MGT510 Strategic Management: Analyzing Woolworths' Business Strategy

This report provides an analysis of Woolworths' business-level strategies, focusing on how the company achieves competitive advantage. It assesses Woolworths' key priorities, including customer-centric culture, sales momentum in the food business, improvement of the drinks business, empowerment of portfolio-based business, and lean process development. The report also includes a value chain analysis, examining both primary activities (inbound logistics, operations, outbound logistics, sales and marketing, service) and support activities (firm infrastructure, human resource management, technology, procurement). The analysis concludes that Woolworths' effective business strategies and value chain have played a crucial role in its success within the Australian retail industry.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Post 4..............................................................................................................................2
Analysis of business level strategy................................................................................2
Assessing the business level strategies that are implemented by Woolworths..............2
Value chain analysis of Woolworths..............................................................................3
Primary Activities..........................................................................................................3
Conclusion......................................................................................................................4
References......................................................................................................................5

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Post 4
Analysis of business level strategy
Business level based strategies that are developed by the organizations are mainly
based on the actions which can provide them with competitive advantage. The different core
competencies which are possessed by the company are also an important part of the business
level strategies. The business level strategies are mainly based on the ways by which the firm
can fulfil the needs and demands of the customers. The position which is developed by the
company in comparison to the competitors is an important part of business level strategy of
modern organizations (Kasemsap, 2014, pp. 102-116).
Assessing the business level strategies that are implemented by Woolworths
The business level strategies of Woolworths are based on five major priorities which
include the following,
The development of proper customer and store-led based culture.
Trying to generate the sustainable sales based momentum in the food business.
Improving the drinks related business so that the customers are provided with
optimum value.
The empowerment of portfolio based business in order to follow the strategies
in an effective manner.
Development of lean processes with the help of end-to-end process.
The retail team of the company is mainly concerned with the ways by which strategies
can be developed in order to fulfil the objectives (Simon, Fischbach & Schoder, 2014, pp.5-
42).

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Value chain analysis of Woolworths
Primary Activities
Inbound logistics – Woolworths has been able to develop effective
relationships with the suppliers in Australian retail based industry. The
company has been able to improve its distribution services in this manner.
Operations – The processes which are used by company are standardized in
nature and has helped in developing successful operations of Woolworths.
Outbound logistics – The customers in the retail industry of Australia are
provided with fresh products by Woolworths with the help of the value chain.
Sales and marketing – The promotional activities which have been
performed by the company have played a significant role in the operations of
the value chain of Woolworths.
Service – The in store services which are provided to customers is also an
important part of the value chain (Woolworthsgroup.com, 2018).
Support Activities
Infrastructure of the firm – The vast number of stores of Woolworths which
have been developed all over Australia and New Zealand is a significant part
of the infrastructure of the company.
Human resource management activities – Woolworths has been able to
acquire greater than 2,00,000 employees in different areas of its operations.
This has been an important of the effective value chain.
Technology – Woolworths has implemented modern technologies like self-
checkout in the stores for providing faster services.

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Procurement – The procurement based activities of Woolworths have been
able to play a major role in acquiring the raw materials (Steinbach, Holcomb,
Holmes, Devers & Cannella, 2017, pp.1701-1720).
Conclusion
The analysis can be settled by asserting that the effective business based strategies
and value chain of Woolworths has been able to play a key role in its success in the industry.
The value chain of the organization is an important part of operations of Woolworths.

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References
Kasemsap, K. (2014). Strategic innovation management: An integrative framework and
causal model of knowledge management, strategic orientation, organizational
innovation, and organizational performance. In Strategic approaches for human
capital management and development in a turbulent economy (pp. 102-116). IGI
Global.
Simon, D., Fischbach, K. & Schoder, D. (2014). Enterprise architecture management and its
role in corporate strategic management. Information Systems and e-Business
Management, 12(1), pp.5-42.
Steinbach, A.L., Holcomb, T.R., Holmes, R.M., Devers, C.E. & Cannella, A.A. (2017). Top
management team incentive heterogeneity, strategic investment behavior, and
performance: A contingency theory of incentive alignment. Strategic Management
Journal, 38(8), pp.1701-1720.
Woolworthsgroup.com (2018). About Us - Woolworths Group. [online]
Woolworthsgroup.com.au. Available at:
https://www.woolworthsgroup.com.au/page/about-us/ [Accessed 27 Aug. 2018].