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David Jones

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STRATEGY ANALYSIS OF DAVID JONES – JUNE 2014
INTRODUCTION

The purpose of this report is to identify and evaluate the strategy of DJs. Analysing the external environment, looking at what resources and capabilities give the organisation its completive position, assessing the organisations strengths and weakness and looking at DJs long term sustainability plan to see what recommendations can be advised and considered in the coming years as the organisation faces new challenges in the ever changing retail and financial sector.

ENVIRONMENTAL ANALYSIS

The Business environment is ever changing for DJs. The Business focus is its department stores and financial services. The business environment is anything that affects strategies, performance and decision-making in the business. It is vital that an external and internal business environment study and investigation is carried out before formulating the company’s position and direction to remain sustainable long term. Reviewing the Macro environment, this consists of issues at work that will directly affect DJs activities and markets in which DJs competes in. The PESTEL model will be used to analysis the macro environment effects DJs is currently facing; this will allow the company to predict situations and unforeseen circumstances that may occur in the future. (please refer to Appendix A for diagram)
Economic Factors
The most important economic factor in the retail industry that affects DJs is interest rates. The cuts of interest rate by the Reserve Bank of Australia and the uncertainty caused by the continued financial uncertainty in Europe and the US (E), as mentioned in DJs annual report (2012), have caused many difficulties for retailers in the past years. The interest rate was reduced by the Reserve bank of Australia from 7.25% in March 2008 to 3% in April 2009. And for current year, The

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