...Implementation Lecturer – Jessica Kennedy Due Date – 11:00pm Thursday 26th April 2012 Word Count – 2669 In order to analyse Woolworths’ strategy and its implementation, consideration will be given to the competitive environment that exists between Woolworths and Wesfarmers (Coles), the notion of competing duopolies and the role that management plays in the process. The purpose of this essay is to discuss competing duopolies and how they impact on the development of an organisation’s strategy and implementation. In a duopoly two firms compete for market share, so strategic thinking by management plays an important part in strategy development and the creation of a competitive advantage. Strategic thinking allows management ‘to more fully capture and analyse the relevant forces creating new market opportunities and business strategy requirements’ (Cravens, Piercy & Baldauf 2009, p.32). Woolworths has for many years been the dominant player in the Food and Staples Retailing Industry but since Wesfarmers’ takeover of Coles, Woolworths has had to be more on the defensive matching Coles in its low-cost pricing strategy on many product items (Sell on News 2011). Whilst Coles is trying to regain market share within its supermarket division, Woolworths is endeavouring to develop operational scope in the area of hardware, where Coles has held a monopoly situation (Sell on News 2011). In competing duopolies, the quality of the management team and their ability to provide future...
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...April ALDI offering the ‘same for less’ value proposition Andrian Saputra Njonoriswondo Billy Qian Claudya Vici Yvonne Huang 17 Table of contents Introduction Australian Retail Industry Market Segmentation Product Differentiation Consumer Perception Cost Effective Strategy Potential Future Problems Conclusion Appendix References pg. 2 pg. 2 pg. 2,3 pg. 3 pg. 4 pg. 4,5 pg. 5,6 pg. 6 pg. 7 pg. 8,9 M A R K 1 0 1 2 M a r k e t i n g F u n d a m e n t a l s Introduction In present, the number of retailers in the marketplace is uncountable. Hence, it is important for the organisations to understand and satisfy their consumers and customers in order to have a long-run survival in the marketplace. Every organisation is aiming to be efficient and effective in operation. Thus, they have to be sure that consumers and customers have a freedom to choose goods at the best price and perceive a service that match their preferences. To succeed, the company has to be certain about which part of consumers or customers they want to satisfy. In other words, they have to create a more focused target market. This idea is often called market segmentation. Market segmentation can be defined as a marketing strategy that involves dividing a broad target market into narrower target consumers who have common needs and wants (Goldstein 2007). ALDI has been regarded as a successful company that can meet the expectations of customers whereas the other existing firms are...
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...Assessment 2: Mini Case Analysis Introduction The Supermarkets and Grocery Stores industry in Australia is under fierce competition, and the industry revenue is expected to grow at an annualized 2.2% in the next few years, to reach $98.1 billion (IBIS 2016). A growing number of discounters have infiltrated the industry, such as ALDI, which has forced two dominated companies, Woolworths and Coles, to lower prices and increase the number of private-label products (IBIS 2016). Malaysia hypermarket retail chain Giant is also eyeing the Australian market. Given the business context in Australia, political, economic and technological are the most relevant macro environmental factors that Giant should consider. Political factor The export tariff is an important issue in trading as Australia was Malaysia’s 10th largest export destination, accounting for 3.6 percent of Malaysia’s exports (Department of the Prime Minister and Cabinet 2012). The Malaysia-Australia Free Trade Agreement (MAFTA), was signed in May 2012 and came into force on 1 January 2013, provided a high level of market access liberalization for goods into the Australian market (Department of the Prime Minister and Cabinet 2012). The implement of MAFTA is likely to lower the cost of Malaysian products, enhance the relationship between trading partners and create investment opportunities and jobs in Australia market. Furthermore, according to the report of the Economist Intelligence Unit, Australia achieved one of the...
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...Looking Beyond The Boundaries – A strategy to gain competitive advantage for the Coles Group of Australia By Aruna Kulatunga MGG9352 Management Processes and Systems. Semester 1, 2007 Looking Beyond The Boundaries – A strategy to gain competitive advantage for Coles Group Executive Summary The Coles Group of Australia has allowed its competitive advantage to slip away to rival Woolworth by failing to differentiate its core strategies and by failing to articulate well the strategies that could have been differentiated. In a bid to gain competitive advantage, this report suggests that the Coles Group should look beyond the company boundaries, extending its value chain to suppliers, partners and customers in a seamless manner, employ process like Total Quality Management and Business Process Reengineering in extending the value chain, bedded in a well structured change management programme and look towards globalisation and franchising along with such counter-intuitive, yet innovative, location strategies such as competitive clustering and saturation marketing to regain its competitive advantage. Page 2 23/10/07 Looking Beyond The Boundaries – A strategy to gain competitive advantage for Coles Group Introduction Strategy gurus Porter (1998, p. 2), Mintzberg (1994), Hamel (1998), Hamel and Prahalad, (1994) Champy and Nohria (1996) and Hammer (quoted in Champy and Nohria, (1996)) agree in principle that in order to meet business needs, specific actions need to be...
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...assets and liabilities are understated and performance ratios such as return on investment are overstated. In addition, financial risk measures are not accurate and useful (‘bear no relation to reality’). Off-balance sheet items attracted attention at the time of the collapse of Enron in the USA in 2001. A report by the SEC in 2005 estimated that US companies were committed to US$1.25 trillion in lease payments relating to leases which did not appear on balance sheet. The author estimates that 90% of Australian leases are off-balance sheet. 3. Standard setters propose revising leasing standards to require capitalisation of all leases. Explain the financial impact for Coles and Woolworths in 2007-08 of having ‘off-balance sheet’ leases. In the 2006-07 year, Woolworths had AUD $11.8 billion and Coles AUD $10.8 billion of off-balance...
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...cost-leadership strategy. Its approach is to offer a limited number of good quality products at low prices. Due to above reason, customers have limited choices of the products compare with those large chain supermarket eg. Coles. Aldi also offers a selection of ‘surprise buys’, which change every week and are only available as long as the stocks last. The Aldi website states that they focus on their own brands in order to remain independent, enabling them to avoid high marketing costs often associated with national brands and to set their own price, product and quality policies. According to Shoebridge, however, house brands are attractive for grocery retailers because they cost 5–20 per cent less than national brands, depending on the category. In addition, a retailer’s profit margin on house brands is about two percentages points higher than the margins on a national brand. The limited number of products enables Aldi to leverage its impressive buying power and to control the cost of its products by buying in large quantities. According to Brandes, Aldi has 30 to 100 times the buying power of Wal-Mart. Minimising costs at all levels in the value chain is the key to Aldi’s business strategy. Aldi stores are usually 1200 square meters in size, the biggest Coles supermarkets, by comparison, are about 5000 square meters. The small size of the stores makes new sites cheaper and easier to find, compared to other supermarkets with their jumbo-sized stores. Aldi usually starts with locations...
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...Table of Contents Introduction 4 Objectives 6 Literature Review 7 Framework 9 Data Analysis 14 Qualitative Analysis 14 Qualitative Analysis 16 Research Methodology 17 Conclusion 20 Bibliography 21 APPENDIX – I APPENDIX – II APPENDIX – III APPENDIX – IV APPENDIX - V Introduction Predictive analytics has its origin from a famous saying: Past performance is the basic indicator of future results. It looks at historical cases and builds models which can then be applied to benefit present scenarios or predict future scenarios. Predictive Analytics is the best way for a business to predict customer responses in the future. It provides solutions for businesses facing main problems like ‘What segment of potential consumers will respond best to our message’ and ‘how can I stop my customers from leaving, and why am I losing them?’(Curtis, 2010). Predictive analytics is not just for providing a solution for a business problem but involves techniques mainly to improve the focus of company towards customers and customers towards company. The magnificence of predictive analytics is that a business characteristically perceives a win-win situation. In other words, a business not only benefits from higher returns but also gets to save on cost (Colin, 2009). Predictive analytics is becoming a competitive necessity and an important aspect of many types of business, particularly in this type of economy where an organization is trying to increase its efficiency and at...
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...to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices and innovation that ALDI offers. ALDI has been consistently making the case to Federal, State and Local Government in support of land use planning and zoning reform for over a decade. For this reason, we welcome the focus of the Review on identifying and removing unwarranted regulatory impediments to competition, including those relating to the grocery retailing sector. 2. About ALDI...
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...to customers voting with their feet and embracing the very fact that we offer something different. Despite ALDI’s successful establishment in Australia over the last 13 years, the fact is that our expansion has been considerably slower than planned due to regulatory constraints. These take the form of rigid and overly-prescriptive land use planning and zoning rules at state and local government levels that have resulted in a chronic shortage of suitably zoned land for small format supermarkets in many built-up areas. The direct consequence of this significant barrier to expansion is that fewer Australians are able to benefit from the competition, lower prices and innovation that ALDI offers. ALDI has been consistently making the case to Federal, State and Local Government in support of land use planning and zoning reform for over a decade. For this reason, we welcome the focus of the Review on identifying and removing unwarranted regulatory impediments to competition, including those relating to the grocery retailing sector. 2. About ALDI...
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...Analysis of the grocery industry Coles Supermarkets Australia October 2012 Analysis of the grocery industry Contents Glossary ..................................................................................................................................... i Executive Summary.................................................................................................................. iii 1 Introduction .................................................................................................................... 1 1.1 1.2 Project approach and objectives........................................................................................ 1 Report structure ............................................................................................................... 2 2 3 Coles – an overview ........................................................................................................ 3 Economic contribution of Coles ....................................................................................... 5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Modelling approach .......................................................................................................... 5 Direct economic contribution ............................................................................................ 6 Indirect economic contribution ......................................................................................... 6 Total economic contribution .......
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... Firstly, our team will describe the main problems to be confronted by ALDI. Then the goals and objectives of the project will be clarified, and the crucial factor for business future development is also listed. The following sector offers a full view of the business case. Specifically, this part contains the reasons and motivations for exploiting the new project, and the business case organizer. Additionally, the relevant environment conditions are described from several aspects in detail. Meanwhile, the current situation and opportunities are analyzed via SWOT model. After that a detailed description of assumption and obstacles about present condition and future projects is shown. Next, we provide two feasible options for ALDI, and we adopts several elements and methods to weigh both options. Then a constructive and enforceable recommendation and opinion is given through previous analysis. Finally, the implementation strategy of project will be identified briefly. * 1. Introduction Nowadays, online shopping in brick-and-mortar stores is a common consumer practice. Mobile devices, especially smart phones, have become a key tool for web shoppers (Turban, Volonino and R. Wood, 2012). Our business case is based on practical problem for ALDI that is the missing link to purchase goods from website and within the app. As of December 2013, ALDI was placed in the Top 3 of supermarkets in Australia in terms of market share by Roy Morgan Research’s Supermarket Currency...
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...farmer has no control over aspects of the environment The business such as drought. However, the farmer can prepare for possible adversity in the environment and environment refers to quickly adapt to those changes. Effective managers are constantly monitoring the business environment to pick up any change that may impact on their business. If they pick up a change quickly and respond before their competitors, it may lead to a significant advantage to their business. This is what happened when Woolworths’ managers picked up the trend to the healthy life style before the managers of Coles. The Woolworths’ managers immediately responded by developing a focus on fresh produce, delicatessens, bakeries and dairy. Customers responded by leaving Coles and shopping at Woolworths. Now that Wesfarmers Limited has purchased Coles its managers are quickly implementing strategies to regain their competitive advantage. anything that affects the operation of the business 55 HomeThink Draw the Woolworths’ logo. What does it represent? Is it effective? 3.1 External influences The external influences from the business environment are those outside the control of a business’s managers. The manager can only respond to external influences in ways that hopefully give the business an advantage over its competitors if the competitor is also slow to respond. Some of the most important external influences are economic, financial, geographic, social, legal and political. Economic cycle refers...
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...Examination instructions to Students Subject: Bus 317 Strategic Management Please read these notes carefully: 1. The examination will be based on the following case Cochlear via the LMS site for BUS317. 2. You are expected to read the case in detail AND update the information i.e. you are required to know the competitive situation and the internal functioning of Starbucks to October 2013. 3. You are allowed to prepare a single A4 sheet, double-sided, TYPED. Attach this sheet to your answer script. Please DO NOT attempt to reproduce everything you have written down on the A4 sheet in your answer. The A4 sheet is a SUPPORT not a CRUTCH!! 4. To help you answer the exam questions, I suggest you include data on: a. the external environment, cochlear implant industry and closely-related concentric industries and competitive environments.e.g. market share, value of market, major players, rates of change, growth rates; b. Internal analysis to determine organisational capabilities, core competencies 5. The 2-hour exam will comprise 1 section, with a choice of 2 questions. You will answer one of these 2 questions, not both. If both are answered, the answer that appears first will be marked. 6. Q1 looks at the competitive environment and asks you how to resolve a critical competitive issue where you need to devise real world solutions grounded in theory. What is your solution, and more importantly, show how your solution is viable given...
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...deduction and it reduces the company’s overall profit. (Salary is >$5 million) To find information about a company, we rely on: 1. Information asymmetry, voluntary disclosures 2. Annual reports - contains information about company and general purpose financial statements *Information asymmetry: a situation in which one party in a transaction has more or superior information compared to another (such as the seller knowing more than buyer) Woolworths Example: To find the annual report of Woolworths: 1. Search for the company website 2. Find the category – ‘Woolworths Limited’ 3. Locate ‘Invest in us’ – find all the history of annual reports Most of this information in annual reports is based on accounting. Woolworths Example: To check/reference the validity of CEO’s salary, we view 1. Company’s overall performance 2. Company’s competitors, in this case, Wesfarmers (including Coles): Richard Goyder (CEO with salary of $8.6 million in 2013) 1|Page Financial Accounting System and Managerial Accounting System Woolworths Example: Woolworths have external decision makers such as ASIC, ASX, ATO, shareholders, consumers, suppliers (e.g. farmers), government, auditors, bank and analysts – involved in the financial accounting system The managers of a company would be considered in the managerial accounting system. They have the most information about the company. The insiders of companies can...
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...Australian Fruit Juice Industry Report Executive Summary The purpose of this report was to examine the Australian Fruit Juice industry. Research for this report included the IBISWorld Fruit Juice Drink Manufacturing report. The Australian Fruit Juice industry consists of 56 wide ranges of beverages including flavoured water, iced tea, and fruit drink and fruit juice, with 4 major companies representing 71.5% share. The industry had an annual growth of 1.1% in 2008-13, businesses profited over $106.2m creating the industry revenue of $2.0 billion. The major findings indicate the importance of correct advertising and labelling of fruit juice this ensures that no legal matters are taken against the business, how black-label brands hold a 10% share of the market holding a threat to other business with the ability to charge lower prices and committing more shelf space to their own fruit juices and how important it is for business to follow customer trends as they hold the purchasing power. The report also compares and contrasts Boost Juice Bars and Spring Valley Juice marketing strategies, recommending that Boost Juice Bars continue on with their strong marketing mix and Spring Valley focus on their customer trends and target market. The report also recommends the industry swap to BPA free plastic bottles to better enhance their brand and health and safety of their consumers. Table of Contents 1. Introduction …………………………………………………………………………………3 2. Fruit Juice Industry Overview...
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