Analyzing Macro Environment of UK for Woolworths Expansion

Running head: INTERNATIONAL BUSINESS
International Business
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1INTERNATIONAL BUSINESS
Executive Summary
This report had analyzed the macro environment of United Kingdom to identify the issues that
Woolworths might face while making an expansion into the UK market. The report had used a
PESTLE analysis as a tool to analyze all the aspects of the macro environment. Woolworths is
the market leader in Australia and is the one of the major Supermarkets. However, the
organization has not been able to expand their business successfully in the United Kingdom
market. United Kingdom is one of the strongest economies in the world where there are presence
of large number of supermarket chains. The analysis of the macro environment had shown that
there are both positives and negatives which could be capitalized by the company especially the
ethical perspective and quality of the products offered are the key factors. However, there are
other factors related to the economy which would act as a barrier for Woolworths.

2INTERNATIONAL BUSINESS
Table of Contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................3
Introduction on United Kingdom.....................................................................................................4
Macro Environment analysis...........................................................................................................5
Political and Legal.......................................................................................................................5
Economic.....................................................................................................................................8
Culture and Ethics........................................................................................................................8
Technological............................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

3INTERNATIONAL BUSINESS
Introduction
This report will analyze the macro environment of United Kingdom to identify the issues
that Woolworths might face while making an expansion into the UK market. The report will use
a PESTLE analysis as a tool to analyze all the aspects of the macro environment. Woolworths is
the market leader in Australia and is the one of the major Supermarkets. However, the
organization has not been able to expand their business successfully in the United Kingdom
market. United Kingdom is one of the strongest economies in the world where there are presence
of large number of supermarket chains. The retail industry in the United Kingdom market has
become highly saturated due to the presence of large number of global companies in the market.
Therefore, in order to make a successful entry into the United Kingdom market it is essential for
Woolworths to analyze the market environment and develop a suitable strategy.
Background of the company
Thee retail industry in Australia is highly competitive due to the presence of large
number of global companies and growth of the retail industry. The largest super market chain in
Australia is Woolworths both in terms of market share and revenue generation streams.
Woolworths has been operating almost 1000 stores in all parts of Australia and consists of
almost 120,000 team members across support offices, distribution centres and stores to provide
customized service to the consumers in the market. The organization aims to work closely with
the farmers and the growers to ensure that best products are made available to the consumers.
Woolworths’ sources 100% fresh meat and 96% fresh vegetables and fruits by being constantly
involved with the growers and farmers in Australia. The organization has been using innovation
to identify the simplest ways for the consumers to shop their products (Woolworths, 2018). The