Концепции стратегического управления супермаркета «Mercadona»

РИГА 2018

Contents

Table of Contents

Introduction        3

1. OBJECT OF THE STUDY        4

2. cOMPANY MISSION        5

3. Main environmental trends affecting the company, opportunities, risks        6

4. Pest analysis        7

5. SNW analysis        10

6. SWOT analysis        12

7. TOWS analysis        14

8. Key success factors for the company and its competitive advantages        16

9. Target installations of the company, a list of actions that the company has taken to achieve them        17

10. Existing company strategies, the main strategic options for the company        18

11. Suggest strategic options for Mercadona management        20

cONCLUSION        21

lITERATURE        22

Introduction

Mercadona S.A. is a family business with 100% Spanish capital, based in Tavernes Blanques and dedicated to the distribution sector. Mercadona is a company that by its name, size and particularity affects daily local lives, either directly or indirectly. The one that was 35 years ago some groceries with headquarters in Tavernes Blanques is a day today a "giant" with more than 1,400 stores spread throughout 46 provinces of 15 autonomous communities, with an average of between 1,300 and 1,500 meters sales room squares, which represent a market share on the total area of ​​food in Spain of 13.5% and that serve almost 5 million of Spanish families every day.

In addition, more than 400,000 workers benefit from its activity, all with fixed contracts, who develop their professional lives in the company with the same objective: to satisfy the needs in food, household cleaning, hygiene and food for pets. Mercadona is the leading supermarket chain in Spain, an example of a company that is reinvented to overcome the crisis and that for its relevance to the economy and society is interesting to value. It will be necessary to begin this work by describing its types of values and methods known in the company. We will continue with a study of the retail distribution sector, to which Mercadona belongs. It will also be necessary to analyze the general situation of the country through the PESTEL, SWOT, SNW, TOWL analysis tools.

1. Object of study

Last couple years I have been working in Spain and I am very familiar with local day to day life. The object of my study is grand supermarket chain in Spain “Mercadona” Founded in 1977 by the Cárnicas Roig Group, Mercadona is currently Spain’s market leader in the supermarket segment. Currently it has 1.629 stores throughout Spain and 84,000 employee-strong workforce who strive to offer a service of the highest level of excellence on a daily basis.  Mercadona managed to consolidate itself as one of the largest and strongest hypermarket chains in Spain, throughout the national territory and with projections of opening around of a hundred new stores every year, with a percentage of growth and market share well above its main competitor Carrefour.

2. Company mission

The mission of Mercadona is to meet the needs of mainly all customers, as well as workers, suppliers, society, and achieve maximum profitability through its differentiation in price and quality, specializing in own brand hygiene and food products.

The vision of Mercadona is to become the leader of the supermarkets in Spain through the distribution and marketing of its products with its own brand, as well as to become the trusted supermarket of its clients, becoming a competitive company with an own and differentiated corporate image of its competitors.

Values: The customer service, which from that moment would become the true "boss" of Mercadona, therefore, the main objective of Mercadona is to satisfy the customer.

• The employee service, which should have the best working conditions to consolidate a stable staff, satisfied and committed to the objectives. Mercadona workers are qualified or the company is responsible for training them, with this it tries to keep their workers fixed.

 • The attention to the suppliers, following the motto "quality does not have to be more expensive". Therefore, try to keep your suppliers fixed.

 • Always low prices, Mercadona has no offers, maintains the same prices throughout the year. [1]

3. Main environmental trends affecting the company, opportunities and risks

Major environmental trends affecting the company are competitive rivalry, threat of entry, threat of substitutes, the payment ability of the buyers and the suppliers. I am going to analyze these five forces for the food sector.

• Threat of entry. The entrance of new companies in this sector would suppose a greater competition what would force to lower the prices; in addition to maintain market share they would incur new costs, such as new advertising campaigns.
• Threat of substitutes. Substitute products or services are those that offer a benefit similar to those of an industry but created through a different process. In the food sector the existence of these substitute products is a limitation to the potential yields of the companies since they suppose a barrier at the time of establishing the prices.
• Payment ability of buyers. Most companies use customer loyalty strategies because in this industry there is no cost for customers to change suppliers, considering the level of quality. 
• Payment ability of providers. The suppliers define in part the positioning of a company in the market, since depending on the number of suppliers that there will be more or less negotiation capacity with the entrepreneurs. In the food sector due to the high number of competitors and the rivalry between them the power that this group has is quite small.
• Competitive rivalry. There is a great rivalry between different companies in a sector to get their market share within this sector and maintain a good position. To achieve these objectives, companies adopt different measures such as advertising campaigns, introduction of new products and differentiation and price competition. [2]

4.PEST analysis

PEST Analysis is a measurement tool which is used to assess markets for a product or a business at a given time frame. PEST stands for Political, Economic, Social, and Technological factors. Once these factors are analysed organizations can take better business decisions.