Woolworths Strategic Analysis
Introduction
Woolworths Limited is a retail company made up of a range of businesses that provide customers with quality, range and value. This report focuses on two parts, Woolworths Ltd Strategic analysis and strategic review in order to provide advise to the Board and Senior Management of Woolworths to obtain a higher achievement in 2012. In the first part, the report demonstrates analyzing the business environment by SWOT analysis, key capabilities, major stakeholder interests and identification of generic business level strategy of supermarket unit. Then the second part provides analysis on two strategies from internal and external environment and the Corporate Balanced Scorecard analysis contributing better implement their strategic plans.
1. SWOT Analysis Internal | External | Strengths | Opportunities | * Wide range of trading divisions * Location advantages * Global sourcing and stable supply chain * Experienced management team | * Woolworths is a listed company. * Widespread of internet * Increasing immigrating population * Acceptance of credit card payment | Weaknesses | Threats | * Management risk of new appointed managers * Increasing funds of new investments * Low short-term profit * Higher inventory cost | * Regulations and nature disasters in new operating sites * The rise in interest rates * Challenge of forceful retailers’ entry * Strong Australian dollar |
Strength
Woolworths has many trading divisions in Australian and New Zealand, which cover wide range of industries such as supermarkets and petrol to ensure its EBIT growth. The sites of supermarkets are across Australian and New Zealand located in most of the shopping centers, so it is convenient for customers to find their nearest one, which can increase customers’ satisfaction. In addition, the expending global souring and international logistics capabilities ensure the stability of supply chain. It provides cost advantage through other
Woolworths Limited is a retail company made up of a range of businesses that provide customers with quality, range and value. This report focuses on two parts, Woolworths Ltd Strategic analysis and strategic review in order to provide advise to the Board and Senior Management of Woolworths to obtain a higher achievement in 2012. In the first part, the report demonstrates analyzing the business environment by SWOT analysis, key capabilities, major stakeholder interests and identification of generic business level strategy of supermarket unit. Then the second part provides analysis on two strategies from internal and external environment and the Corporate Balanced Scorecard analysis contributing better implement their strategic plans.
1. SWOT Analysis Internal | External | Strengths | Opportunities | * Wide range of trading divisions * Location advantages * Global sourcing and stable supply chain * Experienced management team | * Woolworths is a listed company. * Widespread of internet * Increasing immigrating population * Acceptance of credit card payment | Weaknesses | Threats | * Management risk of new appointed managers * Increasing funds of new investments * Low short-term profit * Higher inventory cost | * Regulations and nature disasters in new operating sites * The rise in interest rates * Challenge of forceful retailers’ entry * Strong Australian dollar |
Strength
Woolworths has many trading divisions in Australian and New Zealand, which cover wide range of industries such as supermarkets and petrol to ensure its EBIT growth. The sites of supermarkets are across Australian and New Zealand located in most of the shopping centers, so it is convenient for customers to find their nearest one, which can increase customers’ satisfaction. In addition, the expending global souring and international logistics capabilities ensure the stability of supply chain. It provides cost advantage through other