Strategic Management Report
Musgrave is one of the leading companies in the distribution and sale of food, beverages and drugstore products operating in Ireland, Spain and United Kingdom. In the retail division, the business method of Musgrave remains the franchise model. The group currently operates in Ireland, Spain and United Kingdom. Customer loyalty is yet strength of the company which is attributed to higher level of customer orientation within the organization. Musgrave is a company dedicated to service and personal attention to clients. Honesty, integrity, consistency and transparency are required to be exhibited in all actions of the people who comprise Musgrave’s team. The culture of Musgrave is a key strength of the company since the culture of the organization is built around dedication and commitment. Linked to the culture of the company are the human resources of the organization which constitutes another major strength of the organization. The training plan of the company is based on the principle of continuous improvement. Consumers prefer to buy from Musgrave’s brands over other competing brands in Ireland, United Kingdom and Spain. Dependence of Musgrave only on Ireland, United Kingdom and Spain is a major weakness. The size of operations of Musgrave is quite small compared to other international retailers in grocery segment. Consumers have reported problems with the quality of products at Musgrave’s retail. Online sales currently comprises of only a very small segment of the total retail of the business. A major opportunity for Musgrave Group is to create leadership in non-food retail segment. Emerging middle-income groups in developing economies like Indonesia and India represent another major opportunity for Musgrave Group. Growing competition in United Kingdom’s and Spanish retail market and a likely price war is a major threat for Musgrave Group. Economic threat for Musgrave Group is the growing unemployment rate in United Kingdom.
Table of Contents
Company’s Strategic Position6
Musgrave is one of the leading companies in the distribution and sale of food, beverages and drugstore products operating in Ireland, Spain and United Kingdom. In Ireland, Musgrave is the largest grocery distributor. The operations of Musgrave are carried out under the retail establishments of Super Valu, Dicost Dialprix, and Cash & Carry wholesale Dialsur (Musgrave Group Annual Reports, 2011). In the retail division, the business method of Musgrave remains the franchise model and almost all of the supermarkets operated by the company operate as franchisees. There is a business-to-business division of Musgrave, as well, which focuses on the development of a quality service for the hotel, restaurant and independent food shops. The group currently operates in Ireland more than 445 shopping centers and 186 Supervalu outlets (Musgrave Group, 2012). In England, the group operates under the franchise Budgens Londis controls 2,000 stores throughout the region. The size of the group can be estimated from the fact that sales of the group in 2010 were EUR 4.6 billion and the group posted a profit before tax of 81 million Euros (Musgrave Group Annual Reports, 2011). On the other hand, wholesale (carried out under Cash & Carry Dialsur) achieved sales of 91 million Euros in 2010 (Musgrave Group, 2012). The paper evaluates the external and internal environment of Musgrave by utilizing models of strategic management. The impact of the changes in external environment on the competitiveness of Musgrave is also addressed in the paper. Internal Analysis
The strategic model used for evaluation of the internal environment of Musgrave Group is SWOT analysis. SWOT analysis is one of the most widely used...