Wesfarmer’s home improvement division, Bunnings has been the leading hardware supplier in all states of Australia and New Zealand in the past years. Bunnings’ strategic objectives are to provide the widest range of home improvement goods with lowest price. It can be seen as a slight prospector / strong analyzer based on the Miles and Snow’s Adaptive strategies (Miles & Snow 1978).
Bunnings’ core competence is their depth and breadth of stock holdings and brand name recognition designed to cover almost all the needs of people’s everyday life.
Bunnings are doing basically well in the strategic implementation process. From innovation to stuff, from information technology to legal and e-legal, Bunnings are all doing well on those aspects. Some issues also exist due to both external and internal factors. However, on the whole, Bunnings have been implementing the strategies very well.
2. STRATEGIC ANALYSIS PUTS BUNNINGS CLEARLY OUT IN FRONT5
3. STRATEGIC OBJECTIVES MEAN MORE, MORE, MORE11
4.CURRENT KEY STRATEGIES PUT DOLLARS IN THE BANK FOR BUNNINGS14 5. BUNNINGS STRATEGIC IMPLEMENTATION FOCUSES ON GOOD CORPORATE CITIZENSHIP19 6. KEY STRATEGIC IMPLEMENTATION ISSUES211
6.3 Information Technology22
6.4 Legal and E-Legal22
6.6 Strategy and Structure23
6.7Need to focus on what problems they are facing in the implementation issues 7. EVALUATION OF STRATEGY24
The overall purpose of this case study is to analyze the competitive advantages and key strategies of Bunnings, which is one section of Wesfarmers’s business and see how the Bunnings implement the strategies in order to achieve the strategic objectives.
Wesfarmers originated in 1914 as a Western Australian farmer's co-operative and now it is one of Australia's largest public companies, headquartered in Perth, Western Australia. Bunnings is the main part of its home improvement division. Bunnings employ a workforce of 20,000 and operates a network of over 225 stores across Australia and New Zealand and is the leading hardware supply company operating in all states and territories in Australia and on both islands of New Zealand (Bunnings, 2007). .
This case study analyzes the external environment of Bunnings using PESTEL method and then finds out the strength and weakness of Bunnings through the SWOT analysis. It comes up with Bunnings’ strategic objectives and discusses about the key strategies for realizing the objectives. It then comes into details about the strategic implementation process and discovers both the success and problems in it.
Bunnings are employing all kinds of strategies to position itself strongly in the market. Its external environment is very healthy and helpful for its future development although there are also some threats. However, the opportunities exceed the challenges, Bunnings still have potential for growth in market share and profit in the next years.
This essay also deals with the evaluation of Bunnings’ strategies and makes some comment about problems in strategic implementation process. The case study concludes based on the analysis and goes through the main points of the whole essay again.
2．STRATEGIC ANALYSIS PUTS BUNNINGS CLEARLY OUT IN FRONT
The stable political systems of Australia and New Zealand safeguard the business community this enables Bunnings to operate in a pro-business environment and add business protection and security (Global insight Australia, 2007)
Australian government and the Reserve Bank of Australia have employed the tightening monetary policies recently years to control the inflation level of economy (Global insight Australia, 2007).