Management Theory and Strategic Management Practices

Question: Discuss about the Management Theory and Strategic Management Practices. Answer: Introduction The content of the paper evaluates performance of firms within an industry through evaluation of various marketing strategies. Woolworth is one of the organizations which has been in the news for over two years now due to the stiff competition from other firms like Cole. Woolworth is a general store which stores various products and majorly deal with groceries. Woolworth has been in the news due to various marketing strategies applied by the firm in order to maintain its survival at the top of the industry (Ghoshal, 2015). The firm applies majorly value and pricing strategy to control the general store industry. The aim of this paper therefore applies critical evaluation on the marketing strategy used by Woolworth supermarket. Marketing strategies can be influenced by various theoretical concepts such as industry attractiveness, resources and competitive advantages. The content of this paper therefore apply and critically evaluate how each of the mentioned theoretical concepts influences strategic management practices in Woolworth as an organization (Keith, 2015). The paper also looks deeply into the various resources of Woolworth organization which makes the organization to have control over other firms within the industry. It further provides various recommendations that would enhance strategic management in Woolworth supermarket within the conclusion. Industry attractiveness There are various factors which attracts an entrepreneur to enter into a given industry. Industry attractiveness is therefore various factors within the general store industry that has made various investors to venture into retail business such as Woolworth (Parker et.al 2015). The nature of an industry may lead into formation of specific marketing strategies to ensure the survival of the firm within an industry. Woolworth as a business organization within an attractive industry concentrates on specific factors present in the industry for their growth, survival and profitability (Keith, 2015). Levels of competitions The rate of competition within the general store industry has resulted into Woolworth supermarket being in the news for a long time. The industry has got extensive market as it serves every individual within the country and other parts of the world as well. Due to stiff competition from other firms, Woolworth in the recent past developed price mechanism model where they beat their rivalries exploiting their competitive advantages where they use low prices and customer preferences to control the industry (Knights, Willmott, 2016). Woolworth use both innovative, value and pricing to scare away firms joining the industry making them struggle to gain strong foothold. Entry barriers Venturing into retail store business has got no major barriers compared to other sectors. There are no stiff regulations set by the regulatory bodies which allow many entrepreneurs to see opportunities in retail business sector. In order to contain the customers, market control and profitability, Woolworth applies various strategies to contain competition from various new ventures. The firm use various strategies such as price control mechanism as a competitive strategy to control other firms joining the industry. Resource based view Refurbishment and new stores Woolworths ability to create various stores as per the population growth. The company compared to other firms is able to refurbish more than eighty store yearly to maintain the foreseeable future. Compared to other 23 stores within the business the FY14 and the other 61 stores available within the FY15, the Woolworth stores are refurbished according the customer desires and local customer preferences (Knights Willmott, 2016). Woolworth is also able to develop between 20 to 30 stores annually which is an advantage since most of the rivalry firms are not able develop. Woolworth is therefore able to serve an extensive market compared to other rivalry firms. Online system The organization has developed new system of selling products online. Woolworth enjoys the presence of around 250 click and collect stores in various locations. Online pricing is convenient to the customers as many are able to get what they need. Through online pricing, the organization is able to enhance investments in various multi-channel customer experiences (Phillipov, 2016). Man power and performance Experienced manpower is another advantage that Woolworth enjoy over other rivalry firms. The company have the best marketing strategist who are able to formulate various strategies to control the industry (Keith, 2015). The organization has various personalities who are able to create different marketing models enabling the Woolworth to beat other firms within the industry. Woolworth over the recent past have been controlling the markets due to the competent directors who are capable of developing various appropriate marketing strategies to beat other firms in the same industry such as Cole supermarket. Competitive advantage Three year strategy Woolworth as a business organization has been at the top of other retail organization based on various advantages within and without the organization. In the recent past Woolworth marketing team developed new marketing strategy which has shown them improve on their sales (Knights Willmott, 2016). The company under the management of the new manager has outlined three year strategy which is one of their competitive advantage over other firms. The management of the organization decided to apply marketing strategies which are customer oriented. Price control Woolworth as an organization has been using their stability in the market to control other firms. The management of over the recent developed a strategy of fair pricing to control other firms like Cole from taking over the market. The application and value strategy by Woolworth is a competitive advantage over other firms which must charge fair prices in order to maintain production and supply (Keith, 2015). Woolworth as organization applies value and lowering of various products to maintain customers loyalty preventing them from moving to other firms like Cole. When a firms is stable and able to lower their prices, the customer loyalty is maintained enabling them to sell more of the products. Supplier power Woolworth over the past controls the supplier power which is a major competitive advantage ensuring its growth and profitability (Knights Willmott, 2016). The firm uses various resources have control of major suppliers who are mainly agricultural producers. Woolworth applies pricing and value mechanism to maintain the supplier loyalty. The company offer better prices for various farm products thus able to retain the supplier power. Conclusion The main objective of the paper according to the above analysis was to critically review the extent to which theoretical as well as various literature on the linkage between the type of strategy used by a firm, resources of the firm, core competencies and the competitive advantage. The paper was also aimed at providing various recommendations to the firm to ensure its survival and profitability (Ghoshal, 2015). It is therefore clear from the above discussion that core competencies, market advantage, industry attractiveness and resources determines the choice of strategy employed by a firm. It therefore recommended that the firm should devote various resources together with the core competencies to acquire a competitive advantage. From the above evaluation, a firm like Woolworth should use resources to create sources of suitable and sustainable competitive advantages (Ghoshal, 2015). Finally, Woolworth management team should come up with various mechanisms of acquiring several resourc es from other firms in order to develop sustainable sources of competitive advantage. References Ghoshal, S. (2015). Bad management theories are destroying good management practices. Academy of Management learning education, 4(1), 75-91. Keith, S. (2015). Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal of Regional Food Studies, 2, 47-81. Knights, D., Willmott, H. (Eds.). (2016). Labour process theory. Springer. Parker, C., Carey, R., De Costa, J., Scrinis, G. (2015). The Hidden Hand of the Market: Who Regulates Animal Welfare Under a Labelling for Consumer Choice Approach?. Phillipov, M. (2016). 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