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JB Hi Fi New Zealand Case Study2024

By Jo Cullinane, Massey Business School

Introduction

JB Hi-Fi was established in East Keilor, a north-western suburb of Melbourne in 1974 by John Barbuto (JB), with a mission to deliver a specialist range of Hi-Fi and recorded music at the lowest prices. Barbuto sold the business to investors in 1983 but the name and concentration on range and price leadership remained. The format proved successful, and the investors rapidly grew JB Hi-Fi to 10 stores by 1999 (nine in Melbourne and one in Sydney).

In 2000 JB Hi-Fi was then purchased in a management buy in led by private equity bankers Macquarie Direct Investments, who had further growth ambitions. By 2003 when Macquarie Direct sold its share JB Hi-Fi had grown to have 26 stores and at this point, an IPO was launched, and the company was listed on the Australian Stock Exchange. The period under ownership of private equity was fundamental to JB Hi-Fi as it gave the company the opportunity to refine systems and processes to provide a solid base for future growth.

JB Hi-Fi Group (JBHG) is a public company incorporated in Australia. JBHG is now recognised as one of Australasias largest and most trusted retailer groups (Bavin, 2023). JBHG is structured as a holding company with a market capitalisation in February 2024, of A$7.143 billion (based on a share price of $65.31) and a revenue of A$9.63 billion (see Appendix 1 and Appendix 4). JBHG operates two of Australias biggest retail brands, JB Hi-Fi and The Good Guys. The Group retails consumer electronics, whitegoods, appliances and home entertainment through 322 stores in Australia and New Zealand and online (see Figure 1 and Appendix 2). The company also emphasises customer service, offering expert advice and after-sales support to enhance the shopping experience. JBHG describes itself as having the best brands, huge range, cheapest prices, convenient locations, but most importantly genuine personal service from our experienced specialist staff.

In addition to the strong presence in Australia, JBHG operates the JB Hi-Fi brand in the New Zealand market. JB Hi-Fi entered the New Zealand market in 2006 by establishing a flagship store on Aucklands Queen Street. The move into New Zealand was part of its broader strategy to tap into international markets and leverage its successful Australian business model (e.g. capitalising on synergies and regional market familiarity). As it entered the New Zealand market, JB Hi-Fi (NZ) also acquired 11 stores in the greater Auckland region by purchasing the Hill & Stewart brand. At the point of purchase Hill & Stewart was one of the three largest whiteware retailers in New Zealand and its purchase allowed JB Hi Fi to reduce a like-for-like competitor and to buy into Hill & Stewarts existing supplier relationships. JB Hi-Fi (NZ) only utilised one of the Hill & Stewart retail premises, and it shut the chain, accepted its liabilities and then withdrew the brand entirely in 2010.

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JBHG provides tailored products and services and a procurement hub to a range of Australian entities through its JBHG Enterprise arm, including JB Hi-Fi Business and JB Hi-Fi Education. These parts of the group provided targeted technology provision and solution to SMEs, Enterprise, Education, Government, Retail, Aged Care and Insurance organisations. While this may seem like a standard corporate account service added to a retail business, in fact, the scope of business in this arm of JBHG is wider than evident at first glance, with diverse service examples across a wide spectrum of ICT solutions. For example, holding preferred provider status with the NSW Government is one end of a spectrum and contrasts with being a tailored provider of digital signage and high-tech facility fitouts for retail and hospitality industries at the other end of the spectrum. Or, in a further example, tailored solutions for supporting medical and aged care facilities at one end of the spectrum contrasts with supporting education institutions with BYOD and digital learning platforms (serious fun learning of STEM through gamification) at the other.

A feature of JBHG exclusive to Australia is the operation of the home appliances retailer The Good Guys. JBHG acquired The Good Guys in 2016 and operates it as a separate brand within JBHG in Australia. Prior to that Australian purchase The Good Guys company had already entered New Zealand (in 2008) and ceased trading in 2014, citing the limited returns and small scale of New Zealand operations. JBHG has no plans to re-open the brand in New Zealand.

Strategic Position

JBHGs Purpose is stated as: We connect customers with the products and services that make life better, with the JB Hi-Fi purpose being Help people with better ways to live, learn, work and play, and The Good Guys purpose being Help families live better for less.

JBHGs strategic positioning is also complemented by a sustainability plan (with annual reporting) encompassing the domains of People (staff), Communities, and Our Environment. The annual reporting process is industry-leading and notable accomplishments include (FY 2023 link):

Commitments to gender diversity

Plans for embedding ethical sourcing and supplier evaluationE-waste recycling infrastructure

A comprehensive assessment of the risks and impacts of climate change and accompanying areas of JBHG reducing emissions and sourcing renewable energy sources

JBHG identifies itself as having four competitive advantages that support its strategic position:

1 Scale

#1 player in Australian Consumer Electronics and Home Appliance market

Local and global relevance to suppliers

Strong and engaged supplier relationships both locally and globally363728019875500Large, engaged and diversified customer base across the two brands provides suppliers with the ability to execute promotions and new product launches at scaleYoung customer base drives ongoing brand importance to suppliers to maximise sales of new technology and innovationHigh volume website traffic provides significant marketing opportunities and reachGroup function enables business to drive efficiencies across large cost base2 Low Cost Operating Model

37026853810000Constant focus on productivity and minimising unnecessary expenditure

Highly productive floor space with high sales per square metre

Efficiency of model allows us to:

respond to market price activity and maintain focus on market share; and

compete effectively with traditional competitors and new market entrants3 Multichannel Capability

Focus on providing the customer with an integrated and frictionless shopping experience regardless of their chosen sales channelCustomer choice on how to shop with usIn-store-High quality store locations that provide convenience and easy access

Online-High brand awareness and optimised digital experience drives high traffic through websitesOver the Phone -Convenient and personalised sales experience giving customers ability to negotiate a deal

Fast fulfilment, via in-store shopping, click and collect or delivery from the store network or HDCsAftersales support via any channel provides confidence when buyingNational Commercial business supporting corporate, government and education customers4 People and Culture

Knowledgeable and passionate teams who put customers first and provide exceptional customer serviceStrong, overarching culture that also reflects the individual brand personalitiesDynamic and flexible environment allows us to pivot the business quickly and adapt to any changing market conditionsHighly engaged teams who have a connection with the business

Diverse and inclusive workforce

Unrelenting focus on health and safety

JBHGs strategic focus is supported by a Statement of Values

4451356731000

Competitive Position

JB Hi-Fis competitors operate stores, online retailing and omni-channel models, including in particular, in Australia: Harvey Norman, Kogan, Bing Lee and Amazon; and in New Zealand: Harvey Norman, Noel Leeming, PB Tech, and the Warehouse. JB Hi-Fi is described by its CEO as selling categories of technology and consumer electronics, with its younger, tech savvy customer at the core, but it has a broader appeal to those who were early adopters of new or evolving technology. Our customers, in many of these categories [see these] as essentials, not luxuries, as they are so integrated and important to their lives (Smart, 2024).

JB Hi-Fi strives for market leadership by being both price competitive and focused on customer loyalty. A fundamental part of this approach is the Price Match Policy: We will match the price of an identical product at the time of sale. Negotiable deals are part of our everyday promise. The offer applies to products of the same quantity, condition, and colour in stock at both a competitors store a JB Hi-Fi store at the time of sale. To compete, JB Hi-Fi leverages its competitive pricing strategy and wide product range. The significance of the impact of competitors in the consumer retail market is evidenced by the collapse of electronics retailer Dick Smith in 2016, which caused a notable growth in revenue for JBHG, of up to 11.5% in the same year.

JB Hi-Fi also has a notable sales tactic involving training and incentivising sales staff to make sales through permitting them to offer on-floor discounting or take the deal or haggle with customers if they ask (Barnsley, 2024). Sales staff have access to a go price for each item which is usually lower than sticker and sometimes as low as cost. The staff member can negotiate on the price between sticker and go price with the amount of discount offered impacting their sales commission. The price match guarantee helps alleviate the increasing trend of showrooming in which customers visit the store, select a product they would like but use their mobile devices to search for the same or a similar product at a competitor. But the impact of this tactic is periodic falls in gross profit accompanying increased sales volumes such as in 2022 (Yun, 2022). Similar patterns of high volumes but limited profit growth accompany the opening of new stores where large portions of the inventory are priced at cost plus tax, and this is often illustrated in company results by reports that total sales are up but comparable store sales or comparable sales being steady or down, e.g. First-half sales for JB HI-FI New Zealand, total sales increased by 5.1% to NZD168.7 million, with comparable sales down 1.2% (Smart, 2024).

Staff also have in-hand device access to information about stock that is dated and which the company wishes to clear called Quit-stock (Q-stock). The commission arrangements for Q-stock make it lucrative for the sale staff to shift these items (Murphy, 2016). The rationale for these approaches is both to ensure that stock turns over frequently and to generate customer commitment and brand loyalty. Over-stocking resulting in dated inventory has been a persistent issue within the technology and electronics segment of the retail industry, resulting in JBHG investing in a partnership with Algo-V Net Collaborative Planning, Forecasting, and Replenishment (CPFR) technology which positions supply chain management practices as a strategic function. This gives JBHG confidence to tell investors We're happy with what [stock] we're holding we think it's probably helping us maintain that sales growth at the moment because the quality of stocks good and its fresh and thats resonating well with customers (Wells, 2023).

JBHG facilitates purchases through credit via its partnership with Latitude Financial. The two companies have worked together for 20 years and the JBHG CEO acknowledged that Interest free instalment plans form an important part of our payment offering and provide customers with choice on how they would like to shop with us, both in-store or online. A range of other options exist for Buy Now Pay Later options through companies like Afterpay, Zip, and PayPal. Taken together, these credit options facilitate nearly immediate gratification for in store and online purchases.

Related to leveraging the supply chain is JB Hi-Fis preference to not source products through the grey market or direct importing. Instead authorised local distributors are preferred, in part to guarantee quality, in part because the product will be calibrated for local use, and in part to ensure effective after-sales support. This facilitates JB Hi-Fi being able to offer a Peace of Mind commitment in which stores provide after-sales support and service including return or exchange arrangements, coupled with pre-testing on products to ensure they operate out of the box.

A key aspect of JB Hi-Fis competitiveness is managements strict focus on the cost of doing business, with mature parts of the business maintaining around 13-15% cost of doing business, and parts where there is store growth naturally having higher cost of doing business. This low cost to maintain the best deal for the customer ethos is mirrored by the marketing and aesthetic of the brand and stores the low complexity logo, handwritten signs, team members doing the social media, the layout and feel of the stores, and the lack of corporate uniforms which all combine to give the impression of a customer-focused and flexible approach to pricing and positioning.

JB Hi-Fis experience of the height of COVID was as might be expected on one hand, disruption to in-store sales caused by uncertainty about being in public plus lockdowns, and on the other hand, online sales climbed as people increasingly spent time in their homes, including working and schooling from home. However, a notable feature was JB Hi-Fi being somewhat less impacted by initial replenishment issues than some competitors because of agile supply chains, preferential relationships with key brand owners and lack of dependence on parallel importing. JB Hi-Fis tactic of integrating online and instore parts of the company in a deliberate omni-channel platform with flexible fulfilment options aided customers switching behaviours during COVID. A key innovation resulting from that challenging period has resulted in the use of a partnership with Uber for 60-90 minute last mile fulfilments in Australian metro areas (in addition to store pick-ups, courier and mail options).

JB Hi-Fi (NZ):

Following the success of its first store, JB Hi-Fi (NZ) expanded its physical store presence across New Zealand. The company focused on strategic locations to ensure maximum visibility and accessibility, such as major shopping centres and high-traffic urban areas. By the end of 2010, JB Hi-Fi (NZ) had expanded its footprint to 15 stores across New Zealand, but by 2023, this number had further grown only to 17 stores (See Appendix 2 and 3).

JBHG have consistently complemented the physical storefront presence with heavy investment in e-commerce platforms. In FY22, online sales accounted for approximately 16.5% of its total revenue in New Zealand, compared to just 3% in 2012. This shift not only catered to changing consumer purchasing behaviours but also helped mitigate the impact of the COVID-19 pandemic on physical store sales. In FY22 online sales increased 56.7% to NZ$43.3 million, making up 16.5 per cent of total sales up from FY21s 10.6% (Karen, 2022). However, JB Hi-Fi (NZ) has not had a track record that matches that of the rest of JBHG. The New Zealand market share in the electronics retail segment has been stubbornly lower than might have been hoped for by the high-achieving JBHG, customer satisfaction has not been exceptional (see Appendix 5), and finances have been modest (see Appendix 1).

In July 2022 JB Hi-Fi appointed Tim Edwards as Managing Director of JB Hi-Fi New Zealand. Tim has previously held roles as Chief Sales Officer for The Warehouse Group NZ, CEO for Noel Leeming Group and previous to that, he worked for Harvey Norman Australia. Tims appointment was accompanied by an announcement in JBHGs annual meeting that the Group recently completed a strategic review of the JB Hi-Fi New Zealand business and believes there is a significant opportunity to grow and expand the business. Over the next three years, the Group will be investing in improving the JB Hi-Fi New Zealand customer offer, refreshing the store network, opening new stores and upgrading its online platform. To lead the repositioning and growth of the New Zealand business (Dyer, 2022).

In 2023, JB Hi-Fi (NZ) unveiled a growth strategy intended for implementation over the next five years. The plan encompasses a series of initiatives designed to enhance customer accessibility and experience. These initiatives include the expansion of the retail footprint by opening additional stores, refurbishing the current store network, and strategically relocating existing outlets to more customer-friendly locations. Additionally, the strategy involves establishing two international airport stores. As part of this ambitious plan, JB Hi-Fi (NZ) aims to increase its nationwide presence from 14 to 38 stores within this period, alongside significant enhancements to its online platform. Since then:

A new large-format store was opened in Pukekohe at the Pukekohe Mega Centre in March 2024.

An Invercargill store opened in January 2024 and is located in Invercargill Central Mall.

A second Christchurch store located in South City Shopping Centre was opened in October 2023.

The international airport (departures) duty free stores in Auckland and Christchurch are partnerships with Aelia Duty Free and opened in September 2023.

In July 2023 two of the large existing stores were relocated and were given a refreshed and revised format - the Auckland CBD store moved further down Queen Street and Hamiltons store was relocated to The Base Te Awa from the CBD Barton Street.

JB Hi-Fi (NZ) moved the New Zealand online sales platform to Shopify.

The execution of the plan resulted in JB Hi-Fi (NZ) operations achieving a 5.1% increase in sales for the half-year period to February 2024 compared to a 2.2% decrease in overall JBHG revenue (ONeil, 2024). JB Hi-Fi (NZ) is pressing forward with the plan as is illustrated by the 2024 business strategy:

It is notable that in the half-year results reports to major shareholders JBHG executives stress this period of renewal in New Zealand as an investment. They acknowledge the historically small contribution and relatively low performance of the New Zealand part of the corporation (eg. around 3% of revenues, and low gross margins) but highlight that JB Hi-Fi (NZ) is currently only the 4th largest segment retailer in the NZ market and as a consequence they currently have less influence with suppliers for discounting (compared to in Australia). Thus, the growth phase of gaining the customer base and gaining influence with suppliers has involved opening new stores and running discount events with products consequentially offered at lower-than-normal profit margin: we're very comfortable with how we're trading in New Zealand, particularly the share we're gaining in the period (Wells, 2023).

The renewal of the New Zealand operating strategy has paralleled store growth with new market penetration efforts. For example, in 2023 JB Hi-Fi (NZ) collaborated with 2degrees to launch unique pay-monthly mobile plans. This was a first in New Zealand, but the approach mirrors experiences with Telstra in Australia in that it simplifies the process of selecting a phone, plan, and accessories (starting at NZ$45 per month), featuring unlimited data, complimentary data hours, and limitless calling and texting to all New Zealand and Australian numbers. And new customers are also given JB Hi-Fi gift cards, which can be used in-store or towards the purchase of a phone, smartwatch, headphones, or another accessory. Tim Edwards, JB Hi-Fi (NZ) Managing Director, said: It should be straightforward to select the appropriate phone and plan (ONeill, 2023).

JB Hi-Fi (NZ) have also recently expanded into other new service areas. For example, it has launched a market-leading Trade-In service by working with a reverse logistics company TIC Logistics. This new service allows a customer to interact with a simple self-service online portal to lodge the details of their old item (mobile phone, computer, tablet, smart watch or game console) and to then get an instant quote and then an instant gift card. Another example has been the expansion of the JB Hi-Fi Business (commercial and education solutions arm) from Australia to New Zealand, and a third example has been partnering with the company Geeks on Wheels who now provide complementary set up and support for purchases made at JB Hi-Fi (NZ).

The Strategic Question

As JB Hi-Fi (NZ) progress the plan to improve the performance of the New Zealand arm, a question remains about whether the returns on investment or contributions to JBHG will ever be sufficient to satisfy JBHG executives and major shareholders. The relatively small but geographically dispersed New Zealand market brings challenges that are dissimilar to those experienced in Australia. Sales growth and return on investments in New Zealand are often lower or different than JB Hi-Fi Australias comparable outturns. For example, when Government COVID restrictions closed JB Fi-Hi (NZ) stores in March 2020, the JBHG corporate communications team observed that The JB Hi-Fi New Zealand business does not make a material financial contribution to the group, with FY19 sales of NZD $236 million, representing approximately three per cent of the groups total annual sales, and an FY19 EBIT [earnings before interest and tax] loss of $1.9 million [emphasis added] (Spencer, 2020).

Task

Individual task:

Work by yourself to analyse the JB Hi-Fi (NZ) company using business strategy analytical tools. You may use the case and any publicly available information published up to 15 July 2024.

Group task:

Your group are appointed as external consultants contracted by JB Hi-Fi (NZ) Managing Director and leadership team.

Work in your group to develop a situational and competitive analysis for JB Hi-Fi (NZ) based on combining your prior individual analyses. The situational analysis should clearly state the main strategic challenges the business is facing.

Now offer strategic advice to JB Hi-Fi (NZ) about how to refine or revise the business strategy.

There are no limits to what you might suggest as long as it is:

Based on the situational and competitive analysis,

Specific, reasoned, practical and it has high face validityAble to be implemented within the next 3-5 yearsYour group could recommend market segmentation, expansion, divestiture, product diversification, private labelling, franchising, strategic alliances, cost leadership, differentiation, niche market targeting, vertical integration, etc, etc the choice is for your group to make

Appendix 1 Financial Summary

FY JBHG Consolidated Accounts [A$,000]

Revenue Cost of Sales Profit before tax Net profit after tax Current Assets LT Assets Current Liabilities LT Liabilities Equity

2001 143,384 109,378 2,874 1,799 36,503 50,228 36,503 26,484 20,706

2002 248,802 189,489 8,818 6,170 50,649 54,610 39,898 35,492 29,869

2003 355,835 275,901 12,309 8,593 71,866 60,488 57,248 36,644 38,462

2004 452,357 346,421 19,705 13,806 101,078 69,125 80,944 40,383 48,876

2005 693,943 534,474 31,278 21,836 128,677 104,167 93,684 73,026 66,134

2006 945,821 733,395 38,800 26,846 196,757 130,087 138,344 104,843 83,657

2007 1,281,837 998,478 59,379 41,376 283,744 170,234 209,976 125,200 118,802

2008 1,828,564 1,428,873 93,960 65,085 330,202 205,633 238,493 133,452 163,890

2009 2,327,266 1,823,675 135,493 94,438 426,239 235,412 323,724 108,675 229,252

2010 2,731,320 2,137,146 594,174 118,652 454,508 259,814 363,139 57,887 293,296

2011 2,959,253 2,307,244 652,029 109,695 501,072 266,067 345,938 268,888 152,313

2012 3,127,792 2,467,962 148,373 104,641 534,060 277,089 439,481 187,167 184,501

2013 3,308,396 2,596,194 168,052 116,632 563,652 279,652 442,379 157,097 243,828

2014 3,483,775 2,727,794 182,677 128,447 578,147 281,694 352,193 213,015 294,633

2015 3,652,136 2,863,883 195,532 136,511 616,898 278,155 380,336 171,198 343,479

2016 3,954,500 3,089,100 217,800 152,200 702,400 289,900 446,800 140,800 404,700

2017 5,628,000 4,397,500 259,200 172,400 1,170,700 1,281,600 885,800 713,000 853,500

2018 6,854,300 5,384,100 334,500 233,200 1,210,500 1,281,200 917,200 626,900 947,600

2019 7,095,300 5,568,200 359,300 249,800 1,276,500 1,272,300 927,100 577,600 1,044,100

2020 7,918,900 6,224,800 448,000 302,300 251,500 1,906,500 1,345,900 700,700 1,105,700

2021 8,916,100 6,938,900 720,000 506,100 263,200 1,806,000 1,355,300 591,600 1,308,400

2022 9,232,000 7,151,600 775,300 544,900 1,424,700 1,736,700 1,306,300 574,800 1,280,300

2023 9,626,400 7,443,900 747,100 524,600 1,399,300 1,835,800 1,184,900 630,400 1,419,600

FY JBHi Fi NZ [$NZ ,000]

Revenue Operating EBITDA Segment Assets Segment Liabilities

2010 133,272 1,884 771,270 13,701

2011 144,626 580 819,269 19,313

2012 173,160 4,674 64,366 23,592

2013 167,583 3,860 66,151 20,880

2014 190,927 5,039 69,001 16,987

2015 196,120 3,808 70,632 19,970

2016 215,100 4,500 75,100 19,800

2017 221,000 600 52,200 14,400

2018 213,300 800 51,600 17,100

2019 221,400 1,300 50,200 15,700

2020 211,200 4,900 45,900 39,600

2021 243,600 11,400 47,300 35,900

2022 246,100 11,400 51,200 33,400

2023 267,400 4,900 68,100 45,300

Appendix 2 JBHG Store Growth

FY JB Hi-Fi NZ JB Hi-Fi Australia The Good Guys (Australia)

2000 N/a 10 N/a

2001 N/a 15 N/a

2002 N/a 21 N/a

2003 N/a 26 N/a

2004 N/a 32 N/a

2005 N/a 48 N/a

2006 N/a 66 (18 New) N/a

2007 1+11 H&S 77 (12 New, 1 Closed) N/a

2008 12 (4 New/ 4 Closed) 93 (16 New) N/a

2009 14 (3 New/ 1 Closed) 109 (16 New) N/a

2010 10 (1 New/ 5 Closed) 131 (22 New) N/a

2011 13 144 (15 New/ 2 Closed) N/a

2012 13 155 (15 New/ 4 Closed) N/a

2013 13 164 (13 New/ 4 Closed) N/a

2014 13 169 (Closed 5) N/a

2015 14 (1 New) 171 (2 New) N/a

2016 15 179 (8 New) TGG acquired

2017 16 (1 New) 185 (6 New) 102 (1 New/ 2 Closed)

2018 15 193 103

2019 14 (1 Closed) 196 (5 New/ 2 Closed) 105 (2 New)

2020 14 197 (3 New/ 4 Closed) 105

2021 14 197 (1 New/ 1 Closed) 105

2022 14 199 (2 New) 106 (1 new)

2023 17 (3 New) 202 (4 New/ 2 closed) 106

Appendix 3 JB Hi-Fi Store Locations (NZ)

Appendix 4 JB Hi-Fi Group Share Performance

https://www.marketindex.com.au/asx/jbhAppendix 5 Best-Rated Electronics Retailers (NZ)

https://www.canstarblue.co.nz/appliances/electronics-retailers/

Appendix 6 Retail Sector Sales Growth Year on Year

New Zealand

Australia

https://tradingeconomics.com/new-zealand/retail-sales-annual

Sources

Barnsley, W. (2024, February 14). Haggling over prices at JB Hi-Fi allowed as staff told to take the deal with customers. 7NEWS. https://7news.com.au/lifestyle/haggling-over-prices-at-jb-hi-fi-allowed-as-staff-told-to-take-the-deal-with-customers-c-13584565Barvin, E. (2023, June 23). JB Hi-Fi, Bunnings, BCF: 11 best brands revealed. Yahoo Finance. https://nz.finance.yahoo.com/news/jb-hi-fi-bunnings-bcf-11-best-brands-revealed-005542192.html

Dyer, G. (2022, October 27). Retail rumblings: JBH, SUL. ShareCafe. Retrieved February 20, 2024, from https://www.sharecafe.com.au/2022/10/27/retail-rumblings-jbh-sul/Karen, S. (2022, August 15). JB Hi-Fi hits record A$9.2B sales. Reseller News. Retrieved February 20, 2024, from https://www.reseller.co.nz/article/700706/jb-hi-fi-hits-record-9-2b-sales/Murphy, J. (2016, October 8). Real winners in Dick Smith collapse. News. https://www.news.com.au/finance/business/retail/how-understanding-what-killed-dick-smith-can-help-you-find-a-bargain/news-story/357dbd536bc2e340528e1a3ed1b0c4f8ONeill, R. (2024, February 21). NZ shines as JB HiFis group performance stutters. Reseller News. https://www.reseller.co.nz/article/1309013/nz-shines-as-jb-hifis-group-performance-stutters.htmlONeill, R. (2023, September 15). JB Hi-Fi teams with 2degrees for exclusive plans and rewards. Reseller News. Retrieved February 20, 2024, from https://www.reseller.co.nz/article/708766/jb-hi-fi-teams-2degrees-exclusive-plans-rewards/Smart, T. (2024, February 12). Half year 2024 JB HiFi Ltd Earnings Call (Prerecorded) - Final: http://investors.jbhifi.com.au/wp-content/uploads/2024/02/10007940-JB-Hi-Fi-Half-Year-Investor-Call-120224_FINAL.mp3Spencer, L. (2020, March 26). JB Hi-Fi temporarily closes all New Zealand stores. Reseller News. Retrieved February 19, 2024, from https://www.reseller.co.nz/article/672223/jb-hi-fi-temporarily-closes-all-new-zealand-stores/Wells, N. (2023, February 13). Half year 2023 JB HiFi Ltd Earnings Call (Prerecorded) Final. http://investors.jbhifi.com.au/wp-content/uploads/2023/02/Results-Presentation-2023-Half-Year-Results.pdf

Yun, J. (2022). JB Hi-Fi boss reports 20% profit drop, shares soar: Discover. https://eds.p.ebscohost.com/eds/detail/detail?vid=39&sid=cd2e32d4-251a-4eb4-a848-fdec9fb7b1db%40redis&bdata=JkF1dGhUeXBlPXNzbyZzaXRlPWVkcy1saXZlJnNjb3BlPXNpdGU%3d#AN=DOC7U3VRIK5QMELDNPPOI9&db=azh

Readings

Required:

Elsworth, T. (2023).Understanding Strategic Analysis: A Simple Guide to Choosing, Developing and Implementing Business Strategy. Taylor & Francis.ISBN: 9781003345398

Massey librarypermalink

Publisher ebook sale or rentlinkRecommended:

Cummings, S., & Angwin, D. (2015).Strategy Builder: How to create and communicate more effective strategies. John Wiley & Sons.ISBN: 9781118707166

Massey LibraryPermalink

Publisher ebook sale or rentlinkKaplan, R. S., & Norton, D. P. (2007). Using the balanced scorecard as a strategic management system.Harvard Business Review,85(7-8), 150-+.ISSN: 00178012

Massey LibraryLinkPorter, M. E. (2008). The five competitive forces that shape strategy.Harvard Business Review,86(1), 78.ISSN:0017-8012

Massey LibraryLinkPrahalad, C. K. (1983). Developing strategic capability: An agenda for top management.Human Resource Management,22(3), 237.ISSN:0090-4848

Massey LibraryPermalinkWhittington, R., Regnr, P., & Angwin, D. (2020).Exploring strategy: Text and cases. Pearson.ISBN: 9781292282466

Massey librarypermalink

Publisher ebook sale or rentlinkVideo Podcasts:

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Walton College Supply Chain Management Department(2020b).Porters Five Forces | SCMT 4653link

WaltonCollege Supply Chain Management Department(2020c).Resource Based View | SCMT 4653link

A2 Assessment 2 - Individual Assignment (portfolio)

General Instructions:

The Individual Assignment (A2) is worth 30% of the course grade.

Hand in on Stream by 1 September 2024 11:30 pm. May be submitted earlier.

Working alone, analyse the JB-Hi Fi New Zealand case and create a portfolio.

Select and complete four of the tasks from the list below. To help you perform well, you may hand in five tasks if you would like to (we will mark them all and take the highest four marks).

Combine your tasks into a single document portfolio (use .pdf or .docx) then submit on Stream.

Place the references for each task immediately after the task. Use APA referencing style (https://apastyle.apa.org/).

You are not expected to explain the model/ framework just apply it accurately.

You may do further research into the case organisation and into the industry.

For many tasks it is appropriate to undertake the task by draw the framework diagrams and add extra explanations.

Not all the tasks are as difficult as each other part of the marking will consider the degree of difficulty involved in the task selected.

You may not write this assignment using Artificial Intelligence Generative tools.

As a general guide try to limit your whole portfolio to 15 pages.

Look at the rubric in the next section that explains the criteria we will use for marking.

Important note on the Portfolio

This is an individual assignment but it closely relates to the Group Assignment indeed the group assignment relies on the types of analyses in the tasks.

But this assignment is due later than the Group Assignment.

You are advised to do drafts of the tasks in this assignment between the start of the course and the in-person weekend so that your group gains the advantage of this work from the members being able to be combined together.

There is an inevitable risk that your individual tasks in this assessment will bear a resemblance to other members of your group this is expected and wont be considered plagiarism as long as you each write up your individual assignment separately, do not copy from each other, and you write your submission up in your own words.

Task 1: SWOT and TOWS Analysis

Conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) and TOWS analysis for the case organisation. Provide observations or recommendations based on your findings.

Task 2: PESTEL Analysis

Perform a PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) analysis of the external context and trends of change for the case organisation. Discuss the implications of these factors for the case organisation or its industry.

Task 3: Porter's Five Forces

Apply Porters Five Forces framework to analyse the competitive environment of the case organisation. Provide an analysis of how these forces shape the organisations sector and/or competitive landscape.

Task 4: VRIO Analysis

Use the VRIO (Value, Rarity, Imitability, Organisation) framework to assess the strategic resources of the case organisation. Identify and evaluate the companys resources and capabilities and determine whether these resources provide a source for a sustainable competitive advantage.

Task 5: Ansoff Matrix

Utilise an Ansoff Matrix approach to identify potential growth strategies for the case organisation. Recommend the most suitable strategy based on your analysis.

Task 6: Blue Ocean Strategy

Formulate a Blue Ocean Strategy for the case organisation as if it were to seek to create a new (uncontested) market space.

Task 7: Balanced Scorecard

Develop a Balanced Scorecard for the case organisation. Identify relevant performance metrics across the four perspectives an discuss how the approach could be used to improve strategic performance.

Task 8: Industry Profile

Describe the main features of the case organisations industry including identifying relevant trends of change.

Task 9: Industry Group Map

Create an industry group map for the case organisation to identify key players and their market positions. Determine appropriate factors for this organisation and analyse the competitive dynamics groups within the industry.

Task 10: Value Chain Analysis

Perform a value chain analysis to identify areas for strategic improvement for the case organisation.

Task 11: Power-Interest Stakeholder model

Conduct a stakeholder analysis for the case organisation using a matrix which categorises stakeholders based on their power and interest.

Task 12: ESG Analysis

Objective: Conduct an ESG (Environmental, Social, and Governance) analysis for the case organisation to evaluate its sustainability initiatives and areas for potential further improvement.

A2 Assessment 2 Individual Assignment (Portfolio) Marking Rubric

Exceptional

A+ to A- Proficient

B+ to B- Adequate

C+ to C- Below Expectation

D Poor

E

1. Content Knowledge and Depth 30% Outstanding understanding of the subject. Excellent grasp of advanced topics. Solid understanding of concepts. Effectively communicates. Comprehensive knowledge base. Covers fundamental concepts adequately but there are some areas lacking in depth or has inaccurate parts Has errors or misconceptions, indicating a lack of foundational knowledge. Fails to demonstrate an understanding of key concepts or misses them out.

2. Application of Concepts, Critical Thinking and Analysis 40% Demonstrates ability to solve problems and/or translate knowledge into applications. High level of critical thinking. Good understanding of how theoretical knowledge can be applied. Demonstrates a capacity for thoughtful analysis. Demonstrates basic application and critical thinking skills, but with limited depth in the analysis. Lacks sophistication. Lacks analysis, evaluation, or creative insights, or higher order thinking skills. Fails to apply concepts appropriately or has significant errors.

3. Communication, Presentation, Precision and Persuasion 30% Exceptionally clear and logical. Flows seamlessly. Presented without errors. Appropriate referencing. Presented logically, but some mild issues (eg. clarity, grammar, spelling, referencing). Sometimes challenging to follow but some parts lack clarity, and/or have noticeable errors. Referencing may need improvement. Sometimes difficult to navigate. Numerous errors in grammar, spelling, or referencing.

Task Task Task Task Task

Content Knowledge and Depth 30% Application of Concepts, Critical Thinking and Analysis 40% Communication, Presentation, Precision & Persuasion 30% Total per Task Grade for Portfolio (averaged using the best 4 out of 5) Note if you do more than 5 tasks, we will only mark the first 5 in the portfolio.