Impact of Australian Dollar Fluctuations on Retail Industry: A Case Study of Woolworths

Running Head: PROPOSAL
DOLLAR EXCHANGE RATE FLUCTUATIONS

2
PROPOSAL
Table of Contents
Introduction................................................................................................................................4
Research problem.......................................................................................................................4
Background................................................................................................................................4
Ethical Consideration.................................................................................................................6
Literature Review.......................................................................................................................6
Aims/Objectives of the Research...........................................................................................9
Research methodology...............................................................................................................9
Introduction............................................................................................................................9
Research Philosophy..............................................................................................................9
Research Approach...............................................................................................................10
Research Design...................................................................................................................11
Research Strategy.................................................................................................................11
Data Collection Method.......................................................................................................12
Sampling Method.....................................................................................................................13
Data Analysis Method..............................................................................................................13
Conclusion................................................................................................................................14
Research Plan...........................................................................................................................14
Reference..................................................................................................................................16
Appendixes...............................................................................................................................17

3
PROPOSAL
Abstract
The currency fluctuations results from the floating exchange rate of different economies. The
fluctuations in the currency rate impacts the trade and commerce in the country. The present
research tries to explore the social, economic and business impact of the fluctuating dollar on
the retail industry. The retail industry of Australia is quite developed with duopoly market in
the country. There are two major business enterprises in the country operating in the retail
industry, namely, Woolworths and Coles Supermarket. The report will discuss the impact of
the Australian dollar fluctuation on the retail industry of the country.

4
PROPOSAL
Introduction
This paper demonstrates the impact of fluctuation in Australian dollar on the Australian retail
organizations. Every currency periodically experiences fluctuations due to several external
factors. When the currency slides its value, it creates a negative impact on the retail industry.
The retail companies are forced to raise their retail price which results in poor consumer
sentiments (Campbell, 2013). It is observed thatAustralia market is recovered after the 2008
financial crisis. The currency fluctuation rate can be defined as the slight increase or decrease
in currency as compared to the US Dollar. It also discusses the role of the exchange rate and
its direct impact on the nation’s trade level. Furthermore, the exchange rate influence the
ROI. This report will also consider different factors that influence the Australian dollar as
compared to the US dollar.
Research problem
In the current business scenario, it is analyzed that the fluctuation in the Australian dollar
exchange rate has increased the risk on the certain business. The value of Australian dollar
has been increasing and decreasing with the US dollar. Hence, the organization was needed to
manage the exchange rate fluctuation issue due to effectively operating the business and
getting higher profitability (Reboredo, et al., 2014).
Background
In the current business scenario, the Australian retail organizations faced many issues by
fluctuations in the Australian dollar exchange rate. Due to high competition in the Australian
retail industry, organization is unable to influence a large number of consumers and retain
them in long-term. Furthermore, demand and needs of customers have direct impact on the
financial performance and market recognition. Australian organization uses different policy
and procedure as compared to a retail organization of another country because each country
has their different policy (Ferraro, et al., 2015).

5
PROPOSAL
Historical Background

6
PROPOSAL
The above graph shows the average value of Woolworths over the years. Although the value
of the company has declined, it has reduced over the years.
Economic Background