Competitive Strategy Tan Framework Organisation

Question: Describe about the Competitive Strategy for Tan Framework Organisation. Answer: Introduction The Adaptation Aggregation Arbitrage (AAA) framework takes about the various aspect of tan organization. The adaptation talks about the adapting to the changes of the environment and the market. The adaptation will help the organization to stay ahead of the competitors. The aggregation talks about the profit made by an organization. If the profit is more than the production rate of the organization, then the aggregation is said to be good for the organization. The merging and the acquisitions of an organization can be considered under arbitrage. If the organization has merged with another organization or has sold certain parts of the company for the enhancement of the business, then it will help in understand the arbitrage of the organization. In the present write-up, four companies will be evaluated on the basis of the AAA framework. The companies, Wesfarmers Woolworths have been chosen to measure the AAA framework of the retail industry. On the other hand, Zicasso and Australia One have been chosen to get idea about the AAA framework of tourism industry. The companies will be studied individually on the basis of AAA framework. The positive and the negative aspects of the organizations as analysed in the AAA framework will give an idea about the current position of the organizations as well as the industry. Retail industry Wesfarmers Adaptation The adaptation by Wesfarmers mainly focuses in the stakeholders. They have deiced to focus in the suggestions of the stakeholders to carry out they business. the list of stakeholders for Wesfarmers are Employees, Customers, Contractors, Suppliers, partners in business, Government andregulatory authorities, Local communities, Neighbors, Unions, Media, Industry associations, local Indigenous communities and Traditional Owners and Interest groups. They have adhered to the Global Reporting Initiative (GRI), where the organization mainly focuses on the reports that will help in enhancement of the business as well as the stakeholders (wesresources.com.au 2015). Thus, they have focused on the people who are associated with the organization. The organization has decided that better than focusing on the products, if they focus and adapt to the demands of the stakeholders they will be able to gain more from the market. They will be able to get an idea where they are underperforming and can wor k on those areas. Aggregation Wesfarmers suffered a loss in net profit in the year 2016. It has been seen that the net profit of Wesfarmers has been down by 83.3 percent, which amounts to a fall of $40.7 million (NewsComAu 2016). Even though, the organization has been able to gain in the revenue, which has been up by 5.7 percent, a total of $66 billion. The final divided of the company is 95 percent, which shows a downfall of $1.11. Even though Coles and Bunnings have showed a strong sale, target has been the weak performer put of all. Thus, Wesfarmers suffered a negative economic aggregation. The production is high, yet they have not been able to gain the profit in the similar manner. Arbitrage The arbitrage by Wesfarmers has helped the organization not just in enhancement in business in the homeland but also in the international locations. Wesfarmers is buying Homebase, a part of home retail group. The deal between Home Retail Group and Wesfarmers has been sealed by an amount of 340 million (Armstrong 2016). Argos, which is a brand owned by home retail group, will be now bidden by Sainsbury. On the other hand, Wesfarmers has asked Home Retail Group to remove the concessions that are given by Argos from the stores of Homebase. Removal of Argos from the stores of Homebase will reduce the profit of Argos by 10 million. For Wesfarmers, the buying of Homebase will be huge step towards spreading its business in the UK market and acquire more such business in the UK market in future. Woolworths Adaptation Adaptation to the natural environment is the best possible method that any organization can adhere to. Woolworths understood the importance of adaptation. The managers of Woolworths understood that if they pick up a change early it would help in enhancement of the business. They focus on fresh production of the baked items, the diary products and the delicatessens. They took initiative to reduce the labor components as well. Woolworths has adopted the technological developments so the labor components can be reduced in the distribution system. The technological system has helped Woolworths to save $4.5 billion in the operations (Sykes and Crawford 2012). Thus, it can be seen that adaptation is not limited to the environmental perspective, it is also applicable to proper management of the employees as far as the human resource management is concerned. Aggregation As far as the aggregation is concerned, Woolworths suffered a loss in the years 2016. The organization has suffered a loss of $1.235 billion (Chung 2016). The amount has resulted in a loss of 40.8 percent. The loss that Woolworths have faced in the year 2016 has been the highest loss for the organization in the past 23 years. The calculation of profit that has been dine in the first 52 week of the years 2016 has shown a steep downfall from the profit that has been gained in the year 2015, which had amounted to $2.146 billion. Arbitrage Arbitrage cannot be achieved just by buying new business or merging with any new organization, the organization should know when to sell the assets to gain the arbitrage. Woolworths sold the property of Masters Chain and gained $1.5 million in the home improvement department (Pash 2016). However, Woolworths have said that it will shift the employees who are working for the Masters department in other departments of the organization. If they are unable to provide the job, the will give full redundancy. Due to the business with masters, Woolworths have suffered a loss of $972.7 million in the starting of the financial year. Thus, it can be seen that arbitrage can involve selling for the enhancement of the business. The selling of Masters Chain can be termed as the economic arbitrage. The loss suffered by Woolworths in the starting of the year 2016 has resulted in the negative economic arbitrage of the organization. It can be called negative mainly because of the fact that it has sold t he product. Tourism industry Zicasso Adaptation The adaptation by Zicasso goes out from the real world and enters the world of fiction to attract the tourists. Since the starting of 2016, people were talking about the sixth season of game of thrones. The immense popularity of the show has made Zicasso to launch its new tour package designed after the game of thrones saga. The new tour package is for duration of 12 days and is named Gameof ThronesSeason 6 TourofSpain (Robb Report 2016). It will be a treat for the fans of game of throne and the lovers of history. The tour will take the tourists to the locations where then filming of Game of Thrones has taken place. Zicasso has focuses on innovation while thinking about this type of innovation in the market. The tour package has been priced $8,399 for each person and the bookings will be done based on double occupancy. Arbitrage The arbitrage by Zicasso can be understood when Zicasso merged with select Italy to give the customers a new level of luxury travel (Travelagentcentral.com 2016). When on hand, Zicasso specializes making personalized travel packages for the customers; on the other hand, Select Italy specializes in the online travel packages. The arbitrage by Zicasso is expected to give the customer the luxury of personalize tour packages along with the ease of online booking. At times, the online users get confused while booking for the tour packages, the expert advice will help the customers to get the most out of the tours by booking online (Ruhanen, Mclennan and Moyle 2013). It will help both Zicasso and select Italy to excel in their domain and satisfy the customers with the help of each other. The decision by Zicasso will be helpful in future and make their online presence strong in the market (Hughes 2013). Aggregation Zicasso specializes in personalized tour packages for the customers. As a result, it has been prepared with all kind of tour packages that will suit the taste and preference of the customers. Hence, the production rate is high for the organization. In spite of high production, one of the websites has reported that the daily income of Zicasso is $ 227.00 (Statvoo.com 2016). Thus, it can be seen that the aggregation rate of Zicasso is quite high. It has been able to keep up a strong daily income in spite of producing different kinds of products as per the demands of the customers (Morrison 2013). Australia one Adaptation Australia One may not be as famous as Zicasso in the market of Australia, yet it is not behind when it come to adaptation for the growth of the business. Even though the main base for business is in Australia, yet it has as strong network in the United Kingdom and takes proper measures to keep its base in the United Kingdom strong. It has assigned a tour operator in both New Zealand as well as Australia. It has kept one of the team members who is responsible for looking after the business in Italy, France and the United Kingdom. The member is responsible to arrange for stalls and promote the company in any travel fair. The member is responsible to meet the customers from Europe. The member has helped Australia one to adapt to the taste and preference of the customers in Europe. Aggregation Australia One has made its presence felt not only in Australia but also in other continents. Even though, it has strong contenders, the long list of suppliers is the proof that the aggregation rate of the company is high (Dredge and Jamal 2013). Arbitrage Australia One makes sure that their customers get the best of experience and hence, the arbitrage of Australia One says that they have tied up with some of the best suppliers in the market. Australia has a list of preferred suppliers, which helps the organization to satisfy the customers (Australiaone.com.au 2016). Some of the preferred suppliers are: Choice Fitzroy Island Intesislander AATkings Coral Sea Gray line Sealink De Vere Hotel Captain cook Cruises Down under tours Mantra group The partners of Australia One will be helpful for the organizations to stay ahead in the competition (Mok, Sparks and Kadampully 2013). The tourism industry is already going strong (Ruhanen and Shakeela 2013). As a result it has become important for Australia One to maintain a strong arbitrage. Conclusion The write-up evaluates four companies on the based on the AAA framework. The AAA framework helped in understanding various aspects of the companies and the way those companies are working in the market of Australia. It has been seen that retailers Wesfarmers and Woolworths adapted themselves as per the stakeholder and sustainable business respectively. As far as the aggregation is concerned, both Wesfarmers and Woolworths have suffered a loss in the year 2016. When it comes to the arbitrage, Wesfarmers bought Homebase from Home Retail Group and Woolworths sold Masters Chain. Hence, it can be seen that both buying and selling can help an organization to enhance their business. it can be concluded that the aggregation is negative for the retail industry. On the other hand, the retail industry has adapted well and have progressed well with the arbitrage. The adaptation power of Zicasso and Australia One is high when on one hand Zicasso adapted tom the fictional world and gave the tourists the taste of game of thrones, on the other hand, Australia One sends its employees to Europe to adapt to the taste and preference of all kinds of people. The arbitrage is also strong for both the organizations. Zicasso tied up with the Select Italy to give the customers the ease of online booking and luxury of personalized tours. Australia One has some of the selected suppliers who help the organization perform well in the market. The aggregation rate for both the organizations is high and hence, as per the AAA framework the tourism industry is going strong in Australia. References Armstrong, A. 2016.Home Retail in 340m talks to sell Homebase to Australia's Wesfarmers. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/12098432/Home-Retail-in-340m-talks-to-sell-Homebase-to-Australias-Wesfarmers.html [Accessed 9 Sep. 2016]. Australiaone.com.au, 2016. Australia One - Australian New Zealand Inbound Tour Operator Wholesalers Wholesalers Testimonials. [online] Australiaone.com.au. Available at: https://www.australiaone.com.au/Wholesalers/WholesalersTestimonials.aspx [Accessed 12 Sep. 2016]. Chung, F. 2016.Woolworths unveils $1.235 billion loss. [online] NewsComAu. Available at: https://www.news.com.au/finance/business/retail/woolworths-unveils-1235-billion-loss/news-story/5a6cd1f33658f536b47d95b305c5bc67 [Accessed 9 Sep. 2016]. Dredge, D. and Jamal, T., 2013. 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