Strategic Management for the International Hospitality Industry

Strategic Management 0
Strategic management for the
International Hospitality Industry
Student’s Name
8/11/2019

Strategic Management 1
Executive Summary
Strategic management is a management approach that guides the organization and helps it in
becoming proactive towards the changes in the internal and the external environment. It
assists the company to be responsive towards the dynamic environment and ensures the long
term survival of the business. It includes the development of the strategies that allow facing
the competition and sustaining the competitive advantage through the involvement of timely
actions. This report will reflect upon the external and internal environmental analysis of
Woolworths to analyze the fruitfulness and the effectiveness of the company. It is analyzed
that the company faces huge competition from Coles and the new Entrants like Aldi and
Costco. To overcome the competition and sustaining of the competitive advantage it will
cover recommendations for improving the strategic actions of the company. It will also
reflect upon the vision and goals of Woolworth.

Strategic Management 2
Contents
Introduction................................................................................................................................3
External environmental analysis................................................................................................3
Porter’s five forces.................................................................................................................3
Pestle analysis of Woolworths................................................................................................4
Value Chain analysis..............................................................................................................5
Strategy formulation and choice................................................................................................6
Recommendations and Conclusion............................................................................................8

Strategic Management 3
Introduction
Strategic management is considered as a management approach that focuses on
planning and monitoring of the organization activities. It involves the development of
strategies and introduces corrective measures to sustain the competitive advantage of the
company. It also helps in guiding the organization to survive in the dynamic business
environment (Desai, 2019).
The additional paragraphs of the report will reflect upon external environmental
analysis of Woolworth which is recognized as a large integrated provider of leisure and retail.
It will also reflect upon the core competencies of the company through the use of value chain
analysis. It will cover the vision and goals of the company and will further provide
recommendations for the strategic growth of the company.
External environmental analysis
Porter’s five forces
This analysis helps the company in knowing the structure of the industry as well as
knowing the position that proves to be profitable but also helps in minimizing the threat.
 Bargaining power of buyers: In Australia, retailing stores are seen to be
homogenous. Besides this, several retailing supermarkets are present due to which
customers have low switching cost. In this way, the bargaining power of the buyers is
high (Pickles, Barrientos & Knorringa, 2016).
 Bargaining power of suppliers: the bargaining power related to suppliers is different
that depends on the brand name as well as the size of the supplier. Due to this, it can
be high as well as moderate (Rajabian, Tabesh, Batt & Butler, 2016).