Strategic Management | Report 1

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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STRATEGIC MANAGEMENT
Executive Summary
The report has thrown light on analyzing the different kinds of strategic analysis of
Woolworths Company in the complex business environment. Woolworths is one of the
Australian supermarkets which is one of the most successful retailers in comparison to the
other retailers in the market. With the assistance of the PESTEL, Porter’s Five Forces Model
analysis and Value Chain Analysis, it can be seen that there are different kinds of external
and internal opportunities and threats which can affect the growth of the company in the
future. Through the recommendations, there has been introduction of the recommendation for
and against the strategy which helped in understanding the status of the company in the
competitive market. Lastly, the most appropriate PESTEL analysis elements include the
economic and socio-cultural aspects which has been able to provide the audiences with the
idea relating to the customers tastes and preferences that has affected the growth of company
in the future in contrast to the other competitors.

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STRATEGIC MANAGEMENT
Table of Contents
Executive Summary...................................................................................................................1
1. Introduction............................................................................................................................3
2. Evaluating the organization’s environment...........................................................................3
a. External Analysis...............................................................................................................3
b. Internal Analysis................................................................................................................5
3. Analysis of competitive advantage........................................................................................6
a. Discuss competitive rivalry................................................................................................6
4. Strategy formulation and choice............................................................................................7
a. Vision.................................................................................................................................7
b. Goals..................................................................................................................................7
c. Initiatives – cost leadership vs differentiation....................................................................8
5. Recommendations and conclusions.......................................................................................9
a. With rationale for support of strategy................................................................................9
b. With rationale for critique of strategy..............................................................................10
References................................................................................................................................11

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STRATEGIC MANAGEMENT
1. Introduction
Woolworths Group is one of the Australian supermarkets which is basically owned by
the Woolworths Group and the company was incorporated in the year 1924. It is
headquartered at New South Wales, Australia and the employees who are working with
Woolworths Group till the year 2018 is 115000 (Woolworthsgroup.com.au, 2019). In
addition, it can be seen that there has been huge increase in the revenue which has been
earned by the company is A$56.726 billion till 2018. Moreover, the retailer is famous for
selling the different kinds of newspaper, groceries along with baby and home care products.
Furthermore, mission of the organization is to satisfy the various demands of the customers
through delivering the customers with proper quality-based products and services
(Woolworthsgroup.com.au, 2019).
2. Evaluating the organization’s environment
a. External Analysis
Porter’s Five Forces Model Analysis
Threat of Substitutes- It is high in case of Woolworths as it faces huge indirect kind
of competitors such as from indirect competitors such as convenience stores, specialist
grocery stores along with other small grocery stores (Zhao et al., 2016). From the different
evidences, it can be suggested that indirect competitors are the different viable substitutes to
the company Woolworths and it can pose serious type of threats in future.
Rivalry Among Existing Competitors- It is high as there are huge numbers of strong
players in the market and there is no such differentiation available due to the generic nature
of the products and services which are being delivered (Uhl & Gollenia, 2016). Therefore, in
such scenario, the competition is based on price and the major competitors of Woolworths