Journal Of Logistics Research Applications -Myassignmenthelp.Com

Question: Discuss About The Journal Of Logistics Research Applications? Answer: Introduction Business management is the act of formulating, implementing and evaluating cross-functional decisions, which enables an organization towards achieving long term organizational objectives (Blackburn et al., 2013). The study will describe Woolworths of Australia, which is going to enter into new transportation and storage business sector. This study will examine and evaluate business level strategies, global and multinational strategies and organizational structure and strategies for the new SBU of Woolworths. Apart from that, the study will also suggest some appropriate recommendations towards gaining the success of new transportation and storage business unit of Woolworths. Background Woolworths is the largest supermarket chain in Australia. The first store of Woolworths was actually established in 1924. The retail giant Woolworths is actually operating more than 995 full size supermarket across Australia. The organization is mostly specialized in groceries, but it also sells DVDs, magazines, health and beauty products, stationary items, pet and baby products and others (Woolworths.com.au 2017). The organization has also more than 111000 employees. Woolworths operates both in domestic as well as international marketing. The organization also has online delivery system towards enhanced customer convenience. Apart from supermarket chains, 1000 stores and 19 convenience stores of Woolworths also carry the same organizational logo. Woolworths account for 80% of the Australian market (Woolworths.com.au 2017). Among the food retailers, the Woolworths of Australia holds 43% market share in Australia. Figure 1: Food Market Share of Woolworths (Source: Woolworths.com.au 2017) Analysis of Possible Strategies According to Klettner et al., (2014), business-level strategies define the set of integrated and coordinated activities, which are used by an organization towards creating competitive advantage through exploiting its core competencies. On the other hand, Bentley et al., (2013) opined that the purpose of business-level strategies is intended to create differences between the position of an organization and its competitors for gaining competitive edge. Therefore the business level strategies for the new SBU of Woolworths can best be suggested through Porters Generic strategy. Porters Generic Model suggests for three types of business level strategies to organizations towards gaining competitive advantage and market attractiveness over the rivals. Therefore, Woolworth can use following three types of business level strategies through Porters Generic model for gaining competitive advantage in transportation and storage industry. Cost Leadership Strategy Martinez-Simarro et al., (2015) pointed out that cost leadership strategy suggests for being low cost producer in the industry for a specific level of quality. On the other hand, Chen and Jermias, (2014) opined that cost leadership strategy facilitates an organization towards selling their products and goods at low prices to the customers having being low cost producer in market. While considering the transportation and storage business unit of Woolworths, the organization should use cost leadership strategy for its services. Moreover, the organization should offer low prices to the customers for their transportation and storage services like UPS, DHL and others. Such low price of services would help the organization in gaining competitive advantage and increased market share over the rivals through beating the price war. Differentiation Strategy As per Kellermanns et al., (2014), differentiation strategy suggests for incorporating unique attribute the products and services of an organization, which can provide unique value to the customers. Such unique customer value leads the customers to perceive the products and services to be unique over the competitors. On the other hand, Li and Tan, (2013) opined that unique attributes also allow an organization to charge premium prices for some unique products and services. Therefore, Woolworths should adopt differentiation strategy for their new transportation and storage services for creating unique customer value. Moreover, the organization should provide specialized transportation services to the customers. The organization should always deliver the goods of the client timely to their desired place. Furthermore, the vehicles used in the transportation should always provide uninterrupted services without any vehicle breakthrough in the middle of the roads. Woolworth should also hav e large fleet power unit, which will include air-ride and lift gate vehicle for ensure reliable and consistent transportation services. In case of storage services, the organization should always provide experienced packing crew for moving the goods of the clients in the storage. Focus Strategy According to Jayaram et al., (2014) focus strategy concentrates on narrow customer segment and gaining competitive advantage within that segment through either cost leadership or competitive strategy. Narrowing down the customer segment helps an organization towards provide unique customer through concentrating specifically on those customers. In case of transportation and storage unit of Woolworth, the organization should concentrate of business clients. Within this segment, the organization should provide unique value to the customers tough provide unique services. It will help the organization in better gaining competitive advantage within narrow customer segment though highly focusing on their needs. Figure 1: Business-Level Strategies (Source: Ghosal, 2015) Global Strategies and the Multinational Corporation Global strategies are mostly adopted by Multinational Corporations through which the organizations want to make competitive position in global or international market. While considering the new transportation and storage business unit of Woolworths, it can follow the following the global strategies of strategic management for making competitive market in international basis. International Strategy Dahlberg et al., (2016) opined that international strategy suggests an organizations towards leveraging the home based core competencies in the international market. Moreover, the organizations offer same types of products and services both in domestic as well as international market. On the other hand, Ibrahim, (2015) opined that the logic behind international strategy is that the approved competitive edge of domestic products and services will also create competitive edge in international market. Therefore, Woolworths can use same types of transportation and storage services both in domestic as well as international market for consistently maintaining competitive advantage in global market. Localization or Multi-domestic Strategy According to Ghezzi, (2013), localization strategy suggests for maximizing the local responsiveness of the products and services through multi-domestic strategy. Moreover, multi-domestic strategy sacrifices the efficiency in favor of emphasizing local responsiveness of the products and services in each market. On the other hand, Ryu et al., (2015) opined that localization strategy make the domestic products and services more familiar to the international customers. Moreover, such strategy facilitates in creating competitiveness in global market, while global consumers perceive the organization to be domestic organization. In case of Woolworths, the organization should align their transportation and storage service with the local requirements of international markets. Moreover, the organization can initiate customized product offerings in the global market for creating global competitive advantage. Global Standardization Alsudiri et al., (2013) global standardization strategy concentrates on increasing the profit growth of an organization through reaping the cost reductions, which come from location economics, economies of scale and learning effects. The goal of the strategy is to pursue a low cost strategy on global scale, which can facilitate the organizations in fostering competitive advantage with cost leadership strategy. While considering the transportation and storage business unit of Woolworths, the organization can hire labor, vehicles, technological support and other business equipments from the countries, where it can avail them at low prices. It will help the organization is reducing overall organizational cost and enhance economies of scale towards enhancing organizational profitability. Transnational Strategy Transnational strategy opts for combination of localization strategy and global standardization strategy. Moreover, Eaton and Kilby, (2015) opined that transnational strategy suggests for both gaining economies of scale and enhancing local responsiveness in global market. In case of new business unit of Woolworths, the organization should both reduce overall organizational cost as well as enhance local responsiveness in the global market for gaining high level of competitive advantage in global market. Figure 2: Global Strategy (Source: Vlachos, 2016) Organizational Structure and Strategy Organizational structure defines the activities like task allocation, coordination and supervision, which are actually directed towards achieving organizational goals. Thom and Medeiros, (2016) pointed out that Organizations must adhere to efficient, innovative, flexible and caring for achieving sustainable competitive advantage. Likewise, Woolworths should also be highly conscious about framing effective organizational structure towards achieving sustainable competitive advantage. The following components of organizational structure should be followed by Woolworths for their getting success in new transportation and storage business. Flat Organizational Structure According to vrov and Vrchota, (2014), flat organizational structure has few or no middle level managers between the employees and executives. The employees are free to directly communicate with the upper management. Less rules and regulations are imposed on the employees in flat organizational structure, which encourage the employees towards enhancing their productivity. Therefore, Woolworths should frame flat organizational structure for their new SBU for getting sustainable competitive advantage. Free Flow of Communication Flat organizational structure ensures free flow of communication between management and employees. Moreover, the managers always share important organizational information with the employees (Ghosal, 2015). Therefore, such organizational structure maintains a transparency between the employees and managers. In case of Woolworths, flat organization would definitely ensure clear understanding of the organization objectives by the employees due to free flow of communication. Therefore, they can better align their efforts with organizational objectives towards ensuring their success. Less Stringent Rules and Regulations Kossyva et al., (2015) opined that flat organizational structure ensures less stringent rules and regulations imposed on the employees. Therefore, such organizational structure ensures high level of employee morale with flexible organizational approach. Therefore, Woolworths should ensure less strict rules and regulations on the employees in new SBU for enhancing their morale and level of productivity Allowing Employees in Decision Making Process Flat organizational structure always ensures empowerment of the employees through enhancing their values at the workplace. Moreover, such organizational structure involves the employees in organizational decision making process, which enhances their motivation level and job efficiency level. Likewise, adoption of flat organizational structure would also ensure high level of employee motivation for the employees of new SBU of Woolworths. Therefore, such employees would better concentrate on the success of new SBU of Woolworths. Kind Supervision According to Ibrahim, (2015), flat organizational structure ensures equal allocation of tasks among the employees, which ensures shared employee workloads. Likewise, Woolworths should ensure equal distribution of tasks among the employees. Apart from that, adoption of flat organizational structure would also ensure kind supervision of the management to the employees of new SBU of Woolworths. Therefore, it would ensure sustainable competitive advantage of the SBU through ensure reduced complexity level of the employees. Conclusion While concluding the study, it can be said that Woolworth is going to enter into transportation and storage industry. Among the most effective business level strategies, Woolworths should ensure cost leadership strategy through reducing the cost of transportation and storage services. Moreover, the organization should also ensure differentiation in the new transportation and storage services. It should ensure uninterrupted and customized transportation and storage services for ensure competitive advantage over the rivals. On the other hand, among the global and multinational strategies, Woolworths should ensure transnational strategy for getting success in global market. Moreover, the organization should maximize the local responsiveness of the transportation and storage services in the global markets. Furthermore, the organization should ensure increase the economies of scale of the services in the global market. On the other hand, the organization should ensure flat organizational structure for its new SBU for ensuring increased employee productivity. Cost Leadership Strategy Woolworths should ensure cost leadership strategy for their new transportation and storage business units. Moreover, the organization should ensure low cost for the overall organizational operation. It would also ensure low prices for the transportation and storage services for beating the price war in the market and gaining competitive advantage over the competitors in the market. Furthermore, the organization can also enhance the market share of the new business through ensuring the prices of services below the average industry prices. Affordable prices of the services would ensure increased service adoption by the customers, which would ensure increase market share and competitive advantage in the market. Differentiation Strategy In case of new transportation and storage services of Woolworths, the organization should ensure unique attributes to the services provided to the customers. Moreover, the organization should ensure the perceived value of the customers regarding the services over the competitors in the market. Woolworths must ensure uninterrupted and air-ride and lift gate vehicles for transportation services. Furthermore, the organization should also ensure experienced packing crew for moving the goods of the clients safely. In this way, customized services would ensure competitive advantage of the business over the competitors in the market. Transnational Strategy Woolworths should also ensure transnational strategy for gaining success of new SBU in the global market. Moreover, it should ensure combination of global standardization strategies and multi-domestic strategies towards ensuing global success. The organization should ensure local responsiveness of the global market. In this way, the global customers would feel the organization as domestic organization. The organization should ensure local offerings of the organizations. Apart from that, the organization should also ensure enhance the economies of scale of the services through taking the local advantage of the global market. In this way, combination of global standardization and multi-domestic strategies would ensure global success of the new SBU of Woolworths. Flat Organizational Structure Woolworths should adopt flat organizational structure for the new transportation and storage business. Moreover, in such organizational structure, the employees should get enhanced value at their workplace. There should be less stringent rules and regulations imposed on the employees. It would encourage the employees towards enhancing their productivity. 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Retrieved 9 October 2017, from https://www.woolworths.com.au/