Organizational Behaviour Audit Report

pages Pages: 4word Words: 890

Question :

Code: MBALN707


You are required to write a business plan which will provide direction and increase the probability for success of a business idea within the today contemporary and very competitive market.

Learning Outcomes

1) Build a business plan by designing a strategic plan, conduct a feasibility analysis, understand franchising and how to buy an existing business.

2) Develop a marketing plan and how to use e-commerce, create a successful financial plan.

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Answer :

Entrepreneurship and SMEs-

Part I 

The chosen company in this context is Highland Mart- a supermarket. It is mainly  a grocery chain store that  deals with food processing items  and daily market chains.


The mission of this store is to become largest grocery chain  in  Greenwich, London. The main vision of the store is to make a rigid customer base by providing goods to the customers at cheaper price.


The vision is also to procure a sustainable approach for the business and supporting the potential of the business through ensuring customer acquisition largely.

Core Values:

The core values of the business rely in generating a integral and honest business principle for maintaining economic viability of the business. The business mainly depends on self-integrity approach for maintaining the customer base and it is the prime value on which the business operational activities (Ciravegna, Lopezn and Kundu, 2014). The core values is to create high margin of profit through creation of an authentic base for customer satisfaction.

Part II- 


The specific objectives of Highland Mart  is to create an effective market plan for  aligning the  organizational framework of the company  with the market  needs in  order to  propose a successful business  plan  for the organization (Garengo and Sharma, 2014). It also adheres to the integration of common perspectives to the members of the organization in order to focus consistently in all the specific demands of the organization to bore fruitful results. The SMART objectives are given as follows:    


The specific objective of the organizational perspective is to achieve a particular set of standards for being precise of the objectives. The company needs to segregate the analysis as per market demands in which the areas of performance needs to be evaluated and grouped.


This section deals with quantifying the group of objectives of a firm to create a minimum of 25% return on capital deployment for the business.
Achievable- It specifies the areas of operation that can be attempted by the organization which includes customer segregation along with achievement of a market base for utmost sustainability of the business firm (Ngamroo and Karaipoom, 2014). For e.g. the business is targeting to achieve a minimum of 30% market share in the global grocery chain by the end of 2018.


The realistic approach of the business includes the resource constraints for business viability of the organization. The resources include work force, machineries and materials for the ease of productivity of the organization.


It defines the specific period from the beginning to the end of the project within which the organization can achieve the specific objectives. It is estimated that within the end of 2019, the business will be able to achieve a global customer base.


The products of the abovementioned business- Highland Mart include grocery items, jewellery, food products and other household items for daily use of the customers. The customer acquisition policy of the business depends on the product differentiation and product segregation aspect, which includes displaying a variety of products to the customer for achieving the target market. It also includes Kitchenware items, pet supplies and pharmaceutical products for
gaining a competitive advantage in the market

PESTLE Analysis:

In order to acquire an in-depth understanding of Highland Mart as an international retailer of multiple platforms, their current scenario need to be analyzed by the analytical framework of PESTLE.

Political Factors- As Highland Mart is an international retail that operates within a global spectrum, the global political factors heavily influence the performance statistics of it. These governing factors include legislative acts, tax rates and the proportion of stability of the respective country it is operating in. Since there exists a significant turmoil and instability in the global financial scenario, the respective governments encourage retailers to develop job opportunities for the domestic segment of population (Barn et al. 2014). This encouragement comes with the reciprocal advantage of increasing demands and diverse workforce.

Economical Factors- This factors are one of the cardinal ones since it encourages the consolidation of profits, demands and leverage costs. Highland Mart need to procure a pedantic awareness about the alteration of policies (such as taxation) since it imparts a considerable impact on the financial accessibility. It is imperative to admit on that note, that Highland Mart owes a substantial market share from the UK government as it is spreading their concern globally.

Social Factors- In order to cope with some recent social changes majority of the customers in UK is paving their interest towards one-step bulk shopping. In response to this leading trend, Highland Mart is dedicated to expand their offerings by increasing the number of non-food items. The inclinations and specific requirements of the customers are considered to be influenced mainly by social conditioning. Highland Mart needs to develop the capability to incorporate the abrupt changes within the infrastructure (Chelladurai et al. 2017).

Technological Factors- The emerging scene of growing technological expertise and customer expectations have brought several new possibilities for Highland Mart. They have switched to the online mode of services with the basic amenity of home delivery. Furthermore, they have installed several self-service checkout nodes in order to facilitate the customers with convenience while reducing the labor costs substantially. Furthermore, they have invested a considerable sum of money in order to enhance the energy efficiency while reduce the carbon emissions significantly (Ciravegna et al. 2014).

Legal Factors- A recent amendment of the legislative acts imposed in the respective sector significantly altered the prevalent policies of changing prices and demanding payments from the suppliers and other stakeholders. On that note, as a reciprocal response, Highland Mart incurred considerable price reductions in order to fuel their purchasing in accordance with their investment. 

Environmental Factors- The management of Highland Mart seems adamant to reduce the amount of carbon emissions considerably in order to cater the benefit of the society. Furthermore, they seem dedicated to minimize the rate domestic and corporal waste in order to increase the social conscience among the subordinates and the customers (Foster and Wass, 2013).     

Part III- 

Business Differentiation: 

Differentiation is a popular marketing adage that is extensively used to develop and convey promotional objectives in order to distinguish the offerings of a certain enterprise from the offerings of their potential adversaries. Differentiation is an effective tool that paves a certain enterprise towards relative competitive advantage while retaining their unique customer base within a specified segment of target market. Effective differentiation is a cardinal criterion for any enterprise since it consolidates the absolute objective of an enterprise and ensures a stable status in this volatile and competitive market ambience of food and grocery chain, as Highland Mart mainly operates within that (Garengo and Sharma, 2014)

Efficiency- In terms of business response, Efficiency is one of the paramount criteria to satisfy the customer expectations while ensuring sustainability in this competitive market. It is used as core business strategies across several multinational units to promote an efficient and convenient service. In order to ensure smooth accessibility in the supermarket premises, they have prosecuted their location remote to the vehicle stops. Furthermore, they have maintained a systematic e-commerce site, which is committed to deliver the desired products within scheduled time. In addition to that, they have hired efficient, smart and diligent recruits in order to reciprocate and reflect their dedication towards self-integrity and efficiency (Harvey and Walshe, 2014).

Customer Acquisition- In order to retain the prevalent customer base, Highland Mart has decided to align their approach of self-integrity with the brewing cultural trends of philanthropic awareness. On that note, they have been able differentiate them diligently by simply being affordable, diverse and responsive. Highland Mart has been able to retain a diverse spectrum of offerings that have the potential to draw customers of multiple interests. Moreover, the recruits have been able to develop a comprehensive aptitude that they exploit to anticipate possible expectations and responses immaculately. Additionally, they seem adamant to restore the balance of quality and flexibility regarding their products in order to exhibit their commitment towards self-integrity (Hayes, 2014).

Alternate Target Markets- Apart from their regular customers, Highland mart seems committed to device alternate target business strategies in order to address new frontiers across the nation while expanding their area of operation. In order to accomplish that, they have started to upgrade their archive of products. The surplus moiety of their annual revenue has been systematically invested in order to specify the discipline of market they are trying to merge with. Though it is not an incipient practice to look for alternate markets, Highland Mart has been able to alienate them from the cliché notions of alternate market simply by consolidating their dedication of self-integrity (Mahony, 2016).

Competitive Advantage:

Prudent parameters of differentiation ensure the relative competitive advantage of a certain enterprise. It is imperative to introduce a dimension of competitive advantage in order to sustain in this volatile business ambience intensified by emerging technological expertise, e-commerce and brick-and-mortar.

Brand Associations- Authentic Brand Association may pave a retail towards relative competitive advantage since it separates the brand of deliverables and enhance its reputation which consequently consolidates the relative market status of the enterprise. On that note it can be addressed that, Highland Mart used to observe a annual sale bonanza in order to celebrate their creative collaboration with other identical retails while reciprocating their courtesy through allocating a larger slot in the respective hoardings. It is evident this strategic approach endows the enterprise with relative competitive advantage as it is very popular among the regular and potential customers of the mart.

Introspection of the recruits- The subordinates associated with Highland Mart have been able to develop a comprehensive aptitude to anticipate the expectations of the customer and in accordance with that, they specified their stores. The available transaction log and credit data card have the potential to quench the enquiry of the recruits about the customer insight since it enable the recruits to categorize the affinities and the respective impulses regarding the price of the products. This information enable the subordinates to maximize the assortment that is principally framed upon the average appeal of customers. Furthermore, this approach enable Highland Mart to integrate their approach of self-integrity which assist the enterprise to transcend the ethnic and demographic segmentation ( And several other approaches which is conventionally used to specify design and strategies).

Private Labels- In the recent years, the significance of private label has been considerably evolved with the underlying stigma of the supremacy of quality. The authentic private label products of Highland Mart have exhibited a commitment to expand their spectrum of products while retaining to the proclaimed quality. In the marketing domain, it is an established adage that, the quality of a specific genre of product copes to transform itself as a quality-intensive analogue of itself. Highland Mart seems adamant to integrate their absolute value proposition with their respective revealed brand. Furthermore, in the course of this process, they are equally intrigued to accomplish the previous without integrating the banner with the label.

Target Markets Strategy:

Highland Mart poses their principal emphasis of Market Policies on the strategic section and subsequently transmits specific strategies regarding public relations, advertising and sales promotion, customer service and pricing. Furthermore, they have adapted a homogeneous blend of all these marketing disciplines in order to leverage the central strength of a specific store and ignore the potential origins of weakness. Since the entire market is adamant to stick into the underlying low-cost structure and enjoys the unavailability of identical grocery chains within the quarters, they transformed their comprehensive marketing strategy accordingly by including advertisements, which aims to focus on in-store sales and lower prices in order to draw the value-seekers. On that note, it is commendable to admit that they vehemently denied to compromise with their service they is devoted to deliver their customers on the contrary of a regular practice to considerably reduce the dispensed services in order to thrive (The banal and counterproductive consequence of this practice is they eventually end up driving their customers away). They seem more adamant to invent innovative ideas that have the potential to thrive and retain the excellence of their service instead of reduce customer service indiscriminately.

Marketing mix

Marketing mix is an analytical demonstration and consists of a comprehensive analogy of the four principal components of retail such as Price, Product, Promotion and Placement.

Product- Highland Mart is dedicated to provide a diverse range of products including grocery items, jeweler, food and average and essential domestic appliances. This off-being, product line serves to every possible expectation of its potential customers and recently entered the virtual domain. Moreover, within the spectrum of products, they seem adamant to introduce a wide variety of options in order to endow their customers with the ability to opt. This choices usually pertains brand, seasonal and regional producers and multinational grocery deliverables.

Price- As suggested by their SWOT analysis, Highland Mart is adamant to maintain their low cost structure without compromising with the quality of products and the customer services. Moreover, in order to ensure customer satisfaction they have introduced several measures with an economical dimension attached to it. The strategy of Highland Mart to function in low prices is admired and recommended across a wide range of customers. All the other they are effectively involved with consolidates their obligatory adage of ‘every little counts’ (Phillips et al. 2015)

Placement and Distribution- Highland Mart has its headquarters in Greenwich, London. Apart from that, they are dedicated to satisfy their customer base almost across the entire city with number of stores and portable vans. Moreover, it usually operates their entire infrastructure by both of the modes of Online and Offline. As per a recent study conducted by the business, executives of Highland Mart suggested the fact that some of their core customers suffer from inconvenience while shopping in big stores. Thus, their recent pursuit is devoted to ensure smooth accessibility of the customers in smaller stores.

Promotion- The ability of Highland Mart to operate in low cost structure is the cardinal characteristic, which consolidates their competitive advantage in the growing market. They have effectively exploited it to introduce a viable element in their prevalent brand image. Furthermore, it is likely to offer promotional discounts and franchise charitable events in order to stabilize their promotional activities.    

Part IV- 

Business Operations model- The concept of business models can be simply illustrated as the possible ways by which a business enterprise can make money. It essentially involves a prudent matrix of generated revenue along with an account of the imposed fixed and variable cost that causes the revenue to generate. Moreover, it includes the favorable options that may facilitate the enterprise towards their desired way of addressing their set objectives. Highland Mart can be a feasible example in order to relate them with the competitors of identical concerns. Furthermore, it can be easily identified that at various microeconomic level, there lies a significant parity among the certain underlying elements of a retail operating on a multiple platform (Parker et al. 2017).          

Equipment- The equipment that needs to employ in order to predict the skeletal framework of the underlying enterprise is an analogy of comprehensive concern. Furthermore, it can be illustrated as one of the fixed assets of the enterprise. Transactions of these sorts of tangible properties may impart a significant impact on the annual cash flow of the entire organization. This can also be cited as a measure of technological expertise since it expresses the higher nodes of practiced expertise. Highland Mart needs to upgrade their technical expertise in order to cope with the emerging scene of growing customer expectations (Ngamroo and Karaipoom, 2014).

Process- The process incorporates several aspects of addressing the desired tasks. Moreover, the heaviest variable cost is the amount of money that acquires the similar use of financial skill to decline downwards. Tactics, in terms of processes may significantly vary but the moot factor is to optimize the margins while stabilizing the generated revenue.  

Organizational Structure- Several organizational structures can be adhered in order to evaluate an entire enterprise of collective interests and objectives. The matrix model can be represented as a prudent structure that enables the subordinate to enjoy a considerable amount of liberty. Since it approves the subordinate to be autonomous, sometimes it transforms itself into autocracy and the suggested opinion suffers from considerable biasness. Whereas, in the hierarchical model the information is percolated in a systematic manner where the distribution of information is done in an autonomous form, however, a place of individual perception exists in these kinds of structures. The place of individual perception provides different kind of benefits to the employees to access their own creativity and establish their own images of perceptions (Michael et al. 2016)

These kinds of things can be seen to be missing in hierarchical form of organizations and business models. The hierarchical form of models shows a structure in which the ideas and the decisions are only taken by and rather made by the head of the organization. While, in other cases, in an bureaucratic form of the organization, the power lies in the hand of the position held by various people associated with the organization. The powers are held and exercised as per the position held by the specific person in the organization (Pollack,  2015)

Internal and External associates-

The organization has different kinds of associated that are directly or indirectly connected with the business. The internal stakeholders are the ones which includes people such as the employees, the board of directors, the shareholders, the management team. While on the other side, exists the group of external stakeholders which includes people such as the customers, the Government, the media lines, the financial institutions etc. The external as well as the internal stakeholders demand different kind of data regarding the business in order to now about the performance made by the overall business organization (McCafferty, 2014)

Part V

The term ‘cash flow’ can be illustrated as the amount of funds moving out of the organization during the operation of business. In a retail context, the notion of cash outflow comes with the enquiry that whether the revenues are coming in hand or not (Trenholm and Ferlie, 2013)