Business Process Analysis Report: Woolworth's Operations and Strategy

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This report provides a comprehensive analysis of Woolworth's business processes, encompassing its mission, target market, and strategic approaches. It delves into the concept of business processes, emphasizing the interconnected tasks that drive organizational goals within the retail sector. The report examines Woolworth's value chain, including inbound logistics, procurement, operations, marketing, and supply chain management. Furthermore, it presents two key business processes contributing to Woolworth's operational efficiency: management processes (internal communication, governance, and training) and operational processes (finance and sales). The report includes relationship and cross-functional maps to visualize these processes. Finally, it identifies and analyzes potential problems within the operational processes, such as bottlenecks, duplication of work, and integration issues, offering insights on how to address them using techniques like service blueprints and benchmarking. The report underscores the importance of business process analysis in enhancing efficiency and effectiveness, providing valuable insights into Woolworth's operations and strategies.
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Business Process Analysis
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
1.1 Introduction to organization .................................................................................................3
1.2 Mission , Target market and strategy ...................................................................................3
PART 2............................................................................................................................................1
2.2 Presenting two business process who contributes to the running of and organization.........1
2.3 Developing one relationship map and cross functional map................................................2
2.4 Analysis of one business process..........................................................................................4
PART 3 ...........................................................................................................................................6
3.1 Use of technology ...............................................................................................................6
3.2 Ethics and procedures...........................................................................................................6
3.3 Strategic alignment ..............................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Business process analysis can be defined as a methodology which can be utilised for
analysing business in order to develop understanding about procedures. This type of analysis is
important in order to identify the ways of improving efficiency as well as effectiveness of
business operations. Business process analysis describe the procedure involved, information
exchanged and parties participating etc. it helps management in identifying the problematic
fields which cause delay in products or services. Business process analysis enables management
to develop the understanding about business procedures.
The present report have focus on identifying the business procedure of Woolworth. Study
emphasizes on analysing the strategies adopted by Wool worth. It will concentrate on impact of
technology on business. Assignment will also include Process Mapping and Analysis in order to
address the business procedures which are contributing to operations of an enterprise.
PART 1
1.1 Introduction to organization
Concept related to business procedures
Business process can be defined as the collection of different interlinked tasks which are
performed in order to accomplish desired business goals. It is the procedure which makes up
structure and assist an enterprise in completing the tasks which is required for producing value
for customers.
In context of Woolworth, is Australian supermarket operating business in retail sector.
An organisation has successfully captured eighty percent market in Australia. Business entity
mainly offers grocery items such as Fruits, vegetables, meat etc. In addition to this, Woolworth
also offers various products such as beauty, household, stationery items etc. An enterprise has
more than a thousand stores in Australia which provides firm an ease in distributing goods and
services to customers (Bandara, Abbott and Nagra, 2018.). Woolworth has also marked online
presence which has assisted an enterprise in increasing its customer base. An organisation
consists of 115,000 employees which has supported an organisation in accomplishing desired
business goals and provided firm an ease in expanding business operations.
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1.2 Mission , Target market and strategy
The vision of Woolworth is to achieve leadership position in retail sector. Mission of
Woolworth is to deliver the valuable and quality services to customers. Other mission of an
enterprise is to provide customer with valuable services and convince in buying the products.
Woolworth target people belonging to high level income group. Presently, an
organization is planning to target growing black middle class people. The strategy of Woolworth
emphasizes on delivering future-fit businesses that return to long-term profit growth
Management in Woolworth has developed the reward strategy which has assisted an organization
in gaining the loyalty of customers (Sandoval, Morales and Munoz, 2018). In addition to this,
digital strategy implemented by Woolworth has assisted an organizational in increasing sales and
profitability.
Concept of value
Value is basically an informal term which includes all types of values which determines
the well being of an enterprise in long run. It can also be referred to as total sum of all tangibles
as well as intangible components. In context of Woolworth, an organisation is most valuable
brand in Australia. But during last few years, value of Woolworth trade mark has decline to
fourteen percent. An organisation has lanced the price based marketing campaign and offered all
the products as well as services at low cots in order to provide high value proposition to
customers.
Value chain : It is defined as the business procedure through which an enterprise add value to
products or services. Few common business procedure which are conducted for adding value to
goods or services are production, marketing etc. In context of Woolworth, an organization has
implemented the provision of after sales services.
Value chain analysis of Woolworth
Wool Worth emphasizes on delivering good quality of products at reasonable costs to
customers.
In bound logistics: It includes an organization direct relationship with suppliers. This business
procedure include receiving inputs. But In context of Woolworth, In bound logistics as business
procedure involves distribution of products.
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Procurement and logistics: In relation to Wool worth, an enterprise Trandestone’s Merchandise
Life cycle Management for their procurement activities. IT helps an enterprise in managing
suppliers as well as orders.
Operations : Inventory and Quality management are the two important business procedures
which are executed by Woolworth in order to provide high value and convince to customers.
Manager in Woolworth has set some specific standard for detecting as well as eliminating
defects from the products. This business procedure has helped firm in delivering high level of
satisfaction to their clients.
Marketing and sales: In context of Wool worth, an organization believes in small advertisement.
Organizational dynamism as well as store promotion are the two activities which are conducted
by Woolworth which has assisted an enterprise in increasing sales and profitability. In addition
to this, business entity has adopted the slick marketing strategy for changing the perceptions of
customers about the goods or services offered by company. It is required by Woolworth to make
more investment on promotional activities, a this will assist an enterprise in accomplishing
desired marketing objectives.
Supply chain : In context of Woolworth, an organization is planning to built an automated
distribution center. Business entity is also utilizing Trandestone’s Merchandise Life cycle
Management for managing it's supply chain. In context of Woolworth, supply chain is
responsible for managing logistic operations, import and export of goods on our behalf, our
distribution centers and the transport of goods (Anderson and Bolton, 2018). Trandestone’s
Merchandise Life cycle Management has assisted firm in saving the cost associated with
distribution of goods and services.
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PART 2
2.2 Presenting two business process who contributes to the running of and organization
Woolworths Ltd is one of the largest retail organization in Australia who operates the
best variety of products and services to their customers at reasonable rates. The quoted firm also
commitment to its continuous improvement and growth throughout its divisions. In the same
way, business process management is one of key enablers that helps to achieve the defined goals
of a firm. As the quoted firm also wants to capture all the knowledge related to best process
practice and then share it to all in order to optimise its operations and leverage the economies of
scale (Business process, 2018). Therefore, the business process management is now successfully
implemented into the working area in order to review its processes with the focus of
standardisation, reuse and overall contour with the firm's operational efficiency. The firm also
have two main business process which contributed their part for the operational efficiency such
as:
Management process: These process basically helps to measure and monitor all the
activities which are run in the business system. Basically during this process, HR department of
the firm contributed their best part for the welfare and smooth functioning of the system. This
includes following:
Internal communication: In this, the project design team of Woolworths Ltd, continues
to keep engaging the business to communicate the benefits of a process and through
better communication, the delivered the exact goals to their teams as well.
Governance: The team also develop the approach in order to make sure that the value of
a process work is carried and maintain as a valuable assets for the firm (Aydiner and
et.al., 2019). Moreover, the governance is also defined and established to provide
consistency and accuracy of the process related material.
Internal training: The firm also provide enough training to their staff members so that
the operational efficiency is to be carried out properly and as a result, it improves capture
and reuse of process intellectual property that enable the faster project execution.
Operational process: It is one of the basic and primary process which is deal with the
core business as well as value chain. This process of Woolworths also represent the essential
business activities that attain defined objectives of the firm and also helps to generating some
revenue. At that time, Finance and sales marketing department of the firm helps in order to make
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the business more effective (Milani, 2019). Such that when a product is manufactured and then
sales and marketing department basically support or promote them into the market in order to
generate revenue. In this way, this process also contributed the firm for its smooth functioning.
2.3 Developing one relationship map and cross functional map
Relationship Map: This strategy relationship map helps to describe the relationship
between each functions and as a result, they all helps to meet the objective of the firm. From the
below relationship map, it has been analysed that in Woolwoorths Ltd, the firm is actually wants
to raise its overall profit and by consulting it with their expert and optimising technology, the
firm will easily accomplish the work and generate more revenue (Rosemann and vom Brocke,
2015).
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Financial
Internal
Business
Process
Learning &
Growth
Reduce
cost
Improve
customer
Experie.
Increased
profit
Expertise,
Techolog
y
Improve
internal
Efficienc
y
Raise
Consulting
Knowledge
Improve
Product
offer
Use
Human
capital
Improve
thought
Leadership
Increase
awarenes
s
Raise
revenue
In target
market
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Cross Functional Mapping: It is the map that helps to describe the relationship between
many departments and how they work in order to attain the defined goals of the firm. Further, as
per the given cross functional diagram, it has been realised that when the customers are enter into
the firm, they first place the order and after that the sales department receives their order and
start process towards the production department of Woolworths. After getting the order,
production department start producing the same item in order to satisfy the needs of their
consumer and then the product is purchased by them and the whole department provides best
service. So that it will help to satisfy the needs of their customers and provide them the best
quality of products. The same cycle is repeated so that it will lead to maximize their sales.
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2.4 Analysis of one business process
From the above business process, the operational process is been carried out in which the
firm also faces variety of problems which directly and indirectly affect the business in negative
way. These problems are as follows:
Bottleneck: It is one of the most common problem which Is faced by Woolworths in
which the process is stop at particular stage because of human or machine errors (Chang, 2016).
In this, the company have no option to replace those with new product and it leads to raise the
cost and overall increases the expenses rates as well.
Duplication of a work: This is another common problem in which Woolworths function
areas are repeatedly uses old process which leads to redundancy. As a result, the overall work is
affected. This problem waste time and the goals are not achieved with prescribe time
Integration issues: In this problems, the business process is affected in negative way,
such that process technology does not always integrate well with some existing system and as a
result, it also causes communication gap. Due to this, the employees do not help a system to
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Illustration 1: Cross Functional Map for Woolworths Ltd
(Source: Cross functional map, 2018)
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reach their goals in define time and that is why the firm leads to bear some extra expenses that
affect the financial performance in negative way.
Ways to analysis the problem:
Blueprint: As Woolworths provide the best product and services to their customers and
the service blueprint is one of the most effective technique which is basically used for service
design but this is also helps to diagnose the problems which is associated with operational
efficiency (Zur Muehlen and Shapiro, 2015). The service blueprint is one of the widely used
technique that helps to manage the service operation and service positioning as well. Such that if
the firm is uses this into its working area then it helps to determine or analyse the major problem
which creates hindrance into their success path.
Benchmarking: It is the specific indicator that is used to determine the productivity per
unit and this is consider the best practise which is used by the management as well. The
technique also allows a firm to develop the plan on how to make some improvements and also
adapt some strategy that directly interlinked with an aim of increasing the performance level of
the firm. Thus, it is a continuous improvement process which is used by the quoted firm in order
to improve the performance level.
Total Quality Management: This is directly deal with quality of the products which are
offered by the firm to their customers. This technique also helpful to employees so that they will
continuously improve the ability in order to provide on demand products and services to their
customers. If HR of Woolworths will analyse that the products are not up to the mark then thy
use this technique to raise the operational efficiency of the firm (Laguna and Marklund, 2018).
Business process re- engineering: It is a management tool that helps to construct new
methods which focuses on the analysis and designing of the workflow during business process.
This is basically focus on the business objectives and how the process is related to them. As
through this process, a new value system that is also placed that helps to emphasis on the
customer needs. The firm also reduces the organizational layers and eliminate some
unproductive activities such that uses technology to improve the data and decision making and
then redesign functional organization into cross-functional teams (Richards and et.al., 2019).
In this way, the quoted firm will easily analyses the quality of services which are offered
to their customers and they further determine the using some technique Woolworths will easily
minimize the errors which affect the business process. On the other side, by using cross
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functional map and relationship map, all department of Woolworths are interlinked with each
other, so that they will easily manage the work and can attain the defined goals in well manner.
PART 3
3.1 Use of technology
The advancement in technology has completely transformed the way different business
procedure are being executed in an enterprise. Technology has significant impact on various
aspect of business procedure that is from sales to customer support.
In context of Woolworth, technology has supported an organization in bringing positive
improvement in quality of products and services. It has aid business entity in minimizing the cots
of production. Technology such as enterprise resource planning has helped an enterprise in
managing the resources during the time of different business procedures. It has assisted
Woolworth in increasing working efficiency as well as productivity (Santoro, Fiano and Ciampi,
2018.).
Technology can be utilized for various performing various business procedures in an
organization. In context of Woolworth, business entity is utilizing the technology for marketing,
financial management, HRM procedure etc.
Business Process automation : This technology is implemented by Woolworth which as helped
an enterprise in automating its different business procedure. It has helped an organization in
providing additional services as well as facilities to clients. Use of Business Process automation
has enabled firm to deliver memorable experience to client. It has helped an enterprise in gaining
competitive advantage (Cao, Navare and Jin, 2018.). Business Process automation has assisted
an enterprise in improving service quality and delivery. This technology has aid Woolworth in
reducing costs and increasing productivity.
Enterprise resource planning : It is basically a computer software which is utilized by
Woolworth for managing business procedures. This software enables management in firm to use
system of integrated application for managing business. Enterprise resource planning is mainly
used for development of long term operational or business plan. It is also used for managing
information within an enterprise which is very much essential in order to ensure an effective as
well as efficient utilization of resources.
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3.2 Ethics and procedures
Ethics in context of business can be considered to be as morale principles which guides
the way an organization behave. Aim of Woolworth is to provide high value for money as well
as intends to deliver quality products to customers. Business entity in order to deal with various
business issues such as poor working conditions and environmental issues, an organization has
implemented Ethical sourcing policy for ensuring that firm is sourcing their goods in responsible
manner (Sandoval, Morales and Munoz, 2018.). In addition to this, business entity is working
with its suppliers for improving social as well as environmental practices.
3.3 Strategic alignment
Strategic alignment can be defined as the procedure of linking an organisational structure
as well as business resources with strategy as well as environment in order to achieve desired
objectives. It is very important to align business strategies as it helps in improving business
performance by optimizing the contributions of people, processes, and inputs to the realization of
measurable objectives. In context of Woolworth strategic alignment is also essential in order to
prevent the wastage of resources and also to eliminate misdirection of effort.
Strategy map is basically a diagram which shows all the business strategy on single page.
It utilised by management in Woolworth for documenting strategic objectives or goals which si
pursued by an enterprise or management.
In context of Wool Worth, firm need to concentrate on procedures has grown, so has the
level of integration of process with the planning side of an enterprise. The manner in which a
company has improved the performance and procedure has evolved through mainly four phases
these are Total quality management, business procedure engineering, process oriented
organisational design and process based competition (Van Looy and Van den Bergh, 2018).
Total quality management is activity which is executed by Wool worth which has assisted an
enterprise in efficiently as well as effectively achieving business goals.
CONCLUSION
By summing up above report it has been concluded that business process is one of most
effective process that helps Woolworths to accomplish their goals in defined time. As report
concluded that Woolworths is one of the top and leading company in Australia and its vision is
to achieve leadership position in retail sector and mission is to deliver the valuable and quality
services to customers. Further the report also concluded that the firm also implement digital
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