Strategic Recommendations for David Jones Pty Limited

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Strategic Management

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Executive Summary
David Jones Pty Limited function as David Jones in the Australian market and it is an upmarket
departmental store. This is owned by South African retail group Woolworths Holdings Limited
since 2014. The company was founded in 1838 and its headquarters is situated in Melbourne,
Australia. Apart from Australia, organization is also operating in New Zealand. In 2016, David
Jones’ headquarters moved from Sydney, New South Wales to Richmond, Victoria (David
Jones, 2018). This report will include strategic recommendations in order to improvise
organizational performance in the target market. Recommendations will be based over the
current and past performance of the organization and on the basis of outcomes originated from
situational analysis which was executed in the previous report. Along with the recommendations,
appropriate steps will also be discussed which are required for the implementation of strategies
recommended to the organization. In the last part of the report, monitoring and controlling
measures will be discussed in relevance with determining organizational performance as well as
to attain the desired goals and objectives in terms of sustainable growth and overall development
of the organization.

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Table of Contents
Executive Summary.........................................................................................................................2
Market Size and Trends...................................................................................................................4
Financial and Corporate Performance.............................................................................................4
Strategic options..............................................................................................................................4
Recommended Strategy...................................................................................................................6
Market penetration.......................................................................................................................6
Implementation of strategy..............................................................................................................7
Monitoring and Control of Future performance..............................................................................7
References........................................................................................................................................8

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Market Size and Trends
In the previous task, market size and the trends has already been discussed in relevance to the
operational area of organization. Global retail sector is growing at fast pace and in relation to
this; opportunities for existing as well as for the new comers to the retail industry are also arising
rapidly. Although, online retail sector is also growing and it is creating immense competitive
environment for the offline retail companies. With regards to this, offline retail companies have
also moved towards digital platform by introducing their own online channel in order to sustain
in the competitive business environment along with attaining desired goals and objectives
(Bailey, Price, Pyman & Paarker, 2015).
Internet and technology has brought revolutionary changes in both businesses as well as in the
consumers’ functionalities. By the mid of 2018, approximately 55% of the total population of the
globe has internet access and with regards to this, organizations have adopted internet as an
effective tool for attaining competitive advantage (Arteconi, et. al., 2016). Penetration of internet
amongst the consumers is high, thus, scope for e-commerce companies is increasing rapidly.
Along with this, the major attraction point is the involvement of consumers which have
influenced companies to move towards e-commerce platform. Setting up position at both the
platforms is essential for the organization in order to expand functionalities along with the
objective of enhancing its performance in the global market (Freeman, 2010).
Financial and Corporate Performance
David Jones is continuously performing well in the retail industry but in 2017, organizational
performance slightly gets declined. Profitability of the organization declined by $66 million and
in the same period, organizational cost of production also increased by 9.7%. Primary factors for
these losses are intense competitive conditions and regular entries of the new comers in the retail
industry. Apart from this, existing companies in the retail sector are also very powerful in the
Australian market through which organizational performance has declined in the last year. With
regards to this, it is required for the organization to adopt appropriate pricing strategies as per the
current marketing trends in order to uplift organizational performance along with competing with
the existing and behemoth retailers in the Australian market. Due to decline in the organizational