Strategic Management & Woolworths: An In-Depth Value Chain Analysis

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Added on  2023/05/30

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This essay presents a strategic management analysis of Woolworths, focusing on its value chain. It identifies primary activities such as inbound logistics, operations, and marketing and sales, highlighting Woolworths' control over its distribution network, quality assessment procedures, and customer-focused promotions. The analysis also covers support activities including technology utilization for supply chain management and customer service, human resource management improvements, procurement strategies focused on supplier relationships, and the importance of a robust infrastructure. The essay concludes that a well-managed value chain is critical for Woolworths' success, particularly in outbound and inbound logistics, enabling effective service delivery. Desklib provides students access to similar solved assignments and study resources.
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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
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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
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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.
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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). A global value chain analysis of the ‘regional
strategy’perspective. Journal of Management Studies, 53(6), 1076-1093.
Savino, M. M., Manzini, R., & Mazza, A. (2015). Environmental and economic assessment of
fresh fruit supply chain through value chain analysis. A case study in chestnuts
industry. Production Planning & Control, 26(1), 1-18.
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