Analysis Of WHL And DJS Merger

WHL and DJS Mission, Vision, and Values

Question 1 answer

Both WHL and DJS are successful business units that are based in different countries. Their mission, vision and core values give their designated morning of ethics and corporate responsibility. DJS mission is to ensure all of the Woolworth fraternity have completely achieved financial security as well as improve their well – being relevant as the chain store provide a huge and relevant means of savings through the well-developed prices, created employment as well as other measures enhanced to ensuring the stakeholders benefit from the chain store both directly and indirectly (Pilcher, 2017). The company’s vision is to be the most preferred and main provider of financial services in the area for the company’s employees as well as their immediate family members that understand and may require financial services. the company also has a list of values forming the basis for the employees and leaders code of conduct, these are trust, honesty in their line of work, moral integrity, financially strong, safety of the customers, competence in leadership and governance as we as excellent service to the  customers and other members of stakeholders among many others. These values are important as they ensure adequate provision of well-enhanced services to the company’s customers. WHL mission is to remain relevant in the fashion industry by providing only the best to their esteemed customers (Organisation for Economic Co-operation and Development. 2008). Vision is to ensure all customers and the stakeholders have the best of services from the company. Their values include quality and style, give valuable goods among many others.

WHL and DJS mission, vision and the various values put in place have an aim of ensuring they give the best to their customers from all corners of the world. The acquisition put in place, however, will fit both of this companies because the financial support required to maintain the level of service provision is very hi. DJS has an issue of degrading a factor that may lower its ability to deliver to the customers as desired (In Boer , et al ,2015). Therefore, coming out of the WHL to buy out part of the company is very important and crucial to providing financial help in the process of development. DJS being one of the fasted growing and developing chain stores worldwide, it has a responsibility of ensuring that the services given to the customers via their products are of high quality and can maintain relevance in the market. As a result, the acquisition between the two companies is very important to ensure development in their various countries and also enhance growth and development of the member countries involved. Financial support is key and relevant to improving any company’s ability to grow, WHL and DJS will valuable ensure that the economic block that majorly exists between their member countries is relevantly elevated and improved to enhance success. As mentioned from the case studies, the decline of DJS was unpredicted as the company planned for development but later realized it didn’t happen. Coming in off WHL is very important for the company to ensure it gets back to its feet as soon as it can to continue with service provision to its members.

Competitive Strategies of WHL and DJS

Question 2 Answer

Competitive strategies are means by which the company puts in place to ensure its services to the customers and other stakeholders are the best, ensure high-quality services, cost effective and at the most favorable time and in the required amount or rather quantity (Barbour, 2016). The current competitive strategies by both WHL and DJS illustrates that the two companies have set goals important to help achieve their designated company goals by providing the best to their customers. These strategies include low-cost provider. This relates to the ability of the target customers and the aims of the company products enhanced to ensure that they achieve what they desire as a company. Low cost ensures that there is no utilization of the customers or rather the consumers of the products sold. Another strategy is broad differentiation of the goods or rather the products sold by the companies to their esteemed customers. This ensures that their customers have choices to where they can choose from and that can not only rely on one product but have other alternatives. This is important as it ensures that the customer has the ability to choose from many alternatives that can provide the same purpose while used and at a reasonable price. Market niche refers to the level reached that the market requires the company to reach, this includes the most appropriate top level of the market to providing goods and services to the people (Mabaya, 2011). WHL has reached the market niche in the fashion industry where it provides valuable and well-enhanced fashion product in the market while DJS has retail the niche in retailing of products required by customers in the various outlets in Australia. Another strategy is best cost provider for the goods and services provided to the customers. The ability of a company to grow and develop is measured by its ability to provide services and goods to their customers at a compatible cost. This ensures that both the customer and the seller benefit from the product or the service is given without utilization of either side. Both WHS and DJS are cost effective on the products and services offered to customers important in ensuring they give the best. Ability to provide products at a favorable and effective price signifies the ability to develop.

Question 3 Answer

The five forces analysis signifies competitive power in this situation between WHL and DJS. These forces will help to relevantly illustrate the competitive advantages of the developed acquisition between the two companies. These forces include;

Supplier power. This refers to the ability bestowed upon the supplying agent. In this case, WHL is the supplier that has the ability and power to decide on what about she is willing to buy the DJS products. WHL is unique as it has relevantly developed in the whole world by selling fashionable products to the esteemed customers at effective prices. Being the supplier, in this case, WHL is advantaged over DJS in that, it holds the ability to develop and also lay a hand of development to DJS as well importantly to help it shunned off the degrading factors. By doing this, the company will be able to grow even to better heights.

Porter’s Five Forces Analysis

Buyer power is another force that critically illustrates the ability of the buyer to dictate the price of the product she is willing to buy (Filippell, 2013). The buyer dictates the terms into which she is willing to accept the cost. WHL as the buyer has the ability to dictate the cost and terms that she is willing to relevantly willing to deal with throughout the process. the advantage to this is that DJS gives WHL what she wants in terms of cost as a way of ensuring she gets what she want to save the company.

Competitive rivalry is another business force. WHL is more developed and has the most openings in the world than DJS that is mainly established in Australia. The main advantage here is that the WHL has well known developed brands that do well in the market and ensure they make adequate profits. This is important to help combined advantage over the existing competitors, having power from DJS as well WHL will be able to command the market in the sense of ensuring the fashion lines and other designated outlets are able to command the market with a lot of ease. Buying part of DJS will ensure that the combined power will result in the development of the company in all corners and areas of the global market.

The threat of substitution as another business power is mainly affected by the ability of the customers to find means of substituting what they acquire from the outlet or rather the company. If DJS can get or identify other means that can assistant in saving the company and ensuring development can be a disadvantage to WHL. This is a threat as the need to buy part of it is to ensure the company is saved from the fever of failure that can also be as a result of lack of funds or support. The alternatives identified by DJS might prove to be better compared to the offers given by WHL making the company more sensitive to development threats.

The threat to entry is our fifth business force that identifies the need and effects of power on people entering the business. WHL buying DJS, it clearly illustrates that ability to develop of WHL is higher than that of DJS Company with lesser security than that of the main company (Corporate Development: Mergers & Acquisitions. 2017).

Therefore, the WHL acts as a threat to the other company as it has a higher scale economy balance and can quickly absorb the market with a lot of ease. This ensures that the available barriers of entry into the market illustrated by other companies are relevantly elevated to ensure the level and ability of WHL is higher than that of the DJS Company making it easier to grow in the market.

Question 4 Answer

Strengths

WHL has a crucial ability to embrace and enhancing sustainable development projects. Sustainability is very important for any growing company or organization with an aim to develop. WHL has the ability to establish and develop sustainable projects with the involvement of the stakeholders important for maintenance. This ensures that the outlet’s ability to develop is high as it has adequate support from stakeholders and other units.

Weaknesses

Fear of lackluster growth that may affect the company ability to develop and be effective in the global and domestic market.

Opportunities

Ability to expand globally beyond the company’s domestic market is an opportunity for WHL to increase and improve its marketing strategies important for the company’s growth and development.

Threat

Increased competition from other fashion outlets in the global market may outweigh the company’s ability to remain relevant in the fashion industry. This is a threat as it may prove the efforts put in place to improve and enhance marketing strategies all futile. This can be solved by ensuring that the products and services from the company to their customers are improved relevantly to ensure the success of the acquisition between the domestic company WHL and DJS.

The acquisition is successful and it will strengthen WHLs competitiveness. The success level of competitiveness realized by the Woolworth Company of South Africa will be achieved globally. This is because the ability of the WHL ability to develop has been realized in many developing parts of the world including the United Kingdom that are key areas of chain store development (Agarwal & Kwan, 2017). Having created a positive physical evidence to its customers in the global market, acquisition with the Woolworth Company in Australia will increase and make the level of competitiveness more valuable as it will have also enhanced its development chances. DJS in Australia has laid the basis of development important in ensuring the level of competition among the members of the chain stores remains relevant. This will positively impact on the acquisition of WHL and DLS in that the level of competition will be realized globally.

Question 5 Answer

Acquisition strategy in marketing is a process enhanced by an organization or a company to gain customers who are either new or existing through positive persuasion to buying the company’s products or services following the set procedures. It’s not easy on putting together measures on how to influence customer’s acquisition method as it’s a very critical structure to develop. As a developed fashion company with a mission, vision, and values important to ensure that the developments made have positive impacts on the customers, it has a role to endorse the development of both the domestic and the international markets. The South African retailer’s international marketing strategies are aimed at improving the level of service delivery to the customers as well as enhance development (Crotty& Bonorchis,2006). These strategies involve a research carried out globally by the company’s group of researchers to help identify the gaps in the fashion industry that requires being filled. The information should also help identify the next possible route for the company to follow in bridging the identified gap. Coming up with the solutions, the South African retailing outlet supports the use of acquisition marketing strategy.

Establishing and enhancing acquisition strategy by the company to help bridge the existing gap in the market is important as the strategy is more promising than others that may be put in place. The company follows a series of steps that enhance the success of the main objective. The acquisition may also be a reason of financial cooperation for reduced cost of the required capital, to enhance or improve economies of scale, to enable positive improvement in company’s performance and also to increase the level of market share and positioning enhancing a broader market access and also diversify chances of risk. The acquisition will help the company bridge in the gaps that are existing and have been identified and also enhance the development of the related markets that are emerging and are also important in strengthening the existing domestic and international market. WHL by applying acquisition as a marketing strategy has registered a positive development rate both in the domestic market and global market.

Question 6 Answer

WHL choose DJS over other existing companies in Australia and the world at large because of the following reasons;

Like WHL, DJS is also a chain store company that works under the structure of a chain store activities (Galpin, Herndon, 2007). This is very important for WHS as it wouldn’t require changing any setting of its structure if acquitted DJS as it also works under the same designated structure.

DJS had an issue of degrading that is mainly caused by the company’s poor management, lack of strategic planning as well as poor oversight of the company’s activities. This called for a need to re-correct the situation and WHL was available to offer help required thus coming up with acquisition idea.

WHL need to expand its market in Australia that is also important in enhancing international market development.

Yes, it’s a good timing for acquisition as DJS has been experiencing the degrading problem. This will importantly help the company to get back to its feet through the help offered by WHL Company. Since it’s a period also where DJS has announced the dealing of selling part of its shares to help solve the existing problem, it’s a good timing for WHL acquisition.

Question 7 Answer

If the acquisition is successful, their competitors both in the local and international market will criticize the results. Relating the success with other reasons other than the acquisition reason. Example, Myer will only say that DJS would have failed were it not for the support by WHL (Zhu & Zhu, 2016). Myer would also argue that if DJS choose them over WHL the level of success would be a bit higher than what has been discovered and also Kmart where they would try to start up acquisitions with other identified companies to try and illustrate on their theoretical arguments. Others like Inditex SA and others in the global market will establish strategies that would work on blocking the ability of the acquisition to grow into better heights in at the international level. Example, influence on the introduction of new international marketing policies and strategies that would definitely affect the acquisition.

References

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Mabaya, E. (2011). Case studies of emerging farmers and agribusinesses in South Africa. Stellenbosch: Sun Press.

Organisation for Economic Co-operation and Development. (2008). Business for development: Promoting commercial agriculture in Africa. Paris: Development Centre of the Organisation for Economic Co-operation and Development.

Pilcher, G. R. (2017). Mergers and acquisitions: a primer for those who implement M&A decisions but do not make them. JCT CoatingsTech, (3). 44.

Zhu, H., & Zhu, Q. (2016). Mergers and acquisitions by Chinese firms: A review and comparison with other mergers and acquisitions research in the leading journals. Asia Pacific Journal Of Management, (4), 1107. doi:10.1007/s10490-016-9465-0