Key External Environment Analysis

Topics: Organic food, Strategic management, Recession Pages: 9 (2263 words) Published: March 21, 2009

1. EXECUTIVE SUMMARY-------------------------------------------------------------3 2. INTRODUCTION------------------------------------------------------------------------4 3. PESTLE ANALYSIS-------------------------------------------------------------------5 4. PORTER’S FIVE FORCES-----------------------------------------------------------7 5. WAITROSE STRATEGY--------------------------------------------------------------9 6. IMPLICATIONS OF CHANGES FOR WAITROSE PLANNING-----------10 7. CONCLUSION---------------------------------------------------------------------------11 8. REFERENCES---------------------------------------------------------------------------11


The main objective of this paper is to analyze changes and their implications for Waitrose and comment on planning strategies to be adopted and applied for the improvement of the company’s performance. To achieve this objective, two models namely PESTLE and Porter’s Five Forces have been applied. The main issues identified in this paper include the following: ➢ The advent of the Policy planning guidance

➢ Health/Environmental standards and organic food
➢ Corporate social responsibility
➢ Marketing and online shopping
➢ Economic recession and Waitrose’s strategies
➢ Competition among firms
The analysis has shown that Waitrose is strategically planning in order to face the challenges of the current political and economic setbacks. However, it is notable that Waitrose has made progress in dealing with some issues such as the enhancement of product quality and services. Finally this paper concludes that Waitrose is taking steps in fulfilling its long term objectives and the company is determined to meet the consumers’ expectations. 1.0 Introduction

This paper discusses external factors affecting Waitrose and analyzes the changes and their implications in strategic planning.

Waitrose was founded by Wallace Waite, Arthur Rose and David Taylor. In the year 1906 Taylor left the firm, the company named “Waitrose” was formed. The company was later acquired by John Lewis Partnership in 1937. After the acquisition, Waitrose became a specialist Supermarket, having 197 branches as of December 2008. Waitrose is known for providing high quality products and it targets the elite. (Waitrose, 2008) Waitrose currently has a 4% share of the food market, and additionally an 18% and 10% share of the organic food and fish markets respectively. Waitrose offers services such as Entertainment based products, which are foods made for special occasions and also a range of other services including home delivery, free glass loan and fish kettle service. Waitrose supplies dial-up and broadband Internet connections from which all profits are donated to charity as part of the company’s social responsibility strategy. Waitrose branches are mainly located in the south-east of England and in London areas, although the company is now expanding in the northern parts of England. Waitrose has expanded its operations and improved profits, with a long term goal of having 400 branches across the UK by 2017 and increasing the turn over from GBP 3.9 billion to GBP 8 billion. (Waitrose analysis, 2009)

2.0 Analysis of external factors
There are several factors affecting the working culture and environment of Waitrose. These factors are categorized and analyzed by the use of the following analytical models: (Grant, 2007) ➢ PESTLE ANALYSIS

3.0 Pestle Analysis
The focus is on the key issues identified; however there are many other factors in this regard. 3.1 Political

Waitrose has two political environments; one in the United Kingdom and the other in South Africa. The governments are stable in the UK and in South Africa but they are different in their set up. South Africa was selected by Waitrose to outsource its fruits and vegetables. In order to maintain the...

References: 1. (2002) Environmental fit analysis. [Online]
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2. (2004) Waitrose: Internet strategy. [Online]
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3. Citywire (1999) Waitrose cuts prices as credit crunch bites. [Online]
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4. Esom, S. (2005) The UK supermarket industry: A view from Waitrose. Waitrose
6. Lynch, D. (2006), Corporate Strategy (4th ed). FT Prentice Hall
8. Waitrose (2008) Corporate social responsibility report 2008. [Online]
Available from:
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