Implication of Change Management in Woolworths Group

This report analyzes the implication of change management in the business environment of Woolworths Group. It discusses the loss of customers, situational analysis, impact of relevant trends, vision change, interventions for achieving goals, and justification.

Consulting and Change Management
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Table of Contents
Introduction......................................................................................................................................2
Analysis of implication1: Loss of customers...................................................................................3
Situational analysis..........................................................................................................................5
Impact of relevant trends over Woolworths Group.....................................................................6
Vision change..................................................................................................................................8
Interventions for achieving goals...................................................................................................10
Justification....................................................................................................................................13
Demonstration of intervention.......................................................................................................15
The implication of ethical interventions........................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Introduction
Scenario changing has always been an issue in the case of a modern business environment. In
assignment 1, the implication of scenario planning and modifications in the business
environment of Woolworths supermarket has been critically demonstrated with relevant
information. To survive in the turbulent market scenario, businesses have implicated change
management in the strategic framework of business operations. In the previous assignment, three
different scenarios are mentioned that have severely influenced the business environment of the
Woolworths group. On the basis of the discipline knowledge, among the various implications
that have been discussed, retention of existing customer base and expansion of the market in the
global market is considered as the most critical issue. Woolworths group is focused to expand in
the global platform, develop new products and gain foreign investment in 20 to 30 years’ time
period.
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Analysis of implication1: Loss of customers
In assignment 1, various trends have been mentioned on the basis of demographics, political,
technological, economic, socio-cultural, environmental, legal and agricultural aspects.
Woolworths group CEO, Bradford Banducci has mentioned that this organization aims for
maintaining the quality standard of its services and products while thriving for long-term
sustainable growth (Woolworths group. com.au, 2019). The organization has been holding its
legacy of over 100 years in the Australian retail industry and has become one of the most trusted
and customer-centric brands (Frankland et al.2013). Being a large public organization,
Woolworths Group has to maintain a strong relationship with all its major stakeholders like
manufacturers, farmers, suppliers, producers and more importantly, consumers (Jones et al.
2019). The organization has provided support to the farmers in term of providing monetary
assistance, employment and community services (Woolworths group. com.au, 2019). To
implicate the best strategic changes in the business environment of Woolworths Group, the
organization need to first identify the key elements behind the change management. Woolworths
supermarkets have covered more than 37% market in the retail sector, but through an overall
situational analysis, it can be perceived that inflation, population growth, falling market price,
unstable economic growth, poor trade relations with neighboring nations and elevated crop
harvesting prices have lowered the growth of the Australian-retail market in domestic as well as
international market (Hayes, 2018).
Amidst such inconsistent market scenario, Coles Supermarkets Australia Pty Ltd., the biggest
competitive force against Woolworths Group has already taken low pricing strategy to deliver
equivalent products and services. This strategy has been extremely effective to uphold the market
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of retail services and the acceptability rate of the products to existing as well as new customers
has increased (Cummings, Bridgman and Brown, 2016). Moreover, another supermarket chain,
Aldi has implemented strategic sales and marketing strategies to promote their brand image to
more number of customers and lowered the market competition (Wentworth, Behson and Kelley,
2018). Woolworths supermarkets chain, have to revolutionize their marketing strategies by
addressing low buy-ability to reach lower income group customer base.
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Situational analysis
To understand the business opportunities in the present Australian-retail sector, several key
elements are needed to be evaluated. Presently huge competition the domestic and global market,
have severely impacted the Australian market environment (Hossan, 2015). With the era of
digitalization and technological advancement, global trend, customer preferences and lifestyle
have seen major changes. Hornstein, (2015) has mentioned that predictive scenario analysis is
important to identify and implement alternative future possibilities. Scenario planning for the
next 20 to 30 years is definitely important for Woolworths Group to arrange systematic
alternatives to achieve future objectives (Pugh, 2016). To pursue the assessment on change
management major factors are stated below:
(1) Domestic and international consumers
(2) Interpretation of current market scenario
(3) Inculcation of future objectives in the organizational framework
(4) Progressive vision by the leaders
(5) Representation of an implementation plan
In such a turbulent market scenario understanding of change, management theory is of profound
interest serve the major purposes of an organization.
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Impact of relevant trends over Woolworths Group
Demographic factors
After analyzing the scenario planning of Woolworths Group, it can understand that the
population boom would definitely elevate the demand for retail services as well as the products.
If by 2039 the population of Australia would grow into 35 million, the supply-demand chain
needs to elevate its production rate to meet the market demand. Woolworths Group needs to
increase its number of logistics hubs across New Zealand and Australia. A number of centralized
hubs would also be beneficiary to suffice the demand.
Economic factors
By 2050 economic growth by 2.5% rate would surely impact the GDP rate of Australia.
Woolworths Group would also get influenced by overall GDP growth. A number of average
customers would get influenced by the affordable products that are offered by other companies
(Kuipers et al. 2014).
Political factors
Stricter political laws, environmental policy and regulation would definitely lower the average
output of agricultural-based trade. Woolworths Group would see lower marginal growth in case
of agriculture based goods.
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Technological factors
Advanced technological tool- SMART CART would have a positive impact over New Zealand
based foodstuffs that are available in the supermarket. By 2050 other revolutionary technological
gadgets and strategies would impact the online retail service industries (Goetsch and Davis,
2014). Woolworths Group needs to implicate such technological changes to survive and sustain
on the retail business.
Socio-cultural factors
Cultural diversity has been an important point in terms of market expansion. By 2050, retail
businesses would get revolutionized with online sales-marketing, shopping and customer service
initiatives. Moreover, to increase affinity for organic and chemical free, healthy food,
Woolworths Group can take help from online platforms.
Agricultural factors
Woolworths Group as of till date delivers organic chemical-free food to their customers and still
promised to deliver toxic chemical free natural as well as processed food items to its customers.
By 2050 the demand for food items would get increased. But as per the scenario analysis,
agricultural trade would be hampered with the implementation of satellite and aerial coverage
over the harvest grounds. Retail organizations must implicate natural fertilizers to sustain the pH
level and water retention capability of the soil (Kuipers et al. 2014).
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Vision change
Chief Executive Officer of the Woolworths group, Brad Banducci mentioned that the
organization serve group purpose by implicating core values and strategic changes in the
workplace environment. The organization is aimed to generate better customer service
experiences to enlighten their lives. The Chairman of Woolworths Group, Gordon Cairns has
focused over the implication of innovative ideas, community services and shareholder's value
proposition in FY 2019-20. In the annual report of 2019-20, the organization has mentioned that
with the help of digitalization, online sales-marketing has elevated the service quality in terms of
fast delivery, efficient logistics, product tracking etc.
Figure: BIG five priorities toward customer satisfaction (Woolworths Group, 2019)
The organization has integrated sustainability in its strategic business environment in terms of
product safety, product affordability, personalized services, convenient experiences and end-to-
end processes. The retail company has ventured into several other industries like raw and
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Product availability
Loss of stocks
Customer feedbacks
Effective reverse logisticsEffective time management at Woolworths
Supermarkets

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processed food sector, liquor and drinks business, hospitality services, logistics etc. (Bridgman,
2016).
The organization has to refurbish its basic framework of the business environment. Being a
customer-centric organization, the company has referred that implication of freedom in the
organization framework; simplicity; consistent improvisation and innovation are their core
values (Bakari, Hunjra and Niazi, 2017). CEO of Woolworths Group has mentioned that in FY19
their main focus would be to become a truly purpose led company. If the organization want to
create better buying experiences, the organization need to deliver affordable, quality standard,
convenience and trendy goods and service to fulfil the market demand (Hussain et al. 2018).
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Interventions for achieving goals
Hayes, (2018) mentioned that Kotler’s Change management framework is an effective tool for
identifying the entities that are needed to be rectified.
Figure: Major points of Change management framework
Sl. Factors The implication of change management in Woolworths
Group
1 Create an emergency The organization must do proper market research for the
existing products. While launching new products after
interpreting the target market with segmentation strategies.
2 Powerful collaboration to
guide rest
Leaders must transcend their organizational objectives
among the employees of the supermarkets and motivate
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Customer
satisfaction
Customer
value
Customer
retention
Shareholders'
value
Business
performance

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them to strive toward organizational as well as personal
growth.
3 Reinforcement of strategic
vision and strategies
The organization must implicate a lower pricing strategy
for the existing products and refurbish some of the products
as per the market demand.
4 Transcendence of
visionary changes among
the employees
The top-level management must lead the rest mid-level
manager and employees so that the overall performance
level of the employees could grow.
5 Celebration of short-term
goals
The existing products need to be marketed over the online
as well as an offline platform. Online advertising, order
over the mobile application, social media marketing etc.
would be beneficiary to capture the youth customer base. If
the organization fulfils short-term goals, the organization
must celebrate the efforts of the employees with
promotions, increment etc.
6 Gain unification The organization has a supermarket chain along Australia
and New Zealand that majorly provides retail, financial,
hospitality services.
7 Removal of hindrances There could various factors like political factors, legal
jurisdictions, governmental policy, unstable political
scenario, tariff and taxation policy on foreign products,
currency exchange rate etc. that can generate certain
uncertainties. Moreover, competition among small, medium
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and large enterprises (SMEs) in the domestic and
international market can lead to uncertainties.
8 Broadcast the strategic
changes in the workforce
Understanding and transcending of change in the workplace
environment are important. But more important is the
broadcasting of strategic changes to the major stakeholders
like shareholders, distributors, manufacturers, suppliers and
lastly, the customer. Shareholders are capable of claiming
ownership over some part of the business. Those
stakeholders need to know what changes the organization
has decided to inculcate so that their return amount would
get increased (Doppelt, 2017).
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Justification
Woolworths Group aims to retain its existing customer base while expanding its business across
the overseas customer base. There are various factors that the organization needs to consider like
research and development of new products, sales-marketing, standard quality of products etc.
Additionally, the organization must communicate with the employees regarding goals, objectives
and limitations (Ashkenas, 2013). Such that the employees would feel more connected with the
organization and thrive for attaining the organizational targets.
Through justification, the effectiveness of the suggested techniques can be better validated.
Scenarios Way of
impact
Justified possibilities of upcoming future on the basis of
situational analysis
Scenario 1 Negative Population increase seems to be an issue in the upcoming financial
years. Moreover, the increase in customers from lower and mid-level
economic status would directly influence the sales revenue of the
services and the products. Brexit issue along the British customer
base has influenced the global import and export market of retail
service proving companies. In such a case, the organization can
modify their product line and launch affordable quality products.
Moreover, political unrest can put negative impact so that the
management must be aware of the ongoing changes in the domestic
and international market.
Scenario 2 Positive The population is going to expand at a huge level for the upcoming
years. Such that Woolworths Group would get a larger target market
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to sell its goods-services. Moreover, economic growth by 2.5 % rate
would surely be beneficiary to improve trade relations with other
economies. As mentioned in the previous assignment organic
farming would be another important step towards sustainable
development.
Scenario 3 Evaluate
d
scenario
Economic instability and turbulent political business have always
created complexities in business environments. While the population
size is increasing the economic unrest is at its edge limit. Like other
multi-national retail companies Woolworths Group limited need to
understand the market demand and launch suitable products that can
be bought larger customer base. The economic deficit has lowered
the purchase ability of consumers. In such cases to maintain organic
farming is quite problematic. But the organization is itself capable of
deciding what decisions to take.
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Demonstration of intervention
Figure: Lewin's three-stage approaches to Change management (Endrejat, Baumgarten and
Kauffeld, 2017)
Attribute
s
What can be determined? How to implement inside the
Woolworths Group?
Unfreeze  The basic changes that are
required are identified
 The need for change is generated
 Focused over strong supporting
elements from the administration
(Cameron and Green, 2015)
 Major concerns and doubts are
understood
To interpret and implicate strategic
changes inside Woolworths Group, the
management needs to face major
management and leadership challenges.
While providing equivalent goods-
services, profit-making can seem to be
impossible to the rest of shareholders and
team members. By offering a lower price
than the competitors would enable the
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Unfreeze
Change
Refreeze

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organization to penetrate the customer
base.
Change  Implicate effective
communication in the workplace
environment (Worley and
Mohrman, 2014)
 Employees are motivated to
become part of the strategic
changes
 Rumours are dispelled to elevate
the operational effectiveness of
the organization (Matos Marques
Simoes and Esposito, 2014)
 Inculcation of powerful decisions
in the business environment
Technological advancement would
generate better chances to produce a good
crop. But to attain overseas customers,
Woolworths Group needs to open a
number of supermarket chains.
Additionally, online shopping platform
would help them to export products in
other countries.
Refreeze  Implement major decisions that
are derived after situational
analysis
 Look for ways to sustain the
changes
 Provide technical support in the
workplace
For the upcoming 20 to 30 years stricter
government policies can critically
influence the retail sector. The retail
sector involves several stakeholders like
farmers, suppliers, distributors who are
responsible for the supply-chain
management and logistics part. Tough
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 Arrange for vocational training to
attain low employee turnover
 Motivate the employees with self-
appraisal and success celebration
(Goetsch and Davis, 2014)
legal policies would make Woolworths
Group renew their legal and operational
framework.
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The implication of ethical interventions
The retail-based conglomerate, Woolworths Group needs to implicate positive changes so that
the organization can uphold ethical brand image in the global market. Moreover, the moral
frameworks of retail organizations reflect their bonding with other stakeholders who are equally
responsible for organizational success. The organization offers fresh fruits, vegetables as well as
processed food items to the customers. Woolworths Group can help the farmers with the
hydroponic farming procedure to do farming in a sustainable way. Additionally, satellite
coverage of the crop field is useful to detect the pH level of the field and helps to improve the
quality of harvested crops.
If the organization promotes utilization of artificial pesticides, herbicides, pest killers to save the
plants from the attack of pests, insects the crops as well as crop field would lose its effectiveness.
The retail sectors must promote environment-friendly solutions like stricter environment policy
to eradicate the implication of such harmful substances in the crop field.
Other than stricter environment policy, trade license and legal trade policies need to be
implemented in the business environment of retail sectors to elevate operational effectiveness,
transparency and global market expansion.
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Conclusion
In conclusion, it can be understood that to sustain market capitalization and growth implication
of change management is beneficiary to refurbish the strategic business environment of an
organization. In the case of the Australia-based retail organization, Woolworths Group,
understanding of customer retention strategies in the Australian retail market has been helpful for
identifying the hindrances and developing strategies to achieve the desired future goals.
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References
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