Essay about Woolworths Ltd Strategic Analysis

2958 Words May 6th, 2013 12 Pages
Contents

Introduction------------------------------------------------------------------------------------------------------2

Part A: Woolworths Ltd Strategic Analysis---------------------------------------------------------------2

SWOT analysis for Woolworths Ltd------------------------------------------------------------------------3

Key Capability Analysis---------------------------------------------------------------------------------------4

Major stakeholder analysis for Woolworths Ltd---------------------------------------------------------5

Assessment of Business Level Strategy---------------------------------------------------------------------6

PART B: Woolworths Ltd Strategic
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* Due to Woolworths’ informal hierarchical system between part time employees and full time employers, head of branch lacks communication with these part-time employees. This makes it difficult to make application of motivation to employees and finally leads to high staff turnover (UKESSAYS, 2012). * Squeezing price cut from the suppliers * To cut costs, Woolworths squeeze price cut from its suppliers taking advantage of its strong bargaining power. This potentially would destroy its relationship with suppliers (Mark & Madeleine, 2012). * Contradiction for the strategy * There’s a contradiction between cost leadership strategy (relative low costs) and fresh organic strategy (relative high costs). * Frequent recalls * Frequent recalls of variety of products will make customers query Woolworths brand image and damage its reputation. | Opportunities | Threats | * More customers with access to the products due to the development of online shopping, with the overall online selling increased in every market (IBIS, 2012). * Cheaper inputs through import, as Australian dollar has been stronger against USD since 2009 (Colonial, 2012). * Shrinking of consumer disposal income caused by the ongoing financial crisis (e.g. the European debt crisis), especially for low-income families, which would give rise to customer preference

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