Assignment 1 (Strategic Analysis) Individual Assignment WEIGHT 20% HI5019 STRATEGIC INFORMATION SYSTEMS T2 2018 WEEK 6 Friday 5 pm Each student will write a strategic analysis report of NOT more than...

Woolworths
Strategic Analysis
    
Strategic Analysis
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Contents
PART 1: External Analysis    3
Business background    3
Industry    3
General environment analysis    3
Industry environment    5
Competitive environment    7
Capabilities do the relevant firms have    7
Strategies they follow    8
Threats they represent    8
Opportunities and Threats    8
Opportunities    8
Threats    9
PART 2: Internal analysis and proposal    10
Firm’s resources, tangible and intangible    10
Capabilities identification    10
Core competency analysis    10
Woolworths provide significant value    11
Allow to increase or dominate market share    11
Difficult for competitors to imitate    11
Provide competitive advantage    12
Suitable information system solution    12
Management information systems:    12
P0roposed system evaluation    12
Recommendation    13
References    15
PART 1: External Analysis
Business background
Woolworths has biggest supermarket chain in the Australia, owned by the Woolworths Limited. Woolworths Limited was originated in 1924 and firstly opened in the Royal Mall of Sydney. Its opening ad claims that each city needs Woolworths, so everybody needs aninexpensive place and good things are cheap. The Woolworths was started by the Stanley Edward Chatterton, Ernest Robert Williams, Harold Percival Christmas, Cecil Scott Waine and George William Percival Creed. Percy Christmas and Stanley Chatterton began the first floor of the Queen Victoria Market, Frock Salon, currently located at the corner of Victoria and Market Street in Sydney.
Industry
The development of supermarkets has had huge influence on the Australia's retail business. With strength of supermarket retail business, Woolworths was planning to developed as the largest retailer. Woolworths is currently close to the 10% of the Australia's whole retail sales. As the Australia's retail business develops, it remains strategic and flexible in response to macro and micro fiscal challenges, customer trends, technological development,novel retail formats, increasing retail rents, increased competition and globalization (Arli et al., 2013).
General environment analysis
Political Factors
Political factors directly influence the success of every business. For instance, novel rules and regulations, taxes plus other legislation, etc. Few political factors of Woolworths are like this,the new white paper has declared that it will enable retailers to provide legal guidance through their individual law firms. The Aldi supermarket chain is one of the Woolworth's maincompetitor, and its policy is to provide its customers with one-stop shop opportunities by introducing facilities such as pharmacies, banking facilities and insurance.
Economic Factors
Due to the economic downturn, Woolworths has shut all its processes in the UK, in addition, it is clear that the victory of every business depends upon the present economic situation. The Woolworths was adversely influenced by the present credit crunch and was unable to endure to operate, thus losing its status and shutting down all business in the UK (Atighechian et al., 2016).
Social Factors
This is very significant factor in business success. People's demands and trends change over time, and they are much attractive to new designs and fashions. They also desire quality rather than price because low prices are considered or low-quality values. Woolworths has been providing its customers the most attractive and fashionable products for many years.
Technological Factors    
Nowadays we live in modern world, where there is a thriving technological advancement. Every day, persons introduce new thoughts and innovations into existing products and develop new products with the latest ideas. Woolworths has long used old ideas, and a few years ago it realized the significance of technology as well as brought them into business to contend with the all competitors.
Demographic Factors
Population-related demographic factors, for example,density, population size, location, gender, age, ethnicity, etc., play animportant role in the marketing decisions. Woolworths' creativities at all the levels are aimed at individuals. They are trying to modernize in the fresh farming of local agricultural productsto be able to take advantage of the demographic changes that prevail throughout the world (Beke, 2017).
Global factors
The increasing cost of living influences individuals and businesses in a same way. These increased prices have also appeared in nationseverywhere in world, mostly because of the sharp rise in world prices for major commodities such as food, oil and metals. These factors affect prices in different ways. Most major retailers enter into long-term contracts with suppliers, so any cost changes in the middle of the contract must be negotiated. If we are required to pay a higher price, the supplier must prove its reasonableness. In the past few months, more and more suppliers have provided evidence of evidence of increased costs – many of which are substantial.
Physical factors
Factors important to health in physical environment consist of hazardous substances,for example, air pollution or proximity to the toxic sites (the emphasis of classical ecological epidemiology); access to a variety of health-related sources (e.g., unhealthy or healthy food, healthcare, recreational resources); community design as well as “building environment” (e.g. land use combination, transportation system, street connection) (Berkowitz, 2016).
Industry environment
Competitors:
A competitive environment includes few basic things which every organization ought to pay attention to. Any company, regardless of size, has the monopoly. In actual business world, businesses face severaltypes of the competition. The maximum common competitionwhich products of the company facing comes from the differentiated products from the other companies.
Buyer Power:
Commercial companies aim to make a profit by meeting customer needs. It now considers more profitable sales than more volume of sales. Today, the organization’s marketing startsas well as ends with the customer.Nowadays successful commercial companies must identify customers for its products. This is the reason why buyers are most important factor in the micro-business environment. Product sales mostly depend upon consumer satisfaction (Gheibi et al., 2018).
Suppliers:
With regard to suppliers, companies can deem the use of labour or materials...