Strategy and Change

This report discusses the internal and external audit of Dymocks bookseller, identifying strategic issues and developing a strategic and action plan. It also covers the key success factors, value chain analysis, and core capabilities and competencies of the company.

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Strategy and Change
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Strategy and Change
Executive Summary
The below presented report is focused on the concept of strategy and change within the business
corporation. The report is segmented in various divisions that comprise of the internal and
external audit. Internal audit will be aiding the business firm in analyzing the resources and
capabilities that are available with the firm, whereas the external audit includes the analysis of
the competitive environment. Furthermore, the identification of the strategic issues has been
done and also the strategic and action plan for the same has been developed at last.

Strategy and Change
Contents
Introduction......................................................................................................................................3
External audit...................................................................................................................................3
Porter five forces model...............................................................................................................3
Key success factors......................................................................................................................4
Internal audit....................................................................................................................................4
Value chain analysis.....................................................................................................................4
Identify the key core capabilities and competencies....................................................................5
Identification of strategic issues......................................................................................................6
Strategic plan...................................................................................................................................6
Action plan.......................................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

Strategy and Change
Introduction
Dymocks bookseller is an Australian bookstore which was incorporated in 1879. The
organization has 60 stores in Australia and has had various stores in Hong Kong and New
Zealand. The first Dymocks bookstore was opened in Sydney by William Dymock. It is one of
the biggest and oldest bookstores in Australia (Dymocks 2018). It has been noted that Dymocks
stores are operated and managed by locals who are tremendously well-read and passionate about
books (Dymocks, 2018). The bookstore provides various types of books, DVDs, and eBooks to
the customers across the world.
External audit
External audit plays a significant role to analyze and evaluate the risks and challenges of the
market. This external audit protects the business from the external obstacles and factors that
could affect the productivity and performance of the firm adversely (David, 2011).
Porter five forces model
The porter five forces analysis is done by Dymocks bookstore to understand where the firm
power lies in a business situation. The porter five forces analysis helps the company to
understand and evaluate the strength of the competitors in the marketplace. The porter five forces
analysis has been detailed below.
Bargaining power of buyers: The bargaining power in the hands of the buyers is high
(Vasarhelyi & Halper, 2018). The buyers have the ability to reduce the prices and increasing the
quality of the products. In order to increase sale volume, Dymocks needs to focus on the needs
and requirements of the customers.
The bargaining power of suppliers: Supplier provides material to the firm then Dymocks can
run the business successfully and effectively. It has been noted that bargaining power of supplier
is low in Dymocks because most of the material is brought by the company ownself.
Threats of substitutes: Dymocks focuses on the prices of the competitors to beat them
effectively. The threat of substitute is high in a retailing industry (Ahern, 2012). The threats of
substitutes exist because books and DVDs demand is affected by switching costs.

Strategy and Change
The rivalry among the competitors: It has been noted that rivalry is high among the
competitors. The rivalry among the competitors is most significant of any industry (Horn &
McGee, 2012). As the same way, it plays a significant role in Dymocks bookstore. It is stated
that rivalries sell the same product at lower prices thus it affects the selling process of the firm.
Threats of new entry: The threat of new entry is high in bookstore chain Dymocks that have a
direct impact on the sustainability and outcomes of the firm. Dymocks needs to reduce and
eliminate the threat of new entrant by creating a good image in the minds of the customers.
Key success factors
It is analyzed that Dymocks bookseller is dealing with a shift from print to digital media that is
leading and growing to changes within the organization (Wiek, Withycombe & Redman, 2011).
The key success factors for Dymocks have been detailed below.
 It is stated that Dymocks has made the transition to e-books sales by using online sites
and websites. It has been studied that Dymocks attract readers by providing various
opportunities to the customers across the world.
 Dymocks uses new technology and services to increase and maximize the revenue and
profitability in the marketplace. Social media is a good example to maximize the sale of
the firm (Foss & Knudsen, 2013). Social media tools such as podcasting can develop and
boost sales and bring customers into a store.
 Apart from this, Dymocks uses unique and effective strategies and policies to attract the
maximum number of the customers in the global market. In addition, a bookstore is
adding snack shop and coffee bar to attract more customers in the competitive market.
Internal audit
Value chain analysis
Value chain analysis is a strategy and process that is used by Dymocks to analyze and identify
the internal firm activities. It recognizes those activities which are most valuable and significant.
It has been noted that marketing and sales activities are one of the effective and unique activities
in the value chain analysis for Dymocks (Rothaermel, 2015). The bookstore uses multi-channel
marketing strategy through its retail stores and online channels. Apart from this, the firm uses

Strategy and Change
advertisement and promotional strategy to the demands of the books. The main aim of Dymocks
is to attract customers through its membership programs which give greater discounts, and
special discounts. It is stated that human resource management is the other activity of the value
chain analysis that provides value to the customers. It is significant to have happy employees for
the company that are able to serving the consumers as the firm promised. In value chain analysis,
books are published by the publishers and then it sent for the printing. The distribution
companies distribute these books to the booksellers effectively and successfully. In this way,
effective and unique value chain analysis is used by Dymocks in the workplace.
(Source: http://www.atkearney.com.au/paper/-/asset_publisher/dVxv4Hz2h8bS/content/do-
readers-dream-of-electronic-books/10192)
Identify the key core capabilities and competencies
Key core capabilities and competencies play a vital role to expand and explore the business
activities and operations successfully and effectively (Bakker, 2014). These capabilities and
competencies determine the success and progress of the firm. Dymocks core competencies
include system thinking, external collaboration, social innovation, sustainability literacy and
active values. The core capabilities include the brand image, employees, social media,
affordability, awareness and local market adaptation. These core capabilities provide competitive
advantages to the company. By maintaining core capabilities, the firm has been able to analyze

Strategy and Change
and evaluate the plans, policies, and strategies of the competitors. Furthermore, it also helps in
attaining long-term mission and vision of the firm (Wiek, Withycombe and Redman, 2011).
Identification of strategic issues
A strategic issue has been considered as a fundamental policy, question or a critical problem and
that is also considered as liable in impacting the mandates, offerings, mission and vision and mix
clients and all the stakeholders, structure and strategies of the business entity (Barney &
Hesterly, 2010). The organization's culture will be impacted which issues will get on agenda and
how they are structured and will also stimulate the strategic options. The below mentioned are
the two strategies issues that will be impacting the Dymocks:
Management planning and faulty planning process are one of the biggest strategic issues that will
be faced by the business organization. Chances of this type of issue will rise due to the changes
in the political and technological environment (Buckingham, 2011). These changes will be
stimulating the business environment of Dymocks. The second strategic issue that will be faced
by the entity is of unskilled labor and workforce proficiency. The business entity will be facing
the number of issue =s due to the unprofessional and unskilled labor, as the workforce will not be
able to provide a qualitative service and that will lead in lowering of productivity and
profitability. The planning of strategies and tactics will also be affected by the unskilled
workforce will be not able to cope-up with the organizational structure and working
environment. These are the issues that can be considered by the business entity for the future
time as well. As mentioned in the given scenario these issues will be having the impact on the
organizational structure for the upcoming three years if they are not resolved.
Strategic plan
Determining the vision for the future and also the identification of goals and objectives for the
business organization and this all is done by the managing authorities and this process is known
as strategic planning. The below presented is the strategic plan that has been developed on the
basis of the above-identified issues by the Dymocks:
Identification of issues Analysis of the issues Generating alternatives
Management planning and Adoption of unfair and biased Making provisions for the

Strategy and Change
faulty planning process business practices is the main
reason for the faulty process
of the management planning
and also a low level of
transparency by the
management side is also one
of the reasons of the
occurrence of this issue
(Carroll, Primo & Richter,
2014).
advanced training sessions for
the management authorities
so as to enhance their
planning and decision-
making skills and also
motivating the management
to fat involved with the
workforce and increase the
transparency level.
Un-skilled labor The lower level of quality of
the products and services and
due to which there is a
decline in the productivity.
Provisions of the training
sessions for the workforce
should be made and also
involved with the managing
authorities should be done so
as to make them feel
motivated.
Strategic and financial objectives
Strategic objectives are the one that depicts what the business entity is attempting to attain,
whereas, the financial objectives are the future finance related plans and needs of the business
firm. The below mentioned are the strategic and financial objectives that are developed for
Dymocks:
Strategic objectives
 Expanding sales to existing customers
 Marinating and achieving outstanding customer services
 Advancing and utilizing customer base
Financial objectives

Strategy and Change
 Increasing revenues by 25% as compared to the last year
 More focus should be provided towards increasing the positivity of cash flow
Action plan
Activities
/Duration
Time Duration Responsible Person Goal
Identification of
Strategic issues
1-2 Months Head of the
concerned
departments
Monitoring the issue
and finding the root
cause
Analysis of issues 3-4 Months Management
authority
For developing
solutions over the
issues for bringing
improvements
Generating
alternatives
6 Months Team leaders and the
other teammates
For the purpose of the
eliminating the
chances of errors
Approval for
alternatives
3 Months Management
authorities
For making the
process legal and
increase the
authenticity
Conclusion
After summing up the above-executed analysis it has been concluded that strategy and change
are the two core concept or aspects of a business corporation that is considered as core an
integral part of the structure. Dymocks is one of the largest brands in the retailing industry. The
above-mentioned analysis shows that how Dymocks conducts the internal and external audit to
reduce the risks and challenges of the market. It also describes that how strategic and action plan

Strategy and Change
helps to maximize the profitability of the firm. The report also comprises of the strategic and
action plan that is based on identified strategic issues faced by the business corporation.

Strategy and Change
References
Ahern, K.R. (2012) Bargaining power and industry dependence in mergers. Journal of Financial
Economics, 103(3), pp.530-550.
Bakker, D. (2014) Vertical Brand Portfolio Management: Strategies for Integrated Brand
Management Between Manufacturers and Retailers. Springer.
Barney, J.B. & Hesterly, W.S. (2010) Strategic management and competitive advantage:
Concepts. Englewood Cliffs, NJ: Prentice hall.
Buckingham, I.P. (2011) What’s Employee Engagement?. In Brand Champions (pp. 37-74).
Palgrave Macmillan UK.
Carroll, R.J., Primo, D.M. & Richter, B.K. (2014) January. Using Item Response Theory to
Improve Measurement in Strategic Management: An Application to CSR. In Academy of
Management Proceedings (Vol. 2014, No. 1, p. 12215). Academy of Management.
Cassidy, A. (2016) A practical guide to information systems strategic planning. Florida: CRC
press.
David, F.R. (2011) Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Dymocks.(2018) About Dymocks [Online], Retrieved from:
https://www.dymocks.com.au/about/,
Foss, N.J. & Knudsen, C. eds. (2013) Towards a competence theory of the firm (Vol. 2). New
York: Routledge.
Rothaermel, F. T. (2015). Strategic management. US: McGraw-Hill Education.
Segal-Horn, S. & McGee, J. (2012) Strategies to cope with retailer buying power. Retail and
Marketing Channels (RLE Retailing and Distribution), 6, p.24.
Vasarhelyi, M.A. & Halper, F.B. (2018) The continuous audit of online systems. In Continuous
Auditing: Theory and Application (pp. 87-104). Emerald Publishing Limited.

Strategy and Change
Wiek, A., Withycombe, L. & Redman, C.L. (2011) Key competencies in sustainability: a
reference framework for academic program development. Sustainability science, 6(2),
pp.203-218.