Contents

Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................2
Value chain..................................................................................................................................................3
Procurement............................................................................................................................................3
Technology development.........................................................................................................................4
Human resource management..................................................................................................................4
Marketing and sales.................................................................................................................................4
Customer service.....................................................................................................................................5
Macro environment analysis........................................................................................................................5
Political...................................................................................................................................................5
Economic.................................................................................................................................................6
Social.......................................................................................................................................................6
Technological..........................................................................................................................................6
Environmental.........................................................................................................................................6
Legal........................................................................................................................................................7
Porter 5 force analysis.................................................................................................................................8
Threat of new entrants.............................................................................................................................8
Threat of substitutes................................................................................................................................9
Bargaining power of buyers.....................................................................................................................9
Suppliers bargaining power.....................................................................................................................9
Rivalry amongst competitors...................................................................................................................9
Woolworths Current Strategy....................................................................................................................10
Identification of the 3 New strategic Objectives........................................................................................11
Recommendation.......................................................................................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Executive Summary
Woolworth supermarket chain is a set of stores which is a division of Woolworths group. One of
the largest supermarket chains in Australia which has around 995 stores which constitute over
100,000 employees, distribution centers and offices across Australia. The aim of this report is to
infer more attention into Woolworths in detail and testify the stakeholders in their primary
activities and support activities in Woolworth organization. The activities on regard to support
consist of infrastructure, human resource management, procurement etc. In this report, there will
be an assessment of macro environmental analysis (pestle) to determine the external factors
which could directly or indirectly affect Woolworth in the future. Additionally, Porters five
forces analysis which also determine Woolworths competition in the marketplace. Additionally,
analysis of VIRO, SWOT in determining the strategy and ultimately supporting the company
processes in increasing the profits and long-term sustainability will be assessed over here.

Introduction
Woolworth is very well known for its name due to the fact from working closely with Australian
growers and suppliers which has its own records in provision of 100% quality product at its best
prices. It is well known for Australia’s fresh food. (Woolsworhs Group Limited,n.d.) Their
products are being brought in by food experts and tested within operation centers and sent into
the market providing efficient home shopping and delivery services. They constitute their own
unique labelling in bringing quality assumptions for the customers. One of their private labelling
are essentials and macro essentials which covers every household product and groceries. They
constitute a wide range of food, and different customer favoring products. (Woolworths.com.au)
Value chain

Human resource management

Firm infrastructure

Procurement
Margins

Technology development

Inbound Services Marketing

Operations
logistics and sales

Procurement
Producers who are engaged in the Woolworth play a vivid role in the procurement process.
Producers bring in directly from the relevant producers to ensure product quality and quality
assurance. The organization does go through strong inspection and checks the quality of each
product individually, which ensures their quality assurance is very important. Procuring the
highest quality of food at their optimal prices eventually creates strong ties with the leading
farmers. They do not have any intermediaries during the purchase of products, it is only the
delivery team which acts as the intermediates in transportation. (Woolworth Group Limited n.d).
Technology development
Plays a great role in online shopping experience where customers do not have to engage
additional time in supermarkets which ultimately creates strong obligations and long- term
consumers do get attached with the supermarket. There is more evidence that Woolworth has
invested in digitalizing the supermarket to the next level, especially in the operations where
Woolies X was incorporated into their operations in further development of technology. These
are being properly incorporated into the databases since exploitation could easily happen, where
privacy of data is considered number o1 enabling safer shopping experiences for the customers.
(Woolworths Group Limited,2019)

Human resource management

It is now focusing on provision of betterment end to end process and leveraging certain insights
across the group of supermarket chains to have a better outcome in its functions. According to
the annual report 2020, training members have exceeded 90,000 where certain programming
should be oriented to handle such an employee crowd without errors. This organization has
ongoing training and capacity building in developing heaty relationship of co employees.
(Gurau,Ranchhod and Hackney,2003) This resulted in adding value to customers as well. This is
not rare for competitors to achieve it. There should be such implementation of strategic plans
oriented to uplift human resources.

Marketing and sales

This supermarket chain is one of the trusted brands identified continent wise. Up to now it has
possessed over 30 million customer bases nationwide. It is therefore its responsibility to deliver
its promise to customers and stakeholders in balancing its reputation. (Davis ,2010). Woolworths
in the year of 2018 had around 34 % shares in 2018 which is comparatively high when compared
to other multinational organizations such as Coles which only had 28% shares. As for 2022
statistics it is almost close to 50 % of shares. This creates somewhat of confidence in
development. This appropriately organizes for them to exploit certain opportunities with better
resources and capabilities.
Customer service
The normal policy would be that more positive enrichment through customer service by the
internal and external stakeholders (except customers) would add up value to the customers of the
organization. Customer service is one of the essential part in any industries which adds up points
especially during post sales in building up customer retention, this similar customer service is not
an easy task to build up because of the fact that training and acknowledging such a mass crowd
of employee is not easy which requires skills and persuasion ability. (Golik Klanac,2012)

Macro environment analysis

Pestle analysis is a formwork which is used to analyze and monitor any environmental factors in
relation to the organizations which create a positive entitlement to the success of the business.
Through analysis certain remedial measures will be allocated to profound the macro
environmental issues or disputes. This method identifies 6 methods to identify any sources of
changes within the organization. Those six changes would be political, economic, social,
technological, environmental, legal criteria.

Political
The government, if intervenes probably creates an effect to the growth of the business should be
considered political. Certain reports such as economic intelligence unit report stated that the
stability in Australia on regards to politics is very high which ultimately creates easiness for a
business having a low level of corruption and comparatively a high support from the state.
Woolsworth has signed up for competition and consumer industry codes (Food and Grocery)
regulation 2015 which enabled to derive a better delivery of trading business relations between
the suppliers and the supermarkets which is a positive motive and aids in standing amongst other
supermarkets. This act created more stabilization and acceptance of the supermarket industry and
ensured the suppliers and the customers tightening with their contractual obligation creates
confidence and trust. (Australian Food and Grocery Council,2019)
Economic
Australian bureau of statistics shows that 0.4 % increment in the first quarter of the mid 2019
accelerated to 0.2 % at the final quarter based on this growth. By 2022 it is shown that there is
thrice of increment when compared to the 2019 statistics which conclude the fact that the
economic stability is on the verge of development. This identifies the fact that employment rate
though is increased their won’t be much of an effect in the economic stigma since the statistics
when visualized objectively is seemed to be in a good rate.

Social
This mostly relates to people’s interests, attitudes, and various opinions.
(Leanmarketing.net,2019). Contrarying opinions in the society will affect the business in
multitude of ways such examples lie organic foods are known to be beneficial to health and
Australia is the only country with certified organic lands where 65 % of households take sue of
these lands. Since most citizens prefer organic cultivated foods, Woolworth is in a good position
in providing organic food to their customers. (Weeeklttimesnow.com.au)

Technological.
Technological advancement is of talk point as earlier explained digitalization of Woolworth is
one of the distinguishing factors which mainly aids in operations of the business. Mainly online
purchasers has made consumers reliant and created efficiency without creating issues.
Unnecessary reliance losses won’t be surpassed by customers in such an extent to reach
supermarkets which ultimately creates increase of customers due to efficiency. (B2U-Business-
to-you.com,2019)

Environmental
Under this criterion the topic of food wastage is taken on for discussion. In Australia a great
amount of food is wasted each year which is close to cost of 20 billion. Woolworth has co-
partnered with the CRC bringing down experts to find solutions for the wastage of food. This is
one of the brilliant tactics that Woolworths adopted in adjudicating the food waste issue. Could
be considered as a strategic opening or a motive in finding solutions to certain issues within the
organization. (werethnest.com.au.2019)
Legal
In Australia the Privacy Act 1988 was introduced to elevate the and protect the private
confidentiality of individuals. The legal factor behind this is that there is somewhat if an impact
to the organization’s performance when there is breach of someone’s trust and confidentiality.
Question as to how this would be incorporated into the scenario of Woolworth. Habitually
customers do arrive to the store and certain processes which are done online, save most of the
privacy information within their database which is of the talk point. So, it is to ensure that the
security of the customers should be carried on by Woolworth. This eventually will create safer
grounds and withhold trust with the relevant organization. (OAIC,2019) Because there have been
certain news reports in Australia which breached the confidence of certain customers where
mails were received time to time and reports of them were viral as well. So, this factor in the
microenvironment is important to be considered.
Porter 5 force analysis
This five-force analysis uses five industrial forces to decide the intensity of the competition of
the industry and its profits incurred through business.

Threat of Entry

Extent Rivalry Porters Five

amongst competitors Forces Threat of Substitutes

Bargaining power of Bargaining power of

suppliers buyer

Threat of new entrants

Usually this is low where the company requires capital; latest research has entailed that
Australian grocery market share has been reached to almost to 34 % in the year of 2018 which is
substantially a 1.4% growth year on year with the other substitute stores. (Foodnavigator-
asia.com.au,2019). So, the defending factor here would be new industries entering the market
and should probably have sufficient capital to pursue themselves. The more capital surpluses the
fact that there is more sustainability in its growth in the future. This is more favorable in terms of
Woolworth since there are less competitors in this industry since capital surplus is not available
at every time.
Threat of substitutes
The threat for substitutes is low because mainly daily selling items such as fresh milk, organic
vegetables are already intact with daily selling where there cannot be such substitutes for
consumers to rely where customers need to continue purchasing goods from Woolworth and very
other substitute stores.

Bargaining power of buyers

Due to the wide variety of products existing within the market line of Woolworth creates high
impact in bargaining power to the buyers. Additionally, the wide chain of other supermarkets
within the continent does even create high bargaining powers.

Suppliers bargaining power

This is very common in everyday context where suppliers do tend to bargain with every
supermarket which constituent when sending their products for sale to supermarkets. Certain
supermarkets such as Wesfarmers and ALDI stores created more intermediate options for the
farmers and suppliers to choose from when sending their supplies.

Rivalry amongst competitors

This ideates the fact that that store is strong, competitive, and profitable in an industry. The
survival of fitness within the economy does create some sort of rivalry amongst other businesses.
recent research on grocery markets in Australia proved the fact that Woolworth has received
clear expansion of the market share, whereas Coles which is now of the rivalries of Woolworth
has fallen behind in economic statistics. As for the current context the Woolworth ranges from
medium to high. (foodnavigator -asia.com.2019)

Porters Five Forces Level of Competition

Threat of New Entry Low
Threat of Substitutes Low
Bargaining power of buyers High
Bargaining power of sellers High
Extent of rivalry High
Woolworths Current Strategy
The following strategy will be implemented in accordance with the Porter generic strategic
model. According to Balsam, Fernando and Tripathy (2011), cost leadership is taken into
consideration by corporations who seek competition through lower price targeting through sales.
This means if the products are priced at a comparative lower price placing himself at risk, would
later on generate profits especially through the volume of sales, due to the response of customers
due to better customer satisfaction. Organizations who pursue such a motive have a broad
audience. Subsequently Woolworth approached this as it is, where the four key drivers aided in
delivering cost leadership in a successful manner, which are lower input cost, economics of
scale, experience and product and process design. As for the current context Woolworths is one
of the prima facie examples which holds the largest market coverage and large number of
operating outlets which can produce huge quantities of products comparatively at a lower rate.
As for now Woolworth is at a currently shakeout stage where markets are saturated to a certain
extent and profits are declining even there is development seen objectively which is a stage
where it is eating from the inside but bearing the losses incurring .The growth in terms of
statistics would be 4.5% from 2016-2017,from 2017-2018 it is 0,135% ,from 2018-2019 it is
0.859% .which shows there is a steady increase in terms of revenue for Woolworths, but there is
development which no one can argue in terms of. This is called the shake out stage. So, in order
to strive in such a season of business, they will have to cut prices to increase their demand for
their products, which could be a risk at some point but another way able to thrive, when assessed
objectively. There would be a slow rise in terms of profit, but the roots of the organization will
be strengthened due to a high customer base, which is a point of development. However, the
development would be slower.
Identification of the 3 New strategic Objectives
The analysis constituting the threats, opportunities, weaknesses and strength will be tabulated as
follows.

Strength Weaknesses
Stable and close relationships with the Weak employment training schedule
suppliers
Opportunities Threats
Expanding online market presence Consumers choosing where to purchase their
products due to increase in competition

There are three new objectives which SWOT analysis is incorporated into the area as follows

1.Maintain the position by withholding market share since the competition is increasing (rivalries
such as Coles)

2.Increment in revenue by 5% yearly by bringing in customers who engage in transaction with

other supermarkets

3.Acheiving the 2021 corporate social responsibility Excellence award in withstanding the
reputation and to increase brand awareness

In accordance with Michael Porters’ generic strategies, the relevant organization uses cost effect
leadership as their current strategy. It was able to identify that Woolworth could adopt two new
strategies in the next three years to achieve the above-mentioned objectives. These strategies are
as follows. News products and services from Ansoff Matrix and Differentiation Focus from
Michael Porters Generic Strategy. This strategy of new products and services basically infers the
idea that production of goods and services to the market with a twist basically introducing new
features to the current product. Through this strategy it aids in attracting a certain number of
employees. Differentiation focus is basically used to create differentiation to seek competitive
advantage.
Recommendation
New Products and Services will be the new strategic initiative that will be launched. This
strategy alternative will be a superior option for Woolworths over the next three years in order to
meet the three objectives. We will target time-poor and sluggish clients by offering a new
restaurant concept called Wooleats to them. Customers may construct their own recipes in this
implementation by selecting food components from our Woolworths application. They will have
a large assortment of cuisine to pick from. After picking the necessary items, users may select
their desired cooking technique and cart out of the program. Our extensive food assortment
includes both our organic product range and our house brand, which helps to raise brand
recognition.

Conclusion
Woolworths Supermarkets is in a favorable position because of Australia's political stability.
Because the future is unclear, this state may alter. Woolworths Supermarkets has offered several
work possibilities for individuals in the area. However, to deliver excellent products and
services, personnel training is essential. The advent of technology has improved both the level of
living of Australians and the profitability of Woolworths. Its home delivery service has given
convenience and saved customers time. Woolworths is facing more competition, which may
limit its market share in the future. Threats are constantly there, some of which we cannot
control. Overall, Woolworths must continue to develop their strategy to compete in the market,
transforming risks into opportunities. Threats are constantly there, some of which we cannot
control. Overall, the new strategy will attract new consumers and able to increase revenue over
time and help achieve our three objectives within the next three years. As in case the external
environment remains the same then the three-year plan could be executed without any doubt.
Therefore, the company would have to adapt and respond respectively to avoid strategic drift.
References

1. Balsam, S., Fernando, G.D. and Tripathy, A., 2011. The impact of firm strategy on
performance measures used in executive compensation. Journal of Business Research,
64(2), pp.187-193.
2. Davis, J.A., 2010. Competitive success: How branding adds value. John Wiley & Sons.
3. . Wells, T. (2019). Price Rise Implementation: Coles & Woolies Losing Power over
Suppliers? [online] Pricing recruitment I Pricing jobs I Revenue Management Jobs.
Available at: https://taylorwells.com.au/price-rise-implementation/ [Accessed 29 Dec.
2022].
4. Woolworths (2019). Australia's Fresh Food Farmers. [online] Australia: Australia’s Fresh
Food Farmers. Available at:
https://woolworthsgroup.com.au/content/Document/132337_Australias_Fresh_Food_Far
mers .pdf [Accessed 29 Dec. 2022].
5. Woolworths Group (2019). Five Year Summary. [online] Woolworths Group. Available
at: https://www.woolworthsgroup.com.au/content/Document/Woolworths%20Group
%202019%20Full-Year%20-%20Five%20Year%20Summary%20PDF.pdf [Accessed 29
Dec. 2022].
6. Woolworths.com.au. (2019). Homebrand. [online] Available at:
https://www.woolworths.com.au/Shop/Discover/our-brands/homebrand [Accessed 29
Dec. 2022].
7. Woolworths.com.au. (2019). Product Safety Requirements. [online] Available at:
https://www.woolworths.com.au/shop/discover/about-us/product-safety [Accessed 29
Dec. 2022].
8. Woolworths.com.au. (2019). Woolworths Supermarket Return Policy. [online] Available
at: https://www.woolworths.com.au/shop/discover/about-us/returns-policy [Accessed 29
Dec. 2022].
9. Woolworthsgroup.com.au. (2019). Sustainability - Woolworths Group. [online] Available
at: https://www.woolworthsgroup.com.au/page/community-and-responsibility/
groupresponsibility/ [Accessed 29 Dec. 2022].