ABD701 Business Strategy Report: Countdown Supermarket Analysis

This report provides a comprehensive analysis of Countdown Supermarket, a major supermarket chain in New Zealand. It begins with an introduction outlining the report's focus on the company's business practices, strategic hierarchy, and environmental factors. The report delves into the strategic hierarchy, detailing the corporate, business, and functional level strategies, and the decision-making processes. It then examines the external macro and micro environmental factors using PESTEL and Porter's Five Forces analyses, followed by a SWOT and VRIO analysis to assess the company's strengths, weaknesses, opportunities, and threats. The report also identifies key success factors, discusses potential challenges, and proposes strategies for managing these challenges, including the role of environmental management and the use of ISO 14000 series for corporate social responsibility and environmental sustainability. The report highlights the company's contribution to social responsibility and environmental sustainability and concludes with a discussion of performance evaluation.

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

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Introduction:
The paper is focused on the description of the business practices of one of the largest
supermarkets of New Zealand named as Countdown Supermarket. The paper analyses the
strategic hierarchy of the mentioned organization with a precise focus on the business
activities of the mentioned organization. Along with that, the paper discusses regarding the
impact of the strategic hierarchy of the mentioned organization on the business operations
and the decision making style. Apart from this, the paper analyses the external macro
environmental factors of the organization with a precise focus on New Zealand. In addition to
this, the paper provides a significant discussion regarding the micro environmental factors of
the organization. Apart from this, the paper identifies the key success factors of the
organization and portrays the link of the success factors with the improvement of the business
activities of the mentioned organization.
Along with this, the paper provides a significant elaboration regarding the challenges
that the company is expected to face in meeting the success factors of the organization and
along with that, the paper provides an efficient plan for managing the impact of the
challenges. In addition to the identified strategies for managing the challenges, the paper also
provides significant information regarding the factors that are crucial in evaluation of the
success of the performance plans. In addition to this, the paper provides a crucial assessment
of the role and implications of the environmental management from the part of the mentioned
organization. The paper also informs regarding the contribution of the business activities of
the mentioned organization in the development of the social responsibility and environmental
sustainability. The usage of the ISO 14000 series will be crucial for the organization for
communicating its commitment and in engaging the stakeholders regarding the corporate
social responsibility and environmental sustainability.

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Strategic Hierarchy:
1.1
The Countdown Supermarket is one of the largest supermarkets available in the
country, New Zealand. The Countdown Supermarket is considered to be one of the top most
full service supermarket chain present in the country nad along with that, it is one of the main
subsidiaries of Woolworths New Zealand (Woolworthsnz.co.nz, 2019). The Woolworths
New Zealand is itself a subsidiary of the Woolworths Limited of Australia. The mentioned
organization operates in the retail industry and was founded in the year 1981
(Countdown.co.nz, 2019). The organization is seen to be headquartered in Auckland, New
Zealand (Countdown.co.nz, 2019). As mentioned earlier, the owner of the mentioned
organization is Woolworths Limited. The organization is able to improve the business
activities and that is pretty evident with the increment in the product chain of the mentioned
organization. The organization is seen to be managed by Natalie Davis, the managing director
of the mentioned company (Countdown.co.nz, 2019). Along with that, the service excellence
of more than 18000 number of employees of the mentioned organization is considered to be
one of the main factor responsible for the success of the mentioned organization
(Countdown.co.nz, 2019).
1.2
With a precise focus on the strategic hierarchy of the mentioned organization, it is
pretty visible that the corporate level strategy of the mentioned organization is formulated
from the part of the parent company of the mentioned organization which is the Woolworths
Limited of Australia. The Woolworths Limited formulates the corporate level strategy for its
subsidiaries across the world which also includes the Woolworths New Zealand
(Woolworthsnz.co.nz, 2019). As the selected company is one of the subsidiaries of

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Woolworths New Zealand, the participation of Gordon Cairns led board of Woolworths
Group in the formulation of the corporate strategies for the mentioned organization is seen to
be prominent (Woolworthsgroup.com.au, 2019). On the other hand, the business level
strategy of the selected organization is seen to be framed by the managing director of the
selected organization, Natalie Davis and along with that, the formation of the business level
strategy for Countdown Supermarket is seen to be dependent on the board of the selected
organization (Countdown.co.nz, 2019). The functional level strategies of the mentioned
organization is managed by a group of managers of the organization placed at various
positions of the company (Countdown.co.nz, 2019).
Brett Ashley, the General Manager Operations and Logistics manages the business
operations of the mentioned organization along with that, he also takes care of the logistics
inside the organization. Scott Davidson, the General Manager Merchandise of the mentioned
company is responsible for the activities in the strategic planning, global sourcing and
development of the brand (Countdown.co.nz, 2019). Kiri Hannifin, the General Manager
Corporate Affairs, Safety and Sustainability is responsible for managing the safety and
sustainability of the products and the services that the mentioned organization offers to the
customers (Countdown.co.nz, 2019). James Radcliffe, the General Counsel is responsible for
managing the legal services team inside the organization. Josh Gluckman, the General
Manager Strategy and Transformation is observed to manage the design of the customer led
design in the mentioned organization and along with that, he is also responsible for
monitoring the transformation of the data and analytics (Countdown.co.nz, 2019). Jo Rose,
the General Manager Marketing, is seen to be responsible for the content marketing and
social media marketing of the mentioned organization. Along with that, she leads the
marketing transformation team in the mentioned organization (Countdown.co.nz, 2019).

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Sally Copland is placed in the General Manager Digital position of the mentioned
organization.
1.3
With a precise focus on the managers of the mentioned organization and the roles and
responsibilities that they hold for the effective management of the business operations of the
mentioned organization, it can be said that the formation of the board and the structure are
pretty significant in stating participative style of decision making inside the organization. The
formation of the decisions inside the organization is seen to be carried out in the general
meetings which is chaired by the managing director of the company. All the mentioned
managers participate in the general meeting of the mentioned company where they effectively
participate in the process of the decision making and communicates the condition and
capability of their relevant departments in executing the operational decisions of the company
(Carbonell & Rodriguez-Escudero, 2013).
External and internal environments:
2.1
PESTEL Analysis:
Political:
The political environment of the host country for the mentioned company is
significantly stable and that produces notable amount of advantage to the mentioned company
in conducting a profitable business in New Zealand. The trade relations of the mentioned
country with the other nations of the world is seen to be pretty smooth and along with that,
the lesser impact of the unionization is a major reason of a comparative advantage to the
organizations operating in the country in comparison to the other nations (Bano, 2014).

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Economic:
The rate of unemployment in the mentioned country is seen to decrease in a notable
manner in recent years and as a result, the economy of the mentioned company is seen to be
subjected to a sharp rise (Kelsey, 2015). This increases the scope of the company in
conducting a profitable business in the mentioned region.
Social:
The mentioned company is seen to have the expertise in selling the fast moving
consumer goods which has notable amount of demands in the country. With a precise focus
on the increasing rate of literacy and the incorporation of the speed in the lifestyle of the
people of the mentioned nation, the acceptance level of the supermarket concept amongst the
customers of the mentioned country is pretty prominent.
Technological:
Considering the tech savvy youth generation and with a precise focus on the
increasing population in the nation, the increasing level of acceptance of the technology
amongst the customers is pretty much visible. The IT efficiency of the younger generation
and the increasing knowledge of the modern technology amongst the senior citizens of the
nation is seen to be crucial for the mentioned organization in taking increased number of
initiatives for the incorporation of the modern technology in the business operations.
Environmental:
The government of the mentioned country is seen to be significantly focused in the
effective management of the ecological system and that is pretty evident with the formation
of the increased number of legislations related to the environment. Along with that, the
people of the mentioned nation are knowledgeable regarding the importance of the

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environment and that is evident with the increasing preferences of the customers towards the
organizations that source the materials in ethical manner.
Legal:
The government of the mentioned nation is observed to be the pretty strict in the
ethical business practices and along with that, the formation of the labour and employment
legislation from the part of the government of the nation is pretty significant in stating the
interest of the government in making sure that the business organizations of the nation
develops strong and standard wage and work time characteristics for their employees
(Newzealandnow.govt.nz, 2019).
2.2
Porter’s Five Forces:
Competitive Rivalry: High
Considering the retail industry of the mentioned nation, the revenue of the industry is
seen to be 21 billion US dollars with an annual growth of 1.9% from the year 2015 to 2020
(Ibisworld.com.au, 2019). The industry has created 62795 number of jobs across the various
sectors and is seen to experience 3693 number of business opening as well
(Ibisworld.com.au, 2019). The significant growth of the mentioned company is seen to be
crucial in increasing the level of intensity of competition between the organizations such as
Foodstuffs, Foodtown, Four Square, New World and SuperValue (Foodstuffs.co.nz, 2019).
Threat of Substitutions: High
With a precise focus on the business operations of the competitor organizations and
their strong emphasis on the quality of the products and on the application of the low pricing

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for the products, the company is expected to face considerable amount of threat from the part
of the competitor organizations.
Bargaining power of the buyers: High
As it is evident that the competitor organizations are notably focusing in the
improvement of the quality of the products in accordance to the preferences of the customers
and are having the expertise of applying low pricing for the products, the customers of the
industry are seen to be left with considerable number of options to choose from (Wilson et
al., 2013).
Bargaining power of the suppliers: Low
With a precise focus on the availability of the efficient suppliers in the mentioned
nation that are capable of providing on time supply, supply in appropriate quantity along with
supply in a significantly reasonable prices, it can be said that the company will face
comparatively low bargaining power of the suppliers in comparison with the other countries.
Threat of new entries: Moderate
The company is expected to face moderate impact of new entries as the increased
growth rate of the mentioned industry has the potential to influence the new organizations in
opening their business in the retail industry of the nation. However, the requirement of the
significant amount of financial investment for the infrastructural set up and along with that,
the legislative concerns regarding the licensing procedures are observed to pose major
concerns for the senior management of the new organizations in opening their business.
2.3
SWOT and VRIO Analysis:

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One of the major strength of the organization was the diversified product chain of the
organization which is seen to play a crucial role for the organization in meeting the diverse
requirements of the customers and create the much required customer loyalty.
The company is seen to incorporate the presence of technology in the process of
communication across the various stakeholders and along with that, the incorporation of the
technology in the processing of the products in accordance to the preferences of the
customers is seen to be crucial in the formation of the customer community of the
organization (Countdown.co.nz, 2019).
The strong cash flow inside the organization along with the potent financial backup
from the part of the parent organization of the company is seen to be crucial for the
organization in improving their infrastructure in an efficient manner.
However, the excessive dependence of the management of Countdown over the board
of the Woolworths Group is seen to restrict the efficiency of the board led by Natalie Davis in
taking the managerial decisions which has the potential of improving the business activities
of the selected company in New Zealand (Countdown.co.nz, 2019). This reflects a major
constraint on the organizational culture of the company and can be considered as a weakness
for the organization.
With a precise focus on the VRIO analysis, it can be said that the infrastructural
excellence of the motioned organization has the potential to provide the much required
competitive advantage to the selected organization and is considered to be valuable. On the
other hand, the excellent financial backup from the part of the parent organization of the
mentioned company has enabled the company to achieve the infrastructural excellence and
can be considered as rare (Countdown.co.nz, 2019).
Key success factors and strategic challenges:

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3.1 and 3.2
The key success factors for the mentioned organization in the technological aspect
will be to improve the incorporation of the technology in the processing of the products for
reducing the consumption of the time.
Other than this, for the manufacturing aspect, the company needs to introduce an
improved tracking operations with the usage of the Radio Frequency Identification Device.
The incorporation of the mentioned technological system will be crucial for the organization
as it will track the bestseller products of the company in an efficient manner.
For the distribution aspect, the company needs to expand their distribution channels.
The increment in the distribution channels has the potential of increasing the sales of the
company.
For the marketing aspect, the company needs to increase offline marketing activities
with a precise focus on the scope of increasing the advertisements in the newspapers and the
business magazines (Ring, Tkaczynski & Dolnicar, 2016). The increment in the offline
marketing of the company will be crucial for the organization in communicating regarding
the products and the features of the product in an efficient manner.
For the locations, the company needs to increase the number of departmental stores of
the organization which is essential for the company in reaching out to the customers with
their products and for the skills and capability aspect, the company needs to introduce
relevant training and developmental activities for the employees of the organization which
has the potential to increase the value of the services amongst the customers of the company.
3.3

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The infrastructure of the organization, the financial stability of the organization along
with skills and competencies of the employees of the organization are the major sources of
competitive advantages that the company is able to achieve.
The infrastructural excellence and the financial strengths of the organization will be
significant for the organization in meeting the designed success factors related to the
incorporation of the technology in the processing of the products and in meeting the success
factor of the manufacturing aspect. With a precise focus on the strong financial backup from
the part of the parent organization of the company, the expansion of the distribution channels
of the organization and the increment in the number of the departmental stores will be
notably feasible for the company to achieve. In addition to this, the service excellences of the
marketing and promotions team of the organization will be crucial for the organization in the
achievement of the much required success in improving the offline marketing activities
(Ring, Tkaczynski & Dolnicar, 2016).
3.4
The strategic challenges for the company will include the concerns of the senior
management regarding recruitment of new employees for opening the new stores. Along with
that, a major challenge for the organization will be to motivate the employees for the
effective management of the excessive work pressure that the company is expected to have,
with the opening of the new stores. Other than this, the initiatives in meeting the
developmental needs of the new employees and in improving the team coordination amongst
the employees will be a major concern for the management of the mentioned organization.
The challenges have the potential to affect the overall performances of the company and can
decrease the generation of profit for the mentioned organization.

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Strategic Options and Plan:
4.1 and 4.2

Running head: MANAGEMENT
Objectives Actions Timeframe Success Factors Remarks
Recruitment To recruit the individuals on
the basis of the skills and the
competencies of operating in
the retail industry and along
with that, the managers of
the organization requires to
focus on the employment
history of the candidates as
well.
24 weeks The ability to source the individuals
on the basis of the employment
qualities.
The ability to recruit the individuals
with a precise consideration to the
employment history of the
individuals.
The ability to recruit the individuals
that are capable of handling the
excessive work pressure of the
mentioned organization.
The recruitment of the efficient
employees for the new stores of
the company will be crucial for
the organization in meeting the
desired success factors and in
meeting the demands of the
market.
Rewards To create an attracting
rewarding plan with the
inclusion of both intrinsic
and extrinsic rewards for
motivating the employees of
the organization.
10 weeks The ability to identify the needs of
the employees of the organization.
The ability to design the rewarding
plan in accordance to the needs of
the employees.
The ability to motivate and attract
the employees with the rewarding
plan.
The necessity of the motivated
workforce is pretty prominent as
that has the potential to influence
the employees towards the
achievement of the higher
efficiency and quality in their
services to meet the demands of
the market.
Development
of the
employees
To develop the relevant
training and developmental
activities for the new
employees of the
organization.
To conduct the employee
engagement activities along
6 weeks The ability to meet the
developmental needs of the
employees in an efficient manner.
The ability to improve the bond
between the employees.
The effective management of the
developmental needs of the
employees and the employee
engagement activities will be
crucial in improving the overall
performances of the company and
will be crucial in the generation

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with team dinners for
improving the coordination
between the employees.
of the increased amount of profit.

Running head: MANAGEMENT
CSR and EM:
5.1
The effective environmental management from the part of the company will be crucial
in achieving the much required relaxation from the part of the government and the political
parties in executing the strict legislations. On the other hand, it will also be crucial for the
shareholders and the senior management of the company in reducing the excessive amount of
consumption of the energy. Along with that, the company will be able to maintain their status
of an eco-friendly company in front of their customers.
5.2
The organization operates in the retail industry and sells the various sorts of FMCG
goods along with the grocery products. The business activities of the mentioned company has
the potential to affect the ecological balance of the nation in case the sourcing of the raw
materials for the products of the company violates the guidelines of the eco-friendly sourcing
(Mohezara et al., 2016).
5.3
The strategies for the development of the social responsibility and the environmental
sustainability from the part of the mentioned organization will be the source the raw materials
in an eco-friendly manner. Along with that, the achievement of the carbon footprint goal of
the mentioned company along with the increment in the usage of the reusable bags, energy
efficient stores with the incorporation of low power consuming lights and the recycling of the
resources of the company will be crucial for the organization in improving the environmental
sustainability (Countdown.co.nz, 2019).

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5.4
With a precise focus on ISO 14000, the company has considerable amount of
opportunity in communicating to the customers, employees and the shareholders of the
mentioned organization regarding the impact of the excessive consumption of the energy in
the mentioned company (Wiengarten, Pagell & Fynes, 2013). The communication to the
customers regarding the benefits of the above mentioned strategies is expected to be
conducted with the integrated marketing communication and along with that, the
communication with employees and the shareholders are expected to be conducted through
formal meetings and business reports.
Conclusion:
On a concluding note, it can be said that the company is seen to have the potential of
conducting a significantly profitable business in New Zealand. However, the intense level of
competition in the retail industry has the possibility of becoming a major threat for the
mentioned organization. The company has the necessity of increasing their number of stores
and expanding the distribution channels to meet the increasing demand of the industry. Under
such situation, the success of the company is dependent on the capability of the company in
meeting the developmental needs of the employees and in improving the infrastructure of the
mentioned company.

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References:
Bano, S. (2014). An Empirical Examination of Trade Relations between New Zealand and
China in the Context of a Free Trade Agreement. Department of Economics, University of
Waikato.
Carbonell, P., & Rodriguez-Escudero, A. I. (2013). Management control, role expectations
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Near You. Retrieved from https://www.countdown.co.nz/
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(2019). Retrieved from
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stores.html
Kelsey, J. (2015). Reclaiming the future: New Zealand and the global economy. Bridget
Williams Books.

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Mohezara, S., Nazria, M., Kaderb, M. A. R. A., Alib, R., & Yunusb, N. K. M. (2016).
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Woolworthsnz.co.nz (2019). Woolworths New Zealand Homepage. Retrieved from
https://www. woolworthsnz.co.nz /

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