Formulation of Strategy for Spar Zambia

Topics: Supply chain management, Strategic management, Supply chain Pages: 17 (4223 words) Published: March 6, 2012
EBU 4008

Module: Supply Chain Strategy

Assignment: Strategy Development Report

Student No.: 1110434
Submitted in partial fulfillment of the requirement for the degree of MSc in Logistics and Supply Chain Management.

University of Bolton


2. Structure of the report4
3. Organization and supply chain background5
4.Review of Business Strategy5
4.1Market Penetration5
4.2 Strategic alliances6
4.3 SPAR: expansion and growth.6
4.4 System.7
4.5 Market Research7
4.6Supply Chain7
5. PESTEL ANALYSIS and SWOT analysis8
5.2 SWOT Analysis11
5. Porters five forces13
5.1Barriers to entry13
5.2 Threat of substitutes14
5.3 Bargaining power of customers14
5.4 Bargaining power of suppliers14
5.5 Rivalry among the existing players14
6. Review of SPAR’s customer requirements15
6.1 Order qualifiers15
6.2 Order winners15
7. Performance review of SPAR Zambia’s competitor supply chains16
7.1 Shoprite background and operations.16
7.2 Shoprite weaknesses17
7.3 Shoprite Supply Chain17
7.4 Corporate Social Responsibility (CSR)17
7.5 Competing for market share17
7.6 Outsourcing18
8. SPAR’s current supply chain18
8.1 Location of operations18
8.2 Capacity of operations18
8.3 Transportation arrangements including use of 3PLs19
8.4 Key skills, knowledge and experience of supply chain personnel19
8.5 Main supply chain information systems used20
8.6 Supply Chain Performance measures20
9. Recommendations for a revised supply chain strategy21
9.1 Location of operations21
9.2 Capacity of operations21
9.3 Transportation arrangements including use of 3PLs22
9.4 Key skills, knowledge and experience of supply chain personnel22
9.5 Main supply chain information systems use22
9.6 Supply Chain Performance measures22
10. Conclusion23
11. Abbreviations24
12. References25

1. Introduction
The purpose of the report is to:
a. Develop and outline supply chain strategy and implementation of an affective supply chain strategy to managing quality, value chain and distribution strategies, and strategic alliances with stakeholders. b. Utilize the tools and techniques relevant to Supply Chain Strategy to outline the supply chain strategy for SPAR Zambia. 2. Structure of the report

2.1.Organization and supply chain background
2.1.2SPAR business Strategy
2.1.3Strategic tools used by SPAR Zambia
ii) SWOT analysis
2.1.4Review of SPAR’s competitive forces using Porter’s five forces
2.1.5SPAR current supply Chain
2.1.6 Review of SPAR’s customer requirements
2.1.7 Performance review of SPAR Zambia’s competitor supply chains 2.1.8 SPAR’s current supply chain
2.1.9 Recommendations for a revised supply chain strategy

3. Organization and supply chain background
SPAR Zambia Limited is a joint venture established between Innscor International of Zimbabwe and Platinum Gold Zambia Limited. The company registered in 2003 and commenced trading in December the same year with the first store being opened at Arcades Shopping Mall in Lusaka.

Source: Spar
The main competitors of SPAR Zambia are: Shoprite Checkers and Pick N Pay. 4. Review of Business Strategy

The selection of a business strategy involves answering the strategic question ‘How are we going to compete in this particular business area?’
Source: Lysons et al (2006)
SPAR Zambia answers this question by employing the following business strategies: 5.1 Market Penetration

Spar Zambia has set in place an ambitious plan to grow the SPAR brand in
Zambia, and become the benchmark by which their competition is measured.
The Arcades store has been re-launched and acts as a flagship for SPAR
brand in Zambia. SPAR Zambia’s key focus is on quality and service. The aim
in 2011 is to widen the range of products...

References: 7) Harrison Allan and Remko van Hoek,( 2008), Logistics Management and Strategy
Pearson Education, UK
8) Hannagan, Tim,( 2005),Management concepts and practices, Pearson
Education, UK
9) Kenneth Lysons and Brian Farrington, (2006), Purchasing and Supply Chain
Management, Pearson Education, UK
10) The Zambia Marketer issue:q306 01/0/2006
11) Graves S and Longowitz N (1993) ‘’Innovative Productivity and Returns to scale in the Pharmaceutical Industry’’ Strategic Management journal
18) Hertz and Alfredsson (2003)
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