INTRODUCTION:
Every business requires different strategies in order to grow and develop in the market. It is because the success of a business depends on strategies. The development of strategies is based on several factors that include internal and external environments (Hill, Jones & Schilling, 2014). These factors can affect businesses to expand their operations. Strategic management refers to formulating of goals and objectives by top management. They also decide strategies through which these goals will be achieved. Moreover, they allocate resources to each department for attaining their goals. This report will show how strategic management is followed by organizations. Also, what factors are considered in this. For the present report organization selected is Woolworths. It belongs to the retail sector and operates in Australia.
FINDINGS :
Woolworth is an Australian supermarket chain store company that was founded by Woolworths in 1924. It covers almost 80 % of market share in Australia. The company majorly deals in products such as vegetables, fruits, packaged food, etc. It has also engaged in selling products like DVD's household products, etc. (Hitt & Duane Ireland, 2017) the number of stores in Australia is 1000. Currently, company has started a service known as Homeshop and home delivery service.
The company was founded in September 1924 under name of Wallworths Bazaar limited. The main goal of company is to provide groceries to people at low price. The top management has focused on home delivery service to people. This has attracted a large number of people and also has provided a strong competitive advantage in the market.
Woolworth operates in market where a lot of micro and macro factors can affect it growth. So it is important for management to consider those while developing strategies. Micro factor refers to internal environment of organisation while macro refers to external environment. These are described below:-
Internal factor – it includes SWOT analysis of Woolworth that is as follows :-
Strengths –
- It is one of the oldest super market store in Australia, so it is having a strong brand image in the market (Bettis & Mitchell,(2015).
- It almost has 1000 stores that operates in entire country, so it is having a large customer base and market share
- It provides a variety of products and services to people.
- It is having both online and brick and mortar concept of selling that gives strong competitive advantage.
- It contributes to society and have an effective CSR program that have significant impact on people mind.
Weakness -
- It only operates in Australia so there is no international presence (Ginter, Duncan & Swayne, 2018).
- Many new companies have emerged in retail sector that is providing competition to Woolworth. Due to this it is losing competitive advantage.
- It came very late\ with concept of online selling.
Opportunity
- It can expand its operations in different countries to grow and develop.
- It can also use digital marketing in order to attract large number of people. This will help in increasing sales and profits. Also, it will help in retaining customers and making them loyal.
Threat
- The growth of ALDI in Australian market can give tough competition to Woolworth. This will reduce their market share.
- It has engaged in war with Coles. This can be threat and will impact brand image of Woolworth (Ethiraj, Gambardella & Helfat, 2018).
External factor-It contains PESTEL that is as follows :-
- Political– It is operating against the pressure of duopolistic nature of retail nature. This means that any change in government will directly affect retail sector.
- Social- it has been able to build positive image in the society. This is because of highly involving in CSR activities. But in recent time there is change in relationship with suppliers. This is changing the way of doing business.
- Economic- The laws and regulation to enter in retail sector has been made easy by government. This has resulted in many new entrants. It is affecting the economy of country.
- Technological– Change in technology has forced retail business to install the latest tools and equipments (Wheelen & Bamford, 2017) . Similarly, SAP system is implemented to improve the merchandising system.
- Legal– Woolworth is facing several issues with government of Australia. It has involved in battle with ACCC. Also, strict rules are implemented by NFF
- Environment- government has imposed some laws and regulations to protect environment. This has forced company to use renewable resources.
It is important that strategies is developed at corporate and functional level. This is because it will help Woolworth to survive in market for long run. Also, in Woolworth common goals are determined. Moreover, each function have different goals. They work together so that overall objectives are achieved.
Competitive advantage and sustainability are interrelated to each other. It is necessary for firm to have strong competitive advantage. It means that company is having a distinct image of its products and services (Meyer, Neck & Meeks, 2017). Woolworth is having a strong competitive advantage in the market. It is because of variety of products and services that is provided by company to people. Developing an effective strategy will help in sustaining for long term. Moreover, it will help Woolworth to expand operations at global level. More a firm is having strong competitive advantage more it can sustain in industry for long time.
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In recent time there are many mergers and acquisitions occurred. Small and new business are joining hands together to grow and develop. The impact of this can be observed in retail sector and this has resulted in increase in competition. It has forced companies to change their strategies as per international standards. The example can be seen as ALDI is expanding its operations in Australia. Due to this market prices are fluctuating.
Developing effective strategies is not enough also it has to be implemented properly. It is the role of leader and manager to implement it in proper way. This is because it will help in growth and development (Ethiraj, Gambardella & Helfat, 2017). If strategies are not implemented then organisation will not be able to survive. In Woolworth strategies are implemented in both corporate and functional level. For this resources are allocated to them according to their goals.
Leadership plays a vital role in implementation of strategy. It is because leader provide support to organisation and guides them in right direction. They also help in taking proper measures in right time if any change occurs in factor. A leader is responsible for achieving goals in proper time. He applies different leadership style according to situation. Entrepreneurship is related to leadership as it involves managing group of people in organisation. This helps in increasing the efficiency of organisation as well as employees.
Organisation structure refers to how task and activities will be allocated that will help in achieving common goals. It defines he hierarchy of organisation. Woolworth is having a specific organisation structure in which there are three levels that are top, middle and functional (Hill, Jones & Schilling, 2014). The top level formulated goals and objectives that has to be implemented by middle and functional level. Top management also controls the overall activities in Woolworth. Corporate governance means the rules and regulations that is followed by firm to control their operations. It is related to stakeholder interest. An organisation must work in interest of stakeholder. This will help them to create a better image in society. If you need dissertation help please contact our experts.
CONCLUSION :
From this report it is concluded that top management must consider several factors while formulating goals and objectives. It helps in dealing with change in those factors in the future. Also, it helps in minimising the negative impact on business. Strategies must be properly implemented otherwise it will result in failure. Moreover, a proper structure must be developed so that task are performed in systematic manner.
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