Internal Analysis
Strengths - Wesfarmers are engaged in diverse business across the retail sector like supermarkets, departmental stores, home improvement and office supplies with the strategy to invest in diverse fields and sectors to maintain persistent growth and to lessen the risks associated with one particular sector. The pie chart below shows the breakup of contribution of total earnings of Wesfarmers in the financial year ended on 30th June 2014, thus giving a clear picture how the diversifying business helps in sustainability.
Sr No. Sector Revenue in Financial year'14 in millions % increase or decrease from last year’s revenue % contribution in total revenue
1 Coles 37,391 4.5% increase 60.0
2 Bunnings 8,546 11.6% increase 13.7
3 Office
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Wesfarmers took the advantage of the opportunity by acquiring the retail giant Coles in 2007. Further, they increased the brand value of Coles by focusing on innovation and freshness, simplifying the supply chain and its operations thus increasing in their revenue growth. Also they under took venturing into new channels like a joint venture with GE Australia, expanding the current network by opening five new Kmart stores across Australia and three new Kmart tyre and auto services to increase the sales. They also launched eight foodservices superstore in …show more content…
The innovative promotions such as ‘spend get cash’, ‘spend get points’ helped increase the sales. They are further investing in fresh food and innovation, and generating more innovative ideas like to get Murray Goulburn to supply milk to 400 Coles outlet, et al.
• Safety of the employees – Wesfarmers are working to provide a safe and healthy working atmosphere to their employees to increase employee satisfaction and reduce attrition rate.
• Ethical behavior – Wesfarmers takes ethical behavior as a key differentiator and tries to follow all the Ethical behaviors by complying with legal obligations and by putting the policies in place.
• Accountability – by looking and rehabilitating after the communities they operate in, and contributing in overall development of people
• Conserving our environment – The management at Wesfarmers is working towards protecting our surrounding by reducing their energy, greenhouse emissions, reducing waste and
Task 4Ensuring health and safety is an important responsibility not only for the Managers but all associated with the premises. Evaluate your organisation’s health and safety policy and procedures in line with legislative requirements and propose recommendations on how health and safety should be managed
Morrison’s is a food retailer which was established in 1899. Morrison’s started off as a stall at a local market in Bradford run by William Morrison and has since grown to be the UK’s fourth largest food retailer. Morrison’s aims to, “attract, motivate and develop people to ensure that Morrison’s becomes the ‘food specialist for everyone’”. In addition to Morrison’s being a supermarket it also offers a range of other services; cafés, recycling, dry cleaning, photo printer, petrol station and pharmacy. Morrison’s is highly customer orientated as they try to provide the best service to their customers by providing them with high quality and reasonably priced items.
Coles thrive to make itself a better shopping and working place, therefore they lay stress on achieving the goal i.e.
Bunnings is the market leader in this industry who gains 64% of total market share, followed by Mitre 10 with 13.0%, and Masters with 8.0% of market share (The Australian, 2016). The company’s revenue continuous increased since they started the business in 2011 to 2014, they gained total revenue around $1527 million in 2014 (Woolworths, 2015) but the company still got the loss from their operation expenses. Moreover, the sales dropped by 16% in 2015 that was the main reason for Lowe’s to delist the joint venture in the beginning of 2016 as it claimed that Masters has poor profit performance (IBIS, 2016). In the meantime, Woolworths publicised its intention either to selling the business or shutting it down (ABC, 2016, para. 15). Thus, there are several causes of these problems that Masters should solve in order to survive in this business and compete with its competitors.
According to Pettinger(2004) The Company extends its pillar of service not only by aiding clients in making decision to shop in stores, but also making it easy for them to drop by the stores and shop. There are two potential competitors existing in the market .There is Woolworths which has an 8% stake of the vast Australian market share and uses its subsidiaries such as Home Hardware and Timer, Thrifty Link, and Masters Home Improvement. There is also Metcash which has a 7.3% market share and uses its two subsidiaries: True Value Hardware and MITRE 10. Bunnings is currently the market leader in Australia (see Appendix figure1.1).Australia’s largest and most profitable home improvement retailer with (9,012,000) customers who shop at Bunnings over period of four week July 2014. This numbers was up in July 2012/13 which was 8,435,000. Bunnings potential competitors are Mitre 10 (1,789,000) and Masters (1,217,000).
In the internal analysis, we identify the leader strategy adopted by Bunnings through 5Qs methods, outline major interests and expectation for several key stakeholders, describe the low cost as its strategic capability by passing three tests, evaluate its’ performance on four perspectives by the Kaplan and Norton’s balanced scorecard approach, and distinguish the fierce competition from Mitre, Danks and Woolworths.
Coles Myer Limited (CML) and Woolworths Limited (WOW) are two major Australian companies with extensive retail interest and listed on the Australian Stock Exchange. They are Australian public companies which operate a number of retail chains.
Cole is an Australian supermarket with large influence and market share in the country. In addition, the company contributes significantly to the nation’s economy. In essence, the company has acquired more than 30% of the market share of the supermarket industry in this nation. Specifically, the company’sproduct line consists of daily products, grocery, meat, deli, fresh produce, bake house, cigarettes, liquor, apparel, general merchandize and over head products. Notably Cole has a culture of low price as its marketing strategy of attracting and retaining customers.
J Sainsbury plc (Sainsbury) is a retail chain based in the UK. Sainsbury is engaged in grocery retailing through its supermarkets and convenience stores principally in the UK. The company operates its business through three divisions, namely, Retailing, Financial Services and Property Investment. Sainsbury serves its customers through a chain of 537 supermarkets and 335 convenience stores under the brand Sainsburys, and financial services via Sainsburys Bank. Sainsbury offers around 30,000 food and non-food products and services. The company is headquartered in London, the UK J Sainsbury plc Key Recent Developments Mar 11, 2010: Sainsbury launches first bakery college in the UK Mar 08, 2010: Sainsbury to add
Tesco can be said to be a global leader in the UK retail business. It is one of the leading world retailers. The company started using the trading name TESCO in the 1920s and since the group has expanded in many ways venturing in different markets and with interest in different sectors. Over the years, Tesco has recorded growth which has been achieved through different strategies. There has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed the company to position itself in food and non-food sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales. Sales have risen from 31,726,280 from 2013 to 32,074,650 in 2014 (Kantar, 2014.) This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential using their famous ‘every little helps’ branding along the way. The ‘Every little helps’ branding helped Tesco’s attract 1.3 million new customers in the period from 1990-1995, and the campaign achieved good effects on staff morale, attracting quality marketers to join Tesco, directly affected the share price and allowed the brand to move into non-grocery sectors where brand credibility is a key requirement. Disadvantages….limitations etc
Employers must provide a safe working environment and equipment / uniform / signs to ensure the employees are as safe as they can be. Customers are also provided with a safe store to shop in and measures are put in place to ensure everyone’s safety in kept in tact
Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).
Have you ever think about people for unsafe work? Each in everyday, hours and minutes, as we step forward into a factory, mills or machineries, significant people are put into danger. Although health and safety in a workplace is necessary for the employers and employees, there are still a lot of injuries and deaths in a workplace. Most people we’re being forced to work even if the job is not safe for them to do so. There are people getting injured and killed every day that’s why we need to put a stop to it now and make the job in a workplace comfortable to everybody.
In order to be sustainable over the long term, Woolworths has made sure that their success doesn’t come at the expense of the society, economy and environment as they are a part of it (ICAA, 2011). They believe it not only involves responsibility to understand and manage their impacts, but also gives them an opportunity to achieve lasting and beneficial change that extends beyond their operations (ICAA, 2011).
The managers and higher authority must ensure that the health and safety of all employees are maintained and constantly