Need to write a strategic analysis report of 2500 words. The strategic analysis

Question

Need to write a strategic analysis report of 2500 words. The strategic analysis need to be based on local Australian company. The report consists of two parts:

External analysis

1. Business background

2. What industry is it. 3. General environment analysis(economic , physical, sociocultural, global, technological, political/legal and demographic and work out what the important facts are. 4. The industry environment I.e. supplier power, buyer power, potential entrants, substitute products and rivalry like in this group? What capabilities do the relevant firms have? What threats do they represent? 6. Opportunities and threats? Part 2 internal analysis and proposal. 1. The firms resources , tangible and intangible. 2. Capabilities identification (explains the capabilities carefully to indicate what the firm really does) 3. Core competency analysis ( for each capabilities, indicate which of the four tests for a core competency it meets). 4. Propose a suitable information system solution that meets the chosen company needs. 5. Evaluate the proposed system and provide your recommendations

Explanation / Answer

Woolworths Strategic Assignment Help

This report involved a critical strategic analysis with respect to the strategy as carried out by Woolworths in achieving higher level of growth and development in its operations. The analysis indicated that the strategy of Woolworths has been to achieve higher level of growth in its operations, and this is positively sought by the company by way of satisfying its customers and also its employees positively. The analysis of the external environment affecting the Australian retail and Woolworths is carried out and based on the analysis, it is analysed that the external environment in the form of political and environmental conditions are affecting the performance of Woolworths directly. Apart from this, it is also assessed that the competitive condition is also extremely higher and these aspects are necessitating significant level of change and development in its strategy. The analysis of the internal environment conditions indicated that it is highly supportive in the context of Woolworths as the company has strong database of skilled employees, highly efficient infrastructure and good sourcing capabilities etc. All these aspects positively support the growth strategy of the firm in a positive way. The analysis leads to recommendations that Woolworths should focus towards higher overall innovation in its practices and also look towards further enhancement of the skills and abilities of its employees through considering the additional requirements for training and development.

Introduction

This report is mainly focused towards performing a critical strategic analysis of an organisation, and such organisation as selected is mainly Woolworths. Woolworths is an Australia supermarket retailer that has been one of the leading players in the industry. The company has achieved significant level of development and growth across the Australian retail and there are various such factors that have contributed towards its higher such growth. The major role has been played by the strategy of the organisation, and as a result, this strategic analysis report is likely to perform a critical analysis of such strategy of Woolworths in a positive manner. The strategic analysis therefore focuses towards evaluating the current business strategy of Woolworths so that further recommendations can be provided with regard to achieving improvement over its current strategy (Carysforth and Neild, 2000). There are certain important strategic tools that are considered in analysing the company’s current level of strategic position in the industry including an analysis of the internal and external environment conditions of the company. The strategic analysis of Woolworths is being carried out by way of applying important strategic tools such as PESTEL, Value chain analysis etc.

Strategic Analysis of Woolworths

An analysis of the role as played by Woolworths in the Australian retail industry indicates that the company has achieved significant level of dominant position in the Australian retail industry and the major reason leading to such highly efficient position of the company is mainly the strategies as pursued by the company. As for instance, the company has growth strategies in operations and as per its growth plans, the important strategic priorities of the company include extending its leadership in all its market segments, utilising its portfolio is maximising the shareholder value, maintaining a track record of growing business and looking for higher overall future growth of its business. The strategy of the company includes satisfying its employees and customers to the maximum possible extent and this is ensured through listening, acting and learning process so that it becomes possible to innovate and ultimately in achieving better customer satisfaction. The strategy towards employees indicates that the company aims at providing sound working environment conditions and good pay for the work as performed by its employees (Woolworths Strategy and Objectives, 2014).

External Analysis of Woolworths

This section of analysis is now focussed towards performing a critical analysis of the external environment conditions of Woolworths, and this is performed through the consideration of large number of tools as indicated below:

Macro Environmental Factors Affecting the Industry: The analysis of the macro environmental factors impact the industry conditions can be better analysed by way of applying important strategic analytical tools such as Porter five forces and PESTEL analysis as follows:

Porter Five Forces: The Porter five forces analytical tool assesses the current position of the entire industry and the ways in which different factors affect its performance conditions. The analysis of the Australian retail industry through the application of this analytical tool is performed as follows:

PESTEL Analysis: This is another important analytical tool in assessing the external industry environment conditions affecting an industry performance. The application of PESTEL analytical tool in assessing the retail industry performance is performed as follows:

The analysis of the external market environment conditions in respect to Australian retail industry and in particular, with regard to Woolworths has resulted into the identification that the strategy of Woolworths and its operations is highly affected by such external industry condition. They in turn have affected the strategy of Woolworths in particular in performing successful operations of its business activities. The external environment conditions have affected the need to perform innovation in order to satisfy the ever changing social trends within customers (Woolworths to create 10,000 new jobs and increase food sales by $2.5bn, 2013).

Internal Analysis: This section of analysis is now focused towards performing an internal analysis of Woolworths with a view to analyse the effectiveness of the strategies as pursued by the company. The internal analysis of the company is accompanied by the application of certain strategic tools in the form of SWOT analysis, value chain analysis etc. The application of these tools in analysing the strategic performance of the company is performed as follows:

SWOT Analysis: The SWOT analysis stands for strengths, weakness, opportunities and threats and the application of this tool in the context of Woolworths is performed as follows:

Value Chain Analysis: This is another important strategic tool in analysing the internal performance conditions of an organisation, as the value chain indicates about the primary and support activities that allows an organisation in supporting its operations. The primary activities mainly imply the inbound logistics, operations, outbound logistics and sales and service to customers. An analysis of the case of Woolworths indicate that the sourcing strategy as adopted by the company is aimed at achieving sustainable performance conditions whereby the company adapts local food sourcing strategy in order to ensure development and growth of local firms. This strategy of locally sourcing food is aimed at supporting the local producers and its purchasing process also indicates that it supports sustainable development. The products as sources are being processed and they are sold under the Woolworths brand across the shelves of the company in its supermarkets (Woolworths Local Food Sourcing Strategy, 2014).

These primary activities are supported by a large range of support activities of the company in terms of highly skilled human resources across the country, strong IT infrastructure condition and also the supporting supply chain systems as carried out across the organisation. The analysis of the people at Woolworths indicates that the people are at the heart of its business, and there has been specific culture and strategy that has been followed at Woolworths in supporting its customers. The company has a long term commitment to building internal capability and as a part of its commitment, it employs diverse people within its employee database. There has also been the provision of training for its employees that has been ensured by the company which contributes positively in accomplishing its strategic goals within the industry (Culture and Strategy of Woolworths, 2014). Apart from this, the infrastructure at Woolworths has been highly excellent and this is assessed from the fact that the company has strong presence throughout Australia and New Zealand and its built up large supermarket stores have been significant from the point of view of allowing the company in efficient serving its customers (Vedamani, 2003).

Conclusion and Recommendations

A critical strategic analysis of Woolworths has been carried out with a view to assess the important strategies that have been undertaken by the company and the performance of entire analysis has indicated that Woolworths is focused specifically towards attaining higher level of growth in its operation. This growth is mainly supported by its strong commitment towards its customers and the employees. The analysis of the external environment conditions as faced by the Australian retail industry indicates that the factors such as political condition in the form of governmental influences, changing social patterns and trends within customer and also the adverse economic conditions including highly competitive business environment conditions have all affected the strategy and growth of Woolworths in a negative manner. The analysis also indicated that the internal environment conditions have also impacted the growth potential of Woolworths and based on the overall strategies, the following recommendations are considered essential:

McDonald’s Australia Market Analysis

The paper basically discusses the situation of McDonald’s in Australia. The industry size and trends have also been explored in the paper with respect to the local market of Australia. Along with this, the financial performance of McDonald’s is discussed which confirms the fact that it is doing reasonable in the industry. Furthermore, a SWOT analysis is also conducted which reflects upon the opportunities which are available for the company moving ahead in the future. The competitive advantages of McDonald’s in Australia have been explained in detail. Finally alternative solutions have been provided for the company which can further improve the overall performance of McDonald’s in Australia.

Mcdonalds Australia Market Size & Trends

The market size of fast food industry in the Australian market has been growing quite considerably. As per the research conducted in 2016, the revenue that is being collected by Australian fast food industry is $6.6 billion. This indicates that a large portion of revenue is collected from the fast food market and it is all set to grow and expand further with the introduction of more products that are liked and preferred by the customers in the market. Along with this, the fast food market is also a competitive one where it has been offering the consumers with wide range of goods and food items which makes it attractive for the customers. Furthermore, the industry will have addition of more foreign outlets coming over in the Australian market and will be competing. Therefore, it can be said that the size of the market is quite attractive which will further grow provided the quality of the products is consistent and prepared within the standards of healthy eating (Hebden, 2011).

The trends in Australian fast food industry have been quite indifferent and people have been looking for alternative options to use while dining out. For instance, the diversification within the menus offered by different restaurants within the fast food industry has been changing quite significantly. This has resulted in changing the menu and expanding the core ingredients and also adding wide range of alternatives. For instance, chicken has been the major ingredient at KFC around the world. However, within the Australian market, KFC has introduced the Zinger Black Burger where the burger’s main ingredient has been pork. Moreover, other fast food retailers in the industry have also looked to make products that are specifically designed for the local market and they have been looking for diversity and different menus (Dunn, 2015).

For instance, McDonald’s in Australia has looked to offer meat pies and rolls to its menu during 2016. The change has been inevitable and the consumers have become rather educated with the fact that fast food is something that is unhealthy and should not be eaten regular, therefore the trends within the industry has changed and customer preferences has changed too. The trends in the fast food industry of Australia suggest that the customer have become price sensitive also. This means the products offered in the industry at a higher price are not accepted by the consumers and they tend to focus on buying foods that are of lesser prices. This indicates the fact that the fast food industry in Australia has been shrinking and to make it a lucrative market once again, the players have to focus on quality and healthier products for the consumers (Fraser, 2010).

Financial and Corporate Performance

None of the business is running without the profitability. Because the financial performance of the business is the important indicator which highlights that if the business is in the profit or it is facing the loss. If any investor wants to invest in the business look at the financial reports of the company. If the results are positive and he finds the potential in his investment he will prefer the stocks and shares of the company. It indicates that the how much important the financial growth is for any fast food company like McDonald’s. (Sidra & Attiya, 2013).

According to the Statista the revenue of the McDonald’s is in decreasing trend on the global level. Because if we talk about U.S it was 8.85 USD billion dollars, 8.65 US billion Dollars, 8.56 US Billion Dollars, 8.25 US billion dollars, & 8 Billion dollars in years 2013, 2014, 2015, 2016 & 2017 respectively if we see the specific data of USA the overall revenue of the Fastfood company has decreased from 8.85 US billion dollars 8 billion dollars in 2017.

If we talk about particular Australian Market the net income of the McDonalds Australia had been in USD million dollars 5,585 4,758   4,529   4,687   5,192   in year 2013, 2014, 2015, 2016 and 2017 respectively. This data is published on the morning star website a valid financial data website.

These facts and figures of the McDonald’s Australia shows that in 2013 it has the good net income but after that it decreased to 4758 US million dollars in 2014 and now in 2017 it again has increased to 5192 US million dollars. There is not consistency in the revenue of McDonald Australia but the profits are fluctuating in this regard.

After seeing the facts from the annual reports of the McDonald’s Australia it can be concluded that there is the impact of revenue and financial performance on the overall performance of the business. There are also some other factors that are affected by the financial performance like prices and investors relation etc. (Stephan & Andreas, 2015)

Mcdonalds Australia SWOT Analysis & Competitive Advantage

Strengths:

The major strength for McDonald’s is the quality of products it offers to the customers. Furthermore, the presence of McDonald’s in more than 12 countries is also strength for the company. The strong brand name in the market has been considered as a major difference at McDonald’s. The constant innovation and addition in the product line is another more successful strength for the company (McColl-Kennedy 2010).

Weaknesses:

The prices of products offered by McDonald’s as compared to other fast food restaurants are higher which a weakness for the company is. Moreover, the image of fast food as an unhealthy food item is a weakness which has affected the sales of McDonald’s. The employee turnover rate is quite high at McDonald’s which a weakness for the company (Dunn, 2015).

Opportunities:

The most obvious opportunity for McDonald’s moving ahead in the future for Australian market will be to introduce new products with the local taste. For instance, McArabia for Middle East market has been a successful induction, something similar for Australian customers can be a handy and lucrative opportunity. Along with this, another major opportunity for McDonald’s can be to reduce its prices and make it comparable with the local fast-food and international chains (Fraser, 2010).

Threats:

The major threats for McDonald’s come from the rival brands such as KFC, Subway, Hardees, etc. Along with this, the ever changing government rules and regulations is also a threat for the company. The increasing raw material cost is a threat for McDonald’s (Helms, 2010).

Competitive Advantage

The element of competitive advantage for McDonald’s has been its high quality products. The reason McDonald’s not only in Australia but it has been able to sustain its image and brand name by offering high quality fast food items across all parts of the world. The raw material used in the preparation of food at McDonald’s is considered to be of the highest quality which is why for a long period of time McDonald’s has been able to remain one of the top fast food brands in the world. The Australian market is no different and the company has been able to accumulate decent profits and revenues based on its performance which has led to increased revenues and sustainability in the market. Along with this, another major competitive advantage for McDonald’s has been its presence across Australia. From Canberra to Sydney from Perth to Melbourne, McDonald’s is everywhere. Therefore, the brand recall and recognition is also higher for McDonald’s as compared to other fast food chains in the country (Hebden, 2011).

Strategic Options

Strategic options are the alternatives available to the company to take an action to survive in the market or beat the competitors with the steps which cannot be copied by them easily. These are the critical challenges which managers or the business owners have to face and these decision are very much important for the growth of the business. Therefore these must be taken for the survival of the business. (Andrea & Silvia, 2014)

MacDonald Australia has many strategic options available which they can exercise to beat the market and achieve the optimal goals with these options. Some of them are given below:

Vertical Acquisition

On the international level McDonald has acquired many other firms by purchasing their shares but they also have the availability of option in Australia which they can do and expand their business operations to get more customer and increase the annual revenue by good amount. This will also enhance their customer base and people already are aware about the Quality of McDonalds overall the world. (Scott, 2012)

Social media marketing or social networking

As we have seen that the McDonalds is relying the old marketing tradition which are bill boards, brochures and some other techniques which are not enough for attracting the customers now a days in this modern world. It has been observed by the research and analysis that the McDonalds Australia is less involved in the social media marketing or the social networks. It is available strategic option to the McDonalds for the marketing they can take these steps and go to the different networks and attract the people who are unaware about the latest deals and make them their customer with the help of this option. (Scott, 2012)

Possible Recommendations

As we have researched the different variable related to the McDonalds Australia there are internal and external factors that affect the whole fast food industry including McDonalds. There are the possibilities and different alternative available to McDonalds which can help them to lead the Australian Fast food market. We recommend them to increase their annual profit by offering the different products and services to the customer which can unlock their potential. They should apply the different marketing strategies to attract more and more customer like Gamification technique is trending now days. Apart from that they can also exercise the available strategic options to lead the industry.

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