Analysis of Woolworths Limited

Hi! I am (Insert your name). Today I am going to present before you the analysis of an
Australian organization. The organization that I have chosen for the task is Woolworths limited.
Slide 2
The presentation has been divided over the following sections
Slide 3
As I have said before I am going to conduct an analysis or strategic review of Woolworths
Limited. As part of the analysis I would scan the external and internal environment of the
company. Whereas porter’s 5 forces and PESTEL would be used to analyze the external
environment, SWOT analysis would be used for analyzing the internal environment. As a result
of this analysis we would arrive at the competitive advantages of Woolworths. A diagnosis of the
competitive advantages is performed to understand their strengths and weaknesses and whether
they are sustainable over the longer term.
Slide 4
Founded in the year 1924, Woolworths is one of the largest retailers in Australia. The company
operates 3240 stores in Australia and serves around 29 million customers every week.
Woolworths operates some of the most trusted brands like Big W, BWS, Woolworths, Dan
Murphy’s etc. The company has presence in Australia and New Zealand and partners with
several thousand producers, farmers and manufacturers.
Slide 5
The company has earned revenue of $ 56,726 million in 2018 which has led to an EBIT of
$2,548 million. The EBIT has increased by 9.5% over 2017. The return on capital employed has
also improved by 1.9pts to reach 24.1%. Additionally the company has paid a dividend of 103 ¢
which means an increase of 22.6% over 2017.
Slide 6
Woolworths has a workforce of 201,522 of whom 54% female and 46% male. A significant
portion of the workforce is young and less than 25 years old. In terms of representation at the
senior management level, the women hold 32% of the positions. The company supports diversity
and has 1875 people from refugee and indigenous population.
Slide 7
The first tool that is used to analyze the external environment is PESTEL analysis. PESTEL
analysis of Australia reveals several important insights. Australia is a parliamentary democracy
that works under a constitutional monarchy. Queen Elizabeth 2 of England is the reigning queen
of Australia. The head of government is Prime minister. The country has a safe and stable

political environment. Australia has recently won a sit in the Human rights council of United
Nations. However, the country has been severely criticized by the United Nations for failure in
treating refugees, inadequate protection of indigenous needs and human rights.
The GDP at purchasing power parity in Australia is 1.248 trillion which makes it 19th largest
economy in the world. The country follows a open market economy and has low barriers to
trade. Australia is also an important member of APEC, G20, OPEC and WTO. The country also
has signed free trade agreements with a number of countries including Thailand, Korea, Japan,
US, Malaysia, etc. The country has a low unemployment rate and Australians are generally
affluent.
Slide 8
The total population of Australia is 23,470,145. The population of Australia is aging and median
age of the population is 38.8 years. The population growth rate is 1.01% with birth rate of 12 per
1000. Infant mortality rates are 4.2 per 1000 births. 100% of populations have access to
improved drinking water and sanitation facility. The life expectance is 82.4 years.
Australia is one of the few countries in the world that is technologically very advanced. Over the
years, the country has witnessed tremendous growth in adaptation and development of latest
technology. The companies operating in the country are embracing latest technologies like cloud,
IOT, etc. to usher in a new era.
Slide 9
In terms of area, the country is 6th largest country and smallest continent in the world. There is
huge geographical diversity that exists in the country which makes the country beautiful.
Australia is party to several agreements on climate including Antarctic-Environmental Protocol,
Antarctic Treaty, Climate Change-Kyoto Protocol, etc. However, there are certain environmental
changes that are being faced by the country and these are deforestation, desertification, threat to
the Great Barrier Reef etc.
Each state and territory in Australia have their own supreme court. However, the highest
appellate court in Australia is High Court. The country has well defined consumer, fair trading
and competition laws. The fair work act enacted in 2009 governs employment in the country.
Slide 10
The retail sector generated $571.3 BN and employed 1,942,093 people. It is predicted that
between 2019 and 2024 the sector would grow at a rate of 4.6%. There are major winds of
disruptions that are growing in the sector including the rise of category killers as a nemesis for
discount department store business model. The retail sector is also battling with several
challenges including weak consumer confidence, competition from foreign and online retailers
and fall in the house prices.