Case Study Analysis: Strategic Management of Woolworths/Coles

This case study analysis examines the strategic management practices of Woolworths and Coles. It applies and evaluates strategic theory and resource-based theory, highlighting their impact on the companies' performance. The analysis delves into business practices, including strategy development, implementation, and marketing mix activities, and identifies challenges faced by both companies, such as poor planning and price deflation. The study recommends that Woolworths and Coles adopt strategic management theories, enhance their marketing mix, improve economies of scale, and focus on customer loyalty to improve their market position and financial outcomes. The analysis references relevant academic sources to support its findings and recommendations.

Running Head: CASE STUDY ANALYSIS 1
Case Study Analysis
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CASE STUDY ANALYSIS 2
Case Study Analysis
Questions 1.
Apply and evaluate at least two theoretical concepts of strategic management that have been
enhanced in the case study.
Discussion
Strategic management is a planning process where an organization, firm or company
comes up and implements objectives, goals following specific set strategies. As the organization
develops the process continues but can change depending on the set goals and objectives as per
that business period. Both developed and developing organizations enhance this process to
ensure that they are in line with other business trends in the market like globalization. There are
various theoretical concepts that enhance the process of strategic management. Two of these
concepts include Strategic theory and resource-based theory.
Strategic theory. This is a theoretic concept that illustrates the importance of laying
strategies in an organization to enhance its production, distribution and consumption activities.
To enhance this, the concept is explained in five stages of successful strategic management in an
organization. These stages include goal setting, analysis of organization information, strategy
formation, strategy implementation and evaluation and control. Impact of strategic stages is
crucial as they enhance the level of development of an organization.
Woolworth Company made a huge loss of 1.8 dollars in the year 2015 as a result of poor
planning (Knox & Knox, 2015). The company is one of the most established food outlets
globally, it has experienced various challenges resulting to struggling of branding system and
even crossing some of its local outlets. In the same way, though Coles has better selling
strategies than that of Woolworth, it’s experiencing related challenges as its feeling the level of

CASE STUDY ANALYSIS 3
competition and also issues on strategy development. Aldi, on the other hand, has a well-
developed strategy and it's becoming a market hero.
Resource-based theory. This is a theoretical concept stating that organizational resources
are limited in mobility and not similar. The main aim of starting a business or rather an
organization is to exploit the available resources and they can be translated into a strategic value
to benefit the organization. As elaborated in the case study, the ability of any company to acquire
adequate and relevant resources increases its chances to have a better marketing value. Example,
if food store cannot provide food products to its customers, it has no value to be called a food
store (Wojciechowska, 2016).
Question 2.
Critically reflect on the business practices enhanced in the case study and give recommendations
that would enhance either sustainability or strategic management of Woolworths and Coles
Company.
Discussion
Strategy development and implementation. Woolworth Company has a problem in
planning its activities, the level of planning is poor as the company is making losses and also
losing it to Coles Company which was at the same level back then. The company made losses
and lost branding of products due to poor planning. Cole, in the same way, adopted the same
strategies that reduced its ability to develop (Kaiser & Ringlstetter, 2011).
Another business practice is marketing mix activities. The two companies, Woolworth
and Cole have adopted the same marketing mix practices of price deflation and cost reduction.
This is reckless as the companies should enhance positive marketing mix activities to ensuring

CASE STUDY ANALYSIS 4
customers price satisfaction. They should not just lower prices but also ensure the products they
are giving to consumers are of high value to satisfy their needs. This enhances positive
customer’s satisfaction thus remaining loyal to their service providers (Couto, Plansky & Caglar,
2017).
Recommendations to enhance strategic Management
 Woolworth and Cole should adopt the strategic theory of management to enhance their
management activities.
 Should enhance positive marketing mix activities to enhance customer’s price
satisfaction.
 Should enhance positive means to increase their economies of scale to ensure they remain
competitive in their market.
 Woolworth Company should focus on establishing relevant local outlets to prevent
increased cases of making losses other than profits.
 Should put down relevant measures of enhancing customer loyalty as well as means of
implementing them.

CASE STUDY ANALYSIS 5
References
Couto, V., Plansky, J., & Caglar, D. (2017). Fit for growth: A guide to strategic cost cutting,
restructuring, and renewal.
Kaiser, S., & Ringlstetter, M. J. (2011). Strategic management of professional service firms:
Theory and practice. Heidelberg: Springer-Verlag Berlin Heidelberg.
Knox, M., & Knox, M. (2015). Supermarket monsters: The price of Coles and Woolworths'
dominance. Collingwood: Schwartz Publishing Pty, Limited.
Wojciechowska, M. (2016). Intangible organizational resources: Analysis of resource-based
theory and the measurement of library effectiveness.