Myer Swot Analysis

Topics: Customer service, Department store, Customer relationship management Pages: 13 (3694 words) Published: August 31, 2010

1. Introduction
2. SWOT analysis
3. Stakeholder analysis
4. Strategic Initiatives
5.1 Suitability and Feasibility
5.2 Impact on major stakeholders
5.3 Shareholder value implication
5. Proposals to management
6. Strategy Map and Balanced Score Card
7. Conclusion
Appendix A External Analysis
Appendix B Internal Analysis

Executive Summary
Myer, the largest department store retailer in Australia, re-listed on the Australian Stock in November 2009. Howard McDonald (Chairman of Myer) declared an Offer to the investors in order to achieve Listing on ASX and provide Myer with additional financial flexibility to pursue growth opportunities, Since changing the ownership in 2006, Myer has been confronted by major transformations. Listing on ASX can help Myer improve access to capital markets, provide a liquid market for shares, provide an opportunity for employees and customers to invest in the company. Myer will have sufficient working capital, capital resources and liquidity to carry out its stated objectives on the completion of the Offer. This report is to evaluate the strategies that given in the prospectus and to provide some recommendations. First, a SWOT analysis will be given. The second part is stakeholder analysis of for five major stakeholders of Myer. The third part will select four strategic initiatives and evaluate its suitability and feasibility followed by the assessment of the impact on both stakeholders and shareholders. The fourth part is the recommendation to the management of Myer. Finally, a strategy map and Balanced Scorecard will be provided to better demonstrate the strategy that Myer should focus its attention on.

1. Introduction
Myer, started from 1900, has become the largest department store in Australia. Myer has undergone a major transformation since changing the ownership in 2006. The strategy that Myer focuses are mainly on four parts which are new stores opening, comparable store sales, gross margin improvement and reductions in the cost of doing business. This can be a great opportunity for Myer to search for new market and maintain constant growth. However, the external and internal environment will be an important impact for the development of Myer. The global financial environment has affected the Australian economy. Customer may change their preference. Moreover, the competitor’s strategy like David Jones and major stakeholders’ interests also should be included as the factors affect the further development. Considering all the factors above, we are selecting the most appropriate strategies for Myer to minimize the possible risks and to increase constant growth that will ultimately enhance shareholder value. 2. SWOT analysis

The SWOT analysis is based on an extensive analysis of the external and internal environment. Please refer to the Appendix A and B for further information.

3. Stakeholder Analysis (see Appendix B-1)
As one of the Australian largest department store retailer, Myer has remained approximately 3.1m “high value customers” by Myer one loyalty program, and has been attracting 235000 MYER Visa Card and Myer Card holders currently. Customers concern about the quality of products at a reasonable price, after-sales service, prime store locations, benefit and reward regime, extensive brand offering, and supreme shopping experience. To satisfy all these requirements, the cost of doing business margin would increase, while the gross revenue might be partly or wholly influenced, thus customer’s interest would be opposed to the generation of shareholders’ value. Employees (excluding management level)

Myer has approximately 14,000 team members and is committed to being an employer of choice, 87% of them are store staff, regardless of full-time, permanent part time or casual employment. They expect to obtain equivalent payment to their contribution, motivation system, and other value-added...
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