in meeting the needs of its target market. First strength of SHANS is there is no that large halal supermarket in Keighley. They have wide capacity stock rooms. While their competitors businesses are run on small scale. There are benefiting by economies of scale.

Secondly SHANS location is very favorable as it is in the centre of Keighley. Residents of this town can approach it easily.

Their most selling product is halal meat which is supplied by their own companies. In this regard they can set the price of own choice. SHANS has their own car parking area while their competitors do not provide this service.

Weaknesses of SHANS

Weaknesses refer to any limitations a company faces in developing or implementing a strategy. SHANS lacks major English food items as it is halal market so have limitations related to it. That is why losing good market share. Second weakness is that SHANS do not offer home delivery while their competitors are doing so.

Another weakness point of SHANS is that they are not taking the benefits of technology.

Opportunities for SHANS

SHANS can open halal stores or markets in other areas of United Kingdom. They can get benefits of technology and reduce their operating costs. By its usage they can start online sales of their products another opportunity for them is home delivery of their products.

Threats for SHANS

Economic change is rising raw material costs which will impact profit margins overall. Secondly English retail giants are planning to start supply of halal meat. It is a big threat for them. Today it is the age of technology. Consumers can have everything they want on their finger tips. If SHANS does not yet utilize technology to the heights it should be then it may lose in future.

Task 04

Functional strategy Analysis

Marketing: SHANS is not in of favour expensive marketing techniques. Secondly it is not the requirement of their business as they are using lower price strategy. They have their own targeted customers of halal meat.

Production: SHANS has 1 Supermarket which covers 1000 sq. ft. Their most selling product is halal meat. Daily productions are about…………

Profitability: SHANS sales are …………………their profit ratio is……………

Management: Structure, systems and culture

Top Management: Mr. Ali Akber Shan is the CEO of the company. He is the person behind the growth of SHANS. When he acquired the position he was faced with a number of challenges but he handled sensibly. The strengths of the top management are is a good experienced leader in terms of growth of products. He has good relations with members and leading the way in good manners.

 Structure: The structure of SHANS is to sell products on lower prices. There strength is their halal meat department. The weakness of the company is lack of English products.

Culture: The basic culture of SHANS is giving importance to customer's values. Their strategy is lower prices of their products.

Systems:  The use of technology is useful for any organisation. SHANS is also benefiting by its usage. But they are in need of new technological advancements to be able to cope.

Current Strategy of SHANS

SHANS is leading the way with the perceptive that consumers' ethnic values are always important. Accordingly it is targeting specific market. It is supplying what Asian minorities want. Consumers have become loyal to their brand and the company is struggling to maintain it.

When SHANS entered in the retail market of United Kingdom it employed low price strategy in comparison to its competitors for the market share. Its strength is to be the largest halal supermarket of Keighley. The most selling product is supplied by the same group of companies. So it is dictating the price of its own choice and selling products on lower prices. That is why its competitors are far behind of it.

SHANS is involved in community work to make good business sense like recycling of the waste materials, reduction in carbon emissions etc. Now the company is going to expand its business patterns. First step is home delivery of their products. Next step will be online sales to earn profit margins. The company is planning to open new stores in other areas of United Kingdom. Management has started paperwork in this regard.

Alternative Strategies for SHANS

There are also alternative strategies in which SHANS can also employ to boost their sales. These strategies that are:

Cost Leadership Strategy. This is the strategy in which products are produced at a very low cost. SHANS can adopt this strategy. However there are pros and cons in this strategy. Pros are that it attracts more consumers to buy the products of the company because of low prices therefore generating sales. This strategy cons are due to the fact that it hurts the suppliers in the developing world because of cutting the prices.

Differentiation Strategy: SHANS can use this strategy too. In it company develops products that are based on their ideas so these are unique. They can catch up the customers who will be loyal to their brand. Cons are that it is necessary that products must be of very high quality and value. For this purpose research is compulsion which will be costly as well.

Segmentation Strategy: This strategy targets a specific market. This strategy also has pros and cons. The pros are that the company can meet the needs of the target markets at the same time the marketing is not that expensive. The cons are that it is mostly applicable to small firms and it does not generate incomes on a higher level. If SHANS want to expand their business level, it will not be so practical because it targets only specific market.

References: Class work

Handout given by teachers

Wheelen, Hunger pg 107)