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Leadership and Management

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The study analyses the chosen organization ‘Countdown’ from various aspects of business sustainability. The study finds the organization as following the life-cycle thinking. However, the study also observes that quadruple bottom line approach is still not being followed in Countdown.

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Running head: LEADERSHIP AND MANAGEMENT
Leadership and Management
[Countdown]
Name of the student:
Name of the university:
Author note:

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1LEADERSHIP AND MANAGEMENT
Executive summary
The study analyses the chosen organization ‘Countdown’ from various aspects of business
sustainability. The study finds the organization as following the life-cycle thinking. However, the
study also observes that quadruple bottom line approach is still not being followed in
Countdown. The study identifies a few opportunities for Countdown in forms of using quality
materials and natural resources in the supply chain, and reducing its wastage impact. The study
finds two favorable factors affecting Countdown’s capability as sustainable organization. These
are the growth of affluent migrants and tourists, and trend for lower-prices strategy. Two
unfavorable factors are the increased market competition and open economy. The organization is
being found to have been facing four distinct risks, which can be controlled or minimized by
following the suggested strategy in this report. These four risks are increased preference of
customers for quality, lack of quality staffs and ineffective training programs, decreasing return
on equity and increased preference of customers for quality.
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2LEADERSHIP AND MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Task 1: Life cycle thinking and quadruple bottom line approach...................................................3
1.1 The contribution and importance of life cycle thinking and the quadruple bottom line
approach to business sustainability..............................................................................................3
1.2 Analyzing in context to the chosen business.........................................................................6
Task 2: New ideas and opportunities for innovation and development...........................................7
2.1 Why innovation is important to the selected business in maintaining business sustainability
.....................................................................................................................................................7
2.2 Evaluate two new opportunities and two new ideas that can contribute to the selected
business's sustainability...............................................................................................................8
Task 3: Sustainable business venture opportunity.........................................................................10
3.1 Two favorable factors affecting the selected business to exploit new opportunities..........12
3.2 Two unfavorable factors affecting the selected business to exploit new opportunities......12
Task 4: Risk management analysis................................................................................................13
4.1 Analyse a potential risk associated in financial, customer, internal, and learning and
growth and assessing the risk in terms of their impact on the efficiency and effectiveness of
the selected business operations................................................................................................13
4.2 Analyse a strategy to address and manage the identified potential risks to the feasibility
and sustainability of the future business operation....................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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3LEADERSHIP AND MANAGEMENT
Introduction
Countdown is a subsidiary company of Woolworths NZ. Countdown is the largest
supermarket chain in New Zealand in terms of number of stores. The first countdown store
opened in 1981 (Countdown, 2019). The number of stores is 180 as of 2018 (Countdown, 2019).
Major operations decisions for Countdown are handled at the head office of its parent company
‘Woolworths NZ’. The stores are divided between ten different areas. Each one of the area is
managed by a National Operations Manager. Countdown also offers online grocery services to
the whole New Zealand through its online grocery shop (Countdown, 2019). Countdown
currently is known as “New Generation” Countdowns as the store layouts are different for stores
built and refurbished since mid-2008 (Countdown, 2019). The new generation stores have 30%
of their retail floor space allotted to fresh foods. The heating and refrigeration systems have also
improved. These are more sustainable and energy- efficient than the older Countdown stores. All
general merchandise and grocery items is supplied daily to all Countdown stores through one of
its four distribution centers. Frozen and chilled goods are supplied by third party logistics
operator ‘Versacold’ (Countdown, 2019). The main purpose of this assignment is to analyse
sustainable business practices by Countdown. The purpose is being served in different stages by
applying various business and sustainable strategies.
Task 1: Life cycle thinking and quadruple bottom line approach
1.1 The contribution and importance of life cycle thinking and the quadruple bottom line
approach to business sustainability
Life cycle thinking

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4LEADERSHIP AND MANAGEMENT
Life cycle thinking is a continued process facilitated to conduct a life cycle analysis of a
product or service making. Life cycle thinking is beneficial both to the businesses and
environment (Onat et al., 2017). It lets the businesses know the entire life cycle of a product or
service. This means those who all are involved in a product or service making will be known to
the concerned business. This gives them opportunity to make informed decisions on several
aspects of operations such as monitoring suppliers’ performance. Moreover, the businesses will
be encouraged to select the most sustainable option for any of their business divisions (Onat et
al., 2017). Sustainable options are those that are environment-friendly. This means facilitating
daily-based operations to support environment-friendly operations. Environment-friendly
operations are those that have less or reduced adverse impacts on the environment. This is widely
known that worldwide business have been creating adverse impacts to their respective
environments. They are doing it by being responsible to releasing a number of pollutants,
wastage and water pollution etc. These pollutants are not just impacting the environment but also
the economic losses. Firms nowadays are criticized for their increasingly growing carbon
footprint impact on the respective environment. Identifying and implementing sustainable ways
of doing the business is a worldwide growing trend. Huge investments are now made to align
business divisions with sustainable practices (Li & Found, 2017). This trend is serving two
cause. It is benefitting the worldwide organizations engaged in sustainable practice in terms of
increased reputational and economic benefits. This may also lessen the adverse environmental
impact of the worldwide businesses if essential elements of sustainable practice are kept in right
areas.
Quadruple bottom line approach
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5LEADERSHIP AND MANAGEMENT
The quadruple bottom line approach gives an addition of ‘Purpose’ to the triple bottom
line (TBL) approach. The quadruple bottom line approach brings the attention to purpose
towards customers, employees, suppliers and community (Pizzirani et al., 2018). There are very
few companies that have any direct connection with their customers. They sell through different
sales channels such as dealers, wholesalers and retailers. E-commerce is a step ahead to this
business format as it connects directly to the customers. It also provides an opportunity to its
customers to engage into a business opportunity by selling the used items. However, these
platforms had never been for customers to explore their creativity and make the earnings. The
purpose of the quadruple bottom line encourages the businesses to develop such platforms
(Pizzirani et al., 2018). Similarly, quadruple bottom line approach encourages to create purpose
for the employees. This includes but not limited to recruiting individuals living in poverty and
assessing them based on their performance-related progress. On a similar note, quadruple bottom
line approach signifies the importance to create mutual benefits for both the employers and
suppliers (Pizzirani et al., 2018).
Quadruple bottom line approach can be immensely beneficial to the businesses. This
encourages a customer-centric, employee-centric and suppliers’ centric approach to the
businesses. The quadruple bottom line approach will help the businesses to be closer to their
customers, employees and suppliers. Moreover, this will boost up customer-engagement,
employee-engagement and supplier-engagement with the organizations. An integrated approach
this way will affect the level of quality of operations at the different business divisions. Hence,
there will be improvements across the business divisions in terms of efficiency and effectiveness
of operations. For an example, the supply chain operation will become more robust leading to
reduced delivery time and increased market reputation (Genovese et al., 2017). The level of
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6LEADERSHIP AND MANAGEMENT
customer satisfaction will also improve leading to increased sales and customer loyalty (Hill &
Brierley, 2017). The supplier-management relationship will get better leading to reduced
communication gaps between suppliers and the employers, improved forecasts of the suppliers’
capacity and reduced wastage (Genovese et al., 2017).
1.2 Analyzing in context to the chosen business
Life cycle thinking in context to ‘Countdown’
Countdown is one of very few companies in New Zealand to have taken part in
‘Sustainability Accelerator Program’. With this participation Countdown is intended to conduct
a diagnostic study of entire plastic packaging system in New Zealand. This study will also
investigate key challenges of adopting a circular economic approach to plastics. At present, the
company is focused on removing unnecessary use of plastics and packaging across its business.
The bottom line is to reduce the company’s plastic pollution impact (Inside Retail, 2019). These
activities that are yet to be implemented by Countdown suggest an initiative being adopted to
enhance the company’s focus on life cycle thinking. The company looks confined not just to
implement a solution but also to reach to the trigger point of the problem. By taking part in the
sustainability accelerator program they are trying to reach to its primary producers, and
understand the nature and behavior of plastics. In addition, the company has also announced its
2025 plan to control the plastic pollution. Countdown pledged to attain 100 percent recyclable,
reusable or compostable packaging specifically in its own brands (Inside Retail, 2019).
Quadruple bottom line approach in context to ‘Countdown’

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7LEADERSHIP AND MANAGEMENT
Countdown in its latest Corporate Responsibility Report signaled an ambitious
sustainability focus for 2020. This report has 20 new commitments in regards to sustainable
practices. However, the ambitious plan does not include the ‘Purpose’, which with the triple
bottom line approach makes up the quadruple bottom line approach. The new sustainable plan is
mainly focus on People, Planet and Prosperity (Countdown, 2019). The plan will be align with
the United Nations’ 2015 Sustainable Development Goals. This will make Countdown one of the
very few companies in New Zealand to do so. The vision with sustainable practice is largely
aimed at responding to the global issues in relation to environmental, social and economic issues.
Task 2: New ideas and opportunities for innovation and development
2.1 Why innovation is important to the selected business in maintaining business
sustainability
Innovation is a process of making and bringing a new idea to help a business attain a
continued success. Innovative practices have redefined the market competition. Businesses these
days compete in terms of innovation. Hence, organizations with their better innovation capability
are most certain to gain the competitive advantage.
Innovation is also critical to a sustained success of Countdown in New Zealand. This is
broadly for two reasons. The one is the huge market competition and the other being its impact
on the environment where it operates (Prajogo, 2016). Countdown faces stiff competition from
two subsidiary organizations of co-operative Foodstuffs Limited. The two subsidiary
organizations of co-operative Foodstuffs Limited are New World and PAK’nSAVE. Countdown
has strong competition from New World in terms of full-service supermarket chain and the
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8LEADERSHIP AND MANAGEMENT
number of stores. On the other hand, countdown faces price-based competition from
PAK’nSAVE. PAK’nSAVE is actually more cost-effective than Countdown (Jones & Mowatt,
2016). These facts can trigger threats to Countdown in terms of attaining and retaining a
sustainable business practice. It is important that Countdown applies innovative ideas to each of
its business division to attain business sustainability.
Innovation will essentially assist Countdown in attaining its sustainability goals for 2020.
The sustainable goals as stated earlier in ‘task 1’ of this report does not focus on ‘Purpose’,
which when added to the triple bottom line makes up the quadruple bottom line approach.
Indeed, innovation will help to attain the ‘Purpose’. For an example, Countdown can consider
recruiting the poor and disadvantaged people those who do not have sufficient access to good
jobs. There can be many reasons for this such as the political and legal governance of the country
(Jensen et al., 2016). These people when recruited should be monitored based on their progress
with the jobs. This means examining whether these people are more or less able to take the
advantage of the opportunities. In this way, these people will be given a ‘Purpose’ to live for.
Additionally, Countdown will hold the owner of generating ‘Purpose’ to these people.
If the suggested move can truly benefit the chosen community this will also boost up the
market reputation of Countdown. Moreover, Countdown will be the first organization to
introduce the ‘Purpose’. Hence, the business sustainability approach of the company will be
more effective than its competitors.
2.2 Evaluate two new opportunities and two new ideas that can contribute to the selected
business's sustainability
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9LEADERSHIP AND MANAGEMENT
Considering business sustainability for Countdown following opportunities and ideas can
be suggested to the company:
Opportunities Ideas to Leverage the Opportunities
1. Use of natural resources and quality
materials in the Supply Chain
Increasing the size of floor space to allow
accommodating more fresh foods and
improving supplier-management relationship
2. Waste Bans on non-reusable bags
Table 1: Opportunities and Ideas to contribute to Countdown's business Sustainability Goals
(Source: Dyllick & Muff, 2016)
One of the growing opportunities for Countdown is to accommodate more fresh foods on
its floor space. Currently, 30% of the entire floor space in many of its stores in New Zealand are
dedicated to fresh foods (Jones, G., & Mowatt, 2016). This should further be increased. In
addition, there is a need for a good relationship between Countdown and its suppliers. This will
help Countdown to get quality materials at the most competitive price on a regular basis.
Supplier-relationship can be well managed by applying suitable tools like ‘Enterprise Resource
Planning (ERP)’ (Tarhini et al., 2015). This will help facilitate effective communication and
coordination between Countdown and its suppliers. Hence, both suppliers and Countdown will
be better aware of the market demands and the supply capacity. Hence, Countdown will be able
to keep getting quality materials while also maintaining its cost-advantage over its competitors.
Reducing the waste is another opportunity for Countdown to attain its sustainable goals.
As one of the most popular supermarket brands in New Zealand, Countdown has a responsibility
to take initiatives to cut down on unnecessary plastic waste. This is because it contributes to

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10LEADERSHIP AND MANAGEMENT
litter, in some cases can endanger wildlife and harms the environment (Naidoo & Gasparatos,
2018). This can be done by banning on non-reusable bags. Instead, Countdown will need to
provide or encourage the use of bags that are recyclable (Garcia-Herrero et al., 2017).
Countdown needs to listen to the growing concerns of their customers and the community for
sustainable options of shopping. Countdown first needs to abandon the use of plastic bags from
its entire supply chain network. This will take time but must be implemented to be able to
leverage advantage from sustainable opportunities. Additionally, at the initial stage of removing
the use of plastic bags Countdown can first offer paper bags instead of the plastics. Countdown
can also sell reusable bags for approximately $1 to $3. The rates may vary depending on the
market and customers feedback to payable bags (Xanthos & Walker, 2017).
Task 3: Sustainable business venture opportunity
The one tool that will be used to assess the industry, market and consumer behavior is
‘Porter’s five forces’. Porters’ five forces analysis of supermarket industry in New Zealand is as
follows:
Five Forces Analysis
Bargaining power of suppliers (high) The suppliers have a dominating control over
retailers as there are huge numbers of retailers
existing in the industry. The retail market in
the country is of course is no exception.
Bargaining power of customers (high) The number of independent mom and pop
stores in New Zealand is quite high.
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11LEADERSHIP AND MANAGEMENT
Customers have options in form or retailers
those that offer lower prices.
Industry rivalry (high) Competition among the organized retailers is
low. However, these retailers face tough
competition from independent mom and pop
stores. The company will only scale up as
international retailers are entering the market.
Threat of substitutes (low) E-commerce presence is still very minimal.
There are only two pure online retailers in
form of Amazon and New Zealand based
Trade Me Group. Giant retailers have their
own online sales channels. Brick and mortar
stores have very minimal threats from the rise
of e-commerce as tourists still prefer
shopping from brick and mortar stores.
Threat of new entrants (high) New Zealand is an open economy. The
country has so many international players in
form of Zara, H&M, the David Jones, the
Baby Bunting Group etc. Few of international
chains are even bigger than the biggest local
retailer. New entrants can be a potential threat
to independent retailers and regional retail
chains in New Zealand.
Table 2: Porter's Five Forces of New Zealand Supermarket Industry
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12LEADERSHIP AND MANAGEMENT
(Source: Trienekens et al., 2018)
The above table shows the porter’s five forces analysis of the New Zealand supermarket
industry.
3.1 Two favorable factors affecting the selected business to exploit new opportunities
Two favorable factors are “customers’ inclination towards lower prices” and “growing
number of affluent migrants and tourists”.
Countdown needs to use lower-prices strategy to its advantage. This can be done by
offering fresh foods and quality products at the most competitive price. The new marketing
strategy should have a new branding strategy emphasizing more on fresh foods and lower-prices
strategy. For example, “Avail the unmatched items at an unmatchable price range”.
The growth of affluent migrants and tourists can be a good prospect for the
Countdown’s business sustainability if handled strategically. Countdown is being found in this
report to have concerns for reducing its impact on plastic pollution. Countdown with an approval
from the New Zealand tourism ministry can collaborate with the New Zealand tourism industry
to promote its concerns for business sustainability. The collaboration can be used to advertise
Countdown’s concerns for plastic pollution. Moreover, awareness campaigns can also be
organized to let people know about the harms of using non-reusable plastic bags (Evans et al.,
2017). All these will just popularise the business sustainability concerns of Countdown.
3.2 Two unfavorable factors affecting the selected business to exploit new opportunities

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13LEADERSHIP AND MANAGEMENT
Open economy can create barriers for Countdown to exploit new sustainable
opportunities. It is because the industry competition will grow and so the suppliers’ power to
bargain (Rocheteau, Wright & Xiao, 2018). Hence, Countdown can find it challenging
resourcing quality materials at the most competitive price.
The competition in the New Zealand retail industry is continuously scaling up. On the
other hand, the industry has growing opportunities for new entrants. Such scenario will only
weaken the bargaining power of the retailers (Rocheteau, Wright & Xiao, 2018). Hence,
Countdown will need to find ways to keep getting quality materials while also retaining its cost-
advantage.
Task 4: Risk management analysis
4.1 Analyse a potential risk associated in financial, customer, internal, and learning and
growth and assessing the risk in terms of their impact on the efficiency and effectiveness of
the selected business operations
Table 3: Strategy Map for Countdown
Financial Maximise shareholder value
Customer Enhanced control on consumer behavior
Internal Increased operations efficiency
Learning &
Growth
Recruiting quality staffs and conducting training
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14LEADERSHIP AND MANAGEMENT
(Source: Australian Financial Review, 2019)
Financial risk and its impact on the efficiency and effectiveness of Countdown:
Countdown’s parent company Woolworths is facing a decreasing return on equity. This
may impact Countdown’s effectiveness to repay its shareholders. Moreover, the capability to
attract more new investors will also decrease. Moreover, the efficiency of Countdown to invest
in new sustainable projects will also be affected (Andrews, 2015).
Consumer risk and its impact on the efficiency and effectiveness of Countdown:
Increased preference of customers for quality products is a growing pressure on
Countdown. On the other hand, due to New Zealand being an open market economy and
increased competition in its retail sector, accessing to quality materials at the most competitive
price could be a huge challenge for retailers. In such scenario If Countdown compromise on
products’ quality to remain cost-effective this will affect its efficiency to offer quality products.
Moreover, the effectiveness of its sustainable business operation will also be affected (Ren et al.,
2015).
Internal risk and its impact on the efficiency and effectiveness of Countdown:
Product quality of Countdown has been raised with questions in recent times. It has
affected its operations efficiency. The effectiveness of operations efficiency needs to be
enhanced to be able to deliver quality products at low price (Hitt, Xu & Carnes, 2016).
Learning and Growth risk and its impact on the efficiency and effectiveness of Countdown:
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15LEADERSHIP AND MANAGEMENT
Lack of effective training has affected the efficiency of Countdown’s workforce. The
effectiveness of its workforce in term of innovation and creativity has decreased (Bell et al.,
2017).
4.2 Analyse a strategy to address and manage the identified potential risks to the feasibility
and sustainability of the future business operation
Based on strategy map for Countdown following strategies can be applied to its different
operational divisions to reduce or control the adverse impact of highlighted risks (Ren et al.,
2015):
Strategy to mitigate a decreasing return on equity:
This issue can be treated by maximizing shareholder value. There are many advantages of
shareholders wealth maximization. Firstly, it explicitly considers the time value of wealth.
Secondly, it considers the expected risk factors of the benefits to the owners. It encourages
financial decisions to be taken in such a way that the shareholders receive the highest
combination of increased market price of shares and dividends.
Strategy to mitigate increased preference for quality:
By having an enhanced control on consumer behavior the issue can be effectively
controlled. The level of customer satisfaction can be improved by following the below-
mentioned strategies:
Customer relationship management (CRM) as this will generate large-scale data in real-
time leading to customized production of products and services

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16LEADERSHIP AND MANAGEMENT
An improved supplier-relationship management will improve Countdown’s forecasts
capability and so its ability to reduce the time-span of products reaching to market
Strategy to enhance product quality:
Increased operations efficiency will help control this issue from becoming more severe.
This may require adopting a business model, which provides both cost advantage and high-
quality features to Countdown. Countdown can consider following a business model as followed
by Aldi in Australia. The business model of Aldi in Australia is offering great quality products at
the best price.
Strategy to improve the workforce:
This needs recruiting fresh professionals. In addition, they should also be given effective
training on soft skills that impact the individual’s selling skills. Training on product knowledge
is also essentially required.
Conclusion
To conclude, this can be said that Countdown is applying life cycle thinking by
participating in a nationwide campaign for reducing plastic pollution. Countdown as of now is
not following the quadruple bottom line approach. Countdown has opportunities in forms of
using natural resources and quality materials in the supply chain, and reducing its wastage
impact. Two favorable factors affecting Countdown’s capability to exploit new opportunities are
trend for lower-prices strategy and the growth of affluent migrants and tourists. Two unfavorable
factors are open economy and the increased market competition. Countdown faces four risks
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17LEADERSHIP AND MANAGEMENT
such as decreasing return on equity, increased preference of customers for quality, reduced
product quality of Countdown, and lack of quality staffs and ineffective training programs. These
issues can be controlled or resolved by following the suggested strategies in this report.
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18LEADERSHIP AND MANAGEMENT
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19LEADERSHIP AND MANAGEMENT
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