Memorandum: The Issues Faced by the Woolworths Group

Running Head: MEMORANDUM
MEMORANDUM
Name of the student
Name of the University
Author’s Note

MEMORANDUM1
TO: The Board of Directors
FROM: The Consultant
DATE: 14th January 2020
SUBJECT: Management accounting issues faced by the group
This memorandum portrays the issues faced by the Woolworths Group, an Australian
chain of supermarkets, regarding the management accounting issues faced by the company.
Management accounting is a significant tool that helps in tracking all kinds of internal costs
for making effective decisions for the company. Usually, manufacturing and wholesale
companies use management accounting tools to ensure effective operation and smooth
working of the company. It mainly concerns with the allocation of production costs to the
goods produced and services provided by the company.
Woolworths is one of the largest group in Australia specifies in grocery products,
stationaries, DVDs, health products and many more. Woolworths supermarket also known as
Woolies owned by the Woolworths group is a large-scale supply chain industry that serves a
substantial number of Australian supermarkets. In a recent report, it was stated that “the
organization operates across 1024 stores in Australia and relies on more than 115,000 team
members who support different business operations in distribution centres, support offices,
and stores. In 2019, the organization had 43 metro convince stores and 981 supermarkets in
different Australia regions.” The organisation has gain a large fraction of the market space
over the years that adheres to all necessary policies by the directors and ensures effective
management.
Recently in a well-recognised article, an issue regarding the employee’s satisfaction
was published. It stated that thousands of employees working in the Woolworths Group,
specifically the Woolworths supermarket were underpaid by an amount up to $300 million.
The Fair Work Ombudsman is entrusted to investigate a $300 million wage underpayment
issue faced by the employees of Woolworths. Woolworths announced as of October that it
had identified as many as 5700 employees who have been underpaid. However, this number
went on increasing day by day due to the presence of short-changed former employees
identified through survey of payment records. Sandra Parker, The Fair Work Ombudsman,
shared her concern on finding Woolworths joining the list of companies guilty of
underpayment. The list already included number of large companies, namely,