This article discusses the value chain analysis of Woolworths, including primary and support activities. It also highlights the importance of business level strategies in gaining competitive advantage.
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Running head: STRATEGIC MANAGEMENT Strategic Management Name of the Student Name of the University Author note
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1STRATEGIC MANAGEMENT Table of Contents Introduction of Business Level Strategy..........................................................................................2 Value Chain Analysis of Woolworths.............................................................................................2 Conclusion.......................................................................................................................................4 References........................................................................................................................................5
2STRATEGIC MANAGEMENT Introduction of Business Level Strategy The business level strategies detail the different actions which are being taken in order to provide proper value to the different customers in the market along with gaining competitive advantage by exploiting the different core competencies in specific along with individual product or the service markets. With the help of the value chain analysis, the internal business level strategy can be taken into consideration in order to become more effective in nature in their operations. Value Chain Analysis of Woolworths There are major three aspects and value creating kind of functions which are being promised by Woolworths to offer to their customers. Primary Activities In-bound Logistics-Woolworths is one of the major retailers and this helps in controlling the distribution network of the different goods and services. Within the respective function, the procurement and logistics are the two major functions (El-Sayed, Dickson & El-Naggar, 2015). Operations-This is involving two major primary activities which helps in ensuring that the customers value and convenience. The quality assessment along with inventory management includes the standardized procedures which will help in detecting and removing defective products (Jaligot et al., 2016). Outbound Logistics
3STRATEGIC MANAGEMENT Marketing and Sales-There are two major activities which are involved in increasing sales along with enabling Woolworths in order to compete effectively. There are inclusion of in- store promotions along with organizational dynamics which will help in continual investments in the research of the customers effectively. Support Activities Technology-Woolworths has tried in made extensive usage of technology for the better supply chain management along with sales with proper customer service. With the introduction of the smarter applications, there can be introduction of different websites which will help in gaining efficiency in a proper manner. There are different technological tools which help in keeping managers updated along with stores which are well suppliers. Human Resource Management-In the past, this can be seen that Woolworths has faced severe competition in the market related to poor HR practices. However, in the present scenario the things have changed and there is no such criticism over the wage policy. Furthermore, the Human Resource Management has become more efficient in nature with higher responsibility along with better pay provided to the different customers in the market (Mudambi & Puck, 2016). Procurement-The major focus of Woolworths is procurement and this has helped in managing strategic relationships with the different suppliers in order to keep the costs of material power. These are the different suppliers which help in providing standard products along with services which will be beneficial for the success of the firm (Savino, Manzini & Mazza, 2015). Infrastructure of Firm-The infrastructure plays a major role for success of the firm. The Woolworths has a large infrastructure which includes supply chain, management along with
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4STRATEGIC MANAGEMENT distribution networks which will be beneficial for the focusing mainly on managing the employees in a positive manner (Savino, Manzini & Mazza, 2015). Conclusion Therefore, this can be concluded that value chain analysis plays a major role in managing the different operations in an effective manner. The outbound logistics and inbound logistics play a major role in managing the different kinds of services which play a major role in managing the different operations in an appropriate manner.
5STRATEGIC MANAGEMENT References El-Sayed, A. F. M., Dickson, M. W., & El-Naggar, G. O. (2015). Value chain analysis of the aquaculture feed sector in Egypt.Aquaculture,437, 92-101. Jaligot, R., Wilson, D. C., Cheeseman, C. R., Shaker, B., & Stretz, J. (2016). Applying value chain analysis to informal sector recycling: A case study of the Zabaleen.Resources, Conservation and Recycling,114, 80-91. Mudambi,R.,&Puck,J.(2016).Aglobalvaluechainanalysisofthe‘regional strategy’perspective.Journal of Management Studies,53(6), 1076-1093. Savino, M. M., Manzini, R., & Mazza, A. (2015). Environmental and economic assessment of freshfruitsupplychainthroughvaluechainanalysis.Acasestudyinchestnuts industry.Production Planning & Control,26(1), 1-18.