David Jones Company Final Strategic Plan Reports

This report examines historical background of David Jones Company. This report also examines PESTEL alongside Porter’s 5 Forces Model that the company uses to support its operations. Other elements being addressed on this report comprise of corporation’s market size along with trends, it's financial along with performance of corporate, and its tactical options.

Running Head: DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 1
David Jones Company Final Strategic Plan Reports
Name:
Institution Affiliation:

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 2
Executive Summary
David Jones Limited controls range of networks of departmental stores mainly in
Australia. Presently, this corporation comprises of about thirty-seven stores situated in different
Australian states along with Australia territories. The Australian department store organization is
mainly dominated by big stakeholders that are Myers together with David Jones, as well as
smaller and independent corporations. This report examines historical background of David
Jones Company. This report also examines PESTEL alongside Porter’s 5 Forces Model that the
company uses to support its operations. Other elements being addressed on this report comprise
of corporation’s market size along with trends, it's financial along with performance of corporate,
and its tactical options. Further, this report also assesses David Jones Company’s strategic
options, business strategy, its corporate strategy, and innovation strategy. The examination of
David Jones Company concludes by examination of its monitoring as well as control of prospect
performance before given general conclusion on the addressed issues within this strategic plan
report.

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 3
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Historical Background of David Jones Company...........................................................................4
How David Jones Company use PESTEL along with Porter’s 5 Force Model...............................5
Market Size and Trends of David Jones Company.........................................................................7
Financial and Corporate Performance of David Jones Company....................................................7
Strategic Options of David Jones Company....................................................................................8
Business strategy of David Jones Company....................................................................................9
Corporate strategy of David Jones Company..................................................................................9
Monitoring and Control of Future Performance of David Jones Company..................................11
References......................................................................................................................................12

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 4
Introduction
David Jones Limited operates in the departmental industry within service sector in
Australia. It is one of most known retailer store in different markets within Australian market. It
put emphasis on style with quality to attract huge base of clients. While the retail business
operations changed in several manners, David Jones upholds its loyalty to offer superior products
with establishment of advance products or trademarks (Mutiara, Zakaria, & Anggraini, 2018).
Throughout constant renovation of stores as well as enduring opening, it has modern stores
across main cities in Australia, David Jones Limited presently has been able to establish other
thirty-seven new, elegant stores situated in Australian territories alongside states (Lloyd-Jones,
2016). Besides, David Jones Company carries out the operational departmental stores by
operating on different products. For instance, its product portfolio comprises of fashion of ladies,
kid’s wear, menswear, travel goods, shoes, products of beauty, stationery, travel yields, toys, as
well as electrical appliances among other useful products. The Company also operates by
offering interior decoration that comprises of window treatments and furniture’s to different
customers around Australian markets. The management of this company had brought several
changes in its operations to make it achieve its desired future of being one of the greatest store
chains across different markets within Australian community. Therefore, primary target of this
examination is to address David Jones’ Company final strategic plan report.
Historical Background of David Jones Company
David Jones Pty Company is currently operating as David Jones that is always
abbreviated as DJs. It is the Australian Department of up market store that has been possessed by
South African trading group known As Woolworths Holding Corporation since early days of
2014 (Lloyd-Jones, 2016). The company (DJs) was established by David Jones in 1838. The

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 5
founder was a Welsh merchant as well as future politician after he moved to stay in Australia.
This company remains to be aged that is continuously a functioning department store in the
entire global society that is still operating under its original title. However, in 1980, the Adelaide
Steamship Corporation acquired a substantial interest to have a share in David Jones an idea that
results in culmination in the entire turnover (Palmer & Flanagan, 2016). Besides, the recession of
the early days of the 1990s caused the department store assets to be floated as “David Jones
Limited.” For the subsequent twenty years, this corporation went through turbulent operation
times that eventually resulted to the discussion of a merger with Myer and then in 2014 the
takeover by Woolworths Holding Limited which is the South Africa retail group. However, in
2016, the South Africa retail group (Woolworths) sold the iconic 1938 Market Street Store
before announcing the relocation of DJs’ headquarter to Melbourne a city within Australia. In the
present time, David Jones Limited has over forty-five store situated in most states and territories
of Australia where it had relocated its operations (Johnson & Tuckett, 2017). The stores of DJs
are found in every state and territory of Australia except in Tasmania together with Northern
Territory. Nevertheless, the major competitor of DJ is the larger up market department store
chain known as Myer.
How David Jones Company use PESTEL along with Porter’s 5 Force Model
PESTEL together with Porter’s 5Five Force Model that is used by David Jones Limited
comprises of different environmental aspects that influence operations of different departments
within the store. The corporation uses PESTEL model to examine different issues that arise from
environment that affect its present and future operations. The company uses PESTEL analysis
model as appropriate tool to strategically analyze what impact different outside factors such as
political, financial, technological, legal, social, and environmental in its operations. Besides,

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 6
Porter’s Five Forces is used by DJs to access its level of competition. It is clear that
competitiveness of any company is dependent on these fundamental forces. Hence, DJs uses
Porter’s 5 Forces model to determine where its operations are cumulating strength of different
forces in order to determine its attractiveness as well as profitability during operations (Tsai &
Liao, 2016). The company also uses these five forces to identify strategic position of organization
so as to safeguard its operations against or influences these forces as to its advantage. The focus
on such forces helps the company in understanding the major root causes of competitive pressure
in its operations around Australian marketplaces (Brinckmann & Kim, 2015). By use of Porter’s
Five Force model, David Jones Limited and its management are have to understand issues
pertaining rivalry between rivalry in the market, the threat of entry, bargaining power of different
users, threats caused by substitutes in markets, and bargaining authority of suppliers that
influence its operations.
In other instances, DJs Corporation uses Porter's 5 Forces to learn of different threats that
new entrants in their business can cause. The company through such analysis always ensures that
they switch costs of the operations by focusing on structural market traits like the integration of
the supply chain. The use of Porter’s analysis has remained to be the best way that David Jones
Limited is used to identify different risks in its operations (Brinckmann & Kim, 2015). The
analysis also helps the company to understand their competitors and how their actions can affect
its future planning and the bottom line of operation. Hence, through Porter’s analysis, DJs is
capable of understanding different competitive forces and the overall structure of the
developmental store as significant for an effective process of making strategic decisions.

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 7
Market Size and Trends of David Jones Company
The company is currently the third largest department organization in austral with
revenue of one point seven billion dollars by 2003. DJs operate over thirty stores around
Australia. However, bulks of its functions are situated on the eastern coastline of Australia
(Alfonso Perez, 2017). Nevertheless, DJs has recovered presence within western part of
Australia with buying of Perth-established Ahrens in early days of 1999. In the present days,
David Jones Limited has over forty-five stores located in most states and Australian territories.
Expansion of such stores has enabled the company to expand its consumer base that in turn
increases its business operations in different markets. Furthermore, involvement of Woolworths
in operations of DJs has made the corporation to improve on its revenue despite few difficulties
in change in operations (Rutkowska-Ziarko, 2015). The collaboration has seen David Jones
Limited to report a 0.6 percent improvement in comparable sales in the past few weeks of its
most recent reporting duration. From different accounts, it is clear that the company’s total
yearly sales for the period that ended in July 2011 saw a drop of four point four percent from
previous financial year.
Financial and Corporate Performance of David Jones Company
David Jones Limited’s profit plunged fifty percent in financial year of 2018. The value
was due to underscoring tough situations in department store sector, but rebound in same-store
saves suggested the worst might be over the retailer along with its South Africa counterpart. The
corporation has had significantly disruptive as well as tough financial times (Machdar, 2017).
With about fifty-eight percent drop in operating revenue of department store, the drop had been
recorded in 2018 to be over forty-five million dollars when compared with profit made at the end
of fiscal year of 2017. DJs have attained flat gross profit of about eight hundred and twenty

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 8
million dollars, although the department store experienced cases of increased expenses. The
increment in amount of expense was due to store openings and new formats of food along with
impact of transformational initiatives (Elbarrad, 2014). Such initiatives comprise of online
platform and the flagship refurbishment of Elizabeth Street alongside decreased operating
margin of profit from six point three percent the previous financial year of 2017 to three point
eight percent.
Strategic Options of David Jones Company
David Jones Limited uses different options of initiatives to attain its set mission within
Australian markets. In order to efficiently manage different problems and challenges that relate
to business, DJs utilizes commercial software so that mechanized replica can assist it to deal with
its administrative operations along with efficient process. Since functioning of departmental store
is quite enormous in nature and comprise of different product line, business understands the
importance of strategic use of information system in operations (Larsen, 2017). The corporation
works by having several choices accessible with it to mechanize its operational actions like using
business software, favoring convention software, or utilizing ERP in trade activities. Besides,
DJs has the strategy of using the readily available as well as well-organized commercial software
that is exclusive outfitted desires together with the requirement to be accomplished in the process
(Trigeorgis & Reuer, 2016). David Jones Limited operates through a strategy of distributing
responsibilities across a committee of the executive to implement group policy. The committee is
also responsible for managing different corporate processes and reviewing strategy and resources
used within the corporation (Osoro & Nkurunziza, 2016). The management clearly defines the
relationship between the board and CEO as a way of ensuring that there is no mixed up in
operations.

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 9
Business strategy of David Jones Company
The CEO of this corporation has launched new merchandise as well as finance systems to
improve the business operation. Such business strategy has enabled the company to attain better
decisions that can be used in buying its products as well as improving on how it plans its
operations. Every department has new teams that are working on new systems that enable DJs to
operate as real retailer within Australian markets. The other business strategy of this
departmental store is the focus on private label and house brands (Jones, 2016). It has also
concentrated on dealing with new loyalty and credit card programs that improve its accounting
for every product that they sell. Besides, DJs work changing staff so as to ensure that they
become productive in their operations. It also operates its business by concentrating on Asian
customers as a way of broadening its market to new regions. The company works by introducing
new initiatives that comprise of increased prominence of private label as well as housed brands
as a way of meeting diverse desires of customers. The management of DJs concentrates on
optimizing the real estate footprint to deal with a range of products (Larsen, 2017). The idea
enables departmental store to further reduction of thirteen percent as the management focus on
bringing the size of stores down and removing underperforming floor space.
Corporate strategy of David Jones Company
Corporate strategy of DJs remains to be the manner in which the company's trading
operations strives to develop value. It also strives to develop an exclusive advertising advantage
as well as confine the highest share of the market. Without appropriate trading operation along
with marketing efforts, business of DJs always become to mix its operations in hope of creating
extra profits. Some of the corporate strategies of David Jones Limited comprises of growth
platform strategy that consists of horizontal integration. Other strategies within growth platform

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 10
strategy within its operations comprises of vertical integration, diversification, penetration of
market, and global strategies for expansion (Lahtinen, Kuusela, & Yrjölä, 2018). Other comprise
of consolidation ideas for growth. Growth platform strategies within operations of DJs seek to
scale revenues to the next level of revenues. The idea usually needs the management of DJs in
collaboration with Woolworths Corporation to find advanced demographics to penetrate.
Besides, the idea can help the company to roll out new competitive products to its targeted
markets. Formation of cooperative strategy for partnership by DJs has helped it to take advantage
of different strategic alliances with Woolworths as way of improving operations (Trigeorgis &
Reuer, 2016). Such corporate strategies have enabled the management of DJs to review their
operations so as to achieve success in every planned activity.
Innovation strategy of David Jones Company
The company has the innovation strategy that it uses to encourage advancements in
service of technological usage. It concentrates on attaining its innovative strategy by investing
funds in ideas that deal with research and development in operations. Davis Jones Limited has
been able to create unique products that range from beauty products to furniture with tremendous
success (Dmitrieva, 2017). Therefore, innovative strategy of DJs is that important connection
between efforts of new developments of product and general business strategy that defines key
objectives, priority initiatives, overall direction, and expected pace of advancement. Different
elements of innovative strategy of David Jones Limited comprise of ideal flow of operations that
guide leadership teams in creating insightful outcomes. The innovative strategy of this company
comprises of the analysis of competitiveness and technological environment of its operations.
The other innovative strategy of this company focuses on improving its external opportunities
together with challenges (Trigeorgis & Reuer, 2016). Hence, innovative strategy of David Jones

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 11
Limited remains to be the essential plan that is used by this organization to enhance its
technological usage in operations.
Monitoring and Control of Future Performance of David Jones Company
The strategy of monitoring, as well as control of DJs, remains to relate to process of
measuring performance of organization. It comprises of ideas of company taking corrective
action to assure that business operation is on track to attain different goals in its operations
within Australian markets (Ervin, Wu, Khanna, Jones, & Wirkkala, 2016). The management of
DJs concentrates on working on ideas that fulfill their enduring goals by focusing on their
immediate objective that needs to be met first if the lasting objectives are to be attuned. The
practices of monitoring and control within David Jones Limited comprise of different operations
that look for different indicators of how business of the corporation is progressing in the short-
term. The practices also focus on how the present progress in operations of an organization will
influence long-term business performance of the developmental stores in newly established
markets in Australia (Jayakumar, 2017). Through practices of monitoring and control, DJs is
above to take advantage of opportunities in business environment to enhance the situation. The
idea helps management in making much-needed changes when alternatives are present so as to
avoid management of crisis in operations (Ramachandran, 2017). The practices of monitoring
and control in operations of DJs consist of ideas of creating plan review dates, creating tracking
system, and coordinating business and plans of marketing in an effective way. All these practices
enable the management of developmental store in collaboration with its partner Woolworths to
make different changes that are necessary to improve its operations.

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 12
References
Alfonso Perez, G. (2017). Company Size Effect in the Stock Market of Thailand. International
Journal Of Financial Research, 8(3), 105. doi: 10.5430/ijfr.v8n3p105
Brinckmann, J., & Kim, S. (2015). Why We Plan: The Impact of Nascent Entrepreneurs'
Cognitive Characteristics and Human Capital on Business Planning. Strategic
Entrepreneurship Journal, 9(2), 153-166. doi: 10.1002/sej.1197
Dmitrieva, A. (2017). The Role Of Marketing In Shaping Innovation Strategy Of The Company.
Business Strategies, (1), 32-36. doi: 10.17747/2311-7184-2017-1-32-36
Elbarrad, S. (2014). Corporate Governance Disclosure in Annual Financial Reports and
Company Performance - Evidence from Saudi Arabia. International Business Research,
7(11). doi: 10.5539/ibr.v7n11p51
Ervin, D., Wu, J., Khanna, M., Jones, C., & Wirkkala, T. (2016). Motivations and Barriers to
Corporate Environmental Management. Business Strategy And The Environment, 22(6),
390-409. doi: 10.1002/bse.17562
Jayakumar, T. (2017). Corporate social innovation: an Indian moving company drives industry
change. Journal Of Business Strategy, 38(6), 59-68. doi: 10.1108/jbs-10-2015-0107
Johnson, S., & Tuckett, D. (2017). Narrative Decision-Making in Investment Choices: How
Investors Use News About Company Performance. SSRN Electronic Journal. doi:
10.2139/ssrn.3037463

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 13
Jones, A. (2016). Historical Background and General Observations. Almagest, 7(1), 36-67. doi:
10.1484/j.almagest.5.110733
Lahtinen, S., Kuusela, H., & Yrjölä, M. (2018). The company in society: when corporate
responsibility transforms strategy. Journal Of Business Strategy, 39(4), 11-18. doi:
10.1108/jbs-05-2017-0069
Larsen, D. (2017). Strategic Plan Final Report. Journal Of Neurologic Physical Therapy, 41(2),
139-140. doi: 10.1097/npt.0000000000000173
Lloyd-Jones, C. (2016). The History of David Jones Limited. Bulletin Of The Business Archives
Council Of Australia, 1(1), 1-10. doi: 10.1111/aehr.110016
Machdar, N. (2017). Corporate Financial Performance, Corporate Environmental Performance,
Corporate Social Performance And Stock Return. Jurnal Manajemen Dan
Kewirausahaan, 19(2). doi: 10.9744/jmk.19.2.118-124
Mutiara, Y., Zakaria, A., & Anggraini, R. (2018). The influence of company size, company
profit, solvency and CPA firm size on audit report lag. Pressacademia, 5(1), 1-10. doi:
10.17261/pressacademia.2018.779
Osoro, J., & Nkurunziza, D. (2016). Assessment of Inventory Control on the Performance: A
Case Study Fair Construction Company. Scholars Journal Of Economics, Business And
Management, 3(7), 400-405. doi: 10.21276/sjebm.2016.3.7.6
Palmer, T., & Flanagan, D. (2016). The sustainable company: looking at goals for people, planet
and profits. Journal Of Business Strategy, 37(6), 28-38. doi: 10.1108/jbs-09-2015-0095

DAVID JONES COMPANY FINAL STRATEGIC PLAN REPORTS 14
Ramachandran, D. (2017). Monitoring Company Performance in the Presence of Risk: YTL
Land & Development Berhad. SSRN Electronic Journal. doi: 10.2139/ssrn.2949082
Rutkowska-Ziarko, A. (2015). The Influence of Profitability Ratios and Company Size on
Profitability and Investment Risk in the Capital Market. Folia Oeconomica Stetinensia,
15(1), 151-161. doi: 10.1515/foli-2015-0025
Trigeorgis, L., & Reuer, J. (2016). Real options theory in strategic management. Strategic
Management Journal, 38(1), 42-63. doi: 10.1002/smj.2593
Tsai, K., & Liao, Y. (2016). Sustainability Strategy and Eco-Innovation: A Moderation Model.
Business Strategy And The Environment, 26(4), 426-437. doi: 10.1002/bse.1926