Strategic Management for David Jones: Market Trends, Analysis, and Recommended Growth Strategy

Business Environment 1
Strategic Management

Business environment 2
Executive Summary
Strategic management is the tool which is used to ensure the planning on continuous basis,
evaluation of all the areas, monitoring of strategies, and required analysis. This tool is deemed as
most important tool in terms of achieving the goals and targets of the organization. This type of
management mainly ensures the implementation of the strategies framed by the organizations in
effective manner, and it also evaluate whether the chosen strategy is suitable for the organization
or not. In other words, it is considered as the initiative taken by the top management of the
organization in terms of meeting the goals defined by the owners. Strategic management based
on the resource evaluation and the analysis of the internal and external business environment in
which company operates its business.
This report is prepared in terms of the David Jones (Department stores in Australia, as structure
of the report mainly highlights the market size & trends, performance related to the financial
aspects and corporate aspects, strategic options, recommended strategy, final strategy
implementation, and monitoring and controlling of the future performance.

Business environment 3
Markets Trends & Analysis
Australian retail industry is deemed as biggest contributor of the nation’s economy and it is
classified in terms of different products such as food items, apparels, beauty products, etc. This
market is also classified in context of the retail stores and these stores mainly offers fashionable
and branded goods such as apparels, bags, footwear’s, etc. Retail market of Australia is deemed
as biggest employer of the Australia, and it gives number of career opportunities (Mordor
Intelligence, 2017.
David Jones department is the big departmental chain of Australia and also the oldest one, as this
store sells best and most exclusive goods to their customers. There are almost 35 stores in
Australia which are operated by the organization in terms of giving the best services to their
customers, and they also owned two warehouse outlets. David jones also initiate online offerings
to their customers, which means, they sell their products online to their customers and offer best
products across all the fashionable brands.
It is necessary to understand the actual market size and trends of the retail industry of Australia,
and in this context current data is stated below (IBIS World, 2018-
Profit Businesses Employment
Annual
data
$557.8bn 182145 1933977
Growth between the
period 12-2017
1.1% -2.1% -0.1%
Forecasted Growth for
the years 2017-2022
1.1% -0.4% 0.5%
David Jones mainly operates its functions in the clothing, footwear’s, and accessories section of
the retail industry. This area of the retail industry face different issues in last five years such as
customers spend in very cautious manner, purchasing power of the customers decreases, increase
in competition, and increase in the taxes. It must be noted that, annualized growth of the revenue
of the clothing industry is expected almost 2.0% in the next five years from the FY 2018-19,
which is equals to almost $16.7 billion. This growth is expected because of the expansion done
by the online sellers in the retail industry. It is necessary to understand that, David Jones works
in the environment which difficult for trading and the main reason behind that is the increasing
online retailing. Industry evaluation of the clothing and footwear retail market is stated below
(IBIS World, 2018-
Profits Growth from
the year 2014-
Employment Business