Change Management in Woolworths

Running Head: Change Management in Woolworths
Organisational Learning
Report
System04104
6/6/2019

Change Management in Woolworths
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Table of Contents
1. Introduction.........................................................................................................................2
2. Overview of the company...................................................................................................2
3. Areas where company requires change..............................................................................3
3.1 External Factor (Macro) analysis of Woolworths............................................................3
3.2 External (Micro) factors...................................................................................................4
3.3 Internal Factors analysis...................................................................................................4
4. Literature Review...............................................................................................................5
4.1 Rational Approach............................................................................................................6
4.2 Incremental Approach......................................................................................................6
4.3 Emergent Approach..........................................................................................................6
5. Possible Change strategy to improve the situation.............................................................7
6. Recommendation for the most suitable strategies..............................................................7
7. Required resources for implementing the identified suitable strategies.............................8
8. Conclusion..........................................................................................................................9
References................................................................................................................................10

Change Management in Woolworths
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1. Introduction
Change in organisation is necessary for the business sustainability and gaining competitive
advantage over other competitors. Change is the necessity for any business organisation to survive in
the market for the long time and gaining competitive edge over competitors. Change not only helps
the organisation to grow rather it increases the market share and profitability of the organisation.
Change also helps in identifying the future needs and preferences of customers (Knox, 2014). This
report will help to understand the change concept of Woolworths and about the required resources and
strategies to implement the change in the company. The report also helps to understand that what are
the challenges and issues arises when company decides to implement the change in the organisation.
However, Woolworths is one of the leading retail organisations in Australia, which needs change in
the organisation because of increasing competition in the Australian retail sector and changing needs
and preferences of Australian retail customers. The report also helps to understand the role of change
in enhancing the customer experience.
2. Overview of the company
Woolworths is one of the leading retail organisations in Australia, which deals in grocery
products and general household products. Woolworths was founded in 1924. Woolworths is
committed to provide quality products on very low prices to its customers. Woolworths has more than
3000 retail stores and with more than 14000 retail products. The Woolworths is known for its
marketing strategies. However, company is operating its business in Australia, South Africa, etc. It is
the parent company of Countdown, which is one of the reputed retail business organisations in New
Zealand. The revenue of the company in 2018 was AUD 56.726 Billion while more than 115,000
employees are working in the Woolworths stores and in different organisations of Woolworths
(Biddle, 2016). Woolworths is normally providing basic grocery and household products like
vegetables, fruits, package foods, grains, beauty products, electronic gadgets etc. However, the
mission of the company is to provide best quality products on low prices to its customers, which is
based on provide same value for money principle. The company believes that its customers are the
key reason for their existence in the market and their main motive is to server their customers
(Thomsen, 2016).
Woolworths almost formed a duopoly in Australian retail market with Coles. However, the
increasing number of competitors in the Australian retail market forces the companies to change its
strategies and focus on increasing its market share and profit maximisation by enhancing its services
and focusing on technological innovations. There are many other retail players like Aldi, Coles, etc.
are giving strong competition to the company and many companies like Wal-Mart, Big Bazar, etc. are

Change Management in Woolworths
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looking for making entry in the Australian retail market. The increasing competition and large number
of players are forcing Woolworths to bring change in the company and its strategies to face the tough
competition in the Australian retail market (Brook, 2018).
3. Areas where company requires change
It is believed that change is the necessity of any business organisation for the survival and
facing completion in the market. Apart from this, change in management is also crucial for the
organisation as it enables the organisation to implement new strategies and technologies in the
organisation that helps the company to survive in the market and earn maximum profit. The company
needs to change its overall policies regarding its business operation, which is essential for facing the
competition in the organisation. To analyse the areas where company needs to change, it is essential
to analyse various external and internal factors of the organisation that poses threats for the company
(Verma, 2018).
3.1 External Factor (Macro) analysis of Woolworths
There are many external threats for the company among them price war and strong
competition in the retail industries some of the major threats. To analyse the external threat, it is
essential to analyse the company on PESTELE Analysis. Pestle analysis helps to understand various
external factors such as Political, economic, social, technological, environmental, and legal (Arli,
Dylke, Burgess, Campus, & Soldo, 2013).
Political Factors: Woolworths operates its business in many countries, thus instability in the
political scenario always leads to a serious threat for the company. Woolworths operates its business
in more than a dozen countries and it has to face different kind of political environment. Although, in
present times no country will face any political instability where company need to change its policies
because of instability in political environment (Knox, 2014).
Economic Factors: The Australian economy is moving with slow growth rate, while
uncertainty in the economy is also a problem for the Woolworths. The economic growth in Australia
is not stable rather than it is stagnant, which might pose threats for the company. However, the
increasing employment rate, hike in fuel prices, and high wages rates are also some of the crucial
problems for the Woolworths in Australia. However, the disposable income of people in the country is
increasing from last few years, which is favourable for the company (Jie & Gengatharen, 2019).
Social Factors: The life style and cultural trend of the company is modernizing every day in
the country. People spend lots of money on their life style and consumption patters as well. The