Spar, as a large business, is experiencing increasing tax rates as they make higher profits. They must comply with minimum wage and overtime legislation imposed by the government, leading to bureaucracy and government interference in their industry.

Economic:

Inflation rates have increased to 7.5%, making it difficult for consumers to afford products in Spar stores. This could result in a decrease in economic growth, as consumers spend less due to higher prices. Additionally, indications show that we were in a recession stage for business cycle in 2020.

Technology:

Spar now offers reward cards to customers, allowing them to easily gather data on purchases and make informed decisions on which products are in high demand. This technology has given Spar a competitive advantage.

SWOT analysis of Spar:

Strengths:

Spar has a successful record of building new revenue streams and getting a good return on their capital expenditure. They have a strong portfolio of brands and a dedication to customer satisfaction.

Threats:

Spar struggles to deal with new entrants and has gaps in their product range that can give competitors an opportunity.

Opportunities:

New technology allows Spar to practice a differentiated pricing strategy while maintaining loyal customers. Spar also sees growth opportunities in the market.

Weaknesses:

Spar has a shortage of skilled workers, which can limit their profit growth.

Vision and Objectives:

Spar's vision is to be the preferred brand for customers in the communities they serve. They aim to provide leadership and support to their retailers and focus on supply chain optimization through relationships with their suppliers.

Delivery Value:

Mendelow's matrix analysis shows that government has low interest in Spar but high power to influence their operations. Spar's goal is to keep them satisfied.

Business Models:

Spar has numerous key partners, including Fairfield Diary, Global Coffee, Naveo Commerce, Cadburys, McVities, Coca-Cola, Mars, and Walkers. They provide high-quality products to Spar's customers, and Spar aims to continuously improve its value proposition by introducing online shopping through E-commerce.

Spar relies heavily on its network of suppliers who collaborate to enhance delivery and reduce costs and environmental impact by transporting shared loads. Raw materials for cooked meals like meat are obtained from suppliers like Fairfield Diary whereas coffee is sourced from suppliers such as Fairfield Dairy. Ensuring a steady flow of supplies is crucial for Spar to continue operations and meet customer needs.

Financial capital is vital for Spar to function smoothly and efficiently. Spar has to pay salaries to its employees, settle its tax liabilities, employ new technology for facility expansion, develop new products, and accord remuneration to its shareholders. Spar recognizes that financial capital is the backbone of any industry or business to ensure growth and maintains long-term financial stability.

The management team plays a pivotal role in ensuring that Spar's activities proceed as planned to keep customers happy and content. Spar's management team efficiently cooperates with each other to oversee the day-to-day operations of the company's activities.

The key activities that form Spar's core operation include procurement, warehousing, and distribution. Spar sources goods from its network of suppliers at discounted prices and then sells these goods to retailers. By buying in bulk, Spar can reduce the cost of goods, thus achieving economies of scale. Spar and its suppliers continually strategize on the best way to maintain an efficient supply chain.

Spar operates warehouses across its distribution centers, leveraging advanced technology to optimize individual warehouse processes. Orders are processed electronically, sorted, and transported to retailers. Spar also employs advanced technology to store differentiated stocks and optimize the quantities of goods stored for easy delivery.

Reducing carbon footprint is one of Spar's key objectives, and the company relies on biodiesel and other sustainable fuels for its fleet of trucks. Spar and its suppliers collaborate to optimize distribution, using innovative backhauling and packing techniques to enhance the company's value chain processes.