Strategic Network Performance & Sustainability

This assignment delves into the complexities of strategic management, focusing on two key areas: network performance and corporate sustainability. Students will analyze academic literature and case studies to understand how companies can optimize their networks for efficiency and effectiveness while considering environmental and social impacts. The role of protests and boycotts in shaping brand reputation will also be examined through a case study approach. Frameworks like the Balanced Scorecard and integrated reporting are likely to be relevant in this analysis.

Running head: STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
Strategic Analysis of Woolworths Limited
Name of the University:
Name of the Student:
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1STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
Executive Summary
Woolworths Limited is positioned as an Australian based company that is involved in retail
business operations. The financial situation analysis of the company revealed that Woolworths
Company is under-performing over the past financial year. This might be attributed within the
slide in the first quarter sales all through the business as per the records of Australian stock
exchange.From evaluation of financial and social responsibility strategy it is gathered that
despite of the company’s successful corporate strategy as the basis of its major operations, there
are some major areas where the process is lacking.

2STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED

3STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
1. Introduction
Strategic position can be understood as positioning of a company in future considering
changing environment and systematic positioning realization (Abushova, Burova and Suloeva
2016). The objective of the paper is to conduct strategic position analysis of Woolworth Limited
along with describing the financial conditions and strategic analysis of the company. Moreover,
the report also intends to evaluate the ethics, values and social responsibilities of the company in
order to recognize the issues faced by the company. Based on such issues certain recommended
actions will be provided for improvement of Woolworths Limited’s financial and strategic
position. This will also pose implications and certain suggestions for the future study.
2. Company Background
Woolworths Limited is positioned as an Australian based company that is involved in
retail business operations. Business segments of the company includes Australian petrol and food
segment, Endeavor drinks group, BIGW, New Zealand supermarkets and Hotels(Akbar and
Ahsan 2014). The Australian petrol and food segment is involved in procurement petroleum and
food products for resale to the Australian consumers. The New Zealand supermarket is centered
on acquiring food and liquor products resale to the New Zealand consumers (Van Niekerk 2015).
The hotel segment is involved with provision of a segment of hospitality and leisure services
encompassing alcohol and food, entertainment, accommodation along with gaming within
Australia. The brands of WoolworthsLimited encompass Dan Murphy’s, BWS and Woolworths.
The New Zealand food segment is associated with acquiring along with resale of food and drinks
to all its consumers. The company has its business operations in 84 countdown supermarkets and
it is involved with wholesale operations (Amaldoss, Desai and Shin 2015).

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3. Analyzed Issues
3.1. Financial Conditions of Woolworths
While carrying out quantitative analysis of Woolworth Company’s financial position,
balance sheet along with profit and loss statement of the company facilitated in analyzing
whether the performance has resulted in negative and positive loss/gain for the company
(Balasubramanian, Bhattacharya and Krishnan 2015). The financial situation analysis of the
company revealed that Woolworths Company is under-performing over the past financial year.
This might be attributed within the slide in the first quarter sales all through the business as per
the records of Australian stock exchange. From the financial condition investigation of the
company, it is revealed that there are mixed results over a five-year duration. This might bring in
some poor results in the financial year as losses are associated with Masters joint venture along
with increased competition within the core liquor and food business initiating to take hold
(Barney and Hesterly 2015). Poor financial performance of Woolworths Limited resulted in drop
of share price drastically from $27.87 to $23.60 just after four days. From the profit and loss
statement analysis of the company it is gathered that the operating expenses decreased from 5%
to 3% in the upcoming years. Unfortunately, because of the poor revenue figures in the year
2017, certain increased expenses cost although trending lower led to a soft EBIT figure of
$3,350,000 (Bayne, Schepis and Purchase 2017).
3.2. Values, Ethics and Social Responsibility
Woolworths Limited is dealing with issues associated with its social responsibility
strategies. Taking into account the food waste it is observed that their private standards along
with in-store practices generates considerable food waste in stores (Cheng, Green and Ko 2014).
The managers of the company are struggling to make sure that any surplus vegetables and fruits

5STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
are disposed in the bin and is donated within food rescue companies. The company is also
dealing with the concern of deforestation taking place from the high impact commodities for its
own brand products that includes timber, palm oil, paper, pulp along with packaging. The
company focuses on setting goals for decreasing its carbon emissions by 10% in the upcoming
years (Das Nair and Dube 2017). The ethical audit indicated that the company is involved in
unethical practices, child labor use and ingredients while a staff of the organization was all edged
of taking kickbacks. From this scandal it is observed that WoolworthsLimiteddid not comply
with policies on work conditions, pay and corruption. It is also revealed that some of its suppliers
was involved in the acts of corruption and bribery and was also involved in falsifying all its
records and documents (Feigin 2016).
4. Evaluation of Identified Issues
4.1. Financial Conditions and Analysis
In order to analyse the financial condition of Woolworths, the financial figures of the
previous two years have been taken into consideration. The financial data of the last two years
depict that the firm is improving its performance in terms of profitability, since the profit level of
the organisation has increased from ($1,234.80) in 2016 to $1,533.50 in 2017 (Frederick Rose,
Hawryszkiewycz and Kang 2014). On the other hand, the liquidity position of the business has
not been able to match with the industrial average. This could be better illustrated with the help
of quick ratio, which helps in evaluating the ability of a firm to meet current obligations with
short-term asset base.From the financial condition investigation of the company, it is revealed
that there are mixed results over a five-year duration that might bring in some poor results in the

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financial year as losses associated with Masters joint venture along with increased competition
within the core liquor and food business initiating to take hold (Hubbard, Rice and Galvin 2014).
Particulars Details 2016 2017
Current assets A $7,227 $6,994.20
Inventories B $4,558.50 $4,080.40
Current liabilities C $8,992.70 $8,824.20
Quick ratio (A-B)/C 0.30 0.33
In this case, the ideal industrial standard is considered as 1 and the ratio is quite below the
industrial average, which denotes that Woolworths is suffering from cash flow problems. Such
issue might result in insolvency in future, which might reduce its debt paying capacity (Hubbard,
Rice and Galvin 2014). If the organisation could not pay such debt, it would need to borrow
money that would influence its profitability level. With such lower revenue, it would not be able
to fetch higher returns to its investors due to fall in share price in the market. As a result, the
investors might not be willing to invest in the shares of the organisation. However, it is to be
borne in mind that their numerous revenue streams for Woolworths, which would help in
ensuring consistency in cash flow (Johnston et al.2017).
In addition, Woolworths is involved in operating retail stores, consumer electronics
outlets and departmental stores, which are dependent mainly on cash sales. As a result, the
organisation has a fixed source of cash flow flowing into the organisation. In addition, the
organisation has financial priorities, as it acts on its portfolio for maximising the wealth of the
shareholders. Furthermore, it has formulated a new strategy, in which it has planned to open 39

7STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
new supermarkets, which would raise its income and profit levels. With such higher growth, the
organisation would be able to receive greater amount of dividend to its shareholders (Karmanov
et al. 2016). However, if the stores could not work as per the planning, it might have adverse
impact on the financial performance of the organisation.
4.2. Ethics, Values and Social Responsibility
It is of utmost significance for each organisation to assure ethics and values with its
stakeholders for maintaining effective relationship with them. The values and ethics explain the
primary framework within which all the firms are required to operate (Kilroy and Schneider
2017). Hence, it is significant for Woolworths Limited to assure ethics and values, which implies
that it would follow the primary guidelines and business rules as well as of the society.
Woolworths ensures ethics and values of its suppliers by undertaking efforts in enhancing the
social and environmental practices with them. Due care is exercised in order to assure that it is
involved in working regularly with the suppliers for increasing their satisfaction level. The
intention is to obtain timely delivery of the raw materials.
The firm is involved in providing clear and understandable directions to the purchasing
staffs in order to encourage and motivate them (Morioka, Evans and de Carvalho 2016). In
addition, it needs to maintain its brand level by ensuring that its actions do not influence its
corporate reputation and image of its individual brands. Effective working conditions are
provided to the staffs for safeguarding the basic human rights along with ensuring overall
protection of the surrounding environment. The company is involved in functioning maturely the
primary guidelines of the society. For assuring the continuing success of the business, it is
significant to maintain the ethical and moral standards along with maintaining its reputation.

8STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
Woolworths is involved in assuring labour right regulation where the workers are free to
select the employment of their choice(Parkinson 2016). They are not compelled to work in the
company; instead, they could leave the organisation at the time they wish. A reasonable notice is
to be provided on the part of the staffs before they decide to leave the organisation. Along with
this, the staffs could form trade unions and they could involve in collective bargaining with the
management of the organisation over their problem areas. The employer openly accepts the trade
union activities in the organisation (Thorlakson, Hainmueller and Lambin 2018).
Along with this, the organisation maintains sustainability by maintaining effective ethical
practices. It is a serious challenge for Woolworths to maintain the strong employee base present
in Australia and New Zealand (Sewell, Mason and Venter 2017). In addition, the company is
devoted in meeting the targets along with delivering quality products and services to its
customers. Thus, it could be stated that Woolworths has maintained its social responsibility in an
effective manner.
5. Recommended Solutions
Through observing the issues faced by Woolworths Limited regarding ethics, social
responsibility and maintaining efficient financial position, certain effective recommendationsare
provided to the company. From evaluation of financial and social responsibility strategy it is
gathered that despite of the company’s successful corporate strategy as the basis of its major
operations, there are some major areas where the process is lacking. Certain effective
recommendations are explained below:
 There must be a performance measurement along with control process existing within the
sustainable growth strategy. A suitable performance evaluation at different stages

9STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
alongwith regular feedback on performance might facilitate in decreasing gaps within the
level along with efficient decision for addressing objectives. This must also consider
actual attainment of such objectives.
 For maintaining effective social responsibility, the company is recommended to inform
all its stakeholders regarding the strategy. In its financial planning the management must
be properly communicated. This is for the reason that such information is simply grasped
by the concernedparties and makes it simpler for the employees for contributing towards
attainment of company strategy.
 Woolworths is provided with recommendations regarding increasing online sales
aggressively to more than 20% of overall Australian sales through regular investment
within innovative digital development. This is deemed to offer a highly connected retail
experience to all the consumers. This also involves focusing on personalization and
digital accessibility through improving mobile platform and target communications.
 The company is also recommended to increase its operational efficiencies along with
savings associated with water, energy and waste. This must be made possible with
increased focus on developing green stores along with integrating sustainability within its
new office within Melbourne. Partnering with the suppliers to ensure positive ethical,
social along with environment change beyond compliance.
 Woolworths Limited is recommended to design products with sustainability attributes
and driving responsible sourcing strategies for all the major commodities that includes
cellulose, cotton, leather, timber and wool. The company is also contusing to partner with
major charity companies to make certain difference along with offering opportunities for
the teams to be associated with supporting local communities.

10STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
 Woolworths must focus on implementing a hygiene, disposal along with recycling
program in which they can re-use packaging for various purposes along with
implementing hygiene for enhancing cleanliness within the surrounding. In return it can
also enhance the company’s public image along with generating high exposures due to a
good cause.
6. Future Study
The current paper focused on analyzing the strategic position of Woolworths Company
considering the financial situation analysis along with social responsibility evaluation of the
company. Despite of having certain implications, the report did not cover evaluation of some
factors for strategic position analysis of the company. Considering the same, the future study will
focus on evaluating the industry and competitive evaluation along with analysis of diversities
strategies (Tan and Carrillo 2017). This indicates that evaluation of multi business companies.
The future study will also focus on corporate social responsibility that can describe a situation
where an organization attains sustainable development not just in the economic dimension but
also within environmental and social dimension. The paper will also reveal that the company’s
ethical policies that includes analysis of its commitment towards implementing and sustaining an
efficient program of corporate social responsibility which includes social and environmental
responsibilities. The future study will also recognize that success is not possible to be measured
in consideration to growth and profit along with the ways in which Woolworths Community
Group. This will be considered in the manner through which it is possible to decrease the
environmental impact. It I also believed that associating the company’s financial performance
with non-financial segment that can increase value for the stakeholders and the members.

11STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
7. Conclusion
The objective of the paper is to conduct strategic position analysis of Woolworth Limited
along with describing the financial conditions and analysis of the company. Based on such issues
certain recommended actions will be provided for improvement of Woolworths Limited’s
financial and strategic position. It is gathered from the paper that while carrying out quantitative
analysis of Woolworth Company’s financial position, balance sheet along with profit and loss
statement of the company facilitated in analyzing whether the performance has resulted in
negative and positive loss/gain for the company.For marinating effective social responsibility,
the company is recommended to inform all its stakeholders regarding the strategy.

12STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
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13STRATEGIC ANALYSIS OF WOOLWORTHS LIMITED
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