Mercadona, strategic management essay

Strategic Management Plan Sample Paper Introduction An organization requires a missiona focus that will guide its operations, and a plan to accomplish the mission. Together, the plan and the mission are known as the strategy of the firm.

Mercadona, strategic management essay

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Compare the physical structure of Mercadona supermarkets with different supermarket chains size of the shops, location, parking, other elements… In one hand, Mercadona owns a network of supermarkets approximately, strategically located in commercial areas.

Such supermarkets are of a considerable size but they are located inside towns and cities. However, there are many of them located in commercial areas outside urban Mercadona.

In addition, Mercadona offers a free parking service for all its clients which may be an important incentive for most of them. On the other hand, when comparing with other national supermarket chains we can find some differences. Regarding the parking issue, it is more restrictive than those of Mercadona: Moreover, we can compare Mercadona with other kind of supermarkets outside Spain.

The French model, for instance, is in general based on big stores outside cities and they are surrounded by high extensions of parking. In such supermarkets, customers can buy anything, from food to technological engines. Nevertheless, the Mercadona model is more traditional.

German supermarkets are usually located inside cities and they are small shops which only offer food, generally cheap. Moreover, German supermarkets do not spend in marketing or in parking services.

Try to do an internal analysis using the value chain tool. This department seeks to promote loyalty among customers by having efficient employees that helps people buying. The operations carried out work for the distribution of the products from suppliers to supermarkets this is only made at night.

Mercadona, strategic management essay

Most of its suppliers work exclusively for the firm, ensuring them long term contracts. Identify key resources and capabilities of Mercadona.

Mercadona, strategic management essay

We can find 7 important competitive advantages: In addition, Mercadona managers have a strong power towards suppliers, which may lead them to convince suppliers to reduce costs as possible. In addition, the product assortment of Mercadona is not very extensive, they sell its distributors brands and other known brands.

This implies that consumers have fewer products to choose and reduces costs. Moreover, Mercadona has built a strong brand reputation by offering personalized customer service and because they help develop products to be environmentally good.

The distribution system of the firm is also one of its competitive advantages because of its short transportation and stocking time in order to obtain high quality. This may in turn, position Mercadona as the strongest party. Also it is important to take into account the fact that there are no intermediaries, Mercadona buys directly to its suppliers.

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Mercadona focuses on long term profitability rather than short ter. Mercadona demonstrates that it is not necessary to match the labor supply to the variable store traffic.

How does the continuous improvement system work and how affects the implementation of the strategy? Mercadona is such a successful firm due to its low prices, its product assortment, its relationships with suppliers and its labor force efficiency.

To achieve such position Mercadona is continuously improving its system through two components, which are information and a focus on product and process development. The former, is an important component for the firm as the continuous flow of information of the value chain helps to make everything work properly and to correct the imperfections that may arise, as the firm focuses on long term profitability.

Therefore, labor is the most important asset and information is useful in order to maximize it. The latter, consists on implementing small and daily changes and improvements in order to increase efficiency and quality, by adapting slowly to small necessities that arise continuously.

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An example of this is the case of Mercadona when it convinced a hand cream supplier to change its packaging in order to reduce costs by 15 cents. Mercadona does less in the sense that it:Theoretical Approaches to Strategic Management Introduction Strategic management involves the construction and implementation of major aims and objectives taken by an organisations managers to represent the views of the owners.

Log into Facebook to start sharing and connecting with your friends, family, and people you know. - Strategic management and decision making Strategic management is a disciplined effort or control to make necessary decisions that have an effect on a business or an organization; the aim of strategic management is mainly to develop new, innovative or diverse ideas and opportunities for potential or development, and facilitates or assists .

Strategic Management represents a set of managerial decisions as well as actions taken at the highest managerial level which lead to the development of effective strategies and plans that help achieve an organization's objectives and prepare the organization to face the challenges of today's dynamic business environment, as well as stand prepared to .

Mercadona, Strategic Management Essay Sample. 1. Compare the physical structure of Mercadona supermarkets with different supermarket chains (size of the shops, location, parking, other elements) In one hand, Mercadona owns a network of supermarkets approximately, strategically located in commercial areas.

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