Company Report Assessment Analysis

ASSESSMENT 2: COMPANY REPORT
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Executive summary
In this report, a brief analysis of the Australian supermarket industry has been done. Current
and future trends of the industry are identified and explained. Big W is chosen as a company
for fulfilling the criteria of this assignment. Brief details about the company are given in this
report; a couple of good aspects of the company is identified and analyzed properly.
Moreover, a poor aspect is also highlighted and explained by which the company is criticized.
The recommendation is given to the company after analyzing the aspects.
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Table of Contents
1. Introduction: Retail industry..................................................................................................4
2. Big-W.....................................................................................................................................4
2.1 Excellent customer service...............................................................................................4
2.2 Corporate social responsibility (CSR)..............................................................................5
2.3 Poor HR management.......................................................................................................6
3. Conclusion and recommendation...........................................................................................7
Reference list..............................................................................................................................8
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Table of figures
Figure 1: Market share in the supermarket industry, Australia..................................................5
Figure 2: Energy consumption rate of Big W............................................................................7
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1. Introduction: Retail industry
The supermarket industry in Australia is highly competitive in nature. Especially, the growth
of big players like ALDI has increased competition if this industry, since its introduction in
2001. Revenue of this industry has grown by 4.2% in the last five years and reached $108
billion in size. Major players of this industry include Wesfarmers, Woolworths, and ALDI.
Woolworths Group has the highest market share in this industry, followed by Wesfarmers
(Retailworldmagazine.com.au, 2019).
Figure 1: Market share in the supermarket industry, Australia
(Source: Youl, 2018)
The fierce competition has forced the player to reduce their product prices in the last few
years. However, the industry has grown at this time and it is expected that it will remain
stable in the current year. Cool and Woolworths will expand their private label products and
online sales will also grow. Revenue of this industry is expected to grow by 2% over five
years through 2023-24 (Youl, 2018).
2. Big-W
Big W is known as an Australian retail chain, which is serving to customers as per their needs
since 1964. It is a division of the Woolworths group. At present, they have approximately 183
stores and more than 22000 employees are providing their best effort to satisfy the needs of
customers across Asia and Australia (Bigw.com.au, 2020). Their product categories include
fashion clothes for male, female and kids, health and beauty products, party products, home
appliances, books, and many others. They are helping people to shop for products for each of
the family members as per their choice.
2.1 Excellent customer service
Big w is offering a wide range of product lines to satisfy the different needs of customers. As
mentioned by James (2016), understanding the needs of customers is the main key to success.
Big W is easily reachable as they have approximately 183 stores in Australia. Besides,
customers can buy products of their choice from their official website as well. They train
their employees regarding effective ways of customer management. On the other hand, they
are maintaining good business relationships with their suppliers to get raw products at an
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affordable price. This approach of this company is helping them to offer products to its
customers at an affordable price. They hold a conference with more than 450 suppliers in
every six months to make their relationship stronger (Woolworthsgroup.com.au, 2019).
Big W has introduced a survey, called 'the voice of customers' to understand the needs of
customers. Scores of this event indicate the success of this company. For example, they have
scored 78 in New Zealand and 82 in Australia. These scores are indicating the levels of
customer satisfaction by Big W. As mentioned by Bogomolova et al. (2016), time is valuable
and it is important for retailers to value time to satisfy customers. Big W is Offering same-
day home delivery and pick-up facility to its customers. Moreover, they are allowing
customers to return products within 90 days from purchasing in case they change their minds
(Bigw.com.au, 2020). This company is claiming that they are offering products at prices a
family can rely on. Their products ensure value for money and customers can rely on the
quality of the product at the same time.
2.2 Corporate social responsibility (CSR)
The promotion of diversity is one of the main CSR activities that they perform. In Big W,
60% of the positions of the executive committee are having women representatives
(Woolworthsgroup.com.au, 2019). They trace their heritage and in a recent survey, about
63% of their employees declared ethnic heritage. This data has been stored and will be used
to measure whether big W reflects the community that it serves. Apart from this, Big W has
focused to maintain the quality of environment and biodiversity. As said by Grimmer
(2018), it is a basic duty of all profit-making industries to include environmental protection in
their CSR programs. From July 1, 2018, Big W has banned the use of single-use plastic bags.
In spite of providing plastic bags with their products, they are offering reusable bags to the
customers.
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Figure 2: Energy consumption rate of Big W
(Source: Woolworthsgroup.com.au, 2019)
Moreover, Big W has emphasized to save energy by installing Led lights. This organization
has installed LED lighting in its 42 stores and supermarkets from 2017 to 2018
(Woolworthsgroup.com.au, 2019). This has helped the organization to save about 15 to 20%
of energy. Besides, this company has focused on sharing profits with weaker communities
of society. Big W has formed a partnership with good360, an NGO, which connects goods
with charity. Donation of 400000 new unsold goods has been done by this firm that includes
winter clothes and other dresses and food. Different CSR activities have helped Big W to
satisfy the needs of society and other major stakeholders. CSR activities like maintenance of
diversity have helped this firm to provide respect and dignity to their stakeholders like
employees and communities. This can help them to gain a competitive advantage in the
future (Carey, Parker and Scrinis, 2017).
2.3 Poor HR management
Big W is being criticized for its attitude towards employees. According to the Australian
Financial Review, a minimum of 1600 employees of this company are being underpaid. An
average of $2000 is lacking from the wage structure every year in comparison with other
retail companies. The reason behind this situation is the loss of approximately $110 million
(Afr.com, 2018). Due to this reason, employees may leave this company to grab better
opportunities. Competitors may take this opportunity to attract employees of big W towards
their organizations.
On the other hand, this organization has included a clause that has caused controversy. They
have removed the job security of employment provision. According to Grimmer (2018), this
kind of approach makes employees feel that they are not important for the company and they
can lose their jobs at any time. However, the secretary of RAFFWU has mentioned that a no-
redundancy-provision allows an employee to claim a huge amount from the company if they
are making voluntary redundant (Smh.com.au, 2019). This company is running at a loss of
$110 million in 2018 and they need support from the workforce to make a come back. Due to
this reason, this company has promised to provide its best effort to improve their attitude
towards employees.
3. Conclusion and recommendation
From the above discussion about Big W Company, it can be said that it is one of the most
successful brands of the Woolworths group. This company has seen growth along with the
supermarket industry of Australia. They have provided excellent customer service that has
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helped them to provide a good buying experience. Moreover, CSR activities have helped
them to increase the satisfaction rate of major stakeholders. However, the HR management of
this company is under question.
Analyzing the situation, it can be recommended that employees can be given back payment to
mitigate the payment issues. Moreover, the HR policies of this organization need to be
revised and restructured for ensuring the job security of employees. More, stores and
supermarkets are needed to reach out to potential customers and gain competitiveness. In the
future, Big W needs to be given more focus on online marketing and selling. This is a cheap
and innovative process that helps to satisfy the needs of customers properly.
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Reference list
Afr.com. (2018). Big W facing labour cost shock after underpaying penalty rates and
loadings. Available at: <https://www.afr.com/policy/economy/big-w-facing-labour-cost-
shock-after-underpaying-penalty-rates-and-loadings-20180910-h156c5> [Accessed 23rd
January 2020]
Bigw.com.au. (2020). About us. Avaialable at: <https://www.bigw.com.au/about-us>
[Accessed 23rd January 2020]
Bogomolova, S., Vorobyev, K., Page, B. and Bogomolov, T., 2016. Socio-demographic
differences in supermarket shopper efficiency. Australasian Marketing Journal (AMJ), 24(2),
pp.108-115.
Carey, R., Parker, C. and Scrinis, G., 2017. Capturing the meaning of “free range”: The
contest between producers, supermarkets and consumers for the higher welfare egg label in
Australia. Journal of rural studies, 54, pp.266-275.
Grimmer, L., 2018. The diminished stakeholder: Examining the relationship between
suppliers and supermarkets in the Australian grocery industry. Journal of Consumer
Behaviour, 17(1), pp.e13-e20.
James, S.W., 2016. Beyond ‘local’food: how supermarkets and consumer choice affect the
economic viability of small‐scale family farms in S ydney, A ustralia. Area, 48(1), pp.103-
110.
Retailworldmagazine.com.au (2019), ‘Supermarkets and Grocery Stores in Australia’
available at: available at:https://retailworldmagazine.com.au/spotlight-australias-
supermarkets-grocery-industry/ [Accessed on 4 April 2019]
Smh.com.au. (2019). Big W wage deal to face challenge over lost job security clause.
Available at: <https://www.smh.com.au/business/companies/big-w-wage-deal-to-face-
challenge-over-lost-job-security-clause-20190409-p51cc2.html> [Accessed 23rd January
2020]
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Woolworthsgroup.com.au (2019), Sustainability reports, available
at:https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-report.pdf
[Accessed on 4 April 2019]
Youl, T. 2018, ‘Supermarkets and Grocery Stores in Australia’, IBIS World, available
at:http://clients1.ibisworld.com.au/reports/au/industry/default.aspx?entid=1834 [Accessed on
4 April 2019]
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