The Multidepartmental Store Spar Commerce Essay

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Firms or companies today face a broad array of risks and challenges in there day to day activities or running's of the company be they Strategic, Operational, Financial, Competitor Vendor, Customer just to name a few. Globalization has brought to the fore front major competition with the various continents of the world due to increased economic integration in the world at large. Experts in the field of management to be precise have advised or argued time and again that firms or companies should respond to environmental changes in the modern business environment, such as increased competition, by engaging in systematics or strategic management planning to anticipate and respond to changes in the modern business environment using information as a basic tool to changes and unforeseen events or circumstances. The reason behind this is because formal strategic planning have been proven to enhance a firm or companies performance (multidepartment stores spar).Thompson et al (2006) explain that a firm or companies strategy is its management game plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully in a modern business environment, conducting operations, and achieving targeted objectives or goals lead down by the strategic manager.(Thompson et al,2006)


Critical Analysis of the major initiatives of a strategic manager information and technology driven in multidepartment stores in a competitive business environment……………………………i

The core issues and challenges faced by a strategic manager in modern business environment and solutions to these problems or initiatives taken to improve output? ………………………………ii



Analysis of the major initiatives of the strategic management of spar multidepartment store information and technology driven in a competitive business environment

These are two of the major initiatives taken by the strategic manager of Spar departmental store information and technology driven in a business environment listed below it also includes subs for each of the major initiative given.

1, Strategic evaluation and choice

Mission and scope - These are the major initiatives taken by a strategic manager in a business environment The strategic management analyzes the major initiatives taken by the companies top management on behalf of owners ,involving resource's and performance in external environment . This has to do with the stake holders specifying the company's mission, vision and objectives with this information the strategic manager knows what exactly the company is aimed at achieving in spar departmental stores they have two major initiatives their aim is first and foremost food for freshness what this simply means is to make sure that the store is able to provide fresh produce to its customers products like vegetables, frozen food like chicken, fish, beef, generally food stuff etc. The second major initiative is customer care this initiative is very important to spar departmental store because without the customer there would be no existences of the store there must be customers to patronize them before their dreams become reality that's why the managers made sure that there is a very effective communication channel between the organization and its customers to ensure customer satisfaction the major communication tools put in place by the management team is a very simple but effective way to pass information or communicate which are (catalogue, radio, mail, telephone).After understanding the mission and vision of spar departmental stores The strategic managers now come up with development polices and plans to suite this initiative of the company in a technology driven environment.( Nag, R.; Hambrick, D. C.; Chen, M.-J 2007)

Suitability - this is another initiative that must be taken by the strategic managers to ensure that the overall rational of the strategy is suitable for the company or firm (spar departmental stores) this simply implies that whatever that is decided must be in favor of the firm to meet its target and mode of operation.

The initiatives or strategic plan has to address the mission or requirements of the company given by the stakeholders to meet expectation of its customers that is given out quality product, service, or results to its customers in the case of spar food for freshness and quality customer service.

It also has to reflect the organization's capabilities in its service delivery to its customers that's why spar has made sure that its number two mission is customer care and they made sure that they put in place facilities with information technology to enhance its product delivery to the consumers.

Recently a modern centralized camera was put in place to cub shrinkage in the company .shrinkage simply means loses that can be coursed by different factors for example theft, miscalculation this case the managers have to put something in place to cub or reduce this problem faced by spar the measure they took is i.t related setting up a centralized camera to monitor the whole branches here in Mauritius of course this cost a lot of money to put in place but first the manager has to strategize and plan to see if it makes economic sense by using information technology in a business environment will this be too expensive for the company to maintain or would this bring about a major boost in the company's revenue. In the case of spar departmental store it was a welcome development because after installing the facility the next week two people where cut in the act of shop lifting since then there has been an increase in sells and decrease in loses.

Evaluation tools: The strategic manager must use these evaluation tools to ensure the company's progress or success the major focus would be on the (swot analysis).

Strength, weakness, opportunity ,threat(SWOT)analysis

Balanced scorecard tools

Pest analysis

Competitive analysis

Supply chain analysis

Data quality management etc.

The swot analysis of spar multidepartment store will be broken down further below for more insight into the company's progress and short coming for better understanding before we go further into more details on the strategic managers' role in modern business environment information driven.

Strengths of spar departmental stores: first and foremost on the list are strong management, spar departmental stores has a very strong and effective management team which propels the organization to reach its potential by utilizing this strength and eliminating its weakness.

Weakness: one of the major weaknesses is work inefficiencies on the part of the cashier in the aspect of what they sweet hearting this simply means the cashier not take record of the goods bought by the customer due to the fact that the cashier knows him or her (customer)

Opportunities: spar stores are found all over the world spar is an international brand there by creating new opportunities to expand the business and increasing sells and also diversify their customer base.

Threats: there are other departmental stores this serves as a major threat to spar because they can entice customers away with their superior products and also international competitors are difficult to combat because they have competitive advantage and also they are numerous.

Feasibility - feasibility is concerned with whether the company has the resources required to implement the strategy .Resource include human, time, market, expertise, capital

Evaluation tools include:

Cash flow analysis and forecasting

Break-even analysis

Resource development analysis



The second initiative been taken by spar departmental store is as mentioned above strategic implementation and control the management team has to strategies effectively to meet up with the developing trends in the sense of meeting up to global demand to enable this and make it very effective information technology is one of the tools we use in effecting our implementation e.g. online news, online radio broadcasting, online magazines, etc. while in the case of control the resources brought in by our journalist, or any material we import is effectively checked by our editors. They go through the materials to be published in our media organization scrutinize it properly to make sure it meets up with the standard expected of us and also if its meet the regulation standards put in place by the Government.

These are some of the measures we put in place in spar multidepartment store to effect implementation and control



Change management


Our strategic management team in spar department store have been able to meet the expected goals ensuring that the company is information and technologically driven in this modern world of ours with the initiative mentioned above. (Nag, R.; Hambrick, D. C.; Chen, M.-J 2007)


In this section I will be dealing with only two major aspects that affect spar departmental stores in the area of managerial problems or core issues faced by the strategic manager. There are other problems faced by the strategic manager but these are the two major problems that affect the spar organization in this modern times if not critically checked and nipped in the bud can bring about serious loss to the company at large and this can only be tackled or solved by the information the strategic manager is getting from his internal sources and years of experiences in his field of work.

First and foremost is the issue of operation and control this has to do with improper recording of the two major issues facing spar departmental stores which are shrinkage and wastage, what does operation and control has to do with these two major problems faced by the strategic manager the definitions and further explanations of the two core problems would help in understanding of the problems.

Shrinkage: This simply means merchandise stolen or broken in other words the loss of goods through theft or breakage. For example there have been instances in spar departmental store where the manager does his stock take and discovers that there are lapses in his records for instance in his system the records shows 100jars of jam but when he does his stock take that is physical count there are only 90jars of jam in this case it means 10jars are missing now if the manager can't explain or find out where the other 10jars are it means there is shrinkage. Items broken which has not been recorded also add up to the shrinkage count.

Wastage: means an amount of goods that is lost or wasted example of wastage in spar departmental store let's say the there is a particular good or product that that wasn't bought and got spoilt this is an example of wastage therefore has to be recorded as waste also over stocking can lead to shrinkage and wastage. As I said in the paragraph above this two examples given has to do with operation and control which is not being done properly when such things happen like wastage the manager found out that the recording wasn't been done effectively thus the internal control procedures needs to be reinforced so as to reduced but the shrinkage and wastage problems facing spar departmental store.

I.T PROBLEM: The system must be able to update the company's stock the promotion price in this case would be used as a case study in spar departmental store let's say in the third week a promotion is starting if the manager places order In the second week and those take into account that promotion would be starting in the third week the system would place the normal orders and not the promotional orders. The orders has to be increased since it's a promotion week the system is a machine and can't function effectively without human interaction in this case to ensure accuracy the promotion order has to be placed a week before if not there would be a mistake or error in what the system is going to send as output. These is why as humans we have to constantly cross check what has been programmed in the system as default and make sure its suits the purpose for what it has programmed to do.

Solutions to these problems: the three major solutions that has put in place to checkmate these problems listed above are

The AS400 is a software produced by IBM this software is currently being used in spar departmental store because all information regarding sells for years, for different departments in particular, day to day sells, monthly sells, weekly sells, best seller products etc. all these records are kept safe for access in the future this helps to process information and also help to enhance operation and control. A strong server has also been put in place to back up the other servers of spar departmental store to ensure the safety of record information.

Setting up of the control room this is linked to the security of the stores to cub theft or stealing in the store. Spar has currently reinforced its security systems by installing new cameras I.e. video camera that streams live and sends the information to the control room in short this is an advanced system used to cub sweet hearting in the store.

Suggested orders: this is a new way of placing orders when spar departmental store places orders it reduces their stock holdings this reduces the shrinkage and wastage problem been faced by spar departmental store it also helps in reducing capital target to stocks, it also keeps accurate record of the goods and helps the manager when placing orders to order for what the store really needs in store.


Critically speaking the fountain of knowledge never runs dry with the information provided in the essay the spar organization really hopes that they have been able to drive home the point to cover the learning outcome mentioned above which is THE ROLE OF THE STRATEGIC MANAGER IN THE MODERN BUSINESS ENVIRONMENT FROM THE PERSPECTIVE OF INFORMATION IN THE STRATEGIC ENVIRONMENT (MULTIDEPARTMENTAL STORES SPAR). We also suggest that you the reader goes into more research to help you understand even more on the major topic is role of is in departmental stores.