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Strategy Development and Initiatives

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Strategy Development and Initiatives (MGMT 20112) Assignment 1 CASE STUDY ANALYSIS Name: Chulliparambil Kumar Student Number: s0054795 Executive Summary Australia has a huge market for household appliances including kitchen appliances such as dishwashers, ovens and refrigerators, laundry appliances such as washing machines etc. Around 74 percent of the household appliances industry output goes to final consumption in Australia. Kleenmaid was established in 1987 by Andrew Young and Dick England and as a part of its growth strategy, Kleenmaid bought the brand name and selected munfacturing equipment of liquidated company St George Appliances (Hill et al. 2004). This executive report does a comprehensive analysis, formulates strategic options and makes recommendations and develops implementation plan. It also includes answers to questions and issues raised in the case. Table of Contents EXECUTIVE SUMMARY 2 TABLE OF CONTENTS 2 1) THE HISTORY, DEVELOPMENT, AND GROWTH OF THE COMPANY OVER TIME 4 2) IDENTIFYING KLEENMAID ST GEORGE'S INTERNAL STRENGHTS AND WEAKNESSES. 5 2.1) POTENTIAL INTERNAL STRENGTHS 6 2.2) POTENTIAL INTERNAL WEAKNESSES. 7 3) ANALYSING THE EXTERNAL ENVIRONMENT OF KLEENMAID ST GEORGE. 9 3.1) POTENTIAL ENVIRONMENTAL OPPORTUNITIES. 9 3.2) POTENTIAL ENVIRONMENTAL THREATS. 11 4) EVALUATING THE SWOT ANALYSIS 12 5) ANALYSE CORPORATE LEVEL STRATEGY 13 6) ANALYZE BUSINESS-LEVEL STRATEGY. 14 7) ANALYSE STRUCTURE AND CONTROL SYSTEMS...............................17 RECOMMENDATIONS 19 CONCLUSION 20 REFERENCES.....................................................................................20 1) The history, development, and growth of the company over time In 1987, Andrew Young and Dick England established Kleenmaid a 100 % private owned Australian company. The companies main business is to import, manufacture and distribution of high-quality white goods appliances like cook tops, ovens, dishwashers, refrigerators and washing machines. In 1995, Kleenmaid shifted from a wholesale business to direct retailing, to provide customers a store with fully operational appliances where possible purchasers could use the washing machines or cook everything possible with the help of appliances provided by the store.. Its head office in Maroochydore, Queensland, Australia manages its major functions such as sales, marketing, service, financial, administrative and information technology (Hill et al. ...read more.


That is, we need to balance strengths and weaknesses against opportunities and threats. Is the company in an overall strong competitive position? Can it continue to pursue its current business- or corporate-level strategy profitably? What can the company do to turn weaknesses into strengths and threats into opportunities? Can it develop new functional, business, or corporate strategies to accomplish this change? Never merely generate the SWOT analysis and then put it aside. Because it provides a succinct summary of the company's condition, a good SWOT analysis is the key to all the analyses that follow (Pearce & Robinson 1994). A SWOT analysis of Kleenmaid St George has revealed the company's success is in exploiting the weaknesses of the competition. The organization's internal strengths and external opportunities out weigh the internal weaknesses and external threats (Hill et al. 2004). 5) Analyse Corporate level strategy To analyze a company's corporate-level strategy, we first need to define Kleenmaid St George's mission and goals. The information you need to collect to find out the company's corporate strategy includes such factors as its line(s) of business and the nature of its subsidiaries and acquisitions. It is important to analyze the relationship among the company's businesses. Do they trade or exchange resources? Are there gains to be achieved from synergy? Alternatively, is the company just running a portfolio of investments? This analysis should enable you to define the corporate strategy that the company is pursuing (for example, related or unrelated diversification, or a combination of both) and to conclude whether the company operates in just one core business. Then, using your SWOT analysis, debate the merits of this strategy. Is it appropriate, given the environment the company is in? Could a change in corporate strategy provide the company with new opportunities or transform a weakness into strength? For example, should the company diversify from its core business into new businesses? ...read more.


Obviously, in analyzing each case you should gear the analysis toward its most salient issues. For example, organizational conflict, power, and politics will be important issues for some companies. Try to analyze why problems in these areas are occurring. Do they occur because of bad strategy formulation or because of bad strategy implementation? (Hussey 1994) Organizational change is an issue in many cases because the companies are attempting to alter their strategies or structures to solve strategic problems. Thus, as a part of the analysis, you might suggest an action plan that the company in question could use to achieve its goals. For example, you might list in a logical sequence the steps the company would need to follow to alter its business-level strategy from differentiation to focus (Hussey 1994). Kleenmaid St George has around 300 employee of which 200 work in the stores and the other 100 work as Kleenmaid St George personnel. Kleenmaid St George has a practice of rewarding staff with competitive remuneration. Those working in the sales area receive evaluation appliances valued at approximately A$ 5000 and are regularly required to report on the product's performances. Head office personnels are provided wih lunches cooked using company products (Hill et al. 2004). Kleenmaid St George has ambitious growth plans, mainly through expanding its retail network of franchises to gain better customer availability nationally (Hill et al. 2004). Recommendations The last part of the case analysis process involves making recommendations based on your analysis. Obviously, the quality of your recommendations is a direct result of the thoroughness with which you prepared the case analysis. Recommendations are directed at solving whatever strategic problem the company is facing and at increasing its future profitability. My recommendations are in line with my analysis (Hannagan 2002). Conclusion After performing a comprehensive analysis, formulating strategic options and making recommendations and developing implementation plan it can be concluded that very little changes is required for the company. Also answers to questions and issues raised in the case have been included. ...read more.

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