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HI5019 Strategic Information Systems

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HI5019 Strategic Information Systems

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Course Code: HI5019
University: Holmes Institute

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Country: Australia


The report should demonstrate that the student has thoroughly researched their topic. Students should use examples of business practice from the scholarly journals papers, conferences, books and professional magazines to support their arguments. The strategic analysis will be on a local company. The report consists of two parts and should cover the following requirements:
Part 1
1. Business background2. What industry is it? 3. General environment analysis (economic, physical, sociocultural, global, technological, political/legal and demographic – and work out what the important facts are).4. The industry environment ((i.e., supplier power, buyer power, potential entrants, substitute products and rivalry among competitors) and explain briefly what is significant for each).5. Competitive environment (Is there a strategic group that you need to take account of? What is the rivalry like in this group? What capabilities do the relevant firms have? What strategies do they follow? What threats do they represent?)6. Opportunities and threats
Part 2
1. The firm’s resources, tangible and intangible2. Capabilities identification (explain the capabilities carefully to indicate what the firm really does.)3. Core competency analysis (For each capability, indicate which of the four tests for a core competency it meets). 4. Propose a suitable information system solution that meets the chosen company needs.5. Evaluate the proposed system and provide your recommendations


In this jeopardized business environment, the organizations are constantly struggling to stable their market environment through incorporation of different strategic line on both productivity and profit section.  The current project will emphasize the facts on the Woolworths, which is an Australia based grocery chain and located in Sydney. The project will evaluate the position of the organization in the current retail industry of Australia. The report will further evaluate the internal operation of the organization, which is the basic outline of the organizational success. Internal operation supports the organization to sustain long term success. In this case, some factor will recommend based on the status of rivalry as well as operational gap, which are evident from the impact of both macro as well as micro environmental component. The organization is conned with the distribution network, inbound logistics and the product control. It will support the organization to manufacture quality product, which can enhance the distribution efficiency as well as inventory management. This competitive attribute is valuable for the capabilities as well as resources, which can be integrated in the supply chain of the company
Part 1
Business Background
Woolworths has considered basement outlets for bargaining and operating their business in Sydney since 1924. The organisation had market share of 31% in the Australian Super market chain. They have gained strong market success through the support perfect acquisition as well as expansion. They are operating their business with the major companies with the brand name Woolworth’s supermarket, Dick Smith Powerhouse and others. The retailers focused on the several other options that include sales revenue. As per the current report, they have 21 stores and generating sales volume of $104million in 2007 and 2008 (Woolworthsgroup.com.au, 2018).
What industry it is?
The function of supermarket industry is to cater and fulfil the daily need of the consumer by means of consumer driven business attributes. They are working with the intermediary position, which is effective to foster standard sales growth. As commented by Altuna et al., (2015) intermediary production includes the revenue growth, which has been earned over last 4 years. As per the estimated result, the revenue is 4.1%. Woolworths is able to hols standard patter4n of growth in GDP percentages, which has been also increased to 4.4% and the limit was $78502 million. The organisation has focused on the Franklins and Food Works. As per the current report, Woolworths is the market leader in the retail industry and their major competitor is Coles, who hold market share of 23%.
General environment Analysis:
Political and Legal: In this case, political and the legal factors are focused on the legal laws, which are significant in the overall business operation. The organisations focused on the policies for undertaking required initiatives on empowerment, employment and other responsibilities. These criteria are structured to set up the governmental policies. In this case, crusades are developed for blocking the organisation along with Woolworths.
Economic: The financial factors are discussed in the economic factor. It is dependent upon the levels of spending in regards to discretionary goods. The consumers trends rae gradually changing for depicting high value to consumer. The consumers have high pro9ine to save cist, which is dependent upon the status of disposable income. In this case, super markets, private label organisations are structuring and contributing maximum to the overall growth if they can capable to get major consumer attention.
Socio-cultural Factors: The organisation is prioritised health and well being of the customers. The organisations have to stock the organic foods materials, which is in high demand among the consumers. In the current period, this is the most potential threats for the farmers as supermarkets are doing best to survive in the business environment.
Demographic: The demographics of the Australia are focused on the factors of financial normality, which includes religion, gender as well as population size. Based on the Australian assets, the demands and the needs of the consumers are gradually changing (Dixon, 2017). In this case, changing technology has also created impact on the consumer need as well as demand.
Physical: In the current period, Woolworths is working on the challenging market environment, where entire growth or expansion plan is focused on the task of production and manufacturing. Through including these factors the organisation can prioritise the social responsibilities as well.
Global: In this dimension, comprehensive need of the organisation has been considered. These factors are required to survive in the market through aligning with different consumer need. It is processed through de-regulation in trading hour (Baldwin and Lopez?Gonzalez, 2015). It is also visualised that the organisation offer various kind of product to maintain exponential growth within global dimension.
In the business process, technological factors are significant at all level to achieve standard business growth. These factors can help the organisation to sharp the competitive edge. In the dynamic business environment, innovative trends should be harnessed by the organisation to survive for long term period (Chattell, 2016). In the operational process, such as inventory and supply chain, various technological innovations have been introduced. In case of Woolworths, managers have applied green-refrigeration techniques. Therefore, the organisation has proper support of technological advancement.
Industry Environment
Rivalry among the existing competitors: In the Australian market, small organisations are tne potential rival for the organisation. On the other hand, the organisation offers different needs based on the nature of product and the services. The organisation has prioritised three things to maintain competitive stability in the market (Gabriel and Drayton, 2016). These three key points are location or store place, product price and the consumer choice. For instance, it can be said that rivalry is high due to presence of Coles and Costco in the current market.
Threat of Substitute: In the Australian market, threat of substitute is high as the organisation is facing several challenges from convenient and special grocery stores. Due to availability of too many competitors in the market, the products innovation is also increasing. The organisation has many products to curb competition in the market.
Bargaining Power of Buyers: It is evident that the aggressive sales need to be developed through Federal government and ACCC, which is required to be done by referring buying pattern of the company. In the Australian market, the bargaining power of the buyer is lower due to availability of huge consumer base. Consumers have wide number of choices and they can compare the product price through e-commerce website.
Bargaining Power of Suppliers: The bargaining power of the suppliers is also low, as the organisation is dependent upon the multiple local suppliers. In addition, Coles and Woolworths control 81% market share in the grocery retail industry (Stevens and Johnson, 2016). Through the intermediary’s selection, products can be delivered in proper time.
Threat of New Entrants
The intensity of the threat is low and it will be sustained in future period. The organisation has huge opportunity to incorporate more operational as well as technological involvement.
Competitive Environment: 
In the current period, number of poor consumers is increasing and direct sale is getting importance. In the current period, Coles is the US based retailer, who can create difficulties for the organisation to retain the consumers. The organisation is using the social networking sites for handling the promotional task. The organisation promoted themselves through advertuse and sponsorship. Probable threats are evident here due to availability of augmented outcome from food and non food products. The organisation is also opening new stores and handling the online stores as well. International companies are also taking Woolworths as major rivals in the grocery retail market.
Opportunities and Threats
The opportunities and threats available for the company Woolworths display their ability to overcome the threats by using the opportunities to strengthen the functioning of the organization. Some of the biggest opportunities available for the functioning of the organization comprises of the use of innovative technologies. The utilization of the innovative technologies would allow the company to control the free trade agreements and that would allow them to enhance the functioning of the management (Saebi, Lien & Foss., 2017). The increasing trends of using online portals for the benefits of the organization have ended up attracting a substantial consumer in the current scenario.
The biggest threats that are being incurred by the company are irregular supply of the products and a substantial amount of increase in the price of the raw materials. As there has been, a rising importance of magnification force in the market so there is a possibility that the company would be accustomed to limited sharing and at the same time, there is a threat of ensuring timely delivery to the customers (Rodríguez, Paredes & Yi., 2016). Another biggest threat incurred by the company comprises of reinforcement of less skilled workers that could affect the effective functioning of the organization. Meanwhile, it is also important that the company is able to provide good quality products to the people in order to maintain their reputation in the market.
Internal analysis and proposal
Conducting a proper internal analysis allows in identifying the capability of the internal environment of an organization and here the use of internal analysis would allow in the understanding of the factors that contributes in forming the strengths and weaknesses of the organization. It can be said that the strength of the firm has its foundation based on the proper analysis of the specific activities that comprise of the factors such as value chain and display the different processes that were responsible for enhancing the functioning of the organization. The year of 2011 stressed on the performance of the company and paid substantial amount of focus o the business models and philosophies used by the organization (Garnett et al., 2016).
Resources of the firm (tangible and intangible)
The company has decent amount of tangible and intangible resources and the human resources and substantial amount of innovation in the products of the organization are being identified as their key aspects. The company has around 3000 stores located all over Australia and New Zealand (Woolworths.com.au, 2018). The company has managed to gain a customer base of about 180,000 (Woolworths.com.au, 2018). One of the biggest advantages of the company comprises of providing the people with good quality products and ensuring that the products are being checked properly to avoid tampering with the quality before the product reaches the doorstep of the consumers. The organization intends to shift its focus on the production of certain products, which will be supported by the important people belonging to the management of the company.
Identification of Capabilities
The company has the ability to enhance its production techniques and intends to introduce innovation from time to time. The company is also highly capable of performing recruitment and selection of talented workforce who would be better in enhancing the productivity of the company. The company has also managed to maintain their supply chain properly. The distribution system of the company is also considered highly capable of conducting in bound and out bound services that would allow them to reach out to the customers on a large scale (Zarkada-Fraser and Fraser, 2015). The company’s ability to provide good quality products, on time deliverance system allows them to function better, and gain the loyalty of the customers.  
Main Competency Analysis
World Supply Class Chain: This particular section mainly focuses on the innovations and gaining competitive advantage in the market from the side of the company. The company also intends to enhance the ability of their supply chain (Kotusev et al., 2016). At the same time, the company intends to emphasize on decreasing the cost of the products and boost substantial amount of development in the R&D section of the company. The company also aims to focus on the choices of the customers.
Brand Marketing: The Company has the ability to enhance their ability in order to function better in the retail market and ensure that they can provide good quality eatable products to the people. The company can enhance their differentiated image by ensuring the fact that they would upgrade the quality of food by minimizing the prices of the product.
Integration: The organization has the ability to ensure that they can manage deals with contractors to be able to maintain the synchronization of the sections that would focus on the manufacturing procedure.
Innovation: The Company has the ability to ensure the fact that they can meet the needs and requirements of the customers by incorporating innovation in their products.
Propose a suitable information system solution that meets the chosen company needs.
The suitable information system that has been considered viable for meeting the needs of the company comprises of the Management Information Systems (MIS). This system is being considered as one of the successful management process available in the market. The company intends to deal with procured data and generate viable results for the effective functioning of the organization (Prasad and Green, 2016).
Evaluate the proposed system and provide your recommendations
The current system of the company can be considered as highly advanced and it can be said that the company is looking forward to enhance the idea of a complete automation process in the organization with the use of MIS. The process will entirely focus on the controlling, monitoring and recording the databases that are important to be reviewed for the benefit of the company. The company can enhance the use of social media to generate the ideas of the customers for the better functioning of the organization. It will also allow the company to reduce the cost of extra maintenance charges and the incorporation of proper funds.
The research presented above provides us with substantial amount of knowledge that is to be incurred with the help of study on the pricing plan associated with the company named Woolworth’s group. With the process of the research, it was being identified that the company has been able to introduce multiple techniques in the market that allowed them to gain competitive advantage in the market. At the same time, the company has also managed to shift its focus towards reducing the costs and enhancing the profit structure of the organization. The organization has also managed to analyze its competitors to ensure that the company Woolworths’ is also able to maintain its market dominance. The research also focused on the company’s use of automated information systems that would allow them to gain substantial amount of work competency in the organization.
Reference List
Altuna, N., Contri, A.M., Dell’Era, C., Frattini, F. and Maccarrone, P., 2015. Managing social innovation in for-profit organizations: the case of Intesa Sanpaolo. European Journal of Innovation Management, 18(2), pp.258-280.
Baldwin, R. and Lopez?Gonzalez, J., 2015. Supply?chain trade: A portrait of global patterns and several testable hypotheses. The World Economy, 38(11), pp.1682-1721.
Chattell, A., 2016. Creating value in the digital era: Achieving success through insight, imagination and innovation. Springer.
Dixon, J., 2017. Supermarkets as new food authorities. In Supermarkets and agri-food supply chains: Transformations in the production and consumption of foods. Edward Elgar Publishing.
Gabriel, P. and Drayton, B., 2016. Social entrepreneurship and innovation: International case studies and practice. Kogan Page Publishers.
Garnett, S.T., Lawes, M.J., James, R., Bigland, K. and Zander, K.K., 2016. Portrayal of sustainability principles in the mission statements and on home pages of the world’s largest organizations. Conservation biology, 30(2), pp.297-307.
Kotusev, S., Singh, M. and Storey, I., 2016. Enterprise architecture practice in retail: Problems and solutions. Journal of Enterprise Architecture, 12(3), pp.28-39.
Prasad, A. and Green, P., 2016. On information technology competencies for collaborative organizational structures. Communications of the Association for Information Systems, 38, pp.379-399.
Rodríguez, M., Paredes, F. and Yi, G., 2016. Towards Future Customer Experience: Trends and Innovation in Retail. ???????, 10(3 (eng)).
Saebi, T., Lien, L. and Foss, N.J., 2017. What drives business model adaptation? The impact of opportunities, threats and strategic orientation. Long range planning, 50(5), pp.567-581.
Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), pp.19-42.
Woolworthsgroup.com.au. (2018). Woolworths Group: Quality Brands and Trusted Retailing. [online] Available at: https://www.woolworthsgroup.com.au/ [Accessed 6 Sep. 2018].
Zarkada-Fraser, A. and Fraser, C., 2015. Integrating social and economic orientated marketing: A study of retail management. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference (pp. 219-223). Springer, Cham.

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