Strategic Alignment in Organizations Assignment

Strategic Management Assignment

Introduction-Strategic Management

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Task 2:

Critical evaluation of relationship between the organisation’s, corporate, business and operational strategies

A strategy is the course of action that a corporation takes to accomplish a goal. An aim is a quantifiable step in achieving a plan. However, objectives cannot give the organisation with a wide vision; this is the responsibility of the mission statement and the vision linked with it. The strategy of an organisation represents the methods and techniques through which it chooses to accomplish objectives and goals. The present pandemic crisis necessitates the use of innovative technologies, like as drones, for efficient supply chain management by Morrisons. A strategy is indeed the primary, comprehensive, and externally focused notion of how a company intends to accomplish its goals (Munson, Tiropanis, and Lowe, 2017). Making a plan and implementing it are two different processes. Strategy is the process of selecting what to do, while strategy execution is implementing what has already been planned. Specifically, a company's business strategy relates to how it intends to accomplish its goals in a certain industry. As a result, the organization's, corporate, business, and operational strategies are intertwined.

Scope of the change project: Drones will help Morrison's online business function more efficiently because of the current pandemic condition, which necessitates the use of drones. Morrison's will indeed be able to offer speedier delivery as a result of drone delivery projects, giving the company an edge over other grocery rivals.

Aim of the change project: As a result of the current pandemic, Morrisons' supply chain system has to be improved in order for the company to maintain its operations.

Application of strategic models and tools to recommend strategic options

The Porter's Five Forces Model is used for strategic analysis.

Using Porter's five forces to undertake scenario evaluations for Morrisons Plc., examine the current market situation and collect and evaluate the factors that impact an industry.

Buyer power: shoppers will compare prices with other grocery chains; switching is simple, and buyers are constantly looking for the best deal (Morrison, 2021). As part of Morrisons' pricing strategy to keep prices low while still satisfying consumers, hundreds of items are on sale at steep discounts, including items marked down to closeout prices or on special offers like buy one get one free or half price. Buyer power is moderate in this situation.

Supplier power: Reduce the influence of suppliers by using Morrison's own production facilities and farms. To keep prices low, it is important to have strong working relationships with vendors. In spite of this, there is still a risk.

Rivalry: The UK's retail sector is oligopolistic; this business is very competitive; the "big 4" have already consolidated control of the majority of markets throughout the nation, including “Tesco”, “Sainsbury's”, ASDA (owned by Wal-Mart in America), Sainsbury's, and Morrisons (RASHID, 2020). Tesco and ASDA account for almost half of the market share because of their size and international scope. Rivalries are on the rise.

Substitution: currently, independent and franchised grocers, such as londis and budgens, may pose a threat; it is a matter of convenience for local shoppers. Several of the company's own brand goods may be substituted for other brands because of their lower pricing. Morrisons, for example, has substituted pig sausage rolls from its own-built factory with smaller, less flavourful sausage rolls, even though the selling price has remained the same. Mid-level substitutability.

New Entrants: ASDA, controlled by Americans, has entered the UK retail industry as a worldwide rival. Lidl, a German supermarket chain, has built a number of outlets in the UK. Only 2% of the market share belongs to Lidl, making the danger minor at the time(Steenkamp, 2018). However, also there are internal competitions, cooperative aims to grow their company by opening additional stores to win market share, and Waitrose do so. Morrisons has a significant risk of new entrants.

The SWOT analysis summarises the important problems originating from a review of the business environment and an organization's capabilities to get an entire impression of its strategic position.

Strengths: Morrisons stands apart from other supermarkets in the UK due to its emphasis on fresh food. Deliveries are made quickly since it has its own fresh food distribution centres (Parker et al., 2017). The number of visitors has steadily climbed over the last four years as a result of the company's customer service focus. By offering lower costs than any other supermarket chain, Morrisons has been a popular choice for many customers.

Weakness: Due to the fact that it is the fourth largest supermarket, that does not have an internet shopping system, which is a major drawback for customers. Almost all of Morrisons' shops are huge or mega supermarkets, as well as several in rural locations. Buyers have a hard time getting in touch with them (Simms et al., 2020). Non-food items, such as electronics and clothing, are lacking in Morrisons. Customers will be able to shop in competing supermarkets if they so want.

Opportunities: Morrisons should concentrate on non-food goods and provide a wide choice of products. This is a fantastic chance for the firm to grow its operations and provide new items to customers.

Threats: Many packaging goods made by Morrisons create additional garbage that must be disposed of in landfills. Rival stores, such as Tesco Express and Sainsbury's Local, are becoming more prevalent.

Evaluate strategic options for an organisation

A strategy is a detailed plan for achieving the organization's objectives over a certain time period. It is always geared toward the accomplishment of a certain objective or aim. Additionally, it is always long-term. Strategic choices are goal-directed alternatives available to an organisation in the face of an unpredictable external environment. The management has not only the option, but also the duty to pick the best available options. It should be done in light of the organization's objectives, requirements, resources, vision, and other comparable factors.

Several critical approaches for the production of strategic choices include the following:

Utilization of the Ansoff Matrix

The Ansoff matrix provides strategic alternatives for an organization's development. And what modifications/additions are required to the present product line in order to expand. It considers new and current markets, new and existing goods, and the inherent risks associated with each.

Utilization of the Innovation Matrix

The innovation matrix is a structured approach to promoting and managing innovation inside a business. It aids in the development of methods for simplifying and designing ways for successful thinking. This may be used as a catalyst for invention.

Porter's Generic Strategies

Porter's Generic Strategies provides a framework for planning the organization's future orientation. It makes recommendations for gaining a competitive edge in the market. This tool provides a business with a strategy for gaining an advantage over the competition by stealing sales from them and achieving market leadership. Porter's generic strategies advocate for the use of three critical strategic options: Cost Leadership, Differentiation, and Focus. These three alternatives are designed to help a business get a competitive edge and develop as a leader.

Evaluation of critical success factors/assumptions that underpin the strategic options

Critical success factors of the change project:

Improve supply chain management by enabling quicker delivery at a lower cost by including Drone delivery for Morrisons into the change project. For the sake of providing contactless delivery of items to clients, the firm is undertaking a transformation initiative that seeks to reduce the organization's dependence on human labour.

Recommendation of a strategic option and accompanying business objectives

UK retail enterprises have been severely affected by the pandemic Corona virus outbreak. "Feeding the people" in response to the coronavirus epidemic halved Morrison's profitability in 2020, which the supermarket's CEO called a badge of honour since increased revenue advantages were cancelled out by extra costs. Potts, Morrison's CEO, recognised the pandemic's $290 million price tag, which included a compensation to workers and store staff as well as the decision to repay $230 million toward the redemption of business rates. Morrisons' supply chain has to be restructured in order to adapt to the changing nature of its company (RASHID, 2020). The supply chain network is a method of relationships between corporations or business organisations that ultimately provide goods and services to customers. It is imperative that this network and its constituent processes be controlled to ensure the seamless product delivery and information from raw materials to end-users throughout many intermediary companies, in order to enhance the quality that is critical to the sustainability and efficiency of companies on the market (Jones and Comfort, 2018). The present pandemic crisis necessitates the use of innovative technologies, including as drones, to improve supply chain management. Morrisons' supply chain system must be enhanced as a consequence of the current pandemic in order for the firm to continue its operations.

Identification of the change team or agents involved in the project

Morrisons' collaboration is critical to the success of the transformation initiative. Change occurs as a result of individuals making adjustments to their thoughts, feelings, and behaviours. A Change agent's primary responsibility is to find ways to get people to adapt. Because of this, change agents are responsible for describing and encouraging the change. When working as an associate, one creates programmes that help people to achieve changes (Hagberg and Fuentes, 2018). Assessors for change are both useful and inventive. By helping others understand the issue from the perspective of others and pursue common goals, change agents manage conflict. They aim to improve communication and reduce conflict among many stakeholders so that they can work together to execute changes.

Change agents for the programme of incorporating drones include the company's CFO, who is responsible for controlling and budgeting the company's financial outlay as well as managing cash flow in the supply chain process (Simms et al., 2020). Since Morrisons will be relying on its suppliers and distributors to deliver the drones, they are also key change agents. Morrisons' change project includes staff who are normally assigned to supervise the process, as well as consultants from outside the company.

Discussion of the extent of organisational readiness for the change

As a result of the current pandemic, Morrisons' supply change system has been severely affected. Morrisons' promise to pay suppliers to support them directly during the whole outbreak costs the company £50 million (Morrison and Marcotte, 2019). For Morrisons, a pledge to pay suppliers instantly throughout the whole coronavirus outbreak cost the grocer £50 million in losses. Due to the lockout, Morrisons' profit margin has been severely impacted, thus the company wants to invest in technical advancements to speed up its supply chain operations. As the name implies, WM Morrison Stores plc operates as Morrisons, the UK's fourth biggest grocery business. As a result, the company will have to implement a transformation strategy for supply chain management in order to avoid a large loss of earnings in 2020.

It is also important for the firm to remain constant in the UK retail market, which is why they want to use innovative technologies such as Drone delivery (Jones and Comfort, 2018). By introducing drone deliveries, Morrisons will be able to further communicate its position as a food manufacturer backed by its vertically integrated supply chain, a unique selling feature. In addition, good leadership by the organization's management is critical to the success of a change project's communication efforts. One of Morrisons' major advantages is that it has a large variety of suppliers to provide its goods, which makes it easier for the firm to successfully implement change management. Consequently, David Potts further use the change management model to design the change project for its efficient execution. Morrisons, the fourth-largest company in the United Kingdom, is well-equipped to adapt to changes in the supply chain.

Discussion of obstacles or resistance to change

An significant addition to the idea of change management is “Lewin's Force Field Model”, which aims to make sure a corporation adapts to its operational environment. The model depicts individuals who want to change and/or restrict the forces that drive. The model is used to examine both the positive and negative influences that contribute to transformation. When it comes to using drones in the supply chain, there are several challenges and impediments that must be overcome first before the technology can be used to its fullest potential.

Driving Force:

1. Managing stock and inventory: Drones may be used to check on the stock of goods at warehouses. If a product is low on the shelf, it will draw in new customers. In addition, they are better at locking things than humans are (Pantano et al., 2020). Warehouse workers can swiftly locate and distribute goods owing to drones that are designed to recognise the structure of the warehouse floor. They're better at locking things than we are.
2. Consumer Behaviour Research: Drones play a significant role in conducting consumer behaviour research. Using drones within a store to analyse customer behaviour and mobility is an effective way to get insight into how people buy. The data may be utilised to schedule and store things more efficiently, enhancing the user experience.

III. Increased Logistics Efficiency: Drone navigational data must be updated in real time to enable them to travel more successfully than humans to a designated place (LeMay et al., 2017). It is also possible to use route construction simulators to plan ideal flying routes and times, significantly reducing future flight gaps.

Forces of Restraint:

1. I. Government regulation and Aviation Permits: Under UK Civil Aviation Authority-regulated regulations, market drones (listed below 25kg) must be flown at a height of 400 feet (120 metres) (Seharwat, 2020). For a +250g drone to be used in an integrated environment, some pilot standards must be followed, as well. Because of this, Morrisons would have to wait longer for government approval, that is one of the difficulties they will face.
2. High cost of Drones: Due to drone technology's inexperience, the cost of drones is quite high. Millions of dollars might be at stake if drones do harm to people. In the long run, drone delivery will cost less than traditional delivery methods, making it more expensive.

III. Theft and Misidentification: While Morrisons can utilize the drone effectively to enhance supply chain management, it has significant downsides in terms of theft and misidentification. In the past, traditional delivery services relied on delivery men and women who would deliver the product to the recipient or deposit the package in a mailbox. Drones, on the other hand, are unable to provide this ease since they can only drop packages in an area that is reasonably open (Companik, Gravier and Farris II, 2018). Thus, there is a risk of theft and misidentification when this technology is used.

Analysis of the existing organisational culture

It is obvious that implementing new change is difficult, and that the culture of the Organisation has a substantial impact on the success of such initiatives. Key behaviors, ideas, and criteria form the foundation of Morrisons' fundamental values. Commitment, equality, quality, collaboration, enthusiasm, honesty, and leadership are some of the most important values in the world (Pantano et al., 2020). Employees at Morrisons are encouraged to embrace and improve their behavior and accept change by the company's management. Consequently, there would be no problem with the introduction of new technologies because of the high level of trust and communication across the whole Organisation.

Identification of key resistance and a plan to minimize the risks

As part of Morrisons operations, the company has implemented a supply chain management system that uses drones for deliveries. As a result, the company has to deal with a wide range of challenges, including high implementation costs, weather concerns (such as snow), urban distribution, theft and misidentification, and so on and so forth. As a result, the organisation has suffered tremendously in both the domestic and foreign markets owing to the closure of its company after the outbreak of COVID-19. In spite of this, the company will suffer a substantial setback in its business management owing to the lockdown and social isolation protocols (Larsson et al., 2018). Consequently, for Morrisons' organisational supply chain management system, the implementation of the drone solution has been agreed upon. Implementation costs, regulations and climate change difficulties are just a few of the challenges that come with this plan.

A change management strategy will be implemented by Morrisons' management team and organization's leadership in this regard. While implementing a supply chain management system change to reduce risks and concerns, the Organisation discovered that several regulatory regulations had to be taken into account. In this regard, the company has begun the process of requesting aviation permission from the government in order to begin their change management strategy (Vikesland et al., 2017). As a result, Morrisons has spent a significant amount of effort into expanding their profitability of the company and sales in both local and foreign markets. By taking advantage of this, the Organisation can afford the expense of integrating drone service into its culture. Within the organization's change management strategy, there might be minimal mitigation.

Action Plan

(Source: As created by author)

Risk Monitoring and Control

The risks concerning the implementation of the project will be monitored by conducting regular meetings as well as group conferences, milestone checks. The following steps should be followed to control risk in the organization:

• Reduce the likelihood of an accident or harm occurring. Control measures and risk assessments may significantly minimize or even eliminate workplace accidents and injuries when they are included into the workplace's original design and health and safety policies.
• Efficacy evaluations of control methods. Reassessing risks on a regular basis enables one to establish whether the management strategies implemented have been successful in decreasing or eliminating the risks or if they need to be reconsidered.
• Meet the legal duties. According to the laws of the country and the kind of company and workplace, one may be legally required to identify risks and apply control measures. Failing to do so may result in hefty penalties and imprisonment for both the company and the individual, depending on the severity, the level of previous knowledge, and the number of victims of the risk factor.

Task 3:

Prior to the commencement of the change process, a change model may assist identify possible areas of resistance and apply tactics to lessen or remove resistance. The ability to develop an effective communication plan is one of the many advantages of using a change model. Organizations may learn about just the best techniques to utilise in a change project by learning about the many change management models. To manage Morrisons' organisational change, approaches like Kotter's change model and Lewin's change model might be used. However, Kotter's change model is the best fit for Morrisons.

The Kotter Eight-Step Model for Change

1. “Increasing Urgency”: Because Morrisons' goods delivery service has had significant setbacks, an urgent or emergency situation has arisen inside the company. The level of urgency has risen as a result of the decreased focus on this issue (Kuo and Chen, 2019). As a result, the organization's management and leadership team have opted to develop a change management approach to include drones into the company's supply chain management system. Consumers who have placed online orders with Morrisons will indeed be able to get their products faster as a result of this move.

III. “Development of the Vision”: A budget for the costs of introducing drone facilities in Morrisons' organisational culture must be prepared by the organization's management and leadership team before any modifications to that culture can take place. Moreover, Morrisons has to improve its internal management system by adding innovative hardware and software, such as device42, to store a great quantity of data about the whole process in this change management process (Van Duong, Asahina and Wang, 2019). Management in the organisation will be able to track their success on a daily basis using this tool.

1. “Communication for Buy-in”:Morrisons must also build and use an efficient communication strategy in order to properly manage the complete change management process inside the organization's culture. Change management leaders will be able to reach out to their whole team and share their experiences and most important instructions so that this creative change inside the organization's culture may be successfully implemented (Kuo and Chen, 2019). Another important aspect of Morrisons' change management strategy is its reliance on electronic means of communication like email and text messaging (SMS). Organizations may effectively manage their change management processes this way.
2. “Empowerment Action”: Morrisons' leadership and management team also need to execute a thorough training programme for their staff after building an effective team and assigning clear tasks and duties to each member of the team. This aids the organization's ability to handle change more effectively (Guan, 2018). In addition, the organisation must adapt its organisational structure to embrace and execute the anticipated changes in Morrisons' business environment, which need modifications in the organization's structure. The organization would be able to effectively construct its whole change management procedure in order to prominently execute the drone service as a result of this initiative.
3. VI. “Creation of Short-Term Wins”: Encourage and empower the organization's workers so that they may effectively carry out their responsibilities and contribute to the organization's growth. Overall, the organization's structure is a crucial method for supporting personnel involved in the change management system operations. In addition, the management system of the Organisation must incorporate short-term objectives in order to effectively encourage workers and the whole management system. This sort of short-term objective completion and achievement is a significant incentive for the important persons like the operation manager, project manager, the head of Morrisons' R&D department, and the staff throughout their practise for obtaining the adjustments.

VII. “Consolidating Gains”: In this manner, after the implementation of an efficient budget plan, prominent communication system, and development of the organisational organization and management system, the organization's leadership and management team must identify and analyse the risks associated with installing a drone service inside Morrisons' organisational culture.

VII. “Anchoring Change in the Corporate Culture”: When it comes to making changes to Morrisons' organisational culture, this fast change management technique may be used to accomplish such changes. During the change management process, the Morrisons management team, as well as the organization's stakeholders and important personnel, have all played vital roles in helping the company's supply chain management system improve (Kuo and Chen, 2019). Furthermore, the financial requirements of the organization's executive team have been met so that the cost of drone services may be readily afforded. This sophisticated robotics distribution approach, on the other hand, has taken into account all UK government regulations and the permission of the UK's aviation sector throughout its implementation.

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