Developmental Tools For Business Strategy: An Analysis Of Woolworths Australia

The PESTEL Analysis

The various tools that are implemented by the companies in order to deal with the matters that pertain to the development of the strategies that are useful in the analysis of the internal as well as the external factors that might affect an organisation. These analyses might help the concerned organisation to deal with the incorporation of the matters that might help to deal with the approaches that might help in overcoming these factors (Burns and Dewhurst 2016). There exists a number of frameworks and theories that might be helpful in the matters that pertain to the incorporation of these various strategic plans in order to aid the overall growth of the concerned business organisation. The following essay tends to discuss four of the tools that might help in the development of thee strategies and the implementations of the same in order to ensure an overall improvement within the given concerns.

The PESTEL analysis is one of the developmental tools that is used in the analysis of the macro-environmental elements that are known to affect the multitude of the business organisations within certain territorial boundaries. The PESTEL analysis undertakes the activity of analysing Political, Economic, Social, Technological, Environmental and Legal factors that tend to affect the multitude of the business organisations that have been operating at the various locations within specific territorial boundaries (Kahn 2018). The political factors consider the various governmental interventions within the economy as well as the stability of the political factors within the concerned area, in case of Woolworths, Australia. The economic factors that might affect the organisations are the factors related to the economic growth of the business firm, the inflation and exchange rates, the interests and the revenues that are earned by Woolworths, Australia. The social factors refer to the shared interests and the attitudes that are displayed by Woolworths, Australia. Technological factors might include the communication channels and the supply and the distributional channels of Woolworths, Australia. The environmental factors might include the matters that pertain to the ethical and the sustainable measures adopted by the Woolworths, Australia. The legal factors that affect Woolworths, Australia refer to the several laws and rights that might be maintained within the organisation.

The PESTEL analysis of Woolworths Australia is as follows.

Political	Ø Political disturbances within the country Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper Ø Political stability within the country
Economic	Ø Recession Ø High unemployment Ø Global financial crisis
Social	Ø Customer needs Ø Store location Ø Changes in the local context
Technological	Ø The usage of the RFID Ø Implementation of the integrated service-oriented-architecture (Moutinho and Phillips 2018)
Environmental	Ø Usage of the business practices that are environment friendly Ø Minimization of the carbon footprint Ø Implementing sustainability practices
Legal	Ø Taxation policies Ø Food licensing

Table 1: PESTEL Analysis of Woolworths, Australia

Source: (Author)

The Porter’s Five Forces analysis is one of the major tools that are used to deal with the external environmental factors that might affect Woolworths, Australia. The tool is used to analyse five major aspects that might affect the performance of Woolworths, Australia. These aspects relate to the bargaining powers of the buyers and the suppliers, the threats that are originated from the substituting organisations as well as the new entrants and the rivalry that exists among the competitors within the industry wherein Woolworths, Australia have been functioning (Dobbs 2014). The Porter’s Five Forces analysis might help Woolworths, Australia to develop a higher competitive advantage within the concerned market (Mathooko and 2015). The Porter’s Five Forces analysis of Woolworths, Australia is presented as below.

Industry Rivalry	The intensity of the high rivalry within the territorial boundaries of Australia might lead to the decrease in the prices thereby decreasing overall productivity.
Bargaining Power of Suppliers	Dominance of the suppliers results in decreasing the margins that are earned by Woolworths, Australia
Bargaining Power of Buyers	Smaller and powerful client base might result in the higher bargaining power of the buyers of Woolworths, Australia.
Threats of New Entrants	The threats of the new entrants in case of Woolworths, Australia is low due to the high popularity of the company in Australian market.
Threats of the Substitutes	The threats of the new entrants in case of Woolworths, Australia is high due to the high number of retailers in Australian market.

The Porter’s Five Forces Analysis

Table 2: Porter’s Five Forces analysis of Woolworths, Australia.

Source: (Author)

The SWOT analysis refers to the one of the tools that is used to put forth an analysis of the internal environments of a business organisation (Nikjoo and Saeedpoor 2014). The SWOT analysis might help in the analysis of the various area where the company in discussion, Woolworths, Australia to gauge as well as forecast the actions of the concerned company that might help in the matters that pertain to the overall improvement of the given company in discussion, Woolworths, Australia (David, David and David 2017; Mirzakhani, Parsaamal and Golzar 2014). The SWOT analysis of Woolworths, Australia is as follows.

Strengths Ø Well-known and oldest retail brand in Australia Ø Greater market share and larger number of supermarkets that are owned by the company Ø Strongly committed towards the sustainability and the environment.	Weaknesses Ø Lower presence in the international market Ø Loss of the competitive advantage in the competition among the other retail chains Ø A delayed entry in to the online retail market
Opportunities Ø The scope of better growth in the retail sector Ø Betterment of the promotions in order win back the clientele Ø A great presence in retail markets of emerging economies Ø Usage of social media for client engagement.	Threats Ø Aggressive expanding nature of Aldi Ø Competition with Coles Ø The slow growth in Australian retail industry.

Table 3: SWOT Analysis of Woolworths, Australia

Source: (Author)

The Ansoff Matrix is a tool that is used in the matters that pertain to the recommendation in the matters that pertain to the future course of actions. These actions might be undertaken by the concerned management of the company in discussion in order to bring about a proper improvement in the matters that are related to the overall performance of the company in the given market (Grünig and Morschett 2017). This strategy might prove to be helpful in the matters that pertain to the future course of action that might be undertaken by the concerned company, Woolworths, Australia, in this case. The Ansoff Matrix focusses on four different alternatives for the growth of the concerned company. These might refer to the market penetration, the market development, the product development and the diversification of the company (Chiang, Chen and Ho 2016). The Ansoff Matrix of Woolworths, Australia is as discussed below.

Market	Existing	New
Product
Existing	Market penetration Ø Promotion of new products Ø Reposition of the various brands Ø Increasing the market share	Market development Ø Newly added distribution channels Ø Implementation of numerous pricing policies to take care of the newer market segments
New	Product development Ø Development of the various new and the innovative techniques that might replace the earlier strategies.	Diversification Ø Horizontal for production programs Ø Vertical for the storage program for the sales stage.

Table 4: Ansoff Matrix for Woolworths, Australia

Source: (Author)

Conclusion

Thus, from the above discussion it might be pointed out that these developmental tools aid the formulation as well as implementations of several strategies that might be held responsible for the positive growth of the Woolworths in Australia. It might also be pointed out that the discussed tools might assist the development of the strategies that are required for ensuring the positive growth of the concerned company in discussion, Woolworths, Australia.

References

Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.

Chiang, Y.M., Chen, W.L. and Ho, C.H., 2016. Application of analytic network process and two-dimensional matrix evaluating decision for design strategy. Computers & Industrial Engineering, 98, pp.237-245.

David, M.E., David, F.R. and David, F.R., 2017. The quantitative strategic planning matrix: a new marketing tool. Journal of Strategic Marketing, 25(4), pp.342-352.

Dobbs, M. E., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

Grünig, R. and Morschett, D., 2017. General Strategic Planning as the Starting Point for Going International for New Markets. In Developing International Strategies (pp. 57-65). Springer, Berlin, Heidelberg.

Kahn, M., 2018. Prospects for Cooperation in Science, Technology and Innovation among the BRICS Members. BRICS and Global Governance, p.168.

Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya. International Journal of Educational Management, 29(3), pp.334-354.

Mirzakhani, M., Parsaamal, E. and Golzar, A., 2014. Strategy Formulation with SWOT Matrix: A Case Study of an Iranian Company. Global Business & Management Research, 6(2).

Moutinho, L. and Phillips, P., 2018. Strategic analysis. In Contemporary Issues in Strategic Management (pp. 46-79). Routledge.

Nikjoo, A.V. and Saeedpoor, M., 2014. An intuitionistic fuzzy DEMATEL methodology for prioritising the components of SWOT matrix in the Iranian insurance industry. International Journal of Operational Research, 20(4), pp.439-452.