Strategic Management Assignment 2022

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author note:

2
Strategic Management
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of the Company...........................................................................................................3
Macro-Environment Analysis......................................................................................................4
Porter’s Five Force Model...........................................................................................................8
Internal Analysis of Woolworths...............................................................................................10
Business Level Strategy.............................................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

3
Strategic Management
Introduction
Overview of the Company
Woolworths is a well-known retailing industry in Australia and New Zealand. It is
marked as the second largest company in Australia which is headquartered in South Wales, Bella
Vista Australia. At first the company was owned by Lion Nathan in 1979, later was sold to Dairy
Farm International in 1990 and now at present the company is owned by Progressive Enterprises,
a subsidiary of Foodland Associated Limited in Australia. The company was established in the
year 1924 and also possesses a significant market share of 40% in Australia. The company aims
at providing convenient service to their customers. In order to achieve the company goals and
objectives and mission they focus on prioritizing six factors:
The major product and services of the company is to provide fresh grocery which
includes fruits, vegetables and fresh meat.
Macro-Environment Analysis
The macro-environment analysis of the company involves PESTLE, analysis this
strategic tool helps the industries to understand the external factors which can affect the
company.
Political Factors
The political environment has a great impact on the overall performance of the
organization (Desai, 2019). There are some political disturbances that discourage the investors
and the business from entering in the market. Since the Woolworths is already and established
and stable business in the market the risk is less significant.
Economic factor
The economic factors such as inflation, unemployment, recession, economic slowdown
can affect the financial position of the business. The financial performance is highly motivated
and leveraged by the economic factors. The lackluster consumers spending in Australia doe

4
Strategic Management
impact the retail stores (Indris & Primiana 2015). The ease in economic regulation in the retail
has opened new doors for the new entrants.
Social Factor
The social factors mainly involves the customers, thus identifying the need of the
customers is the most important part of any business. As evidence, the Woolworths is facing
poor relationship with suppliers’ and thus this is leading to drastic changes in the business
culture as well.
Technological Factor
The technological advances have enhanced the way of shopping for the customer and the
business as well. The effective utilization of RFID, is a part of retail business as it helps in
efficient management of the business. The technological advances provoke innovations and
Woolworths makes the best use of these advances however, implementation of SAP-based
merchandising system would improve efficiency in the business of Woolworths Company.
Legal Factor
The legal factor involves the taxation policies and employee management regulations are
the set of basic legal framework for the retail industry. The food licensing regulations are
important for the business, as Woolworths in an old and very established company the company
si concerned with all types of regulatory laws however; further recommendation is provided for
implementation of strict codes by NFF.
Environmental Factor
The use of environment friendly practices in business reflects these factors. Woolworths
has been investing its business and resources in minimizing the use of carbon footprint in the
business, as well focuses on minimizing the wastage of water.