Michael Hill

1377 Words Nov 27th, 2012 6 Pages
Assessment 1B
MGMT.7930
Tutor: Neihana Jacob

Due Date: 4/4/12
Word Count: 1234

In 1979, Michael Hill started Michael Hill Jewellers (MHJ) after 20 years of working in his uncle’s jewellery store. Doing away with the usual giftware items and the more formal atmosphere, his strategy was to make shopping for jewellery more accessible to the public. One strength of the company is the strict use of the Friedman Group’s sales techniques. This allows the staff to maximise conversion rates and increase sales. One threat to MHJ is that another company can easily enter the market that may be able to overtake Michael Hill as one of the leading jewellers in New Zealand. Through an internal environmental analysis, the strengths and weaknesses of the
…show more content…
For a competitor to adopt this would require the same investment in capital and is therefore quite costly.
Organisation- Is the firm organised to exploit these competencies? Carrying on with the Friedman competency, Michael Hill has set up its entire staff training and day to day sales operations to revolve around the Friedman sales process. If there is any question, they actually ask themselves if they are deviating from the Friedman “bible.” (Clark, 1998, p. 41) Their entire human resources, sales, marketing and information systems revolve around exploiting that competency.
People can themselves use the ideals of the VRIO framework in their day to day lives. The framework can be used on many various people and organisations with which one would have relationships. The basic question is, “how will they help me succeed?” Generally, as most businesses stated to J. Barney, to succeed one must “work hard, take risks, and surround oneself with the best people.” (Barney, 1997)
Value Chain Analysis
Procurement
Procurement
Information Systems
Information Systems
Human Resource Management
Human Resource Management
Sales
Sales
Marketing
Marketing

Manufacturing
Manufacturing
Margin
Margin
Primary Activities Primary Activities
Support Activities
Support Activities

The margin element of the value chain is the profit achieved by successfully

More about Michael Hill