Assessment – 2 Strategic Analysis of Myer
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Assessment – 2 Strategic Analysis of Myer


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Apply strategic management theory into practice; 

Development understanding of theories, concepts and models to support operations frm a  strategic perspective; 

Identify and analyse strategic issues; 

Assess organisational strengths and limitations; 

Build awareness of ethical and social considerations for strategic issues; 

Evaluate information in support of the development of a case study report; and 

Gain global perspectives in the analysis of strategic issues.  


Refer to the Hubbard paper on how to analyse a case study. Use it as the basis for analysing the case  study provided. Be sure to integrate your understanding of the theory from the subject. It is  expected that you will use a minimum of 20 academic journal references in putting your case study  report together. Be sure to include a one-page executive summary, as well as formal document  sections.  

You are expected to produce an academic report that includes an executive summary, formal  document sections such as a table of contents, introduction and conclusion. As this is the capstone  (or equivalent) subject, it is expected you will be very used to and comfortable with using external  sources to validate your thinking and to demonstrate substantial wider reading.  

Students should use the brief to inform what is required in the assignment and the following rubric  to inform the standard of work required to earn your desired grade.


Executive Summary

Myer is a 117-year-old Australian iconic departmental store chain focusing on upscale products. In 2017, it faced a 20-year decline attributed to stagnant market place, diminishing consumer preference towards big box retailers, delay in monetizing online retailing and ultimately the reduction in sales. To understand the strategic issues and the opportunities prevalent at Myer, environmental analysis is conducted. The macro environment analysis of the PESTLE factors reveals that government policies related to industry norms and taxation, higher debt savings of consumers, lower disposable income, changing consumption patterns, growth in internet connectivity, need for disclosure compliance and concerns for environmental sustainability has an influence on Myer's performance. Industry analysis through Porter's five forces model indicates the presence of severe competition which is a major threat for Myer. However, favourable factors include Myer's sheet size, brand recognition and economies of scale. An analysis of its financial results indicates the increase in debt financing, which impacts its liquidity. However, higher sales when compared to investments show its operational performance. Though Myer has adopted the New Myer strategy to develop a lean operation, it is yet to achieve its results as evident from the value chain analysis of internal operations. Technology is widely adopted across its operations to improve omni-channel presence which has impacted in-store sales. The VRIO framework shows that its geographic presence, customer loyalty programs and aesthetic appeal are advantageous. Due to its decline in sales and the lack of incremental success from its New Myer strategy, it is in a defensive mode to respond to market scenario. Based on these analyses, strengths, weaknesses, threats and opportunities for Myers are determined. To overcome the identified strategic issues, Myer has to invest significantly in action plans to boost its performance in trending areas.



The success of an organization relies on its ability to steer through turbulent environments and perform better than its competitors. Strategic analysis assists in assessing its position, relative to external and internal environments to improve its efficiency and effectiveness with resource allocation and capacity utilization (Gluck, Kaufman, & Walleck, 1990). In this report, strategic analysis of Myer, an Australian department store is carried out. The external environment is analysed through PESTLE and Porter's five forces, the internal environment is analysed through value chain analysis, VRIO framework is used to determine its competitive advantage and SWOT analysis is conducted. Further, an organizational analysis in terms of strategies adopted, organizational performance and challenges encountered are discussed. Finally, recommendations are made to resolve the strategic issues.

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