Comparison between Lion & Woolworth-Free-Samples for Students

Question: Discuss about the advantages and disadvantages of using Social Networks in Business. Answer: Introduction This report depicts the role of social media in the business organizations and their positive and negative impact in the business organization. In order to prepare this report the selected organizations are Lion Nathan and Woolworths Limited two Australia based companies. Woolworths Limited is a retails industry and Lion is a food and beverage providing business both of the companies serves online as well as online in Australia and they are willing to serve their products and services within and out of Australia as well. For gaining measurable success from the competitive marketplace, different strategies have been adopted by the business organizations and based on those the companies are currently gaining profit. This report represents the objective of the project, the project scope. However, based on the literature review the financial stability and the profitability of the companies are also illustrated in this report. After identifying the risks associated to the companies it is necessary to identify proper risk mitigation approaches. Project objective To identify the role of social media in the developed business strategies of Woolworths Limited and Lion Nathan To identify the risks and risk mitigation strategies associated to Lion and Woolworths Limited To compare the financial stability and profitability Project scope After successful completion of the project it will be able to deliver the following In Scope: The advantages and disadvantages of social media in the business organization (Lion Nathan and Woolworths Limited) The risks and risks mitigation strategies associated to the organizations The comparison between the financial stability and profitability of both the companies Out scope: The administration details are not analyzed in this report The organizational structures are not considered The offline campaigning aspects are not analyzed in this report Literature review Role of social media in business organizations The social media networking array includes Titter, YouTube, Facebook, Google Plus etc helps to navigate different beneficial strategies for the business organizations. In order to promote the business throughout the world the social media play very important role. Not only this, but the social media acts as a marketing lead for the businesses also (Gitman, Juchau and Flanagan 2015). In order to develop the existing consumer base and to grab huge number of consumers from the marketplace the social media is very much important. It helps to serve a much better service to the consumers. Apart from this, marketing is also done with the help social media. It provides several opportunities regarding marketing products and service as well. For advertisement purposes also social media is very helpful. The audiences who will follow the company online website through the social media could gain information regarding the current status of the companies. Through the help of blog post the companie s will be able to deliver their business status to the consumers. Real time updates are also available in social media application (Chandrasekaran and Raghuram 2014). The social media will be able to hit the clients through advertisements. The audience could communicate much frequently through the social media. Even if any changes occur then, the schedule changes updates will be easily reached to the consumers through the help of social media. However the business organizations could both positively and negatively impacted through the social media applications. The advantages and disadvantages of social media in the business operations and functionalities are elaborated below. Advantages of social media on business Achievement of valuable consumer insight: In the real time several data related to the consumers could be generated. The feedback of the consumers is posts in the social media like Facebook, twitter, Instagram etc. From the social listening the daily activities of the consumers can be detected and with their precious feedback the consumer insight can be gained (Putra 2013). In addition to this, the consumers could efficiently communicate with each other though the independent social media platform. Increment of brand loyalty and awareness: Through the help of social media application the consumers can connect themselves with the companies. The retention of the consumers and brand loyalty helps to enhance the brand loyalty of the companies and even the awareness are also enhanced with the help of the social media application. Generation of higher converting leads: With the help of regular interaction the companies will be able to gain huge number of consumers throughout the world. The amount of sales also gets enhanced and this is referred to as one of the most effective and efficient decision making direction providers (Bartman 2014). The companies who sales their products through online platform, are found to achieve much sales revenue than the offline service providers. However he selected organizations named as Lion and Woolworths Limited use both the online and offline selling platforms. Providing high consumer experiences: Due to frequent communication the consumers gain extreme high experiences from the social media application. Search for competitors: Social media gives opportunity to monitor the key information regarding different business organization those, who are biggest competitors to the nominated companies named as Lion and Woolworths Limited. Disadvantages of social media on business Account management: As the social media provides effective business benefit to the consumers thus proper management of the website is also very much necessary from the consumers and business aspects (Nakandala Lau and Zhao 2017). Social media account is required to be managed on time however if the developer fails to update the site properly then, the security, cost and time everything will be affected. Risks: Security risk is referred to as one of the most effective reasons behind the disadvantages of social media. If the system developers fail to adopt the accurate risk mitigation and security aspects then, several marketing associated risks will occur. Rather, the management team should check the updates not only regular basis but also at a timely manner, to avoid the risks associated to consumers comment (Arli et al. 2013). In addition to this proper control management in terms of virus and hijacking issue control, are required to be adopted by the management authorities of the organizations. Comparison of the financial stability and profitability of Woolworths Limited and Lion Nathan After analyzing the financial ratio of the company it has been found that, liquidity ratio, profitability ratio, capital structure ratio is the processes those are widely used by Woolworths Limited and Lion Nathan. Through the help of current asset and the current liabilities the liquidity ratio of Woolworths Limited is calculated. The current asset of the company is $7660900 and the value of liability is $9168600 thus the liquidity ratio of the company is 0.80 (Bajracharya and Hastings 2015). According to the trends on ROI, it has been found that the, operating profit of the company is $2146000 and the entire equity value is $25336800. The net profit margin of the company is $3067700. On the other hand, from the global financial report of Lion Nathan it has been found that, the business delivered the revenue of $687.4 and on the prior corresponding of the consequences. The prior corresponding period is enhanced by 6%. More than half of the beer market is covered by Lion Nathan (Safrudin et al. 2014). The Australian beer market is increased up to 6.3 % due to the delivery of different kinds of beer in the marketplace. The company has fallen from the $9.45 in January. However, currently due to the adoption of Information system he market growth is increased Figure 1: Market Growth model of Woolworths Limited (Source: Nakandala, Lau and Zhao 2017, pp-4182) Risks and its combat strategy Risks associated to Woolworths Limited and Lion Nathan After analyzing the market and financial stability of the companies it has been found that, both of the companies are facing internal as well as external risks. The external environment of the company of Woolworths Limited is negatively impacted due to its weak market strategy. The higher product prices of the companies are also restricted through the Australian government (Das Nair and Dube 2017). However, they fail to meet the changing needs of the consumers. Due to the presence of multiple business options, the company fails to serve the suitable business strategy. Additionally, extreme completion level, the company is significantly getting affected. On the other hand, the products of Lion like prima tropicool and other fruit drinks are damaging the brand image of the company. The volume is getting declining for the Lions Beer, spirit and wine as well. Due to high level competition in the beverage market, the trust level is getting deficit. As the company is unable to serve their products outside Australia thus, due to lack operation limitation the revenue of the company is getting affected. Coca Cola, Frucor are the biggest competitors to Lion. Risk mitigation strategies developed for Woolworths Limited and Lion Nathan Risk mitigation strategies in Woolworths Limited Risk mitigation strategies in Lion Nathan Through periodic review the risk profile of the company are adopted. Risk aware culture should be adopted and risk management and compliance committee are also developed to mitigate the material level business risks of the company (Maimela 2016). In order mitigate most of the issues associated to Lion the company has developed proper team management and compliance programs. Divisional leadership and managers are required to be adopted by the management authority to drive the risk ware culture if the companies and developing the responsibilities of the companies. For ensuring the management the company has developed due diligence procedure to corporate the mergers and acquisition. In addition to this the legal, financial treasury and the tax associated issues are also mitigated with the help of business leadership team development. Instead of upward and downward communication approaches the company has developed open communication in order to make the employees feel free to communicate with the managers of the company (Dakora and Bytheway 2014). Not only this, but also proper monitoring and collaboration aspects also developed by the management authority of Woolworths Limited. External audit is another important factor adopted by the Lion Nathan company to mitigate the control level issues and change management issues. Besides, the offline service the company has adopted online services too, to deliver their services within and outside Australia regardless of the location of the clients and access time of the consumers as well. For quality improvement different technical level services are also adopted by the company. Even the specified risk area of the company are identified and based on that certain tool and strategies are developed in Woolworths Limited. The different aspects those are considered for developing the risk management strategies for Lion Nathan, include stakeholder reporting, product integrity and information system as well (Jones 2014). The company has implemented Information System for developing their existing marketing scheme and strategy. With the help of information system the Supply Chain Management (SCM) and Customer Relationship Management (CRM) system the overall operation of the business organization will be completely mitigated. Conclusion From the overall discussion it can be concluded that, social media plays important role in the business organizations, for promoting their business within and out of Australia. In order to understand the role of social media it is very much necessary to understand the business strategies and after understanding the role of business strategies, how the social media is directly and indirectly associated to that is also represented in the report. Due to frequent economic inflation in the market the profitability of the organizations are also affected both positively as well as negatively. In order to represent the report, Lion Nathan food and beverage serving companies and the revenue status of Woolworths Limited are compared and demonstrated in this report. 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