Strategic Dimensions of Woolworths

Running Head: Strategic Management
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Strategic Management
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Project on strategic dimensions of Woolworths
1
Executive Summary
Strategic management play an essential role for every organization in respect of
achieving their goals and increasing productivity and performance of the organization
effectively and efficiently because it is the process of planning, executing,
monitoring, assessing and analysing strategies which are necessary for achieving
the organization goals. There are various dimensions of strategic management as
generic business strategy, organization culture and organization structure. These all
dimensions help the company in managing their organization. Woolworths effectively
use these above dimensions for continuous growing their business and for achieiving
their goals and objectives. They use generic business strategy or competitive
strategy as cost leadership strategy, focus strategy and differentiation strategy to
gain competitive advantage and increase their performance as compare to other
supermarkets. Woolworths’s organization culture mainly based on the principal, it
helps in building strong employee engagement but they also reduce their
performance due to high price than its competitors. They follow divisional structure
within their organization, so it helps in increasing their performance and productivity
but it also has some disadvantages such as increase in cost and conflicts arises
among different divisions. So, Woolworths should develop new strategies which help
them in increasing their performance and achieving their goals.

Project on strategic dimensions of Woolworths
2
Table of Contents
Introduction...................................................................................................................3
Generic business strategy............................................................................................4
Organization Culture.....................................................................................................6
Formal Organization Structure.....................................................................................9
Conclusion..................................................................................................................11
References.................................................................................................................13

Project on strategic dimensions of Woolworths
3
Introduction
Woolworths is an Australian company which is engaged in retailing and the
second largest company in Australia on the basis of revenue and founded in 1924 in
Sydney. Percy Christmas is the first CEO of Woolworths. He stated that “Every man,
woman and child needs a handy place where good things are cheap”. It has many
products such as food, liquor, petrol, general merchandise, home improvement and
hotels. These include Australia food segment and New Zealand food segment. The
Australian food segment deals in procurement and resale of food segment to the
customers in Australia. It operates 1008 supermarkets. The New Zealand food
segment deals in procurement and resale of foods and deals in New Zealand. It
operates 181 supermarkets. Woolworth’s employees are more than 2015000 and
more than 3000 stores in Australia and New Zealand. Its competitors are The Best
Things, Avenue and ASMC Industrial (About US, 2019). Company has achieved
higher level of growth and development and strategy of the company play an
important role in contributing the growth of the organization. They work directly with
the Australian cultivators and the farmers, so that they can supply best products to
their customers (Keith, 2012).
Strategic management is the process of planning, executing, monitoring,
assessing and analysing the strategies which are necessary for achieving the goals
and objectives of the organization. It includes decisions and actions which help the
organization to survive in long run. Strategic management decides the future of the
company through determining the productivity and performance of the company
(Hubbard, Rice, & Galvin, 2014). Company must have a knowledge and analysis of
general and competitive environment of the organization; they should analysis their
performance through SWOT analysis, PESTEL analysis and porter’s five forces
models. So, this analysis helps the organization in taking right decisions, minimising
their weakness and threats, enhancing their productivity and performance and
achieving their goals and objectives. Woolworths sources 97 per cent of their
products as fruits, vegetables and meat from farmers and cultivators in Australia.
They also sell their products through e-commerce websites and through their app
which is known as Woolworth’s supermarket app, so that customers can easily buy
that products and it also helps in saving the time and cost of the customers