Gsbs6060 Strategic Management | Business Assessment Answers

Task 

Answer:

Introduction

Business level strategy can help an organization in satisfying the needs of the customer so that they can achieve returns that s above average. Business level strategy helps in detailing actions that can be of value for the customers which can help them in gaining competitive advantage by the exploitation of the core competencies. Woolworths Supermarket is a grocery store chain of Australia that is owned by the Woolworths Limited (Woolworthsgroup.com.au. 2018).This report highlights the main business level strategy of Woolworths and it makes use of value chain analysis for justification of the choice.

Key Business level strategy of Woolworths

The main business level strategy of Woolworth’s would be Cost Leadership. Woolworths would produce products that have different kinds of attributes that can help them in ensuring competitive advantage. Cost leadership will be able to help the organization in competing for a wide customer base on the basis of price. The pricing of Woolworth’s will be based on internal efficiency and it can help them in having a margin that can help them to make profit. Woolworths have made use of the “sale up and low cost” policy that has helped them in reducing costs pertaining to production (D. Banker, Mashruwala & Tripathy, 2014).  Woolworths have made use of this policy that has helped them in significantly lowering the price of the various items that are offered at the supermarket chain. Woolworths have been able to cut down the operating cost by making use of the strategy called “just-in-time”. This strategy is made use of by the company that can help them in managing products in relation to supply chain. This strategy can help in decreasing the cost of wastage and send the products to the retailers at a time when they would be required. Woolworths makes use of the stock replenishment program that can help them in forecasting amount of the products that would be ordered.

Woolworth’s makes use of the “Trandestone’s Merchandise Lifecycle Management” pertaining to the procurement process (Kurt & Zehir, 2016). This helps Woolworth’s in offering a platform that can help them in managing suppliers along with orders. This procurement and logistics strategy helps them in making connection with more than 6000 suppliers. The value chain analysis reveals that Woolworths follows nationalisation pertaining to buying activities that can help them in achieving cost savings. This enables the consumers of Woolworth’s in getting best quality of products at a price that is reasonable. The value of Woolworths is created owing to the fact that they have integrated the system of delivery network by making use of effective transport system (Barney, 2014). The products of Woolworth have on-shelf availability that helps in providing desired service to that of the customers in the right time. Woolworths have adopted a holistic approach that helps them in steering the factor of on-shelf availability.

Conclusion

Cost leadership will be able to help Woolworths in gaining a large consumer base based on pricing. Internal efficiency will help in maintaining the price of Woolworths and it will help them in earning huge amount of profit. The sale up along with low cost of Woolworths will help them in reduction of the production cost. The process of Merchandise Lifecycle Management of procurement can help the company in the managing of suppliers.

References:

Woolworthsgroup.com.au. (2018). Woolworths Group: Quality Brands and Trusted Retailing. Retrieved from https://www.woolworthsgroup.com.au/

Kurt, A., & Zehir, C. (2016). The relationship between cost leadership strategy, total quality management applications and financial performance.

Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson Higher Ed.