Organisation Structure And Management

Running head: MANAGEMENT
MANAGEMENT
Name of the Student
Name of the University
Author Note

1MANAGEMENT
Management is related to a set of principles that are applied to an organisation for
planning, staffing, organising, controlling and directing, and using these principles for
harnessing the physical as well as financial resources to effectively and efficiently achieve
organisational goals (Rothaermel 2016). For the essay, the organisation that I have chosen is
Woolworths in Australia. The primary aim of the essay will be to identify two key concepts
of management that are critical to the success of the modern organisation, particularly the
organisation that I have chosen. Furthermore, I will discuss how these concepts will create
value in the organisation.
The two key concepts of management that I have chosen is planning and organising in
Woolworths. Woolworths is the largest supermarket chain in Australia. Is has more than 995
stores with approximately more than one lakh employees, support offices as well as
distribution centres to provide the customers with an efficient customer service experience
(Biddle 2016). The supermarket understands the need of customers as they look for new and
simple ways. They also have an option for online shopping for the convenience of the
customers. Woolworths is an organisation that pays attention to the planning concept of
management where they make decisions according to the information that they have at their
disposal as well as implement new strategies to retain themselves in the competitive market
(Haskins et al 2019). The primary goal of Woolworths is to provide products as well as
services to the customers to satisfy their needs. They plan and analyse the purchasing
behaviour of the customers and divide their supermarket into many segments so that it is
easily accessible to the customers. They also planned to create a brand value for their
customers that influenced them with their effective performance. Brand value is an essential
criterion for the growth of any organisation as well as its survival in the competitive
environment. The organisation had created brand value through customer satisfaction and the
quality of products (Devin and Richards 2018). They also planned to make the products

2MANAGEMENT
available in every part of Australia so that it will be easily accessible to the customers. They
further planned to lower their production cost so that they could sell their products at a
reasonable price that would attract new customers (Bailey 2016). These steps were successful
because Woolworths had applied the strategy of Management-by-objectives strategy where
the managers as well as the employees set goals as well as objectives for every sphere of their
business and then use the purposes to measure the progress as well as the success of their
planning. The MOB can only be successful when it follows the four activities that are setting
goals, developing clear action plans by having clear objectives, reviewing the progress and
lastly appraisal of the entire performance (Humayun 2016).
The strategic planning used by Woolworths follows the strategy that was started by
Hambrick and Fredrickson. The two proposed five elements of strategy such as-arena (place
where business will be active), vehicle (how the company will reach there), differentiators
(how successful will the market be in that particular area), staging (what plans will be
incorporated by the organisation), and lastly economic logic (how much money will the
business make) (Austin, Bentkover and Chait 2016). Woolworths very well planned these
stages before introducing their company in Australia and it proved to be quite successful.
These five elements can be identified by using SWOT analysis methods.One of the strengths
of Woolworths is that it solely governs the Australian Retail market along with Coles. They
have a strong presence in the upscale and lower value segments. They can create a different
in-store experience for the customers (Culley et al 2017).
The company for the success of their organisation closely follow Henry Fayol's
fourteen principles of management. Some of the policies that are supported by Woolworths
for their planning are- discipline, unity, centralisation, equity, order and scalar chain
(Ramakrishna 2019). The fourteen principles guide the managers to plan their organisational
goals. Woolworths further is a recognised brand as it has evolved over the years by changing