Smartmart Essay

859 Words4 Pages
1. Set out your overall strategy for SmartMart, explaining why you elected to follow this strategy, and how each decision you made contributed to this strategy. The strategy that I chose to address the above mentioned concerns is majorly supported by the company’s missions and values. SmartMart has always delivered high ‘Use value’ to its customers through its premium organic products, which constituted the major proportion of their SKUs and through its highly appreciated customer services. It is their core missions and values that differentiated them from their rivals and attracted many customers and it is rational to stick to those values and core differentiator as it has gained appreciation. I also believe in Michael Jensen’s theory of value maximization and that the “The real issue is what decisions will result in least social waste and not whether one stakeholder is or should be more privileged than the other”. My strategies are not biased towards any stakeholder and focus more on profit maximization and ethical and greener ways of doing business and thereby also sticking to company’s missions. My strategies also focus on low risk initiatives as I feel that taking a big risk by investing huge amounts could literally wash the company out of the market. Hence my strategies also highlight most feasible 15% solutions that would start yielding immediate results. For arriving at the decisions, I have used the Porter’s famous ‘Five Forces’ analysis. Please refer to the (Appendix B) for the detailed analysis. Scenario 1: From the analysis, I feel that it is logical implication for SmartMart to become a Niche player and bank on the current competitive advantage that it has in the market. This also supports my strategy as there is no huge investment required and the risk of failure is too low and is a feasible 15% solution to the problem at hand. This decision is

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