David Jones Limited: Strategic Management Corporate Strategy Report

This report offers a comprehensive strategic management analysis of David Jones Limited, examining its corporate strategy, governance mechanisms, and commitment to corporate social responsibility (CSR) and ethical practices. It delves into the application of key strategic concepts such as horizontal and vertical integration, outsourcing, and diversification strategies (both related and unrelated) to enhance profitability and achieve competitive advantages. The report evaluates the company's business model, assesses ethical issues, and explores the significance of diversity and inclusion within the organization. Furthermore, it considers the impact of technology and its alignment with the company's strategic objectives, including the adoption of standards and the management of technological paradigm shifts. By analyzing these elements, the report aims to provide insights into how David Jones can optimize its organizational architecture and make effective decisions to achieve its goals in a dynamic business environment.

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DAVID JONES LIMITED
Strategic Management
Corporate Strategy Report
4/14/2020

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Executive summary
Strategic management can be defined as the analyzing, planning and monitoring of the goals and
the objectives of the company David Jones and helps in evaluating the changes in the business
environment. In this report, the complex issues in the company related to ethics and CSR have
identified. The culture and the other forms of diversity in the company David Jones have been
appreciated. The key corporate strategy concepts and framework related to the strategy and
technology, corporate governance, Horizontal integration, vertical integration and strategic
outsourcing, Related and Unrelated Diversification has clearly stated in this report. It has been
evaluated while making the report that the entire corporate strategy framework helps the
company in achieving better objectives and making effective decisions by improving the
coordination and control of the activities.

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Contents
Introduction......................................................................................................................................3
Strategy and Technology.................................................................................................................3
Corporate Governance, Social Responsibility, and Ethics..............................................................4
Corporate Level Strategy (Integration and Outsourcing)................................................................5
Corporate Level Strategy (Diversification).....................................................................................7
Implementing Strategy through Organization and Diversity...........................................................8
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................14

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Introduction
The purpose of this report to make the strategic management of the company David Jones
limited to set the objectives of the company and to ensure the strategies to evaluate the internal
organization and the competitive environment of the company. There are certain actions and
decisions the company made to achieve its goals which will be stated in this report. David Jones
is the department store where thousands of products of the different brands are there and the
company also does online marketing across the home, electrical, fashion, designer and beauty
products (Boschma, 2017). The report will cover the corporate level strategy and diversity of the
business of the company which has elaborated in the report. In this report all the information
related to the governance mechanism, ethics and CSR will be evaluated through the website of
the company or the other journals and articles (David Jones, 2019).
Strategy and Technology
Strategy and technology towards the standardization
The company David Jones has aligned with the technical specifications which help in doing the
processing of the company. There are different parties used in the company David Jones such as
different interest groups, users, government and the standard organization which helps in
creating the goods and services more effective in the company. The company uses IT to generate
value and helps in ensuring the success of the company (Aggarwal, 2011). The company David
Jones has set certain standards in the company which helps in reducing the production cost and
raises the profitability of the company. By setting the standards of the technology in the company
also gets the benefit of the risk associated with the complementary and supply products.
The company David Jones is the public listed company that has a set of government standards
that fall into the public domain only. The standards-based into its products are freely
incorporated with the technology (Marx and Hsu, 2015). After establishing the standards and
technology in the company the feedback and network effect are evaluated. In the company David
Jones, there are positive feedback loops that help in increasing the demands of the company by
increasing the demand for the technology.

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Strategies firm used for establishing their technology
The strategy used by the company David Jones for establishing its technology is the Razor and
blade strategy in which demands of the products are stimulated by the company in the stores by
keeping the prices of the product low. The cots are high for the technologies so the strategy
aligned by the David Jones company is that companies try to expand their output by raising the
marginal cost of the company (Liao, et al., 2018).
The company David Jones also uses the first-mover strategy to align with establishing the
technology in which unique features are offered and pioneer the technologies which help in
slowing the rate of imitation of the products (David Jones, 2019).
Nature of technology paradigm
The nature of the technology paradigm is the set of procedures that have values and beliefs
relevant to technological problems. The technology paradigm of the company shifted due to
several reasons. The company David Jones's technology paradigm shifts to the right as they have
adopted the new technologies to survive and also alter the nature of the competition in the
market. Technological paradigm shifts occur in the company when in the marketplace of the
Australia disruptive technology has entered (Altuntaş and Göçer, 2014). The competition in the
market is higher so the companies David Jones have to be aware of the disruptive technology and
create the autonomous operation division for the company.
Corporate Governance, Social Responsibility, and Ethics
Governance mechanism aligns with the interest of stakeholders and managers
There are various stakeholders in the company David Jones such as directors, creditors, owners,
employees, suppliers, etc. every stakeholder has a different interest in the company David Jones
and they are aligned with the governance mechanism. The manager's interest is to carry out the
projects in the company in an effective manner and to make effective decisions for attaining a
good profit. The company David Jones has the corporate governance mechanism which helps in
enhancing the value of the shareholders in the company (Miyamoto, 2014). The internal
governance mechanism of the company includes a board of directors, managers, etc. which helps
in differentiating the company from their competitors by aligning with the effective governance

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practices. The company is aligned with the public listed company so their audit has been done
quarterly so that the accurate information to the agents can be evaluated.
Main ethical issues
Ethics is about what is right and what is wrong in the David Jones Company. The company is not
complying with the ethical business practices as they are not concerned with the obligations of
the business and were not fulfilling the moral norms which are creating the issue in the
stakeholders of the company (David Jones, 2019). The company is not concerned with the
responsibility of the public trust which has led them in increasing the discrimination and bribery
in the company. . The ethical issues found in the David Jones Company are related to harassment
and discrimination at the working place. The company does the differences in the pay scale as
per the gender. Even the preferences of the company in hiring the new employees are males
rather than the females which creates an ethical issue in the company (Patrisia and Dastgir,
2017).
There is also health and safety issues that were found in the company as the company does not
offer any medical treatments to their employees who reduce their morale at the working place so
this creates the biggest issue. Other ethical issues in the company are related to the core values as
the company does not comply with the ethical and governance practices which impact the
stakeholders of the company.
Issues associated with CSR
The companies David Jones are concerned with the environmental and social issues but there are
certain issues and the challenges which the company faces such as increasing the customer's
interest leads to increased productivity and for that the resources of the environment are required.
The working conditions of the company are not effective as they do not promote gender equality
and there are the issues related to the human rights. The company David Jones does not give the
human right to the women and does the discrimination at the pay scale. The company faces
major issues with the CSR by relying on the regulations and legislations of delivering the social
and environmental objectives (Arasti, et al., 2017).
Corporate Level Strategy (Integration and Outsourcing)

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Company’s business model and business-level strategies
The corporate level strategy of the company David Jones is related to the achieve higher
performance growth and to attain the long term competitive advantage. The business-level
strategy of the company is aligned with the corporate business model in which the diversification
of the business activities will do to achieve good outcomes (Ghosal, 2015). To make the
effective decisions in the company it is important to decentralize the components of the company
so the company David ones has the Conglomerates strategy. The business model of the company
David Jones is derived from the corporate level strategy which helps in maximizing the long-run
profitability of the company.
Horizontal and vertical integration
Horizontal integration is the one where the company operates another company that has the same
level of the value chain whereas on the vertical integration within the same production
acquisition of the business operations are done. Horizontal integration means merging or
acquisition of another company and it has certain benefits to the company such as it gives the
leverage competitive advantage, the cost structure gets reduced and helps in increasing the
product differentiation (Platonova, et al., 2018). Along with the benefits this corporate strategy
also has certain issues such as it is very difficult to implement in the company and requires many
regulatory authorities.
In the vertical integration, the business operations are expanded by the company through the
backward and forward integration. There are also certain benefits to this corporate strategy to the
company such as it helps in increasing the profit and results in improving the schedule. The
competition in the industry gets reduced and helps in enhancing the specialized products. There
are certain disadvantages of the corporate strategy as demand is unpredictable and due to
globalization technology has to enhance rapidly (Tayşir and Pazarcık, 2013).
The company David Jones should use the strategy of the vertical integration in their company as
it helps in increasing the profit and helps in enhancing the specialized products. The company
should also use this strategy as it helps in increasing the competitiveness nad have greater
process control. With the help of this strategy the company can increase the supply chain
coordination and also enhances their market share (David Jones, 2019).

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Strategic alliances and outsourcing may become a substitute for vertical integration
Strategic alliances are the substitute for vertical integration as it is the long-term agreement
between the companies that makes the new product jointly. Strategic alliances benefit the
component suppliers as it helps them to grow their supply and results in increasing the profits.
Strategic alliances aloes help in building a longer-term relationship by exchanging valuable
resources and companies also possess the power to each other. Strategic outsourcing can also
become the substitute for vertical integration as the decision performed by the independent by
aligning with the value chain activities (Tuan, 2012). Vertical integration enhances the
differentiation of the product and strategic outsourcing also. Vertical integration also gives the
cost-saving benefit and does not create the issues so the corporate strategy of the company is to
enter a cooperative relationship like outsourcing.
Corporate Level Strategy (Diversification)
Five primary ways in which diversification can increase company profitability
 The profitability of the company gets increased due to the transfer competencies
 Due to the leverage competencies also the profit of the company gets enhanced.
 Product bundling is the best way to increase the profitability in the company.
 The profitability of the company also gets enhanced with the utilization of the general
organizational competency.
 The profitability of the company is also increasing through the sharing of the resources
between the business units.
Differentiate between multi-business models based on related and unrelated diversification.
The corporate-level strategy is based on the goal that in the existing company business unit only
new related industry businesses will be established. Multi based model related diversification
allows David Jones to possess the general competency. It also helps in increasing the strong
competitive advantage. In related diversification, there is a linkage in the value chain functions.
A corporate-level strategy is based on the goal that in the existing company business unit only
new unrelated industry businesses will be established (Yamoah and Kanyandekwe, 2014).
Unrelated diversifications have certain benefits such as it limits the efficiency of the external

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capital market and provide a strong communication system. Due to the changes in technology
and management diversification also brought certain issues in the corporate strategy.
Diversification versus unrelated diversification and explain why some companies pursue
both strategies
In the related diversifications, the competition of the company is applied to the greater number of
industries across the same field. In unrelated diversification, the profitability of the business runs
by the top managers of the company due to the high skills. In related diversification, there are
superior strategic capabilities whereas in the unrelated diversification there is the strategic
competency management is used. Related diversification allowed the cost to keep closer under
bureaucratic whereas unrelated diversification allowed the cost to keep control under
bureaucratic. Some companies like the new ventures adopt both strategy to create a new business
unit and helps in restructuring and divesting the business units (Tayşir and Pazarcık, 2013).
The company David Jones pursues the unrelated diversification as it is more appropriate for the
operations and the functioning of the company such as limits the efficiency of the external
capital market and provides a strong communication system (David Jones, 2019). Unrelated
diversification allowed the cost to keep control under bureaucratic which is the major benefits so
the company adopts this strategy.
Implementing Strategy through Organization and Diversity
Organizational architect
The organizational architecture of the company David Jones Limited includes the effective
organizational structure, system, control, and effective organizational culture and the process in
the company. The organizational structure of the company is complex which has approx. 1500
employees and has 47 numbers of the locations. The company uses the functional organizational
structure where the information flows between the different levels of the departments of the
company. The organizational structure of David Jones Limited includes the roles, rules, and
responsibilities (Shamsabadi, et al., 2016).
The organizational culture of David Jones is also effective in which the employees of the
company shared the different norms and values. The organization process of the company is also

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effective and helps in taking effective decisions as they use the metrics to control and measure
and performance of the employees. The company David Jones also provides incentives to its
employees so that they can encourage their desires and motivate them to develop more skills and
values (Zhang, 2013).
Strategy aligned with the combination of structure, process, culture, controls, and people
The strategy of the company David Jones Limited is aligned with the decentralized structure in
which the teams are building up at the different levels of the business and effective decisions are
taken with some autonomy. The company David Jones can maintain their self-sufficiency by
following the decentralized structure as it not increases the motivation of the employees but also
enhances better decisions (Tuan, 2012). The diversification can be seen in the company through
decentralization structure which helps in solving day to day problems of the company.
The strategy of the company is aligned with the resource allocation process in which the
company has provided the resources into the tasks and then tracks the resource utilization. If
there is a lack of resources in any project then this process helps in reallocating them wherever it
is necessary. The goals of David Jones are to build a strong yield and to deliver consistent steady
growth (Orsdemir, et al., 2019). The strategy of the company is aligned with the control process
in which the feedback from the employees is taken and performance is measured. The company
uses bureaucratic control in which rules and procedures are followed. The strategy of David
Jones is also to provide incentives so that employee’s behavior can be rewarded and encouraged.
Dimensions of diversity and inclusion
In the company David Jones, there are various dimensions of diversity which include religions,
gender, marital status, sexual orientation, income, etc. In the company, there are four types of
dimensions which are intra personal, interpersonal, group dimension and inclusion of the
organization.
Intrapersonal dimensions of the company David Jones include religion, marital status, income,
work experiences, educational background, etc. The interpersonal dimensions of the company
are gender, age, race, sexual orientation, etc. (Hill, 2017).The group dimensions of the company
include the values, norms, laws and economic operations. The company David Jones has the

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strategy to align with good organizational inclusion where the employees in the company have
the belongings, valued and respect for each other. In the organization's inclusion, there is
individually and collectively employees work together so their best working can be done.
Conclusion
Corporate strategy of the David Jones Limited company helps in defining the long term vision by
implementing the strategies in the company. With the help of the lecture notes and through the
website of the company the information has been evaluated in this report. The company David
Jones has set certain standards in the company which helps in reducing the production cost and
raises the profitability of the company. Ethical issues in the company are related to the core
values as the company does not comply with ethical and governance practices. Horizontal
integration is the one where the company operates another company that has the same level of
the value chain whereas on the vertical integration within the same production acquisition of the
business operations are done which has clearly stated in this report with the benefits and
disadvantages. Multi based model related diversification allows David Jones to possess the
general competency. there are various dimensions of diversity which include religions, gender,
marital status, sexual orientation, income, etc. so there is the individually and collectively
employees work together. David Jones Limited is aligned with the decentralized structure in
which the teams are building up at the different levels of the business and effective decisions are
taken.
Recommendations
 It is recommended that the ethical issues in the company David Jones can be solved
through making the developing code which helps in engaging with the ethical things
effectively.
 The company should measure the ethical programmers and take certain actions in against
to the person who is not following the ethical principles and they should be punished.
 In the company, there are issues related to discrimination and harassment which can be
solved by applying the laws set by the government so that equality among the men and
women can be done.

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 The company should get more engaged with the environmental related issues such as
carbon footprints, pollution which helps in increasing their image among the public.
 The company should follow the diversity of the dimension so that effective decisions can
be made as diversity brought new ideas and cultures which are in bringing innovation and
creation in the company.