Strategy and Change

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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.