Strategic Management Report: The Warehouse NZ Business Strategy

This report provides a strategic management analysis of The Warehouse New Zealand (NWZ). It begins with an introduction to business organizations and the importance of strategic planning. The report then conducts a PESTLE analysis, examining political and environmental factors affecting NWZ. ...Read More

STRATEGIC
MANAGEMENT

Table of Content
 Introduction
 Part 1
 Conclusion
 References

INTRODUCTION
 Business organization is the single or individual identity which handle by the two or more
than two person.
 It is a commercial process which provides services, products to the ends consumers.
 A business organization offers legal framework that defines the company structure, profit
dispersal and liability risk.
 It is basically an analysis done by the company which includes monitoring and evaluating
the outcomes from the policies implemented.
 As the environment is dynamic the plans and policies need to be changed according to it to
survive in the market by assessing the environment both internal and external

Pestle Analysis
 Political Factors: The Warehouse New Zealand expose itself to Political environment
of different countries by serving in various their and also has to face diversified risks in
relation to their operations at different places.
 Retail industry of NWZ gets affected by political fluctuation very badly, changes in
norms and trade polices create problem for the retail business and they sometimes fail
to run business systematically.
 For gaining competitive advantage it has to diversify the risks such as instability of
politics, taxation rates, bureaucracy and governments interruption in warehousing
business, etc. in a systematic manner according to the country's environment

CONTINUE
 Environmental Factors: Each and every market has its own standards of environment
which includes factors such as laws for environmental pollution, management of waste,
recycling, etc. which needs to be followed.
 Proper evaluation of the factors in different market can help The Warehouse New
Zealand in gaining the competitive advantage.

Value-Chain Analysis
 This analysis divides the activities of an organization in primary and support activity
and a proper analysis is done on them in regard to their contribution and outcomes of
operations in which they were used and the final value addition to the product and
services of The Warehouse New Zealand by their application.
 Primary Activities
 It includes the activities which are directly related to the conversion of inputs and raw
materials into the final products and services and their distribution process(Rosenbaum-
Elliott, Percyand Pervan, 2015).

Support Activities
 Procurement: All the resources, materials, stocks, etc. which are required for
completion of primary level activities by The Warehouse are served by procurement.
 Technological Development: Development of technology by The Warehouse New
Zealand in Transport services for delivery of goods, and hi-tech artificial intelligence
services will require a lot of research and investment, but once installed, it will result in
long term benefits(Jenkins and Williamson, 2015).

SWOT Analysis
 STRENGTH
 It has established is network globally in approximately 50 countries.
 It has a large market share in retail services(Hitt, Ireland and Hoskisson, 2016).
 Strong customer base and leading the New Zealand and other markets in different
areas.

CONTINUE
 Weakness
 It is more dependent on the other market for providing its basic services.
 It has weak brand awareness and the market share and the retail stores are
comparatively less due to strong competition.

CONTINUE
 Opportunity
 Globalization is the opportunity for the firm.
 Outsourcing of various products can services can also prove to be a good opportunity.
 The Warehouse New Zealand can provide a wide variety of services in retail sector and
also increase its share through establishing hub worldwide.

Continue
 THREAT
 The Warehouse New Zealand main threats includes the varying demand of the targeted
market and customers.
 And gradually increasing competitors and substitutes in the global and near market are
its biggest threats..
 Restrictions by different government on import and export of its specialized good and
services.

Porter Five-Forces Model
 Power of Suppliers: Suppliers have moderate power, as many suppliers are available
those to provide quality raw material to such retail firms which helps the firm in
switching the supplier if not satisfied with existing supplier.
 Power of Buyers: Now a days, the consumers demand for quality grocery and non-
grocery retail items, due to which the company has to provide specialized and quality
services to them so that they do not switch to another company.
 As their are many company other than The Warehouse New Zealand who provides
cheaper services.

Evaluation of Functional Level Strategies
 Human Resource Strategy: The overall development of employees by providing them
equal opportunities and good working conditions so that they can efficiently contribute
in the development of The Warehouse New Zealand.
 The HR should adopt strategies for recruiting, selecting and retaining the deserved
candidates and motivating them along with providing training and development so that
the technical skills and practical knowledge is gained, to satisfy the
customers(Functional Level Strategy, 2018.)
 This will help the employees to work efficiently and improve the performance of the
company.

Recommendations for Senior-Level
Management
 As a strategic analyst it can be recommended to the Warehouse New Zealand's senior
level management that by using Financial Strategy they can allocate the financial
resources in effective manner with full and optimum utilization of the same.
 Practicing this, will help in raising of required capital and the sources of the same,
working capital, payment of dividend, satisfying and motivating the employees for
their dedicated work through a good pay, etc. which helps in calculation of the overall
net worth of the company and its current position in the market.

Evaluation of Business Level Strategies
 Offering Best Prices: In this the managers of The Warehouse New Zealand mainly
focuses on delivering quality products and services through technological
advancement.
 And through this, they can attain a competitive position in the targeted market by
providing best and low prices to the targeted customers and also to retain them,
rendering customized services to them.

Recommendations for Senior-Level
Management
 As the business strategy is blend of proactive actions adopted by the management team
for enhancing the overall performance of the company and securing its position.
 The current position of the company is the result of former plans, but in an uncertain
situation The Warehouse New Zealand will have to take strategic actions in response to
the unforeseen situations(Five Types of Business-Level Strategies, 2019).

Evaluation of Corporate-Level Strategies
 This is planned and implemented by the top management of The Warehouse New
Zealand. It is long-range plan implemented for opportunities relating to expansion and
growth of business through diversification, mergers, etc.(Lasserre, 2017)
 By exploring new areas of investment such as different departments such as electronics,
furniture's, etc., to enhance the performance along with the productivity.

Continue
 Business Growth Strategy: It includes growth of business through increasing sales of its
products and services which can be done by vertical. Through focusing on the operations of
resources and horizontal through expansion to the new areas and boundaries.
 Therefore, The Warehouse New Zealand can diversify its areas for gaining competitive edge.
 Business Stability strategy: When the optimum level of the market is reached then in that case
the company strive for being at a stable process. For which The Warehouse New Zealand for
maintaining its success at the existing level makes cost-efficient process

Recommendations for Senior-Level
Management
 It is recommended to the senior-level management that for gaining the competitive
advantage and improving the performance at global level by Th Warehouse it should
also focus on Diversification Strategy for expansion of its industry at global
level(Ansoff et.al., 2018).
 Diversification can be of two types, that is, single-business strategy and dominant-
business strategy. Through this, it can diversify it products and services in different
market and gradually increase its sales and market share and gain competitive
advantage at global level (Ferlie and Ongaro, 2015).

Adoption process of globalization to expand
Business operations.
 Best way to expand business for The Warehouse New Zealand, to expand their
business is globalization because international market have more opportunity increase
business growth and it will help this company to show their presence in global a market
(Carroll, Primo and Richter, 2016).
 There are many ways to enter in globalization and expand business, some of them are -

CONTINUE
 Joint venture: Joint venture basically a partnership that involves third independently
managed organization.
 In this process two company make an agreement to work together in any market then
they create a third party who can undertake this both of the company share equal shares
from profit and risk(Cassidy, 2016).

CONTINUE
 Franchising: Franchising is the best way to expand business for any company in the
global market companies adopt this strategy to expand their market.
 In this process franchiser give all the legal rights to third party that person creates
create and make same product, and they use logo and product of franchiser company.
 Franchiser gate share from their other franchisee.

Modern technology to sustain competitive
market
 There are many companies who are doing a whorehouse business, and they all
competitor of The Warehouse New Zealand. This is important to implement new
technology which can help The Warehouse New Zealand to compete with their
competitor.
 This is important for them to adopt some new technology and ways to satisfy the
customers retain them and invite the new ones, so they can compete with others.
 Some of the strategies and modern technology can be adopted by The Warehouse for
gaining competitive advantage in the global market (Angwin and Meadows, 2015).

CONTINUE
 Artificial intelligence: This technology is same like human intelligence by machine or
computer science this is not new but it very important for a company they work with
intelligent machine who can think and work like humans they can solve problem make
plans etc.

CONTINUE
 Annalists: It is important for an organization to analyze a data carefully because it
shows the actual performance of the organization.
 This will be helpful for The Warehouse New Zealand to understand that what are their
accrual performance and how much they more need to improve for compete with the
other competitors.

CONCLUSION
 It is concluded from the above study about framing up a strategic plan for business and
its analysis by application of various models such as SWOT, Pestel, Value-Chain
Model, which lets the Warehouse New Zealand knows about it external and internal
factors which affects the business and the ways to overcome the same by adoption of
various strategies and gaining competitive advantages in global level retail industry.
 Also, the evaluation of strategies with proper monitoring at different level such as
business, corporate, etc. is done along with the recommendations which can be adopted
for further improvement which helps the organization in enhancing the performance.

REFERENCES
 Ferlie, E. and Ongaro, E., 2015. Strategic management in public services organizations:
Concepts, schools and contemporary issues. Routledge.
 Formentini, M. and Taticchi, P. 2016. Corporate sustainability approaches and
governance mechanisms in sustainable supply chain management. Journal of Cleaner
Production. 112. pp.1920-1933.
 Goldsby, T. J. and Zinn, W. 2016. Technology innovation and new business models:
can logistics and supply chain research accelerate the evolution?. Journal of Business
Logistics. 37(2). pp.80-81.

CONTINUE
 Goldsby, T. J. and Zinn, W. 2016. Technology innovation and new business models:
can logistics and supply chain research accelerate the evolution?. Journal of Business
Logistics. 37(2). pp.80-81.
 Hanson, D and et.al. 2016. Strategic management: Competitiveness and globalisation.
Cengage AU.
 Henri, J. F., Boiral, O. and Roy, M. J., 2016. Strategic cost management and
performance: The case of environmental costs. The British Accounting Review. 48(2).
pp.269-282.
 Hill, T. 2017. Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.

CONTINUE
 Lasserre, P. 2017. Global strategic management. Macmillan International Higher
Education.
 Makaci, M and et.al. 2017. Pooled warehouse management: An empirical study.
Computers & Industrial Engineering. 112. pp.526-536.
 Michael, S., Storey, D. and Thomas, H. 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset.
pp.45-65.

CONTINUE
 Panico, C. 2017. Strategic interaction in alliances. Strategic Management Journal.
38(8). pp.1646-1667.
 Rahman, N. 2017. An empirical study of data warehouse implementation effectiveness.
International Journal of Management Science and Engineering Management. 12(1).
pp.55-63.
 Rosenbaum-Elliott, R., Percy, L. and Pervan, S. 2015. Strategic brand management.
Oxford University Press, USA.