Warehouse Group (Strategic Marketing Management ) Assignment

Warehouse Group (Strategic Marketing Management ) - Assignment Example Businesses are consistently faced by dynamism in their operations as they trot towards the envisioned aims and objectives. This therefore calls for substantive strategies that are aimed at restoring the business to its path as well as facing the challenges head on to guarantee continued life and the eventual financial health. The same will see strategies that are market driven that present a strong foundation upon which a business gains a strong standing in its activities. In respect to this, any business foreseeing triumph ought to craft such dimension so as to remain relevant and consistent to the ever changing nature of business environments. By so doing, a firm embraces various strategic perspectives including competition, branding and innovation alongside other aspects that improve the well being of an organization. 2.0 Background information and current situation Operating in New Zealand, The Warehouse Group Limited was established in 1982 and is today rated the biggest retaile r sharing similar characteristics with Walmart located in the USA. It is also listed in the New Zealand Stock Exchange where shares are publicly traded. Nevertheless, The Warehouse majors with more operations than those exhibited by department or discount stores with increased capacity and volume of business. Since its inception The Warehouse has grown tremendously increasing its presence in New Zealand to 83 stores by 2012. It is during this time that a decision to be involved in an acquisition was hatched to increase production and reach more markets for growth and success. The actual business of the Warehouse revolves around grocery as well as non grocery products, an activity that is undertaken broadly in its department store with a workforce slightly exceeding seven thousand employees (Gunter & Mark, 2005). Moreover, there are additional distribution stores that purpose to augment as well as broaden the market reach thus increasing the geographical coverage. The Warehouse also boasts with a number of brand names that are situated around the stores that adds up to its other operations. The presence of gardening facilities also increases the value of business more so in Auckland and Christchurch areas where the Warehouse offers its just brand alongside other brands owned totaling to almost thirty (Krishna, 2007). The Warehouse doesn’t operate in isolation and it’s never a monopoly. It operates in a highly competitive business enviroment since there are other players in the industry who are also aiming at capturing a larger share of the market and also remain relevant. The retail platform is shared by Super Cheap Auto who trade in products related to automobiles, Farmers having department stores across the country dealing with lowscale end of the market, Kmart and Briscoes Group who basically major in homeware and sportsware. Notably, the industry is still attractive to venture in hence there are other potential players who have the urge to sha re in this cake. Subject to time therefore, these players will find their way into this market hence would pose extra competition to Warehouse. With a view to

Week 4 (my part of team assignment) Essay Example | Topics and Well Written Essays - 750 words

Week 4 (my part of team assignment) - Essay Example The first scenario that will be analyzed is zero growth. Under the cero growth scenario the company during the next five years will maintain a constant sales level. An economist might state that in reality a company that achieves zero growth loses because during those five years inflation occurred. At the US 2.3% annual rate of inflation the cumulative inflation after five years would be 11.5%. This means that the company lost 11.5% in purchasing power at the end of the five years. If sales stayed the same the company would be worst off after five years because expenses increased due to inflation. The company can offset the detrimental effect on cost inflation has by implementing process improvement that reduce the cost of doing business. To maintain a stable level of sales over a five year period the company must achieve a good customer retention rate. The second scenario is for Larson Inc. to decrease its sales over the five year period. The world is currently facing the effects of a global recession that started approximately 2008. The US GPD growth for the 2nd quarter of 2010 was 2.4% (Amadeo, 2010). Despite the economy having achieved a positive overall growth there are many problems with the US economy. In the United States the unemployment rate is at a massive 9.9% rate. In the past the unemployment rate in the United States always used to hover below 5%. This means that unemployment is twice as high as it was a few years ago. Larson produces batteries for the regular household consumers. If these people have less money available then they will purchases less batteries. The unemployment rate in Germany is higher than in the United States at a 10.8% rate. If the level of sales of Larsen Inc. decreases for the next five years the company and its managers are going to face some tough decisions. Massive layoffs of personnel are a high possibility. The company might have to sacrifice quality by purchasing cheaper quality materials for