Comprehensive Report: Woolworths Company Structure and Operations

This report provides an in-depth analysis of the Woolworths Group, an Australian conglomerate, examining its organizational structure, management practices, and operational strategies. The report details the company's background, financial performance, and product offerings, including food, groceries, and general merchandise. It explores Woolworths' innovative initiatives, such as WooliesX, and its focus on digitalization and research and development. Furthermore, the report outlines the company's operational model, sustainability plans, market presence, risk management strategies, and corporate social responsibility initiatives, including efforts to reduce emissions and support community development. The report concludes with an assessment of future growth assumptions and offers recommendations for enhancing customer engagement and business performance, providing a comprehensive overview of Woolworths' operations and strategic direction.

O R G A N I Z AT I O N A L B A C K G R O U N D
A N D
O R G A N I Z A T I O N A L S T R U C T U R E
WOOLWORTHS

Company background
The Woolworths’ group is an Australian
conglomerate
The organization was established in the year 1924
and holds its headquarters in New South Wales
of Australia
The revenue of the organization as computed by the
end of the fiscal year 2017 was A$55.669 billion
(Woolworthsgroup.com.au 2018)
The net income of the organization seemed to
improve down the years from A$1.593 billion in the
year 2017 to A$1.824 in 2018
(Woolworthsgroup.com.au 2018)

Organization structure
Management and ownership
The management of the organizations is aimed at
maintaining the smooth functioning of the business
processes through increased shareholder value
Brad Banducci, the CEO of the organization, stated
that the enhanced operations of the organization
depends on collaborative functioning of the
management with the employees
Suitable communicational mediums are utilized by
different departments in order to ensure the
integrative operations of the workforce.
Management induce a positive workforce culture,
which has helped in enhancing the smooth
functioning of the workforce

Organization structure
Products
Food and groceries
Home and personal care products
Petrol
Liquor
General merchandise

Organization structure
Innovation
WooliesX, a digital business application, is one of the
major innovations that is undertaken by the
organization
The organization catered to the needs of 6.2 million
orders earning over $1 billion sales through
continuous innovation relating to digitalization and
the like
The organization holds a strong R&D department,
which has helped the same in enhancing the efficacy
of the innovations in the product development
process as per the needs of the customers

Organization structure
Operations
The aim of the organization is to retain the target
customers through maintenance of quality of the
products
The organization holds large retail stores through,
which the customers collect their required commodities
The organization also made use of internet to create
websites for providing the customers with online buying
options (Cuganesan, Dunford and Palmer 2012)
The varied options has helped in enhancing the chances
of maximizing the sales of the organization

Organization structure
Sustainability plan
The sustainability plan of Woolworths is to undertake
diversification of products and the quality of the same in
order to retain the loyalty of the customers
The long term objective of the organization is related to
the value of the shareholders which will be helping the
business to maximize the investments for the smooth
functioning of the processes (Yorio, Willmer and Moore
2015)
The organization formulated different policies as per the
human rights for strengthening relations with the
stakeholders in order to enhance the operations. It has
contributed to the sustainable functioning of the business
in the international markets

Organization structure
The market of the organization
The concerned organization holds around 1000 stores
in Australia and approximately 950 supermarkets and
other convenience stores around the nation
The concerned organization considered steps to
develop strategies in order to make a wider market
penetration in the different economies
The organization undertakes retail chains, which are
located in Mexico, Austria, Germany and UK. It has
helped the enterprise in undertaking a deeper market
penetration and expansion in the global competitive
scenarios (Kasemsap 2014).

Organization structure
Strengths
 Market leadership
 Market Segment penetration
 Employee policies
 Good Customer relation
 Huge customer base
 Enhanced quality of products
 Coordination among the stakeholders and the management
Weaknesses
 Similar or slightly higher prices in the market
 Partial position of the organizational product offerings
towards the higher income segment
Opportunities
 Undertaking strategic acquisitions and creating franchisees in
different economies will be helping the organization in facilitating
wider expansion of the enterprise
 Brand promotion through dynamic sponsorships and
advertisements
Threats
 Rising cost of raw materials and issues in the supply chain
logistics
 Economic recessions relating to different trade wars across
economies
 New entrants in the market offering substitute products

Organization structure
Risk assessment and control
The risks that might be encountered by Woolworths are
based on the parameters of strategic, operational,
compliance and financial risks, which are associated
with the retail operations
The organization utilize the enterprise risk management
framework in order to enhance the operations through
avoidance of the different risks (Lacerda et al. 2014)
A team of risk management experts is employed in the
concerned organization and is assigned with the task of
identifying all the market risks that might be faced by
the organization

Organization structure
Corporate social responsibility
The organization retains a diversified workforce and
enforces a positive environment in the workplace. It has
helped the organization in boosting the morale of the
employees for the smooth functioning of the workforce.
On the other hand, the positive culture of the workplace
helps in enhancing the working conditions resulting to
sustainable performance.
The organization took steps to reduce the CO2
emissions by the end of ear 2018 and banned the
utilization of plastic for packaging purposes has
contributed significantly to the welfare of the
environment

Organization structure
Corporate social responsibility
The organization undertakes different direct
community investments for developing the
lifestyle of the people and thereby help in the
prosperity of the region
The financial stability is one of the major
supports through which the organization
undertakes the smooth operations of the
processes

Organization structure
Assumptions for future growth
The growth of the retail sector will be helping the
organization in expanding in the international
markets more viably
The growth of the e- commerce industry will be
helping the organization in reaching out to a large
number of customers through minimal expenses
Digitalization of the processes has helped the
organization in undertaking the smooth
functioning of the business operations while
operating in the diverse international markets

Organization structure
Recommendations
The organization might undertake a survey of the
interests of the customers and thereby frame
impartial positioning of the products in order to
attract the attention of the free customers along
with the potential customers
Revising the pricing strategy
Undertaking dynamic promotional campaigns will be
helping the organization in making the people aware
of the product and service offerings of the business
outside the boundaries of Australia and New
Zealand

References
Cuganesan, S., Dunford, R. and Palmer, I., 2012. Strategic management
accounting and strategy practices within a public sector agency. Management
Accounting Research, 23(4), pp.245-260.
Kasemsap, K., 2014. Strategic innovation management: An integrative framework
and causal model of knowledge management, strategic orientation, organizational
innovation, and organizational performance. In Strategic approaches for human
capital management and development in a turbulent economy (pp. 102-116). IGI
Global.
Lacerda, R.T.D.O., Ensslin, L. and Ensslin, S.R., 2014. Research opportunities in
strategic management field: a performance measurement approach. International
Journal of Business Performance Management, 15(2), pp.158-174.
Woolworthsgroup.com.au., 2018. [online] Woolworthsgroup.com.au. Available at:
https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-2018.pdf
[Accessed 7 Nov. 2018].
Yorio, P.L., Willmer, D.R. and Moore, S.M., 2015. Health and safety management
systems through a multilevel and strategic management perspective: Theoretical
and empirical considerations. Safety science, 72, pp.221-228.