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Strategic Analysis
Strategic Analysis
Strategic Analysis
Strategic Analysis    September 10    2018    
    
Contents
PART 1: External analysis    3
Business background    3
What industry is it?    3
General environment analysis    4
The industry environment    5
Competitive environment    7
Opportunities and threats    8
PART 2: Internal analysis and proposal    9
The firm’s resources, tangible and intangible    9
Capabilities identification    9
Core competency analysis    9
Propose a Accounting information system solution    10
Evaluate the proposed system and recommendations    11
Conclusion    11
References    13
PART 1: External analysis
Business background
Woolworth is a company running grocery as well as in retailing business. It is Australia's largest company and expanded to NZ. Woolworth was formed in 1924 and has a strong market share of approximately 45% in Australia, moreover is ranked second among 2000 Australian retailers ABC News. (2016). In 2016, Woolworth had approximately 205,000 employees furthermore the number of branches being opened by the company is likely to increase, it has invested in many portfolios and has worked in the supermarket, Thomas Dux, low food; Petrol; Alcohol; General trade; Home improvement services is a terrific competition between Woolworths, Coles, Aldi, and in others, where there are both deals in retailing business. Nevertheless, the company's always changing business settings and environment, especially the company's external factors, is a big challenge.
What industry is it?
Woolworth is a supermarket industry. The Australian supermarket industry, retail grocery, and food products are classified as an adult industry, defined as a retail business. Competing organizations in adult industries use aggressive cost-reduction initiatives, rather than a competitive advantage based on price-based factors (Alhaddi, 2016). The Australian supermarket industry has increased the average annual growth of the industry from 2007 to 2012 by 3.4%, and the annual growth rate of 2.4% between 2012 and 2017 is estimated to be lower, based on cost-based competition is an advance estimation of private-selling items, and therefore the production-based price Wars are inevitable. Woolworth is a supermarket industry (Adam, and Jensen, J. 2016). The Australian supermarket industry, retail grocery, and food products are classified as an adult industry, defined as a retail business. Competing organizations in adult industries use aggressive cost-reduction initiatives, rather than a competitive advantage based on price-based factors. The Australian supermarket industry has increased the average annual growth of the industry from 2007 to 2012 by 3.4%, and the annual growth rate of 2.4% between 2012 and 2017 is estimated to be lower, based on cost-based competition is an advance estimation of private-selling items, and therefore the production-based Price Wars are inevitable
General environment analysis
Legal-political factors
Clearly, it is imperative that not all business associations are otherwise, but the land must fully comply with legal provisions. However, Woolworths has established rules and policies that will help its employees align the critical essentials of the land. However, consult the legal experts on the consequences of making legal requirements and when the administration is uncertain about a particular matter, New Zealand and Australia are the countries that enjoy enduring political stability. The relationship between these countries has created a highly conducive business environment for well-organized operation of Woolworth. However, Woolworth's performance has also been affected in a variety of ways. Some Political forces had given a negative impact on the retailing industry. Australia suffered a major setback when the Australian government had recently planned to remove developed companies like Woolworth to market retailers from small retailers for unfair competition (Berry, 2011). Therefore, due to the fair trade policy created by both New Zealand and Australia tournaments as well as Consumer Commission, Woolworth's performance has had a significant effect. But due to the management capability to establish effective strategic solutions, the company flourished the industry and took control of the next market share.
Technological factors
The technical problems that have occurred at this time have had a significant impact on how many businesses have done their job. Today, the formation and innovation of technology is a common tendency for organizations to apply for their strong competitive edge. The company also has used this technology in many operations. Woolworths Company used perfumer products to use green wall refrigeration technology. Also, the auto-check-out machine used by the organization for scanning helps in reducing the value of the machine and reducing the value.
Economic factors
These factors mainly see the performance of Australia and NZ economic performance. This can be between the customer's purchasing power, exchange rate, inflation, and others. In case the purchasing power of the customer is very weak, then the company's performance has a negative effect. Also, the subsistence of inflation influenced the prices of several products so that users would be able to influence the sale of merchandise (Byrne, Fernald, and Reinsdorf, 2016).
Social/Cultural factors
These elements include demographic patterns as well as personal beliefs, rules, attributes and so on. This includes people, in particular, religion, gender, language, age, norms, population size, etc. Australian demographic factors change. As customers prefer to consume existing products, they change according to technological changes. Also, they think about the buying products from the leading social organization in the corporate social development.
The industry environment
Bargaining power of buyers: In Australia’s Retail Trade, there are lots of services and products to choose from. It provides the necessary products to customers who provide high dealer capability to buyers due to the accessibility of the supermarkets and retailing stores. The entry of new players...