Bunning Company Analysis: External and Internal Analysis, Opportunities and Threats

This report provides an analysis of Bunning Company, covering external and internal analysis, opportunities and threats. It discusses the industry and competitive environment, core competency analysis, and suitable information system solutions. The report also provides recommendations for sales growth and vertical diversification.

C M A A A S SBUNNING O P NY N LY I

1 CONTENTS
2 Introduction..............................................................................................................................1
3 Part 1:.......................................................................................................................................1
3.1 (External Analysis)...........................................................................................................1
3.2 Business Background........................................................................................................1
3.3 What industry is it?...........................................................................................................2
3.4 Environmental Analysis:...................................................................................................2
3.5 Industry Environment.......................................................................................................3
3.6 Competitive Environment.................................................................................................3
3.7 Opportunities & Threats....................................................................................................4
4 PART 2.....................................................................................................................................5
4.1 Internal analysis and proposal...........................................................................................5
4.2 Tangible and Intangible Resources of the firm.................................................................5
4.3 Capabilities........................................................................................................................5
4.4 Core Competency Analysis...............................................................................................6
5 Suitable Information System Solution.....................................................................................6
6 Recommendations....................................................................................................................7
7 Conclusion................................................................................................................................7
8 References................................................................................................................................8

2 INTRODUCTION
The discussion of the report will highlight about the competitive strategy where the focus is on
the environmental analysis through use of political, economic and the demographic factors which
help in highlighting about the different network range which is set for the larger warehouse
stores. Bunning caters for the consumer and the commercial customers where the revenue is
based on handling the trust centers that are mainly operating in Australia and New Zealand. The
report will discuss about the competitive standards, with the tangible and the intangible resources
which have been used by the company to handle the system in an effective manner. Apart from
this, the company has been working on operations in Perth, Western Australia which includes the
expansion mainly into the retail sector.
3 PART 1:
3.1 (EXTERNAL ANALYSIS)
The analysis of Bunning company is based on handling the environmental standards, where
Australian leading stores are defined for marketing and properly researching about the qualitative
research. It is based on the secondary source of information that helps in working and focusing
on the credible and academic sources for understanding the strategies related to marketing.
3.2 BUSINESS BACKGROUND
Bunning is a company which deals mainly in the hardware products and works towards attracting
more customers for a better sale. The external analysis of the company highlights about the
profitability and the future growth of the company, where Bunning has been working on the
downstream vertical integration mainly to maximize the profit (Rosemann & Vom Brocke,
2015). It has been facing the lower to medium level of negative influences which are determined
by the remote environment. The company has been in a direct competition with Masters Home
Improvement where there are differences in profitability of both the companies.

3.3 WHAT INDUSTRY IS IT?
The company has been mainly dealing in the home improvement and the outdoor living sector
where the employees are approximately 33000 in number. It is considered to be one of the
trusted retail brands by Australia which is working on the improvement of home and the other
outdoor living sectors (Arrfelt et al., 2015). The company has an annual growth of 19% where it
has been working on increased interest mainly for the improvement of home and the Home
Rules. The company has been able to focus on planning to expand the warehouse with
investment in necessary resources and then handling the capital enabling growth as well.
3.4 ENVIRONMENTAL ANALYSIS:
Economic: The economic forms are related to the GDP per capital with inflation rate that
is for 2.5% where the interest rate is 2.75% and it also helps in balancing GDP which is 1589
Billion Dollars.
Socio-cultural: The sustainability in the plans with the less usage of water and energy
helps in managing the use of sources of products. There is a need to support the local
communications which help in working with proper diversification of the workforce. There are
46.5 % of the women and 53.5% of men in this sector.
Global: There are business operating in Australia and New Zealand at a global level.
Technological: The technological development is done through the online store setup
where there is an improvement in the inventory of stock levels where Bunning has been working
on handling IBM XIV storage systems for the handling of 54 TB of the available storage
(Wesselink et al., 2015).
Political & Legal: The political standards of the company tax rate are depending upon
how the unions are able to support the employees with proper and fair work standards. Here,
ACCC works on the enforcement of the consumer laws that will help in highlighting about the
WOHS which is important for handling the heavy icon labels. The setup for the training
programs is to ensure that the employees are completely aware of the right and the safety in the
workplace. The Trade Practice Act is determined effectively in this.

Demographic: The demographic standards for the company are set to highlight on the
people, who are able to speak English, Chinese, Italian and Greek easily. Here, there are people
who are 42% of male in number (Bamiatzi, Bozos, Cavusgil & Hult, 2016).
3.5 INDUSTRY ENVIRONMENT
Supplier Power :
There are factors related to how 1500 people are involved in handling the supply for Bunning,
where there is no need to determine about the pricing of the product as well. The source suppliers
and the local or the global level suppliers also have a upper hand in the market.
Buyer Power
The power of the buyer includes the competition with the cost focusing on the different strategies
of business. It includes the power of bargaining which is high. One must stay competitive by
offering the customers with the lowest pricing for the products.
Potential Entrants
The potential entrants are seen to be the real masters who are working jointly on handling
Woolworths with the improvement on obtaining 14% of the market home and the hardware share
as well (Saebi & Foss, 2015).
Substitute Products
The substitute of the products are determined where there is a major variety of products which
are not facing the proper determination of buying any product substitute even.
Rivalry Among the competitors
The rivalry is about the competitors that include Mitre 10, Masters, Home Timber etc.
3.6 COMPETITIVE ENVIRONMENT
The competitive analysis is based on how the companies are able to bring the change and gain in
dominating the place with the home and the hardware industry in Australia (Dunning, 2015). The
company has been focusing on attracting the female customers where the future strategy is
mainly involving about the expansion through the different regional and the metropolitan areas.

In Australia, it has been seen that there is a gain of 14% of the home and the hardware marketing
share with major strength that is related to the improvement of the retailers and the competitive
edge. The setup is determined through focusing on financial backing up of Woolworths and
America Lowes. The competition with Home Timber is about how the company is able to work
on the hardware and the professional advice with trading people and DIY enthusiasts (Wesselink
et al., 2015). The brand positioning for the Proper Hardware Store and then continued building
up the business growth has been effectively helpful with increasing the customer media
exposures. The focus is on the marketing where the niche market of the trading people is mainly
for the financial backing of Woolworths and then supporting the owners of the company. There
are issues related to the limitations in the consumer market and there is no online store for the
competition.
3.7 OPPORTUNITIES & THREATS
With the improved population in Australia, the major opportunities are related to how 42% of
aged people are between 25-54 who are working on the target market for Bunning. Australia has
a major customer base where there is a low inflation and the interest is related to lead the
consumers with the higher level of the income which is set at a disposable level. Bunning has
been able to work with the onsite water tanks which are for the use of only recyclable canvas
bags and then the sources and the other products are for the use of the sustainable factors. The
support comes over 42000 communities which act including the Salvation Army, ANZAC day
activities (Nason et al., 2018). The employees are also being trained for the operations and then
handling the online stores to direct the customers for the other alternative products. The
implementation of the new products at the PAR levels is mainly to make sure that the product is
never out of stock.
The threats are also related to the governmental agencies and how Bunning needs to work with
giving the employees a proper and a safe working environment. It is mainly to ensure about the
adhering factors which are for Australian business rules and the regulations. It has been seen that
the competitors are mainly focusing on the target marketing where there are areas related to how
Bunning does not tend to accommodate for the Master home improvement. There are issues with
the government regulations and the other expansions through acquisitions. The consumer trend

of online shopping with e-commerce tend to exit with the affordability of pricing where the
companies offer the attractive sales or discounts as well (Nason et al., 2018).
4 PART 2
4.1 INTERNAL ANALYSIS AND PROPOSAL
The internal analysis of the firm helps in highlighting about the company perspectives to handle
the different tangible and the intangible resources. It is mainly for the handling of core
competency where the analysis is to determine about system planning and working with better
capabilities as well.
4.2 TANGIBLE AND INTANGIBLE RESOURCES OF THE FIRM
The tangible resources help in listing that Bunning tends to exemplify the strong set of the assets
which are determined in the different areas. Bunning brand is strongly focusing on the home and
the industry of hardware. The development of the intangible resources tends to make it difficult
for imitating and then competing against the others. The resources of the firm are determined
with financial efficiency where there are offers that are seen to be running for properly handling
the distribution and the efficiency planning (Jarzabkowski et al., 2015). The wider knowledge is
about the retail industry where the brand and the concept are about focusing on utilising the
distribution and the other customer trends. They are important for handling the existing and the
other loyal customer base which will help in analysing the TRADE business. The company will
also allow to handle the resources with tracking and dominating the locational stance that is
based on working through the Internet shopping and the ability to see and adapt to the trends of
the current marketing (Kostova et al., 2016).
4.3 CAPABILITIES
There are full accredited regulations where the fostering is based on handling the Australian
trading among the people with improving the regional employment rate. There are forms and the
objectives that are related to work with handling industry standards with use of Bunning
selective products. The consideration is about the financial applications with improvement for
the management of brand and then its recognition which is important for handling the

accommodation with diversification in service industry (Nason et al., 2018). The key objectives
are based on the considerations where the financial implications are defined for the brand
recognition and then working on establishing Bunning as an Australian brand. The strategic
alliance is mainly to accommodate the diversification into the service industry with contract
exclusive Supplier Agreement. Here, the key objectives are mainly to maintain the growth and
then work on the improvement of the Outdoor Living Sector with career development for
Bunning staff for becoming the future owners of the industry.
4.4 CORE COMPETENCY ANALYSIS
The core competencies are based on working and providing the customers with the lower pricing
which is based on the products and the economies of scale. There are higher power of purchasing
where the major competitor in the market help in setting and forming the relationship with
proper alliancing and suppliers (Barney, 2017). The extensive supply chain management helps in
holding the number of suppliers that help in achieving the competitive pricing where Bunning is
set with stores nationwide. The functional areas include:
a. The Human Resource: It is mainly for the exceptional staff retention rate where the
recruitment staffing is done at the different ages. There are unique training and the
development methods which are used for properly working on the system planning.
b. Distribution: Here, the focus is on the freight delivery which will help in creating an
efficient delivery and then working on different amount of the suppliers as well. It will
help in improving the system setup (Lin et al, 2014).
c. Marketing: The strategies are defined to work on implementation of the business level
strategy where the target is determined for the marketing strategy as well.
5 SUITABLE INFORMATION SYSTEM SOLUTION
With the growing technological development, Trading Intranet Internet store processes are
effectively used where Bunning works with IBM Australia to handle the installation of an IBM
XIV storage system with the other hardware capabilities. It can be effective for working with the
setup of 54TB of the storage data that will be able to control the software programs with the
other management tools in an effective manner. The programs are set with the grid scale storage

system which enables in excelling and tuning for the free consistent performance and then
making it easy of use with exceptional data (Trigeorgis et al., 2017). The services are offered and
then worked upon for the dynamic workloads where there is simplification of the scale
management, including the multi-tenant environment through flexible consumption models
through using VMWare etc.
6 RECOMMENDATIONS
The recommendations are to work on the sales growth where the services are determined to work
on handling the training and the category development. The focus is also on handling the actions
which needs to be implemented immediately. The actions are categorised and worked upon
throughout the company. The vertical diversification is based on the acquisition of construction
with landscape business that includes how the companies are able to work and plan for handling
the Burnings for evaluating how the company will be able to adapt to the acquisition standards.
The focus is mainly to ensure about how one could achieve and setting with the strategy which
needs to be implemented through purchasing the business that operates Australia wide. There is
horizontal diversification with acquisition and then taking over to ensure about how the
companies do not become a threat for Bunnings. Hence, Australia wide factors need to be used,
where the community is set for the local school events which involves how Bunning needs to
work for looking to the different opportunities for getting involved in the charity events and the
other school functions. The local areas are for the handling of store locations which are set in
Australia.
7 CONCLUSION
The company needs to understand about working toward the growth of the Action Plan where
there is a need to provide better opportunities that will help in engaging with the other Aboriginal
youths to work together with running employees (Nason et al., 2018). ASHE tends to make use
of the sport techniques which are based on engaging the young and the predominant Aboriginal
people in a range of education and training programs. The mentoring programs and the other
retail skills are for working with day-to-day support which is provided to the youth.

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