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As mentioned by Bounteousness and Fleisher (2008), the most common considerations of a situational analysis include the particular sector and its competitive aspects as well s the organization’s Internal situation and the competitive position. Proctor (2000), Thomson and Fuller (2010), Keenan and Green (2005), and Penn (2008) have all discussed some of the most common analysis techniques used in internal and external analysis of an organization.
Some of the techniques discussed by the venous authors include SOOT analysis, PESTLE analysis, DEEPEST anally;s, PEST analysis and Michael Porter five forces analysis among others. The objective of this report Is to conduct an Internal and external analysis off UK based retailer named Sad. To achieve the outlined objective, an overview of Sad Is first presented before conducting an internal and external analysis of the organization. Overview of Sad Sad is a British based chain of supermarket that sells general merchandise, electronics, financial services, clothing as well as food among others. The supermarket chain is owned by American based retailer Wall-Mart which was named Forbes (2012) as the world’s largest retailer. In the perspective of UK retail market, Sad Is the second largest supermarket In terms of market share with the market leader being Tests. As of December 2010, the retailer’s share of the entire UK grocery market was said to be 16. % (Sixth Sense, 201 0). Currently, Sad has 170,000 dedicated employees in more than 376 superstores and supermarkets across United Kingdom. Sad records more than 1 million shoppers on a weekly basis with an average yearly turnover of 20 billion pounds (Sad, 2012). Sad organization structure Is that of hierarchical type. Sad hierarchical structure has many levels. Each level Is controlled by one person and Instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure.
If there was problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where It supported to be (Sad, 2012). INTERNAL AND EXTERNAL ANALYSIS OF SAD 5 In the perspective of Sad’s human resource polices, the company’s recruitment system is designed to seek and select the best possible individual for the vacant jobs in order to ensure that the right person who will help the organization achieve its objective is employed.
Training sis continuous undertaking at Sad as senior management employees as well as Junior management employees undergo training n different departments of the business in order to ensure that they keep a brace with changes happening In the retail sector. In Dalton, Incentives In form of Internal and External Analysis 3. 1 Internal Analysis An internal analysis as discussed by Cow et al. (2011) examines a given organization’s operations with its strengths and weaknesses. In that perspective Porter’s value chain analysis will be used to conduct Sad’s internal analysis.
A value chain analysis as describes different operations that take place in a given organization in perspective of the competitive position of the given organization (Seeker, 2009). According to Bounteousness and Fleisher, (2008) most organizations mainly adopt differentiation or cost leadership strategies in order to ensure that they have a competitive advantage in the market place. 3. 1. 1 Inbound Logistics While compared to other competitors, Sad is among the cheapest retailers in the UK (Reuben, 2011).