Pick n Pay’s Strategic Transformation: Aligning Digital, Tactical, and Operational Plans

Question 1:

Pick n Pay, one of South Africa’s largest and most established retail chains, has embarked on a multi- year strategic transformation to reposition itself in an increasingly competitive and digitally driven market. With pressure mounting from international entrants like Amazon and fast-growing local competitors such as Checkers’ Sixty60, Pick n Pay has introduced a bold strategic plan focusing on four pillars: digital commerce expansion, cost optimisation, sustainable sourcing, and customer- centric innovation.

At the strategic level, the executive team, led by the CEO and Board of Directors, approved a five- year digital roadmap in early 2024. This included significant investments in AI-driven inventory forecasting, the rollout of a centralised data hub to improve customer insights, and a commitment to reduce carbon emissions by 30% by 2030. The plan also included expanding the online grocery delivery footprint to rural and peri-urban areas by 2026.

Translating this vision into action required coordination at the tactical level, involving regional and departmental heads. These middle managers were responsible for setting up regional e-commerce fulfilment nodes, training in-store teams to manage click-and-collect orders, and engaging suppliers to meet new sustainability criteria. However, feedback from regional directors revealed inconsistencies in implementation across branches. Certain provinces, like Gauteng and the Western Cape, advanced rapidly due to better infrastructure, while others struggled with basic readiness – lack of staff training, inconsistent Wi-Fi access, and poor supplier response to environmental mandates.

At the operational level, store managers and team leads were tasked with daily execution: managing product availability, ensuring the efficiency of in-store picking for online orders, and maintaining customer service standards. However, frontline workers reported a lack of clarity in day-to-day directives, overlapping roles between e-commerce and store teams, and confusion about short-term priorities versus longer-term digital adoption. In one instance, the rollout of smart shelf technology at three Johannesburg outlets caused disruptions in inventory counts, with employees unsure how to reconcile data with existing manual systems.

Tensions also emerged when operational decisions (such as shifting more staff to online fulfilment) negatively impacted in-store customer experience. Furthermore, electricity disruptions in load- shedding-prone regions impacted both refrigeration and Wi-Fi-dependent stock tracking, creating disconnects between tactical expectations and real-world operational capabilities.

Instructions:

Critically assess the alignment between strategic, tactical, and operational planning at Pick n Pay, and how poor integration can affect organisational efficiency and long-term competitiveness.

In your response, you must address the following:

• Explain the distinct roles and decision-making responsibilities associated with each planning level (strategic, tactical, operational). Analyse how these levels interact in the context of Pick n Pay’s transformation journey. Use at least one (1) example of how a short-term operational decision can affect or contradict a long-term strategic goal, and vice versa.                                                                                                                                                               (10)

• Critically examine how middle managers (e.g., regional or departmental heads) act as the link between executive strategy and store-level execution. Use at least three (3) examples from the scenario to show how their role supports or hinders the alignment of strategic and operational efforts.                                                                                                                                                               (10)

1. Assess how effective Pick n Pay’s current planning and coordination approach is in addressing practical challenges such as financial limitations, labour-related constraints, and market pressures. Discuss what happens when planning fails at one or more levels, and the consequences for customer service, profitability, or employee morale.                                                                                                                                                               (10)

• Propose two (2) well-supported recommendations to improve coordination between planning levels. These could relate to communication systems, leadership involvement, employee feedback channels, or data integration tools that enable better alignment and execution across the business.

(10)

Your response should be well-structured, demonstrating critical thinking and application of business management principles. You are required to justify your arguments with case study examples, real- world industry comparisons, and at least three (3) recent academic or industry sources (2021-2025), using Harvard referencing. Your response must not exceed 1 000 words.

Question 2:

Research-Based Task:

In today’s dynamic business environment, an organisation’s vision and mission are not merely symbolic statements – they serve as guiding compasses that influence managerial decisions, shape culture, and align teams toward a shared purpose. However, the effectiveness of these statements depends on how well they are integrated into the organisation’s core management functions (Planning, Organising, Leading, and Controlling) as well as how consistently they are reflected in organisational behaviour and culture.

For this task, you are required to conduct a critical organisational analysis of any South African business of your choice. The company may operate in any sector (retail, banking, healthcare, logistics, agriculture, or services) but must have publicly accessible information related to its mission and strategic objectives.

Your analysis must address the following:

• Provide a brief introduction to the company, including a clear presentation of its current mission and vision statements. Explain the intended meaning and strategic intent behind these statements.

• Critically evaluate how the mission and vision are integrated into at least three (3) of the four POLC functions. Use practical examples from the company’s structure, processes, leadership initiatives, or performance metrics to support your discussion. You may draw from published annual reports, media articles, corporate communications, or stakeholder engagement strategies.

1. Assess whether there is a visible alignment between the stated mission/vision and the actual organisational culture and behaviours. Consider employee reviews, brand reputation, or customer experience feedback. Highlight at least one cultural gap that could undermine the mission.

• Provide two (2) practical and evidence-based recommendations to help the company enhance the alignment between its mission/vision and daily operations or employee behaviour. Your recommendations should consider both internal culture and external positioning.

You are required to utilise a minimum of five (5) in-text references. Your report should not exceed 750 words.

Provide a mini bibliography as evidence of your research at the end of this question.

Question 3:

Practical Application Task:

Setting clear and actionable strategic objectives is a core component of effective business planning. These objectives guide an organisation’s direction, define priorities, allocate resources, and establish performance benchmarks. The SMART framework (which ensures that objectives are Specific, Measurable, Achievable, Relevant, and Time-bound) is widely used to translate high-level strategic goals into implementable action plans across business functions.

For this task, you are placed in the role of a business analyst at a mid-sized South African manufacturing company that is seeking to diversify its operations into the renewable energy sector. The company’s revised vision is to: “Drive sustainable innovation in African industries through green technology and ethical business practices.”

The executive team has requested that you formulate and justify two clear strategic objectives using the SMART criteria to support this new direction. You must also outline a basic action plan that shows how the objectives will be implemented and measured across departments.

In your response, you are required to:

• Draft two original SMART-aligned strategic objectives that align with the company’s revised vision. Each objective must explicitly address all five SMART elements. Provide a brief explanation of how each objective contributes to the company’s long-term growth in the renewable energy sector.

• Explain why the SMART framework is important in ensuring that business objectives are effective, implementable, and measurable. Reflect on the potential risks of poorly defined strategic objectives in complex sectors such as renewable energy.
  • For one of your two SMART objectives, develop a short plan that includes:

• A situational analysis (internal strengths/weaknesses and external opportunities/threats).
  • Identification of functional departments involved (e.g., R&D, procurement, marketing).
  • Performance indicators (KPIs) that will be used to track progress.
  • Key risks and how they will be managed during implementation.

Your response must be structured as a reflective essay, include research-supported insights, and follow the Harvard referencing style.

Your report should not exceed 750 words. [30]

Strategy Assignment Answers: Expert Answers on Above Strategy Questions

Roles and interaction between planning levels
The alignment between strategic, tactical and operational planning at Pick n Pay indicates that the board members set long term directions at the strategic level whereas middle managers are responsible for translating the strategy into regional plans, and operational level managers are responsible for executing daily tasks.
Middle managers as the link
The middle manager acts as the link between executive strategy and store level execution by way of bridging the strategic vision and operational tasks, and thereby ensuring consistent roll out. The examples include the formation of e-commerce fulfillment nodes, ensuring coordination across suppliers with sustainability goals, and training in store teams for click and collect.
Effectiveness and risk of current approach
It is highly effective in terms of having clear strategic vision and regional rollouts. However the risk is mainly in the form of uneven regional readiness and issues with adapting to new technology. This will create practical challenges in the form of confusion within staff with respect to the roles and responsibilities, and pressure from the market to adapt to new technology.

Disclaimer: This answer is a model for study and reference purposes only. Please do not submit it as your own work.

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