Woolworths Analysis: External and Internal Evaluation

WOOLWORTHS ANALYSIS
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................4
(External Analysis)......................................................................................................................4
Business Background...................................................................................................................4
What industry it is?......................................................................................................................4
General environment Analysis:...................................................................................................4
Industry Environment..................................................................................................................6
Competitive Environment:...........................................................................................................6
Opportunities and Threats............................................................................................................7
PART 2............................................................................................................................................7
Internal analysis and proposal.....................................................................................................7
Resources of the firm (tangible and intangible)..........................................................................8
Identification of Capabilities.......................................................................................................8
Main Competency Analysis.........................................................................................................8
Propose a suitable information system solution that meets the chosen company needs.............9
Evaluate the proposed system and provide your recommendations............................................9
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11
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Introduction
In this jeopardized business environment, the organizations are constantly struggling to stable
their market environment through incorporation of different strategic line on both productivity
and profit section. The current project will emphasize the facts on the Woolworths, which is an
Australia based grocery chain and located in Sydney. The project will evaluate the position of the
organization in the current retail industry of Australia. The report will further evaluate the
internal operation of the organization, which is the basic outline of the organizational success.
Internal operation supports the organization to sustain long term success. In this case, some
factor will recommend based on the status of rivalry as well as operational gap, which are
evident from the impact of both macro as well as micro environmental component. The
organization is conned with the distribution network, inbound logistics and the product control. It
will support the organization to manufacture quality product, which can enhance the distribution
efficiency as well as inventory management. This competitive attribute is valuable for the
capabilities as well as resources, which can be integrated in the supply chain of the company
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Part 1
(External Analysis)
Business Background
Woolworths has considered basement outlets for bargaining and operating their business in
Sydney since 1924. The organisation had market share of 31% in the Australian Super market
chain. They have gained strong market success through the support perfect acquisition as well as
expansion. They are operating their business with the major companies with the brand name
Woolworth’s supermarket, Dick Smith Powerhouse and others. The retailers focused on the
several other options that include sales revenue. As per the current report, they have 21 stores
and generating sales volume of $104million in 2007 and 2008 (Woolworthsgroup.com.au, 2018).
What industry it is?
The function of supermarket industry is to cater and fulfil the daily need of the consumer by
means of consumer driven business attributes. They are working with the intermediary position,
which is effective to foster standard sales growth. As commented by Altuna et al., (2015)
intermediary production includes the revenue growth, which has been earned over last 4 years.
As per the estimated result, the revenue is 4.1%. Woolworths is able to hols standard patter4n of
growth in GDP percentages, which has been also increased to 4.4% and the limit was $78502
million. The organisation has focused on the Franklins and Food Works. As per the current
report, Woolworths is the market leader in the retail industry and their major competitor is Coles,
who hold market share of 23%.
General environment Analysis:
Political and Legal: In this case, political and the legal factors are focused on the legal laws,
which are significant in the overall business operation. The organisations focused on the policies
for undertaking required initiatives on empowerment, employment and other responsibilities.
These criteria are structured to set up the governmental policies. In this case, crusades are
developed for blocking the organisation along with Woolworths.
Economic: The financial factors are discussed in the economic factor. It is dependent upon the
levels of spending in regards to discretionary goods. The consumers trends rae gradually
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