(a)

The following critical success factors should help management achieve the above objectives:

(i) To ensure the loyalty of its customers – i.e. to generate lifetime loyalty the following CSFs should be addressed:
Stocking the goods that customers most want to buy
Making the shopping experience as pleasant as possible/differentiating the shopping experience from that of other supermarkets to lock in customers.
Making the supermarket more accessible to customers by establishing out-of-town outlets
Etc.

To ensure its prices are at least 2 percent cheaper than the average of rival supermarkets – i.e. to create value for customers the following CSFs should be addressed:
Refining internal processes to operate the business on a cost-effective basis – e.g. building close partnerships with suppliers to implement a JIT system (in order to eliminate or reduce warehousing costs)
Using economies of scale to source appropriate goods as cheaply as possible.
Etc.

(ii) In order to measure how well Vita Mart management is performing against the above CSFs, the supermarket needs to set the following KPIs: The first three KPIs are in respect of the first two CSFs above and the last three are in respect of the remaining CSFs.
The proportion of goods taking more than a week to sell
Results of customers feedback surveys
Percentage of customers who are repeat customers
Market share
Cost measures and progress against savings targets
Cost savings in procurement
results of benchmarking prices or costs against that of rivals                                                                                                                                                                                                                                                                                                                                                                            (b)

The factors that should be considered before choosing an approach to communicate corporate strategy in an organization are stated and explained below:

(i) Proprietary nature of the strategy: The wider the dissemination of information concerning strategic decisions, competitive moves, or shifting emphasis, the greater the likelihood that it will reach a competitor, who could subvert the move, decision, or shift. A strategy which will provide or exploit an unpublicized advantage may be best kept undisclosed. The advantages of organizational commitment would be offset by the loss of surprise. If the strategy will divulge proprietary information, it should be shard only on need-to-know basis.

(ii) Political impact of strategy: It is not always possible to achieve consensus concerning the appropriate strategic directions for an organization. If a number of top-level managers participate in the formulation process, it is not unlikely that there will be differences of opinion about the final choice. In an organization in which relationships are strained, factions may form around strong individuals, and the strategy may be judged and supported according to who is backing it rather than upon its own merits. In such a situation, it may be more efficient to communicate the strategy piecemeal rather than as a whole. Strategy communication that sparks infighting will hinder implementation more than it will help.

(iii) Expectation aroused by strategy: The announcement of a strategy gives all organizational stakeholders a means of evaluating operations and performance. It also raises and defines expectation about the future of the organizations which may prove embarrassing to management if unforeseen circumstances arise and diminish performance. For this reason, many public announcements of strategy are retrospective, indicating what has been attempted and how well the objectives have been met. An organization which announces strategy prospectively is subject to criticism from security analysts to fluctuation in share prices, to government scrutiny, buyer and supplier moves, as well as union responses that may be generated by stakeholders.

(iv) Motivational impact of strategy: A clear statement of strategy may either inspire or demoralize. The effect of a given communication must be considered in light of the personal implications for the individuals required to implement it. Growth strategies have enjoyed popularity because, among other things, the rewards – both financial and career – are perceived as greater for all concerned. Retrenchment strategies are full of financial and personal unpleasantness even though they may be necessary to maintain long-term viability. Unfortunately, good managers may be tempted to leave at the time they are most needed. At the corporate levels, considerable differences may exist among the strategies of various business units. These differences may make some units much more attractive than others. The use of the term “dog” with the attendant divestiture strategy is likely to have negative effects on unit morale. If communicating strategy is more likely to reduce morale or drive away good managers than to inspire action, a comprehensive strategy announcement is usually undesirable.                                                                                                                                                                                                                                                                                                                                            (c)

The importance of physical environment conditions

(i) Integrating the environment into capital expenditure decisions (by considering environmental opposition to projects which could affect cash flows, for example).

(ii) Understanding and managing environmental costs. Environmental costs are often “hidden” in overheads and environmental and energy costs are often not allocated to the relevant budgets.