HI 5019 Strategic Information Systems For Business And Enterprise

HI 5019 Strategic Information Systems For Business And Enterprise

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HI 5019 Strategic Information Systems For Business And Enterprise

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HI 5019 Strategic Information Systems For Business And Enterprise

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Course Code: HI5019
University: Holmes Institute

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Country: Australia

Explain and outline business activities and operations of Woolworths. Discuss how information system helps to reduce the problems of the customers in the competitive market.

The main motive of this paper is to explain and outline business activities and operations of Woolworths. Woolworths is retail and Supermarket Company offers grocery products to the customers around the world. The retail industry is one of the Australia’s biggest employers. The profile and background of Woolworths have been explained in the task. To attain long term goals and objectives, Pestle and porter five forces analysis are done by the company. The paper also provides brief information about tangible, intangible resources, capabilities, core competencies and core values. The paper discusses that how information system helps to reduce the problems of the customers in the competitive market. Further, the suitable information system also helps to meet the long term needs and desires of the business and customers as well. At the end some recommendations have been given to improve and enhance the effectiveness and performance of the workers.
(External analysis) 
Business background 
Woolworths group limited is a biggest Australian Corporation with extensive retail interest throughout New Zealand and Australia. The company was incorporated in 1924 with its headquartered is situated in Bella Vista, New South Wales Australia (Woolworths, 2018). It is second biggest company in the country measured by revenue. The mission of the firm is to offer best and unique quality of products and services for the customers across the world. The company has employed approx 205,000 employees who are working in more than 3,000 stores around the world (Woolworths, 2018). The firm is trusted business partner to thousands of manufactures and local farmers in the competitive market. Constitution of the firm outlines and explains the principles and rules for conducting the business activities and operations globally (Woolworths, 2018).
It has been found that Woolworths mainly belongs and interconnected with retail industry. The retail industry plays a major role in attracting the maximum number of customers across the world. The retail industry helps in offering retail and consumer products to the customers. This industry uses ample of distribution channels and resources to gain competitive benefits in the international market. It is noted that retail industry provides ample of growth and employment opportunities to the candidates across the world. Along with this, this industry also maintains a strong and unique supply chain management system to fulfill the needs and requirements of the customers.
General environment analysis 
It has been found that general environment analysis is needed to gain competitive benefits and to attain competitive benefits in the global market (Sadgrove, 2016). Therefore, general environmental analysis techniques and tools are used by the firm to analyze and evaluate the risks and challenges of the market. Some general environmental factors have been discussed below.
Economic factor: The economic factors deal with the productivity and performance of the country’s economic efficiency. The economic factors include inflation rate, purchasing power, interest rate and exchange rates. The Australian economy advanced was 0.9 percent in the June quarter of 2018 that largely puts direct impact on the targets and goals of the firm (Tradingeconomics, 2018).  It has been found that Australia maintains a stable and unique economy in the market thus, Woolworths can take ample of growth opportunities in such country (Dos Santos, 2011).
Physical factor: There are ample of programs and sustainability approaches that can be used by the company in physical environment of the country. These approaches and programmes will help the firm to protect and improve the business activities and functions of Woolworths. Apart from this, these strategies and programs put fewer effects on the global environment (Swotandpestle, 2017).
Demographic and Socio-cultural factor: It has been noted that demographic and socio-cultural factors are interrelated with each other to meet the long term requirements of the business. The social factors include norms, customs, gender, sex, and language and population size. On the other hand, the demographic factors are constantly changed in Australia. The demands of the consumers are frequently changed due to the various technological changes. Woolworths needs to focus on the demographic and socio-cultural factors to strive with rivalries in the international market (Svensson and Wagner, 2011).
Global factor: In today’s era, Woolworths is expanding and flourishing the business activities and actions globally. Therefore, the main motive of Woolworths is to maintain its growth and progress by exploring the business activities (Craig and Campbell, 2012).
Technological factor: Technological elements largely affect the business operations and functions. In today’s modern world, innovation and global technology is a common and effective trend that Woolworths are implementing to sharpen their competitive edge. The company uses unique and effective green refrigeration technology to cope with rivalries globally.
Political/legal factor: The firm can take various advantages due to the Australia-New Zealand closer economic relations trade agreement. The agreement entails two countries where the company works as a single and unique community to cater to wants and requirements of its customers across the world (Swotandpestle, 2017).
The socio-cultural, political and demographic factors play an imperial role to fulfill the needs and requirements of the business. Further, these elements also help to stand out against the competitors globally.
The industry environment 
Porter five forces analysis is one of the fundamental techniques to analyze and evaluate the entire industry and further, it also helps in gaining rivalries benefits in a wider extent. The porter five forces analysis for Woolworths is elaborated below.
Bargaining power of buyers: It is stated that bargaining power is strong and soaring in the hands of the buyers. The company offers around homogenous products that have low switching costs between the stores. Thus, it affects the long term success of the firm.
Bargaining power of suppliers: It is seen that bargaining influence in the retail supermarket dependent on the brand name and image of the vendors. Coca Cola and British American Tobacco are those suppliers who enjoy the strong and dynamic power in the international market.
Industry substitutes: There are ample of substitutes that play a empirical role in the retail supermarket industry. Generally, people are keen to pay extra amount for the handiness The power of substitutes is moderate due to the availability of the society (Aaker and McLoughlin, 2010).
Threat of new entrant: It has been found that threat of substitute is moderate due to low price renders in the Australia. The industry is not an attractive and unique to enter in the market. Along with this, huge capital requirement, regulations, norms and price of land can act as a threat to enter in the new market. It is seen that barriers to enter in the supermarket industry are moderate (Helms and Nixon, 2010).
Rivalry among the competitors: There is high and intensive competition in the global market that can affect the position and brand name of Woolworths.
It has been found that industry environment is essential for each and every company to build good reputation and hit the rivalries in the market. This analysis is significant for Woolworths to identify and analyze the potential suppliers, competitors and buyers. Woolworths cannot control over the competitors to keep an good image in the eyes of the customers (Rothaermel, 2015).
Competitive environment 
The main competitors of Woolworths include Coles group, Target Corporation, Amazon, Kroger, Aldi, Ikea and Costco Wholesale. All these competitors affect the target and long term profitability of the firm. The competitors produce same products as well as Woolworths thus, it can become a major challenge for the company. No company can expand and flourish the business without identifying and monitoring on the competitors in the market. Capabilities play a fundamental and crucial role to overcome the competitors globally. The capabilities are considered an effective and unique part of Woolworths that help in attaining rivalries benefits. The main and significant capabilities of Woolworths include strong database of skilled workers, good sourcing capabilities, leadership, effective resources and efficient infrastructure. All these capabilities positively support the growth strategy of the company in an effective way. In today’s era, the company needs to focus on the innovation practices, and skilled labor forces for achieving long term mission and vision (Mbaskool, 2018).
It is noted that effective planning is needed to handle and control over the rivalries globally. Woolworths needs to use product strategy to distinguish its products from the competitors. It is one of the significant and dynamic approaches that used by the company to stay in the competitive market. Apart from this, it also focuses on the diversification strategy to provide ample of benefits to the customers. Rising raw material costs and economic recession are significant threat for Woolworths that can affect the overall growth in the international market (Mbaskool, 2018).
Opportunities and threats 
The opportunities and threats of Woolworths include the following:

It has been noted that Woolworths can promote and improve the brand through promotions, advertising and sponsorship etc.
It needs to seek growth through strategic franchise and acquisitions models in emerging economies.
Opening up stores in newer geographic can develop and boost business for Woolworths.


There is stiff and intense competition in the market; it is biggest threat for Woolworths.
Economic recession can hinder the entire growth and progress of the firm.
Increasing raw material costs from both nonfood and food would impact profit margins of the firm

(Internal analysis and proposal)
Resources, tangible and intangible 
After the various studies, it has been analyzed that Woolworths has 3,000 stores in the New Zealand and Australia and there are many employees are working in the company (Telstra, 2018). It means company’s tangible and intangible resources and capabilities are very unique and strong. It is stated that the company has efficient and strong human resource management to hire effective and dynamic candidates across the world (Drucker, 2012). The firm further has ample of product innovation skills, supply chain and logistics management, unique reputation, well-built brand image for fresh food and quality, alliance management, partnership and effective relationship with vertically integrated businesses (Bennet and Bennet, 2009). The tangible and intangible resources include copyright, goodwill, trademark, brand reputation, patent, human resource management, and logistics management. Apart from this, Woolworths uses unique and effective core competencies such as differentiation, focus and cost leadership strategy (Taylor and Joudrey, 2017).
Capabilities refer to power that help in achieving the desired objectives and goals. In other words, capabilities may be defined as a company’s skills in communicating and coordinating its resources for uplifting productivity and effectiveness (Saint-Onge and Armstrong, 2012). It has been analyzed that Woolworths is conducting business activities and operations successfully and effectively it means that it is competent enough to use right and appropriate person in right and effective position and further the company knows how to use or fix the resources in a hassle free manner. Without capabilities, the company is unable to reach its long term objectives and goals in the competitive market. Along with this, Woolworths also focuses on the cost cutting and efficiency to manage the unnecessary expenses (Methner, Hamann and Nilsson, 2015).
Core competency analysis 
The core competency of Woolworths has been discussed below.
World class supply chain: The Company’s modernism and competitive benefit have built through its dynamic and effective supply chain. Woolworths also focuses on effectiveness and quality of the products and services widely (Helfat et al, 2009).
Branding and market: It has been found that the firm has positioned its stores with “The fresh food people “slogan, generating a unique and dynamic image of excellence and healthy products at appropriate prices.
Innovation: Woolworths has initiated various projects such as petrol retailing, re-fresh and new idea program. It is one of significant core competencies for Woolworths that help in attaining long term targets and goals (Jackson, Schuler and Werner, 2009).
Integration: Integration is a crucial and effecyive core competencies of Woolworths that helps to conduct business activities successfully and smoothly (Harding, 2017).
Suitable information system 
Woolworths must use effective and strong software to handle the activities and functions in the competitive market.ERP system shall be used by the company to minimize and prevent the external and internal threats and challenges of the market. Apart from this, Woolworths can use database management system to maintain and utilize the data and information of the customers. Security techniques to protect the data shall be used by the firm. Woolworths further should adopt a system to manage and control all the departments through one effective and unique device (Chapman and Kihn, 2009).
Evaluate the proposed system and recommendations
There are various factors need to be considered while evaluating the ERP system within the organization. To evaluate the proposed system such as ERP system, cross departmental planning shall be done by the company. Some changes in operational practices must be done by Woolworths while evaluating the ERP system.  The organization should also focus on the change management to implement sustainable and effective ERP system at the workplace. Top management should provide necessary resources and time for training and development on the ERP system. Learning is a new and unique way of operating and managing ERP system within the organization (Maditinos, Chatzoudes and Tsairidis, 2011).
Although the company is performing well to attain its objectives but still it needs to focus on the plans, approaches and policies of the competitors. It is recommended that Woolworths must implement a social media approach to gain the advantages of low cost promotional and advertisement activities. It must contribute in CSR activities and sustainability that help to develop and enhance the goodwill of the company. Research and development team plays a vital role to uplift profitability and outcomes. Therefore, the company should increase and enhance the its research and development finance for identifying and analyzing the alcohol related diseases and to protect itself from the barriers and hazardous. Effective planning shall be done to cope up with rivalries widely. It should focus on the advertisement and promotional activities to make a great reputation in eyes of the target audience. In this way, the organization could able to meet the long term requirements and needs of the customers (Ptak and Schragenheim, 2016).
On the above mentioned analysis it is evaluated that Woolworths is one of the growing companies in Australia that offers wide range of retail and consumer products to the customers across the world. There are two part of the assignment which discusses the business operations of Woolworths. In first part, the paper outlines and explains the background and profile of Woolworths. Further, the paper discusses that how the company conducts general environment analysis to compete with rivalries in the global market. Pestle analysis is done by the company to identify and evaluate the risks and threats of the market. Porter five forces analysis that help in overcoming the rivalries also have been explained in the task. The threats and opportunities, capabilities also briefly have been explained in the paper. In second part, the paper shows that how the company has been able to beat the competitors by using innovative tangible and intangible resources. Capabilities and core competencies also help in boosting the profitability and it has positive impact on the performance of the workers. At the end, effective and suitable information system has been proposed to handle the issues of the customers.
Aaker, D.A. and McLoughlin, D., 2010. Strategic market management: global perspectives. John Wiley & Sons.
Bennet, D. and Bennet, A., 2009. Associative patterning: The unconscious life of an organization. In Building Organizational Memories: Will You Know What You Knew? (pp. 201-224). IGI Global.
Chapman, C.S. and Kihn, L.A., 2009. Information system integration, enabling control and performance. Accounting, organizations and society, 34(2), pp.151-169.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Dos Santos, M.A., 2011. Minimizing the business impact on the natural environment: a case study of Woolworths South Africa. European Business Review, 23(4), pp.384-391.
Drucker, P., 2012. The practice of management. Routledge.
Harding, S., 2017. MBA management models. Routledge.
Helfat, C.E., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece, D. and Winter, S.G., 2009. Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
Jackson, S.E., Schuler, R.S. and Werner, S., 2009. Managing human resources (p. 358). Mason, OH: South-Western Cengage Learning.
Maditinos, D., Chatzoudes, D. and Tsairidis, C., 2011. Factors affecting ERP system implementation effectiveness. Journal of Enterprise information management, 25(1), pp.60-78.
Mbaskool.2018. Woolworths SWOT analysis, competitors & USP[Online]. Available from https://www.mbaskool.com/brandguide/lifestyle-and-retail/5745-woolworths.html [Accessed as on 20th September 2018].
Methner, N., Hamann, R. and Nilsson, W., 2015. The Evolution of a Sustainability Leader: The Development of Strategic and Boundary Spanning Organizational Innovation Capabilities in Woolworths. In The Business of Social and Environmental Innovation (pp. 87-104). Springer, Cham.
Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for integrating the supply chain. Crc Press.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Saint-Onge, H. and Armstrong, C., 2012. The conductive organization. Routledge.
Svensson, G. and Wagner, B., 2011. Business sustainability: frameworks and cases. European Business Review, 23(4).
Swotandpestle.2017. Woolworths limited SWOT and Pestle analysis [Online]. Available from https://www.swotandpestle.com/woolworths-limited/ [Accessed as on 20th September 2018].
Taylor, A.G. and Joudrey, D.N., 2017. The organization of information. ABC-CLIO.
Tradingeconomics.2018. Australia GDP growth rate[Online]. Available from https://tradingeconomics.com/australia/gdp-growth [Accessed as on 20th September 2018].
Woolworths.2018. About us[Online]. Available from https://www.woolworthsgroup.com.au/page/about-us/ [Accessed as on 20th September 2018).

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