Global Scan and Audit Analysis of a Business Entity
Added on 2019-11-26
11 Pages3244 Words218 Views
Running head: International strategy International strategy
International strategy Table of ContentsIntroduction.................................................................................................................................................3Audit analysis and Global scan....................................................................................................................3Woolworth Limited’s Strategic capabilities................................................................................................6SWOT analysis............................................................................................................................................7Risks involved in the Chinese and Indian markets......................................................................................8Recommendation.........................................................................................................................................8Conclusion...................................................................................................................................................8References.................................................................................................................................................102
International strategy Introduction Woolworth’s limited company has been selected for the report.The report consists of the global scan and audit analysis and this required to be done for expanding the business entity to a global level in the chosen destinations that are China and India. Woolworths Limited is the biggest retailing Australian company. It is the second leading company in Australia by revenue. It was the ninth biggest retailer across the world in 2008. It operates its business in Australia and New Zealand. The company was founded in 1924 and it’s headquarter is located in Bella Vista, New South Wales Australia. The profit of the company is approx $-1.2 billion(2016) and revenue of the company is approx $59 billion(2016). There are approx 202,000 employees working in the company. It is the second largest company in New Zealand. Audit analysis and Global scan Woolworths is planning to expand its business operations and activities to global of China and India. Therefore, the marketing team, sales executive, and management are planning to evaluate and measures the opportunities and risk in the selected countries. The opportunities and risk in China and India are discussed below (Bayne, Schepis & Purchase, 2017). Chinese market After the various researches, it has been analyzed that China is the biggest country in the world. It is one of the biggest countries with a highest population and economy. It is using effective policies, rules, strategies and norms for effective business operation. The country is using effective technology and resources to gain the competitive advantages. It has been analyzed that China is first largest country in terms of population and it is the highest populated country in the world (Lee et al, 2015). The country uses effective human resources and capital for the successful and growing economy. It is the biggest producer of the various brands and it maintains the low labor cost. The current GDP of the company is approx $11.8 trillion and the growth rate is approx 6.7%. The country is the world leader in technical innovation in textile manufacturing, producing of steel, aluminum and agricultural revolution. China is using the different modern technique for business. Now it has been noted that Woolworth’s limited 3
International strategy company can expand its business easily through its effective policies and technology. It has been analyzed that high population is the major factor for the company to expand its business in such country. The high population will help to increase in demand for the products. Due to the low labor cost, the company will manage the workforce for the channels at very low cost. Efficiency and effectiveness will also help to expand the business operation of the company. The company can utilize the available resources in very effective way. It is the other benefit for the company (Lynch, 2014). Indian marketThe company can also expand its business activities and operation in Indian destination. Thus, the company needs to analyze and measure the risk and opportunities of the Indian market.The business of the company depends upon the risk and opportunities of the country (Gunjal, 2017). Thus, before starting the business operation in the foreign country, the marketing team and management of the business entity should analyze and identify the risk and opportunities available in the foreign market (Guha et al, 2014). The business entity also evaluates the environment of the country. Environmental factors affect the business operation of the company and these factors play a significant role in growth and success of the company. It has been noted that Woolworths has a great scope and opportunities to establish its supermarket in the Indian market. It has been noted that India is the second largest country in terms of high population. It will also help to enhance and expand the business of the organization. The GDP and income level of the country are favorable in India. Thus, the current GDP of the country is approx $2.454trillion which has been increased by 7.2% as compared to the last year (Gereffi & Luo, 2015). After the various researches, it has been analyzed that agriculture is the primary sector of the country which generates higher revenue for the Indian economy. Industrialization and modernization also influence the business of the company (Jie, Parton & Chan, 2015). Globalization also a significant factor to show the foreign countries interest in investment in suchcountry. It will help to increase the GDP of the country (Grant & Jordan, 2015). The policies, strategies, and norms which are implemented by the government will also provide the financial support to Woolworths to expand its business. Further, the service sector is also considered the biggest sector to achieve the goals and objectives of the company. Now it has been observed that 4
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