One of the key strengths from which Westfield derives competitive advantage is its human resources program. One of the key competitive drivers in the industry is knowledge, so Westfield has made the development of knowledge, information and wisdom a cornerstone of its strategy. The company not only strives to identify, attract and hire the best talent, but it also has extensive programs in place to bring that talent along. There is a detailed training program, for example. The goal of Westfield's human resources strategy is to grow and nurture key staff members. The firm believes that wisdom derives from experience, and therefore seeks to have executives with a significant amount of work experience and a long tenure with the company. Supporting the human resources strategy are tactics of open communication, fostering diversity, and encouraging the free flow of ideas at the managerial and executive levels.
Another key strength of the Westfield Group is its high occupancy rates and long-term leases. These help the company to weather economic downturns. For example, the current weakness in the U.S. market has not affected the Westfield Group significantly because its properties have a high occupancy rate, currently at 97.3%. Customers are generally locked into long-term leases, ranging from 5-7 years in Australia to 10-15 years in the United Kingdom. This provides stable cash flows that help insulate the company from the economic shocks to which they, being dependent on the retail sector, would otherwise be exposed.
Another strength is the company's vertical integration. Since their very first property in Blacktown, Westfield has undertaken the design, the construction and the operation of their properties themselves. As a result, they have a high degree of control over their operations. This allows them to stay at the cutting edge of developments in the mall industry, something that has afforded them a competitive advantage since the earliest days. It also allows them to cover their risks more effectively. For example, they are able to establish anchor tenants before beginning construction. As a result of vertical integration, Westfield is able to consistently complete projects on time and on budget, giving them a significant source of competitive advantage.
Lastly, Westfield derives strength from its capital management. As of the end of 2007, the company had $7.7 billion in liquidity, which the company uses to invest, both in new property developments and on the open market. This allows them to engage in income hedging to help protect their investments from foreign exchange fluctuations. The group's expertise in capital management has allowed them to make that function a third component of their business.
Westfield has few weaknesses. One is their lack of diversification. Although they are invested in four countries, 92% of their capacity is located in either the United States or in Australia. This lack of geographic diversification is not unusual in the industry, but it does increase the risks inherent in Westfield's operations. Weakness in the UK and U.S. markets to this point has been offset by strength in Australia, indicating some operating hedge, but overall two markets is insufficient to provide strong insulation against market fluctuations. Moreover, the company only operates in one business. They are very good at retail property management but are exposed to declines in this business. Moreover, the Australian market is becoming saturated, which compromises Westfield's ability to grow business domestically.
Another weakness is found within the composition of their Board of Directors. Although the most important functions are well-represented, there is little geographic representation. Although over 50% of their capacity is located in the United States, only one of thirteen Board members is American. Ten are Australian. This does not reflect the structure of the company's operations nor does it accurately reflect the importance of the U.S. market to the company's success. As a result, Westfield does not have adequate oversight of American operations, because they do not have on their Board enough directors with sound knowledge of the U.S. market.
Lastly, the company appears to suffer from limited innovation potential. There is little room for upward mobility in the company, with the top positions being taken by sons of co-founder Frank Lowy. This can be a hindrance to attracting top personnel; as such talent will recognize that career potential is limited. Westfield appears to provide strong opportunities to learn about the retail property management business, but with the top positions seemingly locked up by family, it is difficult to imagine that the company will be able to execute its human resources strategy to its fullest potential....
Flight View, the company behind mobile applications that track real-time flight information, polled 2,600 travelers on what they want on-the-go while shopping in airports (Rogers, 2014). Market research anthropologists who track cultural trends identified extensive changes to non-aeronautical services located in airport terminals (Mattlin & Currie, 2011). Airport retail shopping has changed dramatically over the past decade, morphing into airport cities or airport town squares (Clifford, 2011). The range of
" (Qantas Airways Limited and Controlled Entities - Preliminary Final Report, 2008) In July, 2008 Qantas reported that it intends to "eliminate 1,500 jobs world-wide and it shed plans to increase flying capacity as it continues to battle high jet-fuel costs." (the Wall Street Journal, 2008) in addition, the plans to hire 1,200 people have been canceled. Qantas will also be retiring 22 aircraft from its fleet and call centers in
" Hence, Ayan adds, with laughter, the lives of people with elevated levels of cortisol might be saved. Arguably that's a bit of a stretch, but for the purposes of his article Ayan is justified in using it. Keeping anxiety "at bay" through humor is the sum and substance of a 1990 study conducted by psychologists; 53 college students were told they were going to get an electric shock in 12
Integrated Marketing Communications The way people are viewing, comparing and even purchasing insurance is changing. More and more customers are using the internet to compare and buy insurance. Westfield Insurance and its agents and agencies need to understand this trend this can open up a whole new group of potential customers especially the young generation. For this purpose, Westfield and its agencies need to adapt their marketing and communication channels to target
LVMH Apart Recessions come and recessions go, but luxury never goes completely out of style, even if sales were subdued in the early 2000's. Some individuals with deep pockets and high ambitions are always willing to spend prodigiously on common items like handbags and watches, provided they get what they want in return: quality, fashion and the envy of their friends. While the past couple of years have been difficult
In this regard, Meyers concludes that, "As for Flory, environment has been too much for him, for he is not really alcoholic or crapulous by nature, and he regrets it when a girl from England arrives to stay at Kyauktada; she is a poverty-stricken little snob on the look-out for a husband, but he has not seen a spinster for a decade, and he succumbs on the spot whereupon
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now