Company Operates In Industry Of Supermarketâ€Myassignmenthelp.Com

Question: Discuss About The Company Operates In Industry Of Supermarket? Answer: Introducation Woolworth is the firm that operates in the industry of supermarket. The company started its first store in Sydney in the year 1924. Till the year 2012, the company has been considered as the biggest firm in the industry (Australia, 2007). Today also, it is one of the largest supermarket chains in New Zealand as well as in Australia. There are number of brands that the company operates such as Safeway, Dick Smith and Big W etc. the major function of Woolworth is that it acts as the mediator between the producers and the customers (Woolworths, 2017). The company serves the people with their online website as well and thus it makes the customers base from the online services. There are many competitors to the company but the major one is Coles. Both these companies have duopoly nature of leadership in the supermarket industry of Australia but government these days is suppressing their power and giving chance to the new companies to enter the industry so that the duopolistic situation ca n be controlled and the new companies can also serve the people in the market. Vision and mission: As far as the vision of the company is considered, it has been analysed that the company believes in delivering the best shopping experience to the people every time. The mission statement of the company suggests that it wants their customers to be fully knowledgeable about the products and the services they are availing from the company. Approaches to achieve vision and mission: There are different approaches of the company to achieve the above stated vision and mission. There are four strategies that have been used by the company in order to have the vision and the mission of the company. The strategies are: Extending the leadership in the area of food and liquor. Improving the portfolio of the company to increase the value to the shareholders. Tracking the records in order to grow. Putting in place all the areas for growth. PESTLE analysis: Political factors: Political factors involve the elements that are related to the government involvement in the industry. The government of country directly involves in the practices of supermarket industry (Freeman, 2010). Australia Competition and Consumer Commission, Trade Practices Act and Foreign Investment review Board are some of the associated authority that regulates the industry in Australia. Economic factors: Economy factors are related to the economy of the country. All the factors of economy are favourable for the company called Woolworth. This is because the economy of Australia is stable in nature. People here have high purchasing power and thus can afford to buy the things from Woolworth. Technological factors: as far as the technological factors are considered, it has been analysed that the company is very well versed with the technological tools such as online shopping facility. The company has its own website that provides good user interface to the customers (David, 2011). Social factors: the major social change that has been observed in Australia is about the choice of diet food. The people are more concerned about their heath these days and thus require Diet food (Hitt, Ireland Hoskisson, 2012). The company is offering the same to the customers in the form of healthy food products. Legal factors: Trading policies are the major legal element that affects the functioning of Woolworth. This is because it imports many products from different countries. Environmental factors: Woolworth practices producing the organic food are one of the practices that shows the company is concerned for the environment sustainability (Hill, Jones Schilling, 2014). SWOT Large market share Good financial position in the market: the company is serving the large market and has large number of business thus it has good and strong financial position as compared to other companies in the industry (Peppard Ward, 2016). One of the leading firms in the industry: the company has the duopolistic power and thus have large market share in the Australian supermarket industry. Efficient supply chain management system: the supply chain of the company is so effective and thus supplies the products on time (Klein, 2009). High brand image: the company never compromise in quality and serve the customers with good quality products and have a great brand image. Weakness: High operating cost because of large operations: As the company operates at very large level, thus the overall operating cost of the company is very high. Opportunities: Opportunity to develop more sustainable practices: there is an opportunity for the company to develop the practices that are more sustainable such as green marketing. Launching own brand of diet food or drinks: serving the people with own brands products is also an opportunity to expand business in the new section (Swayne, Duncan Ginter, 2012). Threats: Competition from the small companies like ALDI: the small competitors such as ALDI are giving tough competition to the company. Technological advancement: change in the technology act as the threat for the company. Change in customer choice: in this dynamic environment, the choice of customers changes and thus it is a threat for the company to cater the different needs timely (Hesterly Barney, 2010). Potential competitors: The major competitor for Woolworth is Coles. This is because; both the companies are serving the market with duopoly in the industry. It is the subsidiary company of Wesfarmers. Some of the strengths and weaknesses are: Strength: the company is the major competitor for Woolworth thus has the large market share in the industry. Its pricing strategies are very impressive and provide the customers with frequent price cuts and offers (Finkelstein, Hambrick Cannella, 2009). The online pick-up and delivery service of the company is also very efficient. Weakness: the company has faced the criticism from suppliers for negotiating with them and this has affected the companys image in negative way. Revised vision and mission: As per the analysis of the overall environment of the industry and the market it has been analysed that Woolworth should make some of the alterations in its vision and mission. The revised vision of the company should be: To deliver the best services and experience of shopping to the customers with convenience This vision is revised in order to make the changes in the shopping experience of the people and to serve them with better services (Nag, Hambrick Chen, 2007). Convenience is the best thing that can attracts the customers to the shopping centre and thus providing convenient services and processes to shop helps in attaining customer satisfaction. The revised mission should be: To serve the market with diet food with low price and offers Diet food is the first choice of the customers these days. Thus, it is important for the customers to make such changes in their food options. Delivering the market with the food products helps the company to attain the customer market share of new market segment (Thompson Martin, 2010). Organizational values required: There are many values that the company uses to achieve its objectives. Now as per the analysis the alteration has been done in its vision, so the company needs to add on some values in its old value set. Some of the values that need to be added are: Being responsible towards the environment Manufacturing own products at low prices Enhancing the practices of customers support Formulation of strategic objectives The new strategic objective of the company should be related to create some new experience for the customers at the time of shopping and providing them with great offers along with serving the customers with their products. Some of the objectives are: To develop the staff and customers interface Improving the online website interface to make it more user friendly Making the sustainable manufacturing process and serving the customers with organic food (Wheelen Hunger, 2017). Provision of offers and discounts to loyal customers; increasing the number of loyal customers by 20% Develop strategies: timeframe, parties responsible, and performance indicators Strategies Time duration People responsible Performance indicators Training to the sales staff 3 months HR department of the company is responsible for this activity The performance indicator is the customers satisfaction score Making changes in the customers support option of the website (Evans, Stonehouse Campbell, 2012). 3-4 months The IT department of the company The performance indictor in this case is the website surfing score or the number of people using the website for shopping Discounts on non-seasonal products Every year The pricing department of the company The performance indicator of the strategy is increase in sales of the non-seasonal products Serving the customers with own organic brands (Keith, 2012). A year Production department of the company along with top management The performance indicator in this case is successful release of the new products. It is the part that discusses about the implementation of the strategies that has been formulated in the above part of the assessment. The strategy can be implemented by some of the support services such as the human resources of the department, prior communication of the strategies to the people and providing and evaluating the implementation of the new strategy in the company by some of the methods. KPI progress: Customer satisfaction score: It is the performance indicator that describes about the level of customers satisfaction and the increase in the number of customers who are satisfied it to services (Arli, Dylke, Burgess, Campus Soldo, 2013). For this purpose, the analysis needs to be conducted in order to determine the level of customer satisfaction after training the sales staff. It has been analysed that the earlier a score of customer satisfaction was76% and now after three months of the training implementation, it has been observed to be 83%. This suggests that the strategy that has been sued to make the customers interaction better and to improve the shopping experience of the customers has proved to be successful at some extent (Vonk, Geertman Schot, 2007). Number of online shoppers: It has been analysed that number of online shoppers suggest the level of user friendly interface of the site. If the number of online shoppers of the company increased, this means that the website of the company is user friendly. After assessing the new website features, it has been analysed that the online shopper percentage has increased by 5% from the last 3 months. Increase in sales of non-seasonal products: even after implementing the strategy of discounts and offers the sales of non-seasonal products has not showed any improvement. Thus this strategy should be altered to make the progress. Release of new products: As the evaluation is done after 3 months, so identifying progress of this KPI is not possible. It has been analysed that the company has planned to enter the range of healthy food products and manufacturing the organic food but the plan is still in progress and has not been approved by the top management. Milestone progress To develop the staff and customers interface: This is the first objective that has been set by the company. It has been observed that the interface between the staff and the customers has improved because the customers satisfaction level and the number of foot falls in the store have also found to be increased. It can be said that the objective is 70% achieved. Improving the online website interface to make it more user friendly There are several customer supports features that has been changed and altered according to the requirement to make the website for user friendly (Dos Santos, 2011). The objective of the improving the website and getting more customers has completed around 40% as the rise in the number of customers is 5%. The company wants it to be at least 12.5%. Making the sustainable manufacturing process and serving the customers with organic food: It has been analysed that the plan or the manufacturing the organize food and releasing it into the market is ready but need the approval of the top management thus the objective is 20% achieved. Provision of offers and discounts to loyal customers: the loyalty of the customers has been increased by 5% only and thus it has been observed that there is no such growth. The non-seasonal product sale is also found to be increased. Overall progress As far as the overall progress is concerned, it has been analysed that the objective of achieving large number of online customers is at the verge of completing and the company is doing well with its strategies (Khan, 2011). The strategy of providing discounts have failed as it does not forced to be effective, thus it is required the company to make alterations in this strategy. This is because it is the major strategy of the competitor fir that is Coles. If Woolworth failed to apply this strategy effectively then it is difficult for the firm to compete with Coles. The online sales have also increased slightly as the change is website is done (Wahyuni, 2010). This change is effective but by making more changes and making the site easy to use for the customers can provide more benefits in this field. Improvements: In terms of improvement, the major improvements have been seen in the customers satisfaction store. It has been analysed that the customers are very much satisfied with the new and trained staff. Training of staff results in better communication skills and better interaction.Improvements have also been observed in the field of online shopping. The better user interface of the website brings new improvements in the online shopping facilities by the company. There are many benefits of that have been observed in the companys process. The improvements that have been observed support the company to compete with the competitors and also with the new entrants who are also serving the market very well and grabbing the market share. There is still the scope of improvement in the strategic plan. The improvement can be made in several areas such as online website. Here the customer supports feature can be improved so that customers can easily contact the customer supports executives and get imm ediate response. The major area that needs to be improved is providing area. This is analysed that the offers and the discounts that are offered to the customers are not that promising. It is really important for the company to make efforts in this area and prepare a good plan for pricing. Communication plan: audience, resources, time frame, presentation. Communication plan is required to map out the activities that need to be done in order to communicate about the plan to the relevant audiences (Spillan Ling, 2015). The communication plan requires some of the resources and people to deliver the information to the relevant audiences. The audience of this report or the strategic plan are the employees and the top management people along with brad of directors. This is because it is required to inform the employees of the respective department about the changes made in the strategies and the revised mission and vision of the company (Narsing, 2011). Top management needs to know all these things as they need to make ultimate decision over the changes. The other stakeholders such as shareholders also have right to know all this and different mediums can be used to save the information to shareholders such as E-mails. The resources that are required to conduct the communication of the information are the meeting room and the presentation for the employees and the top management. For shareholders, the information required to be transferred from mails or letters thus computer system is require along with the typed information. Timeframe: the time required to communicate the plan is 1 week for the shareholders, 2 or 3 days for the employees and a week to all the top management people. References: Arli, V., Dylke, S., Burgess, R., Campus, R., Soldo, E. (2013). Woolworths Australia and Walmart US: Best practices in supply chain collaboration.Journal of Economics, Business Accountancy Ventura,16(1). Australia, E. C. (2007). Sustainability.Every Child,13(1), 1-35. David, F. R. (2011).Strategic management: Concepts and cases. 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