David Jones
INTRODUCTION
On behalf Li & Partners consulting firm, we are pleased to present the strategic recommendation report. This reports divided into five sections. David Jones’ external and internal environments are discussed in the first two sections. The following section focuses on the identification of stakeholders and their interests. Our strategic recommendations to improve shareholder value are explained in the fourth section followed by the impact our recommendations have on stakeholders. A balance scorecard is constructed in the last section to illustrate the effect our strategic recommendations have on stakeholders and future company performance.
1. EXTERNAL ENVIRONMENT ANALYSIS
2.1. Macro environment analysis
Legal: The deregulation in retail industry’s opening hours has resulted in an increase in retail spending. However, Western Australia’s decision to decline department stores from operating on Sundays reduces the profitability of this market sector (The Australian, 2009). Additionally, the threat of climate change will increase energy costs and put strain on David Jones’ operating efficiency (Annual report, 2008).
Economic: The global financial crisis has resulted in a decline in consumer spending and confidence. However, government’s stimulus package may reduce the impact of the crisis and expected to have positive impact on retail sales, at least on the short-term.
Socio-Cultural: People are demanding a more stable balance between work and social-life. As people are becoming more inclined to spending long days at work, the customer stream is expected to increase in department stores during weekdays.
Technological: Major technological improvements have resulted in an increase in web-enabled business. These e-commerce businesses have the potential of reaching to every single consumer in the marketplace and thus reducing the geographic boundaries that physical stores face.
Demographic: Australia is facing aging population and increasing
On behalf Li & Partners consulting firm, we are pleased to present the strategic recommendation report. This reports divided into five sections. David Jones’ external and internal environments are discussed in the first two sections. The following section focuses on the identification of stakeholders and their interests. Our strategic recommendations to improve shareholder value are explained in the fourth section followed by the impact our recommendations have on stakeholders. A balance scorecard is constructed in the last section to illustrate the effect our strategic recommendations have on stakeholders and future company performance.
1. EXTERNAL ENVIRONMENT ANALYSIS
2.1. Macro environment analysis
Legal: The deregulation in retail industry’s opening hours has resulted in an increase in retail spending. However, Western Australia’s decision to decline department stores from operating on Sundays reduces the profitability of this market sector (The Australian, 2009). Additionally, the threat of climate change will increase energy costs and put strain on David Jones’ operating efficiency (Annual report, 2008).
Economic: The global financial crisis has resulted in a decline in consumer spending and confidence. However, government’s stimulus package may reduce the impact of the crisis and expected to have positive impact on retail sales, at least on the short-term.
Socio-Cultural: People are demanding a more stable balance between work and social-life. As people are becoming more inclined to spending long days at work, the customer stream is expected to increase in department stores during weekdays.
Technological: Major technological improvements have resulted in an increase in web-enabled business. These e-commerce businesses have the potential of reaching to every single consumer in the marketplace and thus reducing the geographic boundaries that physical stores face.
Demographic: Australia is facing aging population and increasing