The paper “ Woolworth Supermarket - Mission, Vision, Values, Strategic Analysis, Strategy Formulation, External and Internal Analysis” is a fascinating example of a case study on marketing. Owned by Woolworth ltd, Woolworth supermarket is the largest chain in Australian. Woolworth Ltd was established in 1924 as a single basement store known as Woolworth Stupendous Bargain Basement in Sydney (Woolworths Supermarkets, 2012). Today, the supermarket is a household name operating over 2,330 supermarket stores and serves over 13 million consumers in a week. The supermarket offers different products that vary from fresh foodstuffs including grocery, fresh foods, and general merchandise targeting all the Australian populations.
Woolworth’ s supermarket introduced a new slogan i. e. “ Fresh Food People” which remains a key part of its new logo as it’ s known throughout Australia. In 2009, Woolworth supermarket opened stores in New Zealand (Global Data, 2011). 2.0 Strategic developmentA strategy is a unifying theme that offers direction and coherence to the decisions and actions of a company and has an important role in the success (Porter, 1985). In the practice of strategic, and in companies, strategies must be implemented to achieve the intended results.
When developing business strategies, one must consider the resources available to the company such as facilities, technology, money, workers skills, and business know-how. Strategy formulation refers to developing an overall approach on how to utilize the company’ s resources to tap market opportunities in a manner the offers competitive advantage (Gopinathan, 2010). These strategies also consider likely technology, economic and another kind of threats that damage the company. These strategies also consider likely technology, economic and another kind of threats that damage the company. Woolworth supermarket uses the following process when developing strategies. Strategy Development Process Objective Platform Issues Representative Activities Mission, Vision, and Values (what business is Woolworth in, and why) -To reaffirm the highest level guidelines about organization purpose and conduct Establish the vision in terms that are conducive to execution -mission analysis -vision statement -core values -Enhanced vision Strategic Goals (where is Woolworth going) -To clearly define the highest level financial or mission goals that will drive the strategy Establish the economic model that will be used throughout the strategic management process -Macro mission-measure -Value gap decomposition -Strategic themes -3-10 years goals -Financial model Strategic Analysis (what are Woolworths key issues) To identify, through structured analysis, the events, forces, and experience that impact and modify the strategy Define the linkage between the influencing forces and the process of value creation -Environmental scan (PESTEL) -Internal scan (SWOT) -The strategy of record review -Key issue identification Strategy Formulation (How can Woolworth best compete) To define where and how the organization will compete -Ensure that changes in strategy are linked to changes in the planning and execution processes -Establish the boundaries of permissible change -Where to compete -Differentiation -How to compete -Strategic change agenda 3.0 External environment analysis 3.1 PESTEL AnalysisMany factors in the macro-environment affect the decision of any company.
PESTEL analysis factors are political, economic, sociological, technology, legal, and environmental (David, 2010).
In order to be strategically prepared for any change introduced in the company and have awareness of the external environment, a company should conduct a PESTEL analysis to examine each factor to assess its impact on the company. 3.1.1 Political and legal analysisDifferent Legislations have a different impact on the operation of a company. They can either an opportunity for a company or restrict its operations. For instance, It has been anticipated that value-added tax will rise since the government requires more revenue to finance its huge budget and this will affect Woolworth sales.
Since Woolworth supermarket deals with fresh foods and groceries, legislations containing Food Works Labeling Edition and FSANZ Food Standards Code may affect its operation. Moreover, a good political atmosphere is very important for Woolworth’ s operations. 3.1.2 Economic analysisEconomic factors have a direct impact on the buying behavior of consumers, and therefore a matter of concern to Woolworth supermarket. The current economic climate has lead to lowers spending levels. For cost savings, customers have switched to private label brands.
Subsequently, Woolworth has increased its private-label offering to be able to compete on the basis of the price while realizing the higher margins and on the basis of choice convenience. 3.1.3 Social analysisAustralia’ s population indicates that children are less as compared to retired people representing a Baby Boom generation (people aged between 42 and 61 years), (Australian Bureau of Statistics, 2012). This is discouraging to Woolworth's supermarket since older people tend to eat less. As compared to the young generation, the Baby Boom generation is less likely to travel to supermarkets to shop.
Despite the fact that internet literacy level has dropped over the aging population, they find online shopping more convenient. However, small deliveries are viewed to be expensive and ineffective. Customers have become more health-conscious making their attitude towards food to continuously change. The increasing demand for organic food has been accommodated by Woolworth supermarket so as satisfy its customers.