Report on Strategic Business Unit (SBU) of Woolworths

Added on - Feb 2020

Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 4 of 18 pages
Running head: STRATEGIC ANALYSISStrategic AnalysisName of the StudentName of the UniversityAuthor’s Note
1STRATEGIC ANALYSISExecutive SummaryThe main objective of this report is to analyze and evaluate various external and internalenvironmental factors for the new strategic business unit (SBU) of Woolworths. Woolworths isconsidering the development of new business that includes in the import and export of differentkinds of goods that is related with the retail business of Woolworths. For this reason, externaland internal business environment analysis is done. As a part of external analysis, PESTELanalysis and Porter’s Five Force analysis is done. As a part of internal analysis, SWOT analysisis done.
2STRATEGIC ANALYSISTable of ContentsExecutive Summary.........................................................................................................................1Background......................................................................................................................................3External Analysis.............................................................................................................................4PESTEL Analysis........................................................................................................................4Porter’s Five Forces Analysis......................................................................................................7Internal Environment Analysis......................................................................................................10Conclusion.....................................................................................................................................12Recommendations..........................................................................................................................13References......................................................................................................................................14
3STRATEGIC ANALYSISBackgroundStrategic Business Unit (SBU) refers to fully autonomous unit of the existing businesses.SBUs are generally small so that they can be flexible; and they are large enough so that effectivecontrol can be exercised on them. SBUs help the parent companies in responding variouseconomic changes and market situations on a quick basis. Thus, it can be said that SBUs are theimportant part of the business organizations (Resumption, 2016). The main objective of thisreport is to develop a new strategic business unit for one of the major Australian conglomerate,Woolworths. As per the provided situation, Woolworths is considering developing a new SBUthat will involve in the import and export of different kinds of goods that is related with the retailbusiness of Woolworths. For this reason, the SBU will provide the facility of storage andtransportation of those goods.Woolworths Limited is one of the major retailer conglomerates of Australian market andit is the second largest retailers in terms of revenues. The company was founded in the year of1924 and the founders of the company were Percy Christmas, Stanley Chatterton, Cecil ScottWaine, George Creed and Ernest Williams (Woolworths.com.au, 2017). The major businessdivisions and products of the company are supermarket, petrol, liquor, general merchandise,home improvements, hotels and others. From the below figure, it can be seen that Woolworth isthe market leader in terms of market share as the company posses 36.3% of market share worthAUS$ 32.6 billion. In the year 2016, the revenue and operating income of the company wereAUS$ 59 billion and AUS$ 1.6 billion respectively. Woolworths has an employee base of202,000 around. Hence, from the above discussion, it can be seen that Woolworths is a major
Desklib Logo
You are reading a preview
Upload your documents to download or

Become a Desklib member to get access