Strategic Management of Dick Smith

Running head: STRATEGIC MANAGEMENT
Dick Smith
Strategic Management
5/15/2019

STRATEGIC MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Overview of Dick Smith........................................................................................................2
The mission of Dick Smith....................................................................................................2
Environment Analysis............................................................................................................3
Internal Environment Analysis..........................................................................................3
External Environment Analysis.........................................................................................5
Industry Analysis...................................................................................................................7
Porter Five Force Analysis.................................................................................................8
Competitor Analysis...............................................................................................................9
Strategy Formulation............................................................................................................10
Ansoff Matrix...................................................................................................................10
Implementation of Strategy..................................................................................................11
Conclusion................................................................................................................................13
References................................................................................................................................14

STRATEGIC MANAGEMENT 2
Introduction
Strategic management in an organization can make or break a business. It has been observed
that without any strong strategy, a number of businesses failed in the market. Leaders in the
company with a strong vision and understanding of the business always have a strong hand in
comparison to competitors in the market. Establishing the goals of the business and aligning
them with the vision of the company is one of the most critical jobs while developing a
growth roadmap (David, 2011). When the business grow in the market, there is need to create
a strategic plan because it supports in attaining success. Hence, a strategic plan is considered
as the blueprint for achieving success in the market against competitors (Pamfilie, Petcu and
Draghici, 2012). The aim of this report is to discuss the business environment of Dick Smith
in which it operates. The analysis also highlights the industry and competitors analysis in
order to analyse what forces are influencing the operations of the company.
Overview of Dick Smith
Dick Smith is the retail chain of Australia that is involved in vending consumer electronics
goods, electronic projects kits, hobbyist electronic components, etc. The chain has
productively expanded its operations in the New Zealand market but has unsuccessful
operations in other nations. The business was established in 1968 in Sydney by Dick Smith.
The company has sold its 60% of the shares to Woolworths Limited (Dick Smith, 2019).
The mission of Dick Smith
The mission statement of Dick Smith is "Australian Made and Australian Owned". The
motive of the company is to market a variety of food and consumer electronic products with
best quality and taste. The company believes in offering increased employment opportunities

STRATEGIC MANAGEMENT 3
to the young people, hence, it had planned to bring into a market number of jobs for people
especially in Australia (Dick Smith Food, 2019).
Environment Analysis
Internal Environment Analysis
SWOT Analysis
Strength
Experience – One of the major strength of Dick Smith is its vast experience in the Australian
market. Dick Smith has complete knowledge regarding the ups and downs that take place in
the market and the changing consumer behaviour and taste for any specific product or
technology. With this vast knowledge, the company is able to gain the trust of the customers
as well as other stakeholders.
Employee Policies – The Company is known in the market for implementing different
policies for the benefit of its employees as well as customers. Dick Smith is known as a
people savvy employer. Besides hiring a diverse group of employees, the company has been
always alert regarding confirming that all the employees hired are well trained and courteous.
In order to confirm the satisfaction of the employees, the company is also involved in
offering perks and bonuses to the employees.
Weaknesses
Financial Stability – Dick Smith is known in the market for dealing with various troubles in
the market as its investors and customers are leaving the floor and moving towards its
competitors. All the customers who purchased the gift cards during the Christmas in the year
2016 have become the unsecured creditors whereas investors of the company who purchased