The Applegreen Case Study Business Essay

Applegreen is a retail company founded in 1992 as Petrogas and then created the Applegreen brand in 2005 [1], which sells convenience goods and discount petrol to the consumer market. Petrol sales replace 80% of its primary product offering, while fuel may take into account the majority of their turnover in relation to sales they attribute their income to the sales of convenience goods as there may be little margin if any on gas.

Their company motto "Applegreen now that's better" [1] applies to how they run their business by adopting a green approach to their business ranging from offering paper totes instead of cheap ones to not selling complements as they ingest trees and shrubs etc.

At the time of writing Applegreen possessed approximately 1400 group employees and 70 head office employees with a one billion euro turnover on a yearly basis. They have got 71 service stations in Ireland and 31 in the United Kingdom.

What is Applegreen's tactical plan

Applegreen doesn't comply with the conventional intelligence of fabricating a mission statement that summarises their proper plan that a lot of companies adopt. They have currently adopted the tactical plan of progress by organic means as they understand it to be the cleaner way to grow their business and have got success with this process.

Literature Review

The tactical management process is the characterization of organisational strategies where management make options based on a couple of strategies for their organisations that will enable better performance, but also is a continuing process that appraises the business and industries they are connected with, appraises competitors both current and future and establishes goals to meet these problems. The process itself consists of the following four steps [2]

Environmental Scanning

Strategy Formulation

Strategy Implementation

Strategy Evaluation

Environmental scanning

Environmental scanning within an organisation refers to the ownership and utilisation of information collected about possibilities, habits, trends and relationships within an organisations interior and exterior environment. This research usually is compiled using S. W. O. T. evaluation where inner factors are thought to be Weakness or Advantages while exterior factors are regarded as Opportunities or Hazards. P. E. S. T. evaluation is the preferred method by most professionals for constant scanning and enables quick activities to be studied. It is utilized for external analysis when conducting proper analysis or general market trends. The P. E. S. T. acronym means Political, Economic, Social-cultural and Technological analysis [3].

According to Kasmi (2008) the management strategy entails three processes Evaluation, decisions and activities [4] and using this approach to environmental scanning allows the professionals to ask themselves a series of questions to be able to establish where they have to take action as it uncovers their strengths and weaknesses both internally and externally from opponents. One particular question might be just how do we outperform our rivals?

There are three types of scanning

Ad-hoc Scanning - short term and usually utilized by company in a crises to determine if the condition is inner or external

Regular Checking - done frequently e. g. twice yearly or more done by mindful organisations

Continuous Scanning - constant collection and handling of a wide selection of environmental factors [3]

The more consistent the scanning process the better the tactical management process and management plan of the company will be. The two methods of environmental scanning are

Secondary data - catalogs, newspapers, etc readymade sources

Primary data - questionnaires, studies, interviews, etc conducted by the organisation

The more centered on the proper plan and constant scanning of their environment the more successful the proper plan and the market share that is captured by an company.

Strategy Formulation

Having completed environmental scanning managers follow the next step of the process, which includes deciding the best action to achieve the organisations targets and organisational goal and then formulate corporate and business, business and useful strategies. Research efforts are increasingly focused on this complex topic and examine variables including organizational framework, goal ambiguity and

networking (Boyne 2003; Boyne et al. 2006) [5].

Corporate strategy formulation is where organisations make a decision which business(es) they want to be engaged in and how they want to grow naturally or through acquisitions whereas business / efficient strategy formulation is when an company sets a framework of common competitive approaches for obtaining business success.

Generally business strategy acquires more precedence than corporate strategy, but both require market / industry research (step 1 1), planning, goal setting techniques, dedication of resources / assets and monitoring.

R. Andrews, G. A. Boyne, J. Legislation and R. M. Walker (2009) Rational planning is characterized by analytical, formal and reasonable processes by which organizations scan the internal and external environment, and develop insurance policy options which change from the position quo [6].

At the planning stage the analysis discloses information on the paths an organisation can take benefit of to increase its market share, enhance their product / service offering through innovation, enter a fresh market etc, but after the organisation has determined which path(s) it'll go after in its strategy then it must place realistic of course, if required permanent goals with the committed resources /property accounted for to do this plan.

A good management strategy will target equal or even more attention on inner performance to achieve its objectives and can monitor it tightly as well as its rivals. Strategy formulation is seen as comparable to that of a game of chess in which the grasp carefully manoeuvres his chess parts to accomplish check mate compromising pawns in order to sketch his competitor away.

Such strategies corresponding to Porters Universal Strategies [7] are differentiation, cost command and concentration and summarised below.

Differentiation - Organisation pieces about distinguishing its product / service from those of its competitor

Cost Leadership - Company aggressively slashes costs, uses tighter control buttons than competition etc

Focus - Concentrates on a specific region, market or segment group

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