Marke3004 | Marketing Planning | Assessment Answers

The company manages its own private brand that allows the continuous delivery of the quality products, value and exclusive products to their stores on daily basis. Though, the management of the differentiation product is not easy for the company as they have to predict the needs of the customers in which the company is lacking as this is its weakness. This huddles the company in meeting the needs of the customers in the market.

Adairs Mission Statement

The company was founded with the mission of helping people to bring the improvement in the quality of life by forming the customized homes according to their needs. Today, the mission is to motivate the team to offer the exceptional home building experience to their team (Adairs, 2017).

Adairs Corporate Objectives

The board committee works with the motive to maximize the performance, generating the appropriate level of shareholder value with the effective financial returns. The member of board ensures that interest of the shareholders is protected by the company (Adairs, 2015).

Controllable Elements

The controllable elements are those inside elements that influence the operations of company. Some of the elements are discussed below: -

Product differentiation

The financial year 2018 performance reflects the profitability and revenue growth that can be offered from the strong execution of the products with the effective differentiation strategy of the company. The strategy related to the product that leads to the success of the brand is Product differentiation. Adairs offer a wide range of trendy products that offer value to money to customers and are designed by an exclusive to Adairs. Moreover, the company is able to survive in the market because of its category range expansion of products which are similar to the competitors. The product range of the company is strength for the brand which helps them to deal with competitors. The weakness of the company is that they are not able to focus on the estimation of the demand for the products and services that are offered by them due to which they lack with the opportunities. This loss of opportunity is the benefit for the competitors of Adairs.

Financial performance

The financial performance of the company is one of the reasons due to which the company is able to complete their business operations effectively (Hill, Jones & Schilling, 2015). The below image reflects the performance of the company for the year 2015 to 2018. In the year 2018, the sale of the company was higher than in the remaining years. 

(Source: Adairs, 2018)

The high sales amount leads to high profit which provides a support to the company to expand their business operations in the other markets. Moreover, the company is capable enough to meet the interest of their stakeholders which is clear from the EPS of the company in 2018 which was 18 cent. Earlier the EPS which was offered by the company was 13 cents in 2017, 16 cents in 2016 and 15 cents in the year 2015 (Adairs, 2018). The data which is given above that Adairs is able to manage their financial stability.

Physical facilities

The physical facilities of the company are clear from the stores. In the present scenario, the company has 160 stores in Australia in the formats of Adairs, Adairs Kids, Adairs Homemaker, UHR and Adairs Outlets. Though, the weakness of the company is that there is need to bring the improvement in the ambience of the physical stores which is must to be considered by the company. This affects the customer satisfaction because they didn’t get the products in the easy way as they have to search more.

The company make use of the omnichannel strategy and this is known as best in class Omni (Adairs, 2018). The company is expanding business through online mode and this is found that 13% of the total company sales are generated from online mode. This approach leads to success to find high engagement and value of customers.

Firm’s technologies

The technologies are must for the company as this is the way through which they can offer the customized products in the market which is strength. Though, the changes in the technology can affect the operations of the company which means that the company need to spend more amounts in expanding the technologies. The technologies will help in integrating the processes across the board which is lacking in the working of company and emerges as one of the weakness.

People organization structure & culture and processes

The team members of adairs are able to maintain the consistency of service, product and in-store experience. According to the survey, the people of the company are the one with the helpful nature with fill specialist product knowledge (Adairs, 2018). This reflects the culture of the company is very helpful and team member is enjoying the culture. The company is willing to improve the customer experience which is possible through different strategies which include: -

• Focusing on service
• Effective shopping experience
• Continuous retail execution
• Forming team product knowledge

This is found that the process of the company is one of the reasons behind the success as in process the company ensure that they can offer the strategic initiative that contributes in managing the business and associated risk.

Talking about the weakness of the company is high attrition rate in work force is present. This is because of the low salary packages, improper training of the employees and many others. This affects the working of company because they have to spend more of their time in hiring new and talented employees. Moreover, this also enhances the cost of Adairs.

References

Adairs. (2015). Corporate Governance Statement. Retrieved from: https://investors.adairs.com.au/DownloadFile.axd?file=/Report/ComNews/20150918/01663263.pdf

Adairs. (2017). Annual Report 2017. Retrieved from: https://investors.adairs.com.au/FormBuilder/_Resource/_module/51fbMLwe2UG-5KJ3qHCF4w/file/Adairs-2017-Annual-Report.pdf

Adairs. (2018). Annual Report 2018. Retrieved from: https://investors.adairs.com.au/FormBuilder/_Resource/_module/51fbMLwe2UG-5KJ3qHCF4w/file/Adairs-2018-Annual-Report.pdf

Adairs. (2018). Company Overview. Retrieved from: https://investors.adairs.com.au/investors/?page=company-overview

Adairs. (2018). Home. Retrieved from: https://www.adairs.com.au/

Hill, C. W., Jones, G. R., & Schilling, M. A. (2015). Strategic management theory. Boston: Cengage Learning.

Rothaermel, F. T. (2015). Strategic management. NewYork: McGraw-Hill Education.