Strategic Management Report: Woolworths Supermarkets, Semester 2, 2019

This report provides a strategic analysis of Woolworths Supermarkets, focusing on a proposed strategic initiative centered on the use of technology. The analysis begins with an overview of Woolworths' position as a leading supermarket retailer in Australia, emphasizing the need for innovation in response to changing consumer preferences, aggressive competitors, and emerging technologies. The report evaluates the potential benefits of technology implementation across various aspects of the business, including store operations, supply chain management, and customer experience, with a particular focus on improving convenience, personalization, and transparency. Furthermore, it discusses the importance of leveraging technologies like IoT, AI, and machine learning to optimize supply chains, enhance customer engagement, and drive sales. The report also addresses the need for investments in employee training, data analytics, and digital transformation to maintain a competitive edge. The evaluation section assesses the feasibility and potential impact of the strategic initiative, considering factors like cost reduction, security, and the need for a robust IT infrastructure. The report concludes with a detailed implementation plan, including a balanced scorecard and a strategy map to measure and monitor the success of the initiative.

Running Head: STRATEGIC MANAGEMENT
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WOOLWORTHS SUPERMARKETS
Strategic Capability Analysis, Strategy Formation and Implementation
Strategic Management
Student Name:
Student University:

STRATEGIC MANAGEMENT 1
Contents
Strategic Initiative......................................................................................................................2
Evaluation..................................................................................................................................5
Strategy Implementation Plan....................................................................................................7
Measure......................................................................................................................................9
Balanced Scorecard................................................................................................................9
Strategy Map........................................................................................................................11
References................................................................................................................................12

STRATEGIC MANAGEMENT 2
Strategic Initiative
The new strategic initiative proposed for the Woolworths Supermarkets is the “use of
technology” by implementing the plan for at least for three-year time horizon. In Australia, it
is the number one supermarket retailer from a very long-time conducting business
professionally in all aspects being a retailing supermarket and highly innovative (Pickles,
Barrientos, & Knorringa, 2016). The structural changes are needed significantly in the
supermarket industry driving major innovations helps in changing the competitive positions
of the retailers. Innovation is the key to secure a competitive advantage by implying strategy
shaping the Woolworths Supermarkets playing crucial role in Australian food marketing. It
helps in having control over product, packaging and delivery specifications (Merrilees &
Miller, 2001). The company needed to initiate capitalizing fresh food revolution and rapidly
increased market share at the expense of the small independents (Phillipov, 2016).
Woolworths with Coles and Franklins are the center of focus in Australian retailing relating
to competitive strategy and innovation, and financial press attention. This supermarket is
already developed consisting department stores, shopping mall, and discount department
stores where the pattern need to change with the help of technology innovation.
The innovation took place by creating self-service grocery store and the emergence of
modern retailing with consumers shopping experience. The complex combination of forces
impacted the food retailing transformation from personal service to self-service. In the
revolutionary supermarkets, mass communication introduction through television, explosion
of population, raise in ownership of motor vehicle, women at work and at home changing
role and urbanization increase outcomes inclined shoppers to accept self-service (Pulker,
Trapp, Foulkes-Taylor, Scott, & Pollard, 2018). The model of Franklins’ was used for the
measures related to cost-cutting with the fresh food retailers. It made a cooperative
relationship between Franklins and small independent retailers for the achievement of
economies of scale in that industry with broad network providing convenience to consumers
related to the total grocery shopping experience. Woolworths’ innovation on fresh food
developed a revolution not understood by many retailers and customers which need to be
worked out. The change in the company with the rapidly changing environment needs to get
worked by taking care of changing consumer preferences and habits, the emergence of
ecosystems and aggressive competitors, and new technologies (Mialon, Swinburn, Allender,
& Sacks, 2016). To achieve profitable growth requires value proposition, shaping ecosystem,
value chain working with technology, customer engagement and effectiveness commercially,

STRATEGIC MANAGEMENT 3
and back-office, warehouse and in-store operations, and rapid innovation (Kuijpers,
Simmons, & van Wamelen, 2018).
The major concern is food safety and its growing demand and need from production
to store shelves which can be protected by electronic labels providing customers with a more
accounting completion. It is essential for every company to improve efficiency and reduce
costs to remain competitive on prices involves cost aspects. In modern times, the changing
and evolving consumer behaviour is helpful with a role of technology for attracting
customers and maintaining the state of loyalty. The strategy proposed need to be operated by
working on an approach of keeping friendly with employees, active engagement with existing
customers and providing them satisfactory experiences and attracting more customers
(Brown, Forina, & Sikes, 2011). It is necessary for the companies like Woolworths to make
technology improvement and product innovation. The company wanted to deliver quality
products at the possibility of lowest price. The technology improvement helps in lowering
economic costs, and achieves expansion and profitability. Woolworths need to make
medium-term investments in the technology of its in-store experience by renovating and
modernizing the stores worldwide while new stores leveraging floor-cleaning robots and
shelf-stacking with long-term cost improvement for reinvesting the base of evolving
digitalization with the development of market consumer (Hamilton, Alici, & in het Panhuis,
2018).
In recent times, Woolworths explored various opportunities by transformation
digitally for through-the-chain which competitors like ALDI supermarkets started to
capitalize. The introduction of IoT (Internet of Things) technology for better supply chain in
the operational improvement controls and giving visibility in destination, origin, and location
of all products helps in building the solution of in-house online order-and-deliver for future.
It is crucial for the company to make supply chain closer using innovation by investing in an
internal innovation focused on tech-enables supply chain R&D (Mwai, Ntale, & Ngui, 2018).
Competitive differentiation and market share increment can happen employing variety of
strategic initiatives where one of is the smart use of technologies for improving customer
experience, drive sales and margins increment for making the company successful. It requires
convenience, freshness, personalization and transparency differentiation from competition.
Woolworths’ supermarkets need challenges to utilize technology for making consumer
experience more convenient, enjoyable, personal, and less hazardous and time consuming. It
is worthy to transform the company’s traditional stores with online establishment moving in

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the online digital space of e-commerce presence increasing market share. It helps consumer
the convenience of online shopping and avoid going to the stores (Thornton, Crawford,
Lamb, & Ball, 2017). It consists of computer vision and artificial intelligence for
personalizing and enhancing the experience of the customer and also the broad-spread
adoption of smart labels satisfying their needs for transparency. Woolworths utilizing
machine to learn will optimize the replacement of fresh food and pricing with enhancement
of consumer experience or can say profit margins maximization.
The initiatives will take place strategically when the shopping experience continuous
evolvement of retailers by embracing social media and digital technology connecting with
consumers, sales increment and market share growth. The role of employees will evolve
continuously in the age of automation with new smart technologies and Woolworths should
invest in people analytics for optimization of employees in the company, staffing investments
maximization and turnover reduction, not only in product information but in providing
nutritional advice, purchase recommendations and recipes for the improvement of customer
experience. It will make the company lead with that vision and imagination challenging the
status quo and view technology budget willing to combine for investing instead of expense
(Evins, 2018). The initiative is not as feasible highly in the retail industry but implementing
the transformative smart technologies can be useful enhancing the consumer experience with
an effective solution related to issues of competitive differentiation to move forward.
Implementing the strategic initiative of using technology in the Woolworths supermarkets
will help in store operations, supply chain, merchandising, marketing and back office. The
horizontal growth as a strategy alternative involves expansion in the company’s existing
products into other market segments or range of product or services increment offering to
current markets or else the combination in the value chain of company’s recent engagement
practices having the advantage of choosing fair range of choices continuously (Hossain,
Standing, & Chan, 2017). It helps in modest extensions of existing market in to major
expansions containing consistent amounts of risk and cost. Woolworths already adapted a lot
of digitalization by generating its own application for consumers but needed more
development for which the initiative is taken.
Evaluation
In today’s time, dealing with competition and business it getting hard and companies
are trying to embrace businesses with innovative ways to use technology for the achievement

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of strategy and success (Sztar, 2015). Woolworths keep looking for better productivity,
communication improvisation, profitability increment, collaboration unification, customer
acquisition increment, costs reduction, better customer service and business processes
systematically where technology helps in achieving them as a strategic tool.
 Technology helps in increasing output for better sales resulting in higher results. It
connects employees’ efforts to customer satisfaction, managing services by efficient
working of business owners and employees for better productivity (Sztar, 2015).
 It helps in profitability increment for the company to achieve by working efficiently
connected to the employees. In the company, the top-level plans daily execution
where the poor technology or its services can help it in slowing down (Lederer, Kurz,
& Lazarov, 2017).
 In the company, security is the major concern of top-level in the business for an
owner. Lack of security can impact the strategic initiative adversely where it is
essential to ensure about the business’ systems not just to be optimized but also
secured to focus on the best (Hossain, Standing, & Chan, 2017).
 The collaboration platforms and internet-based communication through technology
helps in teamwork increment preferred by the systems for employees to work together
and make ease of sharing information (Madadipouya, 2015).
 The use of technology in strategy and budgeting services help clients and businesses
for becoming successful after making needed changes to plan. It is important to invest
in reliable IT support services and proper technology investments (Sztar, 2015).
The key objective of strategy management is to make sure the implementation of
strategies in the daily business processes operations of the company (Lederer, Kurz, &
Lazarov, 2017). The strategic technology initiative helps in the management of contributing
to the value of the company assuring the value depending on the cash flow sustainability and
continuous growth (Madadipouya, 2015). Woolworths’ supermarkets effective management
helped firm to sustain and gain competitive advantages by making improvements in product
quality with the use of technology for creating new market opportunities to connect to the
overall business strategy. The use of technology as a strategic initiative helps Woolworths to
face challenges from external environment.
 It helps in bringing new opportunities for the success of the company by retailers
doing business online for avoiding political factors and minimizing unfair competition

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impacting the performance, but Woolworths is strong enough to manage its survival
in the market with its market share stability (Olstad, et al., 2017).
 Technology can help in making recruitment process easier for hiring workforce
without affecting the company’s financial performance for avoiding the impact of
economic forces by maintaining the database of its budget system and improve the
loss declined with better business operations and avoiding the phase of unemployment
for talented employees who deserves it (Hossain, Standing, & Chan, 2017).
 It is easy to know about the target audience by generating data online with the help of
technology and easier to create plan for generating the source of revenue by
identifying the needs of the customers for better experience and sales of its product. It
carries less cost with the planning of anything related to business online through
technology (Cao, Fu, Wang, Zeng, & Song, 2018).
 Woolworths has already advanced its technology but still requires improvement due
to technological forces impacting customers in the retail industry with upgrading
system of stock maintenance and inventory management. It is essential to have a
proper business framework focusing on supporting supply management of products in
the retail stores (Madadipouya, 2015).
 The policies made by the government can also impact the business externally due to
legal forces in the company and employees which can be solved by the use of
technology initiative strategically capable of getting e-commerce sites licenced and
legal permission by the authorities to allow for the same (Sztar, 2015).
 The capability of Woolworths facing external issues where one of them is an
environmental force company is impacted by utilizing practices to minimize the harm
on the environment. The promoting campaigns on social media by the company to
protect environment from the use of product and investing on technology for
minimizing pollution in the retail industry and working on recycling activities for
reducing waste by effective process (Lederer, Kurz, & Lazarov, 2017).
The evaluation of use of technology suitable for Woolworths as a strategic initiative
knowing company’s strategic capabilities and current business strategy can be done by
supporting knowing the market opportunities providing expansion in various markets. It will
help in generating positive image in the eyes of customers with the increase in competition
due to political pressure impacting the financial performance of the company (Olstad, et al.,
2017). The change in working environment of the company with the help of technology also

STRATEGIC MANAGEMENT 7
helps in measuring the preference and demand of the customers for minimizing the threat to
the company. Hence, it is essential to maintain the position of the company knowing buying
preference and trend in the market. Technology helps in easy labelling of its private products
for the customers to maintain their loyalty and providing satisfaction (Cao, Fu, Wang, Zeng,
& Song, 2018).
Strategy Implementation Plan
Implementation turns as a process of plans and strategies in actions for accomplishing
strategic goals and objectives and it is essential to implement the plan more than the strategy.
The implementation of strategic plan involves budgeting and workforce of the company
providing business a framework with the need of pursuing strategic direction and setting
performance goals specifically with delivering customer value and its success (Engert &
Baumgartner, 2016). It provides company to gain competitive advantage if working
effectively and avoiding common mistakes. Implementation process requires the support of
people, resources, structure, systems and culture for successful business (Padmanabhan,
2018). Woolworths is already running with good results and need to take it forward with
further change and improvements for better performance in the future with the use of
technology as a strategic initiative. It is based on the formulation of activities of the company
and its implementation by performing and reinforcing the strategy (Escaron, et al., 2016). The
requirement consists of establishing annual objectives, policies for formulating the strategy
execution, resources allocation, performing actual activities and tasks, and controlling and
leading the activities performed at every level of the company with future planning by
addressing issues and changes needed supported by workforce.
Technology considers all the factors needed for the company to implement planned
strategies. The issues can be easily addressed with the help of numerous employees and
management due to additional manpower in the company based on their knowledge, abilities
and skills for completing tasks. The availability and use of financial and non-financial
resources required for technology up-gradation by investment done by Woolworths to
support the company and covering the expenses and costs incurred while executing. The
structure of the company needs to be direct in case of levels of responsibility and authority to
know its accountability by management for better communication. The tools, capabilities and
systems for progress in the implementation process with the company’s culture and its
working environment considering employees, customers and other key stakeholders (Greer,

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Lusch, & Hitt, 2017). It is important to make them feel respected, motivated and comfortable
ensuring their involvement as per their roles and actions based on performance and
contribution.
Accordingly, Woolworths uses McKinsey’s 7S Model as a tool to ensure success of
the company with effective implementation of strategy providing coordination. The 7 steps
consist of strategy, structure, systems, style, shared values, staff and skills for achieving
sustainable growth and competitive advantage for long-term in future based on use of
technology as a strategic initiative. It is important for the stakeholders to identify and commit
achievement of specific and measurable goals in the planning process related to technology
solutions helping and supporting company’s operation for establishing goals (Awino, Njeru,
& Adwet, 2017). The company needs to set the expectations, provide commitment and
support, report and measure and celebrate the success implementing the use of technology.
The changes required to identify the areas where the supermarkets are situated and can get
affected by the workflow of system implementation needed to minimize risk and staff
acceptance increment for its success. The improvement can be possible with active
management to help every individual to overcome the concerns related to technology and
adopting it successfully. It requires process mapping and workflow for showing quality
efficiencies and safety of computer systems and engagement of users while making changes
(Culley, Graham, Kay, Norberry, & Wilson, 2017). It is essential to find and identify
opportunities for improvement mainly in Australia by implementing appropriate procedures
and policies to fulfil the expectations. The main phase of implementation is to gain
information and communication plan to make the changes or improvement needed for future
development.
The company at the time of implementation should also consider assessing and
identifying potential risks, challenges or issues faced, and making plans and programs to
address the same rapidly for not to impact changes and make accurate decisions to move
forward to reach success. Woolworths need to prepare by building system, provide training to
staff, and to test the system requiring evaluation and monitoring the plan continuation and
completion making sure about the critical success factors achievement, and creating efficient,
safe and effective environment by transferring knowledge, incorporating end users while
providing training and building system, conducting new employees training and creating an
internal user group (Spillan & Ling, 2015). The success factors in positive outcomes explored
are emphasizing, well and clear communicated expectations, support of senior management

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visibility in the company, adapting organizational willingness, investment in technology and
creating learning environment of the company, identifying successes increment, and
relationship of employees and authorities. The implementation of use of technology will
empower employees more for taking community action by helping to encourage staff
members and bring them together for engagement to achieve the mission and move forward,
and incorporating human system influences into IT involvements in the supermarkets, online
and on social media for improvement. It is not important that the implementation of
improvement and change in Woolworths related to use of technology can reach success but
will not bring the negative impact as well (Knox, 2015). The company will keep on growing
and expanding with the market share increment and achieving competitive advantage
especially in Australia. Therefore, steps involved for the successful and effective
implementation in the company of Woolworths supermarkets for the improvement and
change in the use of technology reinforcement as a strategic initiative included evaluation and
communication of the strategic plan, an implementation structure development with policies
and programs supporting implementation, allocation and budgeting of resources and
discharging activities and functions for accomplishing outcomes and better future leading
success in the market.
Measure
In Woolworths’ supermarkets, the strategic initiative proposed focuses on set of key
success measures for the use of technology with the use of balanced scorecard and strategy
map indicating them and their classified relationships (Evins, 2018).
Balanced Scorecard
Key Success
Factors
Measures Targets Initiatives
Financial -Revenue
growth and
productivity
-Investment in
technology online
and in-stores, and
valuing
shareholders
-Improvement in use
of social media
platforms and
providing on-door
delivery services to
customers requiring
costs

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-Implementing
programs and training
facility for investing
in workforce
Customer -Take care of
customers and
providing
customer
satisfaction
-Achievement of
vision and
strategic
initiative
-Better
performance of the
company in the
market
-Respective to the
point-of-view of
customer and other
key stakeholders
-Choice for the
customer to design
the product
-Interaction with
customers doing
promotional and
strategic activities
Process -Fostering
growth through
innovation and
new market
expansion, and
working toward
operational
excellence
-Improving quality
and best customer
experience using
technology
-Efficiency
increment relating
to product or
services in the
process with the
help of technology
infrastructure
-Providing training to
employees to work
effortlessly, keeping
them motivated and
comfortable
-Showing them
importance regarding
their skills and
knowledge for
handling and
managing tasks at the
supermarkets or
stores for better
performance
Organizational
Capacity
-Learning and
growth for
development
using human
capital, culture,
technology,
-Implementing
activities for the
success with
continuous
improvement and
reach the level of
-Optimization in
technology
operations working
with professionals for
having positive
impact internally and

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infrastructure
and others
issuing better
performance
expected
performance for
accomplishment
externally to attain
development and
growth
Strategy Map
The major relationship is between company, its management and the key stakeholders
including employees, customers, investors, shareholders and others for completing the
implementation of use of technology as a strategic initiative.
Financial
to earn shareholder
return
profit margin
revenue growth
Customer
attract potential
customers
provide rational prices
wide product variety
Internal
Business
Process
stock availability
new store openings
online
fast inventory
turnover
Organizational
Capacity
skills development
providing reliable
technology service
strategic alignment