Management 1 Assignment 2: Business Strategies and Sustainability

This report analyzes Woolworth's business strategies, focusing on cost leadership, differentiation, and integrated low-cost approaches. It discusses how Woolworth employs these strategies to attract a larger customer base and achieve profitability. The report also examines Woolworth's commitment to sustainability, highlighting its efforts in environmental, social, and economic aspects of sustainable development. The analysis covers carbon emissions, packaging, fair treatment of employees, and financial governance, demonstrating how Woolworth integrates sustainability into its business model for long-term success. References from Bocken et al. (2016) and França et al. (2017) are included to support the discussion on business models, circular economy, and sustainable development.

Management
Assignment 2
Student’s name
9/18/2019

Management 1
Introduction
The famous five strategies at the business level majorly focus on cost leadership, product
differentiation; the focused strategy highlights the market niche and low-cost leadership.
Moreover, it also covers information for the sustainability aspect of Woolworth.
Part 1
Cost leadership highlights about offering the best at the best prices for the products. This
particular strategy highlights the cost of making goods, transport and delivers made to the
customers, who ultimately generates the average results, and no real competitive advantage is
generated. McDonald's by keeping low cost helps them in earning more.
Differentiation strategy highlights the unique aspect, in which customers do not mind paying
the premium prices rather the buyer of the product majorly focuses more on the features and
benefits of the product. For example, apple company which is most expensive than Samsung, but
still people buy apple as it differentiates itself as luxury with the high standards and added
quality with features (Bocken, et al, 2016).
The focused low-cost strategy highlights the exclusive buyers and products in which they
majorly trying to beat the competitors' price by majorly focusing on marketing efforts. for
example, Shangri la hotel reduces its prices so as to target the largest customer base and focus on
its marketing effort to win over its competitors.
Focused differentiation strategy majorly helps the business to define a niche where it is
profitable and not competing solely on prices. As Ilia, cosmetic brands deal in the niche by
making its products through organic aspects.
Lastly, integrated low cost, which combines low cost with differentiation. This provides
flexibility in price as well as benefit. Claire company targets young women to buy inexpensive
accessories and which has worked over three thousand locations (Bocken, et al, 2016).
Woolworth one of the famous retail groups of Australia, which applies the low-cost strategy in
which they make the availability of their product at a reasonable price to attract a larger customer

Management 2
base. Moreover, for future concern, Woolworth should apply integrated low cost in which along
with the lower cost they should start with something differentiation in the product selling so as to
attract more customers and generation of more profitability and success in the long run. For this,
the company needs to motivate, a reward for developing a good organizational culture (Bocken,
et al, 2016).
Part 2
Sustainability means, meeting the needs of the present without compromising the ability of the
future generation. The three requirements of sustainable development are- social, environmental
and economic, in which environmental in which company majorly focuses on waste, packaging
and carbon footprints and their effect on the environment is considered. The social aspect defines
social license for the employees, stakeholders and the community in which the company treats
them fairly. Lastly, the economic pillar in which the company tends to follow the sustainability
aspect along with the generation of profit in the long-run.
In Woolworth concern, they follow all these requirements of sustainability development, as they
keep their carbon emission low, the changed their packaging aspect, along with this, they also
treat their employees fairly both locally and globally by generating benefits such as better
maternity, flexible scheduling, learning and development opportunities are created for
employees. Lastly, they fulfill the sustainability aspect by generating larger profits for the firm
with a proper governance system and risk management (França, et al, 2017).

Management 3
References
Bocken, N. M., De Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and
business model strategies for a circular economy. Journal of Industrial and Production
Engineering, 33(5), 308-320.
França, C. L., Broman, G., Robèrt, K. H., Basile, G., & Trygg, L. (2017). An approach to
business model innovation and design for strategic sustainable development. Journal of Cleaner
Production, 140, 155-166.