Woolworths Ltd Strategic Analysis

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Contents

Introduction------------------------------------------------------------------------------------------------------2

Part A: Woolworths Ltd Strategic Analysis---------------------------------------------------------------2

SWOT analysis for Woolworths Ltd------------------------------------------------------------------------3

Key Capability Analysis---------------------------------------------------------------------------------------4

Major stakeholder analysis for Woolworths Ltd---------------------------------------------------------5

Assessment of Business Level Strategy---------------------------------------------------------------------6

PART B: Woolworths Ltd Strategic Review--------------------------------------------------------------6

Analysis of Key Strategic Plan Elements-------------------------------------------------------------------6

Stakeholder implication assessment for growing the Multi-channel strategy----------------------7

Stakeholder implication assessment for growing the Cost consciousness strategy----------------8

Strategy Map---------------------------------------------------------------------------------------------------10

Balanced Scorecard-------------------------------------------------------------------------------------------11

Conclusion-------------------------------------------------------------------------------------------------------12

Appendix--------------------------------------------------------------------------------------------------------13

Reference

PART A: Woolworths Ltd Strategic Analysis
Table 1: SWOT analysis for Woolworths Ltd
Strengths| Weaknesses|
* Solid capital support, strong brand name and relationship with suppliers that builds a highly effective and economic distribution channel * Distinguished and reliable brand reputation * Training and learning programs and leadership programs for both employees and executives * Wide-spread locations of supermarkets, liquor land shop and petrol sites| * Poor communication between employers and part-time employees. * Due to Woolworths’ informal hierarchical system between part time employees and full time employers, head of branch lacks communication with these part-time employees. This makes it difficult to make application of motivation to employees and finally leads to high staff turnover (UKESSAYS, 2012). * Squeezing price cut from the suppliers * To cut costs, Woolworths squeeze price cut from its suppliers taking advantage of its strong bargaining power. This potentially would destroy its relationship with suppliers (Mark & Madeleine, 2012). * Contradiction for the strategy * There’s a contradiction between cost leadership strategy (relative low costs) and fresh organic strategy (relative high costs). * Frequent recalls * Frequent recalls of variety of products will make customers query Woolworths brand image and damage its reputation.| Opportunities| Threats|

* More customers with access to the products due to the development of online shopping, with the overall online selling increased in every market (IBIS, 2012). * Cheaper inputs through import, as Australian dollar has been stronger against USD since 2009 (Colonial, 2012). * Shrinking of consumer disposal income caused by the ongoing financial crisis (e.g. the European debt crisis), especially for low-income families, which would give rise to customer preference towards low price goods (Stevens, 2012). * More diversified customer group because of the soar of immigrants, making importing goods from the original country of those customers more attractive along with the benefit of relatively cheaper inputs (National Communications Branch, 2011).| * Rivalry with Coles and online shopping. Consumers who prefer to Coles and online shopping increase significantly due to lower prices, greater product range and the strong Australian dollar. * Increasing...
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